As it turns out, they seem to think that worse service is the answer to their ills.
According to a recent Washington Business Journal article, they feel that closing processing facilities is the way to balance their budget. Given the decline in mail, closing some facilities may actually be needed. However, here is the problem. According to the Postmaster General this would result in much slower delivery of First Class Mail. Having worse service for more cost doesn't seem like a way toward solving their problems.
|Your new Post Office|
On the bright side, they are actually implementing one of the Radical Ideas... Sort of.
I proposed that the USPS sign a massive co-location deal with places such as McDonald's. They are not doing that, but they are moving forward with what they call "Village Post Offices." According to this CNN article, up to 3,700 mostly rural Post Offices could be converted to this type. Basically, small general stores will pay for the right to have Post Office services in their store. That way they can sell stamps with their Lotto tickets, beer and fishing lures.
This isn't quite the massive transformation or positive brand relationships I would like to see, but I guess it is a start.