Pitney Bowes 2003 Annual Report Download - page 9

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streamlined processes for time and attendance
recording, payroll processing and online recruiting.
Our adoption of Six Sigma methodology is helping
to improve our internal operations, better serve our
customers and achieve significant ongoing savings.
These process improvements helped us reduce
general and administrative expenses by more
than $24 million in 2003 and moved us closer to
our goal of reducing G&A expense as a percentage
of revenue by 2 percentage points.
Improved processes also helped boost customer
satisfaction with the post-sale installation of our
new hardware and software to over 96 percent,
the highest ever.
Developing Talent and Promoting Diversity
CEO Magazine and Hewitt Associates ranked
us among the top 20 companies for leadership
development in 2003, reflecting our strong
commitment to identifying and developing future
leaders from our diverse and talented
community of employees.
We now have candidates ready to succeed the
incumbent for 90 percent of our senior positions,
an all-time high that reflects our commitment to
succession planning. We will continue to focus on
our ultimate goal of having two candidates ready
to succeed each incumbent for 100 percent of our
key positions.
Adhering to the Highest Standards
of Corporate Governance
The Board of Directors takes pride in its
independence, well-crafted governance practices
and oversight of company management and
strategy. The Board recently updated the
Governance Principles to reflect the final New York
Stock Exchange listing standards. The Governance
Principles are reprinted in the proxy statement and
are also available on the Company’s governance
website at www.pb.com/corporategovernance.
In addition to protecting long-term stockholder
interests, the Board is attentive to stockholder
concerns. In the fourth quarter of 2003, at the
recommendation of the Governance Committee,
the Board terminated the Rights Plan, commonly
known as a poison pill. The Governance
Committee had evaluated the Rights Plan in light
of many factors, including the increased level of
interest by stockholders in reconsideration of the
Plan. The Board has a fiduciary responsibility to
the stockholders, which includes protecting them
from a sale of the Company at an inadequate price.
However, the Directors concluded that continual
maintenance of a Rights Plan in the absence of
such a threat is not necessary.
Looking Ahead to 2004
As you can see, we demanded a lot of ourselves
in 2003. I am proud to say that the people of
Pitney Bowes proved themselves up to the
challenge. You will find some of them pictured
in this Annual Report. But I want to thank all
Pitney Bowes employees for their good work.
We are confident that the rewards of our work
in 2003 will be sustainable, long-term growth
and enhanced shareholder and customer value.
Our priorities in 2004 are to continue our
transformation programs and execute on our
mailstream and document management growth
strategies. Since 2000, we have transformed the
Company in a difficult economic environment. If
we continue to execute successfully, we are well
positioned to grow in the years ahead.
Michael J. Critelli
Chairman and Chief Executive Officer