Results of the UPU reform activities

1. Results of the UPU reform activities CERP UPU Working Group Madrid 2-3 February 2012 Won-ja Lee, Coordinator DER.OTAR

2. Congress-Doc 17. Reform of the Union

3. Organization of the CA work • Reviewed the provisions in the organic Acts of the Union which define the functions and responsibility of the Council of Administration: • Article 17 of the Constitution; • Article 102.6 of the General Regulations • Analyzed the experiences concerning the organization of the work of the CA during the current cycle, • Envisaging various tasks that Congress would assign to the CA by means of resolutions, • Grouping functions and tasks according to their nature, • Designed a four-Committee structure for the most effective functioning and decision-making of the CA.

4. Organization of the CA work • What are the major changes brought to the new structure in comparison with the current organization? • CA may organize joint groups for the areas where designated operators’ input and contributions are needed, instead of establishing joint committees: • Activities as postal economy, e-commerce issues, sustainable development need to be transferred to the POC, while the CA deals with only governance issues when necessary, • Organizing meetings in a different manner – related to decision-making

5. CA C 1 RUPG 2012.1-Doc 3d.Annex 1 Council of Administration – Supervision of all UPU work between Congresses • Consider the report of the POC and the CC • Organize the CC Framework and criteria of its membership • Authorizes a change of geographical group • Authorize election of a lower contribution class • Decides on the contacts to be established with the organizations and monitor • Prepare the work of Congress (Committee, Chairmanship, Observers, Documents, etc.) • Political issues • Endorse Committee decisions Plenary Management Committee • Prepare and director CA work • Approve the IB report • Take on any other task/SP Governance and Regulatory UPU Strategy and P&B Supervision on UPU Finance & Administration Development Cooperation • Study questions with respect to governmental policies on postal issues • Safeguard and enhance the quality of service • Study legislative, legal problems concerning the Union or the international postal service • Establish principles re questions with major financial repercussions (remunerations of international postal services) • Study POC recommendations on regulation or new procedure • Study on UPU reform, Acts • Develop the future Strategy • Consider and approve on Program & Budget • Monitor member countries performance in relation of the UPU Strategy • Authorize the ceiling of expenditure to be exceeded • Lay down Financial Regs, the rules governing the Reserve Fund, the Special Fund, the Special Activities Fund and the Voluntary Fund. • Approve Union’s accounts • Approve the financial operating report • Control over the IB activities • Create or abolish IB posts • Lays down the Staff Regulations and the conditions of service of the elected officials • Lay down the Social Fund Regs • Promote, coordinate and supervise all forms of postal technical assistance within the framework of international technical cooperation

6. Council of Administration – Supervision of all UPU work between Congresses Plenary Conference on Postal Regulation Management Committee CC Governance and Regulatory UPU Strategy and P&B Supervision on UPU Finance & IB Administration Development Cooperation Regulatory issues on inter-national postal service, re interconnectivity, all supply chain issues including sustainable development Programme & Budget Technical Cooperation & Postal sector development Issues based on task forces as required Future Strategy Issues based on task forces as required Acts of the Union Monitoring and evauation Governance questions on remuneration systen Reform of the Union Joint project groups composed of CA and POC members designated by each body

7. Organization of the POC work • Through a thorough analysis on the structural tension in the UPU, the Ad hoc group was of the opinion that: • The UPU needs to act quickly on existing and emerging issues through a simple and effective decision-making process: • “The tensions are mainly created by the need for informed and timely decisions on operational issues rather than governmental or policy issues, therefore affecting the running of the POC rather than the CA”

8. Case for Change (1) • The POC requires a structure and process that it in line with the needs of the postal sector and, in particular, of the Designated Operators that cooperate in its working. • The current model is primarily designed to fulfil the task of implementing Congress mandates: • Much less appropriate for developing and improving services and quality or monitoring and reacting to the market and economic situation.

9. Case for Change (2) • The engagement of experts from designated operators is vital; The POC processes must be improved to align with the requirement of the designated operators operating in the market place. • The POC should operate according to an annual business plan with its own separate budget.

10. Recommendations • A matrix structure with Committee activity based around three pillar business areas, i.e. physical, electronic and financial; • Organize two decision-based sessions per year; • Working Groups carry out their activity between the sessions; • Establish an annual business plan with clear indication of targets to be achieved and budget requirements; • Opt for User-funded Subsidiary model for new areas of activity outside the Acts of the Union; • Create a new line of activity dealing with product strategy and integration; • A greater emphasis on economics and market reporting

11. POC – Dealing with operational, commercial, technical and economic questions POC Matrix Structure Outline Business Areas Physical Messaging & Fulfilment Electronics & Tech Financial Physical Service Committee Supply Chain Integration Com E-Service Committee Postal Financial Services Committee Product & Integration Group Standards Group Working groups based on lines of activities Working groups based on lines of activities Remuneration Group Operations & Accounting Group QS Measurement Group (GMS) Revenue protection, Transport, Customs and Security Group QS Improvement Group Addressing Group Markets Committee: Postal Economics Group, Market Research Group EMS DMAB Telematics ??? QSF .Post WNS Clearing

12. UPU Budget Having studied various issues around the UPU budget, the Ad hoc group was of the opinion that: • The UPU needs to invest in new activities in order to remain relevant to the postal market and to its member entities • Freezing the regular budget has reached its limit. However, it would be unrealistic to ask member countries to increase their contribution. To tackle these difficulties, the UPU should: • Diversify the sources of funding with a clear policy and guidelines, i.e. user-funded subsidiary body activities & • Prioritize UPU activities Ref. CA C 1RUPG-Doc 3c.Rev 1

13. UPU Budget Recommendation: • Develop and implement the prioritization mechanism: • Define in a clear manner “core” versus “non-core” services; • Establish and implement a concrete plan regarding the pay and play principle for UPU products and services • Further develop user-funded subsidiary bodies for new optional services but nonetheless fundamentally important for enhancing the network efficiency Ref. CA C 1RUPG-Doc 3c.Rev 1

14. Promoting more efficient decision-making • Better agenda management: • Give the priority to items requiring decisions. • Better document management: • Provide documents in a more timely manner • Introduce a strict (4-week) deadline for submission of documents for production of documents (for translation, typing, formatting, web-publishing, etc.) • Better organization of meetings • Hold meetings of decision-making bodies first during the regular sessions. Ref. CA C 1RUPG-Doc 3f

15. Promoting more efficient decision-making • Eliminate the physical document dispatch of Council documents; • Reduce the paper document distribution, as much as possible, during the sessions; • Review all UPU publications to see their necessity and to move to e-publication:

16. “3C” Model: Wider Sector Stakeholders Involvement in the UPU activities

17. List of Congress resolutions