USPS's Delivering Results, Innovation, Value, and Efficiency Program Capping
Background
In 2011, the U.S. Postal Service was facing unprecedented challenges, including a projected $20 billion annual loss by 2016. That year, the Executive Leadership Team established the Delivering Results, Innovation, Value, and Efficiency (DRIVE) program management framework for business strategy development and execution in an effort to improve business performance.
Since 2011, the U.S. Postal Service Office of Inspector General has conducted seven DRIVE related audits. The objectives of this capping report were to determine whether the Postal Service’s DRIVE program management processes align with industry best practices and assess the impact of DRIVE initiatives in improving business performance.
What The OIG Found
The implementation of the DRIVE framework and the crossportfolio performance indicators, which measure performance of strategic initiatives, indicate DRIVE has had a positive impact on improving business performance. However, there are opportunities for the Postal Service to strengthen DRIVE governance and address program management process gaps by aligning with industry best practices.
In previous audits, we identified recurring findings related to missing and incomplete documentation; nonalignment of milestones and targets with performance and progress goals; and inconsistent or inaccurate data. Additionally, we identified other issues as part of this audit related to alignment of DRIVE initiatives with respective investment proposals and including a complete DRIVE program management closeout process. If the Postal Service followed industry best practices, to enhance current governance or as criteria for areas with no governance, it could strengthen the overall DRIVE governance and address the identified issues.
These issues occurred because established DRIVE governance was not consistently followed or formal DRIVE governance criteria did not exist.
The DRIVE framework has positively contributed to improved business performance by providing visibility, transparency and accountability around Postal Service strategic initiatives. However, weaknesses in governance criteria and internal controls increase the risk that DRIVE initiatives may not meet prescribed goals and metrics, be accurately assessed, or positively impact business performance.
What The OIG Recommended
We recommended management assess current DRIVE governance to ensure internal controls meet design intent and strengthen governance, where feasible, by aligning with industry best practices.