If only the
wooden and unbending USPS could pay a visit to the Blue Fairy and
ask the magical words "please make me a real business, please make
me a real business." Like Pinocchio, who yearned to be a real boy,
the USPS seems to be always searching for that magical elixir – be
it a new business process, axiom, trend or what have you - that
will make it a bona fide real business.
For the last
ten or so years the USPS has been searching the business world for
that magical business formula that will transform the USPS from an
entrenched and intractable bureaucracy into a dynamic, thriving,
and money-making business. Unfortunately, what works in the
business world, or in a certain business, is not necessarily what
works at the U.S. Postal Service. Moreover, when these private
sector initiatives have been applied over the existing operating
structure at the USPS, the outcomes have been disastrous.
Mimicking the real business world has not been good for the USPS.
Consider the
Self Directed Work Teams business model that was adopted by the
USPS several years ago. In the early to mid 1990s, work teams
became the hot business trend for companies attempting to flourish
in an emerging and expanding technological revolution. With the
work teams model, employees were usually assigned to teams of four
to five people who would work together to solve marketing,
technical or other business problems. This approach worked well in
the technology sectors where a myriad of problems new to the
business environment could be solved by small groups of dedicated
and creative individuals working together. But leave it to the
USPS to turn a good thing bad.
The USPS
converted an entire post office in Minnesota to the work teams
concept. However, the delivery function is not a dynamic situation
filled with new problems to solve. The delivery of mail is a
static, mundane, and repetitive labor intensive job that requires
a very controlled work environment (since workers are motivated by
the hourly wage; work longer – get paid more, work faster – get
paid less). The plan was to divide carriers into teams of four.
Each team of four would collectively be responsible for four
routes. Each team was to be given limited autonomy in how best
each day to collectively deliver the routes under their charge.
Since the teams were to be self-directed, delivery supervisor
positions would be eliminated. The USPS knew that carriers would
naturally take longer because they did not have direct
supervision, however, the USPS figured that the savings from
eliminating supervisors could outweigh extra carrier overtime
costs. Naturally, the attempt was a total failure. For one, the
delivery function is not conducive to the work teams concept.
Also, management did not alter the pay system to address
underlying motivational factors (the hourly wage).
In the mid
to late 1990s the USPS noticed that many companies were stressing
the importance of measuring processes and performance. "Of
course", the USPS thought: "We were planning and implementing, but
we were not following up by measuring – that’s what we’re
missing." So the USPS went into overdrive and started measuring
everything. EXFC, PETE, VOE, EPED, Mystery Shopper scores, and a
host of other measures and acronyms were the outcome. But what
were the results? Example: Managers devised elaborate hub systems
in cities across the country to circumvent measurements (test
letters). Work teams of managers were organized to find problems
and to manage and collect all of the measurements. Clipboards and
paperwork proliferated, as did new managerial positions. While it
is certainly good business sense to measure, evaluate, and
correct, this was overkill. As a result, the USPS continues to
employ a bevy of managers who chase numbers instead of delivering
the mail.
"Measuring"
initiatives have also been compromised by manager (EVA) bonuses,
which brings us to another point – manager bonuses! Several years
ago executives at the USPS looked with envy at the large bonuses
handed out by corporations to employees who met performance
objectives. Thus, we have the EVA bonus program. Unfortunately,
though the EVA concept is a good one, the USPS has not been wise
in how it has linked measurements to bonuses. Consider the
District Manager whose bonus for a certain year rested in large
part to meeting EXFC scores but was not linked to work hours
saved. You can bet that the District Manager had instructed all
carriers in the district to deliver every piece every day (EPED)
no matter how much overtime it cost the USPS. Unfortunately for
the USPS, the EVA bonus program has cost the USPS in more ways
than the bonuses.
Finally,
consider the 1-800 Call Center program. Again, several years ago,
the USPS scanned the business horizon and noticed that real
corporations have 1-800 call centers for customers. The USPS had
to have one of its own so that it could look and feel like a real
corporation. (Never mind the fact that centralized call centers
have been one of the most hated corporate initiatives in recent
memory.) The USPS spent several, several million dollars
developing a call center of its own. What happened? Many customers
would simply hang up upon realizing that they had called a dreaded
call center. Customers, especially older customers who had no
tolerance for the impersonal call centers, would walk blocks to
their post office to speak to a real person. Other customers have
been known to drive across town to speak to a real person about
their forwarding of mail problems. The new toy (call center),
however, soon lost its initial appeal. The USPS was soon cutting
back on staff at the call center. The wait time to speak to a
representative soon increased from fifteen seconds to two minutes
or more. Finally, the USPS relented and returned local phone
service to local post offices. Today, once again, a customer can
call their own local post office, not someone in Provo, Utah or
wherever the hell that the call center is located. All in all,
this was a very costly and needless initiative.
The point of
this editorial is not to bash the USPS for its corporate envy, but
to simply say "get a grip and use your common sense." The USPS is
800,000 strong. Most if not all of these 800,000 have a pretty
good idea about how to get the job done in the most efficient and
reasonable manner. Instead of looking outward to businesses and
ideas that have little or nothing in common with the USPS, let's
look inward. After all (remembering the lesson from Pinocchio),
it's what’s on the inside that counts! |