1. Strategic Transformation Plan 2006—2010 2007 Update Strategic Transformation 2007 Update January 30, 2008

2. Strategic Transformation Plan 2006—2010 2007 Update  Start with vision – realistic but ambitious  Break it down: priorities  Commit to aggressive targets  Sustain change Transformation

3. Strategic Transformation Plan 2006—2010 2007 Update  How the law impacts strategy  Update and reinforce goals  Refine key strategies  Set the stage for 2013 2007 Update

4. Strategic Transformation Plan 2006—2010 2007 Update  Generate Revenue  Increase Efficiency  Improve Service  Create a Customer-Focused Culture  Enhance Sustainability

5. Strategic Transformation Plan 2006—2010 2007 Update  Add value, improve relevance: Intelligent Mail  Collaborate on new applications  Simplify acceptance, expand access  Build on domestic to grow international  Strengthen outreach Generate Revenue

6. Strategic Transformation Plan 2006—2010 2007 Update Reinforce the value of mail. Responsive to customer needs. Generate Revenue

7. Strategic Transformation Plan 2006—2010 2007 Update  Flats sequencing  Expand standardization  Efficient, customer-focused network  Streamline processes ─ beyond operations Increase Efficiency

8. Strategic Transformation Plan 2006—2010 2007 Update Accelerate existing efforts: >$1 billion annual savings. Costs under CPI by class. Increase Efficiency

9. Strategic Transformation Plan 2006—2010 2007 Update  Quality and consistency at all access points  Updated standards, externally-validated service measurement  Cut UAA in half. Improve addresses and lists.  Move to total mail visibility Improve Service

10. Strategic Transformation Plan 2006—2010 2007 Update Use data to target opportunity, reduce variability, and drive continuous improvement. Improve Service

11. Strategic Transformation Plan 2006—2010 2007 Update Create a Customer- Focused Culture  Develop and sustain skills  Minimize distractions  Align compensation and recognition with results

12. Strategic Transformation Plan 2006—2010 2007 Update Align to new technologies and evolving markets Engagement to ensure viability for future generations Create a Customer- Focused Culture

13. Strategic Transformation Plan 2006—2010 2007 Update  Improve understanding of the benefits of mail  Improve address and list quality  Help customers go “green”  Expand recycled and recyclable products  Reduce fuel use. Reduce energy use in facilities by 20% Enhance Sustainability

14. Strategic Transformation Plan 2006—2010 2007 Update Build a conservation culture. Partner with customers, suppliers, and government. Enhance Sustainability

15. Strategic Transformation Plan 2006—2010 2007 Update 2009 2010 2011 2012 2013 What’s Next?

16. Strategic Transformation Plan 2006—2010 2007 Update  What do you see as growth opportunities?  Where does your business need to be in 5 years? How can we help get you there?  How do we work together to get new customers using mail? We need your thoughts... 2013

17. Strategic Transformation Plan 2006—2010 2007 Update Questions? Your comments questions ideas Transformation @usps.gov