Robin Ash

Robin Ash and Printzof Press

Printzhof Press • • • •

Most important division of EEH Published college level textbooks Accounted for 35% of EEH’s 2010 revenue Accounted for 43% of net earnings before taxes • Most prestigious textbook publisher in country

History of Printzof Press • Eric Nyren founded in 1948 • Nyren emphasized the importance of treating everyone-employees, customers and suppliers with “decency and respect” • Vision - to promote educational excellence • Company focused on long term relationship than short term profits • Became market leaders

Higher education publishing after World War II • GI bill altered societal belief about college education • 2.4 million enrolments in 1947 -> 17.5 million in 2005 • Publishers started to provide educational experience that suited students expectations • Ancillaries- study guides for students and test banks for instructors

• Students responded positively to multimedia presentations in class rooms • Advent of internet based learning aids and self testing programs in 1990’s • Custom publishing programs resulted in course specific texts for students

Effects on Printzof Press • Printzhof Press was slow to respond to changes in the higher education publishing market • Failed to adapt to the customer requirements or demands • By 1992 growth declined considerably • Nygren Earnest decided to sell the company to EEH

Printzof Press as a subsidiary of EEH • Initially Printzof Press performed well in financial terms • But lack of ancillary package to support textbooks impacted the company • No. of profitable first editions decreased from 14% in 1992 to 11% in 1995 • Several “Printzof schools” switched to other publishers • Signing new authors became difficult

Concerns of top managers at EEH • Salaries and administrative cost at Printzof Press were very high • Printzof Press was not adapting to external environment • Other companies began producing eBooks, eliminating raw materials, manufacturing cost etc. • Printzof Press was not serious about this

Robin Ash as COO of Printzof Press • Part of EEH for 11years and was a rising star • In her assignment at Charlotte’s Play, she managed quarterly growth of 3 to 4% • In her next assignment at Print Play she was able to increase employee satisfaction by 19% • Under her leadership revenue and net earnings of Print Play increased substantially • These success at Charlotte’s Play Space and PrintPlay gave her a chance to head Printzof Press

Cultural and Business challenges • Culture at Printzof Press – Non- adaptive culture – All employees were given good ratings regardless of performance – More levels of hierarchy

• Business scenario: – – – –

External competitive environment Public complaints against textbook costs Government regulations New competitors entering market

How organisational culture affects the performance?

Organisational Culture • Culture creates organizational climate that enables learning and innovative response to challenges or new opportunities • A strong culture that encourages adaption and changes enhances organisational performance • Creating and influencing an adaptive culture is very important • The right culture can drive high performance • Strong culture that don’t encourage adaption hurt the organization

• When organisation becomes successful the values, ideas and practises that helped attain success become institutionalized • As environment changes these values become detrimental to future performance • Printzof Press become victim of their own success clinging to outmoded and destructive values and behaviours • Healthy cultures provides smooth internal integration and also encourages adaption to external environment

Adaptive vs. Non-Adaptive culture

Main challenges in front of Ash • Ash had to get Nygren and Kross on board with the changes that need to be made in the organisation culture and operations • Responsible to make employees move more quickly and in new direction • Product development • Change the laid back attitude in the employees

Recommendations • Printzof Press needs to move to an adaptive culture – Company should focus more on new opportunities – Environment should be competitive

• Company needs to focus on product development. – E.g.: From 2009 e-texts market increasing by 50% YOY – Competitors are focussing more on ancillary products

• Performance evaluation – Rating scales should be created with measurable performance targets – Rather than ratings employees should be ranked based on performance

Thank You