23-06-2023
Swiss Post has been implementing its current “Swiss Post of tomorrow” strategy since 2021. It is a strategy that takes account of the rapidly changing needs of people and companies as a result of digitization. A strategy that ensures Swiss Post can safeguard the public service in the long term and from its own resources. And a strategy that buys the time necessary for policymakers to set the legal course for the public service in the period after 2030.
Halfway through the 2021–2024 strategy period, Swiss Post conducted an interim assessment on behalf of the Confederation – specifically, the two competent departments, DETEC and FDF. The assessment posed the question: is Swiss Post on track with its strategy implementation? The two reports – a status update on Swiss Post’s strategy implementation produced by an external consultancy and a plausibility check commissioned by the two federal departments – are now available. Christian Levrat, Chairman of the Swiss Post Board of Directors, sums up the reports as follows: “The interim assessment confirms that we have succeeded in laying the foundations of our strategy. We are delighted that the Confederation is equally satisfied with our work.”
Swiss Post must pursue its chosen path consistently
The two reports demonstrate comprehensively that Swiss Post is on the right track overall to achieve the goals set out in its 2021–2024 strategy. They confirm that Swiss Post is carrying out its transformation process professionally and with the support of a systematic and tight-knit reporting system that also benefits the company’s owner.
The reports evaluate the growth targets as ambitious, but entirely achievable. Growth is an important element of the strategy, offering an opportunity to compensate for lower income in the logistics core market. However, investments in digital business are key not only in relation to the declining letter business, but also due to the changing needs of the public and the economy. All of this is confirmed by the two external reports. Roberto Cirillo, CEO of Swiss Post, says: “We have made significant progress in implementing the strategy, but our transformation work is still not finished. We will pursue our chosen path consistently to ensure that we can continue to meet the changing needs of people and companies in Switzerland. We want to ensure that we can continue financing the universal service without subsidies and taxpayers’ money.” He adds: “The findings of the two reports also contain significant input for the development of Swiss Post’s 2025–2028 strategy. We will take account of the findings in the upcoming strategy period.”
Swiss Post is handling clearly identified risks carefully
The two reports also show that Swiss Post can implement some of the measures in the ongoing strategy period less quickly than originally planned. As a result, the planned growth of the acquired companies in the Communication Services unit will proceed more slowly than planned. However, the external consultants confirm that these delays are normal for a transformation of this scope. They also state that Swiss Post has credible predefined withdrawal plans, should certain subgoals in the strategy become unrealistic. For this reason, the departments DETEC and FDF also explicitly rate the risks as “proportionate”. The major challenges include a shortage of suitable acquisition prospects and the cost of integrating companies that have already been acquired. These risks were also identified by Swiss Post last year, declared transparently and tackled with appropriate measures.
Swiss Post developed its current “Swiss Post of tomorrow” strategy in the years leading up to 2020 – in other words, during a time when a pandemic and war in Europe were still almost unthinkable. The two reports show that, despite the change in circumstances, the strategy implementation has created a foundation for Swiss Post that will be stable and resilient in the long term. However, the environment remains tough. The increasingly uncertain economic situation, inflation and geopolitical tensions are challenging. Both consultancies concluded that Swiss Post is monitoring and managing the clearly identified risks carefully and continually.
Source: Swiss Post