Vision 2013 Linda A. Kingsley SVP Strategy and Transition MTAC Meeting November 19, 2008 Five-Year Strategic Plan and Universal Service and Monopoly Report

Vision 2013 Five-Year Strategic Plan 1

Purpose and Focus  Message to stakeholders  Strategies for long-term success  All about the customer  Where we need to be 2

Building on a Strong Foundation  Mission does not change  Strong brand  Still bind the nation together  An engine of business growth Overview 3

Challenging Times  Volume and revenue declines  More dependent on ad mail  Costs rising  Gap expected to increase Overview 4

Invest in Continuous Improvement  New advances in service measurement and improvement  Still much to gain from automation and standardization (FSS)  Making mail Intelligent  Flexible networks  Customer-driven products & pricing  Performance-based culture Overview 5

Strong Foundation Focus on What Matters Most to Customers Leverage Our Strengths Embrace Change 6 Viable Postal Service for Future Generations Vision 2013

Focus on What Matters Most to Customers 7 Vision 2013

8 Start with Customer Needs Provide Excellent Customer Experiences Build on Trusted Relationships Communicate Effectively Focus on What Matters Most to Customers

Leverage Our Strengths 9 Vision 2013

Build on the Reach and Capability of the Network Use Information to Enhance Products and Performance Empower Employees to Build the Business Leverage Our Strengths 10

Embrace Change 11 Vision 2013

12 Use the Full Potential of the Internet Be a Sustainability Leader Collaborate to Grow Embrace Change

Use the Full Potential of the Internet Be a Sustainability Leader Collaborate to Grow the Business Start with Customer Needs Provide Excellent Customer Experiences Build on Trusted Relationships Communicate Effectively Focus on What Matters Most to Customers Affordable Universal Service 13 Build on the Reach and Capability of the Network Use Information to Enhance Products and Performance Empower Employees to Build the Business Leverage Our Strengths Strong Foundation Vision 2013

18 Vision 2013 Starts Now The Future

Universal Service / Postal Monopoly Report 14

Universal Service and Postal Monopoly PRC Report Due Dec  PRC must address USPS comments  Differences: Universal Service vs. Universal Service Obligation  Multiple elements of USO  Two elements of Monopoly  USO and Monopoly inextricably linked 15

Our Approach  Outreach with mailers, mailing associations, consumers, unions & management associations  Outside expertise: IBM, Accenture, RAND, etc.  Input to PRC proceedings 16 Universal Postal Service and Postal Monopoly

Key USPS Positions  Committed to affordable universal service  Maintain broad definition of USO  USO applies to Market-Dominant only  Preserve PES and Mailbox Monopoly to fund USO  Learn from international liberalization  Need flexibility given financial environment  Part of a $1 Trillion industry  Customers support no changes at this time 17 Universal Postal Service and Postal Monopoly

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