! 1 Training program for publishers from the Arab world Strategic Planning in Publishing Cairo, July 12 th, 2008.

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Training program for publishers from the Arab worldStrategic Planning in Publishing

Cairo, July 12th, 2008

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The German Book market is the third largest in the world

9.3 Billion Euro turnover from retail prices per year 9.3 Billion Euro turnover from retail prices per year

900,0000 titles available900,0000 titles available

80,000 new titles per year80,000 new titles per year

4,700 booksellers4,700 booksellers

1.800 publishers1.800 publishers

Source: German Börsenverein statistics 2004

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Key aspects of the German market for publishingNumber of customers

The book trade continues to be the most important channel for books in Germany. Sales at retail price totalling 5.1 billion € have a share of 55.8% of the total book sales. Direct sales to end customers follow at 17.7% (1.6 billion €)

Mail order companies achieve 0.9 billion € (9.9%), department stores 4.4 % (0,4 billion EUR) and clubs 3.3% (0,3 billion.€). Other point of sales (e.g. gas stations, drug stores, toy shops etc.) gain 9.0 % (0,81 billion €).

Most of total book sales were done by members of the Börsenverein (the dominant association of the industry) with appr. 6.400 members. The membership consists of 1800 publishers and 4700 booksellers.

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Key aspects of the German market for publishingFixed price agreement, wholesalers, logistics

Germany and Austria have a fixed price agreement: The publisher decidesupon the retail price of the book and all retailers have to charge the same price to the customer. The reason for this fixed price agreement is to

1. enable publishers to realize a wide variety of cultural and political aspects and

2. protect smaller booksellers from competition.

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Key aspects of the German market for publishingFixed price agreement, wholesalers, logistics

Wholesalers keep a huge number of titles in their warehouses and fleets of cars to ensure overnight dispatch of orders in almost 100% of the cases. In addition the bookseller may order books from publishers themselves and will be served with one individual shipment. Wholesalers get higher discounts from the publishers and will of course grant only smaller discounts to the booksellers.

Only very few publishers have their own logistics department. Specialised companies offer a full service. As the market is mature and highly competitive the synergy effects especially in IT systems and logistics are the more economical solution.

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Key aspects of the German market for publishingNumer of customers

Germanyappr. 7200 bookselling

outlets 4700 organized

booksellers

Austriaappr. 1000 booksellers

Switzerland appr. 240

BooksellersGerman speaking

Northern Italy appr. 20

Booksellers

Luxembourgappr. 24

Booksellers

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But:No matter how special the market looks, the fundamentals of strategic planning are applied the same way all over the world, and not only in publishing.

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The day today

1. Strategic Planning – overview

2. Vision /Mission

3. Company Values / Company Goals

4. SWOT Analysis

5. Environmental Analysis

6. Market Analysis

7. Customer Target Groups

8. Competitor Analysis

9. Potential Analysis

10.Action Plans

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Situation of the book market in the segment of non-trade publishing

More competition by national and international – mostly well capitalized companies.

Further development of distribution channels and technologies

National consolidation forced by the national economic situation.

Ensuring the financing of publishers becomes more and more difficult.

The national market has already undergone and will continue to undergo drastic changes in the coming years::

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Requirements

Ensuring the content quality and thereby reaching or keeping the market leadership in subsegments or topics (reach the „must-have-status“)

Also connected to possibly necessary and consequent reassessment of the portfolio.

Enhance existing technologies to create new distribution channels in order to provide contents in a timely and up to date manner (e.g. online)

Improve equity base to become more independent of outside financing. Source: KPMG corporate finance

In order to be ready for the challenges, publishers must adapt to the new situation. KPMG sees especially the following items as critical:

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Which products (areas) are doing well, which ones aren‘t? Why?

How well do I reach my customers with my product/my program?

How important is a certain area for my total list? How costly and time consuming is this area? Am I market leader? Where? With what? Do I have a supporting program (e.g. journals)? What do I need to do to become market leader in a certain

area? What would happen, if I stopped publishing in a certain

area? Revenue? Profitability? Image? How does a certain area fit together with my whole

strategy?

Typical Questions for a planning process

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Strategic Planning

Strategic planning/management is defined as The process whereby managers establish an organisation‘s

long term direction The process whereby specific objectives are set Developing strategies to achieve these objects

The aims of strategic planning/management are To help the organisation to achieve a competitive advantage The special edge that permits an organisation to manage

environmental influences better than ist competitors do To ensure long term success for the organisation

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Strategic Planning

Your business strategy Defines your position in the market place Distinguishes you from your competition Determines your market identity Reflects the core values of your business Drives what actions you must take to maintain and support

your competitive advantage.

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Benefits of Strategic Planning

Clearly defines the purpose of the organization and to establishes realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation.

Communicates those goals and objectives to the organization’s constituents.

Develops a sense of ownership of the plan. Ensures the most effective use is made of the organization’s

resources by focusing the resources on the key priorities. Provides a base from which progress can be measured and

establishes a mechanism for informed change when needed. Bringing together of everyone’s best and most reasoned efforts

have important value in building a consensus about where an organization is going.

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Provides clearer focus of organization, producing more efficiency and effectiveness

Bridges staff and board of directors Builds strong teams in the board and the staff Produces great satisfaction among planners around a common

vision Increases productivity from increased efficiency and

effectiveness Solves major problems

Benefits of Strategic Planning

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Vision

Mission

Company Goals

Develop Strategy

Company Values

Action Plans to implement strategy

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Strategic Planning

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The Vision

"Every organization has a destiny: a deep purpose that expresses the organization's reason for existence. Visions exist on different levels of the organization's identity. Every telephone organization, for example, is tied to the original vision of Graham Bell - to provide a tool for universal communication. Many members of the organization have a collective sense of its underlying purpose - but in day-to-day operations those visions are often obscured. To become more aware of an organization's vision, one must ask the members and learn to listen for their answers.

People sometimes say that it is pointless to develop a sense of purpose for a company. There already is a purpose: "To maximize return on investment to shareholders." Obviously, making money is important. But to confuse the essential requirement for advancing in the game with the deeper rationale, is a profound confusion. Focusing on the purpose of making money at the expense of other purposes, will naturally distract an organization's competitive advantage."(P. Senge)

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The Vision

A vision is an over-riding idea of what the organization should be. It often it reflects the dream of the founder or leader. Your company's vision could be, for example, to be "the largest producer of management literature in the US", "the maker of the finest chocolate candies in London", or "the management consultant of choice for non-profit organizations in Germany." A vision must be sufficiently clear and concise that everyone in the organization understands it and can buy into it with passion.

A Vision should be presented as a picture of the business in three or more years time in terms of its likely physical appearance, size, activities etc. Answer the question: "if someone from Mars visited the business, what would they see (or sense)?" Consider its future products, markets, customers, processes, location, staffing etc.

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The Vision

The Vision describes a future identity and the Mission describes why it will be achieved.

A vision contains the following elements– capitalizes on core competencies– it is inspiring– it is clear and unambiguous – paints a vivid picture– describes a bright future (futurecasting) – is easy to remember– formulates realistic and achievable aspirations– is aligned with organizational values and culture– it is short

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Examples for a Vision

Bill Gates:There will be a personal computer on every desk running Microsoft software.

McGraw Hill:Our mission is to provide essential information and insight that help individuals, markets and societies perform to their potential.

Pfizer:We will become the world's most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live.

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Examples for a Vision

I will come to America, which is the country for me. Once there, I will become the greatest bodybuilder in history.......... I will go into movies as an actor, producer and eventually director. By the time I am 30 I will have starred in first movie and I will be a millionaire...... I will collect houses, art and automobiles. I will marry a glamorous and intelligent wife. By 32, I will have been invited to the White House. Attributed to Arnold Schwarzenegger who was elected Governor of the State of California in 2003.

You can find more examples in: http://manonamission.blogspot.com

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The Mission Statement

The nature of a business is often expressed in terms of its Mission which indicates the purposes of the business, for example, "to design, develop, manufacture and market specific product lines for sale on the basis of certain features to meet the identified needs of specified customer groups via certain distribution channels in particular geographic areas".

A statement along these lines indicates what the business is about and is infinitely clearer than saying, for instance, "we're in books" or worse still, "we are in business to make money" (assuming that the business is not a mint !). Also, some people confuse mission statements with value statements - the former should be very hard-nosed while the latter can deal with 'softer' issues surrounding the business.

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What your business is/does Primary products/services Key processes & technologies Main customer groups Primary markets/segments Principal channels/outletsReason for existenceCompetitive advantages Unique/distinctive featuresImportant philosophical/social issuesImage, quality, style, standards

Stakeholder concerns

The Mission Statement

Your Mission Statements should contain the following elements:

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Examples for a Mission Statement

Pearson: We lead our markets in quality, innovation and in profitability, and bring together some of the most valuable brands in publishing. From our roots as the world's largest book publisher, we've grown to provide a range of related services: testing and learning software for students of all ages; data for financial institutions; public information systems for government departments. With more than 29,000 employees based in 60 countries, we are a family of businesses that draws on common assets, processes and shares a common purpose: to help our customers live and learn.

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Mc Graw Hill: We are dedicated to creating a workplace that respects and values people from diverse backgrounds and enables all employees to do their best work. It is an inclusive environment where the unique combination of talents, experiences, and perspectives of each employee makes our business success possible. Respecting the individual means ensuring that the workplace is free of discrimination and harassment. Our commitment to equal employment and diversity is a global one as we serve customers and employ people around the world. We see it as a business imperative that is essential to thriving in a competitive global marketplace.

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Manpower: To be the best worldwide provider of higher-value staffing services and the center for quality employment opportunities.

MacDonalds:To offer the fast food customer (=key market) food prepared in the same high-quality manner word-wide, tasty and reasonably priced (= contribution), delivered in a consistent, low key décor and family friendly atmosphere (=distinction).

You can find many more examples in http://www.missionstatements.com/company_mission_statements.html


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Excercise

Divide up into groups of 4 and select one of your publishers as an example. Develop a vision and a mission for this publisher. Document it on the flipchart.

Design one of your group to present the result.

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Strategic Planning

Vision

Mission

Company Goals

Develop Strategy

Company Values


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Value Statements

Value statements list the overall priorities in how the organization will operate. Some people focus the values statement on moral values. Moral values are values that suggest overall priorities in how people ought to act in the world, for example, integrity, honesty, respect, etc.

These values govern the operation of the business and its conduct or relationship with society at large, customers, suppliers, employees, local community and other stakeholders.

• Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that everyone understands and can contribute. Once defined, values impact every aspect of your organization. You must support and nurture this impact or identifying values will have been a wasted exercise. People will feel fooled and misled unless they see the impact of the exercise within your organization.

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Establish four to six core values from which the organization would like to operate. Consider values of customers, shareholders, employees and the community.

Value Statements

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If you want the values to have an impact, the following must occur; People demonstrate and model their values in action in their

personal work behaviors, decision making, contribution, and interpersonal interaction.

Organizational values help each person establish priorities in their daily work life.

Values guide every decision that is made once the organization has cooperatively created the values and the value statements.

Rewards and recognition within the organization are structured to recognize those people whose work embodies the values the organization embraced.

Organizational goals are grounded in the identified values. Adoption of the values and the behaviors that result is recognized in regular performance feedback.

Value Statements

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People hire and promote individuals whose outlook and actions are congruent with the values.

Only the active participation of all members of the organization will ensure a truly organization-wide, value-based, shared culture.

Value Statements

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Examples for values: ambition, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistence, optimism, dependability, flexibility.

Value Statements

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Example for Value Statements

Johnson & Johnson Value Statement• We believe our first responsibility is to the doctors, nurses, and

patients, to mothers and all others who use our products and services. In meeting their needs, everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. our suppliers and distributors must have an opportunity to make a fair profit.

• We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their Jobs.

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• Compensation must be fair and adequate, and working conditions clear, orderly and safe. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.

• We are responsible to the communities in which we live and work, and to the world community as well. We must be good citizens--support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environmental and natural resources.

Example for Value Statements

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The Goals

• It is important to explicitly state the business's Objectives / Goals in terms of the results it needs/wants to achieve in the medium/long term.

• Aside from presumably indicating a necessity to achieve regular profits (expressed as return on shareholders' funds), objectives should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business.

• These objectives could cover growth, profitability, technology, offerings and markets.

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Strategic Planning

Vision

Mission

Company Goals

Develop Strategy

Company Values


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The Strategies

• The Strategies are the rules and guidelines by which the mission, objectives etc. may be achieved. They can cover the business as a whole including such matters as diversification, organic growth, or acquisition plans, or they can relate to primary matters in key functional areas, for example: – The company's internal cash flow will fund all future growth. – New products will progressively replace existing ones over

the next 3 years. – All production work will be outsourced to improve the

profitability. • Use SWOTs to help identify possible strategies by building on

strengths, resolving weaknesses, exploiting opportunities and avoiding threats.

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SWOT - Analysis

Strengths Opportunities

ThreatsWeaknesses

Internal External

+

-

Resources:- HR- Finance- Products, Processes - Knowledge

- Customers- Competitors- Suppliers

- Political Situation- Economic Situation- Social Developments- Technological Challenges

Processes- Service- Communication- Work Flow- Production

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The Strategies

Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis.

SWOT analysis should distinguish between where your organization is today, and where it could be in the future.

SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e.

better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity

and over analysis SWOT is subjective.

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The Analysis Process

Organisation Competitors Customers Environment

Analysis of Potential

Competitor Analysis

Market Analysis

Environ-mental Analysis

Strenghts / Weaknesses S + W Opportunities / Threats O + T

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Environmental Analysis

-

Is legislation expected which will change the rules?

What happens in the world into which we publish?

What are the coming trends?

What will happen in our economy?

How will the buying power of our customers change?

How will the age-structure of the population affect us?

How do technological developments affect us?

P.E.S.T

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-

Political Analysis

Political Stability

Intellectual Property Protection

Anti-trust laws

Taxation

Example

Merger of big publishers not possible

Europe: new law of Basel II makes financing difficult

Founding a new publishing arm in India: Copyright?

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-

Economic Analysis

Economic growth rate

Discretionary income

Unemployment rate

Interest rate

Skill level of work force

Example

High unemployment no money left to buy books

Economic growth rate low companies cut money for book/magazine purchases

Number of apprenticeships going down market difficult for educational market

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-

Social Analysis

Demographics

Class structure

Education

Culture (e.g. gender)

Attitudes (health, environment, work-life balance)

Trends

Leisure

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-

Examples for Egypt:

One-third of the population is under 15 and the average family size is falling from 4.65 people ten years ago to 4.18 in 2006

Median age: 24 years

Illiteracy: Percentage of illiterate Egyptians fell to 29 percent from 39 percent over the past decade (women 41%, men 17%) .

58% of Egyptians live in rural areas

Population growth is 22% in rural and urban areas

Internet users: 6 million

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Environmental Analyis

-

Examples for Germany:

Population: 20% 65+, 14% 15 and under, 66% 15-64

Population growth: 0

Median age: 43 years

Education: lack of educated workforce in technical (engineers, IT) and natural science branches.

Trends: more time for myself, work-life-balance, retro- romanticism, wellness and nature, supernaturalism, longing for sense, value of family, value of friends)

Internet users: 38.6 million (2006)

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Environmental Analyis

-

Technological Analysis

Recent technological developments

Technological impact on offering your product

Impact of technology on cost structure

Impact on value chain structure

Example

Content on internet develop media neutral data

Content management system

Internet Presence

Content to market time

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Excercise

Divide up into groups of 4 and select one of your publishers as an example. For each area of P.E.S.T. define 3 decisive elements which will have an effect on the publisher’s future.

Document it on the flipchart.


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Competitor Analysis

Market Analysis



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Market Analysis

-

Who are your customers?

Which market are you in (market, segment)?

What is the market size?

Who are your competitors?

How big is your market share?

What is the market growth rate?

Where is your position in the market?

How do you get your products to your customers?

Who are your suppliers and what is your strategy regarding them?

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The circle of markets (Ruf)

Professional Interest

Special Interest

Education Trade publishing

personal

professional

general knowledge

Special knowledge

„find out/benefit“ „Experience“

„learn“ „amaze“

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Professional market: professional interest

I want to work successfully and want to benefit for my job.

I want something very special and need practical support for my special interest.

development participate

personalprofessional

general

special

assertion acknowledgement

I want to learn easily and advance quickly.

I want to be part of the group: understand and be understood.

Educational market:Interest in training

Trade market: general interest

Special market: special interest

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Which customer groups are there? Interest groups: special interest, education, entertainment,

general interest Educational groups: students, apprentices, teachers, students,

professionals Functional groups: people starting their job, employee,

department heads, self-employed

How can customer target groups be defined? Socio-demographic: male/female, age, number of children,

urban/rural Socio-economic: income, budget Psycho-demographic: values, worlds of life, „Milieu“ Purchasing behavior: loyal to brands, buys a lot, buys little, buys

on impulse

Customer Target Groups - general

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Which customer groups do you target?

1. Institutional Target groups Which institution groups (companies, associations) are most

important for you (regarding market share and revenue)? Which subgroups are there in your target group (Lawyers in the

public service in the area of construction)? How big are these groups (number of employees)? Who uses the produsts within this target group? Which function/position do the users have? Who decides about the purchase of the product? Which budgets are available for the purchase?

Customer Target Groups - detail

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Which customer groups do you target? 2. End consumer target groups

Which customer groups are most important for you (regarding market share and revenue)?

Which subgroups are there in the target group (startups in the service industry – software consultant)

Age of this customer group? What is the gender breakdown within this customer group? Where does this group live (rural/urban) What education level does this group have? Which values does this group share? How high is the income of this group? Who uses the products (e.g. the husband)? Who do you need to target with your marketing (e.g. the wife as

she makes the decision about the purchase)


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Which customer groups do you target? 2 A. Which wishes and needs do these customer groups have?

Which customer groups are most important for you (regarding market share and revenue)?

Which basic wishes do they have (benefit, experience, learn, amaze)?

Which wishes do they have as „users“ (inform themselves, improve quality of life, acquire knowledge for their job, sell)

Which basic attitude is characteristic for them (towards their job, towards their technology)


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Which customer groups do you target? 2 B. Which attitudes do these customer groups have?

Which attitudes do they have in their job (work with assistants, affinity to computers, little time, lot of travel)?

Which hobbies do they have? How do they organize their free time /leisure? Where do they meet? Where do they shop (catalogue, book shops, internet,

spontaneously)? Which subject preferences do they have? Which media preferences do they have (book, journal, CD-ROM,

download)?


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Intensive book buyers in Germany (10+ books per year)

64% female

30-59 years

70% higher education

48% employees and civil servants

Household net income >2.000 €

53% in 2-head-families

43% in cities >500.000

15% of the population

Customer Target Groups

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Occasional book buyers in Germany (3-9 books per year)

58% female

30-59 years

36% higher education

35% lower education

28% skilled worker, 45% employees

Household net income >1.250 €

38% in 2-head-families

38% in cities >500.000

35% of the population


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Get to know your customer:

Go where your customer goes

Join his clubs

Talk to him

Get information from him

Be part of your target group

And make your customer become alive!


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And make your customers become alive!


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Understand how they live!


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Excercise

Divide up into 2 groups

Group 1: define the your customer target group for a publisher of cookbooks

Group 2: define the customer target group for a publisher of management literature

Please take 30 minutes for this exercise. The result should be a figure of flesh and blood – like Anna Jones, lives in Cairo, works as …., has 3 children etc…..

Document it on the flipchart. Be creative, use drawings.


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Potential of market = 240 Mio.

Market volume book = 16,8 Mio.

Market share my publisher = 1,6 Mio = 9%

Do you know your market share?

Market analysis

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How attractive is the market?

Market analysis

How big is the market?

What is the growth rate?

How profitable is the market?

Pricing trends?

Competitive rivalry?

Entry barriers?

Opportunity to differentiate products and services?

Segmentation?

Distribution structure?

Technology development?

Question: On a scale of 1-3 how attractive is your market segment?

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And where are you in this market?

Market analysis

How strong is your brand?

What is your market share?

How loyal are your customers?

How high is your distribution strength?

How high is the quality of your product?

How high is your competence in this area?

How would you value your management strength?

Question: On a scale of 1-3 how strong are you in this market?

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Market analysis – McKinsey matrix

Market Attractivity

0

3

2

1

3210

Market Position / Strengh

40%

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Market analysis

Market Attractivity

o

3

2

1

3210


Invest and grow

Skim and desinvest

Act selectively

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Market-penetration

Occupying the market

Expulsion / attack(Marketing, pricing)

1:1

Market Development / Enlargement

New markets

New customers

1:5

Product Development

Innovation

Product-Differentiation

Me-too-Products

Exotic products

1:2

Diversification

Products + markets simultaneously

Vertical diversification

horizontal diversification

lateral diversification

1:20

existing

exis

ting

new

new

Pro

du

cts

Markets

Program strategy – Ansoff Matrix

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Excercise

What are the major educational publishers in Egypt? How would you rate the attractiveness of the educational

publishing market? What is the market share of the 3 major players in the market

and where would you situate them on the chart? Let us develop this together on the board.

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Competitor Analysis

Market Analysis



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What do you know about your competitors?

Competitor Analysis

Who are our competitors?

What is the profile of our competitors?- How many titles per year?- Average price?- Average page count?- List width? How many subjects covered?- Program depth? - Personnel equipment?- Capitalization?- Author pool, author loyalty?

What are the objectives of our competitors?

What strategies are your competitors pursuing and how successful are these strategies?

How are your competitors likely to respond to any changes to the way you do business?

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List (Program) width and depth

Competitor Analysis

Cardiology Urology Nursing Management of doctor’s practice

Student Book

Teachers Book

Compendium

First aid book

Atlas

Encyclopedia

Online Portal

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Excercise

How do you find out information about other publishers?

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weighting us A B

% points % points % points %Cover material 10 1 0.1 6 0.6 10 1

Cover design (target group?) 50 10 5 5 2.5 10 5

Text on back of book 10 4 0.4 3 0.3 10 1Title 20 10 2 10 2 10 2Subtitle 10 5 0.5 10 1 10 1Binding 0 0 0 0 0 0 0Page count 0 0 0 0 0 0 0Paper 0 0 0 0 0 0 0Layout 0 0 0 0 0 0 0Font 0 0 0 0 0 0 0Total 100 30 8 34 6.4 50 10

Competitor Analysis

In depth analysis of your competitors – also see your handout

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Competitor Analysis

Another way of graphically showing the competitor analysis:

Potential Evaluation7 6 5 4 3bad

2 1 0 1 2medium

3 4 5 6 7good

Market share

Strategy

Financial Situation

Production

Creativity

your publisher, competitor

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Competitor Analysis

Market Analysis



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What are your own strenghts?

Potential Analysis

People (Human Resources): People and skills, staff development

Processes (Such as production, editing, controlling): Financial resources, Management/ leadership, Communication

Products: Sales, Products, Markets, Intellectual Property

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What are your own strenghts?

Potential Analysis

What do we do well?

Is there anything you do better than most/anyone else?

What went well?

What gave us energy?

What makes us proud?

But also:

What is our internal situation at the moment?

How do our products do?

Sometimes this is the best way to start an analysis

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Core competence of a publisher

Author-Management Selection competence Qualification of content Data becomes information, benefit, emotions Competence for traget groups Competence for publishing processes Competence for topics Competence for marketing of (print) products Ownership of Rights

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Potential Analysis

Mar

ket A

ttrac

tivity


?

Question Marks Stars

Poor Dogs Cash Cows

Where are your own products?

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Strategic Planning

Vision

Mission

Company Goals

Develop Strategy

Company Values


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Perspectives

Formulate your action plans regarding the 4 essential indicators

Learning and growth Indicators

Internal Business Processes Indicators

Financial Indicators

Customer Indicators

Attracting and retaining top employees…

…enables execution of best practices…

…which íncreases customer satisfaction…

…resulting in financial success.

Vision

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Objectives Measure Target Initiative

Make editors more competent

Improve knowledge on negotiation skills

Get total advances paid on 50 contracts between January and December from 12.000 EUR average down to 10.000 EUR average.

Organize trainer and training for negotiation and make all editors participate

Internal Business Processes Perspective

Action Plans

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Make planning more reliable

Minimize deviance of pre- and postcalculation

Not more than 10% deviation in all produced products in 2008

• Get calculation approved by Financial Department

• Get calculation signed off by Editorial Manager

• Train Editors and Producers in using calculation

Internal Business Processes Perspective

Action Plans

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Improve our cook book sales

Get to know more about our prototype customer

Create a customer profile with information from 50 of our readers with information as defined in Target group list until June.

• Define 50 customers

• Create project group with editor A and B and Sales Manager C

• Create profile

Improve Customer Intimacy

Direct meetings with customer

Bimonthly informal meetings with 5 key accounts

• Set up bimonthly informal meetings with A, B, C, D, E

• Invite to Customer Information Day

Customer Perspective

Action Plans

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Staff Productivity Revenue / manday 1000€/manday Lower sickdays

Improve margin Cut discount to publishers

Lower discount from 40% average to 35% within 12 months

Discussion with 5 major booksellers in January

Financial Perspective

Action Plans

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Strategic Planning

Vision

Mission

Company Goals

Develop Strategy

Company Values


Cla

rity

Ad

just

men

t

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Strategic Management Process

1. Establish the mission / vision

2. Establish grand strategy (using SWOT)

3. Formulate the strategic plans

4. Carry out the strategic plan

5. Maintain Strategic Control

Revise actions, if necessary, based on feedback

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The scheduling for the strategic planning process depends on the nature and needs of the publisher, but with most publishers planning should be carried out in a comprehensive and detailed fashion once every 3 years (mission, vision values, environmental scan).

Here are a few guidelines: Strategic planning should be done when you are just starting

your publisher. The strategic plan is usually part of an overall business plan, along with a marketing plan, financial plan and operational/management plan.

Strategic planning should also be done in preparation for a new major venture, for example, developing a new department, division, major new product or line of products, etc.

Scheduling of Strategic Planning

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Strategic planning should also be conducted at least once a year in order to be ready for the coming fiscal year. In this case, strategic planning should be conducted in time to identify the organizational goals to be achieved at least over the coming fiscal year, resources needed to achieve those goals, and funds needed to obtain the resources. These funds are included in budget planning for the coming fiscal year.

However, not all phases of strategic planning need to be fully completed each year. The full strategic planning process should be conducted at least once every three years.

Each year, action plans should be updated. Note that, during implementation of the plan, the progress of the

implementation should be reviewed at least on a quarterly basis by the board.

Scheduling of Strategic Planning

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Thank you for your attention!!!

! 1 Training program for publishers from the Arab world Strategic Planning in Publishing Cairo, July 12 th, 2008.

Documents

german market

booksellers german

german book market

market analysis

smaller booksellers

booksellers switzerland

booksellers luxembourg

fixed price agreement