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ING Conference Presentation October 6, 2012. Who are we How did we get here 1 st Year success/challenges Moving Forward GANNETT PUBLISHING SERVICES.

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Presentation on theme: "ING Conference Presentation October 6, 2012. Who are we How did we get here 1 st Year success/challenges Moving Forward GANNETT PUBLISHING SERVICES."— Presentation transcript:

1 ING Conference Presentation October 6, 2012

2 Who are we How did we get here 1 st Year success/challenges Moving Forward GANNETT PUBLISHING SERVICES

3 GPS is a one year old business that manages: 1.Production operations GANNETT PUBLISHING SERVICES

4 GPS is a one year old business that manages: 1.Production operations 2.Product distribution GANNETT PUBLISHING SERVICES

5 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

6 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

7 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

8 Gannett Publishing Services Senior Management President Evan Ray SVP Operations Austin Ryan SVP Circulation Jerry Hill VP Finance Kelly Provant VP Technology John Palmisano VP HR Mellisa Alford

9 Operations Printing & Packaging Structure East Regional VP Jack Roth Midwest Regional VP Greg Fiorito Mideast Regional VP Bill Bolger West Regional VP Open VP National Printing & Packaging Dale Carpenter SVP Operations Austin Ryan

10 Regional Sales Executive Midwest (4) Regional Sales Executive Mideast (3) Regional Sales Executive East (4) Regional Sales Executive West (1) Sandy Andrews VP National Commercial Sales Atlanta, GA Gannett Publishing Services National Commercial Sales

11 Stephanie Lengtat Operations Manager (DM) Connie Gallagher Customer Support Development/ RTC Operations Manager Toni Humphreys Director Imaging & Ad Production Amy Cox Senior Financial Analyst Monty VanEmmerik IT Manager Gannett Publishing Services Imaging and Ad Production

12 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

13 Product distribution – Home delivery – Single copy Consumer sales and services – Customer support – Sales and marketing efforts GANNETT PUBLISHING SERVICES

14 GPS - Distribution Management Structure Sr. VP of Circulation Jerry Hill Sales Services (Load Network) Chris Hansen VP National Distribution Tom Kelly VP Distribution & SC Sales Jack Saunders President, GPS Evan Ray USPS Tom Salvo Home Delivery Ops Rosie Cassidy Single Copy Ops Kevin Cooper Reg. VP, West Steve Reed Reg. VP, Upper MW Mike Quinn Reg. VP, Midwest Open Reg. VP, East John McGee Reg. VP, South Bob Sutherland

15 Regions (5) & Markets (16) Site Map

16 How did we get here GANNETT PUBLISHING SERVICES

17 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:

18 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:

19 Consolidate Operations: Executive Summary Description 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 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

20 Allow unit management (publishers) to focus solely on content, audience engagement & advertising sales GANNETT PUBLISHING SERVICES

21 What is our commitment to our newspapers?

22 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.

23 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

24 1 st Year Successes GANNETT PUBLISHING SERVICES

25 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:

26 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:

27 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:

28 delivered significant improvement to the bottom line of the Gannett company Objectives Accomplished to Date:

29 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:

30 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:

31 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:

32 1 st Year challenges GANNETT PUBLISHING SERVICES

33 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:

34 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:

35 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:

36 Moving Forward

37 GPS is Significantly Reducing Operating Costs by: Standardizing best practices across our printing and distribution networks Eliminating work process and management redundancies

38 GPS is Growing Revenue by Increasing Third-Party Sales of: Pre-media services Commercial printing Product delivery Customer services capabilities

39 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

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