• on Jul 11th, 2011 in Strategy & Public Policy | 17 comments
    The American marketplace is experiencing constant changes in the ways that companies conduct business and communicate with customers. Like other businesses, the Postal Service must also innovate to stay relevant. The Office of Inspector General plans to examine innovation processes currently used by major U.S. corporations to learn about best practices/processes. The essence of innovation is to identify a problem and develop solutions. For example, Google and Facebook are successful because their websites meet needs of people to manage and organize vast amounts of information and social relationships available on the Internet. The Postal Service has enjoyed some success with innovative products. Its Priority Mail Flat Rate products have become popular, shipping 350 million boxes over the last 6 years, with revenue of $1.2 billion in fiscal year 2010. This product met the need to simplify the shipping process and was relevant to both consumers and business. What should the Postal Service do to identify business opportunities and customer needs in order to create solutions that lead to financial success and customer satisfaction? Also, what experience(s) have you had with Postal Service innovation? This topic is hosted by the OIG’s Planning and Strategic Studies Directorate.
  • on Feb 22nd, 2011 in Labor | 35 comments
    [dropcap style="font-size: 60px; color: #9b9b9b;"] A [/dropcap]sk postal employees about the Postal Service’s Pay-for-Performance (PFP) program and you’ll hear a wide range of opinions as to why they think the program is not working. Many believe the program is unfair and can be subject to manipulation, The IBM Center for The Business of Government, Dr. Carl DeMaio, president of the Performance Institute, Dr. David Norton, president of the Palladium Group and co-founder of the Balanced Scorecard Collaborative, and organizational performance guru Jay Schuster cited the Postal Service’s PFP program as a model because it links individual contributions to organizational success. According to Postal Service officials, the PFP program’s foundation is a balanced scorecard of objective, independently verifiable measures of service, employee engagement, and financial performance. Performance indicators are measured at national, district, business unit, and individual levels. In its 2010 Comprehensive Statement of Postal Operations and Annual Report, the Postal Service stated the PFP program continued to drive organizational achievement as measured by a 2.2 percent increase in Total Factor Productivity (TFP) in 2010 compared to 2009.This marked the ninth year of positive TFP growth since 2000. The current PFP program evolved over a 12-year period and became the only basis for annual salary increases and lump sum awards for executive and administrative employees beginning in 2004. In implementing its PFP program, the Postal Service joined the ranks of many private sector firms where pay for performance is a standard feature for management and executives. In September 2010, many readers commented on our blog about the Postal Service’s PFP program. Comments expressed various opinions and perspectives about the program. Some said the PFP program is “broken” because it’s easy for postal management to manipulate. Others say PFP would be a great thing if the goals were reasonable and within the control of the manager. Many suggested scrapping the program altogether for a variety of reasons. For example, some said established goals are unrealistic and are changed often throughout the year so you end up chasing a moving target; others that the reporting system has no accountability factor and results are falsified; and still others that the ratings are changed or manipulated even when goals are achieved so that you get less of a raise. The OIG plans to initiate a review of the Postal Service’s PFP program. We would like to hear more about your thoughts on the subject. This topic is hosted by the OIG’s Human Resources and Security Audit Team.
  • on Aug 23rd, 2010 in Labor | 30 comments
    To encourage employees to contribute constructive ideas to enhance customer satisfaction, generate revenue, increase productivity, and improve competitiveness, the Postal Service offers the web-based eIDEAS program. Postal employees can submit ideas online or at a mail processing plant kiosk. The Office of Inspector General recently issued a management advisory report titled eIDEAS Timeliness and Transparency. The audit’s objective was to identify opportunities for the Postal Service to enhance the timeliness of the eIDEAS process and transparency of the resulting management actions. We found that eIDEAS reviews took far too long and management’s resulting actions were not transparent. Our survey of employees revealed that slow evaluations, poor management response, and lack of program transparency inhibited the program’s success. If you are a postal employee or a stakeholder, do you believe you have a way for your suggestions to be heard? Is eIDEAS the best way for employees to communicate their ideas? Whether you are a postal employee or not, do you believe there is a better way to encourage and gather employee input? If so, let us know in the comments section below. This topic is hosted by the OIG's Audit Engineering and Facilities team.

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