Cup-a-Joe

I have recollections of listening to conversations of my father, grandfather, and assorted “uncles,” reminiscing about the good ol’ days.  Well, it seems my siblings (there’s six of us) and I have reached that stage – but in a different forum.

Baby brother Phil (all of 46 years old) started a conversation about the Helms Man the other night.  For those of you who 1.) Didn’t grow up in So Cal, or 2.) Too young to remember (Helms went away in 1969), the Helms man was the guy who delivered bread and assorted pastries to your door.  Yes, to your door!  I’m sure you found similar companies throughout major metropolitan areas across the U.S. prior to major supermarket chains and discount stores changing the landscape.

Phil shared photos he had discovered, and we good natured (No blood, no foul) kidded each other for sibling transgressions as the conversation wrapped around grandparents and other fond memories.  When we couldn’t remember certain specifics, Norm (brother by marriage) and Phil provided background information.  Oh, did I mention that this entire conversation occurred online?  And that all of us are scattered throughout Southern California and Texas?

I’m sure we would have had a lot better time face-to-face.  The power of conversation is the ability to read tone of voice and body language.  This value of communication is too often over looked as we try to find ways to make our lives more “efficient.”  Yet, the power of technology has changed our way of life – for good and bad.  I think for the better.  Although I’m sure the folks who were employed by the Helms Bakery would disagree that change was a good thing.

“The printing industry is feeling the impact of change as much, or perhaps even more, than some other industries.  Our change is being driven by the digitalization of information.  This is not only dramatically changing the way we produce our products, but the demand for them, and in many instances their very form.

Historically successful companies in every industry – and our industry is no exception – are losing their way because they have failed to anticipate he impact of these forces on their business, and therefore have not made timely adjustments.  Even in this harsh environment there are companies which are growing and seized opportunities that others didn’t see. They too, however, are faced with the challenge of maintaining their success.”

Pretty interesting observations aren’t they?  What’s more interesting is when they were written — 1995.  So, when one thinks that things have just recently become topsy-turvy, we have to remember that our industry has been facing change for decades, and here’s the important message.  For us to win in a changing environment, we must think strategically.  And that my friends, was the message in Wallace Stettinius’ book, “Winning in a Changing Environment, Learning to Think Strategically.”  The quotation above is from Wally’s preface written over 16 years ago.

I never got to know Wally that well, but in my observation, he was one of our industry’s true management visionaries.  In the 80’s and 90’s, I was able to attend seminars he presented, and had the opportunity to sit and discuss ideas he presented.  He also published many of those thoughts.  “Running in the Black,” dealt with financial management in our industry.  It’s now out of print, but probably was the best book ever written about that subject for printers.

I’ve been re-reading “Winning” and I feel that it still holds numerous nuggets which apply today.  I know that many in our industry are working to re-shape their companies for the future.  Yet, we can no longer afford to build the bomber as we’re flying it.  There has to be some serious planning before we start making major changes in our business model or rethink the types of capital investments we make. Thus, I strongly recommend that you consider purchasing “Winning.  There are copies available on Amazon.com

An article in this morning’s WSJ lamented the fact that e-book pubs are being priced nearly the same, if not more, than the printed versions.  One of the major reasons is that major publishers have decided to set the pricing levels, which does not allow the retailers to discount.  The end result is creating more profits for the publishers.  Not a bad strategy when new technologies are being introduced, but should create opportunities for new entrants or small niche publishers down the road — and may help the book printers!

I just came back from spending a day in Kansas City, my home away from home the past few years.  The main purpose was to thank Jim Oldebeken for his many years of service to the industry.  Jim started with the Oklahoma PIA in the mid 80’s and went to Kansas City in the early ‘90s.  When PIA Heartland merged with PIA Texas/Oklahoma, Jim was a key part in making the transition work smoothly.  It’s been 10 years since that consolidation, and Jim is transitioning to another association — in another industry.  A small dinner was held at Grand Steet Café near the Plaza and many of Jim’s industry friends reminisced about past events, trips, and the “good ‘ol days.”  Although Jim will be missed, his replacement Loretta Nichols has jumped into the gap and will provide an outstanding resource for the print community in Western Missouri and Kansas.

OK, I’ve gotta talk a little baseball.  Can I say that I hate the Angels?  First, growing up in Southern California, I was a Dodger fan; thus, ensuring that the “other” team didn’t have a place in my baseball world.  The Angels have added to their team one of the best, if not the best, player in the league.  Although I wasn’t bothered by the Rangers losing C.J. (can’t win in the clutch) Wilson, he’s a good enough hurler to really make the Angels a better team.  Yuck.

Don’t think that there’s long term play for our industry?  Why is it that we’re seeing some serious players making acquisitions?  They see value.  One of the most recent was the Ginny’s/TouchPoint acquisition and we understand that a Fort Worth firm has been acquired.  And there’s more to come as the industry continues the inevitable consolidation and reshaping.

The industry is losing another long-time Association leader.  Jim Tepper, PINE (PIA’s New England affiliate) has announced his retirement after 35 years with the Association.  He will be replaced by former PINE board member, Tad Parker.  Jim has been a very good friend and mentor to me over the years, and I’ll miss our regular conversations – but the transition doesn’t occur until spring of next year.  I don’t think Jim’s going to disappear, and that’s good for the New England industry.  Tad is going to have his hands full as he transitions from the world of print to the Association world, but he’s going to do just fine!

Marketing is changing and it’s affecting our industry.  One of the 2012 goals for PIA MidAmerica is to add a marketing specialist to the staff.  The person’s role will be to help the membership better understand the media integration and more effectively sell the value of being a print provider. More to come!

It’s that time of the year and wishing everyone a very Merry Christmas, Happy New Year, Happy Hanukkah, and a great holiday season!  Feliz Navidad.

I’m somewhat surprised in regards to the reaction of the Penn State students in the firing of legendary football coach Joe Paterno yesterday.  I don’t remember that kind of reaction when Dave Bliss got fired from Baylor.  And I wonder what would happen if Republican candidate Herman Cain threw in the towel over the alleged sexual harassment charges.  Could you see middle-aged Republicans harkening back to their “freak” days and burning flags and occupying college president’s offices?  Nah, it ain’t going to happen.  So why the reaction for Jo Pa?

I could delve into the myopic fascination we have for cultural heroes, but I don’t think that’s the path I’m going to take. What really fascinates me is the blind eye people take towards individuals who “perform.”  How many times have we (and “we” are all guilty) ignored behavior from an individual which was not appropriate? It could have been a plant supervisor verbally abusing an employee.  A sales rep who padded expense reports or was willing to “take care” of his/her customer regardless of the appropriateness of the request.  And I don’t even want to delve into the area of physical/sexual abuse of children and women — and how we decide to look the other way because the abuser may be someone “important.”  Which gets us back to JoPa.

If in fact everything we’ve heard about the assistant coach and the graduate student’s reporting to Paterno is true, what would have you done?  Would you have ignored the situation because you “needed” that person?  Would you have reprimanded the individual?  Would you have thrown a “friend” under the bus? Would you have reported it to the police?

At what point in time do we begin to realize that our community/work environment is best served when we are in harmony, and achieving the desired result at any cost also costs us our humanity.  It’s not an easy path, and it may be one that Joe Paterno decided not to take – and he will now lose the recognition that he spent 60 years building.

I’m in one of my favorite places for writing – seat 20A.  I’m headed to Kansas City on a typical fall day.  Or is it?

In Texas the talk is not about football, it’s about the Texas Rangers and the team just being one win away from their first-ever world championship.  While in Missouri the talk is split between Mizzou leaving the Big 12 and headed to the SEC and will the Birds from St. Louis be able to mount a come back.  Everything should be clear by the end of the week.

In Fort Worth rumors abound about one of the area’s iconic printing companies.  A recent Fort Worth Star Telegram article put Branch-Smith in foreclosure.  Yet, in a conversation I had with management, we shouldn’t be so quick to close the door.  The article was a bit premature and there seems to be some deals going on which will provide new life for the company and its employees.

Early this year the Post Office announced a trial program in Austin to help promote direct mail.  It drew a few raised eyebrows including yours truly.  I attempted to get the attention of the USPS as well as our national leadership in how this program could backfire and be detrimental to the industry as a whole.  Regardless (no surprise), the program rolled out and was titled Direct Mail Hub, and now that it is beginning to affect more firms has drawn commentary from PIA’s Mike Makin and others.

Kudos to KBA North America, headquartered in North Texas as they recently were recognized by the Patent Board’s Patent Scorecard for manufacturers of heavy industrial equipment in 2011. The Patent Board’s Patent Scorecard is based on the scale, quality, impact, and nearness to core science of a company’s patent-based intellectual property.

Henry Wurst in Kansas City has announced they are closing their North Carolina facility.  It’s another sign of the times and not an easy decision based on a conversation I had with HWI’s president Mark Hanf.  Yet, with much of the Carolina facility’s work re-locating to the company’s two other plants, the company has balanced their capabilities with the market.

Speaking of the turmoil in the web industry, Quad is closing their Stillwater, Oklahoma plant.  The plant, which was a former Quebecor World operation employed over 200 folks, and will have a sizable impact on that community.

PIA MidAmerica is not immune to changes.  Long-time and familiar industry face Jim Oldebeken is leaving our family to pursue another path.  Jim was willing to play a different role with our Association over the past 10 years, but realized his talents were not being utilized.  With our need to re-balance budgets (a continual process over the past 6 years), the time was right for all of us.  Jim is now working with another association in Kansas City  – in the biomedical field and with plenty of upside for his career.  His replacement will be a familiar face in Kansas City — Loretta Nichols. She started her new career this past week and with her long-time industry experience and entrepreneurial nature should do an outstanding job for the industry.  Best wishes to the Big Guy – but I expect we’ll be seeing him around every once and a while.

OK, no comments about business today.  It’s the World Series, and although I admit to being a Texas Rangers fan, we’ve just seen four fantastic games.  And it’s now a series which will be the best of three.

Any good baseball fan has to have been ecstatic over the past week.  The first two games are one-run affairs with great defense, solid pitching and timely hitting.  It doesn’t get better than that.  Then came the fireworks of Saturday’s game.  Over 20 runs scored and probably one of the best players to ever play the game lights up the scoreboard with three home runs.  That’s only been done twice — by a guy named Ruth and another with the title of “Mr. October.”

With the series on the line for game 5, baby-faced Derrick Holland goes out and shuts down the “Birds” bats with a masterful mix of nasty breaking stuff and heat.  Yes, he had not performed to expectations during the playoffs — but remember this is a kid who threw four complete shutouts during the year.  What a game!

Now comes game six with Chris Carpenter who is admittedly one of the best pitchers in the game against C.J. Wilson who has been “challenged” during the playoffs.  I’m hoping for a great game tonight — let’s hope we get one.  And it wouldn’t hurt if Texas won it!

The past week has been chock full of Steve Jobs stories and adulations.  All well deserved, but when you really look at his life – and his impact on our industry – you realize that one or two small mis-steps, and you have another Wang Computer.

As I look at Jobs and many of the successful folks in our industry, it’s about vision.  It’s about being at the right place, right time – and knowing that there’s an opportunity.  Too often our heads are buried in the minutiae of life and running our businesses.  The end result is we miss the opportunities to excel.  In my mind, the real core of Steve Jobs, which made him a winner, was his vision. He was able to see things no one else saw, and when the opportunity was there, he was able to take advantage of it.  Plus, he was a bit of a hippie/anti-establishment type growing up.  He didn’t let the world constrain him.

With all the “bad” news we deal with every day, do we find ourselves looking at the stable full of horse****t, or are we looking for the pony?  It’s time to saddle up!

Now that we’ve gotten past the breast beating and whining about the debt ceiling, the real work begins on how this country is going to create the appropriate fiscal balances to help us in the long term.  And it’s not going to be easy.

If you think we’re going to do it without raising income/changing taxes, you are sadly mistaken.  If you think we will do it without touching social security or medicare, you are also mistaken.  The necessary changes are going to be ugly, painful AND necessary.

Alan Simpson, who is a former Senator from Wyoming and was the co-chair of President Obama’s federal debt commission is known for his frank speaking.  ”Alan K. Simpson seems to be missing that little voice that stops most people from saying everything they think. That means he’s forever making his friends as angry with him as his enemies,” stated the author of a article I want to share.

Simpson tells it like it is and gives us insights on why getting our country’s fiscal house in order will be extremely difficult unless everyone in this country will have to “give” a little.  Enjoy!

Did you miss getting a chance to hear Dr. Joe Webb last week in Kansas City or Dallas/Fort Worth?  It was an extremely informative meeting with over 80 attending in total at both locations, and to quote Dr. Joe, “Many folks say I’m much more depressing in person than online.”  That’s the knock on “Dr. Doom” as he is known by many — but Webb’s prognostications have been on target when it comes to the general commercial printing industry.

Joe’s key message at these meetings was there is no more “business as usual.”  We live in an industry which is changing – but in a very different way than in the past. From the days of letterpress up to about the year 2000, the changes were fast and furious (hot metal to cold type to desktop; letterpress to offset litho to digital) – but they were internal changes.  As an industry, we were changing the process used to produce print. With the advent of the Internet and the rapid expansion of advertising/marketing channels, our industry has been affected by outside sources — and will continue to be so challenged over the next 20 years.  The result will be that our industry will share a much smaller slice of the advertising pie.

The analogy Dr. Joe used was a pizza which was sliced in half – that was the old model.  Advertisers would either use “media” (radio/tv) or print to distribute their message prior to 2000.  The new model looks like a “Twister” board with probably 30 different choices an advertiser could make, e.g. Broadcast TV, cable TV, internet TV, social media, direct mail, print, radio, viral marketing, etc., etc.  Yet, advertising budgets have not grown, and advertising/marketing decision makers will make decisions which mean less of a slice for print.

But all is not lost per Joe – and that’s why his book (the premise of the presentation) is titled “Disrupting the Future.” He shares ideas of how companies in our industry must find ways to not do business as usual in order to “disrupt” the future realities.

Although the presentation was sobering – the message was clear.  Change the way we think about ourselves – think as entrepreneurs and find ways to help our customers achieve their end goals – regardless of how their message will be delivered.  Per Webb, our industry is uniquely positioned and skilled to be a key player in this new world of media.

This past March Motheral Printing hosted an Association breakfast meeting on the generation “gap.” It was one of the best programs I’ve seen on this topic – and I’ve been to a few.

It was led by David Danforth with Eastfield Community College and Dr. Rick Lumadue with Texas A&M – Commerce.  These college professors, who are both Gen X-ers (born between 1964 and 1980), were very entertaining and candid with their observations.  These were not guys who are consultants or doctorial candidates writing research papers.  Every day they are seeing the new generation (Millennials) in the classroom, and they are also interfacing with the Boomers (administrators).

The key to this program was the observation that the upcoming Millennials (born between 1980 and 2000) are motivated very differently than the Boomers or Gen X-ers.  They communicate differently—via blogs IMs and text messaging rather than phone or face-to-face preferred by the older generation, who are frequently their supervisors.  They are heavily influenced by their parents and peers and are very team oriented.  Where Gen X-ers were highly independent and self-motivated, the Millennials need structure and very focused leadership. Millennials are multi-taskers and are not use to having lines of authority – they ask “why.”

Given that our industry’s workforce composition is beginning to change, managers and supervisors need to understand the dynamics of the groups they manage and how their own biases can affect their leadership. The more we can learn about ourselves and our workforce, the better leaders we become.  If you would like a copy of the PowerPoint presentation used by Danforth and Lumadue, please contact me.