Start with a simple question ...

Canada Post (CP) is again on strike. Recently, the Prime Minister stated that “the Crown Corporation is hemorrhaging money, but plans have been put forward to reduce losses.” Earlier this year, he provided a $ 1B injection.  CP lost $ 407M in just Q2. Surprise? CP has consistently lost money and in greater amounts. Over $ 2B losses, last 4 years and on track this year for $ 1.5B loss. I read that the reasons for the disastrous results are declining use of mail, outdated restrictions, market dynamic changes, and stalled labour relations. So what should Canada do?

A CP fix should start with what is CP mission? I read “ maintain an accessible/affordable postal service for all Canadians, providing service to residents and businesses in rural, remote, and urban areas, while operating as a financially self-sustaining Crown corporation.” OK for the first part but what is financially self-sustaining? I am guessing it must simply mean make a profit and positive cash flow. So what is the CEO (has been there for the last 6 years) and the board say about the second part of the mission?

Planning to reduce losses is right of the bat the wrong objective. You don’t plan to reduce losses; you aim to make a profit. Our “planning” and good intentions are obviously not showing positive results! If I was on the board, I would ask these three simple questions.

1. Is the CEO and the senior team committed to make CP profitable? If YES, great ... let’s GO ... If NO, then time to replace you. Profit is not a dirty word but the basis for success. The challenge is not in questioning if we need to make a profit but in “how” to make a profit.
2. Are the 60’000 employees committed to make CP profitable? CP success relies on a strong work force, well paid, professionally managed, with team work. Not just “surviving” but “winning.” (see my photo says it all). There is a reward for all stakeholders when CP is profitable.
3. Are customers satisfied and return for more because CP offer best value and outperform the competition?

CP has incredible unsurpassed resources and opportunities: 6200 locations across Canada, 13’000 vehicles, 60’000 experienced employees, a “dad” that prints the money in Canada and a market place hungry for reliable and fast delivery of mail and parcels. What else CP need to be profitable ?

UPS earned $8B and FEDEX $5.9B. AMAZON ships a 3.3 Tons Lathe machine in 72 hours. All have labour disruptions and market challenges. The difference is they don’t aim to reduce losses they aim to make a growing profit. They have taken the juicy market segments leaving CP to send an envelope across Canada (7’459 KM) for $1.24. They do not debate “should we work Sunday”? or “is part time OK”? They focus on productivity gain, smart outsourcing, and customer satisfaction. Serving Canadians and businesses is best by making an honest profit and not by a hand-out of taxpayer dollars.

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