Polish Post plans major shape-up ahead of possible flotation

Polish Post is planning a major restructuring process to start January 1, seeking to simplify the operations and improve efficiency and service quality. The move is part of a new strategy at the company seeking to build a profitable group of postal, logistics and financial services divisions that could potentially be floated on the Warsaw Stock Exchange.

Polish Post is aiming to double its revenues from parcels and logistics by 2015 and significantly boost income from financial services, while countering the decline in mail revenues.

The company said changes would be made at headquarters and out in the field to establish a clear division of responsibilities and skills.

It said improvements would be made to efficiency and service quality, to allow Polish Post to compete more effectively in the market.

Regional network

The company wants to redesign its regional network to improve the provision of customer relationship management, network management and operation of postal facilities.

It also wants better focus on improving strategic products like letter delivery and banking products.

Polish Post said its 62 district offices currently providing administrative and support functions across the country will be slimmed down to just 17, with a major move to centralise such activities. Offices located out in provincial cities will narrow their focus to sales activities.

The Post said changes would be in management and administrative levels, and would not apply to post offices.

Janusz Wojtas, board member at Polish Post responsible for sales and marketing, said: “The organisational changes will allow us to effectively serve the customer and respond quickly to changes in the postal market.

“We will improve our management in order to focus on implementing our strategic plans,” he added.

Work force

Along with structural changes, Polish Post is planning a big effort to improve the skills of its staff, with a four-year plan to allocate PLN 750m ($220m USD) in a new training and incentives programme, particularly for managerial, sales and customer service staff.

Much of the funds will be used to offer attractive incentives and performance bonuses, particularly to boost quality in the Post’s customer service.

Last month, Polish Post warned that changes in the market meant some jobs could be lost, while some staff could have to retrain for transfer into alternative roles. A fund of PLN 160m ($47m USD) has been earmarked for staff to take voluntary redundancy.

It is believed around 700 employees from the current 93,000-strong work force could be laid off, particularly with the reduction in number of district offices.

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