As minister in charge of the General Post Office (GPO), Wood inherited an old-fashioned organisation, not equipped to meet the needs of the 1930s.
In particular its management of the national telephone system, a GPO monopoly, was widely criticised.
Wood considered reconstituting the whole of the GPO, changing it from a government department to what would later be called a quango, and he set up an independent committee to advise him on this.
The committee recommended that the GPO should remain a department of state, but adopt a more commercial approach.

Under Wood the GPO introduced reply paid arrangements for businesses, and set up a national teleprinter service.
For the telephone service, still mostly dependent on manual operators, the GPO introduced a programme of building new automated exchanges.
For the postal service, the GPO built up a large fleet of motor vehicles to speed delivery, with 3,000 vans and 1,200 motor-cycles.
Wood was a strong believer in publicity; he set up an advertising campaign for the telephone system which dramatically increased the number of subscribers, and he established the GPO Film Unit which gained a high aesthetic reputation as well as raising the GPO's profile.
Most importantly, Wood transformed the senior management of the GPO and negotiated a practical financial deal with HM Treasury.
The civil service post of Secretary to the Post Office was replaced by a director general with an expert board of management.
The old financial rules, by which all the GPO's surplus revenue was surrendered to the Treasury had long prevented reinvestment in the business; Wood negotiated a new arrangement under which the GPO would pay an agreed annual sum to the Treasury and keep the remainder of its revenue for investment.

When MacDonald was succeeded as head of the coalition government by Baldwin in 1935, Wood was appointed Minister of Health.
Despite its title, the Ministry was at that time at least as concerned with housing as with health.
Under Wood, his biographer G. C. Peden writes, "the slum clearance programme was pursued with energy, and overcrowding was greatly reduced.
There was also a marked improvement in maternal mortality, mainly due to the discovery of antibiotics able to counteract septicaemia, but also because a full-time, salaried midwifery service was created under the Midwives Act of 1936."
Jenkins comments that the housing boom of the 1930s was one of the two main contributories to such economic recovery as there was after the great depression.

When Anthony Eden resigned from Chamberlain's government in March 1938, Wood moved to be Secretary of State for Air in the ensuing reshuffle.
The UK was then producing 80 new warplanes a month.
Within two years under Wood the figure had risen to 546 a month.
By the outbreak of the Second World War, Britain was producing as many new warplanes as Germany.
By early 1940, Wood was worn out by his efforts, and Chamberlain moved him to the non-departmental office of Lord Privy Seal, switching the incumbent, Sir Samuel Hoare, to the Air Ministry in Wood's place.
Wood's job was to chair both the Home Policy Committee of the cabinet, which considered "all social service and other domestic questions and reviews proposals for legislation" and the Food Policy Committee, overseeing "the problems of food policy and home agriculture".
He held this position for only a few weeks; the downfall of Chamberlain affected Wood in an unexpected way.

In May 1940, as a trusted friend, Wood told Chamberlain "affectionately but firmly" that after the debacle of the British defeat in Norway and the ensuing Commons debate, his position as Prime Minister was impossible and he must resign.
He also advised Winston Churchill to ignore pressure from those who wanted Lord Halifax, not Churchill, as Chamberlain's successor.
Chamberlain agreed to resign on 9 May, but considered going back on his decision the next day as the German attack on the Western Front had begun; Wood told him that he had to go through with his resignation.
Both men acted on Wood's advice.
Churchill became P
As minister in charge of the General Post Office (GPO), Wood inherited an old-fashioned organisation, not equipped to meet the needs of the 1930s. In particular its management of the national telephone system, a GPO monopoly, was widely criticised. Wood considered reconstituting the whole of the GPO, changing it from a government department to what would later be called a quango, and he set up an independent committee to advise him on this. The committee recommended that the GPO should remain a department of state, but adopt a more commercial approach.
Under Wood the GPO introduced reply paid arrangements for businesses, and set up a national teleprinter service. For the telephone service, still mostly dependent on manual operators, the GPO introduced a programme of building new automated exchanges. For the postal service, the GPO built up a large fleet of motor vehicles to speed delivery, with 3,000 vans and 1,200 motor-cycles. Wood was a strong believer in publicity; he set up an advertising campaign for the telephone system which dramatically increased the number of subscribers, and he established the GPO Film Unit which gained a high aesthetic reputation as well as raising the GPO's profile. Most importantly, Wood transformed the senior management of the GPO and negotiated a practical financial deal with HM Treasury. The civil service post of Secretary to the Post Office was replaced by a director general with an expert board of management. The old financial rules, by which all the GPO's surplus revenue was surrendered to the Treasury had long prevented reinvestment in the business; Wood negotiated a new arrangement under which the GPO would pay an agreed annual sum to the Treasury and keep the remainder of its revenue for investment.
When MacDonald was succeeded as head of the coalition government by Baldwin in 1935, Wood was appointed Minister of Health. Despite its title, the Ministry was at that time at least as concerned with housing as with health. Under Wood, his biographer G. C. Peden writes, "the slum clearance programme was pursued with energy, and overcrowding was greatly reduced. There was also a marked improvement in maternal mortality, mainly due to the discovery of antibiotics able to counteract septicaemia, but also because a full-time, salaried midwifery service was created under the Midwives Act of 1936." Jenkins comments that the housing boom of the 1930s was one of the two main contributories to such economic recovery as there was after the great depression.
When Anthony Eden resigned from Chamberlain's government in March 1938, Wood moved to be Secretary of State for Air in the ensuing reshuffle. The UK was then producing 80 new warplanes a month. Within two years under Wood the figure had risen to 546 a month. By the outbreak of the Second World War, Britain was producing as many new warplanes as Germany. By early 1940, Wood was worn out by his efforts, and Chamberlain moved him to the non-departmental office of Lord Privy Seal, switching the incumbent, Sir Samuel Hoare, to the Air Ministry in Wood's place. Wood's job was to chair both the Home Policy Committee of the cabinet, which considered "all social service and other domestic questions and reviews proposals for legislation" and the Food Policy Committee, overseeing "the problems of food policy and home agriculture". He held this position for only a few weeks; the downfall of Chamberlain affected Wood in an unexpected way.
In May 1940, as a trusted friend, Wood told Chamberlain "affectionately but firmly" that after the debacle of the British defeat in Norway and the ensuing Commons debate, his position as Prime Minister was impossible and he must resign. He also advised Winston Churchill to ignore pressure from those who wanted Lord Halifax, not Churchill, as Chamberlain's successor. Chamberlain agreed to resign on 9 May, but considered going back on his decision the next day as the German attack on the Western Front had begun; Wood told him that he had to go through with his resignation. Both men acted on Wood's advice. Churchill became P
Kingsley Wood