Sep 24, 2020
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How To Transform An Antiquated Postal Service Into A Highly Profitable Business Center

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EGYPT POST Profit to the folks is just logic if you’re attempting to motivate people to change behaviors which have been entrenched for decades. When Essam El Saghir was appointed CEO and Chairman of Egypt National Post Organization (ENPO) in 2015 everything was still done manually. On his first day El Saghir decided to go to a native post office to work out how things worked


He recounts how people would come to the counter and the worker sitting behind it’d lean over to register every letter with a stamp that was attached to a quick string around his neck a repetitive motion that happened countless times per day. When he asked this employee why he didn t have an extended string to enable him to do the stamping from a more comfortable upright position without having to lean over every letter the guy explained that was how he s been doing his job for 15 years


I knew right then my first task will be to automate everything El Saghir recounts with a chuckle. While automation is his area of expertise he admits feeling somewhat daunted. El Saghir did not get any financial aid from government. Instead he needed to show that the post could turn a profit


Proving his worth We decided that ten percent of profits would go to the workers of a branch generating revenue he says. Employees where going out on the street to get people to return into the post office. In three months the corporate increased revenue by 258 million Egyptian pounds


Next El Saghir and his team introduced the idea of cost savings. Again ten percent of savings went to the workers of the branch making it happen. Suddenly people were turning off lights saving paper and turning off their computers at night he recalls. After three months the corporate saved 165 million Egyptian pounds and in the second year the web profit has been increased to five billion Egyptian pounds


With profits made and money saved El Saghir and his team embarked on the next phase a massive digital transformation to transform the post from a standard organization right into a counter-less paperless multi-service center providing citizen and monetary services. Now in any post office branch you are able to pay all of your bills buy train tickets and guard almost any citizen transaction which includes renewing a driver s license or getting a birth certificate


Since the introduction of a mobile app and kiosks in any respect petrol and train stations you are able to do all that while filling up your car or expecting your train. With assistance from SAP ENPO is now introducing a comprehensive e-Identity solution so people can access all services from any device


We re enabling undocumented refugees to get their UNICEF aid via eye scan identification says El Saghir proudly. Older people not ought to struggle with reading or filling out forms. We just need their fingerprint to authorize all transactions. Today Egypt Post has 55 000 employees and over 23 million customers


It is also the country s largest financial services institution with approximately 4 000 branches. ENPO operates in the most remote rural areas bringing sorely needed financial services to the 84% of Egypt s 100 million population that is still unbanked. The best is yet to return With the groundwork completed El Saghir can now talk about really revolutionary changes


His next project is to create a marketplace on an SAP Platform where small and micro business can place their products freed from charge. EGYPT POST It makes total sense to leverage Egypt s unique location on the crossroads of Europe Middle East and Africa. We desire to enable our customers to trade locally or internationally through our new e-commerce services


We re offering them new the way to do business the world over using their Egypt Post debit cards he says. Doing business within the region requires innovative solutions. The genuine problem is the price of shipping. It s costlier to ship a product than to supply it and a lot of African nations don t have the correct infrastructure for online commerce or parcel delivery


El Saghir s solution is to have a hub in the US where twelve nations can consolidate all their parcels into one container collectively purchasing one box only. The container arrives to the second hub in Egypt where parcels are sorted and shipped to the respective destinations around Africa. For El Saghir who was curious about details and processes as a toddler and spent most of his early career outside of Egypt the main to success is motivating people to hitch the journey


I used to be shocked by the lack of motivation but was I actually surprised? he ponders out loud as he pulls up some photos on his mobile phone. Before ENPO started its transformation endeavor people were sorting mail in rundown buildings. Broken furniture filled the offices and waiting rooms


There was hardly any chance of raises or promotion. But that is all different now. You are able to t force people to change he concludes. You are able to only offer them incentives. Follow me on Twitter @magyarj

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