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- W2993114436 abstract "It's no secret that the U.S. Postal Service is now making money and has gotten much better at delivering the mail How that is being done is unusual and unique for a government entity. The Postal Servce achieved this dramatic turn around in finances and service by adopting successful techniques from the private sector As everyone has noticed by now, the slumbering giant has awakened. A long-time money loser and butt of TV-show jokes, the Postal Service has been turned around by operating more often like a business. Service and the bottom line are now driving this quasi-governmental ent ty, which has posted billion dollar plus profits three years in a row and witnessed marked improvement in mail delivery. Other government agencies can learn from the Postal Service's financial management achievements. The Postal Service has become profit driven, has implemented a variety of business processes and has used financial information to make business decisions. Data is gathered and analyzed, the causes of problems are identified and success is rewarded Within legal limitations, the Postal Service is operating as much as possible like private enterprise. This is not the way government usually works. The culture of the Postal Service is changing so that this new emphasis on acting like a business, versus thegovernment as usualmentality, will become permanerttly ingrained. Technically, the Postal Service is more government than business. But it is still a business. Products and services are sold to the public and competition with private enterprise is a real factor. Tax dollars are not used and the Postal Service has not received one penny of federal subsidies since 1983. And, it isn't a government corporation or a typical government entity. Technically, the Postal Service is called an independent establishment of the executive branch of the federal governmentThere is no other entity like it. The Postal Service is unique. Now it is trying to operate uniquely. Within legal constraints, business processes are being reinvented. Congress regulates the Postal Service, which limits how businesslike it can be, and rate hikes must be approved by the Postal Rate Commission. However, steadier rates, improving mail delivery, controlling expenses, focusing on customer value and emphasizing the bottom line are clear indicators of the progress achieved by running the U.S. Postal Service like a business. While maintaining its mandate from Congress to provide universal mail delivery, the Postal Service is becoming more flexible and competitive, and it is making money. In fiscal year 1995 a net income of $1.8 billion was posted, in 1996 it was $1.6 billion, and in 1997 it was $1.3 billion. Another large profit was expected for the fiscal year that ended September 30. So much significant progress has been made that the Postal Service is getting the attention of Wall Street, the U.S. Department of the Treasury, other federal agencies, competitors, Congress and customers. Even private enterprise is trying to learn from this success. Vice President Al Gore also has frequently praised the Postal Service for innovation. For example, Gore gave the Postal Service high marks in his book, Common Sense Government. Gore cited the Postal Service five times for customer service improvements, innovative business practices and technology development. Until a few years ago, the Postal Service didn't even use the term profit. The terms used were government terms such as contribution toward and surplus or deficit. The Postal Service is required by law to achieve revenues at least equal to costs plus an allowance for contingencies. Many long-term government employees interpreted this to mean either break even or lose money. In one survey, a majority of the Postal Service's senior executives thought it was wrong to ever earn a profit. The Postal Service had net losses in 17 years and profits in only six years between 1971-94. …" @default.
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- W2993114436 date "1998-01-01" @default.
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- W2993114436 title "The U.S. Postal Service's Dramatic Financial Overhaul-Using Private Sector Techniques" @default.
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