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Discussion questions
. What is character?
. Does sport build character?
Two Types of Character to consider:
L. Social character= Teamwork, loyalty, work ethic, and
perseveranGe
2. Moral character: Honesty, fairness, integrity, and
responsibility
Where do you think individual-sport athletes, team-sport
athletes, and nonathletes rank in each of these two
categories?
Describe the differences and why these differences exist.
How do you know?
1
United States Postal Service
Management Structure Study
July 8, 2003
Submitted to:
President’s Commission on the
United States Postal Service
President’s Commission on the United States Postal Service
Management Structure Study
a) Table of Contents
Page 2
Section Page Number
a) Table of Contents 2
b) Executive Summary 3
c) Assignment Objectives and Background 5
d) Research Methodology 7
e) Study Findings and Best Practices 9
f) Management Structure Design Criteria 17
g) Recommendations 19
h) Appendices 28
a. Glossary of Terms
b. Interview Guide
c. Focus Group Guide
President’s Commission on the United States Postal Service
Management Structure Study
b) Executive Summary
Page 3
Executive Summary
In the nearly two years since we designated the Service’s
transformation efforts and
long-term outlook as a high-risk area, it has experienced
financial difficulties and
struggled to fulfill its mission of providing high-quality
universal service while remaining
self-supporting… One of the key challenges of the Service’s
transformation will be
realigning its infrastructure and workforce to support its
business model for the 21st
century.
Major Management Challenges and Program Risks (GAO
Report, January 2003)
Unisys/Watson Wyatt is pleased to submit our study of the
management structure of the
United States Postal Service (USPS). Highlights of our findings
include:
–
consisting of
Headquarters, Functional Staff, and Operations – is appropriate
for an
organization that is committed to operational excellence. The
mission of the
USPS is to deliver standard, regulated offerings on a massive
scale in a manner
that is dependable, consistent, and cost effective. Some
opportunity exists for
rebalancing tasks between the staff groups and the operating
organization;
however, this is not a major impediment to managing the
organization.
although there is a
real opportunity to continue to rationalize the network. Few
levels separate
the front-line manager and the top USPS executive. This
leanness is consistent
with contemporary best practice that suggests flattening the
organization to
minimize bureaucratic decision-making and thereby enhance
responsiveness and
flexibility.
to do and the
results they are expected to produce.
organization’s objectives and
how they align with it.
boundaries. The ability
to integrate information in ways that enhance implementation is
a major design
principle for an organization driven to achieve by operational
excellence. For the
most part, information moves within the USPS based on well-
established
relationships and clear roles.
We believe the USPS should preserve and, in some cases,
continue to build upon these
and other existing strengths that characterize the organization’s
existing management
structure.
President’s Commission on the United States Postal Service
Management Structure Study
b) Executive Summary
Page 4
Notwithstanding the organization’s strengths that are identified
in our findings, in this
report we present four specific recommendations for
improvement that could enhance
effectiveness and efficiency:
– Accelerate Rationalization of the
Network – matches the
organization structure to demand, enabling a continuing
reduction in the number
of managers as appropriate.
– Provide Increased Decision-Making
Role for Operations
Managers – recognizes the benefits of the current management
structure while
recommending a greater voice for the Area-VP role as strategy
advisor and
sounding board, possibly through the creation of an Operating
Council.
– Improve Headquarters and Area Staff
Coordination and
Integration with Operations – presents ideas for ensuring that
necessary
coordination and shared service activities are delivered
effectively, enabling a
potential reduction in duplicative staff roles.
– Adopt a Consistent Performance
Cluster Model –
establishes the District Manager as a single point of
accountability for
Performance Clusters and clarifies the MPOO/POOM role and
support
requirements.
President’s Commission on the United States Postal Service
Management Structure Study
c) Assignment Objectives and Background
Page 5
Assignment Objectives
Unisys/Watson Wyatt was retained by the President’s
Commission on the United States
Postal Service (the Commission) in June 2003 to independently
study and evaluate the
management structure of the United States Postal Service
(USPS) and assess whether the
existing structure can be redesigned to facilitate more effective
and efficient
organizational performance.
The key questions addressed in our research and analysis
include:
rent management structure enable the USPS, over
the next three to five
years, to achieve the mission, vision, strategic objectives, and
business imperatives
outlined in its Transformation Plan issued in April 2002? What
structural changes, if
any, should be explored further? (We recognize that the USPS
is considering
alternative models. Our review of the existing management
structure is not based on
any of these models.)
the USPS’s
management structure design?
appropriate number of
management levels given the organization’s size, geographic
spread, scope and
diversity of services, day-to-day operational imperatives, and
culture?
achievement of both
strategic and operational objectives?
of management levels,
spans of control, accountability, levels of authority) promote
the most effective
decision-making possible?
adversely impact effective and
efficient organizational performance?
This report addresses the above questions. We present the
research methodology
employed, the results of our analysis, and a series of
recommended modifications to the
existing management structure, supported by available
published “best practice” data.
Given the short timeframe available to conduct the evaluation,
this report represents a
high-level assessment and theoretical examination of
fundamental improvements that
could be achieved through potential restructuring changes to the
existing management
structure as of June 2003. Please note that Unisys/Watson
Wyatt were not requested to
incorporate benchmark management structure data or develop
implementation plans for
the recommendations put forth in this report.
President’s Commission on the United States Postal Service
Management Structure Study
c) Assignment Objectives and Background
Page 6
Background
Executive Order No. 13278 established the President’s
Commission on the United States
Postal Service (the Commission) for the purpose of examining
the state of the United
States Postal Service, and preparing and submitting a report
articulating a proposed
vision for the future of the USPS.
In early June 2003, the Commission sought specialized
assistance from Unisys/Watson
Wyatt in examining and assessing the existing management
structure in order to identify
possible areas of opportunity to improve the USPS’s
productivity, reduce costs, enhance
customer service, and—overall—more effectively support the
mission of the USPS.
In order to facilitate the rapid development of an objective,
independent assessment by
Unisys/Watson Wyatt, the USPS was requested to provide
immediate, unencumbered
access to various executives and managers who would be
representative of the key levels
of its management structure and geographic service areas.
President’s Commission on the United States Postal Service
Management Structure Study
d) Research Methodology
Page 7
Research Methodology
Because of the compressed, three-week timeline for collecting
information, conducting
analysis, and developing recommendations, our research was
limited to gathering
qualitative data through a series of interviews and focus groups
conducted at the USPS
Headquarters and across a representative sampling of
geographic Areas (Northeast, East,
Great Lakes, and West) and Performance Clusters within those
Areas. Approximately 80
executives and managers were randomly selected for in-person
and teleconference
interviews or focus groups representing key levels of the
management structure under
study, including:
-VP)
(See Appendix A—Glossary of Terms for a description of each
of these roles.)
Additional information was gathered through an interview with
the Senior Vice President
of Human Resources as well as data collection sessions with
Field Support, Strategic
Planning, and an Area Staff Representative. Finally, we
conducted a number of on-site
visits to the Postal Services Headquarters, Area Headquarters
(East, Northeast, Great
Lakes), Plants (Northern Virginia, Philadelphia), and five post
offices (Northern Virginia,
Great Lakes) to gain a perspective on the role the management
structure plays in day-to-
day operations of the larger enterprise.
Unisys/Watson Wyatt initially interviewed Pat Donohoe, COO,
at the Postal Service
Headquarters in Washington, D.C. to discuss the current
management structure and allow
Mr. Donohoe to share his thoughts on any barriers and
facilitators inherent in the existing
structure. We also used this time to obtain an understanding of
the organizational
challenges currently being faced within the context of the
Transformation Plan.
Subsequently, between June 12th and June 20th, we conducted a
series of on-site and
teleconference interviews and focus groups across the various
geographies and
management levels mentioned above. Interviews typically ran
one hour, while focus
group sessions ran from 60 minutes to two hours and included,
on average, eight
employees. In all, we conducted 12 interviews and 10 focus
groups. Topics centered on
the USPS’s strategic objectives and management structure
(including such areas as spans
of control, management level, job scope and responsibilities),
role clarity, levels of
authority, decision-making, and communication. (See
Appendices B and C for a copy of
the interview and focus group guides.)
President’s Commission on the United States Postal Service
Management Structure Study
d) Research Methodology
Page 8
Interviewees and focus group participants were candid and
forthcoming on issues such as
productivity, customer service, management structure, and the
challenges arising from
the existing framework of legal constraints and union
agreements. Our data collection
concluded with a follow-up teleconference with Mr. Donohoe to
share preliminary
findings and gain additional insight into the data collected.
Simultaneous to our qualitative data collection exercise, we
reviewed available published
management and organization behavior research literature and
gathered relevant “best
practice” information on issues related to management
structure. This best practice
information, combined with our qualitative data and subject
matter expertise, served as
the foundation for our analysis and assessment of the USPS’s
existing management
structure.
We identified key performance drivers and critical management
structure design criteria
in the context of the organization’s mission, vision, and
strategic objectives as laid out in
the Transformation Plan. We applied the structural design
evaluation criteria to the
existing management structure and identified specific areas of
opportunity we believe
could help the USPS achieve its mandate over the next three to
five years.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 9
Discussion of Study Findings
Because of its mission, governance structure, scale of
operations, geographic scope, and
history, the USPS is a unique organization operating under
unique constraints (including
labor contracts, legal limitations, etc.). Consequently, there are
no “true” comparator
organizations that can serve as a valid, comprehensive
benchmark source. The USPS is
distinctive, in part, due to its multiple stakeholders: Congress,
U.S. taxpayers, mass
mailers. The USPS must reconcile the often conflicting demands
of these groups to
deliver on its mission. The management structure of the USPS
must both address the
needs of these varying constituents and manage to its overall
goals and objectives ─
providing universal access at the lowest possible price.
Although the USPS has evolved over recent years (e.g., the
relatively recent effort to
enhance the “people management” skills of its managers), it
nevertheless largely remains
structured as a command-and-control organization. We
acknowledge the strength of
centralized decision-making in driving standardization and
consistency in order to
maximize operating efficiency for such a vast organization.
Included below are our key findings:
Finding: USPS Management Structure Basically Sound
From our perspective, the current management structure has
been designed to focus on
setting the strategic direction, managing daily operations, and
providing requisite internal
support. The Headquarters staff bears primary responsibility
for determining the strategy
and providing organizational oversight. Operations are
primarily consolidated under the
Chief Operating Officer (COO), with the exception being the
myriad program directives
run through both Headquarters and Area staff functions in
various combinations.
Individuals across all management levels highlighted several
critical factors unrelated to
management structure that will be key in determining the
organization effectiveness of
the USPS, such as labor agreements and legal constraints.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 10
This organization chart represents our understanding of current
managerial relationships:
Management fundamentally follows a command and control
structure with significant
policy and operational decisions made at Headquarters. The
“Field” (all organizational
components outside of Headquarters) is charged with
implementation, but is managed
within relatively narrow constraints. In essence, Headquarters
controls the “what,” and
the Field controls the “how.” All operations (i.e., the
collection, processing, and delivery
of mail) are accountable to and managed by the COO, which
ensures unified management
responsibility. Descending the levels of the management
structure below the COO, the
organization is organized geographically in ever-smaller units.
The Area Vice President (A-VP) position serves as the critical
control point for quickly
and consistently disseminating organizational directives into
nine geographic entities.
Management levels within each Area are also organized on a
geographic basis. The
impact of this design is to maximize operational consistency
and achieve economies of
scale.
Office of the
Postmaster
General
COO CFO SVP
HR
CMO
Operations Area VP
District
Manager
District
Manager
Plant
Manager
Area
Staff
MPOO Plant
Manager
MPOO Staff
Postmaster Postmaster
Staff Staff Staff
Staff
PERFORMANCE CLUSTERS
STRATEGY and SUPPORT OPERATIONS Etc.
Etc.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 11
In our review, we found a number of organization design “best
practices” evident to some
degree within the USPS management structure including:
Best Practices USPS Examples
Delayering of the organization
levels
Elimination of some levels and roles
in recent years
Clarity among managerial roles
New performance measurement
system that is beginning to cascade
through the management structure
Matrix relationships to handle
growing organizational complexity
Interface among Headquarters and
Area functional staff
Integration of accountability of
processing and retail responsibility
further down in the organization
Creation of “lead” role in some
Performance Clusters
Given the magnitude and importance of operations to the USPS,
it appears that the
“operations side” of the organization may be under-represented
in the development of
key strategies and new programs.
The “processing” and “customer service” sides of operations are
integrated at the
Performance Cluster level. However, there are at least two
operating models at this level
that provide for this integration inconsistently:
Lead Model
Typically the District Manager fills the
lead role and is held accountable for all
aspects of the cluster performance and
management. Occasionally, the Plant
Manager fills this role.
Partnership Model
The District Manager and Plant Manager
partner as peers in managing all aspects
of customer service and operations
respectively. Under this model, there is
no single point of accountability for a
Performance Cluster.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 12
We should really take
the time to work out the
kinks out of the
programs first. Don’t
worry about being first.
Worry about being
accurate.
USPS Study Participant
Each POOM oversees anywhere
from 75 to 125 post offices. There
are Executive POOMs and about 20
non-executive POOMs in the Region.
Many operate with no staff. POOMs
are kept very busy, always on the go.
This is a significant job, with many
day-to-day fires to be put out in
addition to the administrative
component and keeping the
postmasters aligned around the
strategy.
USPS Study Participant
Finding: MPOO/POOM Lacks Clarity and Consistency
The MPOO/POOM role is important for program
and resource coordination and integration. It is the
first level of response when issues are escalated
from the front line (post office level). However,
our review found that the role is an area identified
as needing study and improvement.
For example:
organization is inconsistent – in an
organization characterized by standardized
approaches, the MPOO/POOM role is an
exception to the norm. Difference is not necessarily bad, but the
feedback we
collected suggests there is lack of clarity in the organization as
to what defines the
role and what outcomes it is expected to produce.
is
high compared to best
practice standards.
of support provided
to the position, ranging from an adequate level to no support.
Finding: Alignment Opportunities – Communication and
Directives from
Staff Functions Cause Confusion
The clean “command and control” management approach of the
USPS cascades strategy
and goals from the top into the organization to lower
management levels for
implementation. However, Postmasters frequently receive
conflicting, duplicative, or competing directives from staff
functions in Headquarters and Areas. This causes confusion
and negates the effectiveness and efficiencies required of an
operational effectiveness model. To minimize the drag caused
by this inefficiency, staff groups need to clearly align their
initiatives and programs with overall organization strategies
and ensure that requests and requirements placed on operating
units are coordinated and vetted for impact prior to launch. In
some cases, a staff function that exists at both Headquarters
and in Areas provide different messages, suggesting a need for
better coordination within the functions.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 13
We have reduced the
employee population
by roughly 60,000 over
the past few years. I
believe a great line of
sight exists from
Headquarters down
through the Areas and
Districts.
USPS Study Participant
Finding: USPS Has Clear Line of Sight
The drivers of operational excellence for an organization like
the USPS are uniformity
and consistency, repeatable streamlined processes, rapid
information transfer, cost
efficiencies, and the capacity to execute. To manage an
organization in light of these
drivers, it is critical to establish and maintain clear “line of
sight” – meaning that all
employees understand the organization’s objectives, their
individual roles and
responsibilities, and how they are performing against them.
The existing management structure consists of Headquarters,
functional staff, and operations. This approach is uniformly
applied across a huge organization allowing for consistent
messages about strategy, performance expectations, and
tactics. As these messages are communicated and reinforced,
they produce a clear line of sight across all levels of
management from individual postmasters to the Postmaster
General. We found a striking similarity in the understanding
of organizational challenges and potential solutions to address
these issues among managers and executives across various
levels and geographies. General themes we uncovered
include:
People management is the bigger challenge (labor issues,
etc.).
functions and Area
representatives.
decision-making.
In our experience, it is rare to find an organization of such size
that has achieved this
degree of consensus across differing management layers.
Furthermore, our research indicates the crucial role that line of
sight can play in an
organization’s success. The findings of Watson Wyatt’s
WorkUSA® 2002 study show
organizations that achieve superior line of sight have Total
Return to Shareholder levels
that are four times higher than those of organizations with poor
line of sight. (Total
Return to Shareholder may be viewed as a proxy measure of
economic value generation,
which in turn reflects operating effectiveness and efficiency.)
Watson Wyatt WorkUSA® 2002
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 14
Finding: USPS Management Has a Lean Structure
Given the size of the USPS organization, we
found the management structure to be
extremely lean. There are few levels of
management overall and the number of
managers as a percentage of total USPS
employment is similar to other production-
driven organizations, such as light
manufacturing and warehousing operations.
The USPS deserves credit for the actions it
has taken in this regard. As noted in the
USPS 2001 Annual Report: “We
restructured our organization to bring more
focus to priorities and the core business.
Changes in our headquarters and field
organization are enabling us to better serve
the American people by establishing a leaner
management structure.”
We knew we had to take some strong
steps. We did. They included
sweeping organizational changes
that started at the top when we
reduced the number of officers by 20
percent. We eliminated 800
Headquarters positions. We
realigned our field management
structure, eliminating 20 percent of
our Area offices.
Postmaster General John Potter
testimony to Senate Subcommittee,
September 27, 2002.
The senior management spans of control (A-VP and below)
appear to be in line with best
practices (see Span of Control Data following). However, within
the Performance
Clusters, we found the span of control to exceed best practice
ranges.
Overall, the current management structure is similar to
organizations with well-defined
missions, large employee populations, and geographically-
dispersed operations, such as
airlines and military organizations. The current five-level
organizational hierarchy
appears in line with organizational best practice in large
organizations where five levels
typically separate the senior executive and first-level manager.
Though lean, the USPS’s consistently applied management
structure supports and
enables the organization to maintain a focus on its key mission
and objectives.
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 15
We feel we are getting to
the outer limits with
regards to spans of
control. We need to
balance consolidation
with spans of control.
We could be getting
close to “cutting to the
bone.”
USPS Study Participant
Finding: Span of Control is Generally Consistent with Best
Practice
Our review of USPS’s data indicates that span of control at
the USPS is consistent with accepted best practice trends.
However at certain levels (e.g., MPOO/POOM), there are
some variances from best practices.
Research from the Bureau of Labor Statistics supports the
delayering trend, indicating an increase in the spans of
control for front-line supervisors. For example, since 1989,
spans of control have increased by 21 percent for
supervisors within the light manufacturing and consumer
products industries.
Following is a span of control overview at the USPS derived
from data provided by the
organization and our interviews and focus groups:
COO has 11 direct reports (8 Area VPs plus 1 Cap Metro, 1 SVP
operations, 1 VP Labor
Relations)
8 Area Vice Presidents plus 1 Capitol Metro Area head
employees per Area
support staff (about 8
executives per Area) = about 15 direct reports
85 District Managers
ge 8,500 employees per District
-5 MPOOs per District
–5 MPOO/POOMs, possibly
1–3 Plant
Managers, Postmasters for large cities in the District, and
district support staff =
about 10 direct reports
President’s Commission on the United States Postal Service
Management Structure Study
e) Study Findings and Best Practices
Page 16
377 Manager, Post Office Operations (MPOO/POOM)
MPOO/POOM
–100 post offices, excluding
any large city post
offices that report to District Manager
them, some District
Managers insist Postmasters report to the District Manager;
varied approaches
results in direct reports ranging from 0 to 100 depending on
Performance Cluster
27,621 Postmasters
26
Span of Control Trends
If companies reduce the number of management layers and
spans of control excessively, they risk
eliminating valuable leadership development positions and
future leaders. Alternatively, if
companies do not eliminate excessive management layers, they
may lack efficiency and flexibility
to deal with external market changes.
Trend #1: Executives and directors comprise less than three
percent of the total employee
population at all companies.
Trend #2: Profiled companies are reducing the layers of
management and will continue to do so
in the near future.
Trend #3: Managers are responsible for managing a greater
number of direct reports.
Corporate Leadership Council. Management Layers and Span of
Control. Washington: Corporate Executive Board (June 2002).
A 1995 Conference Board survey determined that the
downsizing of middle management caused
managerial spans of control to increase from six in 1990 to an
average of nine or more in 1995.
Additionally, research from the Bureau of Labor Statistics
determined that the average span of
control moved from 9.52 in 1989 to 11.6 in 1998.
Corporate Leadership Council. Management Determining
Effective Spans of Control. Washington: Corporate Executive
Board
(October 2001).
President’s Commission on the United States Postal Service
Management Structure Study
f) Management Structure Design Criteria
Page 17
In the “old days,”
Postmasters had
more accountability
/authority. Now we
feel like we are being
micromanaged. We
can’t hire an
additional person-
now. It’s up to the A-
VP who may not have
personal knowledge
of the situation (e.g.,
long-term leave). We
can’t move people.
This makes it difficult
to develop people.
USPS Study Participant
Management Structure Design Criteria
Criteria for examining organization design and management
structure include, first and
foremost, that the structure should enable accomplishment of
strategies and goals – form
follows function. Next, the design should take advantage of best
practices, including
those that facilitate good governance. Specific organization
design principles addressing
areas such as role clarity, decision-making and accountability,
staff performance,
knowledge sharing, and career progression paths are also
relevant concerns.
We believe the principle of “flexible standardization” should
underpin the optimal design
criteria for application to the USPS so the organization can
become more nimble as it
moves toward implementing the Transformation Plan. Ideally,
autonomy should be
pushed as close to the customer level as is practical, while
preserving the centralized
control necessary to assure the level of standardization and
consistency required to
maximize efficiency.
By “flexible standardization” we mean a management approach
that is as consistent as
possible across the country yet allows flexibility at the A-VP
level through MPOO /
POOM level. For example, we believe a review of specific
responsibilities at the A-VP
and District Manager levels, in conjunction with the metrics
tracked by the new
performance measurement system, will identify some that can
be “safely” delegated
downward. We believe such delegation will enable the
management structure of the
USPS to quickly recognize and act upon opportunities for
additional operating
effectiveness and efficiencies.
We have identified several management structure design
criteria for the USPS. These criteria have been derived from
our review of the USPS Transformation Plan, our
understanding of the organization’s mission and strategic
objectives, our preliminary assessment of the current state
management structure, and a review of prevailing best
practices that could be appropriate for an organization of this
scale. These criteria should serve as a framework for the USPS
to achieve organizational effectiveness.
Suggested management structure design criteria for the USPS
include:
effective response to changes in the organization’s
mission and accommodate fluctuations in day-to-day
operations
consistent delivery of the customer experience in
accordance with predetermined, published standards
President’s Commission on the United States Postal Service
Management Structure Study
f) Management Structure Design Criteria
Page 18
standardization of
processes and programs while allowing for appropriate
differences driven by local
market requirements
ensure that internal
best practices are fully leveraged
customer service,
operations, and strategic or function support to improve talent
development and
promote internal mobility so capable leaders can replace
retirees
in the organization
to enhance customer service
Below we compare the design criteria to the existing
management structure of the
organization:
DESIGN CRITERIA FOR USPS, THIS MEANS…
Strategic and tactical flexibility “Operations” playing a larger
role in strategic decision-making
Empowered operations staff
Allow greater decision-making flexibility
for A-VPs, DMs, MPOO/POOMs, and
Postmasters
Maximizing operating efficiency Explore changes to certain
roles and deployment (e.g., MPOO/POOM)
Active knowledge sharing Deploy more cross-functional teams
and
leverage internal best practices
Defined career paths
Encourage more rotational opportunities
and specifically define paths between
“processing” and “retail” operations
Clear managerial accountability
Continue to push accountability and
decision-making further down into the
organization (e.g., DM freeing up A-VP
to concentrate on strategic issues)
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 19
Recommendations
During the course of this study we uncovered several areas of
opportunity with the
potential to enhance effectiveness and efficiency of the USPS
management structure. We
found significant agreement across the organization that these
are, in fact, the areas that
would benefit from closer examination and action.
In this section of the report, we present four specific
recommendations that link to our
findings:
– Accelerate Rationalization of the
Network – matches the
organization structure to demand, enabling a continuing
reduction in the number
of managers as appropriate.
– Provide Increased Decision-Making
Role for Operations
Managers – recognizes the benefits of the current management
structure while
recommending a greater voice for the Area-VP role as strategy
advisor and
sounding board, possibly through the creation of an Operating
Council.
– Improve Headquarters and Area Staff
Coordination and
Integration with Operations – presents ideas for ensuring that
necessary
coordination and shared service activities are delivered
effectively, enabling a
potential reduction in duplicative staff roles.
– Adopt a Consistent Performance
Cluster Model –
establishes the District Manager as a single point of
accountability for
Performance Clusters and clarifies the MPOO/POOM role and
support
requirements.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 20
Recommendation #1 – Continue to Rationalize the Network
The organization recognizes and has been acting upon the need
to rationalize its
comprehensive network of customer service and processing
facilities in response to
shifting population demographics and changing volumes and
types of mail. Many of the
executives and managers interviewed during the course of this
study expressed hope that
this process will be accelerated, although they well recognize it
is subject to factors far
outside the scope of this study (e.g., political influence).
Rationalization could include both a reduction of the absolute
number of units into which
the organization is divided and a redefinition of the geographic
boundaries of those units.
Thus, rationalization also means a possible reduction in the
number of management
positions and the number of managers needed to staff them, and
the redeployment of
managerial staff from shrinking to growing areas of need.
The clearest opportunities for continued rationalization appear
to exist at three levels:
However, recognize that rationalization of the network at these
levels could affect the
Area management structure as well. We believe it is important
for the Areas to remain
reasonably balanced in size and geographic scope. Otherwise,
the larger Areas could
come to dominate decision-making within Operations and
override legitimate regional
operating differences.
Additionally, continued rationalization of the network could
enable a reduction in the
number of Areas, although such a structural change would result
in the displacement of
Area staff.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 21
Recommendation #2: Provide Increased Decision-Making Role
for
Operations Managers
The vast majority of the organization’s activities and employees
are concentrated within
the purview of the COO. This consolidation of activities within
a unified management
structure enhances both control and accountability. However,
given the magnitude of the
“operations” side of the USPS, such consolidation may
inadvertently diminish the weight
of its voice at the top of the organization.
Without changing the existing A-VP reporting relationship, we
would encourage an
expansion of their role in providing input to strategic decisions.
Many large organizations have established an Operating Council
to ensure that senior
leadership effectively functions as a team bearing collective
responsibility for the success
of the organization. In some respects, an Operating Council
may be thought of as a de
facto Board of Directors for a business, a major business
segment, or a specific function,
providing unified governance and applying collective
experience to the review of
significant decisions. In other respects, an Operating Council
may be considered an
extension of the business, segment, or function head, sharing
responsibility for pursuing
various significant initiatives or implementing large-scale
change.
Effective Operating Councils usually comprise all of the direct
reports of the business
segment or function head, meet monthly, and share
accountability for their collective
performance while continuing to bear responsibility for the
performance of their
individual part of the organization. Of course, the business,
segment, or function head
retains “51% of the vote” on critical issues even while striving
to achieve consensus.
We believe the USPS could benefit from the establishment of a
formal Operating Council
to ensure all key voices are integrated as the organization
manages through the significant
changes that will arise as it pursues implementation of the
Transformation Plan. If
established at the highest level of the organization, such an
Operating Council would
most likely comprise the Postmaster General and all his direct
reports. However, to
increase the strategic input provided by operations, it may
benefit the USPS to include up
to three A-VPs on the Council. In keeping with best practices,
A-VPs could rotate
through the Operating Council annually, thereby providing all
Areas with direct
representation over a three-year period.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 22
No one in Area staff
functions has worked
in a post office for at
least fifteen years;
they don't know what
it's really like down
here today, so they
come up with all
these ideas that don't
make any sense.
USPS Study Participant
Recommendation #3 – Improve Headquarters and Area Staff
Coordination and Integration with Operations
The USPS depends upon staff at multiple levels to work with
managers to collect and evaluate performance data, investigate
and propose potential process improvements, administer the
implementation of new programs, and engage in many other
activities that pertain to running the organization. The various
staff levels interface on a matrix basis, with each other and
with their respective management. This multi-tiered matrix
creates some degree of uncertainty and confusion that is
evident in the duplicate initiatives and competing requests for
information or action that flow through the management
structure. Postmasters in particular feel increasingly hard-
pressed to sift through and prioritize conflicting demands.
District Managers also believe they would benefit from greater
staff coordination.
We believe there is a significant opportunity to more clearly
define staff responsibilities,
identify potential duplication, improve coordination and control
over new initiatives,
and—ultimately—possibly reduce the number of support staff
roles.
Michael Goold and Andrew Campbell, authors of Designing
Effective Organizations:
How to Create Structured Networks, propose a method for
considering organizational
structures. They suggest organizations use two types of tests to
balance the “right
amount of hierarchy, control, and process – enough for the
design to work smoothly but
not so much as to dampen initiative, flexibility, and
networking.” Their Parenting
Advantage Test seems applicable to the USPS. Existing
management structure is a
command and control structure, with a strong matrix overlay.
We believe this test will
provide for better clarity for the Headquarters going forward.
This test involves defining the corporate-level or “parent”
activities that add value to the
entire organization and, therefore, should be allocated to the
corporate center (e.g.,
managing government relations, broadly maintaining key
organizational capabilities) and
evaluating whether the design supports these propositions.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 23
Based on our initial observations, the “Current” column below
represents Headquarters’
role in these best practice activities. Note that our organization
design experience leads
us to conclude that all of these roles are vital to the USPS.
Role Best Practice Description Current Future
Broker
Creates value by acquiring
units/people for less than their
worth and discarding
activities for more than their
worth
Collaborator
Helps units expand size/scope
of activity by supporting
growth initiatives
Director
Helps units improve costs,
quality, or profitability by
setting stretch targets and
providing benchmarks
Liaison
Helps units work together in
ways that might otherwise be
difficult by setting incentives
or centralizing certain
activities
Proprietor Finds ways to exploit central
resources such as brands,
competencies, relationships or
patents across business units
Note: the degree of shading in each circle indicates the degree
to which the role is being
performed or should be performed. The greater the shading, the
greater the role should
be filled.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 24
Every MPOO in the
organization does things
differently. There is little
consistency about the role,
the kind of people who fill
that role, their skill set, or
even how they do what
they do.
I never get help from my
MPOO because he is
always tied up in telecons.
I bet he spends two days a
week feeding the
information monster, so he
can't be out here working
with us.
I think the MPOO's role is
to squeeze us. They never
provide guidance in how to
fix something; they only
point out problems that I
already know about.
USPS Study Participants
Recommendation #4 – Adopt a Consistent Performance Cluster
Model
The USPS would benefit from more consistency within
Performance Clusters, both with
respect to the overall management of the Performance Cluster
and to the discharging of
the MPOO/POOM role.
As noted in the Findings section, some Performance Clusters are
managed on a
collaborative basis wherein the District Manager and Plant
Manager share responsibility.
In many others, one of these two roles serves as a “lead.” We
believe the “lead” model is
superior because it represents a continuation of the unified
management structure that
otherwise prevails across the organization. Establishing such a
“lead” role ensures a
single point of accountability for each Performance Cluster.
Furthermore, if decision-
making is to be pushed to lower levels of the management
structure, such a single point
of accountability will be required to ensure effective control is
preserved through the
alignment of autonomy and accountability.
We suggest that the ‘lead” role in a Performance Cluster
should generally be filled by the District Manager, who
bears responsibility for customer service. The
organization should, however, remain open to allowing
rare exceptions in cases where the local Plant Manager
as an individual has more relevant experience to serve as
“lead.” Nevertheless, we are aware that the Plant
Manager’s primary responsibility is to run processing as
effectively as possible to meet the customer needs
advocated by the District Manager. Thus, these
exceptions should be rare.
A second inconsistency with the Performance Cluster
level of the organization pertains to the MPOO/POOM
role. Even the differing names for this role—MPOO vs.
POOM—reflect this inconsistency. We believe
rectifying this inconsistency by clarifying the role and
standardizing key processes would enable
MPOO/POOMs to function more effectively. They
could more readily anticipate and meet the
organization’s expectations because their role would be
commonly understood. Also, they could more readily
leverage best practices.
The USPS could benefit from two other modifications to
the MPOO/POOM role that should be explored more
fully. (1) MPOO/POOMs generally confront a large
span of control, yet often lack any designated support.
Preliminary indications suggest that MPOO/POOMs
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 25
with such support are able to dedicate more time to working
with their assigned
Postmasters. We believe it would be worthwhile to explore this
observation during the
course of clarifying the MPOO/POOM role. (2) Several District
Managers have called
for the creation of a “senior” MPOO/POOM role in larger, more
complex Performance
Clusters. This role would bear responsibility for addressing the
needs of the most
significant post offices and major operating issues that arise
within their assigned Area.
Another MPOO/POOM in the Performance Cluster could assume
responsibility for the
functional interface with departments such as Finance and HR.
This concept should also
be explored in greater depth when clarifying the MPOO/POOM
role.
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 26
We should be able to close post
offices through attrition –
consolidation efforts should result
in better service being provided;
flexibility is needed.
USPS Study Participant
Capitalize on Existing USPS Strengths
In addition to the above recommendations, we
have identified a number of operational strengths
that are facilitated by the existing USPS
management structure. These positive attributes
should be preserved and leveraged as any future
structural changes are implemented:
—The broad cross-section of
executives and
managers interviewed for this study were found to be
universally committed to
the USPS and the transformation effort and keenly aware of the
significant
challenges faced by the organization. As discussed in the
Findings section,
achieving a clear line of sight between each individual and the
organization’s
strategic goals is critical to success. Otherwise, management
would be working at
cross-purposes in pursuit of misaligned goals. The relatively
flat management
structure currently in place has fostered tangible objectives,
performance metrics,
and performance targets for each management role that visibly
link to the USPS’s
objectives and provide a remarkably clear line of sight.
— As noted by the
Corporate
Leadership Council (Determining Effective Spans of Control,
October 2001), the
1990’s demonstrated a trend towards reorganizing corporate
design and structure.
Companies started flattening or “delayering” to reduce the
hierarchy within the
organization. They decreased the number of middle managers
and increased
spans of control of remaining managers. Four primary reasons
are cited for this
expansion:
processes or
assets
-
level
execution
-party providers
Clearly some of these factors have influenced the USPS in
moving toward a lean
organization.
—The streamlined organization
structure with few
levels of management has enabled the scope of each
management role to be
broadly defined and therefore offer challenge and flexibility to
executives and
managers. The USPS has traditionally grown its leaders from
within due to the
unique nature of the organization. The existing management
structure has
allowed employees to move from less demanding to more
complex positions as
President’s Commission on the United States Postal Service
Management Structure Study
g) Recommendations
Page 27
From a national systems
perspective, communication works
well—8 A-VPs meeting with
Donohoe, lots of input. They
discuss implementation issues and
then let our people know about it.
At local levels, the approaches are
diverse. With an organization this
large, it requires pressure to keep
things aligned through a chain or
line of command.
USPS Study Participant
their individual skills develop while remaining in the same type
of role simply by
moving across geographies.
It is worth noting that the Transformation Plan observes: “The
challenge to assure
continuity of leadership has never been more important than it
is today.
Approximately 55 percent of Poster Service officers and senior
executives and 36
percent of managers will become eligible to retire over the next
five years.”
—The
streamlined organization structure also
promotes sharing information and
leveraging best practices because large
groups of managers occupy the same
role, confronting similar challenges
while striving to perform well against
identical metrics. Managers are able to
exchange relevant information and best
practices because they understand the
role they share with their peers.
Promoting such free transit of
information is essential because there are
no true comparators to the USPS that
could serve as ready sources of best practices.
—Despite the open flow of
information described
above, the geographic basis of the management structure
enables the USPS to
promote internal competitiveness against NPR metrics and
thereby drive USPS
performance. Because so many individuals occupy the same
role measured by the
same metrics, their performance can be readily arrayed for
periodic comparison.
As we heard often during our interviews, “No one wants to be
last.”
********
In conclusion, Unisys/Watson Wyatt believes that the overall
management structure is
appropriate with some areas of opportunity. The four
recommendations put forth in this
report, with proper implementation and oversight, can enhance
the overall operating
effectiveness and efficiency of the USPS. We respectfully urge
the USPS to more
closely examine the merits and viability of these
recommendations.
h) Appendices
Page 28
President’s Commission on the United States Postal Service
Management Structure Study
Appendix A – Glossary of Terms
Area, Area Vice President
(A-VP)
The USPS presently divides the country into eight Areas.
(A ninth, large geographical unit functions like an Area
and has been treated as such for purposes of this report.)
Each of the eight Areas is headed by an officer-level
Area Vice President who bears responsibility for postal
operations within that geographical area.
Best Practice Practices, programs, or policies, widely
implemented by
successful organizations that are coping with similar
conditions and facing similar opportunities or challenges.
Best practices are a valuable source of insight, though not
a prescriptive decision-making guide.
Career Path A predetermined path through succeeding
positions—
generally of increasing responsibility and authority—that
has been identified as a logical progression for the
development of employee skills and leadership ability.
Command and Control The philosophy underlying an
organization structure that
is designed to reinforce the consistent, efficient execution
of strategic initiatives established at the very top of the
organization. Command and control organizations are
very hierarchical and tend to discourage the upward flow
of input on strategy. However, they excel at standardizing
processes across a broadly dispersed organization.
Chief Operating Officer
(COO)
The Chief Operating Officer (COO) of the USPS is
presently responsible for overseeing nationwide field
operations and Headquarters Operations and Labor
Relations departments. The COO reports directly to the
Postmaster General.
Drivers (e.g., of strategy,
organization design)
A driver represents a significant force that helps shape or
determine various aspects of an organization’s existence.
Drivers may represent material opportunities, challenges,
resource constraints, or other factors.
Bold words are defined elsewhere in the Glossary of Terms
h) Appendices
Page 29
President’s Commission on the United States Postal Service
Management Structure Study
District, District Manager The USPS presently divides each
postal Area into a
number of Districts. Presently there are 85 Districts
nationwide, each headed by a District Manager who
reports to the respective A-VP. District Managers are
responsible for overseeing operations for all post offices
within their District. (Please see Performance Cluster
for additional information.)
Focus Group To facilitate information gathering, a Focus Group
may
be convened whereby several individuals who typically
occupy the same role within an organization are brought
together and asked certain questions. Often, the group
will amplify what a single individual may say and
thereby provide more detailed insight and understanding.
Job Responsibilities and
Scope
Jobs—or roles—are established to help an organization
complete certain activities or tasks. Job responsibilities
define those tasks and desired outcomes, whereas job
scope delineates the outer limit of those responsibilities.
Line of Sight Employees typically ask three questions: (1)
What is the
organization trying to accomplish? (2) What am I
expected to do that contributes to achieving the overall
objectives? (3) How will I be rewarded? Line of sight
refers to the degree to which the answers to these three
questions are linked. In organizations with a strong line
of sight, employees clearly understand how their own
activities support the organization’s goals, and how
actual results will determine their individual rewards.
Matrix A matrix is a set of relationships across an organization,
wherein an individual employee reports to more than one
manager. Some degree of conflict is inherent in a matrix
organization structure.
MPOO (Manager, Post
Office Operations)
Reporting to each District Manager is a small number of
Managers, Post Office Operations. These MPOOs, also
known as POOMs in some sectors of the USPS, oversee
an average of seventy post offices within their respective
districts.
h) Appendices
Page 30
President’s Commission on the United States Postal Service
Management Structure Study
Organization Design
Criteria
Organization design criteria represent an organization’s
ideal characteristics and are developed in response to the
various drivers that have shaped that organization. The
optimal organization design best promotes the realization
of those ideal characteristics.
Performance Cluster The USPS presently divides each Area into
a number of
geographically-defined Districts that are also known as
Performance Clusters. For all intents and purposes,
Districts and Performance Clusters represent the same
geographic boundaries, operating facilities, and staff.
POOM See MPOO
Postmaster Perhaps the most familiar management role within
the
USPS to the general public, the Postmaster is responsible
for all aspects of the daily operation of a specific postal
facility. The role varies widely in scope, ranging from
small offices where the Postmaster may be the only
regular employee to large city offices where the
Postmaster may manage a very large staff and even
oversee small post offices nearby. Large city
Postmasters may report directly to a District Manager
rather than an MPOO/POOM.
Span of Control Span of Control indicates the number of
individuals that
report to a specific manager.
h) Appendices
Page 31
President’s Commission on the United States Postal Service
Management Structure Study
Appendix B – Interview Guide
United States Postal Service
Interview Guide
June 2003
Thank you for meeting with me as we review the USPS
management structure in support
of the President’s Commission on the United States Postal
Service. Your own responses
to the following questions will remain confidential, although the
responses from all
interviewees will be synthesized and integrated into our report
findings.
Strategic Direction
1. As an organization, what is the USPS trying to achieve? What
will be the key
organizational drivers over the next three-to-five years?
2. What are the barriers/challenges that may be hindering the
performance of the
organization?
3. What are the greatest risks that need to be mitigated?
4. What are the internal implications of these challenges and
risks?
5. What strengths does the current organization bring toward
meeting these future
challenges?
Organization Structure
6. Do you feel the organization is structured effectively to drive
the USPS mission and
vision? Why or why not?
7. How are key decisions made within the organization (i.e.,
how well are decision-
making and autonomy aligned?)
8. Are there informal ways that work gets accomplished within
the organization?
9. How does the physical structure (e.g., geographic spread)
affect how things are done?
h) Appendices
Page 32
President’s Commission on the United States Postal Service
Management Structure Study
Roles
10. Tell me about your current role and responsibilities.
11. What does your role specifically provide to the level above
it and the level below it in
the organization (e.g., content expertise, decision-making
support)?
12. How do you interact with your peers who occupy the same
role (e.g., role
interdependency)?
13. Do you interact with other managerial roles across
boundaries? If so, how?
14. In your opinion, is there role clarity across the
organization?
Culture
15. What workplace behaviors are promoted and reinforced?
16. How effective is communication upwards, downwards, and
across the organization?
Close
15. Is there anything else you would like to add regarding the
USPS management
structure?
h) Appendices
Page 33
President’s Commission on the United States Postal Service
Management Structure Study
Appendix C – Focus Group Guide
United States Postal Service
Focus Group Guide
June 2003
Thank you for meeting with me as we review the USPS
management structure in support
of the President’s Commission on the United States Postal
Service. We have brought you
together to solicit your views on various aspects of structure.
We would like everyone to
participate in the discussion, recognizing there are no “right” or
“wrong” answers. We
also ask that you keep each other’s opinions confidential—
what’s shared in this room
stays in this room.
I will be taking notes during our discussion, but we will not
attribute any comments to
specific individuals. The notes from today will be combined
with input from others in
the organization and integrated into our report findings.
Before we begin, please let me know how long you have been
with the USPS.
Strategic Direction
1. As an organization, what is the USPS trying to achieve?
2. What are the barriers/challenges that may be hindering the
performance of the
organization?
3. What are the internal implications of these challenges and
risks?
Organization Structure
4. Do you feel the organization is structured effectively to drive
the USPS mission and
vision? Why or why not?
5. How are key decisions made within the organization (i.e.,
how well are decision-
making and autonomy aligned)?
6. Are there informal ways that work gets accomplished within
the organization?
7. How does the physical structure (e.g., geographic spread)
affect how things are done?
h) Appendices
Page 34
President’s Commission on the United States Postal Service
Management Structure Study
Roles
8. Tell me about your current role and responsibilities.
9. What does your role specifically provide to the level above it
and the level below it in
the organization (e.g., content expertise, decision-making
support)?
10. How do you interact with your peers who occupy the same
role (e.g., role
interdependency)?
11. Do you interact with other managerial roles across
boundaries? If so, how?
12. In your opinion, is there clarity of roles across the
organization?
Culture
13. What workplace behaviors are promoted and reinforced?
14. How effective is communication upwards, downwards, and
across the organization?
Close
15. Is there anything else you would like to add regarding the
USPS management
structure?
Functionalist theoretical perspective
Conflict theoretical perspective
Critical theoretical perspective
Interactionist theories
race
ethnicity
racism
minority group
dominant group
stacking
sexism
Ideological sexism
Institutional sexism
Feminist theoretical perspective
social class
social stratification
economic capital
social capital
cultural capital
power
ADA - Americans with Disabilities Act
disability
masters athletes
religion
deviance - is the recognized violation of cultural norms.
Deviance is universal. It exists in all societies. Deviance is
variable. Any act or person can be lableled deviant. Deviance
is political. Norms (including laws) reflect the interests of
powerful members of society.
deviant -
Social foundations of deviance: Deviance is shaped by society.
Deviance varies according to cultural norms and norms change.
People become deviant as others define them that way. We all
violate norms at one time or another; what matters is how others
perceive, define and respond to it. How societies set norms and
how they define rule breaking both involve social power.
Functions of deviance - 4 essential functions. 1. Affirms
cultural values and norms. 2. Responding to deviance clarifies
moral boundaries. 3. Responding to deviance brings people
together, 4. Deviance encourages social change.
overconformity
underconformity
violence in sport
on-field violence in sport
off-field violence
PEDS - Performance enhancing drugs
prescription drugs and over the counter drugs
stimulants
anabolic steroids
doping (defined on page 332)
eating disorders: anorexia nervosa, bulimia
compulsive exercise
hazing
gambling
* #-:-It':g - --E--4{=17Fr
''-:..# +a:l' #a...-- _- **r*r* o
.-:-
Sociology 208lPE 2Og
Tuesday, February 19, 2013
Discussion Question
Although many barriers have falten, name at teast three barriers
that remain in
achieving equality forwomen in the sport world.
'l/
Potential Essay Questions for the Midterm - Soc 208/pE208
winter 2013
1. How do sports activities, athletes, and athletic competitions
mirror the values
of American society?
2. Do you think athletes should be "heroes" in modern-day
societies? What do
think are the characteristics of a hero?
3. How does the socialization process help a person learn about
spofts and
sports participation? Give some examples, based upon the role
which the
following agents play: parents, peers, the school, the
community, and the
media.
4. What are some of the reasons parents encourage their
children to participate
in spofts? What do you think are positive reasons and what are
negative
reasons?
5. Do you think that sports "builds character"? What does this
phrase mean to
you, and how can it be applied to youth sports in particular?
6. In what ways are spotts a part of the entertainment business?
Why does
ESPN place the word "enteltainment" before the word "spolts"
in its title? Do
you think this is significant? Why or why not.
7. Why is the connection between sports and the mass media so
important?
What are some of the positive and some of the negative aspects
of this
connection, in your view?
February 5,2Ot3
Answer the following questions
· How race and ethnicity are defined.
· How sport is both a positive and negative force for promoting
racial and ethnic equality in society.
· Discuss the history of women's participation in sport before
the 1850's. What were the barriers?
· How Title IX affected women's sport participation.
· How increased sport participation by females has affected
contemporary society.
· How does social class affect access or present barriers to
participation in sport?
· Identify the different social classes in the U.S. and typical
characteristics of each class. Discuss the opportunities for
social mobility through sport.
· Develop a list of the three major legislative acts that were
passed to protect the civil rights of minorities, women, and the
physically or mentally disabled. Include the dates these laws
were passed and discuss the impact of these laws on sports
participation (for athletes and other participants).
· Describe the interrelationships between sport and religion.
· How do athletes, coaches, sport organizations and institutions
use religion in sport?
· Describe some areas of conflict between religion and sport.
· Identify issues related to the use of performance enhancing
drugs in sport. How does doping impact athletes and fans of
major league sports such as football, baseball, basketball or
hockey?
· Violence is highly visible in American sport. Discuss
violence on the field and off the field and how violence can be
reduced in the future.

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Does sport build character

  • 1. Page 110 Discussion questions . What is character? . Does sport build character? Two Types of Character to consider: L. Social character= Teamwork, loyalty, work ethic, and perseveranGe 2. Moral character: Honesty, fairness, integrity, and responsibility Where do you think individual-sport athletes, team-sport athletes, and nonathletes rank in each of these two categories? Describe the differences and why these differences exist. How do you know? 1
  • 2. United States Postal Service Management Structure Study July 8, 2003 Submitted to: President’s Commission on the United States Postal Service President’s Commission on the United States Postal Service Management Structure Study a) Table of Contents Page 2 Section Page Number a) Table of Contents 2 b) Executive Summary 3 c) Assignment Objectives and Background 5 d) Research Methodology 7 e) Study Findings and Best Practices 9 f) Management Structure Design Criteria 17 g) Recommendations 19 h) Appendices 28 a. Glossary of Terms
  • 3. b. Interview Guide c. Focus Group Guide President’s Commission on the United States Postal Service Management Structure Study b) Executive Summary Page 3 Executive Summary In the nearly two years since we designated the Service’s transformation efforts and long-term outlook as a high-risk area, it has experienced financial difficulties and struggled to fulfill its mission of providing high-quality universal service while remaining self-supporting… One of the key challenges of the Service’s transformation will be realigning its infrastructure and workforce to support its business model for the 21st century. Major Management Challenges and Program Risks (GAO Report, January 2003) Unisys/Watson Wyatt is pleased to submit our study of the
  • 4. management structure of the United States Postal Service (USPS). Highlights of our findings include: – consisting of Headquarters, Functional Staff, and Operations – is appropriate for an organization that is committed to operational excellence. The mission of the USPS is to deliver standard, regulated offerings on a massive scale in a manner that is dependable, consistent, and cost effective. Some opportunity exists for rebalancing tasks between the staff groups and the operating organization; however, this is not a major impediment to managing the organization. although there is a real opportunity to continue to rationalize the network. Few levels separate the front-line manager and the top USPS executive. This leanness is consistent with contemporary best practice that suggests flattening the organization to minimize bureaucratic decision-making and thereby enhance responsiveness and flexibility. to do and the results they are expected to produce.
  • 5. organization’s objectives and how they align with it. boundaries. The ability to integrate information in ways that enhance implementation is a major design principle for an organization driven to achieve by operational excellence. For the most part, information moves within the USPS based on well- established relationships and clear roles. We believe the USPS should preserve and, in some cases, continue to build upon these and other existing strengths that characterize the organization’s existing management structure. President’s Commission on the United States Postal Service Management Structure Study b) Executive Summary Page 4 Notwithstanding the organization’s strengths that are identified in our findings, in this report we present four specific recommendations for
  • 6. improvement that could enhance effectiveness and efficiency: – Accelerate Rationalization of the Network – matches the organization structure to demand, enabling a continuing reduction in the number of managers as appropriate. – Provide Increased Decision-Making Role for Operations Managers – recognizes the benefits of the current management structure while recommending a greater voice for the Area-VP role as strategy advisor and sounding board, possibly through the creation of an Operating Council. – Improve Headquarters and Area Staff Coordination and Integration with Operations – presents ideas for ensuring that necessary coordination and shared service activities are delivered effectively, enabling a potential reduction in duplicative staff roles. – Adopt a Consistent Performance Cluster Model – establishes the District Manager as a single point of
  • 7. accountability for Performance Clusters and clarifies the MPOO/POOM role and support requirements. President’s Commission on the United States Postal Service Management Structure Study c) Assignment Objectives and Background Page 5 Assignment Objectives Unisys/Watson Wyatt was retained by the President’s Commission on the United States Postal Service (the Commission) in June 2003 to independently study and evaluate the management structure of the United States Postal Service (USPS) and assess whether the existing structure can be redesigned to facilitate more effective and efficient organizational performance. The key questions addressed in our research and analysis include: rent management structure enable the USPS, over the next three to five
  • 8. years, to achieve the mission, vision, strategic objectives, and business imperatives outlined in its Transformation Plan issued in April 2002? What structural changes, if any, should be explored further? (We recognize that the USPS is considering alternative models. Our review of the existing management structure is not based on any of these models.) the USPS’s management structure design? appropriate number of management levels given the organization’s size, geographic spread, scope and diversity of services, day-to-day operational imperatives, and culture? achievement of both strategic and operational objectives? of management levels, spans of control, accountability, levels of authority) promote the most effective decision-making possible? adversely impact effective and efficient organizational performance?
  • 9. This report addresses the above questions. We present the research methodology employed, the results of our analysis, and a series of recommended modifications to the existing management structure, supported by available published “best practice” data. Given the short timeframe available to conduct the evaluation, this report represents a high-level assessment and theoretical examination of fundamental improvements that could be achieved through potential restructuring changes to the existing management structure as of June 2003. Please note that Unisys/Watson Wyatt were not requested to incorporate benchmark management structure data or develop implementation plans for the recommendations put forth in this report. President’s Commission on the United States Postal Service Management Structure Study c) Assignment Objectives and Background Page 6 Background Executive Order No. 13278 established the President’s Commission on the United States Postal Service (the Commission) for the purpose of examining
  • 10. the state of the United States Postal Service, and preparing and submitting a report articulating a proposed vision for the future of the USPS. In early June 2003, the Commission sought specialized assistance from Unisys/Watson Wyatt in examining and assessing the existing management structure in order to identify possible areas of opportunity to improve the USPS’s productivity, reduce costs, enhance customer service, and—overall—more effectively support the mission of the USPS. In order to facilitate the rapid development of an objective, independent assessment by Unisys/Watson Wyatt, the USPS was requested to provide immediate, unencumbered access to various executives and managers who would be representative of the key levels of its management structure and geographic service areas. President’s Commission on the United States Postal Service Management Structure Study d) Research Methodology Page 7 Research Methodology
  • 11. Because of the compressed, three-week timeline for collecting information, conducting analysis, and developing recommendations, our research was limited to gathering qualitative data through a series of interviews and focus groups conducted at the USPS Headquarters and across a representative sampling of geographic Areas (Northeast, East, Great Lakes, and West) and Performance Clusters within those Areas. Approximately 80 executives and managers were randomly selected for in-person and teleconference interviews or focus groups representing key levels of the management structure under study, including: -VP) (See Appendix A—Glossary of Terms for a description of each of these roles.) Additional information was gathered through an interview with the Senior Vice President of Human Resources as well as data collection sessions with Field Support, Strategic Planning, and an Area Staff Representative. Finally, we conducted a number of on-site visits to the Postal Services Headquarters, Area Headquarters (East, Northeast, Great
  • 12. Lakes), Plants (Northern Virginia, Philadelphia), and five post offices (Northern Virginia, Great Lakes) to gain a perspective on the role the management structure plays in day-to- day operations of the larger enterprise. Unisys/Watson Wyatt initially interviewed Pat Donohoe, COO, at the Postal Service Headquarters in Washington, D.C. to discuss the current management structure and allow Mr. Donohoe to share his thoughts on any barriers and facilitators inherent in the existing structure. We also used this time to obtain an understanding of the organizational challenges currently being faced within the context of the Transformation Plan. Subsequently, between June 12th and June 20th, we conducted a series of on-site and teleconference interviews and focus groups across the various geographies and management levels mentioned above. Interviews typically ran one hour, while focus group sessions ran from 60 minutes to two hours and included, on average, eight employees. In all, we conducted 12 interviews and 10 focus groups. Topics centered on the USPS’s strategic objectives and management structure (including such areas as spans of control, management level, job scope and responsibilities), role clarity, levels of authority, decision-making, and communication. (See Appendices B and C for a copy of the interview and focus group guides.)
  • 13. President’s Commission on the United States Postal Service Management Structure Study d) Research Methodology Page 8 Interviewees and focus group participants were candid and forthcoming on issues such as productivity, customer service, management structure, and the challenges arising from the existing framework of legal constraints and union agreements. Our data collection concluded with a follow-up teleconference with Mr. Donohoe to share preliminary findings and gain additional insight into the data collected. Simultaneous to our qualitative data collection exercise, we reviewed available published management and organization behavior research literature and gathered relevant “best practice” information on issues related to management structure. This best practice information, combined with our qualitative data and subject matter expertise, served as the foundation for our analysis and assessment of the USPS’s existing management structure. We identified key performance drivers and critical management structure design criteria in the context of the organization’s mission, vision, and
  • 14. strategic objectives as laid out in the Transformation Plan. We applied the structural design evaluation criteria to the existing management structure and identified specific areas of opportunity we believe could help the USPS achieve its mandate over the next three to five years. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 9 Discussion of Study Findings Because of its mission, governance structure, scale of operations, geographic scope, and history, the USPS is a unique organization operating under unique constraints (including labor contracts, legal limitations, etc.). Consequently, there are no “true” comparator organizations that can serve as a valid, comprehensive benchmark source. The USPS is distinctive, in part, due to its multiple stakeholders: Congress, U.S. taxpayers, mass mailers. The USPS must reconcile the often conflicting demands of these groups to deliver on its mission. The management structure of the USPS must both address the
  • 15. needs of these varying constituents and manage to its overall goals and objectives ─ providing universal access at the lowest possible price. Although the USPS has evolved over recent years (e.g., the relatively recent effort to enhance the “people management” skills of its managers), it nevertheless largely remains structured as a command-and-control organization. We acknowledge the strength of centralized decision-making in driving standardization and consistency in order to maximize operating efficiency for such a vast organization. Included below are our key findings: Finding: USPS Management Structure Basically Sound From our perspective, the current management structure has been designed to focus on setting the strategic direction, managing daily operations, and providing requisite internal support. The Headquarters staff bears primary responsibility for determining the strategy and providing organizational oversight. Operations are primarily consolidated under the Chief Operating Officer (COO), with the exception being the myriad program directives run through both Headquarters and Area staff functions in various combinations. Individuals across all management levels highlighted several critical factors unrelated to management structure that will be key in determining the organization effectiveness of
  • 16. the USPS, such as labor agreements and legal constraints. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 10 This organization chart represents our understanding of current managerial relationships: Management fundamentally follows a command and control structure with significant policy and operational decisions made at Headquarters. The “Field” (all organizational components outside of Headquarters) is charged with implementation, but is managed within relatively narrow constraints. In essence, Headquarters controls the “what,” and the Field controls the “how.” All operations (i.e., the collection, processing, and delivery of mail) are accountable to and managed by the COO, which ensures unified management responsibility. Descending the levels of the management structure below the COO, the organization is organized geographically in ever-smaller units.
  • 17. The Area Vice President (A-VP) position serves as the critical control point for quickly and consistently disseminating organizational directives into nine geographic entities. Management levels within each Area are also organized on a geographic basis. The impact of this design is to maximize operational consistency and achieve economies of scale. Office of the Postmaster General COO CFO SVP HR CMO Operations Area VP District Manager District Manager Plant Manager Area Staff
  • 18. MPOO Plant Manager MPOO Staff Postmaster Postmaster Staff Staff Staff Staff PERFORMANCE CLUSTERS STRATEGY and SUPPORT OPERATIONS Etc. Etc. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 11 In our review, we found a number of organization design “best practices” evident to some degree within the USPS management structure including: Best Practices USPS Examples Delayering of the organization levels
  • 19. Elimination of some levels and roles in recent years Clarity among managerial roles New performance measurement system that is beginning to cascade through the management structure Matrix relationships to handle growing organizational complexity Interface among Headquarters and Area functional staff Integration of accountability of processing and retail responsibility further down in the organization Creation of “lead” role in some Performance Clusters Given the magnitude and importance of operations to the USPS, it appears that the “operations side” of the organization may be under-represented in the development of key strategies and new programs. The “processing” and “customer service” sides of operations are integrated at the Performance Cluster level. However, there are at least two operating models at this level that provide for this integration inconsistently:
  • 20. Lead Model Typically the District Manager fills the lead role and is held accountable for all aspects of the cluster performance and management. Occasionally, the Plant Manager fills this role. Partnership Model The District Manager and Plant Manager partner as peers in managing all aspects of customer service and operations respectively. Under this model, there is no single point of accountability for a Performance Cluster. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 12 We should really take the time to work out the
  • 21. kinks out of the programs first. Don’t worry about being first. Worry about being accurate. USPS Study Participant Each POOM oversees anywhere from 75 to 125 post offices. There are Executive POOMs and about 20 non-executive POOMs in the Region. Many operate with no staff. POOMs are kept very busy, always on the go. This is a significant job, with many day-to-day fires to be put out in addition to the administrative component and keeping the postmasters aligned around the strategy. USPS Study Participant Finding: MPOO/POOM Lacks Clarity and Consistency The MPOO/POOM role is important for program and resource coordination and integration. It is the first level of response when issues are escalated from the front line (post office level). However, our review found that the role is an area identified as needing study and improvement. For example:
  • 22. organization is inconsistent – in an organization characterized by standardized approaches, the MPOO/POOM role is an exception to the norm. Difference is not necessarily bad, but the feedback we collected suggests there is lack of clarity in the organization as to what defines the role and what outcomes it is expected to produce. is high compared to best practice standards. of support provided to the position, ranging from an adequate level to no support. Finding: Alignment Opportunities – Communication and Directives from Staff Functions Cause Confusion The clean “command and control” management approach of the USPS cascades strategy and goals from the top into the organization to lower management levels for implementation. However, Postmasters frequently receive conflicting, duplicative, or competing directives from staff functions in Headquarters and Areas. This causes confusion and negates the effectiveness and efficiencies required of an operational effectiveness model. To minimize the drag caused by this inefficiency, staff groups need to clearly align their initiatives and programs with overall organization strategies and ensure that requests and requirements placed on operating units are coordinated and vetted for impact prior to launch. In
  • 23. some cases, a staff function that exists at both Headquarters and in Areas provide different messages, suggesting a need for better coordination within the functions. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 13 We have reduced the employee population by roughly 60,000 over the past few years. I believe a great line of sight exists from Headquarters down through the Areas and Districts. USPS Study Participant Finding: USPS Has Clear Line of Sight The drivers of operational excellence for an organization like the USPS are uniformity and consistency, repeatable streamlined processes, rapid information transfer, cost efficiencies, and the capacity to execute. To manage an
  • 24. organization in light of these drivers, it is critical to establish and maintain clear “line of sight” – meaning that all employees understand the organization’s objectives, their individual roles and responsibilities, and how they are performing against them. The existing management structure consists of Headquarters, functional staff, and operations. This approach is uniformly applied across a huge organization allowing for consistent messages about strategy, performance expectations, and tactics. As these messages are communicated and reinforced, they produce a clear line of sight across all levels of management from individual postmasters to the Postmaster General. We found a striking similarity in the understanding of organizational challenges and potential solutions to address these issues among managers and executives across various levels and geographies. General themes we uncovered include: People management is the bigger challenge (labor issues, etc.). functions and Area representatives. decision-making. In our experience, it is rare to find an organization of such size that has achieved this degree of consensus across differing management layers.
  • 25. Furthermore, our research indicates the crucial role that line of sight can play in an organization’s success. The findings of Watson Wyatt’s WorkUSA® 2002 study show organizations that achieve superior line of sight have Total Return to Shareholder levels that are four times higher than those of organizations with poor line of sight. (Total Return to Shareholder may be viewed as a proxy measure of economic value generation, which in turn reflects operating effectiveness and efficiency.) Watson Wyatt WorkUSA® 2002 President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 14 Finding: USPS Management Has a Lean Structure Given the size of the USPS organization, we found the management structure to be extremely lean. There are few levels of management overall and the number of managers as a percentage of total USPS employment is similar to other production- driven organizations, such as light manufacturing and warehousing operations.
  • 26. The USPS deserves credit for the actions it has taken in this regard. As noted in the USPS 2001 Annual Report: “We restructured our organization to bring more focus to priorities and the core business. Changes in our headquarters and field organization are enabling us to better serve the American people by establishing a leaner management structure.” We knew we had to take some strong steps. We did. They included sweeping organizational changes that started at the top when we reduced the number of officers by 20 percent. We eliminated 800 Headquarters positions. We realigned our field management structure, eliminating 20 percent of our Area offices. Postmaster General John Potter testimony to Senate Subcommittee, September 27, 2002. The senior management spans of control (A-VP and below) appear to be in line with best practices (see Span of Control Data following). However, within the Performance Clusters, we found the span of control to exceed best practice ranges.
  • 27. Overall, the current management structure is similar to organizations with well-defined missions, large employee populations, and geographically- dispersed operations, such as airlines and military organizations. The current five-level organizational hierarchy appears in line with organizational best practice in large organizations where five levels typically separate the senior executive and first-level manager. Though lean, the USPS’s consistently applied management structure supports and enables the organization to maintain a focus on its key mission and objectives. President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 15 We feel we are getting to the outer limits with regards to spans of control. We need to balance consolidation with spans of control. We could be getting close to “cutting to the bone.”
  • 28. USPS Study Participant Finding: Span of Control is Generally Consistent with Best Practice Our review of USPS’s data indicates that span of control at the USPS is consistent with accepted best practice trends. However at certain levels (e.g., MPOO/POOM), there are some variances from best practices. Research from the Bureau of Labor Statistics supports the delayering trend, indicating an increase in the spans of control for front-line supervisors. For example, since 1989, spans of control have increased by 21 percent for supervisors within the light manufacturing and consumer products industries. Following is a span of control overview at the USPS derived from data provided by the organization and our interviews and focus groups: COO has 11 direct reports (8 Area VPs plus 1 Cap Metro, 1 SVP operations, 1 VP Labor Relations) 8 Area Vice Presidents plus 1 Capitol Metro Area head employees per Area
  • 29. support staff (about 8 executives per Area) = about 15 direct reports 85 District Managers ge 8,500 employees per District -5 MPOOs per District –5 MPOO/POOMs, possibly 1–3 Plant Managers, Postmasters for large cities in the District, and district support staff = about 10 direct reports President’s Commission on the United States Postal Service Management Structure Study e) Study Findings and Best Practices Page 16 377 Manager, Post Office Operations (MPOO/POOM) MPOO/POOM –100 post offices, excluding any large city post offices that report to District Manager
  • 30. them, some District Managers insist Postmasters report to the District Manager; varied approaches results in direct reports ranging from 0 to 100 depending on Performance Cluster 27,621 Postmasters 26 Span of Control Trends If companies reduce the number of management layers and spans of control excessively, they risk eliminating valuable leadership development positions and future leaders. Alternatively, if companies do not eliminate excessive management layers, they may lack efficiency and flexibility to deal with external market changes. Trend #1: Executives and directors comprise less than three percent of the total employee population at all companies. Trend #2: Profiled companies are reducing the layers of management and will continue to do so in the near future. Trend #3: Managers are responsible for managing a greater
  • 31. number of direct reports. Corporate Leadership Council. Management Layers and Span of Control. Washington: Corporate Executive Board (June 2002). A 1995 Conference Board survey determined that the downsizing of middle management caused managerial spans of control to increase from six in 1990 to an average of nine or more in 1995. Additionally, research from the Bureau of Labor Statistics determined that the average span of control moved from 9.52 in 1989 to 11.6 in 1998. Corporate Leadership Council. Management Determining Effective Spans of Control. Washington: Corporate Executive Board (October 2001). President’s Commission on the United States Postal Service Management Structure Study f) Management Structure Design Criteria Page 17 In the “old days,” Postmasters had more accountability /authority. Now we feel like we are being micromanaged. We can’t hire an additional person- now. It’s up to the A-
  • 32. VP who may not have personal knowledge of the situation (e.g., long-term leave). We can’t move people. This makes it difficult to develop people. USPS Study Participant Management Structure Design Criteria Criteria for examining organization design and management structure include, first and foremost, that the structure should enable accomplishment of strategies and goals – form follows function. Next, the design should take advantage of best practices, including those that facilitate good governance. Specific organization design principles addressing areas such as role clarity, decision-making and accountability, staff performance, knowledge sharing, and career progression paths are also relevant concerns. We believe the principle of “flexible standardization” should underpin the optimal design criteria for application to the USPS so the organization can become more nimble as it moves toward implementing the Transformation Plan. Ideally, autonomy should be pushed as close to the customer level as is practical, while preserving the centralized control necessary to assure the level of standardization and consistency required to
  • 33. maximize efficiency. By “flexible standardization” we mean a management approach that is as consistent as possible across the country yet allows flexibility at the A-VP level through MPOO / POOM level. For example, we believe a review of specific responsibilities at the A-VP and District Manager levels, in conjunction with the metrics tracked by the new performance measurement system, will identify some that can be “safely” delegated downward. We believe such delegation will enable the management structure of the USPS to quickly recognize and act upon opportunities for additional operating effectiveness and efficiencies. We have identified several management structure design criteria for the USPS. These criteria have been derived from our review of the USPS Transformation Plan, our understanding of the organization’s mission and strategic objectives, our preliminary assessment of the current state management structure, and a review of prevailing best practices that could be appropriate for an organization of this scale. These criteria should serve as a framework for the USPS to achieve organizational effectiveness. Suggested management structure design criteria for the USPS include: effective response to changes in the organization’s mission and accommodate fluctuations in day-to-day operations
  • 34. consistent delivery of the customer experience in accordance with predetermined, published standards President’s Commission on the United States Postal Service Management Structure Study f) Management Structure Design Criteria Page 18 standardization of processes and programs while allowing for appropriate differences driven by local market requirements ensure that internal best practices are fully leveraged customer service, operations, and strategic or function support to improve talent development and promote internal mobility so capable leaders can replace retirees in the organization to enhance customer service
  • 35. Below we compare the design criteria to the existing management structure of the organization: DESIGN CRITERIA FOR USPS, THIS MEANS… Strategic and tactical flexibility “Operations” playing a larger role in strategic decision-making Empowered operations staff Allow greater decision-making flexibility for A-VPs, DMs, MPOO/POOMs, and Postmasters Maximizing operating efficiency Explore changes to certain roles and deployment (e.g., MPOO/POOM) Active knowledge sharing Deploy more cross-functional teams and leverage internal best practices Defined career paths Encourage more rotational opportunities and specifically define paths between “processing” and “retail” operations Clear managerial accountability Continue to push accountability and decision-making further down into the
  • 36. organization (e.g., DM freeing up A-VP to concentrate on strategic issues) President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 19 Recommendations During the course of this study we uncovered several areas of opportunity with the potential to enhance effectiveness and efficiency of the USPS management structure. We found significant agreement across the organization that these are, in fact, the areas that would benefit from closer examination and action. In this section of the report, we present four specific recommendations that link to our findings: – Accelerate Rationalization of the Network – matches the organization structure to demand, enabling a continuing reduction in the number
  • 37. of managers as appropriate. – Provide Increased Decision-Making Role for Operations Managers – recognizes the benefits of the current management structure while recommending a greater voice for the Area-VP role as strategy advisor and sounding board, possibly through the creation of an Operating Council. – Improve Headquarters and Area Staff Coordination and Integration with Operations – presents ideas for ensuring that necessary coordination and shared service activities are delivered effectively, enabling a potential reduction in duplicative staff roles. – Adopt a Consistent Performance Cluster Model – establishes the District Manager as a single point of accountability for Performance Clusters and clarifies the MPOO/POOM role and support requirements.
  • 38. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 20 Recommendation #1 – Continue to Rationalize the Network The organization recognizes and has been acting upon the need to rationalize its comprehensive network of customer service and processing facilities in response to shifting population demographics and changing volumes and types of mail. Many of the executives and managers interviewed during the course of this study expressed hope that this process will be accelerated, although they well recognize it is subject to factors far outside the scope of this study (e.g., political influence). Rationalization could include both a reduction of the absolute number of units into which the organization is divided and a redefinition of the geographic boundaries of those units. Thus, rationalization also means a possible reduction in the number of management positions and the number of managers needed to staff them, and the redeployment of managerial staff from shrinking to growing areas of need. The clearest opportunities for continued rationalization appear to exist at three levels:
  • 39. However, recognize that rationalization of the network at these levels could affect the Area management structure as well. We believe it is important for the Areas to remain reasonably balanced in size and geographic scope. Otherwise, the larger Areas could come to dominate decision-making within Operations and override legitimate regional operating differences. Additionally, continued rationalization of the network could enable a reduction in the number of Areas, although such a structural change would result in the displacement of Area staff. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 21 Recommendation #2: Provide Increased Decision-Making Role for Operations Managers
  • 40. The vast majority of the organization’s activities and employees are concentrated within the purview of the COO. This consolidation of activities within a unified management structure enhances both control and accountability. However, given the magnitude of the “operations” side of the USPS, such consolidation may inadvertently diminish the weight of its voice at the top of the organization. Without changing the existing A-VP reporting relationship, we would encourage an expansion of their role in providing input to strategic decisions. Many large organizations have established an Operating Council to ensure that senior leadership effectively functions as a team bearing collective responsibility for the success of the organization. In some respects, an Operating Council may be thought of as a de facto Board of Directors for a business, a major business segment, or a specific function, providing unified governance and applying collective experience to the review of significant decisions. In other respects, an Operating Council may be considered an extension of the business, segment, or function head, sharing responsibility for pursuing various significant initiatives or implementing large-scale change. Effective Operating Councils usually comprise all of the direct reports of the business
  • 41. segment or function head, meet monthly, and share accountability for their collective performance while continuing to bear responsibility for the performance of their individual part of the organization. Of course, the business, segment, or function head retains “51% of the vote” on critical issues even while striving to achieve consensus. We believe the USPS could benefit from the establishment of a formal Operating Council to ensure all key voices are integrated as the organization manages through the significant changes that will arise as it pursues implementation of the Transformation Plan. If established at the highest level of the organization, such an Operating Council would most likely comprise the Postmaster General and all his direct reports. However, to increase the strategic input provided by operations, it may benefit the USPS to include up to three A-VPs on the Council. In keeping with best practices, A-VPs could rotate through the Operating Council annually, thereby providing all Areas with direct representation over a three-year period. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 22
  • 42. No one in Area staff functions has worked in a post office for at least fifteen years; they don't know what it's really like down here today, so they come up with all these ideas that don't make any sense. USPS Study Participant Recommendation #3 – Improve Headquarters and Area Staff Coordination and Integration with Operations The USPS depends upon staff at multiple levels to work with managers to collect and evaluate performance data, investigate and propose potential process improvements, administer the implementation of new programs, and engage in many other activities that pertain to running the organization. The various staff levels interface on a matrix basis, with each other and with their respective management. This multi-tiered matrix creates some degree of uncertainty and confusion that is evident in the duplicate initiatives and competing requests for information or action that flow through the management structure. Postmasters in particular feel increasingly hard- pressed to sift through and prioritize conflicting demands. District Managers also believe they would benefit from greater staff coordination. We believe there is a significant opportunity to more clearly define staff responsibilities, identify potential duplication, improve coordination and control
  • 43. over new initiatives, and—ultimately—possibly reduce the number of support staff roles. Michael Goold and Andrew Campbell, authors of Designing Effective Organizations: How to Create Structured Networks, propose a method for considering organizational structures. They suggest organizations use two types of tests to balance the “right amount of hierarchy, control, and process – enough for the design to work smoothly but not so much as to dampen initiative, flexibility, and networking.” Their Parenting Advantage Test seems applicable to the USPS. Existing management structure is a command and control structure, with a strong matrix overlay. We believe this test will provide for better clarity for the Headquarters going forward. This test involves defining the corporate-level or “parent” activities that add value to the entire organization and, therefore, should be allocated to the corporate center (e.g., managing government relations, broadly maintaining key organizational capabilities) and evaluating whether the design supports these propositions. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations
  • 44. Page 23 Based on our initial observations, the “Current” column below represents Headquarters’ role in these best practice activities. Note that our organization design experience leads us to conclude that all of these roles are vital to the USPS. Role Best Practice Description Current Future Broker Creates value by acquiring units/people for less than their worth and discarding activities for more than their worth Collaborator Helps units expand size/scope of activity by supporting growth initiatives Director Helps units improve costs, quality, or profitability by setting stretch targets and providing benchmarks
  • 45. Liaison Helps units work together in ways that might otherwise be difficult by setting incentives or centralizing certain activities Proprietor Finds ways to exploit central resources such as brands, competencies, relationships or patents across business units Note: the degree of shading in each circle indicates the degree to which the role is being performed or should be performed. The greater the shading, the greater the role should be filled. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 24 Every MPOO in the organization does things
  • 46. differently. There is little consistency about the role, the kind of people who fill that role, their skill set, or even how they do what they do. I never get help from my MPOO because he is always tied up in telecons. I bet he spends two days a week feeding the information monster, so he can't be out here working with us. I think the MPOO's role is to squeeze us. They never provide guidance in how to fix something; they only point out problems that I already know about. USPS Study Participants Recommendation #4 – Adopt a Consistent Performance Cluster Model The USPS would benefit from more consistency within Performance Clusters, both with respect to the overall management of the Performance Cluster and to the discharging of the MPOO/POOM role.
  • 47. As noted in the Findings section, some Performance Clusters are managed on a collaborative basis wherein the District Manager and Plant Manager share responsibility. In many others, one of these two roles serves as a “lead.” We believe the “lead” model is superior because it represents a continuation of the unified management structure that otherwise prevails across the organization. Establishing such a “lead” role ensures a single point of accountability for each Performance Cluster. Furthermore, if decision- making is to be pushed to lower levels of the management structure, such a single point of accountability will be required to ensure effective control is preserved through the alignment of autonomy and accountability. We suggest that the ‘lead” role in a Performance Cluster should generally be filled by the District Manager, who bears responsibility for customer service. The organization should, however, remain open to allowing rare exceptions in cases where the local Plant Manager as an individual has more relevant experience to serve as “lead.” Nevertheless, we are aware that the Plant Manager’s primary responsibility is to run processing as effectively as possible to meet the customer needs advocated by the District Manager. Thus, these exceptions should be rare. A second inconsistency with the Performance Cluster level of the organization pertains to the MPOO/POOM role. Even the differing names for this role—MPOO vs. POOM—reflect this inconsistency. We believe rectifying this inconsistency by clarifying the role and
  • 48. standardizing key processes would enable MPOO/POOMs to function more effectively. They could more readily anticipate and meet the organization’s expectations because their role would be commonly understood. Also, they could more readily leverage best practices. The USPS could benefit from two other modifications to the MPOO/POOM role that should be explored more fully. (1) MPOO/POOMs generally confront a large span of control, yet often lack any designated support. Preliminary indications suggest that MPOO/POOMs President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 25 with such support are able to dedicate more time to working with their assigned Postmasters. We believe it would be worthwhile to explore this observation during the course of clarifying the MPOO/POOM role. (2) Several District Managers have called for the creation of a “senior” MPOO/POOM role in larger, more complex Performance Clusters. This role would bear responsibility for addressing the needs of the most significant post offices and major operating issues that arise within their assigned Area.
  • 49. Another MPOO/POOM in the Performance Cluster could assume responsibility for the functional interface with departments such as Finance and HR. This concept should also be explored in greater depth when clarifying the MPOO/POOM role. President’s Commission on the United States Postal Service Management Structure Study g) Recommendations Page 26 We should be able to close post offices through attrition – consolidation efforts should result in better service being provided; flexibility is needed. USPS Study Participant Capitalize on Existing USPS Strengths In addition to the above recommendations, we have identified a number of operational strengths that are facilitated by the existing USPS management structure. These positive attributes should be preserved and leveraged as any future
  • 50. structural changes are implemented: —The broad cross-section of executives and managers interviewed for this study were found to be universally committed to the USPS and the transformation effort and keenly aware of the significant challenges faced by the organization. As discussed in the Findings section, achieving a clear line of sight between each individual and the organization’s strategic goals is critical to success. Otherwise, management would be working at cross-purposes in pursuit of misaligned goals. The relatively flat management structure currently in place has fostered tangible objectives, performance metrics, and performance targets for each management role that visibly link to the USPS’s objectives and provide a remarkably clear line of sight. — As noted by the Corporate Leadership Council (Determining Effective Spans of Control, October 2001), the 1990’s demonstrated a trend towards reorganizing corporate design and structure. Companies started flattening or “delayering” to reduce the hierarchy within the organization. They decreased the number of middle managers and increased spans of control of remaining managers. Four primary reasons
  • 51. are cited for this expansion: processes or assets - level execution -party providers Clearly some of these factors have influenced the USPS in moving toward a lean organization. —The streamlined organization structure with few levels of management has enabled the scope of each management role to be broadly defined and therefore offer challenge and flexibility to executives and managers. The USPS has traditionally grown its leaders from within due to the unique nature of the organization. The existing management structure has allowed employees to move from less demanding to more complex positions as President’s Commission on the United States Postal Service
  • 52. Management Structure Study g) Recommendations Page 27 From a national systems perspective, communication works well—8 A-VPs meeting with Donohoe, lots of input. They discuss implementation issues and then let our people know about it. At local levels, the approaches are diverse. With an organization this large, it requires pressure to keep things aligned through a chain or line of command. USPS Study Participant their individual skills develop while remaining in the same type of role simply by moving across geographies. It is worth noting that the Transformation Plan observes: “The challenge to assure continuity of leadership has never been more important than it is today. Approximately 55 percent of Poster Service officers and senior executives and 36 percent of managers will become eligible to retire over the next five years.”
  • 53. —The streamlined organization structure also promotes sharing information and leveraging best practices because large groups of managers occupy the same role, confronting similar challenges while striving to perform well against identical metrics. Managers are able to exchange relevant information and best practices because they understand the role they share with their peers. Promoting such free transit of information is essential because there are no true comparators to the USPS that could serve as ready sources of best practices. —Despite the open flow of information described above, the geographic basis of the management structure enables the USPS to promote internal competitiveness against NPR metrics and thereby drive USPS performance. Because so many individuals occupy the same role measured by the same metrics, their performance can be readily arrayed for periodic comparison. As we heard often during our interviews, “No one wants to be last.” ********
  • 54. In conclusion, Unisys/Watson Wyatt believes that the overall management structure is appropriate with some areas of opportunity. The four recommendations put forth in this report, with proper implementation and oversight, can enhance the overall operating effectiveness and efficiency of the USPS. We respectfully urge the USPS to more closely examine the merits and viability of these recommendations. h) Appendices Page 28 President’s Commission on the United States Postal Service Management Structure Study Appendix A – Glossary of Terms Area, Area Vice President (A-VP) The USPS presently divides the country into eight Areas. (A ninth, large geographical unit functions like an Area and has been treated as such for purposes of this report.) Each of the eight Areas is headed by an officer-level Area Vice President who bears responsibility for postal
  • 55. operations within that geographical area. Best Practice Practices, programs, or policies, widely implemented by successful organizations that are coping with similar conditions and facing similar opportunities or challenges. Best practices are a valuable source of insight, though not a prescriptive decision-making guide. Career Path A predetermined path through succeeding positions— generally of increasing responsibility and authority—that has been identified as a logical progression for the development of employee skills and leadership ability. Command and Control The philosophy underlying an organization structure that is designed to reinforce the consistent, efficient execution of strategic initiatives established at the very top of the organization. Command and control organizations are very hierarchical and tend to discourage the upward flow of input on strategy. However, they excel at standardizing processes across a broadly dispersed organization. Chief Operating Officer (COO) The Chief Operating Officer (COO) of the USPS is presently responsible for overseeing nationwide field operations and Headquarters Operations and Labor Relations departments. The COO reports directly to the Postmaster General.
  • 56. Drivers (e.g., of strategy, organization design) A driver represents a significant force that helps shape or determine various aspects of an organization’s existence. Drivers may represent material opportunities, challenges, resource constraints, or other factors. Bold words are defined elsewhere in the Glossary of Terms h) Appendices Page 29 President’s Commission on the United States Postal Service Management Structure Study District, District Manager The USPS presently divides each postal Area into a number of Districts. Presently there are 85 Districts nationwide, each headed by a District Manager who reports to the respective A-VP. District Managers are responsible for overseeing operations for all post offices
  • 57. within their District. (Please see Performance Cluster for additional information.) Focus Group To facilitate information gathering, a Focus Group may be convened whereby several individuals who typically occupy the same role within an organization are brought together and asked certain questions. Often, the group will amplify what a single individual may say and thereby provide more detailed insight and understanding. Job Responsibilities and Scope Jobs—or roles—are established to help an organization complete certain activities or tasks. Job responsibilities define those tasks and desired outcomes, whereas job scope delineates the outer limit of those responsibilities. Line of Sight Employees typically ask three questions: (1) What is the organization trying to accomplish? (2) What am I expected to do that contributes to achieving the overall objectives? (3) How will I be rewarded? Line of sight refers to the degree to which the answers to these three questions are linked. In organizations with a strong line of sight, employees clearly understand how their own activities support the organization’s goals, and how actual results will determine their individual rewards. Matrix A matrix is a set of relationships across an organization, wherein an individual employee reports to more than one
  • 58. manager. Some degree of conflict is inherent in a matrix organization structure. MPOO (Manager, Post Office Operations) Reporting to each District Manager is a small number of Managers, Post Office Operations. These MPOOs, also known as POOMs in some sectors of the USPS, oversee an average of seventy post offices within their respective districts. h) Appendices Page 30 President’s Commission on the United States Postal Service Management Structure Study Organization Design Criteria Organization design criteria represent an organization’s ideal characteristics and are developed in response to the various drivers that have shaped that organization. The
  • 59. optimal organization design best promotes the realization of those ideal characteristics. Performance Cluster The USPS presently divides each Area into a number of geographically-defined Districts that are also known as Performance Clusters. For all intents and purposes, Districts and Performance Clusters represent the same geographic boundaries, operating facilities, and staff. POOM See MPOO Postmaster Perhaps the most familiar management role within the USPS to the general public, the Postmaster is responsible for all aspects of the daily operation of a specific postal facility. The role varies widely in scope, ranging from small offices where the Postmaster may be the only regular employee to large city offices where the Postmaster may manage a very large staff and even oversee small post offices nearby. Large city Postmasters may report directly to a District Manager rather than an MPOO/POOM. Span of Control Span of Control indicates the number of individuals that report to a specific manager.
  • 60. h) Appendices Page 31 President’s Commission on the United States Postal Service Management Structure Study Appendix B – Interview Guide United States Postal Service Interview Guide June 2003 Thank you for meeting with me as we review the USPS management structure in support of the President’s Commission on the United States Postal Service. Your own responses to the following questions will remain confidential, although the responses from all interviewees will be synthesized and integrated into our report findings. Strategic Direction 1. As an organization, what is the USPS trying to achieve? What will be the key organizational drivers over the next three-to-five years?
  • 61. 2. What are the barriers/challenges that may be hindering the performance of the organization? 3. What are the greatest risks that need to be mitigated? 4. What are the internal implications of these challenges and risks? 5. What strengths does the current organization bring toward meeting these future challenges? Organization Structure 6. Do you feel the organization is structured effectively to drive the USPS mission and vision? Why or why not? 7. How are key decisions made within the organization (i.e., how well are decision- making and autonomy aligned?) 8. Are there informal ways that work gets accomplished within the organization? 9. How does the physical structure (e.g., geographic spread) affect how things are done?
  • 62. h) Appendices Page 32 President’s Commission on the United States Postal Service Management Structure Study Roles 10. Tell me about your current role and responsibilities. 11. What does your role specifically provide to the level above it and the level below it in the organization (e.g., content expertise, decision-making support)? 12. How do you interact with your peers who occupy the same role (e.g., role interdependency)? 13. Do you interact with other managerial roles across boundaries? If so, how? 14. In your opinion, is there role clarity across the organization? Culture
  • 63. 15. What workplace behaviors are promoted and reinforced? 16. How effective is communication upwards, downwards, and across the organization? Close 15. Is there anything else you would like to add regarding the USPS management structure? h) Appendices Page 33 President’s Commission on the United States Postal Service Management Structure Study Appendix C – Focus Group Guide United States Postal Service Focus Group Guide June 2003
  • 64. Thank you for meeting with me as we review the USPS management structure in support of the President’s Commission on the United States Postal Service. We have brought you together to solicit your views on various aspects of structure. We would like everyone to participate in the discussion, recognizing there are no “right” or “wrong” answers. We also ask that you keep each other’s opinions confidential— what’s shared in this room stays in this room. I will be taking notes during our discussion, but we will not attribute any comments to specific individuals. The notes from today will be combined with input from others in the organization and integrated into our report findings. Before we begin, please let me know how long you have been with the USPS. Strategic Direction 1. As an organization, what is the USPS trying to achieve? 2. What are the barriers/challenges that may be hindering the performance of the organization? 3. What are the internal implications of these challenges and risks? Organization Structure 4. Do you feel the organization is structured effectively to drive
  • 65. the USPS mission and vision? Why or why not? 5. How are key decisions made within the organization (i.e., how well are decision- making and autonomy aligned)? 6. Are there informal ways that work gets accomplished within the organization? 7. How does the physical structure (e.g., geographic spread) affect how things are done? h) Appendices Page 34 President’s Commission on the United States Postal Service Management Structure Study Roles 8. Tell me about your current role and responsibilities.
  • 66. 9. What does your role specifically provide to the level above it and the level below it in the organization (e.g., content expertise, decision-making support)? 10. How do you interact with your peers who occupy the same role (e.g., role interdependency)? 11. Do you interact with other managerial roles across boundaries? If so, how? 12. In your opinion, is there clarity of roles across the organization? Culture 13. What workplace behaviors are promoted and reinforced? 14. How effective is communication upwards, downwards, and across the organization? Close 15. Is there anything else you would like to add regarding the USPS management structure? Functionalist theoretical perspective
  • 67. Conflict theoretical perspective Critical theoretical perspective Interactionist theories race ethnicity racism minority group dominant group stacking sexism Ideological sexism Institutional sexism Feminist theoretical perspective social class social stratification economic capital social capital cultural capital
  • 68. power ADA - Americans with Disabilities Act disability masters athletes religion deviance - is the recognized violation of cultural norms. Deviance is universal. It exists in all societies. Deviance is variable. Any act or person can be lableled deviant. Deviance is political. Norms (including laws) reflect the interests of powerful members of society. deviant - Social foundations of deviance: Deviance is shaped by society. Deviance varies according to cultural norms and norms change. People become deviant as others define them that way. We all violate norms at one time or another; what matters is how others perceive, define and respond to it. How societies set norms and how they define rule breaking both involve social power. Functions of deviance - 4 essential functions. 1. Affirms cultural values and norms. 2. Responding to deviance clarifies moral boundaries. 3. Responding to deviance brings people together, 4. Deviance encourages social change. overconformity underconformity violence in sport
  • 69. on-field violence in sport off-field violence PEDS - Performance enhancing drugs prescription drugs and over the counter drugs stimulants anabolic steroids doping (defined on page 332) eating disorders: anorexia nervosa, bulimia compulsive exercise hazing gambling * #-:-It':g - --E--4{=17Fr ''-:..# +a:l' #a...-- _- **r*r* o .-:- Sociology 208lPE 2Og Tuesday, February 19, 2013 Discussion Question Although many barriers have falten, name at teast three barriers
  • 70. that remain in achieving equality forwomen in the sport world. 'l/ Potential Essay Questions for the Midterm - Soc 208/pE208 winter 2013 1. How do sports activities, athletes, and athletic competitions mirror the values of American society? 2. Do you think athletes should be "heroes" in modern-day societies? What do think are the characteristics of a hero? 3. How does the socialization process help a person learn about spofts and sports participation? Give some examples, based upon the role which the following agents play: parents, peers, the school, the community, and the media. 4. What are some of the reasons parents encourage their children to participate in spofts? What do you think are positive reasons and what are negative reasons? 5. Do you think that sports "builds character"? What does this phrase mean to you, and how can it be applied to youth sports in particular?
  • 71. 6. In what ways are spotts a part of the entertainment business? Why does ESPN place the word "enteltainment" before the word "spolts" in its title? Do you think this is significant? Why or why not. 7. Why is the connection between sports and the mass media so important? What are some of the positive and some of the negative aspects of this connection, in your view? February 5,2Ot3 Answer the following questions · How race and ethnicity are defined. · How sport is both a positive and negative force for promoting racial and ethnic equality in society. · Discuss the history of women's participation in sport before the 1850's. What were the barriers? · How Title IX affected women's sport participation. · How increased sport participation by females has affected contemporary society. · How does social class affect access or present barriers to participation in sport? · Identify the different social classes in the U.S. and typical characteristics of each class. Discuss the opportunities for social mobility through sport. · Develop a list of the three major legislative acts that were passed to protect the civil rights of minorities, women, and the physically or mentally disabled. Include the dates these laws were passed and discuss the impact of these laws on sports participation (for athletes and other participants). · Describe the interrelationships between sport and religion.
  • 72. · How do athletes, coaches, sport organizations and institutions use religion in sport? · Describe some areas of conflict between religion and sport. · Identify issues related to the use of performance enhancing drugs in sport. How does doping impact athletes and fans of major league sports such as football, baseball, basketball or hockey? · Violence is highly visible in American sport. Discuss violence on the field and off the field and how violence can be reduced in the future.