Performance Measurement for the Mail Center

1
Performance Measurement for the Mail Center

• Derrick Miliner
• Program Manager,
• Mail Management Policy
• US General Services Administration
• 202 273 3564

2
Objectives for this Workshop

• Help mail center managers develop or refine their
  performance measurement systems
• Provide critical strategies for establishing and
  using performance measures
• Provide a list of suggested measures

3
Definitions

• Customers the people that you deliver your
  products and services to. They are direct
  beneficiaries depending on your business they
  may be inside or outside your company or agency.
• Stakeholders the people who tell you what to
  do. Generally, stakeholders serve as alter egos
  of your customers they fill a stewardship or
  regulatory role and they influence budget,
  funding and resource allocations.
• Goal what you intend to accomplish over a long
  period of time and with sustained effort usually
  stated as a verb phrase (for example, Provide
  excellent customer service).
• Objective what you intend to accomplish as a
  result of a specific, short-term effort also
  usually stated as a verb phrase (for example,
  Sort incoming mail correctly the first time).

4
 Definitions - Continued

• Performance Measure Something you can count
  (this is, a number) that will show how well you
  are doing in achieving an objective. Measures are
  written statements of what you will track and
  trend over time.
• Baseline the current or standard value for a
  measure, to which all future measurements will be
  compared (when we started keeping track, we were
  sorting 2.5 percent of incoming mail
  incorrectly).
• Target - the timeframe and desired level of
  performance increase or decrease, or the rate of
  improvement for a measure (for example, in
  January, we will sort only 2 percent of incoming
  mail incorrectly).
• Benchmark someone elses a target for a
  particular performance measure alternatively, a
  comparison of your mail operation to a similar
  one.

5
Please Write Short Answers to these Questions

• Who are your customers?
• What do your customers want you to do?
• Who are your stakeholders?
• What do your stakeholders want you to do?

6
Questions, Continued

• Who else is important to you in your work?
• What do these other people want you to do?
• Is anything else important to you in your work?
• How do you know that you are doing these things
  well?

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Measurement Profile

• Performance Measure
• Goal
• Objective
• Measurement Definition
• Frequency
• Data Source
• Baseline
• Target(s)
• Source For Target(s)
• Person Responsible for Collecting and Reporting
  Data
• Status Of Data Collection
• Next Steps
• Assumptions and Notes

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Measurement Profile

• Performance Measure
• Goal
• Objective
• Measurement Definition
• Frequency
• Data Source
• Baseline
• Target(s)
• Source For Targets(s)
• Person Responsible for Collecting and Reporting
  Data
• Status Of Data Collection
• Next Steps
• Assumptions and Notes

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Example of a Completed Measurement Profile

• Performance Measure Cost per piece by class of
  mail
• Goal Optimize/reduce the cost of outgoing mail
• Objective Accurately track the cost of outgoing
  mail.
• Measurement Definition Postage expense divided
  by number of pieces, by class, for metered mail
  and permit mail
• Frequency Weekly reports
• Data Source(s) Digital postage meter and permit
  manifests.
• Baseline Four weeks, beginning June 12, 2006
• Target(s) By September 30, 2006, the costs will
  be
• First class/meter, under one ounce
• First class/meter, under two ounces
• Flats/meter
• First class/permit, under one ounce
• Standard mail/permit, under one ounce
• Source For Targets(s) Analysis of baseline
  data.
• Person Responsible for Collecting and Reporting
  Data Joe
• Status Of Data Collection Talking with meter
  supplier about what reports the meter can
  produce. Examining permit manifests to see what
  data can be extracted.
• Next Steps Talking with printing and programs to
  make sure that copies of all manifests come to
  the mail manager.

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Critical Success Factors

• Make sure your measures are easy to understand.
• Get everyone involved in establishing measures
  and setting targets.
• Make sure your targets are attainable they
  should push improved performance but not make
  anyone paranoid.
• Use results to improve performance, not to
  evaluate people dont use performance
  measurement results to punish people.
• Hold teams accountable for managing for results
  reward them when they succeed, and analyze why
  when they fail.

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Critical Success Factors - Continued

• Targets need milestone dates.
• Refine your measures and targets as you work with
  them, but dont fall into the trap of changing
  your targets just because you are not getting
  there when you expected to.
• Discuss results with your employees routinely.
• Post your measures and results in the mail center
  for employees (and customers?).
• Communicate results to stakeholders its vital
  for their continuing support.
• Integrate measurement into your management
  processes.

12
Do the RUMBA!

• Make your performance measures
• Reasonable
• Understandable
• Measurable
• Believable
• Achievable

13
Suggested Performance Measures for Mail Centers

• For Incoming Mail 
• Sort rate (pieces per hour)
• Pieces of mail handled per Full Time Equivalent
  (FTE)
• Percent of internal mail delivered on time
• Percent of incoming USPS mail delivered on time
• Percent of accountable mail delivered on time
• Percent of internal and USPS mail sorted
  correctly
• Customer satisfaction

14
Suggested Measures - Continued

• For Outgoing Mail
• Cost per piece by class
• Worksharing savings
• Express mail expense divided by total postage
• Percent of meter postage and stamps that are
  spoiled
• Percent of outgoing mail that is moved to the
  USPS on the same day it is received in the mail
  center
• Percent of outgoing mail that is returned as
  undeliverable as addressed

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Suggested Measures - Continued

• Management Measures
• Ratio of production staff to administrative and
  supervisory staff
• Results of employee satisfaction surveys
• Workplace safety (e.g., work hours lost to
  accidents)
• Annual hours of training per FTE
• Frequency of customer complaints
• Results of customer satisfaction surveys

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Suggested Measures - Continued

• For Contracts and Service Level Agreements
• Equipment
• Processing speed
• Downtime
• Response time for service calls
• Outsourcing use the same measures listed above
  for incoming and outgoing mail.

17
Contact Information

• Derrick Miliner
• 202-273-3564
• Derrick.miliner_at_gsa.gov
• www.gsa.gov/mailpolicy