Top Takeaways

Cost-Reduction Ideas That Work

At the NAPL Top Management Conference last month an entire interactive, group session was devoted to the topics of Cost-Reduction and Revenue-Generating Ideas. The discussion focused on what printers are doing in this economy to make themselves as lean as possible, while still preparing their companies for the eventual upturn in the economy. For the next several weeks, we'll share those ideas. We'd love to hear some of the ways that you're tackling these trying times...

1. Know your P&L. If you aren't already reviewing AND questioning every expense line, you're missing opportunities to learn more and save more.

2.  Evaluate the use of courier servies. For your local clients, why not have your salespeople deliver the sample or proof and use the opportunity to spend some time with the client, getting to know their business better and looking for enhanced opportunities. If the above approach is not for you, there is still a way to reduce costs. Try grouping deliveries. When serving a local marketplace, plan the most efficient routes and schedules. This will save time, money and resources.

 3. Review All Business Insurance Plans. Are you getting the best rates, coverage and options on your plans? Are there ways to save money, get rebates, and make changes while maintaining sound coverage? It's worth the time to investigate.

These are just a few of the ways that today's businesses are reducing costs. More to come in future blogs. Until then, let us know what you're doing. sreif@napl.org

Don't Bail Out

David Ulrich's keynote speech at this year's Top Management Conference was jam packed with leadership topics and takeaways, but his first and foremost message was "Don't bail."  Bail outs of any kind are a flawed concept, according to Ulrich.  The term is reminiscent of either leaky boats or a temporary pass out of jail, neither of which is a positive image for proactive leaders.  Instead of bailing, Ulrich challenges today's business pros to address the core problem behind the leaks in their organizations and processes -- namely, quality of leadership.

There are leaders and leadership.  If your company just has a great leader, you could be in trouble, similar to Steve Jobs and Apple.  However, if as a company leader, you are committed to training tomorrow's leaders and creating a leadership organization -- you may just have a future.

Today's business environment is rife with paradoxes, Ulrich notes. A great business leader has to reconcile a need for both stability and change, short-term and long-term successes, and managing costs plus growth, just to name a few. And, he or she has to have a strong heart and not be afraid of failure.  As Ulrich notes, "Every successful leader has had failure in his/her life."  The key is to learn from failure rather than avoid it.

Attendees received a free copy of Ulrich's book Leadership Brand.  Some companies have a strong product brand, such as Mont Blanc.  Others have evolved to have Firm Brands such as Nordstrom. The truly evolved company has gone one step further, and through determination and strategy developed into a leadership brand. Walmart is a key example. They believe in low prices. They live low prices, and unlike today's auto dealers, even at their conventions they stay at Motel 6's and eat saran wrapped sandwiches for lunch.  They live their brand, but more importantly they embody their brand's core concepts.  That consistency both inside and outside an organization is Ulrich's key for uncovering and identifying today's true leadership companies.

 

Fight Recession Fatigue

Are you feeling tired and depressed?  Did you know that you may be suffering from Recession Fatigue?  Did you know it's a real, economic syndrome?  Today's Top Management Conference attendees found out from NAPL's Chief Economist Andy Paparozzi that it's real and there are techniques for countering the what appear to be the never-ending onslaught of bad news.

"Andy's the only economist I ever met who makes sense," says Jim Clark, Director of Business and Customer Services for McNaughton Gunn, Saline, MI.  "Everyone can learn from him because he puts in terms that printers understand.  For instance, most economists just talk doom and gloom, but he doesn't. He gives you tangible things you can do for preparing for coming out of the recession."

Some of Andy's tangible suggestions included:

• Recessions are no time to be modest. Customers are looking for experts. Make sure they know you are one of them.
• Your employees are suffering from recession fatigue as well. Make it part of your job to keep their morale up either through inexpensive recognition rewards, or plain old pats on the back to reassure them.
• Communication is key.  Employees are more afraid of what they dream up may be happening than what actually is happening.  Don't make a bad situation worse. Tell them the truth and keep them focused on work not rumors.

Quoting NAPL president and CEO Joe Truncale, Andy noted: "Recessions aren't a time to do something. They're a time to do something smart." 

Why?  Because Andy noted the Recession is long, but it won't be forever.  When it's over, one thing will be for sure.  "We're not going back to business as usual," Andy said. The time to prepare is now.

~ Rhona Bronson

No One Even Thought of Raising Prices

Lots of good ideas on how to increase revenue were discussed at the NAPL Top Management Conference in Tucson, AZ.

But not one attendee at this morning's discussion on trends and issues affecting the print and graphic communications industry even thought of raising prices as a way to increase revenues. The session was about to end when I shot up my hand and said, "raise prices". The moderator, Joe Truncale, our CEO, looked at me like I had lost my marbles while the rest of the audience was stunned silent that someone actually had the nerve to broach this topic.

And, remember, these are owners and senior managers who are progressive, open-minded thinkers of reasonably successful companies (otherwise they would not invest the time or money to attend this outstanding event). What does that say about the prospects for price increases by the scores of "treading water" companies?

It says raising prices is a long way off from actually happening in the print marketplace.

Implication for M&A and business valuation: don't even think of a business valuation or cash flow forecast that assumes price increases!

~ John Hyde

Photo of me in the Arizona desert after morning sessions at the NAPL Top Management Conference, March 15, 2009

Reach out with personalized messages

Earlier this week we tried a new technique to reach out to our customers and prospects. If it works for my Senator running for re-election, I thought it might be worth a try. We've all gotten the message: "Hi, I'm Jim Smith and here's why I'd like your vote..." Officially known as voice broadcast campaigns, we affectionately refer to them as Robo Calls... voice messaging on steroids. 

Need to spruce up or supplement a marketing campaign, or keep in touch with current customers. Why not consider recording a voice message and sending it out. Joe Truncale, NAPL President recorded our message. It was an invitation to attend the industry's premier event, the NAPL Top Management Conference. It's a difficult economy, and while training and education dollars are often cut during times like this, Joe makes the case that now is the time to keep learning. He says, "In these challenging times, we understand that you are required to get the highest possible value for your time, money and resources. At the world-class Top Management Conference, you'll get an exceptional return on your investment. We guarantee it!"

What kind of message can you send to keep your current customers engaged or new prospects signing on? What sets your company apart? It would be great for your customers and prospects to hear that directly from you. If you need help getting started, drop me an email (sreif@napl.org). We'll connect you with the service providers.

The results are in: Robo calling appears to be an economical, efficient, and most of all, effective way to stay in touch. Give it a try. We did, and the results were outstanding!   Download Custom Message

Hope to see you in Tucson, March 15-18th!

We look forward to meeting you in the sunny Sonoran Desert this March to share ideas in the industry on strategic leadership. Now, more than ever, it's important to attend an event like this where you have access to the best and the brightest minds in our industry. Learn and network with your peers, some of the most progressive, innovative and successful print executives in North America. For more information, go to our website.

Please call with questions. We love hearing from you. .... Susan Reif   201-523-6350

TMC: Stop Time

It's keynote time. All things come to an end, and TMC 08 ends with Marshall Goldsmith, a keynoter back by popular demand. He's addressing industry leaders on, guess what, leadership. One of his key coaching techniques to teach leaders not what to do -- but what to stop. He picked it up from Peter Drucker.

One thought was on the quality of ideas versus commitment to making them succeed. Smart CEOs try to keep making things better, but sometimes by improving a person's idea by 5% can decrease his or her personal commitment to implementing the idea by double digits. Why? Because they don't look at it as their idea any more!

Print leaders come to TMC to share ideas, find some new things to do, and to Goldsmith's point, also stop some things. It's time to think and decide what works and what doesn't. What works for you?  And if it's several things, don't worry. Goldsmith recommends improving just one thing at a time. It's more than enough and usually makes a huge enough difference.

-- Rhona Bronson

TMC: Best Practices

Practice makes perfect. It can get you to Carnegie Hall and it can get you print customers. TMC is starting to wrap up with an overview by three printers on best practices, which by definition, don't happen overnight, but with alot of dedication and-- well, practice.

Rick Schildgen, CL Graphics (Crystal Lake, IL), uses consistent marketing to stay front of mind with customers.  As a result they tend to think the company's larger than it is, which doesn't hurt. One of his key tools is an annual "wow" package as well as monthly update written by him to clients.  In his updatek, he even writes about going to conferences like TMC, because customers like to know that he's staying up-to-date.

Bill Woods, Jr., EPI Companies (Kennesawk, GA), says his role as CEO is really to be chief cheerleader. He says it's his favorite role. Employees get caught up in fighting fires, but as the face of the company, he feels it's his job to show perspective and let them know that regardless of all the daily challenges, overall they are doing well.  He calls it "Damn It Control."

Bill Gilmer, Wordsprint (Wytheville, VA), talked about his company's incentive plan. Wordsprint is smaller, entrepreneurial site and he concentrates alot on sales. He doesn't look at labor as a variable expense. Like the tides, he's the gravitational pull for the numbers.  If he's out selling, guess what?  All sales efforts rise.

Other cool ideas:

1. Schildgen has a key supplier program and takes his suppliers to lunch, not the other way around.
2. Gilmer went out every afternoon in '06 to see customers. He says you get what you focus on and he focused on sales and  it grew by more than 20%.
3. Schildgen believes in giving back.  He looks to give 1% of sales to community service, some through in-kind services. He specializes in nonprofit markets and having a good heart helps endear him to them.

-- Rhona Bronson

TMC: Green Sales

You can spend an hour with Larissa Crum at TMC, or days with her at Management Institute in August.  One hour will convince you to spend the time with her in DC this summer.  But, here's the one hour gist, or at least a 2 minute piece of it.

There's no difference between sales management and going green. Why?  Sales responsibility is no different than any other type of responsible management.  The key issues are sustainability, chemistry, and knowing the landscape. Sales Stewardship so to speak.

1. Chemistry:  Your clients have got to like you. The chemistry has to be good.
2. Landscaping:  You can't be on a client's team if you don't understand their landscape (or playing field). Don't sell them shade plants (even if they have a shady spot) for their sunny patio particularly if they're planning a big garden party this weekend. In print terms: The client doesn't need a digital sales person, a fulfillment rep, and a database guru. They need one point person (the contractor) who can then bring in the specific team experts as needed.
3. Coaching:  A sales team like a sports team has star players. You can treat your players equitably or fairly. Larissa recommends fair over equitable. After all, would you pay the same for Eli Manning (NY Giants) as John Beck (Miami Dolphins)? If you wouldn't for a quarterback in football, why would you for a sales rep in printing?

Sales, by definition, is supposed to bring in revenue and profits, so if that isn't a green initiative, what is?

-- Rhona Bronson

TMC: W2P Biz Models

There's an ongoing controversy about the success of W2Print technology to gross sales or increased profitability.  Some claim that it increases sales and profitability. Others say no. The issue is really the biz model.  Some are simply procurement models which allows people another tool to order. But that doesn't necessarily result in either plus sales or profits.

Biz models that contain solutions to overcome pain points are the best way to increase sales and profits.

-- Howie Fenton