ING Conference Presentation
October 6, 2012
GANNETT PUBLISHING SERVICES
• 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 Senior Management
President
Evan Ray
SVP
Operations
SVP
VP
VP
VP
Circulation
Finance
Technology
HR
Austin Ryan
Jerry Hill
Kelly Provant
John Palmisano
Mellisa Alford
Operations Printing & Packaging Structure
SVP Operations
Austin Ryan
VP National Printing &
Packaging
Dale Carpenter
East
Midwest
Mideast
West
Regional VP
Regional VP
Regional VP
Regional VP
Jack Roth
Greg Fiorito
Bill Bolger
Open
Gannett Publishing Services
National Commercial Sales
Sandy Andrews
VP National
Commercial Sales
Atlanta, GA
Regional
Sales Executive
East (4)
Regional
Sales Executive
Mideast (3)
Regional
Sales Executive
Midwest (4)
Regional
Sales Executive
West (1)
Gannett Publishing Services
Imaging and Ad Production
Toni Humphreys
Director Imaging &
Ad Production
Connie Gallagher
Customer Support
Development/
RTC Operations Manager
Amy Cox
Senior Financial Analyst
Monty VanEmmerik
IT Manager
Stephanie Lengtat
Operations Manager
(DM)
GANNETT PUBLISHING SERVICES
• 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
GPS - Distribution Management Structure
President, GPS
Evan Ray
Sr. VP of
Circulation
Jerry Hill
VP National
Distribution
VP Distribution
& SC Sales
Tom Kelly
Jack Saunders
Reg. VP, Reg. VP, Reg. VP,
East
South Midwest
John
McGee
Bob
Sutherland
Open
Reg. VP,
Upper
MW
Mike Quinn
Reg. VP,
West
Steve Reed
Single
Copy
Ops
Home
Delivery
Ops
Kevin Cooper Rosie Cassidy
USPS
Sales Services
Tom Salvo
Chris Hansen
(Load Network)
Regions (5) & Markets (16) Site Map
GANNETT PUBLISHING SERVICES
• How did we get here
Prior to GPS:
• U.S. Community Publishing (USCP)
– 80 local newspapers
• USA Today
– National newspaper
• Gannett Offset
– Commercial printer, USA Today and
regional commercial accounts
GPS More Fully Leverages the
Company’s Existing Assets, Including:
• Industry-recognized employee talent and
experience
• Investment in physical plants, equipment and
real estate
• Unique national and local distribution network
Consolidate Operations: Executive Summary
1 Description
2
Consolidate 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
3
Business implications
• Reduce annual operating cost
• Realignment of organizational structure
• Allow unit management (publishers) to
focus solely on content, audience
engagement & advertising sales
• Major culture change
• Maximize productivity & efficiency
• Change in accounting processes
• Eliminate duplication
• Greater focus on loading
• Leverage existing expertise across
business units
• Improved opportunities for across print
site business units
• Loading the network by building sales
services organization
• Shift in financial responsibility
GANNETT PUBLISHING SERVICES
• Allow unit management
(publishers) to focus solely on
content, audience engagement &
advertising sales
GANNETT PUBLISHING SERVICES
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
GANNETT PUBLISHING SERVICES
1st Year
Successes
Objectives Accomplished to Date:
• 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
GPS successes:
• 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
GANNETT PUBLISHING SERVICES
1st Year
challenges
GPS challenges:
• 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
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