WME 2010: Leaders focus on evolving markets

The evolution of the postal market was discussed during the first morning of the World Mail & Express Europe Conference in Copenhagen today (June 16). In a period of continuous economic, technological, and cultural evolution, effective leadership at a postal organisation is at a premium. Triangle Management Services, event organisers, looked to address this during the first session of the day.

Former managing director of the UK Post Office, Alan Cook, was in the chair for the track entitled ‘Leadership in a Virtual World.’

Lars G Nordstrom, CEO of host sponsor Posten Norden, opened the conference by discussing the strategic benefits of a cross-border merger. He claimed that despite being a young operator – with Posten Norden only in its second year after the Danish-Swedish postal merger – the company is “already a well functioning team with great spirit”, and will continually strive to be as efficient as possible. The CEO offered an interesting insight into how the postal market is changing. He said that the postal industry is slowly transforming into a communications industry. “The traditional market is slowing,” Nordstrom said, “but the communications market is growing. This is where we will have to use different business logic.” He concluded by stating that there is now a master transformation in the industry, and that you have to be as quick and flexible as possible.

Giving an Asia Pacific perspective on the changing postal market was Clement Cheung, postmaster general at Hongkong Post. He went on to make clear the effect of the e-commerce boom in Asia, as well as explaining how the role of the operator can change depending of the level of Internet usage in the country. Interestingly, Cheung said that there had been “tremendous” levels of decline in his national market, including an 8% drop in volumes during 2009. Despite of this, international mail is seeing a period of growth at Hongkong Post (2007: 3%; 2008: 9%; 2009: 8%). Cheung claimed that this growing market is “his money spinner”, and that recently for the first time, international mail revenues have exceeded domestic mail revenues – now contributing more than 30% of total revenue at Hongkong Post. However, Cheung explained that likely profits will be eroded by having to pay more to supply such a service.

Giving a perspective from Iceland Post, Ingimundur Sigurpalsson, general manager and CEO, focused on the need to be courageous in leadership when faced with recession. He revealed that Iceland Post’s plan of action included restructuring home deliveries; decreasing the number of postal outlets; decreasing the number of distribution centres from six to four; cutting delivery days to rural areas; as well as offering a greater level of retail goods.

Meanwhile, Ales Hauc, CEO of Slovenia Post, gave a perspective from his country. He explained that being ‘different’ is more important than ‘working harder’ – highlighting the need for continuous innovation throughout the sector.

Stay glued to Post&Parcel for further insight from the World Mail & Express Europe Conference.