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There is a sense of urgency in the memo, with Allen writing that “It is critical for us to have the most accountable alignment of our responsibilities moving forward. What do you say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

SCDigest has obtained a memo from new DHL US Chief Ken Allen to other top company executives that outlines management and organizational changes on the heels of the company’s substantial restructuring of its US package service and network (See What’s the Real Story Behind DHL’s Revamped US Plans?). Allen was named to the post in early May, amid rising losses at the US unit of Germany Deutsche Post, and just be fore the new strategy was announced.

The memo outlines a new management structure that includes four new sales and operating regions in the US under the control of four new general managers, in “an effort to become more focused on field activities,” wrote Allen.

There is a sense of urgency in the memo, with Allen writing that “It is critical for us to have the most accountable alignment of our responsibilities moving forward.”

He later adds that the company needs “to have 100% focus on the UPS Aviation component and seeing that through to an accelerated execution,” regarding the plan to outsource its air freight movement to its parcel competitor.

The full memo is published below.

Organizational Announcement

 From: Ken Allen, CEO DHL Express U.S.

(Managers - please cascade to your teams immediately)

Today I am announcing several organizational changes in support of our U.S. restructuring plan. It is critical for us to have the most accountable alignment of our responsibilities moving forward. We have many significant challenges and milestones to reach in the days ahead to realize our ambitious plans.

Introduction of General Manager Model

First, in an effort to become more focused on field activities, we are introducing a General Manager (GM) operating model. These GM's will assume responsibility for both operations and sales within their geographic areas, focusing on customer retention and development, excellent service and well executed people and cost plans. Each GM will maintain a single, area-wide profit-and-loss statement for improved transparency and accountability.

I am pleased to announce the following GM appointments and welcome them to the U.S. Management Board (USMB):

* Area 1: Terry Carter

* Area 2: Mike Parra

* Area 3: Al Burba

* Area 4: Dave Katz

We will transition to this new operating model with immediate effect and to this end we will hold our first USMB meeting next week (June 11 and 12) after which the GM's will quickly align their area teams and begin to drive the integration necessary to achieve our goals.

(Transportation Management Article - Continued Below)