Saturday, December 22, 2012

US postal service

I guess the whole world knows at this time of the challenges that the US postal service is facing. In this article on USPS, the author looks at the problem is more detail.

The author does show how revenue is going down faster than the expenses. This results in an loss incurring enterprise which is not sustainable. Therefore, this needs to be fixed and the author proposes various measures. These measures boil down to
  • reducing costs by cutting unprofitable services. This includes closing several offices and reducing the frequency of mail delivery since it does not make sense to have the same level of service when the demand for such services has gone down.  
  • increasing revenue by increasing the cost of other existing services and introducing new services 
Nothing revolutionary but just plain old common-sense. But we need strong leadership to execute on this. An illustration of why execution is very important in the life of an enterprise.