NALC Releases White Paper on USPS Business Model, Postal Reform Drafted by Financial Advisory Firm Lazard
Successful revitalization of the U.S. Postal Service requires a strategic business plan that leverages the unmatched reach of its network, legislative action to relieve it of obligations no other business bears and shared sacrifice from all stakeholders, says the renowned international financial advisory firm, Lazard.
“While the Postal Service clearly faces enormous challenges, we do believe that its revitalization is achievable,” Lazard says in a white paper released on April 17. The paper, “Delivering Change to Revitalize an American Icon,” results from a due diligence investigation of the USPS commissioned in October 2011 by the National Association of Letter Carriers and conducted by a Lazard team with extensive experience in restructuring strategy.
Lazard outlined the basic elements of a reform plan that would aim to revitalize the Postal Service, rather than the approach being advocated by the Postal Service — an approach based on massive, and ultimately counterproductive, reductions in service. Lazard indicated that based on its analysis and experience, the Postal Service’s “shrink to survive” strategy will simply facilitate the decline of this vital American institution.
In addition, Lazard’s analysis of pending legislation (S. 1789) determined that, while the bill does not go as far as the Postal Service in proposing service reductions, the legislation still amounts to a stop-gap — not real — solution, because it does not fundamentally address the need for change in the way the Postal Service does business. And it too reduces service to the public and to America’s businesses.