NAMMU MEDIA GROUP
TUESDAY DECEMBER 20, 2005

TOPIC: YOU vs INEFFICIENCIES!
BEST PRACTICES WORKSHOP REPORT


BACKGROUND
Concurrently with raising positive mailing industry profile and issue awareness with the political groups and executive who can influence policy change, NAMMU is building on the positive momentum of the 2004 ground-breaking report: Canada Post and The Mailing Industry: Shaping The New Business Model, with its IMPACT 2006 report and resultant practical initiatives. The Canadian mailing industry by many accounts is increasingly marginalized by the strategic and practical initiatives of its largest supplier, Canada Post Corporation. NAMMU is focusing attention and awareness on three key business drivers: the rate setting process, incentives and cost accountability; meaningful consultation and win-win impact; fair business practices. The IMPACT 2006: Gateway to Positive Change forum held in August 2005 surfaced practical issues and initiatives that can have an immediate and positive impact for the mailing industry and Canada Post. One important factor identified was the rising cost of interface with Canada Post particularly with the reduction of incentives. The industry churn created by the introduction of credit authorization in September emphasized the need to address this rapidly growing interface cost immediately, and induction issues were selected as the first priority to examine.


NEW
Industry discussion leaders at the December 6th best practices workshop: YOU vs Inefficiencies! addressed a wide range of induction and pre-induction issues, highlighting the sources of frustration and costly inefficiencies experienced in the current and evolving Canada Post processes. They delivered issues, best practices for dealing with current processes, and led participants in positive discussion on a business model for interaction and induction that would resolve not just the symptoms but the root causes of inefficiencies and frustration.

Workshop Highlights:

A status report on the NAMMU progress with initiatives on the three strategic key business drivers (see Background) prefaced the panel discussion, and discussed how the Policy Framework, Rate Cap Formula, de-regulation of incentives, and the wide latitude afforded the Corporation in the Act, can contribute to a one-sided, win-lose business model, out of synch with industry needs and actively working against Canada Post’s business interests. Added to the positive remedies already tabled with the Minister and Canada Post senior executive is the need for a properly mandated Joint Technical Committee to ensure alignment of business realities and continuous improvement.

Panel issues touched on: dysfunctional accounting policies and practices; RVU practices; sort, containerization and fill issues; new opportunities vs bureaucracy; customer serve barriers. Specific presentations (where available) are attached to this bulletin. These presentations appeared to reflect the issues of most participants, not solely the presenters. Any issues presented were accompanied by positive resolution ideas. Discussion leaders and participants brought a variety of perspectives, however, commonalities included:

Major dissatisfaction is stated with the heavyweight bureaucracy with which customers contend, even as customers do significantly more work for less reward. Many think the burden of cost and work has shifted to the customer. The physical mail and paperwork under bureaucratic scrutiny can actually delay mail for days, cause mail to be uprated without notice or choice. REMEDY: Mutual education of work processes and business impact of change. Re-develop working relationships and shift focus from penalties to resolution of issues.

New High-Low density sort for Lettermail still not delivered. REMEDY: Alternatives need to be considered such as negotiated agreements with individual mailers based on volume, accuracy and other criteria.

Pre-sort documentation challenged at RVU for large mail streams processed over
multiple days and batched in production environment, technical capabilities challenged. REMEDY: Align requirements for certified software with market conditions. Ensure CPC expectations are realistic given industry capabilities.

Containerization and fill issues offer opportunities for significantly improved efficiency, however, inability to meet mailers’container demands on all mail types, forces higher cost to mailers and magnifies inefficient handling for mailers and Canada Post. REMEDY: A properly mandated Joint Technical Committee for information flow and experimental/remedial action.

Telephony system considered so severely flawed, customers rarely bother to complain anymore – they just find their way around “the system”. REMEDY: Re-think. Skill/knowledge level at 1-800 numbers substantially below industry requirements.

Too difficult to do business with Canada Post, bureaucracy demands even at the sales level for a product turn off potential customers. Compliance demands overshadow product benefits. REMEDY: Mailing industry knows how to sell products, their livelihood depends on it – focus on collaboration with the industry, not competition. Continue service specialist meetings with VAM (Value Add Mailer) customers.

Issues with Credit Authorization were advised to Canada Post in advance of program start-up, and lack of appropriate communication to customers then compounded the negative results at implementation. Generally speaking, it appears as though Canada Post thinks communication of a fait accompli is adequate once they have decided it will be “transparent” to the customer. REMEDY: Meaningful consultation with the industry is critical to the success of any process change Canada Post decides it might want to implement. More than one contact name in a customer organization needs to be carried by Canada Post, due to absenteeism or inappropriate contact. Generic salutations on important messages to customers are inappropriate, and ensure a strong likelihood the message will not reach its intended audience.


The workshop recap called for these three best practices to resolve root causes of issues:
A mechanism to facilitate ongoing discussion, such as a properly mandated Joint Technical Committee. It is vital the message is received throughout the Corporation, not just by “gatekeepers”. Continuous improvement is the objective.

Quick Fix Workshops to address issues that are already off the rails and causing major dissatisfaction.

Industry/CPC training and education modules.

NEXT
The positive and open dialogue generated at this workshop will be the catalyst for subsequent workshops. Topics raised at this session will be grouped and prioritized with the main IMPACT 2006 report, and spin-off workshops will start in the new year.

Three workshops have already been agreed:
Ed Lanthier, Director, Credit Management, has proposed an industry workshop January 26th on billing and credit management issues, including a new invoicing improvement initiative. Susan Jahudka will also attend to better understand customer issues with the RVU.

A follow-through workshop with Susan Jahudka, RVU personnel and industry will be held, and Ed Lanthier will attend that session to provide continuity. Gerry Gervais will participate on relationship management issues. Timing to be agreed.

A third workshop will address the Lettermail high-low density sort, other options for incentives. Timing to be agreed.

Special Notes:

EST for Unaddressed Admail works well for small local mailings but not large nationwide mailings. Several participants were interested in hearing any new developments and Gerry Gervais undertook to supply a backgrounder for circulation.

A joint training module for Publications Mail product users and Canada Post personnel had been agreed previously and will be implemented in the new year by the Publications Mail Council.

Click here for BEST PRACTICES WORKSHOP presentations:

 

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