Reviving a Struggling Financial Printing Company: Lessons Learned

Businesses stumble and fall at different stages, and sometimes one must turn the tables to find success. My journey with a 125-year-old financial printing company that was struggling for its survival offers a comprehensive case study on revitalization strategies. Here’s how we accomplished it and what lessons were learned along the way.

Strategic Management

The turning point for the company came when, in 1999-2000, I was given the responsibility to run it. While the company had a splendid past, it was in dire commercial straits. A new approach was needed to steer the company back to profitability. This involved:

Appointing a qualified accountant as the CFO (Chief Financial Officer) – We replaced the incumbents with fresh talent who were more interested in the growth of the business. This included a thorough review of the financial statements with another accountant and a lawyer, to ensure transparency and accountability. Streamlining Global Operations – We established affiliate arrangements with printing firms in other countries to centralize our international distribution and printing channels. This reduced costs and ensured a smoother workflow. Focusing on Core Capabilities – We reduced our range of print products and services and re-focused on financial and security printing – our core strength. Introducing Printbroking – Providing printing consultancy services to non-financial and non-banking clients. This extended our service offerings while reducing unnecessary overheads. Optimizing Production – At the printing factory, we halted the production of irrelevant materials, ensuring that our capital-intensive equipment, valued in the millions, was utilized more efficiently. Retaining Expertise – We reintroduced printing apprenticeships to pass on vital skills and ensure the continuation of expertise.

Internal Management

We streamlined the management structure, rationalizing it to two levels – myself and a small team of managers. The Personnel Department was disbanded to save costs, as its contributions were minimal. Our human resources and management were handled internally, simplifying operations and reducing overheads. Key steps included:

Cost Reduction – Eliminated the Personnel Department to save on operational costs. Our responsibilities shifted to the Accounting Department, which naturally managed the HR functions. Right-sized Workforce – We maintained a lean staff of 33 people, excluding myself, to keep our operations efficient and cost-effective.

Modernizing Assets

We modernized our equipment to ensure that the company could keep up with the evolving needs of the printing industry. Key measures included:

Digital Transformation – Replaced temperamental typewriter systems with macrocomputer-based typesetting and page makeup workstations, introducing modern filmsetters for better accuracy and efficiency. Backup Solutions – Retained old pasteup benches, repro cameras, and color separators as backup equipment to ensure that we could continue production in case our new digital systems malfunctioned. Enhancing Copy Services – Leased a high-speed industrial photocopying machine and binder for office use, significantly improving our client-markup distribution capabilities.

Office Renovation and Modernization

Ultimately, a fully functional office space is crucial for any organization. Key renovations included:

Environmental Control – Ensured that the paper storage was kept in a controlled environment, minimizing the risk of damage from humidity or moisture. Facilities Enhancement – Installed a shower at the office and a few more at the factory for staff use, enhancing employee well-being and satisfaction. Office Entertainment – Installed multiple large cable TV screens to stay updated with international news and provide entertainment during non-busy periods, boosting morale and keeping employees engaged. Time Zone Clocks – A unique addition of six clocks on the walls for different time zones, with a world map for reference – a nod towards our global client base and international operations.

Conclusion

These changes, while innovative and sometimes unconventional, have proven successful. The company has transformed from an ailing enterprise to one that thrives. By focusing on core strengths, streamlining operations, and modernizing, we have not only kept the business afloat but also enhanced its competitiveness in the global marketplace.

Key Highlights:

Strategic management and leadership Efficiency and cost reduction Modernization of equipment and facilities Focus on core strengths and services

This journey underscores the importance of adaptability and innovation in the face of adversity. What similar strategies have you applied in your own business turnaround stories? Share your experiences in the comments below.

[Image Insert: Clocks and TV screens in office – From the author's photo collection]