Friday, February 29, 2008

Fifth grader asks, where are my textbooks?

At a recent Pennsylvania school meeting involving parents, teachers, students and administrators, a 5th grader stood up and asked why their school didn't have enough textbooks. You and I would probably guess it was a funding problem, but the school district was actually spending more than they would for textbooks, a lot more.

Their science and health programs were using handouts called modules. When asked why, the administer stated that the text books were often outdated by the time they reached the schools.

Modules are more current, and offer the teacher more flexibility to more effectively instruct. Hence they are deemed worth the increased cost that may approach twice the cost of the textbooks. To be fair, additional ancillary materials are often included, but it would seem that the whole operation of gathering, writing, editing, printing, and assembling the program must be shortened to ensure a timely learning process.

What is our lesson to be learned? Obviously to shorten the process. We must, as an industry of publishers and printers, take a look at our time to market. We must know our ultimate "customers": the teachers and school districts, and provide them what they want when they need it.

Our alternative will be to grumble and complain, and wonder why we're not getting the business we forecasted. Or, we may blame electronic textbooks or digital printing, but we will miss the real point: we aren't listening.

Wednesday, February 27, 2008

Twilight of the Books

Late last year, the above article appeared in The New Yorker magazine with the sub-title "What will life be like if people stop reading?" If you missed it earlier, it would still be a good read due to the large amount of data cited. Gallup, the Census Bureau, the National Endowment for the Arts (NEA), the Book Study Group (BISG), Department of Labor, Department of Education, and McLuhan are among the references utilized.

It is nicely written with not only a fondness for the book, but a real understanding of the reasons we read. What is alarming is that during the last 50+ years, reading in America has experienced a real decline despite the way in which we measure it. It has been not only television and video games, but our very own culture. Poor reading skills correlate heavily with lack of employment, lower wages, and fewer opportunities for advancement.

We book manufacturers know this. The BISG estimates that sales of books per person fell 5% in 2001-2006. The Department of Labor says that the dollars sold per year fell 2%/year from 1995 to 2005. Reading scores are also declining which is even more disturbing as we look forward.

Enough statistics; what's our challenge? We have heretofore regarded (including yours truly) technology as the main culprit. That may not be the only demon lurking. An insidious cultural change involving "viewing" information (such as through movies, TV, computers, and video games) rather than "reading" information could change how we think, process, and act.

Speaking of acting, what should be our response as ones who make and love the book? We must support AAP (Association of American Publishers) in their "Get Caught Reading" programs, and others like them; we must support our local organizations in teaching reading to the underprivileged; we must vigorously pursue technological improvements to reduce the cost, and therefore make the book more available; and we should be willing to change ourselves and the way we look at things, and do them. Why? Because it is the right thing. . . . and the status quo will kill us.

Thursday, February 21, 2008

Purpose Driven Trust

Today we continue from the Small Groups Seminar at Saddleback Church, home of Rick Warren. As stated yesterday, Rick is not only a skilled pastor and preacher, but a brilliant business person and coach; most believe he could be CEO of a Fortune 100 Company. The point is that we can learn much for our businesses by evaluating his spiritual principles.

Today was all about trust. Most of us would acknowledge the importance of trust in our marriage, friendships, and spiritual lives, but how critical is it in business? In my younger years, one of my favorite sayings was, "Trust everybody, but cut the cards." My philosophy was to be overtly trusting, but not naive. This is not a bad approach, but I have mellowed a bit more since then, and I believe Rick would endorse it in a business sense.

The moderated position allows for receiving back what is sent out. If we treat others with trust, then we will be trusted more. What goes around comes around. We are also emotional animals, even the most type A personality. We are human and we care; we care certainly about ourselves, friends and family, but also to a degree, others.

This is where leadership, and maturity come in. When we make a decision to trust, it becomes contagious. It becomes contagious WITHIN our organization, as well as outside of it, and spreads to customers as well as suppliers. Just as trusting more increases the level of sharing in a small church group setting, it similarly deepens relationships in business. This working together in a spirit of trust creates real synergy. Profits even increase!

When we see the good in each other instead of the faults (remember the healthy lawn), we release the uniqueness and creativity of each person. Great leaders uncover and reveal the potential they see in each member of the team.

In your next bulletin or newsletter, do a simple survey. Ask your people to what degree they feel trusted. If it's at a lower level than you'd like, guess who's responsible? In a small church group, it is the leader. In your business, it's no different. The outcome can be changed; it's up to you.

Business Principles From Rick Warren

Many of you will recognize Rick Warren's name as the author of The Purpose Driven Life, and the founder & pastor of Saddleback Church in Orange County, California. After I first read the book 4 years ago, I became increasingly interested in the man, his values, and what he had accomplished.

Last November, while attending a BMI Meeting in Southern California, I made it a point to go to a service at Saddleback, and to meet and talk with Rick. What I saw and felt, was not only an incredible spiritual experience, but a well oiled machine that Peter Drucker would envy. Rick, in addition to being one of the most humble, "successful" people I have ever met, is a wonderful marketeer, coach, and manager.

This week, I am attending the Small Groups Seminar at Saddleback. There are several hundred people here from 41 states and 16 countries learning how to lead their churches in sharing their faith, trust, and to grow together as Christians. The content is solid and has so many lessons, business & personal, as well as spiritual, that I decided to write my blogs this week on the conference.

Since this is a business blog, I will not comment as much on the spiritual as on the business lessons to be learned. This will no doubt disappoint Rick, but you and he should know that all you need to do is ask me about my faith, and I will be happy to share it with you!

OK, what have we learned so far? The biggest point is that growth is not random. It is planned. It is a process. It starts with a vision and a mission. A vision of the mission is a projection into the future by the brain, which then blends it with emotion, heart and compassion.

But how we do what we do is critical. A list of values is therefore developed to evaluate how we conduct ourselves. Things such as risk taking, diversity, teamwork, authenticity, and humor are examples. When these interact with the blended vision, the conscience is activated.

Balance is most important. No one, or no one thing, should occupy most of the time (in business meetings or when sharing one's faith). Positive growth only occurs in a healthy, maturing, and balanced way. If steps is this process are circumvented, then poor outcomes result and the consequences must be paid.

An interesting point was made that plants don't bear fruit until they are mature. Maturation often involves struggles. The tomato plants in my garden won't blossom and bear fruit until they've experienced growth, probably some stress, and mature. The Northern Spy apple tree doesn't bear apples until it is 16 years old!

We don't bear fruit until we grow as people. Babies first walk, and then they learn to talk. Then adolescence and puberty kick in. Wow! As much as we may want to rush it, all of us must go through the process.

How mature are you & your people in the workplace? How much and what kind of fruit are you bearing?

Stay tuned; more tomorrow.

Thursday, February 14, 2008

Digital Printing and the Future of the Book

In my recent posts, focus has been on factors & circumstances that will affect the future of the printed book. Examples were the two blogs on the Kindle, Amazon's new electronic book, and Visant's acquisition of Phoenix Color. Both will have substantial impact, as will today's topic: digital printing.

As I work within the industry with the book builders and publishers, several key attitudes surface over and over again. My opinion is that we need to understand them.

If you're a publisher, you probably don't understand why the manufacturers aren't embracing the technology in a bigger way. Some have little or no presence in the digital arena; others have a print engine or two, but have made no real commitment. It probably seems like they (the manufacturers)think it's a minor need that only has potential to disrupt the work flow. They just want to keep on what they've been doing with the "big iron". Don't they understand the competitive pressures to reduce cost, provide customized content, and reduce inventories?

Now if you're a manufacturer, you might be frustrated with a demanding customer that wants price concessions while asking for change like smaller quantities, state specific, and quicker turnarounds that only serve to increase cost. Don't the publishers understand that all of this comes at a price; do they just want to have their cake and eat it too?

In my opinion, both points of view have their validity. Each has frustrations and challenges that make life more difficult if not less profitable. Digital print bridges this gap and enables all parties to get, at least a large portion of what they want. Manufacturers must realize that there will be more reinvestment, along with some obsolescence and increased short term cost. Publishers must concede that they cannot necessarily get everything they want, especially lower prices with increased cost to the manufacturers.

In light of electronic books definitely arriving, doesn't it seem foolish not to be embracing better ways to print the book? It seems time to collaborate honestly together to preserve and grow the very thing that we may be jeopardizing in resisting the move toward digital.

Wednesday, February 13, 2008

Kindle Evaluation

It was with great anticipation that I opened my just arrived Kindle electronic book, touted to be the second coming of the printed book. The marketing is amazing, they almost promote it as a pet; you don't "turn it on", you "wake" it. It is registered to me as the owner. I can download any digitized book in a minute or so with just one click for $9.99. Everything happens as they say it will.

The downsides are: 1) They are currently back ordered with about a 6 week wait. 2) The cost is $399, way too pricey for the average person, although it would be interesting to run the demographics on the average reader of a hard bound novel. 3) Most books are not digitized as of yet, and therefore unavailable. 4) One has to get used to "texting thumbs" to turn the pages. This will be easier for teens now than older adults.

The upsides are numerous: 1) Only takes 2 hrs to charge 2) Electronic ink is very easy on the eye. I read before bed for 1 1/2 hours with ease. 3) Bookmarks, underlining, highlighting, and a clippings option allow for the same kind of use as a real book, and is easier to do. 4) The size of text can be chosen, so there's no eyesight problem. 5) It has a universal power adapter, which can be used worldwide.

The bottom line is that not only is the Kindle easy to use, it has features incorporated that make the EXPERIENCE of reading it much like the real thing. The question that we as book manufacturers must answer is: How much will it REPLACE the book versus compliment its use? Being an eternal optimist, I would hope that the Kindle will only promote more reading, more positive experience with dreaming, learning, and make our world a better place for our children and us.

One final admonition though: we who love the book, must hope and expect for the best of outcomes, and yet plan for the worst. The Kindle is the real thing.

Visant & Phoenix Color

The announcement that Visant and Phoenix Color were "merging" was made public this week. Visant paid $219MM for the privilege, which is staggering considering the "challenges" Phoenix was facing. In the wake of the consolidation that has occurred in the last 2 years, it is noteworthy.

My first concern for this acquisition (let's not call it a merger) is for the Educational Publishing customers. To them, this will probably seem like just another joining of competitors which will serve to eliminate alternatives and perhaps result in higher pricing and extended delivery schedules.

This fear has been expressed with previous acquisitions of Moore-Langen (albeit by Courier), Jaguar (by Phoenix), and Visual Systems (by Visant). Now, Visant controls all but Courier, Moore-Langen, and Coral Graphics (owned by Bertelsmann).

The second troublesome similarity is that of buyer over paying. Most of these purchases were at roughly 1 to 1 of sales volume. Note that I didn't say anything about profit. There is only so much synergy in M & A; not all these buyers will begin to realize what they convinced themselves they would. What happens then? What could this mean for the book industry?

It would seem that Courier & Coral have decisions to make along with some of the other players in the Book business. Does Coral want to compete or be acquired? How much of an alternative does Courier want to provide? Is there another book printer that would want to enter into/expand their book component line? We can expect the Educational Publishers to be vocal in expressing their concerns.

Only time will tell. Please feel free to respond to this blog and use it as a forum.

Thursday, February 7, 2008

The Long Awaited Amazon Kindle

For over two months now, I have been on a journey. It involves my first labor of love: the Book. The Book is sacred; it is the way we learn, laugh, cry, work and play. With it we dream, enter worlds never before possible, and, yes, even make a living. Printing and the Book have been good to me for over 30 business years.

Accordingly, you can imagine how I have followed the progress of the electronic book, especially during the last couple of years. Do I think electronics will replace the printed and bound Book? Emphatically, no.

In the trade market (retail/novels), the 3 B's will preclude the demise: the beach, bedroom, & bathroom. The readability in a variety of environments, feel, touch, and character of the book are an experience in themselves, and most of us read (especially novels) for the experience, even though we are learning at the same time.

Learning changes the game significantly in the educational arena. Here, other dynamics are working that will change outcomes - a fact all of us in the industry must face. Even so, what will probably happen is that the differnet ways we use and experience the Book will be increased, and although the use of electronic books will increase, the number of hardbound books may not. Perhaps the outcome will be more readily available knowledge for our world. Wouldn't that be something?

In late November, Jeff Bezos of Amazon released the Kindle which may very well change the way we have looked at the electronic offerings so far. (See Newsweek, 11/26) Heretofore Sony's "Reader" was considered the best of a still somewhat flawed offering. The Kindle, with such things as improved E Ink technology makes the "experience" of reading closer to the Book. It's battery life is 9 hours and is easily rechargeable. The format is friendly & easy on the eyes, and books can be downloaded (if digitized) for $9.99 each in less than a minute. It is pricey at $399 however, but that figures to come down as production technology catches up.

After Christmas, not getting a Kindle, I ordered one and promptly discovered they were on backorder. There's a negative; but they must be selling well! Patience, however persevered, and I was notified today that it has shipped. Now I will have the opportunity first hand to evaluate, share, and post the findings.

Stay Tuned!

Monday, February 4, 2008

Having the Correct Change

Most of us have been caught up in the midst of an unsuccessful change, It may have been in our approach, a policy, or procedure. Or perhaps we have failed to see the need for one that should have been implemented sooner.

In either case, change is difficult for all of us, because we are creatures of habit, familiarity, and confidence. We like what we know, dislike surprises, & build confidence with repetition. At the same time, we all would say that change is important to not only success, but our well-being. If we don't paddle the canoe upstream, we aimlessly drift downstream.

If change is crucial, how do we recognize the need for it? 1) Build trust with your associates, laterally, upward, and downward. 2) Listen to them and be sensitive to what you hear. 3) Look for warning signs: a) People are into themselves. b) Morale is mediocre or down. c) Few take initiative d) Unforced errors occur. e) Deadlines or shipments are missed.

Once the need is apparent, we should take decisive action on what we've seen and heard: a) Confirm with others b) Ask for suggestions c) Involve the affected in the solutions (change).

To have the best probability of success, the decision to go ahead with a change is best made by consensus. It also may need to be an executive decision depending on the level and severity of the problem.

When you do move ahead, here are some things to remember: 1) Be enthusiastic and supportive. Many a change has failed for lack of executive commitment. 2) Explain WHY you are doing WHAT you are doing. If your associates don't understand, they will not support. 3) Be open, answer questions. Communication, communication, communication. 4) Follow up and make necessary adjustments along the way. 5) Celebrate the win. Recognize the contributions, document the improvements, and move ahead as a team.

When done right, you know it when you see it; you know you have the correct change.