The South African Post Office: On the Brink

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The South African Post Office: On the Brink: Abstract

Mark Barnes, chief executive officer of the state-owned South African Post Office (SAPO), leaned back in his plane seat and started reviewing his notes. He and his team of executives were returning to Johannesburg after a meeting in Cape Town with members of the South African government’s Portfolio Committee on Telecommunications and Postal Services. Barnes had motivated for a R2.7 billion bail-out for the Post Office, but the government was reluctant to invest.

When he accepted the position of CEO, SAPO had been on the brink of collapse. By May 2016, Barnes had been in the job for less than a year and had already averted a proposed strike by SAPO employees. Barnes had hoped to turn SAPO around and that the organisation would achieve financial self-sufficiency and be able to raise its own capital within five years. However, he and his team were already three months behind in their plan to change the Post Office’s fortunes. Barnes wondered if he needed to revise his strategy.