UPU WORLD CEO FORUM 2017

Leading multidimensional growth: The hows and whys of postal strategy FINAL REPORT

December 2017

TABLE OF CONTENTS

Message from the Director General 4

Executive summary 7

Programme 11

Panels and content 11

Speakers 19

Moderators 29

Key takeaways from the discussions 31

Starting basis 33

Global dynamics 33

Stakeholder needs 35

Are traditional postal operators meeting these needs? 37

What could be the best business models for ensuring success? 38

Role of the UPU in this transformation 41

About the UPU 43 Message from the Director General

At the first World CEO Forum in 2016 in , over The forum began by reflecting on the issues that 50 CEOs from all over the world met to reflect on Posts need to focus on in this fast-changing world. the future of the postal sector. The forum brought Then we moved into a discussion on the needs of together prestigious speakers and participants from customers and governments: two critical stakehold- Posts, academia and beyond. They delved into a ers for Posts. And we closed day one by evaluating number of crucial topics for the industry, such as the the degree to which the expectations of our stake- profitability of e-commerce, the relationship between holders are being met. Posts and e-retailers, opportunities for postal finan- cial services in the digital era, and the transforma- On the second day of the event, we considered the tional role of big data for postal operators. avenues of change, seeing how any shortcomings of Posts can be overcome. This set the scene for a final Under the title “Leading multidimensional growth: discussion on effective business models that could The hows and whys of postal strategy”, the 2017 be adopted in order to bridge the delivery divide. edition of the CEO Forum in Moscow picked up the conversation from where we left off in 2016. Over In addition, CEOs had the time and opportunity to two days, industry leaders shared their experiences benchmark and network with peers from all over the and vision for the Post of the future. world; indeed, this is one of the key objectives of these forums. As the intergovernmental organization respon- sible for the postal sector, the UPU strives to pro- vide such platforms whenever they help fulfil the organization’s mission, as expressed in the World Postal Strategy, which is to ensure that “the postal sector is seen as an enabler of inclusive devel- opment and an essential component of the global economy”.

Finally, and very importantly, I wish to thank most sincerely for partnering with us to host the UPU World CEO Forum 2017. They have contrib- uted enormously to its success through facilitation in various areas, including sponsorship and hospitality.

I hope this report will provide a snapshot of this successful event. Thank you for your participation and support.

Bishar A. Hussein

Executive summary

The 2017 edition of the UPU World CEO Forum was In 2017, the forum focused on the strategy devel- held in Moscow, Russian Federation, from 17 to opment process, from diagnosing the current state 19 September. It was the second time that the cap- of the global economy and postal markets to look- tains of the postal industry had met to reflect on ing at successful business models for fulfilling the the future of the postal sector. This report contains needs of the Posts’ key stakeholders. Under the title a detailed description of the event’s programme, “Leading multidimensional growth: The hows and including the content of the panel discussions, gen- whys of postal strategy”, the forum spanned two eral information about the participation of CEOs days of discussions with high-level speakers from and various speakers, as well as the key takeaways the postal sector and international organizations, in of the forum. It is therefore intended to offer both a total of six panels. a summary of the event and insight into the most important ideas being considered by the leaders of The first day started with the opening session, which the postal sector in this age of rapid transformation. included speeches from the Deputy Prime Minister and the Deputy Minister of Telecommunications and The previous edition of the event, held in Paris in Mass Media of the Russian Federation. 2016, saw the participation of over 50 CEOs. The first event of its kind, it brought together prestigious The first panel was devoted to understanding global speakers and participants from Posts, academia dynamics: CEOs asked themselves what Posts need and beyond. They delved into several crucial topics to pay attention to in today’s fast-changing world. In for the industry, such as the profitability of e-com- the second and third panels, participants discussed merce, the relation between Posts and e-retailers, what they understood to be the needs of custom- the opportunities of postal financial services in the ers and governments in this new environment. This digital era, and the transformational role of big data paved the way for the fourth and last panel of the for postal operators. day, which evaluated the degree to which Posts are meeting the expectations discussed in the first panels.

7 The second day focused more on solutions. The fifth Indeed, even though some disparities persist panel revolved around the factors that Posts need to between countries and regions, the circumstances consider in order to better meet the expectations of have totally changed for postal operators, who have their stakeholders, while in the sixth and final panel to face fast-evolving needs. Customers are much of the forum, participants looked more closely at the more demanding: right here right now, digital and business models that modern Posts are adopting in mobile, and choice and control are just some of the order to succeed. buzzwords that describe this new pattern. In addi- tion, Posts continue to feel the pressure from gov- In addition to the panel discussions, the forum also ernments to fulfil their public service mission in included a number of social events, which provided what appears to be an impossible equation: “Make additional opportunities for CEOs to network and your own money, but make things that don’t make share best practices. Throughout all of these events, money”. By and large, the public service orientation Russian Post showed extraordinary hospitality, appears to prevail over the commercial aspects, with something that was appreciated by all participants. Posts called upon to play a special role in social cohe- sion and infrastructure, and not just in rural areas. The first key takeaway from the event was that tech- Pushing this logic even further, Posts could even be nological transformations are bringing not only risks seen by governments as a vector for building a mid- but also significant opportunities for Posts, which dle class and an extended tax base. have retained their role as a network of public ser- vices. The CEO Forum served as the perfect tool to In trying to meet these evolving needs, the tradi- benchmark with peers and provide input for the tional postal operators seem to be falling short of postal sector’s Agenda 2030. expectations. Product portfolios appear mostly unaligned with the needs of customers, and busi- This is crucial because global dynamics appear to ness models are usually not adapted to the local be generally favourable to the postal sector: eco- realities. Moreover, operators typically face chal- nomic output and trade are back on track after years lenges in articulating their value proposition to cus- of sluggish growth, in spite of persistent risks. At tomers, an issue that can be exacerbated by the the same time, e-commerce and light logistics are difficulties postal staff have in embracing the trans- exploding thanks to various macro trends triggered formation required to change the corporate brand by technology, such as new consumption mod- of very traditional companies. Furthermore, opera- els, 3D printing, blockchains, big data, privacy con- tors feel that they are being left in this fight alone, cerns, and the high demand for trusted transactions. with insufficient financial and political support from In parallel to this evolution, demographic trends, in governments and struggling to the universal combination with economic growth, are also creat- service obligation. ing demand for new services, which Posts can help fulfil. However, regions with a demographic divi- dend can only seize opportunities if they engage in appropriate reforms and transformations.

8 What would be the best business models for ensuring Rebranding and awareness-raising also appear to be success? To answer this question, traditional postal a critical element of success, as part of the overall operators have been adopting a number of strate- effort to regain the trust of lost customers. Stronger gies to successfully mitigate risks and seize oppor- operations and a whole set of efficiency measures tunities. In several countries, the Post is increasingly are also key. Indeed, if Posts are to be perceived as adapting its portfolio in order to become a one-stop being able to deliver, with speed and reliability, a shop for public services. In doing so, it is nurturing range of services that stretch beyond the traditional an old tradition while fulfilling the expectations of letter segment, they need to improve their opera- governments, which often see post offices as out- tions and customer care abilities. They also need to posts of public service delivery, especially in remote revitalize their labour force. and sparsely populated areas. This orientation goes hand in hand with a strategic repositioning and the Nevertheless, for all the benefits of these different development of new products (e.g. health access, business models, the CEOs attending the forum did personal care, digital lockers and e-documents) to agree that there was no one-size-fits-all answer. In cater to the needs of ageing populations and a very other words, resolving the key strategic dilemmas mobile and tech-savvy youth. of Posts today (progressive growth vs. leapfrog- ging; margin focus vs. volume focus; mono-product To achieve innovation and growth, the most suc- vs. diversification; competition vs. coopetition) will cessful postal operators worldwide are resorting to a depend on the realities of each country. wide array of partnerships. In this sense, public–pri- vate partnerships are encouraged, all the more so That is precisely where the UPU can be useful. It pro- because they appear in many cases to be a better vides a platform for CEOs to get together and dis- fit for the hybrid nature of postal operations now- cuss these issues. It can help countries define the adays: oriented towards providing a public service universal service obligation and the rules that go while attempting to be commercially viable enter- with it, taking into account the specificities of each prises. Partnerships can also take the form of coo- country and region. It can provide technical solu- petition, as postal operators reach out to start-ups, tions and assistance to governments, regulators and e-retailers or other postal operators to enable the postal operators willing to upgrade national postal development of sophisticated new services to fulfil infrastructure. In the words of Mr Bishar Hussein, the needs of the most demanding customers. Director General of the UPU International Bureau, the UPU is the glue that holds the postal sector together, enabling 192 networks to behave as one.

9

PROGRAMME

Panels and content “Leading multidimensional growth: The hows and whys of postal strategy”

Sunday, 17 September

19:00 Executive dinner hosted by Russian Post Veranda Restaurant, Radisson Royal Hotel

Monday, 18 September

08:00 to 08:45 Registration

09:00 Opening ceremony Speakers Arkady Dvorkovich Deputy Prime Minister, Russian Federation Bishar A. Hussein Director General, UPU Rashid Ismailov Deputy Minister of Telecommunications and Mass Media, Russian Federation Nikolay Podguzov CEO, Federal State “Russian Post”

11 09:30 PANEL 1 Coping with global dynamics: What’s in it for Posts?

The world is witnessing rapid changes in multiple dimensions. After a period of stagnation, global trade is expected to grow again in spite of persisting uncertainties. The number of migrants and refugees worldwide is expected to rise to yet another historic level, resulting in a greater need for remittances and greater availability of talent. This is juxtaposed with the parcelization of containers and increased automation, from artificial intelligence solutions to 3D printing. In addition, sustainability is starting to take centre stage in addressing global challenges.

Panellists will discuss these and other key macroeconomic trends and how they affect the postal sector.

Speakers Pascal Clivaz Isaac Gnamba-Yao Deputy Director General, UPU Director General, Gabriel Di Bella de Côte d’Ivoire IMF Resident Representative Philippe Wahl for the Russian Federation President and Director General, Ingimundur Sigurpálsson Groupe La Poste General Manager and Chief Executive Officer, Iceland Post

11:00 Networking break

12 11:15 PANEL 2 From physical to virtual: Understanding customer needs Young people now constitute a record 1.8 billion of the world’s population, changing the Post’s customer base. Empowered by the advent of seamless technology, modern postal customers have prompted tremendous change in demand patterns. When environmentally conscious customers order e-commerce products via their mobile phones, “right here, right now” moves from their wish list to their need list. At the same time, SMEs sending parcels, migrants sending remittances, and the elderly receiving support also remain key postal customers. The postal sector therefore needs to rethink its role in order to remain relevant in the face of not only a changing world, but changing consumption trends.

Panellists will identify the characteristics of today’s postal customer and ask the fundamental question: what do our customers want?

Speakers Amin Benjelloun Touimi Stéphanoël Razafimanantsoa Director General, Director General, David Walsh Zhang Ronglin CEO, New Zealand Post Vice President, Group

12:45 Lunch hosted by Russian Post Veranda Restaurant, Radisson Royal Hotel

13 14:30 PANEL 3

Between the lines: Public service and profitability

To support the socio-economic development of countries, governments mandate designated operators to provide postal services to all segments of the population. As a natural extension, designated operators become the cornerstone of governmental infrastructure for citizen outreach. Through initiatives such as e-government, health support and senior citizen support, the Posts have showcased their role as key governmental partners for development.

Panellists will discuss what governments expect from Posts and the role of these expectations in achieving Posts’ missions.

Speakers Khaled Lahham Mark Barnes Director General, Jordan Postal Group CEO, South Africa Company Zoltán Illés Lyudmila Kononova Chairman and Chief Executive Officer, First Deputy Chairman of Council of Magyar the Federation Committee on Social Policy, Russian Federation

16:00 Networking break

14 16:15 PANEL 4

Surviving or thriving: Are Posts meeting expectations?

In the face of diverse stakeholder demands, postal operators worldwide have adopted different strategies, ranging from a complete focus on logistics to greater diversification. It is necessary to identify growth areas in order to prevent market saturation and increase Posts’ competitive advantage. Each postal operator has a product and service portfolio, but can its offerings be easily copied by other players?

Panellists will discuss the status quo, analyzing how Posts are endeavouring to meet the expectations of their stakeholders. They will then explore the differentials that set each postal designated operator apart from other market players.

Speakers Ivan Čulo Rohana Abeyaratne President of the Board, Croatian Post General, Nabi Issa Coulibaly the Department of Post, Sri Lanka Director General, Société national Usamah Mohammed S. Altaf des postes (SONAPOST) Acting President and CEO, Corporation

17:45 to 18:00 Wrap-up session

18:00 Dinner hosted by Russian Post Chayka Restaurant (cruise) Transfer to the venue from Radisson Royal Hotel at 18:00. Return transfer at 23:00 from Novospassky Most quay to Radisson Royal Hotel.

15 Tuesday, 19 September

09:00 PANEL 5 From want to need: Bridging the expectation and delivery divide

There is a growing gap between what stakeholders expect and what Posts are delivering. Can Posts identify what is responsible for this disconnect? Cost, efficiency and a perception deficit could be harming the Post’s image and reducing its bargaining power. Challenges in harnessing talent, managing technology and supplier roles, and the ineffective use of data and insights could throw a spanner in the works.

Panellists will examine the benefits of better collaboration with partners and the increased adoption of technology for product development and greater operational efficiency.

Speakers Essam Mohamed El Saghir Rubina Tayyab Chairman, National Post Organization Chairman and Director General, of Post Joel L. Otarra and CEO, Philippine Postal Corporation

10:30 Networking break

16 10:45 PANEL 6 Is trust enough? Successful business models for modern Posts The postal sector is viewed as a trusted intermediary, but could fast become a mere alternative to integrators. Designated operators need to consciously choose between progressive growth and leap-frogging, margin focus and volume focus, and “coopetition” vs competition in their strategies. When choosing between mono-product strategies and diversification, Posts should also the conversion of workforce skills through automation.

Panellists will identify successful business models that could be adopted by Posts if they are to remain partners of choice for governments, businesses and citizens. They will also highlight the UPU’s role in supporting the present and future growth of the postal sector.

Speakers Gilarsi W. Setijono Moez Chakchouk President Director, PT PDG, (Persero) Nikolay Podguzov Kenan Bozgeyik CEO, Federal State Unitary Enterprise Chairman of the Board and Director “Russian Post” General, PTT

12:15 to Speakers Bishar A. Hussein 12:35 Closing ceremony Director General, UPU Nikolay Podguzov CEO, Federal State Unitary Enterprise “Russian Post”

17 12:35 Lunch hosted by Russian Post Veranda Restaurant, Radisson Royal Hotel

12:45 to Press conference 13:30 Radisson Royal Hotel, library By invitation only. Other participants are requested to proceed to the lunch.

Speakers Bishar A. Hussein Director General, UPU Nikolay Podguzov CEO, Federal State Unitary Enterprise “Russian Post” Kenan Bozgeyik Chairman of the Board and Director General, PTT Turkey

14:00 Excursion organized by Russian Post

18 SPEAKERS Bishar A. Hussein Director General, UPU

Bishar Abdirahman Hussein was first elected Mr. Hussein began his postal career with Director General of the UPU International the Kenya Posts and Telecommunications Bureau on 10 October 2012 during the Corporation, which he joined in 1984 as a 25th Universal Postal Congress in Doha. management trainee. He rose through the He received a second mandate during the ranks and became the first postmaster general 26th Congress in Istanbul. of the Postal Corporation of Kenya in 1999. He led the postal entity from a loss-mak- Mr. Hussein is vastly experienced in UPU and ing to a profitable and self-sustaining postal postal matters. He chaired the UPU Council of enterprise. Administration for the 2008-2012 cycle, hav- ing been designated by the Government of In 2002, Mr. Hussein was appointed ambas- Kenya to chair the 24th UPU Congress, held in sador of Kenya to the United Arab Emirates, Geneva in 2008. covering the Gulf Region, for a six-year period. In September 2010, he successfully chaired He holds a Bachelor of Arts Degree (Honours) the UPU Strategy Conference held in Nairobi. in political science and sociology from the The conference provided a forum for discus- University of Nairobi. Throughout his 28 years sion of important global issues affecting the of public service, Mr. Hussein has attended postal sector and paved the way for the devel- many courses and seminars in postal manage- opment of the Doha Postal Strategy. ment, human resources, finance, administra- tion and diplomacy.

Pascal Clivaz Deputy Director General, UPU Pascal Clivaz has been Deputy Director A law graduate, Mr. Clivaz has held numer- General of the UPU International Bureau ous roles in both private and public organi- since 1 January 2013, after being elect- zations, as well as at the European Commis- ed to the position on 10 October 2012 sion in Brussels. at the 25th Universal Postal Congress He began his postal career at as a in Doha, Qatar. He was re-elected in 2016 scientific advisor responsible for finance and during the 26th Congress in Istanbul. strategy, before rising to become director of Until his election, Mr. Clivaz was director of international affairs and a member of the finance and strategic planning at the Inter- Swiss operator’s management team. national Bureau, which he joined in 2005. He led the Swiss delegation at the UPU A Swiss citizen from the alpine canton of Council of Administration and Postal Oper- Valais, Mr. Clivaz has 17 years’ experience ations Council sessions between 2000 and working in the postal sector and the UPU. 2004.

20 Arkady Dvorkovich Deputy Prime Minister, Russian Federation

Arkady Dvorkovich has been Deputy Prime Trade. He has also been a consultant, senior Minister of the Russian Federation since expert, chief executive and scientific direc- May 2012. tor with the Economic Expert Group of the Russian Ministry of Finance. Previously, Mr. Dvorkovich held several high-level positions within the Russian Feder- Mr. Dvorkovich holds a Master of Economics ation, including aide to the President, Head from both the New Economic School and Duke of the Presidential Experts’ Directorate and University. Minister for Economic Development and

Rashid Ismailov Deputy Minister of Telecommunications and Mass Media, Russian Federation

Rashid Ismailov was appointed as the Russian Prior to his appointment to the Ministry, he Federation’s Deputy Minister of Telecommunica- served as Vice President for services, procure- tion and Mass Media in 2014. He worked previ- ments and supplies with Huawei Technologies ously as Director of the Ministry’s International in the “” region, which included Russia, Cooperation Department. Ukraine, Belarus and Armenia. Mr. Ismailov has engaged in the telecommuni- Mr. Ismailov studied history at the Lomonosov cations sector since 1998. Between 1998 and Moscow State University (MGU) and later went 2005, he held executive positions with Ericsson on to earn his master’s degree in Economics Russia. Subsequently, he joined Nokia Siemens and Corporate Management from the Moscow Network Russia as head of the service admin- State Machine Manufacturing University. Be- istration for the Russian region and sat on the tween 1988-1991, he was a faculty member at company’s Board. In that capacity, Mr. Ismailov the Moscow Institute of Chemical Engineering. led an integration team for the Northeastern re- gion (Scandinavia, the Baltic countries, the CIS and Turkey) for Nokia Networks in the process of its merger with Siemens Com.

Nikolay Podguzov CEO, Federal State Unitary Enterprise “Russian Post” Nikolay Podguzov was appointed to the Mr. Podguzov has extensive experience in position of CEO of Russian Post in July the financial sector, having worked as Vice 2017. Before moving to the postal industry, President of Trust Investment Bank and Mr. Podguzov worked as the Deputy Minis- Renaissance Capital. He has also worked ter of Economic Development of the Russian for VTB Capital as Head of Fixed Income Federation. Strategy. Earlier, Mr. Podguzov held other positions in Mr. Podguzov holds degrees from Saint various state institutions, including the Ministry Petersburg Institute of Technology and Moscow of Finance and the Government of the Russian State Institute of International Relations. Federation.

21 Rohana Abeyaratne Postmaster General, the Department of Post, Sri Lanka

Rohana Abeyaratne has been Postmaster Gen- Secretariats, National Gem & Jewellary Author- eral since 2012. Mr. Abeyaratne is an officer ity, Ministry of Tourism, Ministry of Economic belonging to the Sri Lanka Administrative Ser- Development and foreign funded projects. vice (Special Grade) with more than 20 years He also works as a member of the Board of Di- experience in administrative service with various rectors of the Social Security Board of Sri Lanka disciplines. Mr. Abeyaratne has been working and a member of the Board of Directors of Gov- for different government organizations such ernment Pensioners Provident Fund. He is a visit- as the Provincial Council, Ministry of Industries, ing lecturer for the Institute of Human Resource Land Commissioner’s Department, Depart- Advancement of University of Colombo. ment of Immigration and Emigration, Divisional

Usamah Mohammed S. Altaf Acting President and CEO, Saudi Post Corporation

Dr. Usamah Mohammed S. Altaf was appointed Before joining the Post, Dr. Altaf worked as President of Saudi Post in 2016. He also serves General Manager of the National Company for as the Chairman of several boards, including those Data and Integrated Solutions (Part of Atheeb of Naqel Company for Transport and Logistics, the Group). He also served as Director of the Computer Ersal Money Transfer Company, the EMS Company Department for the Ministry of Defense, Director and Postal Services Company. of Research and Development at the General Directorate of Technical Affairs. Dr. Altaf formerly served as Vice President of the Saudi Post for Transformation and was an adviser to the Minister of Communications and Information Technology. He also served as Vice President of Technical Affairs and Information Technology.

Mark Barnes Group CEO, South Africa Post Office

Mark Barnes was appointed CEO of the South operation in South Africa and as Chairman of African Post Office in January 2016. the South African Futures Exchange. Mr Barnes is currently the Chairman and a significant Mr Barnes has more than 30 years of experience shareholder in the Purple Group. working as a leader in the South African financial service market, having previously held leadership Mr Barnes holds a Business Science degree in positions with Standard Bank, Capital Alliance Actuarial Science from University of Cape Town and Brait. He has had a wide exposure to financial and a certificate from the Harvard Business School’s markets previously as head of the biggest treasury Programme for Management Development.

22 Kenan Bozgeyik Director General and Chairman of the Board, Turkish PTT Corp.

Kenan Bozgeyik graduated from the Eskişehir He has also served as Head of the Research Anadolu University Department of Finance. He Planning and Coordination Department and has fulfilled various senior positions in many Under Secretary of the Ministry of Family and public administrations such as the Ministry of Social Policies. Environment as inspector and adviser to the He was appointed CEO and Chairman of the Minister, the Grand National Assembly of Turkey Board of Turkish PTT Corp. on 31 March 2016. as adviser, the Ministry of Health as Head of Mr. Bozgeyik currently represents Turkey as Research Planning and Coordination Department Chairman of the UPU Council of Administration. and Head of Strategy Department, the Ministry of Transport, Maritime Affairs and Communication.

Moez Chakchouk Chairman & CEO, La Poste Tunisienne

Moez Chakchouk was appointed Chairman and and CEO of the Tunisian Internet Agency in CEO of the Tunisian Post in April 2015. He began February 2011 after the Tunisian revolution. his career in the late 1990s as a research engineer Mr. Chakchouk graduated from the Higher School in the Tunisian Center of Telecommunication of Communication of Tunis (Sup’Com) in 1998. Studies and Research and as a member of PINA RD. In 2002, he became the chief of RACINES RD. He later received his M.S in telecommunications from ENIT School and obtained his PhD in He joined the Telcos Regulation Authority (INT) in telecommunications under a joint programme 2005 as chief of technical department and was between El Manar University and Paris Descartes later promoted to Head of Interconnection & University in 2009. Access. Mr. Chakchouk was appointed Chairman

Nabi Issa Coulibaly Director General, Société national des postes (SONAPOST)

Prior to his appointment as head of the Post, Mr both commercial and analytical, within the bank. Coulibaly spent 12 years with Ecobank Burkina, These included regional director, responsible the leading bank in Burkina Faso, a subsidiary for business development and value chain, and of the Ecobank Transnational Incorporated (ETI) chargé d’affaires for SMEs and individuals. group. He previously worked as head of the private Mr Coulibaly is a financial actuary, having banking department, responsible for implementing graduated from the Higher Institute of Statistics the modernization and development strategy of and Applied Economics in Morocco (INSEA). the banking branch for individual clients in the emerging and high-income category. Prior to this, he held several other positions of responsibility,

23 Ivan Culo President of the Board, Croatian Post

Ivan Čulo was appointed CEO of the Croatian mental business operations, he has been active- Post in January 2017. He previously held the ti- ly involved in the company’s other important tle Executive Director of the Board of Directors, strategic projects. where he formally managed the Post Division. Mr. Čulo completed his formal higher education He has been with Croatian Post since 1997 and while working at Croatian Post. He was enrolled has worked during the past 20 years on all pro- at the University of Zagreb, Faculty of Transport cesses and tasks undertaken by Croatian Post. and Traffic Sciences, where he received his BSc Mr. Čulo has been directly participating in the in Traffic Engineering. He also attained the ti- strategic part of the company’s operations as a tle of University Economy Specialist following member of the higher management team for the completion of postgraduate studies at the more than eight years. Even though his respon- University of Rijeka. sibility has always been associated with funda-

Gabriel Di Bella IMF Resident Representative for the Russian Federation

Gabriel Di Bella is the International Monetary His research has mainly focused on debt sustain- Fund’s Resident Representative for the Russian ability, real exchange rates, and programme de- Federation. Previously, he served as desk econo- sign in low-income countries. Before joining the mist for the U.S. as well as other emerging and Fund in 2002, he worked in an economic and low-income economies, and as IMF’s Resident financial consulting firm in Buenos Aires. Representative in Nicaragua. Mr. Di Bella is an Argentinean national and holds a PhD in Economics from the University of Wisconsin-Madison.

Essam Mohamed El Saghir Chairman, In the Middle East and North Africa, Essam ments that meet the highest quality and control El Saghir is considered a prominent expert in standards, as well as reducing operational costs. developing and automating postal and logisti- Mr. El Saghir has participated in several strategic cal services. In 2015, he was appointed as the projects for developing postal systems in many Chairman of Egypt Post, where he is responsible countries worldwide, such as Japan, Germany, for leading the Post’s transformation. Switzerland, England, Ireland, India and Den- Mr. El Saghir is known for his visionary develop- mark. He is board member of Post for Invest- ment strategy. He has led projects which have ment, Post for Systems and Post for Delivery. taken the Post from a loss of 450 million EGP He holds several regional and international cer- to net profit of 4 billion EGP over the last two tificates in information technology, and elec- years. His mandate also includes developing tronic systems design and development. advanced e-services provided by smart govern-

24 Isaac Gnamba-Yao Director General, La Poste de Côte d’Ivoire

Isaac Gnamba-Yao joined La Poste de Côte Prior to eTranzact Global, Mr. Gnamba-Yao held d’Ivoire in 2011 as Deputy Director General, lat- senior account executive positions and sales er becoming Director General in 2016. manager positions in both the Windows Mo- bile platform industry (i-mate Dubaï) as well as Before joining La Poste de Côte d’Ivoire, Mr. the Mobile Network industry (Moov, Orange & Gnamba-Yao brought to eTranzact Global MTN). He was responsible for the introduction his vast sales experience in French Africa. He of i-mate brand into the African market and worked in various divisions within the eTranzact worked closely with many of i-mate’s Top dis- Group, having been involved in IT, Operations, tributors in 34 African countries and Malta. Finance, HR and Marketing.

Zoltán Illés Chairman and CEO,

Zoltán Illés was appointed Chairman and CEO with ABN AMRO (formerly KBC Group in Hun- of Magyar Posta (Hungarian Post) in 2016. gary), including Head of Retail Sales – Managing Director. Mr. Illés has spent the majority of his career in the banking sector, having worked previously Mr. Illés holds a BA in Economics from Budapest with OTP Bank as Member of the Board of Di- College of Finance and Accountancy (Budapest rectors and CEO of the bank’s Russian branch Business School), an MSc in Quality Manage- and before that as Managing Director of the Re- ment from Budapest University of Technology tail Sector Directorate at OTP Bank Hungary. He and Economics and a Global Executive MBA has also worked as Director of Quality Manage- from INSEAD. ment with Erste Bank and held several positions

Lyudmila Kononova Deputy Chairman, Committee of the Council of Federation for Social Policy, Russian Federation

Lyudmila Kononova is the Deputy Chairman of Regional Assembly of Deputies of the sixth the Committee of the Council of Federation for convocation on a non-permanent basis. Social Policy in the Russian Federation. Ms. Kononova has an educational back- Previously, Ms. Kononova worked as the Dep- ground in history, socio-political science, law, uty Governor of Region for Social economics and historical sciences at the M.V. Affairs and as a member of the Arkhangelsk Lomonosov Pomor State University.

25 Khaled Lahham Director General, (JPC)

Khaled Lahham is a senior professional with the growth of the private sector in Jordan. As more than 20 years of experience holding po- the Secretary General at the Ministry of Infor- sitions in different governmental and interna- mation and Communications Technology, he tional organizations. Throughout his career he helped establish a competitive environment to has held leading positions, including Secretary support private sector investments in ICT and to General and Deputy Secretary General for the find opportunities to link international compa- Ministry of Information and Communications nies with local Jordanian businesses. Technology for Financial and Administrative Mr. Lahham holds a PhD in Finance and has Affairs. He was also Secretary General for the completed numerous training courses on public Ministry of Public Sector Development, where policy, leadership, business management and he played an active role in public sector reform. government financing. While Mr. Lahham has spent much of his career in public service, he has also supported

Joel L. Otarra Postmaster General and CEO, Philippine Postal Corporation

Joel L. Otarra has been the Postmaster General social marketing, having held various con- and CEO of the Philippine Postal Corporation sultancy positions in government and private (PHLPost) since 2016. Mr. Otarra was formerly organizations. Director of the PHLPost Board of Directors. Mr. Otarra studied economics at Asian Social Before joining PHLPost, he chaired the Center Institute and theology at St. Francis Xavier for Integrated Development and Social Mar- Major Seminary, Davao City. He holds a keting (CIDS), Inc. from 1996-2015. Mr. Otarra Bachelor of Arts in Philosophy from Notre Dame has a solid background in management and of Marbel University, Koronadal City.

Stéphanoel Razafimanantsoa Director General, Paositra Malagasy

Mr Stéphanoel Razafimanantsoa is the Director During his years of service, he has also actively General of Paositra Malagasy, the designated participated in various meetings and workshops operator of Madagascar. organized by the and the Pan African Postal Union, including Con- Before his appointment as head of Madagas- gresses, Strategy Conferences, Plenipotentiary car Post, he had various responsibilities within Conferences, and quality of service forums and the postal sector, such as Head of the Postage workshops. Stamp Supply Centre, Head of the Sorting Cen- tre, and in particular, Interregional Director of He holds a Chief Postal Inspector diploma. the Post in the province of Antananarivo.

26 ZHANG Ronglin Vice President, China Post Group

ZHANG Ronglin, born in December 1959, is the as the Managing Director of China Post Group Vice President of China Post Group. (Hubei Branch) and the Chairman of China Post- al Express and Logistics (Hubei Branch). In 2011, Mr. Zhang began his career in 1978. From 2001, he became the Managing Director of China Post he has been the Deputy Director General of Bei- Group (Jiangsu Branch) and the Vice Chairman jing Municipal Postal Administration. In 2003, of China Postal Express and Logistics (Jiangsu Mr. Zhang was promoted as the Director of Pub- Branch). In 2012, he was promoted as the Vice lic Services Department, . In President of China Post Group. 2006, he joined China Post Group as the Man- aging Director of Marketing Department and Mr. Zhang holds a PhD in Economics and is a top Postal Services Bureau. A year later, he worked level senior engineer.

Gilarsi W. Setijono President Director, PT Pos Indonesia (Persero)

Gilarsi Wahyu Setijono is an experienced pro- Before being appointed as head of the Post, Mr. fessional who has held key positions in sever- Setijono held the position of CEO of PT Shafira al leading global companies. He has served as Corporation Enterprise and is considered a key Business Excellence Director of Philips Lighting figure behind the revival of the fashion retail Asia-Pacific and Managing Director of Merrill company. Lynch Investment for the Thailand, China and Philippines region. In 2015, Minister of State- Owned Businesses Rini Soemarmo appointed Mr. Setijono as President Director of PT Pos In- donesia (Persero).

Ingimundur Sigurpálsson Managing Director & CEO, Iceland Post

Ingimundur Sigurpálsson has served as a Man- He holds a Cand. Oecon degree from the Uni- aging Director and CEO of Iceland Post since versity of Iceland and pursued graduate stud- 2004. He has decades of experience in business, ies in economic development and planning at both in the public and private sector. Mr. Sig- George Washington University in Washington, urpálsson has served in number of roles for cor- D.C. and DBE from Columbia Business School, porations, public and private, including director New York, USA. positions and management.

27 Rubina Tayyab Director General,

Rubina Tayyab has the honour of being the first the National School of Public Policy, the premier female Director General of Pakistan Post. She training institute for the senior civil servants of was appointed Director General of the Pakistan Pakistan and friendly countries. She has rep- Post in November 2016. Before taking over as resented Pakistan at various international fora Director General, she worked as the Postmaster and is an Elected Member of the Management General , Pakistan’s largest province. She Committee of the International Services has also worked as Additional Director General User Group (IMSUG). (Operations). She chairs the Postal Services Management Ms. Tayyab is a civil servant and has worked in Board, the highest decision-making body of the various staff, command and instructional posi- Pakistan Post. tions. She has remained a member of faculty of

Amin Benjelloun Touimi Director General, Poste Maroc

Amin Benjelloun Touimi has been the Director Specialized Financial Services. Between 1990 General of Poste Maroc since October 2009. He and 2003 he had assumed several responsibil- has chaired the Board of Al Barid Bank (postal ities within the former Wafabank and its sub- bank) since its creation in 2010. sidiaries, including as Secretary General in 1999. Before his appointment as head of the Post, he Early in his career, he worked as a lecturer at led a career of nearly 20 years in the banking several Parisian universities including Paris Dau- group Attijariwafa Bank where he was appoint- phine (1987), and has a PhD in Statistics from ed in 2004 as a Member of the Group Executive the University Paris VI. Committee and Deputy Managing Director of

Philippe Wahl President and CEO, Le Groupe La Poste

Philippe Wahl was appointed President and CEO the Bolloré Group. Mr. Wahl was also the Depu- of Le Groupe La Poste in September 2013, has ty CEO of Compagnie Bancaire, and member of been chairman of the La Banque Postale Execu- the Executive Committee with Paribas. He was tive Board and was Deputy Chief Executive Offi- the Chief Executive of the Caisse Nationale des cer of Le Groupe La Poste. Caisses d’Épargne (CNCE). Mr. Wahl was the CEO () of the Royal Philippe Wahl holds a Masters’ Degree in Eco- Bank of Scotland, adviser to the RBS Global nomics and is a graduate of the Institut d’études Banking and Markets Board in London, and lat- politiques and the Ecole nationale d’administra- er the CEO for RBS France, Belgium and Lux- tion. He also served as a specialist adviser re- embourg. sponsible for business, financial and tax affairs at the office of Prime Minister in Previously, Mr. Wahl has been the Chief Execu- 1989. tive of the Havas Group and Vice Chairman of

28 David Walsh CEO, New Zealand Post David Walsh was appointed to the role of Chief His professional background also includes Chief Executive Officer from 1 May 2017. Prior to that Operating Officer and Chief Financial Officer at time Mr. Walsh held the position of Chief Finan- the New Zealand Racing Board, and senior fi- cial Officer, having joined the organization in nance roles at Fonterra, TransAlta, and Shell Oil February 2015. New Zealand. Before joining New Zealand Post, Mr. Walsh held the positions of General Manager Corpo- rate and Finance and Chief Financial Officer at KiwiRail.

MODERATORS Tatiana Alex Taylor Stolyarova TV and Radio TV journalist Journalist

One of Russia’s most recog- Alex Taylor is one of the most nizable TV journalists, Tati- experienced events hosts in ana Stolyarova has for sev- Europe, having presented eral years anchored prime more than 700 events over time news at Russia24, the a period of 15 years around most popular TV channel in the world. He has hosted all the country. Her experience types of conventions, confer- includes hosting business ences and ceremonies, both and economics shows such corporate and institutional, as Personal Account and Business Vector. She also co-hosted the together with a wide number Channel’s most popular weekly show Vesti with Sergey Brilev. of ceremonies, mainly in Europe but also throughout the world. Tatiana’s experience at Russia24 included dozens of prime time He has produced and presented a wide range of programmes about interviews with the , top level members of the Europe, mainly on French television and radio, but also for the BBC Russian and foreign governments, as well as with numerous in- and VOX TV in Germany. He was also Programme Director of Radio ternational CEOs. As a moderator, she hosted panel discussions France Internationale. Currently he hosts I-Talk on Euronews, inter- at high level international events, including the St Petersburg Eco- viewing Europe’s leading policy-makers in the European Parliament. nomic Forum and the Transformation Summit under the President Alex has vast experience of dealing with all kinds of personalities and of . situations, ranging from the Queen of England, President Clinton, She began her career as editor and reporter at the MIR Interna- Nelson Mandela and various Prime Ministers, to company managers tional Network following graduation from the Finance Academy in but also people with less experience being on the stage. He has also Moscow where she majored in Economics. A fluent English speak- written several books, including one on the wonderful untranslat- er, she also studied Filmmaking and TV Production at New York ability of languages. University.

29

KEY TAKEAWAYS FROM THE DISCUSSIONS 32 CEOs engaged very openly in the discus- However, they also indicated that the task Global dynamics sions during the forum. They provided of the state is to stimulate the develop- numerous examples of situations faced by ment of new technologies, while ensur- Economic growth and trade are back their organizations, which found an echo ing that it benefits society. The postal sec- on track, in spite of persistent risks in the audience. tor can play a role in this. They reminded According to Mr Clivaz, UPU Deputy the audience that the Post is everywhere The programme was conceived in a Director General, one key trend is clear: in Russia, and that it is indispensable to cit- way that enabled those present to first world economic growth and trade are back izens. Mr Podguzov, CEO of Russian Post, exchange on the key trends affecting the on track. This was also the message from reinforced that message even further. As world economy and the sector (Panel 1). Mr Sigurpálsson, Managing Director and he pointed out, with 42,000 branches The focus then shifted towards under- CEO of Iceland Post, who also pointed out across the country, Russian Post covers the standing the needs of the key stakeholders that the new Arctic Route would contrib- entire country and constitutes one of the of Posts, i.e. customers (Panel 2) and gov- ute to lowering trade costs in the future. biggest postal networks in the world. In ernments (Panel 3). The discussion that fol- the remotest areas, it is the only noticeable Mr Di Bella, the IMF Resident Representative lowed was aimed at evaluating the extent public presence. for the Russian Federation, expanded fur- to which Posts are meeting these needs ther on the comments of other speakers by (Panel 4). In the subsequent panels, par- As mentioned by Mr Hussein, UPU Director highlighting the fact that the momentum ticipants were invited to share experiences General, and as concurred with by the for economic growth is present both in about the strategies and solutions that hosts, in finding solutions for existing chal- advanced and emerging economies, with have proved successful in allowing their lenges, the CEO Forum, an event which global projections of 3.5% in 2017 and organizations to move forward (panels 5 is restricted to the industry’s top lead- 3.6% in 2018. Lower rates in the United and 6). ers, constitutes a unique opportunity for States of America are expected to be com- postal operators to benchmark with their This section on key takeaways divides the pensated by higher-than-expected growth peers. It also plays an important role in the matters discussed by topic, rather than by in Europe. He also added that inflation thought leadership process that underpins panel, so as to better highlight the critical rates remain below target and that long- the development of Agenda 2030 for the ideas that were brought forward by the term interest rates in the United States are sector and a strategy for the UPU in the speakers and the audience. decreasing. future cycle. Nevertheless, Mr Di Bella noted that the positive outlook also comes with a num- Key takeaways Starting basis ber of considerable risks and downsides, One of the first messages that underpinned • Technological transformations such as credit expansion in China (People’s the opening session of the forum was that are bringing new opportunities Rep.), uncertainty surrounding U.S. policy, technological trans-formations represent and risks for Posts. and potential back-pedalling in financial supervision. both risks and opportunities for Posts. As • However, Posts have retained pointed out by Mr Dvorkovich, Deputy their role as a network for Prime Minister, and by Mr Ismailov, Deputy public services. Minister of Telecommunications and Mass Media of the Russian Federation, pervasive • The CEO Forum is a great digitalization is transforming the way mod- tool to benchmark and feed ern societies function, thus impacting the into the agenda 2030 for the Posts. postal sector.

33 E-commerce and light logistics a paradigm shift was happening on the the 4 to 5 million Moroccan nationals liv- are exploding understanding of trust. ing abroad, who represent a tremendous potential demand for remittances. Another In the words of Mr Wahl, President and This echoed a comment from Mr Wahl, example cited was that of France, where CEO of Groupe La Poste, “e-commerce who highlighted the growing demand for the demand for personal care provided by and light logistics are exploding”, growing digital trust, with customers in search of a La Poste is already fully integrated into the at unprecedented rates thanks to transfor- trusted custodian for their personal data, a organization’s strategy and catalogue of mations in technology and the new con- role that Posts can play. products and services. sumption and production models that With regards to 3D printing, the perception come with it. He added that this trend of speakers was that this new trend would constitutes a once-in-a-lifetime opportu- Regions with a demographic dividend not push Posts into irrelevance. According nity for Posts, who have the right people can only seize opportunities if they to Mr Wahl, even in 30 years’ time, cus- and the right systems to respond to this engage in reform tomers would still need things to be deliv- new demand. Other speakers agreed, but ered, which means that there would still be Mr Di Bella cautioned participants about Mr Sigurpálsson also raised a concern: the a need for personalized services from the the real prospects for growth in trade in new markets emerging from e-commerce Post. future. As he pointed out, there is a demo- are very competitive, thus reducing the graphic dimension to be considered when relative opportunity for traditional postal analyzing the expansion of markets. In his Demographic trends are also creating operators. view, if one looks at global trade, there is demand for new services a tendency for it to decrease in the long A number of critical macro trends are According to the United Nations, the global term. This is because trade in past decades associated with technology number of refugees and international has grown mostly as part of a process of migrants has jumped from 172.7 million in diffusion, as large portions of the world’s Technology has impacted the postal sec- 2000 to 243.7 million in 2015. Populations population have grown wealthier. This may tor like never before. As mentioned by Mr are also ageing. As indicated by the World signal that the world may have reached Zhang, Vice President of China Post Group, Economic Forum, based on UN population a plateau as far as growth in trade is patterns of communication have changed, projections, the proportion of people aged concerned. moving from the old binary person-to-per- between 15 and 64 – the ones most likely son exchange to new item-to-person and In this sense, his view was that the growth to be in the labour force – reached a peak item-to-item exchanges. This in turn has of e-commerce should not be taken for in 2012, at 65.8%. In future, this share is paved the way for big data and artificial granted, since some hurdles remain (e.g. expected to decrease, while the propor- intelligence. gaps in infrastructure, insufficient trust and tion of elderly (i.e. people over 65 years of payment facilities). In order to ensure trade Mr Setijono, President Director of PT Pos age) is set to increase. By 2050, the elderly continues to grow in emerging regions, Indonesia (Persero), talked about his view could account for 16% of the global popu- especially those in which the demographic that societies are becoming more complex, lation, up from 5% in the 1960s.1 transition has not yet been finalized, with markets shifting from the old gener- These demographic trends have created reforms are needed. ation to the new, placing greater empha- both supply and demand for new inclu- sis on sharing. In this context, he noted sive services, such as remit-tances or per- blockchain technologies, which have been sonal care. Using his country as an exam- spreading beyond the postal sector. He ple, Mr Benjelloun Touimi, Director General also stated that, because of digitalization, of Poste Maroc, highlighted the example of

1 World Economic Forum (2015), “How are global demographics changing?” https://www.weforum.org/agenda/2015/ 10/how-are-global-demographics-changing/

34 Key takeaways A more demanding customer, in spite brought attention to the fact that, in spite of regional disparities of growing rates of Internet penetration • Economic and trade growth are in all parts of the world, least developed back on track, in spite of per- As acknowledged by many speakers at countries are still trailing behind. In many sistent risks. the forum, technology has created a “new regions of these countries, digitalization breed of customers”. According to Mr • E-commerce and light logistics still remains a theoretical construct. Benjelloun Touimi, this new customer is are exploding thanks to vari- young and places a premium on digital and ous macro trends triggered by mobile services. In China, for instance, as A more demanding government: technology. highlighted by Mr Zhang, the population deliver public services in the most effi- cient way • Among these macro trends are is increasingly inclined to use electronic new consumption models, 3D tools for financial transactions. According As global dynamics impact the postal sec- printing, blockchains, big data, to Mr Setijono, the notion of the walk-in tor, the expectations of governments are no privacy concerns, and the high customer has all but disappeared. The digi- less demanding than those of customers. demand for trusted transactions. tal channel is now the prime route to reach clients. Although the realities of traditional postal • Demographic trends are also cre- operators may be different from one coun- ating demand for new services. But young, mobile and digitally savvy cus- try to another, and as privatization and lib- tomers are also demanding a greater say eralization take hold in many regions, the • However, regions with a demo- in the service they get. In the words of role of Posts as vectors of public service graphic dividend can only seize Mr Walsh, CEO of New Zealand Post, it remains as strong as ever. opportunities if they engage in is all about “choice and control”. In this, reform (financial inclusion, infra- he concurred with Mr Razafimanantsoa, As mentioned by Ms Kononova, First structure, etc.). Director General of Paositra Malagasy, Deputy Chairman of the Committee on who said that new generations no lon- Social Policy of the Federation Council (the upper house of the Russian Parliament), Stakeholder needs ger take the Post into account in their con- sumption portfolio. Posts in Russia are perceived as a state body In considering how to seize opportuni- rather than as an enterprise. For those in Even if customers are becoming more ties and mitigate risks in an age of perva- the remotest areas of the country (nearly demanding in new areas, Mr Coulibaly, sive technology, postal operators would 30% of the population lives in rural areas), Director General of Société nationale des gain from improving their understand- the Post is the only government body deliv- postes in Burkina Faso, believes that the ing of how the needs of their key stake- ering public services and providing access needs are relatively simple: get basic ser- holders, especially customers and govern- to the Internet. vices at the needed quality. In the same ments, may have changed over the years. vein, Mr Benjelloun Touimi expressed the Mr Benjelloun Touimi and Mr Gnamba- Two panels were specifically devoted to view that compliance with initial commit- Yao, Director General of La Poste de Côte this exercise, but the idea was also raised ments (i.e. predictability of delivery) is more d’Ivoire, also highlighted the social role in other discussions during the forum. This valued than speed. that Posts have to play. Their view is that allowed the audience to develop an idea traditional operators are seen by govern- of the typical profiles of today’s postal cus- However, while it is possible to find com- ments as partners in promoting social and tomers and governments, while acknowl- monalities among customers in the age of economic development, and are tasked edging that regional and economic dispari- pervasive technology, one should not for- with innovating and facilitating the life ties need to be taken into account. get that some regions have much bigger of citizens. Mr Barnes, CEO of the South challenges to overcome. Citing his coun- African Post Office, also stressed that Posts try as an example, Mr Razafimanantsoa in developing countries such as his should

35 be a tool in the fight against inequal- Mr El Saghir, Chairman of the National Key takeaways ity, contributing to the creation of a mid- Post Organization of Egypt, pointed out • Customers are much more dle class and of an extended tax base for that the key government expectation in his demanding: right here right governments. country is that the Post constitute a plat- now, digital and mobile, and form for delivering public services to over Examples abound of government expecta- choice and control are just some 90 million citizens nationwide. tions regarding the Posts’ role in promoting of the buzzwords that describe inclusion. For instance, as explained by Mr But while most governments have high this new pattern, although some Gnamba-Yao, small farmers in Africa need expectations regarding the role of postal disparities persist between the help of the Posts in order to have access operators in promoting and delivering pub- countries. to fertilizers. As indicated by Ms Tayyab, lic services, they also require a high level • Governments say “make your Chairman and Director General of Pakistan of efficiency and competitiveness from tra- own money, but make things Post, the government of her country has a ditional Posts. Several postal CEOs believe that don’t make money”. strategy for financial inclusion and it sees there is a contradiction in the demands the Post as playing a key role in that area. of governments: on the one hand, tradi- • For Posts, the public service ori- Using Jordan as an example, Mr Lahham, tional Posts are asked to be efficient and entation is more important than Director General of Jordan Post Company, profitable, while on the other hand, they the commercial. There is a spe- outlined the breadth of public services are asked to be everywhere and to cover cial role for Posts, not only in expected to be delivered by his organiza- unprofitable activities associated with the rural areas. tion, from helping the 75% of the popu- universal service obligation. The catch • The Posts should help build a lation currently unbanked, to providing phrase was “governments say: make your middle class and an extended health access points in remote areas. own money, but make things that don’t tax base. make money”. Mr Lahham also added that Posts are usually perceived as being part of the In this trade-off between profitability and national identity, mainly for historical rea- public service, the balance seems to shift sons, a view shared by his colleague from towards the latter. As explained by Ms Hungary, Mr Illés, Chairman and CEO of Kononova, for Russia, although the com- Magyar Posta. The role of the postal sector mercial aspect has increased in impor- thus has a political dimension on top of the tance, the public service mission remains social one. Using the same logic, the most critical one. Mr Barnes too said that, in South Africa, making a profit is not the prime role of the Post. Although the public service imperative was the predominant focus among partici- pants, some postal operators, such as New Zealand Post, placed a relatively higher pre- mium on efficiency and profitability.

36 Are traditional post offices have access to the Internet. had been extremely reluctant to use the Mr Barnes noted that, in South Africa, the Post (“you never use a post office unless postal operators economic demise of the traditional oper- you have to”). In his assessment, the image meeting these needs? ator in 2014 had a very negative impact has considerably changed. To illustrate his Changes in the needs of customers and on the brand. The biggest issue was that point, he noted that 8% of his total cus- governments have become obstacles to the basic service was not ensured, damag- tomer base was from category A (i.e. high traditional operators in an unprecedented ing the perception that the Post could be earners). a trusted interface. Mr Benjelloun Touimi way. Are they up to the challenge? This According to Mr El Saghir, this has been also highlighted the challenges facing question permeated discussions through- achieved by changing operations and the Posts in managing the “postal ecosystem” out the forum, particularly in Panel 4. customer journey. Mr Illés also added that and catering to the needs of all stakehold- traditional Posts managed to remain rele- ers, including e-retailers. Responding to customer needs vant thanks to both their historical role and In spite of the challenges, in the view of their physical presence. He went on to say Although experiences varied from one many CEOs present at the forum, the Post that “there is a buzz around digitalization; country to another, the overall perception remains a key partner for businesses. In the Internet will not deliver”. On a similar was that traditional postal operators have support of this claim, Mr Razafimanantsoa note, Mr Podguzov pointed out that the been struggling to fully meet the demands noted that, in his country, the traditional Internet of Things cannot replace every- of increasingly demanding customers. operator manages to reach even the thing. He gave the example of Russian As pointed out by Ms Tayyab, “there is a remotest places, prompting even e-re- Post, for which parcels already represented growing gap between expectations and tailers to partner with the firm, especially 60% of total business. actual delivery”. Citing the example of for domestic delivery. Similarly, Mr Walsh Pakistan, she showed how com- spoke positively about the reduction in the panies have indirectly created a bench- Operating effectively number of delivery days, which in his view mark for traditional operators, expos- has not altered the positive image that the A general concern is that Posts are strug- ing gaps and triggering growing pressure Post enjoys in his country. gling to understand the digital and mobile from politicians and the general public. needs of the new genera-tion. As explained She stated that the image of Pakistan Post Mr Čulo, President of the Board of Croatia by Mr Podguzov, the problem with tra- had been tarnished by competition, but Post, said that he had managed to build ditional Posts was that they grew com- that some level of loyalty had been main- a strong brand and that the Post also placent and did not react to market chal- tained. The current impression is that the extended help to small businesses. Citing lenges. According to Mr Benjelloun Touimi, operator is delivering, but perceptions have figures from an estimate made by his firm, postmen have not yet fully adjusted to the yet to fully change. On a similar note, Mr he indicated that 94% of the customers of new situation. Mr Čulo echoed this con- Setijono explained that Indonesian cus- Croatia Post are satisfied with the service. cern, pointing out that it is very difficult tomers are not using post offices to deliver He also highlighted the fact that popula- for workers to switch to the new skill set remittances. tions in rural areas and cities alike have a required. Mr Setijono reported that, in positive perception of postmen. He went The mismatch between customer demands Indonesia, the average age of postal staff is on to say that customers have a choice, and service delivery by the Posts is multi- 46, making it potentially harder for them to with at least ten other companies offering faceted. As mentioned by Mr Chakchouk, unlearn past practices. Mr Coulibaly raised similar services, yet they still turn to the tra- Chairman and CEO of La Poste Tunisienne, another issue, related to African countries, ditional operator. traditional postal operators are not very well where Posts contribute to job creation but positioned in the digital world. This echoes Mr El Saghir highlighted another example where, in his view, the unions may drain a comment by Mr Razafimanantsoa, who of improvements in customer perception. the energy that could be invested in ensur- pointed out that, in Madagascar, only 50 He stated that, in the past, clients in Egypt ing the core work. Ms Tayyab summa-

37 rized the situation by stating that resources Reconciling profitability and the public Key takeaways are the key challenge: while subsidies are service imperative • Posts have a product portfo- decreasing, expenditure is increasing and Mr Podguzov, citing the example of Russia, lio unaligned with the needs revenues are stagnating. showed that the Posts are highly trusted. of customers. This model is In terms of enabling connectivity, Mr In many places, post offices are one of the not adapted to the local real- Barnes highlighted the fact that the Post only vectors of public service, a comment ity. They also face challenges in in South Africa has a huge infrastructure, seconded by his colleague from Jordan, articulating their value proposi- with airports and hubs. However, for it to Mr Lahham, who added that the Post has tion to customers. work properly, it needs to operate at high focused on improving customer satisfac- • Postal staff do not seem to be volumes. tion and expanding financial services in ready for the transformation Mr Otarra, Postmaster General and CEO rural areas. However, infrastructure costs required to change the brand of of the Philippine Postal Corporation, spoke remain high, and there is a lack of govern- the Posts. of the situation in the Philippines, where ment support, with rural areas being ser- • In addition, Posts face insuffi- the Post faces many significant challenges viced at a loss. cient financial and political sup- owing to its particular geography as an As highlighted by several forum partici- port from the government and archipelago. pants, balancing profitability and the pub- related difficulties in covering Mr Benjelloun Touimi recognized that, lic service imperative is a challenge for most the universal service obligation. in order to remain leaders in logistics, Posts. As explained by Mr Zhang, Amazon Posts need to manage the ecosystem and and other e-retailers are very profit-ori- cater to the needs of all stakeholders. For ented. However, the China Post Group has What would be the best instance, addressing remains a big issue, the resources required to combine profit- business models for especially in rural areas. In addition, mar- ability, competitiveness and public service keting is a strong need, as identified by orientation. On the other hand, Mr Barnes ensuring success? Mr Altaf, Acting President and CEO of the pointed out that there are services, such as Saudi Post Corporation, since customers the promotion of financial inclusion, that Creating a one-stop shop for public are not generally aware of the solutions only the Posts can do. services / public service orientation offered by Posts. Changing this mind-set Mr Čulo highlighted the fact that ensur- In the view of many of the CEOs present at is the major challenge for Posts, a view ing the universal service obligation across the forum, Posts need to take stock of their echoed by Mr Abeyaratne, Postmaster 67 islands is a huge logistical challenge, assets and transform into a more natural General of Sri Lanka. The CEO of Djibouti and the subsidies offered by the govern- partner for governments. According to Mr Post also pointed out how difficult it can be ment cover only approximately 50% of Wahl, postal development needs to be part to ensure an efficient interaction between the total related costs. Ms Tayyab added of each country’s development agenda. On national Posts, especially between Africa that it becomes very difficult for Posts to a similar note, Mr Barnes said that Posts and Europe. meet expectations if governments do not should aspire to be the infrastructure of want to commit their full support. In terms choice, the place of fairness, a trusted cen- of possible solutions, Mr Illés said that, in tre and intermediary. He further explained Hungary, the use of joint ventures by the that the solution lies in ensuring that Posts Post is supported by the government if it can deliver everywhere while ensuring pre- helps fulfil the mandate in a sustainable dictability. Mr Podguzov echoed this com- way. ment, stating that the goal of Russian Post was to ensure access to at least the most

38 basic public services everywhere in the Mr Barnes explained that privatization is Posts in the world are the ones that have country. Mr Otarra pointed out that, in not the panacea for improvement, but it seized the opportunities of e-commerce, order to address current issues, the focus can be helpful in certain doses in some by delivering faster, in greater volumes has been on two areas: a one-stop shop cases. Citing the example of South Africa, and to larger audiences. He even predicted for public services, and tracking solutions. he explained that the telecommunications that automated vehicles would ensure over operator was partly privatized, with 60% 90% of delivery in the future. As pointed out by Ms Tayyab, Posts need of total shares still held by government. political support, which requires approach- One of the core features of this strate- This opening up of the organization’s cap- ing governments to raise awareness about gic repositioning through digitalization ital triggered a change in governance and the importance of the Posts. On a sim- involves developing new products and ser- culture. In the words of Ms Kononova, a ilar note, Mr El Saghir said that politi- vices. However, while diversification was law for Posts needs to be drafted in order cal and financial support from govern- generally supported by those who attended to ensure innovation and the containment ments is needed. Mr Barnes added that, the forum, the extent to which it should of losses. In this context, it is important to while talking to governments, it is import- be pursued was not necessarily perceived find a balance between profitability and ant to highlight that postal services consti- in the same way by all CEOs. Some advo- public service, while ensuring that no post tute a long-term public asset, including a cated diversifying from letters into parcels offices are closed. basic infrastructure that others cannot rep- and logistics, while others supported ven- licate easily. In this sense, he advocated turing further, into more “exotic” financial raising awareness of the fact that funds Strategic repositioning and develop- services and other products. used to sustain public services constitute ment of new products (health access, According to Mr Walsh, for instance, the an investment rather than a mere public e-documents, etc.) industry is moving into “all-about-parcels expenditure. CEOs agreed that trust remains one of mode”, with significant investments in In stressing the public service orientation of the most valuable assets of the Posts, logistical capabilities. Posts, Mr Razafimanantsoa gave the exam- but that the preservation of this compar- Mr Wahl referred to Groupe La Poste’s ple of Madagascar, where the Post has ative advantage requires a strategic posi- digital lockers, which every French citizen equipped buses with an Internet connec- tioning. Mr Bozgeyik, Director General can acquire in order to manage their digi- tion and has sent them around the country and Chairman of the Board of Turkish PTT tal identity in a secure and unified manner. in order to train the population. Referring Corp., explained that the strategy of the He also spoke about digital pay slips and to Côte d’Ivoire (Rep.), Mr Gnamba-Yao Turkish Post was to maintain the level of diplomas as examples of “traditional uses” said that the Post has created an electronic trust, while embracing digitalization and previously handled physically that La Poste counter to deliver official documents to modernization. Mr Chakchouk highlighted was taking the initiative to digitize for the citizens. He further explained that, while the example of telecom operators, where benefits of customers. talking to governments, Posts should also those market players that resisted change highlight their role in creating jobs. On a no longer exist. He thus advocated not The examples provided by Mr Wahl echoed similar note, Ms Kononova pointed out putting any brakes on technology in order the comments of Mr Zhang, who referred that, in Russia, the Post remains a 100% to seize opportunities. to China Post Group’s new electronic plat- state-owned enterprise and is the sec- Mr Gnamba-Yao said that, in this new forms, through which customers can access ond-largest public employer in the country. world, Posts will be called upon to become the full range of postal services, digitaliza- tion and delivery of magazines, postcards, Mr Podguzov pointed out that a balance a logistical player and a digital enabler. In a financial services, expense reports, tickets needs to be found between public and similar vein, Mr Altaf emphasized that Posts and much more. Mr Setijono addressed commercial initiatives. are strategically positioned to grow hori- zontally and vertically, thanks to digitaliza- the issue of financial inclusion (2.5 billion tion. He also added that the most dynamic unbanked worldwide) and taking oppor-

39 tunities to create a new postal currency This comment was in line with what many tors, it is not a question of strengthening using blockchain. Both Mr Setijono and Mr other CEOs stated. Mr Chakchouk went trust, it is about regaining the trust that Chakchouk pointed out that their Posts are further, adding that La Poste Tunisienne they have lost. experimenting with blockchain technolo- is opening up partnerships with start-ups As highlighted by several participants in the gies to ensure secured transfers. because they are more efficient. This ini- forum, it is therefore important to rebuild tiative is based on an open model for Mr Clivaz added that many Posts are diver- the image of the Posts and rebrand it. these firms to contribute to the creation of sifying into personal care services. As has new products, something that, according been seen in the Caribbean, Posts are also to Mr Chakchouk, has enabled La Poste Stronger operations, a revitalized supporting disaster risk management and Tunisienne to rebuild trust. labour force and other actions recovery. He emphasized that is because the postal sector is a human sector. Mr Wahl highlighted that Posts should not As the environment in which Posts operate fear competition, including from them- changes dramatically, strong operations, Mr Čulo echoed the views of many CEOs selves, because this would help them move including the traditional focus on quality present at the forum when he called for faster. Ms Tayyab and Mr Abeyaratne voiced of service, continue to be of the essence. more optimism about the Post. As he support for the possibility of public–pri- According to Mr Zhang, in order to remain pointed out, it is the only organization vate partnerships, and Mr Otarra explained com-petitive, postal operators have to that can serve all communities nationwide, that the Philippine Postal Corporation had speed up the mechanization of deliv- unlike major e-retailers, who are likely to already launched two joint ventures as a ery, including for rural populations. Even invest only in big, dense areas. His view way to finance corporate development in a for companies that have not (yet) totally is that Posts should invest in new streams context of tight national budgets. embraced the “all-about-parcels mode”, while preserving traditional services. the need to deliver with the right speed As noted by Mr Benjelloun Touimi, Poste Regardless of the level of diversification and predictability remains paramount. Maroc is already collaborating with e-re- pursued, CEOs also stressed the need to tailers such as Jumia. In his remarks, Mr In this transformation, the labour force has find a better balance between the digi- Walsh highlighted that New Zealand Post a key role to play. Citing the example of tal and physical aspects of the business of had created a subscription model for dif- Indonesia, Mr Setijono stated that there Posts. Mr Setijono, for instance, mentioned ferent services, in partnership with e-retail- is a need to understand the market that that, in spite of the buzz of digitalization, ers. New Zealand Post is therefore going Posts are facing, which in turn creates the the world could never go fully digital, for beyond franchising and is expanding its need to recruit enough people who speak there is a need for a physical counterpart. presence everywhere. New Zealand Post the language of the digital age, to apply On a similar note, Mr Walsh said that the is also partnering with local businesses to technology, and to build the organization’s postal sector has a tremendous opportu- improve its logistics. strategy. He explained that, in a recent nity to seize in making the link between experiment, Pos Indonesia gave a group of the physical and digital dimensions. 25 year olds the opportunity to run a post Rebranding and awareness-raising office by themselves. Within five months, Public–private partnerships, partner- As pointed out by Mr Wahl, it is up to Posts there had been a significant increase in ships with start-ups to build new prod- to make sure they can seize the opportu- revenue. ucts, and joint ventures nities and build a new dream for custom- Mr Coulibaly pointed out that the success- ers. This is a long process that takes time to During his remarks, Mr Chakchouk said ful countries are the ones that have inte- build, hence the need to start very quickly. yes to coopetition and yes to diversifica- grated the cultural dimension into their On a similar note, Mr Chakchouk explained tion, and emphasized that there is no need development. According to Mr Altaf, that trust is crucial, and since Posts do not to “reinvent the wheel”. He thus advo- knowing how to shift employees is critical have it, they need to rebuild it. He men- cated resorting to partnerships instead. for Posts. If the company engages in hor- tioned that, for traditional postal opera-

40 izontal growth, staff can be moved into Key takeaways Role of the UPU in this new businesses; if it adopts vertical growth, In order to better meet the expecta- staff can be moved into other areas of the transformation tions of its key stakeholders, Posts value chain. He thus sees a need to invest As explained by Mr Hussein, the Posts are can: horizontally and vertically and to think unique in that they touch every citizen on about employees when doing so. • Adapt their portfolio in order this planet thanks to their trust factor. In to become a one-stop shop for his words, the UPU is the glue that holds Mr Abeyaratne noted that revenue incen- public services, thus reinforcing the postal sector together, enabling the tives could be a way to develop the contri- their role in economic and social 192 networks to behave as one. bution of employees. In the view of many development. CEOs present at the forum, cooperation The UPU provides a platform for CEOs to with trade unions is important to trans- • Strategically reposition them- get together and discuss issues of impor- form organizations. In the case of France, selves through the develop- tance. The CEOs at the forum support this for instance, an agreement was signed ment of new products (e.g. initiative. In the words of Mr Gnamba-Yao, with trade unions in order to develop a health access, personal care, dig- the UPU needs to turn the CEO Forum into new set of trades and adapted working ital lockers and e-documents) in a permanent feature of the CEOs’ calen- conditions for postmen, in line with the order to cater to the needs of dar and continue to restrict it to CEOs. evolving needs of society in an age of per- ageing populations and a very The ideas shared in the forum benefit vasive technology. According to Mr Wahl, mobile and tech-savvy youth. every country and improve synergies. For thanks to such actions, La Poste’s courier instance, a meeting with Slovenia was • Resort to all types of collabo- service, Chronopost, will be ensured even held during the event, and a new project rations, including public–pri- on Sundays. This flexibility will be a reward of cooperation from China to Slovenia, vate partnerships and coopeti- both to customers and to postmen, who through Russia, was agreed upon. tion with start-ups, e-retailers or will have more work and more income. other postal operators. On a similar note, Mr Hussein added that Mr El Saghir illustrated some actions that regulators have a very important role to • Rebrand and raise awareness of have helped Egypt Post become more suc- play in the network: they set the rules. their revamped portfolios. cessful. These include automation, incen- Hence, there is a need to enhance commu- tives on revenue to motivate staff, and • Strengthen operations, revi- nication between the CEOs of postal oper- command-and-control operations (data talize the labour force, and ators and regulators. The UPU will there- dashboard) to ensure implementation. undertake other optimization fore be creating a forum for regulators in As a result, the customer experience was measures. 2018, so as to rebuild links with high-level enhanced, and all services were fully auto- stakeholders in this category. • Find solutions to key strategic mated. The fleet was completely changed, dilemmas (progressive growth In this context, Mr Sigurpálsson called new ATMs were opened, and a national vs. leapfrogging; margin vs. vol- upon the UPU to inform regulators that addressing project was launched. In addi- ume focus; mono-product vs. their demands of designated operators are tion, all government services were made diversification; competition vs. too stringent. In his view, it is difficult to available at the Egypt Post counter. coopetition) in a way that takes compete with integrators in these circum- into account local realities. stances. Designated operators “will be killed” by the strict regulations, and regu- latory bodies thus need to understand that the industry is being challenged.

41 In the words of Mr Barnes, the UPU has an In conclusion, Mr Hussein summarized the Key takeaways extremely important role to play in bring- forum’s key takeaways for CEOs. He stated The UPU can be useful to the trans- ing together Posts around the critical dis- that Posts must develop their own e-com- formation of postal operators by: cussions on the definition of the universal merce platforms and integrate them. He service obligation. Citing the example of encouraged the diversification of services – • Providing a platform for CEOs Jordan, Mr Lahham noted that, in a situa- Posts should sell everything they can, and to get together and discuss rel- tion in which demands from governments even deliver pizza as suggested by one of evant issues. are increasing while public support is not, the CEOs in the forum. • Helping countries define the it is necessary to redefine the universal ser- Mr Hussein suggested that, in order to universal service obligation and vice obligation, an area in which help from grow, Posts should engage in coopeti- the rules that go with it, taking the UPU would be in high demand. tion, but not at any cost. In addition, he into account the specificities of The UPU can also provide technical solu- recognized the need to redefine the uni- each country and region. tions and assistance to governments, reg- versal service obligation. He also empha- • Providing technical solutions ulators and postal operators willing to sized that, in spite of being expensive to and assistance to governments, upgrade national postal infrastructure. Mr maintain, the postal network constitutes a regulators and postal opera- Bozgeyik pointed out that the UPU plays unique asset. tors willing to upgrade national an important role in ensuring that postal Mr Hussein highlighted the fact that, for postal infrastructure. networks can communicate better, and Posts to be more competitive, there is a has a role to play in replicating best prac- need for reform in postal organizations tices around the world. This comment was and a transformation of business models. shared by his colleague from Russia, who In this context, the UPU is a forum, a plat- expressed support for UPU initiatives to form and a centre of expertise to help the create reasonable competition in order to postal sector advance. improve services. Mr Podguzov added that any help from the UPU in building strate- However, he added that the UPU also gies would be helpful, but that there is a needs help in order to change, including need for a common position from the UPU in areas such as internal UPU changes, about which way to go. The UPU has an UPU structural reform, funding, pension integrative role to play. fund liabilities, and increased efficiency of the Union. He assured CEOs that the ideas According to many of the CEOs, access to in this forum would be taken forward in UPU research and meetings would help building Agenda 2030, a new strategic their business. As noted by Mr Setijono, vision for the Union. the UPU should create a sharing platform for benchmarks, and increased support should be provided to Posts to help anchor them in the digital world. Mr Walsh stated, in turn, that the UPU has a role to play in the harmonization of information flows. In this context, monitoring and benchmark- ing tools such as the Integrated Index for Postal Development (2IPD) will prove use- ful to Posts worldwide.

42 About the UPU The Universal Postal Union (UPU) is an intergov- ernmental organization with 192 member coun- tries that is mandated to ensure universal access to affordable public postal services of the highest standard. Established in 1874, it is considered the world’s second-oldest international organization. Since 1948, the UPU has been a part of the United Nations family, operating as a specialized agency. The UPU is the only international organization rep- resenting the interests of the worldwide postal sec- tor in a neutral fashion. In addition to maintain- ing a genuinely universal network – with physical, financial and electronic dimensions – it establishes the rules for international mail exchanges among its member countries and makes recommendations on how to modernize products and services, stimulate mail volume growth, and improve quality of service for customers. The global postal network is a formidable infra- structure through which essential public services are provided to millions of citizens and businesses. This enables the postal sector to play a critical role in fuelling countries’ social and economic develop- ment. Postal operators also provide financial, logis- tical and e-commerce services to countless cus- tomers to meet their evolving needs. Today, the world’s postal services process and deliver some 303 billion letters and 9 billion parcels annually, using a worldwide network linked through state-of- the-art technology and processes. This infrastruc- ture is staffed by 5.3 million employees in some 670,000 postal establishments, making it the world’s largest physical network.