ING Conference Presentation October 6, 2012. Who are we How did we get here 1 st Year...

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




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






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 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)


Mideast (3)


East (4)


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


• Product distribution– Home delivery

– Single copy

• Consumer sales and services– Customer support

– Sales and marketing efforts


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


• 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



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


• 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


• 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


• delivered significant improvement to the bottom line of the Gannett company


• 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


• 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

ING Conference Presentation October 6, 2012. Who are we How did we get here 1 st Year...

Documents

Transcript of ING Conference Presentation October 6, 2012. Who are we How did we get here 1 st Year...