The postal sector faces continuous challenges from changes to its regulatory and business environment. The innovations over the past decade have delivered productivity growth, increased quality and a new competitiveness. However, with the link between organic growth in mail and the economy broken, there is a new medium term pressure on the Post to continue to increase productivity, business agility and to generate new revenue streams through inovation and diversification.

Posts have to address fundamental strategic choices around markets, services, corporate structures, operational models, funding and culture.

We have unprecedented experience in this area Bengt, Elmar and Heimo have had direct senior operational experience in developing and managing the strategic transition issues in the leading Posts of Sweden, New Zealand and Germany. Adrian and the team have worked as advisors to over 20 Posts on core strategic issues in both developed and new industrialising economies.

Governance and ownership models have changed significantly as they have migrated from a largely civil service departmental structure to commercial governance within the public sector to finally various forms of full or semi privatisation.

Governance sets the framework in which managers operate, with clarity about delegated authorities, scope for independent action, and business principles.

Ownership will continue to be a core issue in the coming decade. The dilemma facing Government is whether the transformation of Posts into more flexible and efficient commercial organisations is best achieved within continued Government ownership or through the addition of private capital forces. In this environment the role of the Post Board is to ensure that the Government can maintain its ownership options by building and maintaining a viable and cohesive business model and by increasing shareholder value.

We have deep experience in these issues. Strategia has a ten year advisory relationship with the UK Government Shareholder Executive in supporting the transformation programme for Royal Mail and its subsequent floatation. In addition, our consultants have delivered numerous workshops to Posts Boards Management and Government on these critical issues.

Elmar is a known industry commentator on Postal governance and has deep practical experience of both public and private models through his involvement with New Zealand Post, Deustsche Post, Malta Post and Trinidad and Tobago.

At the heart of all postal transformations there has to be a fundamental change to the operating productivity.

Further innovations in the core operations will be critical if Posts are to adapt to both falling letter volumes and increasing parcel volumes.

Centralisation and automation have increased productivity over the last 20 years. Key areas in the next five will be:

• Management of information around the logistic flow
• Agility and alignment of products, technology and new forms of labour flexibility
• The full exploitation of mobile technology

We have extensive consulting and direct management experience in this area.

Our team has provided operational consulting services for An Post, Post Nord, Swiss Post, Malaysia Post, Canada Post, Jamaica Post amongst others on a wide range of network automation and delivery issues.

In addition, Heimo was Operations Director at Deutsche Post from 1991-2000 where he led the ground breaking restructuring of the Deutsche Post operational system and network.

This breadth of experience allows us to assess the current status of an operation, identify critical areas for productivity growth and to advise on appropriate solutions to fit the given situation

The Posts are major buyers of products and services from major capital purchases to high volume purchasing of smaller items. The opportunities to supply or partner with the sector are significant. The traditional procurement market remains but there are also opportunities for Postal suppliers to work with the industry as partners, as the Posts constantly review their mix of insourcing and outsourcing, for both core operational processes and for technology enabling service innovation.

For a supplier to be successful there are multiple issues to understand and address at industry, company and procurement level, including:

• Core market trends, core business drivers, objectives and plans, best practice benchmarks and industry direction
• Governance and business pressure, core strategies and existing supplier environment
• Procurement tendering rules and process, funding capacity and environmental and regulatory compliance

Deep knowledge and sound relationships within the industry are essential to winning major projects in the sector.

Our team has significant experience in supporting business and product development in the sector. We offer:

• Deep industry insight around business process, how to develop best practice and extensive databases that benchmark Postal performance
• Understanding of likely key investment areas and intentions by leading Posts
• Strong contacts with senior managers
• Understanding and experience in Postal procurement and tendering

Over the years we have supported automation equipment manufacturers, software suppliers, counter automation companies, mobile solution providers, business process outsourcers and IT service companies to win tenders and develop relationships with Postal companies.