It’s official. After a year of hand-wringing, political posturing and uncertainty, the powers that be have declared what businessmen have known for some time. We’re now told that the U.S. has been in a recession since December 2007, and the Bank of Canada soon followed that pronouncement with its own statement that Canada, too, is in a recession.
According to the Bank of Canada, tighter credit conditions, weak external demand, particularly from the U.S., and declining commodity prices are the main culprits. The financial crisis and recession had its origins in the housing and credit bubble and the high leverage in the financial sector. It started in the U.S., but other areas were not immune (see housing prices in Alberta). Canadians initially seemed relatively insulated, at least through the summer. True, the manufacturing sector suffered due to the high loonie, but high oil prices, tax cuts and rising real estate prices alleviated it somewhat.
Canada’s real gross domestic product (GDP) increased slightly in the third quarter, after remaining essentially flat over the first half of the year. Most of the third quarter gain occurred in July. The increase was led by the mining sector, notably support activities for oil and gas extraction as well as construction. And, despite all the hand-wringing coming out of Ontario, the country’s manufacturing sector increased as did production in the services industries with notable gains in the public sector and, to a lesser extent, in retail and wholesale trade. Nevertheless, economic growth has been weak for a year, particularly in export markets, and the disaster in the auto sector will cause real pain.
But, does it really matter whether the Canadian economy is in a recession? If you’re a worker who has lost a job or whose plant or mill might close, it sure feels like one. Although the annual growth of seasonally adjusted real GDP was positive during the third quarter, the numbers mask a deeper slowdown that we are all experiencing. With the turmoil of Canada’s auto industry hurting Ontario’s manufacturing base, the fall in oil prices affecting Alberta and Saskatchewan and the continued problems with the forestry sector, the economy is likely to get worse before it gets better.
More to the point, however, is that the printing industry has been in recession for some time. Over the past 10 years, the nominal (current dollar) value of sales of Canada’s printing and related services sector has inched up by an anemic 0.7% per year. The situation is even less rosy looking at the past five years only, with total top line sales falling by more than 15%, and the situation is even bleaker after taking inflation into account.
As one would expect with the decrease in revenue and production, the number of plants has declined as well. While the consolidation hasn’t been as dramatic as in the U.S., principally because of the lack of acquisitive “mega printers” and the large number of “mom and pop” printers serving smaller communities, there are still fewer printers in Canada today than a decade ago.
Many printers got caught in an unavoidable downdraft. But, others have themselves to blame for making things worse. The crisis has been particularly hard on executives who gambled badly with their business – they got into the wrong segment at the wrong time, took on risky investments, piled too much debt on their companies or leveraged their own finances to a catastrophic degree. Clearly, the economic slowdown and pain among many Canadian print buyers will further exacerbate this situation. Last year began with Quebecor World’s filing for creditor protection and ended with the closing of its progeny Grafikom. We anticipate there will be more financial difficulties during the coming year.
As depressing as these numbers are, however, it also means that many printers have already positioned themselves not only to survive but also to thrive. For example, Mark Airdrie, president of Toronto’s Serv-a-Trade Lithographers, a 40-year-old family business that offers a wide range of services for the trade, started fine-tuning his business in anticipation of a downturn as long as three years ago. He invested in equipment such as a CTP-system to lower his costs and mid-production digital colour printers to expand his product offerings.
“Because of my timely investments, we are in good shape to weather some tougher times. I will be able to make some money when things pick up,” says Airdrie.
Not every printer is well positioned though, and even those who are will be challenged. That doesn’t mean there aren’t things that you should be doing. It should be remembered that each printer’s situation is different, and the focus of owners and managers will differ from their employees. Yet, there are certain basic principles that, nevertheless, bear repeating.
1. Cash is king
Most printers are used to focusing on profit-and-loss statements. Re-orient your thinking. Take stock of your balance sheet; it is the key to your flexibility and survival. Debt will weigh on you. If your balance sheet is weak, it limits what you can do. Talk to your lenders NOW. Keep an eye on coming debt maturities, interest payments and your lease commitments. In the meantime, manage your cash position as best as you can. Cut inventory. Be very careful on your receivables. (More on that later). Work with your suppliers on your payables. Try to make sure you have positive free cash flow, or, at the very least, avoid burning cash. You will need cash to survive.
2. Focus
Identify the two or three key drivers of your business. Deal with reality. Face the truth early. You cannot assume that things will automatically get better when the economy turns around. Printers will need to be proactive. Pay attention to demand, costs and cash flow. Differentiate between core and non-core operations and assets. Identify what is most important to your business and concentrate on them. It’s easy to get distracted fighting fires, but to come out of the other side of this, you will have to maintain your focus on what really matters to your business. This doesn’t have to be fancy. Doug McMillon, recently appointed CEO of Wal-Mart’s international operations, says when he was head of Sam’s Club that they were going to “manage expenses, be thoughtful about how [to] spend capital, and have conviction about where [to] take risk.”
3. Examine your costs
This is an excellent time to look at your entire cost structure and work flow. A bad economy is one of the best instigators for companies looking at cost containment. Jez Metcalfe, owner of Signet Graphics, a seven–employee Woodbridge, Ontario trade printer comments, “Recession makes you streamline your business and look at it from another perspective, eliminate and reduce waste and increase efficiency.”
Focus on improving productivity and eliminating waste. Both will reduce manufacturing costs and are likely to improve print quality as well. By looking at the entire production process and flow of work, you will begin to identify bottlenecks. If you have less work, where are things moving more smoothly? What processes can be automated? What steps eliminated? What mistakes can be removed? It is an ideal time to introduce lean manufacturing initiatives. Streamlining operations means that fewer people are required to accomplish an equal or greater volume of work.
4. Only cut where it makes sense
Make sure there’s a purpose. Don’t try to be fair, but target areas that you let slide during better times. While most printers don’t have a lot of wiggle room, it’s always possible to clean out overhead and fat, prune the product line and invest in higher-growth areas. Incremental moves won’t cut it.
Managing labour costs is clearly a priority for many. Layoffs, as unpleasant as they are, may be necessary. Avoid across the board cuts. Focus on poor performers, overhead and administration – anything that doesn’t directly add value.
Signet’s Metcalfe had expanded to a second shift after installing their computer-to-plate system in 2007. But, work began to slow down in the middle of last year, so the second shift was just performing maintenance.
“After eight weeks, the second shift asked to be laid off. They were disappointed that we couldn’t give them work. We were prepared to keep going on, but they felt bad. So, we saved some money that way.”
It is important, however, not to underestimate or overlook the costs of layoffs. There are expenses for planning, severance and redistributing work. They can also reduce productivity among survivors.
While layoffs and reductions in work force are most common, other tactics may be necessary or preferable. Cuts to benefits, raising employee contributions to health care, reducing pension contributions and plant shutdowns or reduced hours are all alternatives to consider – however unpleasant. Nevertheless, layoffs do provide an opportunity to get rid of the poorest performers and restructure the remaining work. And, it can be argued that alternatives such as salary freezes or even reductions hurt morale and can drive away top performers, so they tend to be the last resort.
If you do have to let people go, do so in the right way. Say the right things, privately, one-on-one, and clearly tell the employee he/she is being let go and why. Rehearse what you are going to say and bring notes. Be direct in telling people the company can no longer employ them and explain the financial hardship causing the need for layoffs. Your employees have seen what’s happening on the plant floor, so while they may be shocked, they won’t be surprised. Let the laid-off worker leave with dignity and self-respect. If you are providing severance or other assistance, let the employee know. And, any information you can provide to your former employee about continuation of benefits or government assistance will be very helpful in assisting with his/her transition.
5. Take care of your remaining employees
Layoffs and financial problems can wear on your remaining employees. Uncertainty is killing the economy; it can kill your employees too. It is particularly important to maximize your personnel resources. Communicate regularly with your employees to keep their morale up. Talk about what the financial crisis means to your company.
The current situation represents an opportunity as well. Invest in training. The Canadian Printing Industries Sector Council has put together a Standards and Certification Roadmap, which includes a set of standards for a host of production processes. That’s a good place to start. Encourage your employees to explore process improvements, to tackle projects that might have been put off. Are they up to speed on the latest software? Have them cross-train. Do you have a fully functioning website? How useful is it in meeting the needs of your customers for communication and purchasing? How can it be improved?
It is also important to keep your best talent. Don’t forget your stars, whether they are in production or sales. Set tough but realistic goals. Get everyone involved. Make your workers part of the solution. Empower your front-line supervisors and engage your top workers. People want to grow and be challenged. Give them new opportunities to take on responsibilities and build their sense of affiliation with the company.
6. Stay close to your customers
Communicate, communicate, communicate. Get information from where the customer action is, and get that information to your operating people as quickly as possible. Recessions provide an excellent opportunity to propose new ideas to clients and to disrupt business relationships of competitors. Understand your customers’ needs and focus exclusively on them. Strategies will vary from one company to another. Provide long-term vision when talking to customers. Not everyone is looking to buy solely on price.
Jamie Barbieri, president of the PDI Group, the largest independent sheetfed printer in Quebec, notes that they have been able to deal with the current situation primarily based on the relationships they have developed.
“You can’t continue to sell 40-inch output.” Barbieri believes there will be another big push from larger customers looking to consolidate.
“Customers want to do business with people who will be in business, so they are looking at service and quality. The RFPs we’ve seen are looking at our financial statements, strategic planning and vision.”
Be a resource in helping clients make the most of their marketing budgets, and help them get the most out of their print budget. Reinforce the value of print. Do you have any particular knowledge that can help them be more effective? For example, changes in postal regulations provide an opening to show prospects and customers how to save money. On the production side, work with them on improving better files. This helps you, of course, but also cuts their costs and cycle time. It’s to their benefit.
It is critical to differentiate business in some other way that competitors can’t copy or mimic. Provide some new product, alternative approach, or insight into the company’s business that you can aid them with. Inventory, fulfillment and administration all represent outsourcing opportunities that help them eliminate their costs. Sales of your clients who are buying print should be a major focus. Give them ideas on how to increase sales.
Also use this opportunity to evaluate your customers. Who is profitable? In bad times, managing cash and receivables are critical. Identify your higher risk customers and decide what to do with them. Options include cutting them off or working out a way to keep the relationships going. Extending longer credit terms can be a way of differentiating yourself, but it’s dangerous. You might win contracts, but it could be a real problem if they default.
Jez Metcalfe of Signet Graphics says, “My biggest worry about the recession isn’t [the volume of] my work coming down, but if my customers get caught up, either they go bankrupt or their customers go bankrupt and they don’t pay me. It’s not just that my sales go down, but it’s the loss of payment that hurts. I’ve never been strict on credit terms, but I am trying to reduce my risk. I’ve established credit limits. I try to rein people in on payments, even if that means they go somewhere else.”
7. Identify new markets and opportunities
Too often, businesses think they’ve taken care of execution by doing the same old thing, only better. Winning execution means doing it perfectly and then finding new customers and new markets. Some regions, industries and businesses are stronger than the others. Grow by identifying the growing businesses and going along for the ride.
So, where are the growth areas? For now, the growth areas are those areas heavy on bureaucracy: health services, educational institutions, government. Engineering firms, insurance, pharmaceuticals and biomedical also should hold up well. Tim Flaman, vice-president of sales and marketing at West Canadian Digital Imaging, a 240-employee firm with facilities in Calgary and Edmonton, notes that while a number of large engineering firms and their clients have delayed projects, it has not hit yet, as they continue with their current work. Given the pace of growth in Alberta the last two years, things might have slowed down a bit, but “it’s closer to normal,” he says.
Flaman also notes that West Canadian’s commercial business is holding up well and “hasn’t slowed at all.” Their clients have increased their direct mail operations and their signage business is also doing well.
“The digital world is slightly different than commercial offset,” he says. “Digital is more what it’s worth or for quick turn‚Ķa lot of work is fixed with customers, on contract, so we’re not quoting every job.”
Companies in more challenging environments might try some new tactics, however. If you are encouraging your customers and prospects to use direct mail, it might be a good idea to use it to generate new customers or to show your existing ones what can be done. Signet’s Metcalfe is “actively marketing the company,” which he never had to do before. He’s using his in-house prepress and design staff to develop a website and marketing materials. Metcalfe is even considering hiring an outside salesman.
8. Sell – or buy?
Sometimes it’s just best to sell assets, or even the entire business. While the price you get may not be the highest, you still may get a better return. Perhaps, you have a press that no longer fits your work, but that someone else might be able to use?
The ultimate resolution, of course, is to sell the entire business. Tom Blockenberger, of Vancouver’s Broadway Printers, did just that last year, selling the 97-year-old business to Thunderbird Press. Business conditions had become increasingly difficult in B.C.
“The market meltdown has affected everyone,” says the fourth-generation former owner Tom Blockenberger. Faced with increasing property taxes, Blockenberger was forced to evaluate his situation. “A lot of the value of the firm was in its real estate. It was too valuable to be used for a printing company.”
The latest round of property tax increases forced the issue. “We had to move anyway, but it was just too expensive.” The business was sold to Thunderbird, more than doubling their revenue, while the land was sold “for fair market value.”
For every seller, there is a buyer, and this market presents an excellent opportunity to buy businesses or equipment at attractive prices. You don’t want to compromise your current operations by overleveraging, assuming financing is available. Before buying another business, you need to assess whether you have enough of a cushion to survive a long downturn in the business. Can the business you’re looking to buy realistically generate enough cash flow? The last thing you want to do is take a good business and acquire a poorly operated competitor.
On the other hand, sometimes there is a good fit and assets can be acquired. Thunderbird Press’s purchase of Broadway Printers is one example. Another is the purchase of Grafikom’s Sherbrooke facility by Phipps Dickson Integria.
President Jamie Barbieri notes that the Quebec market has been poor for a number of years. Diversification of customers and printing capabilities is part of their long-term strategy. So, when the specialty plant became available, they moved quickly to acquire it. It was a good fit, Barbieri explains, adding new UV printing capabilities to PDI. It also provided the opportunity to add extended services and new applications for the specialty card market.
9. Keep building
There are other ways to build besides acquisition. While you have to cut costs and conserve cash, make sure to keep up product development, innovation and brand building. If you have the wherewithal, invest in new equipment or capabilities to be more productive as we come out of the recession.
For example, looking to counteract a decline in some of its core markets, BCT Ottawa, Business Cards Tomorrow franchisee, recently upgraded its print manufacturing capabilities to include high-quality, short-run four-colour printing with the installation of a Presstek 34DI press.
“Our traditional sales were flat so we were looking for a growth opportunity,” says Graeme Olmsted, co-owner. Since installing the press, Olmsted reports that sales are up 10%, even in the face of declining traditional sales. Olmsted realized that short-run colour was a potential growth area, and he wanted the next step up after digital, runs between 500 and 10,000.
Similarly, Melan, a full service marketing print products provider in Saint-Laurent, Quebec, near Montreal, recently installed Xeikon technology. Melan uses Xeikon to produce oversized posters, banners and signage for its expanding customer base. Garo Nazarian, owner of Melan, also sees “additional opportunities with the Xeikon for variable data printing.
In today’s economy, our customers are looking for more than “just a printer.” The Xeikon is our springboard to provide the value-added services that enhance our customers’ marketing print projects.”
West Canadian Digital has just moved into a new 60,000 sq.ft. facility. They laid it out to maximize efficiency. It’s had other benefits as well, improving employee morale. “Everyone has their own locker, and people love it,” says Tim Flaman. “Little things make a big difference.”
10. Maintain a sense of urgency
Finally, it’s critical to maintain a sense of urgency. Your survival is at stake, and you have to move quickly, if deliberately. As Andy Grove, formerly of Intel, puts it “Only the paranoid survive.” Remember, Alan Kay – “The best way to predict the future is to invent it.”
Good advice, in any economic environment.
Technology is changing the printing industry. Once considered part of the manufacturing sector, the printing and graphic communications industry is now much more a part of the service industry. And, for no one is this truer than for people working in the graphic arts and prepress areas. Working with new technology is changing the nature of printing workplaces.
The adoption of new technologies is radically changing the printing and graphic communications industry and its workforce. Growing use of the Internet has intensified industry competition. Business practices are evolving. Customers are becoming more involved in the printing process; sending pre-packaged PDFs ready for print has become the norm.
The result for the industry is a shortage of skilled workers with the ability to work with these changing technologies. The Skills and Technology Roadmap report released by CPISC in November found that the industry needs new workers that are able to operate complex new print machinery and also those who can understand and leverage the benefits spurred by the use of information technologies. This need for workers with new and diverse skills is also compounded by the fact that those already in the industry are aging. The CPISC Labour Market Information report found that 49% of the industry is aged 46 and above, making the retention and replacement of older workers another issue. The combined impact of an aging workforce and the introduction of new technologies means there is a greater need for well-trained printing and graphic communications professionals.
However, access to industry training is not without its challenges. A 2007 report by CPISC on industry education and training programs found the following:
Although 41% of new employees have no formal training, most companies find it difficult to release employees for training. Industry suppliers offer considerable training opportunities, but little is offered as distance or technology-assisted learning. More than 90% of in-house training is employee-to-employee training.
To help, CPISC has been working with industry employers, employees and education institutions to develop national skill standards. These standards reflect both the impact of technology on skills and the way the industry is now organized.
A comprehensive list of basic and core skills have been developed for everyone working in the printing and graphic communications industry, with specific standards and occupational profiles also developed for people working in press operations. For those interested or already working in prepress, specific skill standards are in the process of being validated by the industry before being officially released at the CPISC Forum in June this year.
Like all of the national skill standards that are being developed by the printing and graphic communications industry, the prepress standards have benefits for employers, employees, educators and students.
Agreed standards are essential in ensuring the industry has access to a more educated, adaptable and highly-skilled workforce. For prepress – including the graphic arts – the standards effectively provide an agreed checklist of skills that an employee working in the prepress area should know and be able to do on the job. For employers, this means they can better assess the skills of their current and future employees and more easily identify training needs. The ultimate result for employers is better trained and more adaptable workers who can make the most of changing print technologies.
For employees, standards allow them to assess their current skill level and identify opportunities for training. Employees who advance their skills are likely to have enhanced long-term employment prospects, especially if employers of the future demand that the established national standards be met.
Education and training providers can also benefit from the national skill standards – and many already are. Education and training providers across the country are using the press standards to update staff training programs and institutional courses, with prepress training programs also expected to improve with the release of the standards in June.
Matching program and course content to the skill standards means that technical training providers will be able to produce job-ready graduates who will be sought after by industry employers. This is because graduates will have the skills industry deems necessary for the success of new workers.
The national skill standards are also important because they recognize the growing need for printing and graphic communications employees to understand and be familiar with the entire print process, from sales, customer service and estimating through to prepress, graphic design, printing as well as binding and finishing.
While the specific press, prepress and finishing and bindery skill standards focus on the skills needed to work in each area, the basic and core skill standards cover all employees in the industry and are designed to ensure that every employee has a thorough understanding of the entire printing and graphic communications industry and its main processes and operations.
For future students considering training or re-training in prepress and the graphic arts, the standards will also be useful in assessing available training programs and monitoring their career progress into the future. Students will be able to identify those training courses and options that provide them with the specific skills they need to meet the national standards.
CPISC is also working with the industry and education and training providers to identify options for improving both the quality and delivery of training programs into the future. We know that printing companies will increasingly require adaptable, multi-skilled workers who can operate computerized equipment, analyze problems, make decisions, work cooperatively, interact with customers and enjoy a clear understanding of the entire printing production process. And, while many education institutions offer good, industry-related courses, the industry also needs to begin exploring a wider range of training programs and delivery models to ensure courses equip emerging industry workers with the skills they require.
The training itself should be flexible, geared to the needs of different workers and developed through collaboration between current training providers, such as suppliers and education institutions. Training programs of the future also need to reflect the industry’s strong reliance on employee-to-employee knowledge transfer – with greater support for on-the-job training, apprenticeships and mentoring – as well as helping employers and employees access training in formal and non-formal environments.
CPISC is also working with industry professionals to develop career pathway tools. These tools will be designed to help both employers and employees assess to what degree they meet the national skill standards and then develop a career training pathway. This is likely to increase the demand for industry-relevant training programs and the need for ongoing collaboration.
By continuing to work together, the printing and graphic communications industry can ensure it remains one of the most economically important and technologically advanced industrial sectors in Canada.
| Online learning | Direct industry training | Traditional secondary school training | |
| Name | Lynda | Heidelberg Canada Print Media Academy (PMA) | Ryerson University: Certificate in Graphic Communications Management |
| Description | Lynda is a site that hosts over 500 online courses (composed of 35,000 instructional videos) centred on software topics in the graphic arts. Founded in 1995 by Lynda Weinman, a graphic arts and design professional, the site has an award winning reputation for delivering convenient training modules at a low cost. | The academy is a direct response to the many technological changes occurring in the graphic arts today. While many educational institutions offer training in pre-press, the PMA is one of the only to focus directly on press. Becoming certified in 2005, the Canadian facility became one of 18 across 15 countries. | A career focused certificate program offered on a part-time evening basis with the School of Graphic Communications Management. The certificate is a combination of practical and theoretical knowledge. |
| Advantages | • Ability to learn remotely from any computer with an Internet connection • High-quality training, delivered by industry professionals • A well-trusted provider, delivering training videos for companies such as Adobe • Low-cost, high-value training. |
• Professional industry experts deliver highly current knowledge • While some courses are manufacturer specific, there are many general modules that improve industry know-how • The courses are designed for professionals; they are packed with knowledge and delivered in convenient day modules. |
• An opportunity to gain a university certificate from Ryerson • Learning using the latest technology • Courses delivered by Professors and industry professionals • The breadth of knowledge across all courses creates possibility for students to embark on new career paths. |
| Approximate cost | Access to the site starts as low as $25/month. Premium membership with access to training files start at just below $400. Multi-user licences are available at a reduced per person cost for companies wanting to offer the training to their employees. | Costs are per course and range from about $200 to $2000, depending on the number of days of training. | Comprised of 10 courses at an average cost of $450 per course. |
| Time investment | Varies per course. As an example, a module in Font Management is just about nine hours. Because the site offers open access to all courses, the training can be done any time, whether it be five minutes or five hours per day. | From 1 to 5 days per course, depending on the course | Approximately 35 hours per course. |
| Course name examples | • Adobe CS4 • Microsoft Office • Font management • Acrobat |
• Heidelberg Press courses • Print buyers university • Quality control for print • The world of print media |
Three hours per course per week for about 12 weeks (though some courses run twice per week). |
| Additional information | www.Lynda.com | www.print-media-academy.com | www.ryerson.ca/ce |
All of us are familiar with barcodes. We see them everyday being scanned by cashiers as we make our purchases in a shop or supermarket. Originally, barcodes were created to automate the process of checking-out items from grocery stores, making it easier to keep track of the inventory. The traditional barcode uses vertical lines and spaces to encode data and is referred to as a linear or one-dimensional barcode. Today, these barcodes are very common and are used worldwide to encode information.
“I don’t want to make the wrong mistake.” – Yogi Berra
Where do you look for answers when the economy is imploding? Who out there has sage advice on economic survival for the small business owner? There’s a lot of talk about helping “Wall Street” or “Bay Street,” but not much about “Main Street.” As always, the small business owner as an individual doesn’t make a dent in the economic landscape; however, small business en masse is a big deal. So, where’s the help?
Sorry to say that for most of us, small business owners and entrepreneurs, the solutions to our financial problems are exclusive to us. The only lesson the past teaches us with respect to economic survival in tough times is that we are our own salvation. The same determination and ingenuity that propelled us from wage-earner to wage-maker will help us to persevere and maybe even to prosper.
It’s tough to think in those terms when talking heads on TV graphically compare the current economy to the worst financial calamity of the past century. What could be worse? But, the first step in surviving financial upheaval is to avoid the panic that so many are drilling into our consciousness on a daily basis. Hear them, but resist the temptation for easy answers delivered in 15-second sound bites. A problem that took years to create, outside of our control, cannot be corrected during the attention span of a channel-surfer. The solution will require rational decision-making based on good information and implementation of workable steps leading to achievable results.
My best recommendation is to maintain stability in the face of uncertainty. As an employer, you have employees who are depending upon your decision-making skills to keep alive the business which feeds all of you. People make up a company. It’s not four walls surrounding an empty warehouse or a vacant office; it’s the people working in that environment who bring life to the enterprise everyday. Your people are smart; they read the same newspapers you do and watch the same TV news that you do, so what’s the point of ignoring the obvious? Talk to them. Listen to them. Everyone in your company has an economic stake in the business. Your people understand that. Your people are a valuable resource, easily cut loose and difficult to replace. In order to survive the turnaround, you have to survive the downturn. In order to capitalize on the recovery – and it is a certainty that there will be economic recovery – you’ll need your best people. Maintaining stability in your ability to deliver goods and services ensures your place at the head of the line when demand returns but fewer providers are around.
Before you’re tempted to cut off a leg as you run this race, consider the options for maintaining your human capital. Consider the investment you’ve made in your people, their special expertise and their heart. Then, compare that to the cost of replacing them. I believe together with your people you’ll be able to come up with workable options for retaining your talent. There may be some dead wood to cut loose, but be careful to hold on to your star performers. Talk to them. Ask them questions. Let them give you options for maintaining stability. You will find that your people can be incredibly creative when it comes to ensuring their own job security.
In keeping with the maintenance of stability in the face of uncertainty, you need to look inward and maintain stability in your own world. To the extent that is possible, you need to ensure that your home life remains as insulated as possible from the fear and panic pervading the world. That is not to say that you tell everyone in your household to go on a shopping spree, but to address the realities in a calm, rational way with your spouse and family (I know this is tough, but you’ll thank me later!). Many decisions and personal financial commitments were made during better times, but under the spectre of hard times, those decisions have become financial burdens that weigh heavy and cause you to lose sleep every night. Some of those commitments may be dispensed with, or modified, but with some, there simply is no way around, either because they are moral obligations or promises made to ensure a better future for your offspring. Something’s gotta give! Either you cave in from the burden, or you adjust to it. You can adjust your goals to be less ambitious, not because you are any less of a person, but because the environment dictates that expectations must change in order to survive to the recovery.
These are hard steps, but necessary steps, to ensure that you will survive the recovery. Most businesses will endure through the hard times, and like the little train that couldn’t, those businesses will run out of steam just shy of the crest of the hill. What I am suggesting to you is to pace yourself and your resources, so that you can endure the downturn and salvage enough to build on when the recovery happens, which is an issue of “when,” NOT “if!” The billion-dollar question is: “How long?” I am suggesting that you need to ration your resources to buy as much staying power as possible, so that you can endure the many months or few years that a turnaround requires to take hold. There are signs that this recovery will happen faster (I certainly hope so), but better to hope for the best and be prepared for the worst.
Should you go on a shopping spree? Should you invest in new capital? Should you be buying new equipment? Should you expand your marketing efforts and advertise shamelessly? Should you hoard money like a miser or spend like a drunken sailor? Each question has to be evaluated in light of the short-term cost relative to the long-term benefit. Each issue has to be addressed before you run down to your last dollar. You need to make informed, rational decisions in a climate of calm deliberation. You need to evaluate the risk of committing valuable resources (your time and your money) against the benefits derived and the payback. You need to ask yourself: “Do I really need this at this time? Is there a less expensive way to achieve my goal? Will it generate a positive payback in a reasonable period of time? Will it help me to survive? Will it enhance my recovery?”
Sometimes, it is best to act counter-intuitively, to do the opposite to what conventional thinkers say. That may be a perfectly acceptable strategy in some circumstances, but consider it in light of the facts and the environment, and avoid convincing yourself into the wrong solution with an unrealistic or deluded perception of the world. Many lives are affected by your decisions, best to err on the side of caution. Don’t panic. Don’t rush. Get as much information as possible in order to make an informed decision. Evaluate options. Plan. Work the plan. Be prepared to modify the plan. Plan to survive, survive to win!
Perhaps the toughest thing you will have to do as a business owner is to accept that your particular business model no longer works. I’m not talking about a short-term downturn, but a radical shift that has changed your marketplace and perhaps changed the prospects for your industry or your particular business. You can rethink what you do and how you do it, you can re-invent yourself and your business, you can adapt, or you can slowly bleed, paying tomorrow’s bills with yesterday’s equity. The future is not grim, and that same determination and ingenuity that got you into business in the first place will see you through to better times. You may be broke, which is to say you may be short on resources, but you’re certainly not broken. You can’t allow the world to bankrupt you of your thought process and your initiative and your creativity. There is always a solution and a better tomorrow. While others whose vision is clouded by doom and gloom may be paralyzed by irrational panic, people with vision can see that illuminated future and will reach for it. Grab your flashlight and find your way; it’s there waiting for you.
We have all been reading that automation is the key to saving money, eliminating errors, increasing capacity and getting the most out of our existing equipment and resources.
Getting started can be made easy with do-it-yourself software and your own server. The following are some suggested server setups that can be implemented with relatively low costs.
1. FTP Notification Server
Give your customers professional 24-hour service with software to automatically monitor numerous ftp sites. Notify customers directly via email of successful downloads or issues. Automatically file jobs on the server, print PDF proofs and notify sales and CSRs of new jobs. Enfocus LightSWITCH software installed on a Windows server can accomplish all of this.
2. Preflight & Package Server
Solve PDF creation issues with Creative Suites automation. Use packaged fonts and images to create PDFs to your specs. Files are opened and saved on the server so design work is not interrupted. This server can operate 24/7 so PDF files are saved and uploaded or sent to press automatically. In a Mac environment FullSWITCH with Creative Suites on an OSX server can service several users submitting Indesign, Quark and Illustrator files.
3. Collect, Check and Rip Server
Receive and check PDF files for press using Flightcheck. Automate existing hot folders for imposition and submission to press. Rip jobs overnight for printing at start of morning shift. Automatically create and print custom lists for press and production. Timed job release keeps a steady stream of data processing. FullSWITCH with Creative Suites and a Flightcheck plug-in on a Windows or Mac Server can accomplish this.
4. JDF Workflow Server
Prepare jobs and data for high-end workflow systems with PowerSWITCH. XML and JDF capabilities enable this server to pickup existing data and format it for use in other workflows. Reducing data entry and automating job information eliminates routine tasks and errors.
5. Integrated Web-to-Print Server
Use scripting to communicate with existing online sites, pickup XML data for use in data entry and job reports. Automate online downloads and collect files for digital or offset printing. PowerSWITCH running on a Mac OS X server has built-in Applescript, Javascript, XSLT, XML, JDF and XMP capabilities to customize the setup for each site.
It is always a good time to look at your workflow and see where you can improve it, update it and speed it up. Automation 24/7 is possible and can run on existing hardware and software.
These five configurations are simple suggestions. The power of these workflow tools to customize any workflow is immense. You are basically controlling your communications, your information and your file generation. These tools make it easy to do it your way.
Information on automation workflow tools and plug-ins can be found at www.crossroads-world.com and at www.enfocus.com.
My following comments are probably going to upset a few of my competitors, but since I often have them upset about something or another, I’ll let it fly.
Most printers should have their own bindery! I wouldn’t have said this 10 years ago, but a number of factors in the industry have changed. There are five specific reasons why I think a printer should have its own bindery. First, customers are requiring an increasingly faster turnaround. Second, the needed bindery skill sets for straightforward jobs are declining every year. Third, the space required to house a bindery today versus 20 years ago is substantially less. Fourth, if managed properly, an in-house bindery should have 100% utilization. Last, as printers increasingly understand the value of marketing, an in-house bindery should be a selling point, a marketing tool and an expanded printer’s offering.
To elaborate my first point, an in-house bindery must focus on straightforward, problem-free jobs. With proper attention, such as managing “flow” of jobs directly from the press to the various bindery operations, delivery times can be tightened. The in-house bindery can anticipate (by simply looking across the plant) what is coming and what its priorities should be. This allows the printer to visually manage the process and have faster delivery times. An in-house bindery allows the printer to get advance samples to clients more quickly and permits the printer to see print problems more readily. If, for example, the colour is too light or too dark, this is a problem only the printer and the customers would see. It is almost impossible for a trade bindery to be a quality control source for variations in the printed product.
Second, 20 or more years ago, binderies required a much higher skill set than they do today. Trade binderies then, for a number of reasons, attracted and retained people with high skill levels. In my opinion, the skill set required to run new machinery, such as folders, has been remarkably reduced in recent years. With the use of stackers, electronic adjustment controls and computer driven setups, the skill required is greatly reduced. Compensation claims are also greatly reduced.
Third, 20 or more years ago, it took three folding machines to produce what one new machine produces today. Space requirements are, therefore, substantially reduced and the very fact that there are fewer people required means there is less room needed for lunchrooms etc. Because fewer people are needed for management and there is substantially faster flow, reduced space is required for an in-house bindery.
Fourth, an in-house bindery should be a component of an overall marketing effort. Your clients should be invited to see your bindery, your sales force should be more in tune with the technical capabilities of your in-house bindery and your sales people should sell to the bindery’s strong points. Whatever its strong points, sell your in-house bindery as an added reason for why your customers should buy from you.
My last point may be the strongest. An in-house bindery has potentially 100% utilization. A number of years ago, when I was the president of the world’s largest bindery association, a number of our members who ran large trade binderies did an interesting exercise. Each of us took our last five years of financial statements, broke them down per month for a total of 60 months, and wherever we found a loss, simply plugged in “zero.” A magical, unpredictable yet consistent result occurred. On average, our profits doubled. What that told us, as trade bindery owners, was that the issue of profit was not managing the busy months, but rather “plugging the holes” in the months where there were losses.
By and large, this exercise in the real world has limitations because a trade bindery always has slow months. Nevertheless, what does this exercise mean for printers when considering the option of installing their own bindery? Simply, when properly managed, a printer should have 100% utilization (or close to it). How? Calculate that your overflow work as well as many of the difficult jobs and the highly specialized ones will go to a trade bindery. Project volume so that there is always enough work to keep your people busy. This will require cross training, so that operators can run, for instance, a folder and a stitcher or a small perfect binder and cutter, etc. There is a phrase that is true: “Work always expands to fill the time.” If your workflow is properly managed, an in-house bindery will be a profit centre.
I would encourage you to talk to some of your trade bindery suppliers. One or two of them may be stuck in the dark ages and may be defensive, but the more progressive ones can give you good guidance on what new and used machinery models would be appropriate for your company. For instance, buying used folding machines is often an unwise decision, whereas a used stitcher is sometimes a smart buying choice. When your next budget discussion comes around, think bindery – your own. It would be another profit centre, another selling point, another volume builder and just a good choice to make.
Now, to conclude this counter-intuitive approach (especially from a bindery guy). It is my conviction that trade binderies will eventually have to focus more narrowly on single products and have highly-focused equipment. A bindery must evolve into doing specialty operations that no printer would ever want to spend the capital buying, such as spiral wire binding equipment, high speed tippers, miniature folders, etc. A bindery’s equipment also needs to be highly focused and must be the most productive tool that money can buy.
Trade binderies will always be around because they will always be needed for overflow work or when a printer’s bindery equipment is broken. Any trade bindery that continues to do just the same basic jobs that a printer’s in-house bindery can do, will not be successful and will eventually go out of business. So set up your own in-house bindery, it will surely be a profitable choice!
Q. We continue to get complaints from PC users that we send email using Apple’s Mail application. They get the message as an attachment and don’t see the attached files. Often they end up running the wrong file in our ad because they miss the instructions in our email. How can we avoid this?
A. Email messages are encoded so they can survive transport over the Internet. The messages are also segmented automatically so that the servers and mail clients that handle them can determine what makes up the message. Generally, email consists of “plain text” and/or “html text” as well as attached files. As a rule, file attachments should also always have a “file extension” in the filename.
Some email clients such as Outlook and Outlook Express have trouble deciphering the elements of a mail message – especially if they originate from Apple’s Mail. So, some receivers may get a partial message or a blank message with the content for the message as attachments. The safest way to send email is in “plain text” with files properly encoded and attached.
In Apple Mail, choose “Attachments” from the “Edit” menu before you create a message and make sure the following are checked:
“Always Send Windows-Friendly Attachments”
“Always Insert Attachments at the End of the Message.”
Otherwise, the parts of the message may get misinterpreted by receiver’s email client application.
Also get in the habit of pressing the “Attachment” icon. If you drag and drop, the attachment goes in the mail message – inline – with the text. If you use the setup mentioned above, attachments should drop to the end of the email and appear as attached by receiver.
When sending files to a publication, you should always use a “zip” archive. Like a “Stuffit.sit” archive, it should contain the required ad elements. You can create a ZIP in the Finder by selecting files or folders and choosing Compress “Folder-name” from the contextual menu (right-click or control-click on the item). The Finder will create an “Archive.zip” file – which you can rename.
Q. My iMac wouldn’t turn on this morning. I checked all the connections, and they were good. I, then, unplugged it from the back and plugged it back in. After that it started up. Is this a normal thing? Is it a potential problem?
A. I wouldn’t call that situation “normal,” but I have seen it before. By unplugging your iMac’s power cord, you have reset the SMC chip, which controls power settings. All Macs these days have a System Management Controller (SMC), which manages all of the power functions of your computer. These include power and thermal monitoring, sleeping and the battery. It also controls the fans, the Sudden Motion Sensor in laptops and the power switch.
We’ve also heard from MacBook users who have trouble waking their Macs from sleep. (Closing the lid, waiting until the LED pulses and then re-opening the lid often works). The method for resetting the SMC on laptops varies – you can check out how to reset your Mac model at http://www.apple.com/support/. The fact that Apple put in an SMC chip means that it is “normal” and that it could lead to potential issues.
Whether it’s a potential problem is also a good question; power is always a potential problem especially in older homes. The best advice I can give is that all of your desktop computers should be on a “smart” UPS, which is an uninterruptible power supply with a line conditioner. It is basically like a car battery with a line conditioner to absorb spikes in voltage/amps. They range in price from $100 - $2000 depending on the protection you need.
An inexpensive model for the iMac (BackUPS 350VA) would be around $70. One that could cover three Macs (BackUPS 1200VA) would be around $200. I have the latter in my office for my Mac and Internet modem, router and Time Capsule. That would give you between 10 – 15 minutes of runtime if the power went out and generally provide “clean” power to the equipment. Models for larger Macs and servers, which would give about an hour of running time, would cost about $1500 and up.
We all know instinctively that we like whiter and brighter papers. They give us a clean feeling, print more vibrant colours and catch our eye more than dull newsprint. This demand for brighter papers has been recognized by paper manufacturers, but the way they accomplish this causes problems for printers trying to achieve accurate colour.
What are Optical Brightening Agents?
Paper mills add chemical additives called optical brightening agents (OBAs) into their mix that artificially brighten the paper. Paper is naturally yellow as a result of the pulp it’s made from. We see this as objectionable and dirty for high-quality colour reproduction. We offset this yellowness by either removing it, usually by bleaching or other expensive chemical processes, or by adding blue. Optical brighteners do the latter by absorbing invisible ultraviolet light and emitting blue light through a fluorescent chemical reaction. By evening out the yellowness and blueness of the paper, the vibrancy of colours that the paper is capable of reproducing is increased.
OBAs are found in almost all papers today, even newsprint. Some papers are advertised and “un-brightened” or “brightener-free” yet still may contain traces of OBAs that may not have any great effect on the final product. The best way to tell if a paper is brightened and by how much is to look at a sample in the dark using a handheld black light to see if it glows blue. Usually paper manufacturers specify the brightness on the package as well; unless the number is very high (95+), it is not certain that the brightness is enhanced by OBAs.
Problems Caused by Optical Brighteners
The effect of OBAs can cause colour casts if left uncorrected, depending on how much UV-light is present in the light source the print is being viewed under. If the light source includes UV, such as daylight, the OBAs are stimulated and will add a blue cast to everything, primarily the whites and lighter colours. If there is very little UV in the light source, such as an incandescent bulb, the brighteners are not stimulated and the effect is not present. Even standardized lighting conditions, like D50 or D65, do not emit the same amount of UV-light from bulb to bulb and can change the print’s appearance. Colour management already has to take the intended visible lighting condition into consideration, but now the amount of OBAs in the paper and the invisible lighting condition are also important.
Proofing a press-sheet that is brightened with OBAs is a problem as well. It wasn’t an issue when a proof could be made on the same paper that the job would be printed on (by using a proofer like the Kodak Approval). However, inkjet printers using proofing papers are now the norm for colour proofing. Inkjet proofers have to simulate not only the printed colours, but the paper and the effects of the brighteners as well. This simulation can only be achieved for one light source at a time since in the simulation, the effect of OBAs is created by ink, not the media it’s printed on.
Adjusting for this mystical agent that messes with colour (depending on how you look at it) is a significant challenge, made even more difficult because the effect of optical brighteners varies over time. It is a chemical reaction and, therefore, is used up over time. How the print is kept will determine how long the OBAs will continue to react. Temperature and exposure to light have a lot to do with the shelf life of the OBAs in paper. This begs the question: when do I colour manage the print for? Today? Or down the road when the effect is exhausted?
Dealing with Optical Brighteners
The common practice when setting up a colour management system for a press and proofing that includes brightened paper is to filter out UV-light when taking measurements so that the OBAs are not stimulated and the effect is not present. This basically ignores the problem, in hopes that no one notices. Some places will try and make adjustments by hand, by altering tonal curves, taking colour management back from being a science to an art, as it once was.
There is a new commercial product that is designed to compensate for the effects of OBAs for specific light sources. The product adjusts colour management profiles that can be used for proofing and press outputs. Many of the advanced proofing systems also attempt to adjust for the effects in their own way with some success, but their common practice still uses measurements that do not stimulate the OBAs.
Optical brightening agents work with and against you. They help to create a bright paper capable of producing vibrant colours under the right light, but can be a troublesome foe to be reckoned with when striving for accurate colour reproduction.
“What’s the deal with photo books?”
Digital printing provides an alternative to offset lithography for those looking to produce a limited number of books. Furthermore, digital printing also allows for variable printing, whereby a unique image is printed with every pass. This print on demand (POD) technology has introduced a tidal wave of potential for self-publishers looking to print high-quality colour work and scrapbook enthusiasts alike. Welcome to a world of opportunity: the photo book.
The photo book is a unique concept. Recent innovations in digital printing and easy-to-use downloadable software have put the power of book publishing into the hands of the masses. Consumers can now create quality personalized books for a relatively low cost.
My curiosities led me to google “photo books” to see who provides this service as well as to better understand this phenomenon. My search came back with 4,970,000 hits. Whoa. Considering “strawberry jam” and “telephone poles” each returned less than 800,000 hits, there is some big talk about photo books on the web.
Photo Book Providers
Please understand that this is by no means an exhaustive list of photo book providers and what they offer. I am going to concentrate on the three main avenues to create photo books, examining a few providers within each. First, in-store photo book options, like you would find in a Walmart or Black’s Photography store, offer users a tangible workspace and on-site support when creating their photo books. They upload their photos and then import them into photo book templates provided at an in-store kiosk. Customers then view a digital proof, and the store takes care of the rest.
This isn’t much different from the second option: online creation and ordering. The difference is that there is no on-site support to help with any snags you may encounter; however, there are customer service representatives you can contact by phone or e-mail.
The customer first downloads proprietary software from the company’s website. Once a book is created, the customer can view a digital proof to ensure that everything looks okay, click submit, enter in payment information and then wait for his/her book to arrive in the mail. There are numerous service providers that operate this way including Viovio, Photobook Canada and Shutterfly.
Viovio offers a wide range of sizing and binding choices, including hardcover and softcover options that are sure to satisfy users. A truly unique aspect of Viovio’s photo book creation is their partnership with Flickr.com, a popular photo-sharing site, so users can import their photos directly from their Flickr account into a photo book.
Photobook Canada, a Toronto-based service, also offers an array of digitally printed photo books in all sizes, finishes and binding styles. Additionally, they have excellent customer service options including a “Live Support” online help window using MSN Messenger as well as an online Customer Support and Feedback form.
These days, photo books are even making appearances in hit TV drama series! A Shutterfly photo book captured a lead role on an episode of NBC’s ER when Dr. Luca Kovac traveled to Croatia and recorded his journey in the form of an 8”x 8” photo book for his son Joe. When Joe is rushed to the ER, the photo book makes its big appearance.
The third photo book creation option also includes ordering and paying for the product online, but doing so as part of established software, such as iPhoto. This familiarity makes it easier for non-savvy users to add their photos to a database and create a book for their photos all within one window. When the customer has finished importing photos, he/she submits the photo book by clicking an order button and completing the transaction all in the same screen. I find it very interesting that digital photo software, like iPhoto, has actually gone against conventional thought by opening up new markets for printing, versus eradicating ink on paper.
As Manfred Breede points out in his book, The Brave New World of Publishing: The symbiotic relationship between printing and book publishing, “for much the same reasons that the physical book remains a preferred medium, digital photography has not diminished the desire to own and collect hard copies of favourite pictures.” He goes on to explain, “it is thus clear that tapping into the market of converting digital pictures into a variety of value-added products, of which photo books are but one example, has good business potential.”
Behind the Scenes
Digital printing has enabled businesses to manufacture personalized photo books in a way that was never possible with offset. Breede makes clear that “the paradox of digital manufacturing, including digital printing, is that both extreme customization and economies of scale are possible.”
While there can be inherent quality issues with digital printing, including banding issues in gradients and solid images that are prone to cracking when scored, digital printing allows for fantastic personalized potential. Digital printing achieves halftone reproduction that closely matches offset, produces more consistent density than offset and allows for printing on a wide variety of substrates. Although speed still proves to be a problem (a conventional offset press has a page output that is ten times faster than the fastest digital press today) this hasn’t slowed down the photo book market.
To better understand digital printing systems used to produce photo books, I spoke to Kodak’s Krista Fennessy. She explains that users can create photo books through Kodak’s Gallery (www.kodakgallery.com) and order their books in much the same way that they can with other service providers. When Kodak receives an order for a photo book, they consider the location it is shipping to and then give the work to a printer in that area who has a Kodak NexPress. NexPress digital presses all over the country are used to create the photo books, which are then shipped directly to their customers. In a few words, Kodak becomes their customer’s customer. Fennessy explains this as driving print business back to where it belongs, the local printer, and thereby supporting local print shops all across the nation.
The Kodak NexPress S3000 Digital Production Color Press is a 5-colour device that allows for double-sided printing and produces output quality of 600dpi through an electrophotography process. It can handle a range of substrates including uncoated, matte coated, glossy coated, cast coated and textured, wood free, recycled paper as well as a wide selection of standard offset papers. It can also handle labels, paper-backed transparencies, select opaque foils, synthetics and, most importantly for this topic, photo book paper. This technology is also very environmentally-friendly with output that is highly recyclable and de-inkable because of the dry toner technology. Dry toners do not incorporate additional chemicals or petroleum products and have better light-fastness and abrasion resistance than some liquid toners.
Photo Books: A User’s Perspective
I had the opportunity to sit down with an individual who has become very familiar with photo books. Ruth Tupe, a second year student at the School of Graphic Communications Management at Ryerson University, had the opportunity to design and coordinate a commemorative photo book for Ted Rogers in appreciation of his contribution to Ryerson’s Ted Rogers School of Business Management. She collected information and quotations from past and present students as well as photographs of school successes and scholarship winners. The hardcover project looked great, and I am happy to say that Mr. Rogers received this gift before he passed away in early December 2008.
Ruth used Blurb.com (based on the recommendation from a professor) where customers must use a proprietary software called BookSmart. She really liked Blurb’s easy-to-navigate website, but didn’t enjoy having to use their software.
“I am a designer and it was really frustrating having to conform to their layouts. I had to fiddle and adjust to achieve the look I wanted.”
In BookSmart, users must choose from a series of layouts and cannot easily modify them to make them their own.
“I had to move from Photoshop to InDesign and then to BookSmart to achieve the look I wanted. This was very time consuming.”
Ruth admits that this program would probably be sufficient for the everyday user, however designers like herself might find it frustrating. When asked if Blurb should accept PDFs as well as BookSmart files to ease this frustration, she replies, “No. I feel for them. I could see many problems if anyone could submit a PDF.”
Within BookSmart, customers can click to preview their file when they are finished (which acts as the only proof they will see) and then they can click the “Order Book” button to submit their work. However, before a book can be ordered, customers must read a pop-up window that acts as a mini pre-flighting function reminding users to check their spelling, content placement, copyright permission and fonts before submitting. There’s no turning back once you submit the photo book, thus the onus is transferred to the user to ensure their work is correct.
When asked if she would do this again, Ruth replies, “Yes. I have already had friends asking me to create personal albums for them.” Ruth says that if she did it again she would take the time to comparison shop and see what other services are offered. She was pleased with Blurb, however, and experienced very good customer service that answered all of her questions. Ruth also states that the software would be easier to use the second time around. “It all depends on the complexity of the project. The Ryerson School of Business project was fairly complex with lots of images and text, which made it difficult to create with BookSmart. If I was creating a book containing only photos, BookSmart would work well.”
As Apple perfectly describes, “photo books are an amazing way to remember an event and the perfect gift as well.” I believe that photo books are a fantastic way to produce a one-off, high-quality book for a reasonable price. Whether created to commemorate a special event, such as a wedding or one’s travels, or created as a coffee table portfolio book for photographers, there are limitless creative possibilities. In terms of what to look for in a photo book provider, toptenreviews.com suggests that design features and sizing options, product quality, ease of use and help/support are the four main must-haves. I couldn’t agree more. Happy photo-booking!
Many businesses will undoubtedly find these times to be too challenging and, as a result, will either voluntarily decide to wind-up or, alternatively, be forced into liquidation.
In some situations, businesses should have been closed much earlier, since they were run using poor business practices. They were poorly managed and only through some good luck and poor bank lending were they kept in business. In these difficult economic times the common feeling is one of doom and gloom.
Opportunities exist.
Difficult economic times provide the best opportunity to execute good management practices. Take actions that in good times would be seen as being stingy or mean, but in bad times, are seen as being necessary. It is important that managers make the adjustment from a “good times” mindset to a “bad times” mindset as quickly as possible.
Hire employees terminated by large employers.
During periods of recession, unemployment rises. Some firms reduce staff indiscriminately and do not make sound assessments of the staff that they are letting go. The result is that well-qualified individuals become available in the marketplace. In some cases, they have been terminated; in other cases, they have been pushed or forced into early retirement, but they are still quality employees.
How is this an opportunity? The smaller employer is often able to hire employees terminated by a large employer at a discount price. The employee pushed into early retirement will likely have received a “package” and will continue to receive some form of post-retirement income. Such employees do not need as great a salary as they received before in order to maintain their standard of living. They could very well be capable of a decade or more of productive working life.
Other employees who have been terminated are often interested in establishing a career with a smaller employer, particularly if that employer has good business practices. They have had enough with big companies.
Get rid of bad human resources practices.
I wouldn’t suggest that an employer introduce draconian practices just to save a few dollars. Rather, recessionary times give an employer the opportunity to review all expenses relating to employees: benefits, vacations, compensation practices as well as training and development.
Do all employees use all the vacations to which they are entitled? In the past couple of decades, vacation entitlement has risen to the point where many employees can’t or don’t take all their vacations. In some cases, they can’t afford to take them; in other cases, they don’t want them. A reduction of one week of vacation has a cost saving close to 2% of payroll.
Flex time and other similar practices are often being abused. The removal of such benefits will not usually affect your hardest workers. To remove it or tighten up the conditions of such benefits will only improve productivity. Given the critical business times, any employee backlash can be expected to be minimal.
The concept of annual salary increases needs to be challenged. It is possible that some employers have been too generous in the past and thus, costs have gotten out of line. Now is the time to institute some discipline in the company’s compensation program.
One of the biggest errors we find in compensation programs of smaller organizations is the lack of a cap/limit on jobs. This is most likely to happen in those organizations that habitually have annual increases. After a period of time, particularly if positions are filled by long-term employees, employers often pay over the market norm for such positions.
Review sales costs.
Over the years, regardless of the industry, the sales area seems to acquire practices that are costly and have little or no value added. In these difficult times, attention should be paid to the work that is being performed by the sales staff. This review should cover sales territories, salespersons’ number of clients and sales compensation, particularly if the compensation is primarily commission.
Variable compensation was developed to stimulate productivity. However, if the program is too rich, the opposite effect will occur. It is responsible management to note whether the rate of the salesperson’s reward is greater than that which the business receives.
The opportunities that have been set out are by no means all inclusive. Some may apply to one business and not to another. However, “bad times” give management the opportunity to introduce change and get better employee acceptance than at any other time. However, there are some provisos that must be kept in mind:
- Communicate any changes that are going to be made. Communicate does not just mean telling employees that one thing or another is changing. It is vital that a case be made for each change and that management tries to get as much “buy-in” from the employees as possible.
- Don’t introduce changes that negatively affect employees and then do something that employees would perceive as being wasteful or lavish. Change the old maxim to read “do unto yourself what you have just done to your employees.”
The Digital Imaging Association’s annual Christmas lunch featured keynote speaker Jim Hayhurst. Jim is the founder and president of The Right Mountain Inc., a career centre and corporate consulting group that has helped thousands of individuals and hundreds of organizations around the world define and achieve success. The company grew out of Jim’s own personal experiences – his Right Mountain. In 1988, at the age of 47, he became the oldest member of the Canadian Expedition to Mount Everest.
Jim’s story of The Right Mountain emanates from his Everest climb. But, more than an adventure story, The Right Mountain is a graphic illustration of what it means to be successful. Attendees heard about the expedition and the rigors of climbing the world’s highest mountain and were quickly able to understand the dynamics of success that come from teamwork, commitment and self-awareness in a stark new meaning through the face of adversity and even death. The metaphor that is The Right Mountain is a foundation for personal and professional success.
Your Definition of Success
Hayhurst challenged listeners to consider their own individual definition of success as well as the path toward that defined success. Just as you don’t just kinda go to Everest, you also don’t wake up one morning and decide today is the day you become a corporate or a personal success. What you do decide, says Hayhurst, is to gather all the facts – both positive and negative – then make a decision accompanied by a plan.
When deciding to join the expedition, which he did with his son, Jim quickly recognized there were clear parallels between this choice and life – and business-based decisions. Distinct elements of achievement are founded on assembling the following:
- People with technical skills
- People with a real passion for what they will ultimately do
- Team players
These core foundations are applicable on a mountain and applicable in life. Ultimately, they also require a strong commitment. And, says Hayhurst, it is not just an individual commitment. Any major decisions also impact others – family, friends, colleagues.
Preparing to Achieve
Any achievement is also grounded in training. Climbing Everest is an extreme example of the extent of that preparation. The Everest training programs include a core deliverable, but are as distinctive as the individuals who participate in them. And, with training it’s amazing what individuals and collective groups can do.
Another key component is goal setting and levels of acclimatization. The flight to Nepal passes over – or rather beside – Everest. On that flight, Jim was faced with a revelation – The Everest Expedition team was about to climb up to the level they were flying. The stark reality was that the climb was just too overwhelming. The only way to even conceive of making it to the top is to set goals. Not just faster, better, higher, but very specific goals and accompanying singular roles. The resulting productivity, achievement and satisfaction can be amazing. And be sure, says Hayhurst, to assimilate lessons learned along the way. You can learn a lot by looking back. What was in front is now behind you. Assess what you did and how you overcame obstacles. Then decide, collectively, what to do in the present and for the future.
Recognizing individual strengths and assigning tasks appropriately is yet another key element of success. Jim’s life-altering and very startling experience was when his son slipped and landed at the edge of a cliff. This is an extreme example of having one chance to make the right action. His son asked dad to throw him a rope. Jim’s astute awareness that he was not a good rope-thrower caused him to quickly call on someone who was. And, that rationale and responsive decision is what brought his son to safe ground. Is this not a determining and electrifying example of personal and professional decision-making?
The initial goal for anyone who decides to climb Everest – or any other mountain for that matter – is to make it to the top. Jim Hayhurst’s team was no different, at least until they were working toward their mission. As with any path to the top, it is important to continually review long-term objectives and short-term goals. The 1988 expedition team very quickly re-evaluated their definition of Everest success – it became for everyone to come home safely. It was no longer to make it to the top. And, they had the chance to walk the walk. Team members stopped their own climb at various levels. Two of the climbers were within 600 metres of the top. They thought they could get there, but not back. So they stopped. Their success was attainment of the purpose they had committed to – without compromise.
Lessons from Everest on the Real Meaning of Success
Today’s economic climate is a time for reflection. Everest teams manage change on the mountain. They often talk about what has happened, what might happen and how they should reprogram their actions accordingly. It’s all about figuring it out and climbing smarter.
It’s about being on the right mountain at the right time and with the right accumulative objectives. And it’s about figuring out who you are as an individual, your skills and values, and, ultimately, what the right vista is for you.
Jim Hayhurst’s Right Mountain was coined from his experience with someone who was on the wrong mountain. This was a climber who had scaled 4000 metres on other mountains and felt he could achieve 8000 metres on Everest by breaking his efforts into two 4000-metre climbs. But, what he neglected to factor in was that the second 4000 metres was at an altitude with very different oxygen levels than he had ever experienced before – and it killed him. This tragedy, says Hayhurst, delivers a hard-hitting message – figure out who you are and how you do things.
Jim Hayhurst’s story of his very personal and graphic life-enhancing adventure delivered a motivational experience to those who heard it. Are you or your company on the right mountain and do you have the right goals with the right plans to achieve them?
For the past three years, as a senior writer for Graphic Arts Magazine, it has been my great pleasure to meet many of you in the printing and graphic arts industries. I have made wonderful new friends and learned a lot. During that time, I was also able to work closely with you to try to articulate your story in many advertorials, as well as provide you with ongoing news coverage.
Briefly, I started as a writer in the Communications Department of the Toronto Star in the early 1970’s after graduating from the Ryerson School of Journalism. There’s more about my background in this month’s news section.
Throughout my career, I can tell you that, without a doubt, the people in the printing industry are amongst the hardest working I have ever known. I’m hopeful that my strong background in writing, design and marketing will enhance the quality of the magazine to benefit you, our reader.
Today, I fully realize that most of you are expected to be more than just printers – you have to be marketers as well, exist on razor-thin margins and be ideal employees or employers. In short, in our industry today perfection is expected and I hope through reading our magazine you will be able to improve your business, possibly learn a few things and get involved by letting me know what is happening in your company.
I want to know what’s going on in your company, no matter how insignificant you may feel it is. I fully intend to cover more events, large and small, run more photos of what’s happening and give balanced product coverage. You will see more articles to help the smaller and medium-sized printer and provide more scope to the larger industry players to tell their story.
Bottom line:
If I can unearth just one idea or one strategy, or relate one story that helps you improve your business, then I am happy.
I value your feedback, both positive and negative. If you have any ideas, suggestions, comments or issues you would like to discuss, please do not hesitate to contact me at acurcio@graphicartsmag.com
Good luck in what promises to be a very tough and challenging 2009. And do continue to look to Graphic Arts Magazine for answers. We’re here to help you!
Tony Curcio, Editor
acurcio@graphicartsmag.com
Welcome back readers, and a happy new year to you!
As you may have noticed, I’m a bit of a sucker for holidays. The next few weeks are looking exceptionally red in my books. We end January with Chinese New Year — this year being the year of the Ox. Friends excited to celebrate have told me that the Ox stands for stability and dependability, responding to adverse situations with hard work and determination. For our wallets this means saving, not spending. I would say that is probably close in line with what everyone has in mind for the coming year.
Followed by this dependable Ox, we have Valentine’s Day; perhaps, a less predictable beast. I’m a big fan of Valentine’s Day; 90% of my affection being toward cinnamon hearts, of course. I never understood why a candy so tasty only gets to celebrate once a year!
As you enjoy the candy treats and good company, we hope you will also find this issue useful for the start of 2009. John Zarwan begins the issue with “10 tips for surviving a recession.” His insightful and practical tips are bound to get you into the “working ox” mind-frame. My favourite of the 10 is Cash is King — advice that I’ve been given more than once, in a time where financing is hard to come by.
Zarwan’s advice is followed by a look to a further future – the future of our industry in terms of skills training and employment. Marie Eveline, executive director of the Canadian Printing Industries Sector Council, examines the outlook of talent to come. Along with the statistical outlook of our industry, we include some practical places where professionals can go to buff up on skills. A quick review of online, professionally sponsored, and university-based education options are summed up in a chart for you to quickly check out.
Continuing on the theme of schooling, I remind everyone that the annual Graphic Communications Management job fair at Ryerson is fast approaching (March 5, 2009). What better time to hire an intern and infuse your company with energy and new ideas?
Students have an incredible ability to finding “glass half-full opportunities.” This past month, I attended the PAC Envirochic event, hosted by OCAD and the PAC Student Chapter. The event included a panel of speakers from the LCBO, Tetra Pak and CanFirst Innovative Packaging. It highlighted creative innovations for alternative packaging options. It is incredible when we’re able to create products that not only save money, but are earth-friendly – something we begin to think about more and more as we wait for spring.
So, as you prepare your love sonnets and jewelry boxes (she hopes) enjoy the issue and remember to contact Taras for the details of the job fair at tkarpiuk@ryerson.ca.
Natalia Gilewicz
natalia@graphicartsmag.com
A belated happy new year to all our readers!
It’s the start of a new era. The Bush administration is gone and the old order is gone. With a new president in the White House, Obama brings new hope for the world, similar to that of John F. Kennedy in the 1960s. And here in Canada, the government is proposing a $64-billion stimulus package for the country which we hope will keep presses running.
We have been through recessions in the past, but this one feels different – it’s worldwide. The one thing that we all have to do is avoid panic. Set a conservative plan and work your plan until the economy changes again.
The sky is not falling. There is restructuring and shifts occurring – but change is not always bad. Every company I’ve owned has expanded during recessions. It requires staying positive, working harder and not getting caught up in the idle chatter of how bad things are. Working smarter and efficiently is the quickest way out of this recession. There will be great days ahead again. The world has always worked in cycles and this is no different. There isn’t any less money in the world – it’s just temporarily out of circulation.
It all comes down to a decision that you must make that you’re going to survive. Make intelligent choices on sales and marketing and go to work for your customers. For starters, John Zarwan has a great article on page 17 titled “10 tips for surviving a recession in the printing industry.”
In the midst of all the doom and gloom, HP announced that worldwide page count went up 30% in 2008. That’s the news I like to hear. Way to go HP!
I am happy to announce the appointment of Tony Curcio as Editor of Graphic Arts Magazine. Tony is a graduate of Ryerson’s School of Journalism and brings many new ideas and insights.
As always, for 2009, remember to stay positive and focused. This recession will pass and you’ll be stronger and wiser for having survived it.
Joe Mulcahy