Performance Measurement for the Mail Center Derrick Miliner Program Manager, Mail Management Policy US General Services Administration

2 Objectives for this Workshop Help mail center managers develop or refine their performance measurement systems Provide critical strategies for establishing and using performance measures Provide a list of suggested measures

3 Definitions Customers – the people that you deliver your products and services to. They are direct beneficiaries – depending on your business they may be inside or outside your company or agency. Stakeholders – the people who tell you what to do. Generally, stakeholders serve as alter egos of your customers; they fill a stewardship or regulatory role; and they influence budget, funding and resource allocations. Goal – what you intend to accomplish over a long period of time and with sustained effort; usually stated as a verb phrase (for example, Provide excellent customer service). Objective – what you intend to accomplish as a result of a specific, short-term effort; also usually stated as a verb phrase (for example, Sort incoming mail correctly the first time).

4 Definitions - Continued Performance Measure – Something you can count (this is, a number) that will show how well you are doing in achieving an objective. Measures are written statements of what you will track and trend over time. Baseline – the current or standard value for a measure, to which all future measurements will be compared (when we started keeping track, we were sorting 2.5 percent of incoming mail incorrectly). Target - the timeframe and desired level of performance increase or decrease, or the rate of improvement for a measure (for example, in January, we will sort only 2 percent of incoming mail incorrectly). Benchmark – someone else’s a target for a particular performance measure; alternatively, a comparison of your mail operation to a similar one.

5 Please Write Short Answers to these Questions: 1.Who are your customers? 2.What do your customers want you to do? 3.Who are your stakeholders? 4.What do your stakeholders want you to do?

6 Questions, Continued 5.Who else is important to you in your work? 6.What do these other people want you to do? 7.Is anything else important to you in your work? 8.How do you know that you are doing these things well?

7 Measurement Profile Performance Measure: Goal: Objective: Measurement Definition: Frequency: Data Source: Baseline: Target(s): Source For Target(s): Person Responsible for Collecting and Reporting Data: Status Of Data Collection: Next Steps: Assumptions and Notes:

8 Measurement Profile Performance Measure: Goal: Objective: Measurement Definition: Frequency: Data Source: Baseline: Target(s): Source For Targets(s): Person Responsible for Collecting and Reporting Data: Status Of Data Collection: Next Steps: Assumptions and Notes:

9 Example of a Completed Measurement Profile Performance Measure: Cost per piece by class of mail Goal: Optimize/reduce the cost of outgoing mail Objective: Accurately track the cost of outgoing mail. Measurement Definition: Postage expense divided by number of pieces, by class, for metered mail and permit mail Frequency: Weekly reports Data Source(s): Digital postage meter and permit manifests. Baseline: Four weeks, beginning June 12, 2006 Target(s): By September 30, 2006, the costs will be: First class/meter, under one ounce: First class/meter, under two ounces: Flats/meter: First class/permit, under one ounce: Standard mail/permit, under one ounce: Source For Targets(s): Analysis of baseline data. Person Responsible for Collecting and Reporting Data: Joe Status Of Data Collection: Talking with meter supplier about what reports the meter can produce. Examining permit manifests to see what data can be extracted. Next Steps: Talking with printing and programs to make sure that copies of all manifests come to the mail manager. Assumptions and Notes: We assume that we don’t need to track permit mail over one ounce because almost all of it is under one ounce.

10 Critical Success Factors Make sure your measures are easy to understand. Get everyone involved in establishing measures and setting targets. Make sure your targets are attainable – they should push improved performance but not make anyone paranoid. Use results to improve performance, not to evaluate people – don’t use performance measurement results to punish people. Hold teams accountable for managing for results – reward them when they succeed, and analyze why when they fail.

11 Critical Success Factors - Continued Targets need milestone dates. Refine your measures and targets as you work with them, but don’t fall into the trap of changing your targets just because you are not getting there when you expected to. Discuss results with your employees routinely. Post your measures and results in the mail center for employees (and customers?). Communicate results to stakeholders – it’s vital for their continuing support. Integrate measurement into your management processes.

12 Do the RUMBA! Make your performance measures: R easonable U nderstandable M easurable B elievable A chievable

13 Suggested Performance Measures for Mail Centers For Incoming Mail: –Sort rate (pieces per hour) –Pieces of mail handled per Full Time Equivalent (FTE) –Percent of internal mail delivered on time –Percent of incoming USPS mail delivered on time –Percent of accountable mail delivered on time –Percent of internal and USPS mail sorted correctly –Customer satisfaction

14 For Outgoing Mail: –Cost per piece by class –Worksharing savings –Express mail expense divided by total postage –Percent of meter postage and stamps that are spoiled –Percent of outgoing mail that is moved to the USPS on the same day it is received in the mail center –Percent of outgoing mail that is returned as undeliverable as addressed Suggested Measures - Continued

15 Suggested Measures - Continued Management Measures: –Ratio of production staff to administrative and supervisory staff –Results of employee satisfaction surveys –Workplace safety (e.g., work hours lost to accidents) –Annual hours of training per FTE –Frequency of customer complaints –Results of customer satisfaction surveys

16 For Contracts and Service Level Agreements: Equipment: Processing speed Downtime Response time for service calls Outsourcing – use the same measures listed above for incoming and outgoing mail. Suggested Measures - Continued

17 Contact Information Derrick Miliner