Steele, 46, joined the Post Office in 2001, after years in the motor and energy industries. 'I like businesses that are not in crisis, but are about to go through dramatic change. It had all the right ingredients, but needed to change.'
In 2002 consumers were given the opportunity to receive state benefits by direct debit and £400m of the Post Office's annual revenue evaporated overnight. Forced to broaden its horizons, it has extended into financial services, gift vouchers and more general retail.
Steele summed up the diversity of the business when he answered a clumsy question put to him at a recent reception. 'So, you are one of our top posties, then?' they asked. 'Not really,' he replied. 'Just 25% of our business is handling mail, 25% is travel, 25% is government and the rest is financial services.'
Steele admits that changing the way people think about and use the Post Office is a hard task. 'You can't just jump out there and expect to compete on the high street with players that have been there for 15 years. Job one was to prepare the ground; we have changed the product mix and reworked and relaunched 75% of our products. Job two is to get people to accept us.'
With about 28m customers a week, footfall is no problem. But with new product categories, the Post Office needs to attract more new customers.
Steele speaks with affection of its loyal legions of older customers, but says the Post Office has to tap into other markets. 'Our fastest-growing groups are younger customers and ABC1s,' he says.
Steele believes clarity in its communications is key to changing perceptions.
To this end, the Post Office is currently reviewing its £17m advertising and sales promotion accounts, held by Publicis and Joshua (Marketing, 6 September).
While Steele is keen to exploit new channels to reach younger, technology-savvy customers, he insists the Post Office is not turning its back on traditional in-store communication. 'It would be wrong not to use the existing network,' he says. Last week the company appointed Conde Nast to produce its first customer magazine. With a circulation of 3m, it will be distributed through Post Office branches (Marketing, 2 November). 'We want a multichannel approach and to be accessible to our customers in whichever way they want,' he explains.
As a hybrid government-owned organisation with commercial freedom and board accountability, few would envy Steele a role that is so much in the public eye. But he says he is rising to the challenge and points to the way the company is combating years of chronic underinvestment in its branch network. 'Everything you do with the Post Office is on a colossal scale. We are refurbishing more than 200 sites before Christmas.'
Steele gives the impression that if he could, he would be in every Post Office every day, and admits to visiting one wherever he is. 'When you have 14,000 branches, it doesn't matter where you go, there is always a Post Office - you just have to have a look in.'
Away from work, Steele lives with his partner in a 17th-century 'chocolate box' cottage in Hertfordshire, and has what he calls a 'nerdy' passion for trading Roman coins. Although born in England, he remains true to his family's heritage and supports the Scottish rugby team, even when they play against England - 'but I am not so fanatical that I hope England loses every time'.
Steele joined the Post Office to embark on an adventure, and he knows he has barely begun. 'We are part-way through a transformation. We're in the process of converting our goals for the next three to five years, but we know the journey isn't over by any means.'
CAREER HISTORY
1985-1989: Graduate trainee, rising to key account sales manager, Fisons Horticulture Division
1989-1995: Marketing programme manager, rising to marketing and purchasing controller, Unipart Group
1995-1998: Head of marketing and business development, rising to general manager, London Electricity
1998-2000: General manager, TXU (formerly Eastern Energy)
2000-2001: Chief operating officer, e-business, Mazda
2001-present: Sales and marketing director, Post Office.
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