ing conference presentation october 6, 2012. who are we how did we get here 1 st year...
TRANSCRIPT
ING Conference Presentation
October 6, 2012
• Who are we
• How did we get here
• 1st Year success/challenges
• Moving Forward
GANNETT PUBLISHING SERVICES
GPS is a one year old business that manages:
1. Production operations
GANNETT PUBLISHING SERVICES
GPS is a one year old business that manages:
1. Production operations
2. Product distribution
GANNETT PUBLISHING SERVICES
GPS is a one year old business that manages:
1. Production operations
2. Product distribution
3. Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC)
GANNETT PUBLISHING SERVICES
GPS is a one year old business that manages:
1. Production operations
2. Product distribution
3. Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC)
4. Contractual outsourcing of printing for all of Gannett’s printed products
GANNETT PUBLISHING SERVICES
GPS is a one year old business that manages:
1. Production operations
2. Product distribution
3. Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC)
4. Contractual outsourcing of printing for all of Gannett’s printed products
5. Building business for imaging, ad production, printing, packaging, distribution of third-party products and consumer services
GANNETT PUBLISHING SERVICES
Gannett Publishing Services Senior Management
President
Evan Ray
SVP OperationsAustin Ryan
SVP CirculationJerry Hill
VPFinance
Kelly Provant
VPTechnology
John Palmisano
VPHR
Mellisa Alford
Operations Printing & Packaging Structure
EastRegional VP
Jack Roth
Midwest Regional VPGreg Fiorito
Mideast Regional VPBill Bolger
West Regional VP
Open
VP National Printing & Packaging
Dale Carpenter
SVP OperationsAustin Ryan
Regional Sales Executive
Midwest (4)
Regional Sales Executive
Mideast (3)
Regional Sales Executive
East (4)
Regional Sales Executive
West (1)
Sandy AndrewsVP National
Commercial SalesAtlanta, GA
Gannett Publishing ServicesNational Commercial Sales
Stephanie LengtatOperations Manager
(DM)
Connie GallagherCustomer Support
Development/RTC Operations Manager
Toni HumphreysDirector Imaging &
Ad Production
Amy CoxSenior Financial Analyst
Monty VanEmmerikIT Manager
Gannett Publishing ServicesImaging and Ad Production
• 41 Gannett owned print sites
• 29 Contract print facilities– 18 of these print USA Today
– 5 of these print USA Today and a Gannett daily newspaper
• 70 sites in 4 regions
GANNETT PUBLISHING SERVICES
• Product distribution– Home delivery
– Single copy
• Consumer sales and services– Customer support
– Sales and marketing efforts
GANNETT PUBLISHING SERVICES
GPS - Distribution Management Structure
Sr. VP of Circulation
Jerry Hill
Sales Services(Load Network)
Chris Hansen
VP National Distribution
Tom Kelly
VP Distribution & SC SalesJack Saunders
President, GPSEvan Ray
USPS
Tom Salvo
Home Delivery
OpsRosie Cassidy
Single CopyOps
Kevin Cooper
Reg. VP, West
Steve Reed
Reg. VP, Upper MW
Mike Quinn
Reg. VP, Midwest
Open
Reg. VP, EastJohn
McGee
Reg. VP, South
Bob Sutherland
Regions (5) & Markets (16) Site Map
• How did we get here
GANNETT PUBLISHING SERVICES
• U.S. Community Publishing (USCP)
– 80 local newspapers
• USA Today– National newspaper
• Gannett Offset– Commercial printer, USA Today
and regional commercial accounts
Prior to GPS:
• Industry-recognized employee talent and experience
• Investment in physical plants, equipment and real estate
• Unique national and local distribution network
GPS More Fully Leverages the Company’s Existing Assets, Including:
Consolidate Operations: Executive Summary
DescriptionConsolidate and centralize management and eliminate duplicative activities across all GPS divisions, implement a cost efficient model across all markets, and build sales capability to fully load the network.
Objectives
• Reduce annual operating cost
• Allow unit management (publishers) to focus solely on content, audience engagement & advertising sales
• Maximize productivity & efficiency
• Eliminate duplication
• Leverage existing expertise across business units
• Loading the network by building sales services organization
Business implications
• Realignment of organizational structure
• Major culture change
• Shift in financial responsibility
• Change in accounting processes
• Greater focus on loading
• Improved opportunities for across print site business units
1
2 3
• Allow unit management (publishers) to focus solely on content, audience engagement & advertising sales
GANNETT PUBLISHING SERVICES
GANNETT PUBLISHING SERVICES
What is our commitment to our newspapers?
What is our commitment to our newspapers?
Responsibilities
• Print and deliver all publishers’ products within current schedules and deadlines. • Print all work consistently at or above Gannett Optimum Quality guidelines. • Inserting will be at a 98% accuracy level or better for FSI’s and 100% for editorial products.• Maintain publication position in the marketplace and make adjustments to draw when
breaking news or events present the opportunity.• Jointly discuss and agree to sales strategies and goals to maximize volumes and
profitability objectives.• Meet consumer volume expectations on key days in key zip codes outlined in strategies and
initiatives.• Achieve quantitative metrics and key performance indicators (KPI’s) for consumer service,
sales and retention. • Participate in annual budgeting and operational planning process, and conduct periodic
performance reviews. • Communicate and work with the publisher/general manager in the event of a hard down or
force majeure to minimize delays in the delivery of the paper.
The Publisher Responsibilities
• Provide GPS with page and editorial close in a timely manner and reasonable flow.
• Make reasonable efforts to ensure incoming materials meet specifications and are readily identifiable
• Maintain or improve editorial quality standards. • Provide input on publisher’s market strategy, and collaborate with GPS to develop operational and expense plan to meet market goals.
Both Publisher and GPS will:• Communicate any quality or service issues to the other party• Quickly address any reasonable concerns from the other party• Keep parties apprised of any potential legal, regulatory or operational risks.• Work together on budgeted and projected volumes
1st Year Successes
GANNETT PUBLISHING SERVICES
• Formed business unit and restructured a 132 member management team and realigned 8,400 employees into new single business unit
• Finance – accounting, purchasing, payroll, inventories, etc.
• Human Resources – restructures, job descriptions, pay grades, benefits, workers comp, hiring/firing, employee development, etc.
• Reporting – begin standardize, GPS database
Objectives Accomplished to Date:
• Merged USA TODAY and USCP distribution and single copy sales management teams and realigned along five new national regions
• USCP strength of local home delivery
• USA Today strength of single copy
• Consumer services – evolution
• Consumer sales and marketing – leveraging expertise
Objectives Accomplished to Date:
• Merged USA TODAY, USCP and Gannett Offset Production Operations management teams and realigned along four new national regions.
• Regional VP’s • Local GM’s – press and packaging management with more
complexity of multiple publications and commercial work• Commercial work
– Regional sales force
– Leverage commercial expertise
Objectives Accomplished to Date:
• delivered significant improvement to the bottom line of the Gannett company
Objectives Accomplished to Date:
• new launches - bringing on daily newspapers to our own print sites
• new launches – USA Today strategic print locations
• new launches – out sourcing our newspapers to non Gannett print sites
• PRINT OR BE PRINTED - do the work where it makes the most sense
GPS successes:
• better understanding of commercial sales process• building relationships with potential customers or
printing partners
• developed a quoting tool for commercial pricing
• developed a publishers check list for things to consider when outsourcing
• quality standards, customer support, estimating, fulfillment and billing
GPS successes:
• Improving reporting of statistics – GPS database
• applying best practices• scheduling, training, equipment, maintenance, etc.
• sending employee “experts” to help sites
• more aggressive use of company equipment• RVP’s know what is out there – equipment inventories
• employee reviews• Common review date for all
• most management levels on company wide review system
• common consumables for better price and standardization
GPS successes:
1st Year challenges
GANNETT PUBLISHING SERVICES
• Revenue and growing the business– churn– the bigger the project, the longer the selling process– relationship building
• building a sales force– sales material, quotes, specs, samples, deadlines,
production capabilities, work flows, billing, etc– compensation plan
GPS challenges:
• Changes in a large organization– communication– culture/history
• Employee items– workers doing more with less– furloughs – benefits – moving toward standards– change and uncertainty it brings– motivation, retention and succession planning
GPS challenges:
• lack of equipment flexibility– web width, quarter fold, trimming, etc
• equipment maintenance– recovering from past maintenance reductions– scheduling maintenance as business grows
• systems and standards• vendor community
– upgrades to drives, controls and systems– concern for vendor support
GPS challenges:
Moving Forward
GPS is Significantly Reducing Operating Costs by:
• Standardizing best practices across our printing and distribution networks
• Eliminating work process and management redundancies
GPS is Growing Revenue by Increasing Third-Party Sales of:
• Pre-media services
• Commercial printing
• Product delivery
• Customer services capabilities
Strategic Objectives for GPS are:
• To allow our local media unit management teams to focus more fully on growing audience, improving content and developing revenue
• And, for Gannett Publishing Services management to:
– concentrate on optimizing and leveraging our centralized production and circulation assets and operations
– and focus our centralized consumer acquisition, retention and engagement services to accelerate the company’s recently announced transition from the print subscriber model to the multi-media paid content subscription model