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Most postal administrations worldwide are feeling the brunt of increased competition, e-substitution and declining revenues as a result of rapidly dwindling volumes of traditional mail.
Malta and Maltapost are not immune from this global phenomenon, and like most postal administrations abroad, Maltapost is adjusting to the harsh realities of this new competitive environment. The postal business today is a tough, cost-driven and highly competitive one, where the key to success lies in one’s flexibility to adapt, downsize where necessary and cut costs, as well as diversifying into related and sometimes new businesses. Maltapost like many other postal administrations is striving to do just this.
This was the main message of Maltapost’s business breakfast held this week.
The reforms at Maltapost which were concluded during 2003 and part of 2004 were necessitated by economic realities. Maintaining the ‘status quo’ was simply not a commercially viable option. Modern postal systems, similar to those used in European and other developed countries were introduced in Malta with a view to increasing productivity. Without these process reforms and a significant reduction in staffing levels Maltapost would not have been an economically feasible proposition.
The change and reform process at Maltapost was not an easy nor a perfect one. Such things are never smooth or wholly predictable, while organisational change is always personal, painful and complicated. This has been proven by the experiences of other postal administrations in Europe and North America. Malta was no exception.
While the main focus of Maltapost has during the past two years been primarily on planning and implementing the various phases of the reform process, one has to acknowledge that the process of change has also affected the customers of Maltapost in a very direct and personal way. Some of the effects were perceived as being positive, while some were not perceived as such. New modes of doing things were introduced, new services were launched, ‘old’ services were repositioned, and so forth. Some things went down well, others less so, but then again with hindsight, vision is always 20:20.
Maltapost recognises that it not only needs to communicate more effectively with its customers but has an obligation to do so on a continuous basis. They are, after all, Maltapost’s raison d’etre. Therefore, understanding and addressing the customer’s needs and perceptions are central to the success of Maltapost since at the end of the day, the program of reforms had as its ultimate objective that of improving the level of service to the customer. Has this been achieved?
The truthful answer to this question is both ‘Yes’ and ‘No’. Embarking on a process of change is never plain sailing. One has to admit that there were service failings particularly during and immediately after the implementation of some of the major changes during 2003. Having said this, it would not have been realistic to expect otherwise. Notwithstanding these radical but necessary changes, Maltapost still maintained service levels (as measured by the number of letters delivered on a next day service) comparable to those in existence prior to any reforms being undertaken. Under the circumstances, this was no mean feat.
Over the past few months, the benefits of a number of the reforms undertaken previously seems to be coming to fruition. Thus for example, whereas in July 2003, only 70 per cent of local mail was delivered the next day, this figure rose to 82 per cent by July 2004, and rose again to almost 90 per cent in October 2004. During the first two weeks of November 2004, the number of next day deliveries reached the 99 per cent level.
These results compare well to those of other postal administrations. Thus for example, the service levels achieved in the UK in terms of next day delivery (as reported by the BBC) was in the region of 88 per cent in June and 92 per cent in August. In the case of Ireland, the percentage of mail delivered the next day was in the region of 70 per cent during the period January-June 2004 according to a survey published recently by Comreg, the Regulator in Ireland. In this respect, the challenge facing Maltapost today is that of maintaining its consistency in reaching higher service performance levels.
Performance levels and customers’ perceptions of Maltapost were adversely affected by the delays experienced last Christmas. Mail volumes in December normally double with over one million items per week during Christmas peak. The delays experienced last year were due to a combination of factors including unusually late mailing patterns, productivity issues, and a considerable backlog of mail destined for Malta at Heathrow. Maltapost had some control over the former, but not the latter. In order to minimise the risk of a repeat this year, Maltapost has already taken a number of proactive measures including the launch of a ‘mail early’ campaign and the appointment of a representative to monitor incoming mail destined for Malta via Heathrow during December
In conclusion, Maltapost is steadily improving its level of service to customers, and there are facts and figures, which verify this. However, Maltapost must work harder to change customers’ perceptions and to further boost their confidence in the Maltapost brand. Significant service improvements have been registered in recent months, and a challenge facing Maltapost today is that of changing customers’ perceptions to fairly reflect these positive developments.
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