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Romano’s Association Consolidation Piece is Well Worth Reading

By Cary Sherburne on October 9th, 2009

Thanks, Frank, for putting a frank (and Frank) perspective on this whole association kerfluffle.  This is the most concise statement of issues I have seen yet, and points out some of the shadier side of the whole mess, as well.  I was also pleased to see Frank suggest that IPA, GAA and The Print Council should be considered under the same umbrella.  As the industry shrinks, this will become more critical.  I was especially pleased to see IPA mentioned, since I have not heard that from anyone else.  When I did my training article earlier this year, I was shocked that IPA was the only association who had made significant investments and progress in online training. They have worked hard to build a platform and process that works.  To the extent that could be expanded for the benefit of the entire industry, all the better.

Finally, to add to Frank’s comments about the PIA/Xerox relationship, Xerox is in the midst of a huge road show about the ACS acquisition and the future of Xerox Global Services, which is basically comprised of managed print services and enterprise managed services.  In fact, I sat through most of a 2.5 hour briefing on the subject the other day.  It appears that this goes way beyond what other manufacturers are doing at this point, and not a peep out of PIA … talk about a conspiracy theory!

Based on the current economic situation, the state of the industry, and the increased commentary on the subject, it would be a shame if these associations don’t put down their partisan politics and get together for a meaningful discussion on how best to serve the industry.

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  1. 10 Responses to “Romano’s Association Consolidation Piece is Well Worth Reading”

  2. By Brian Regan on Oct 9, 2009 | Reply

    To distance all the various slingage of mud and so on… I propose a focus on positive things and ideas.

    These forums have the potential to add positive thoughts to the discussion. By tapping the “Collective Intelligence” of this community, we can hope those who are influential and looking critically at making positive changes will gain ideas and concepts from us.

    Frank proposes all these things and Cary seems excited about the other associations… “I was also pleased to see Frank suggest that IPA, GAA and The Print Council should be considered under the same umbrella. ”

    1. The relationship between a national association and the local association should be arm’s length. Members would join at the national level. The local and the national association must be able to stand on their own. If local members do not see the value in local membership, then the local association must re-invent itself or go away. Neither local nor national should subsidize the other. The locals would save an immediate 15 percent of their revenue.

    2. The local association would buy publications, newsletters, seminars, consulting, etc. from the national association for re-sale. I recall that Printing Industries of Northern California distributed NAPL materials. There would be three tiers of pricing – non-member, PIA member, PIA/local member.

    3. Territories would not be guaranteed. Other local associations could form to better serve the needs of a geography. Giant multi-state “locals” may not be best for all areas. Capitalism is good. Competition is gooder.

    4. NAPL and PIA would merge to form PIA — Printing Industries of America. I think that name is perfect. It headquarters would move from Pennsylvania and New Jersey to Chicago. If Heidelberg and manroland merge, a great building (manroland’s) would become available. We were told that GATF could not move because of its staff. I still think that was a canard. Chicago would be more accessible for more board members and seminar registrants than PA or NJ.

    5. The new association would also take under its wing IPA and GAA and probably the Print Council. Some of PIA’s millions should be used to promote print and printers. The PIA board thinks that accumulating wealth is what an association should do. It should have reserves, but it must also invest in its industry’s future.

    6. The board would be re-constituted to be more representative of the industry. Right now, they appear to be set up to support the status quo. Being on a board is no longer a status symbol — it is hard work.

    7. The president’s salary would be based on tangible measurements, such as membership and non-investment and non-show revenue. They would have re-newable 2-year terms.

    8. Suppliers may join at the national level and offer member discounts without kickbacks. Trade associations should not be equipment dealers.

    9. Serve the entire industry. Right now, both associations are only serving a fraction of the industry. They have forced us to take sides. Look at the major printing magazines — they support only certain associations or parts of certain associations (like awards issues). Materials should be priced so small printers can afford them.

    10, One major annual event should take place. Two national printing conferences are wasteful. More support should be given to GraphExpo/PRINT. We need to come together annually to see what is new and talk to others.

    11. Openness, transparency, and honesty should prevail. The president should speak for the industry, not for himself or herself.

    12. Then, let’s get every printing company involved. Let’s create an association that truly represents a great industry with a great future. Every American firm should join and, with that strength, we can work wonders.

    This is what the discussion should be focused on. Add to, enhance, bring new ideas. No ones ideas should be laughed at or shunned, but collected and reviewed by the powers that be.

    Thoughts welcome………..

  3. By Bob Lindgren on Oct 9, 2009 | Reply

    I agree with practically all of the positive comments of Brian Regan and Frank Romano on the need for a single, stronger national association. Certainly there are issues to be resolved including the Affiliate relationship but nothing should be off the table in this process as we work to help our industry survive. I believe that that was exactly what PIA was trying to do in in its recent initiative to NAPL and I believe it is still willing to do. I also commend Brian for his comment on the “slingage of mud” as this just comlicates an already difficult but very necessary process.

  4. By gordon p on Oct 9, 2009 | Reply

    The tone of the comments is very U.S. centric, however, the PIA is currently international (they have local associations in Canada – I don’t know about Latin America). I would hope that should any reorganization occur it would not affect that relationship.

  5. By Michael J on Oct 9, 2009 | Reply

    Bob,
    I strongly agree with no mud slinging. But there were some emails that Frank quoted in his article that disturbed me. It’s a bit unpleasant, but it’s just a copy and paste. I don’t know if it’s true, but someone could check it out. The snippet in question is

    “I received lots of e-mail about all this: “I was at an Ohio (PIANKO) conference and the president of PIA made a presentation. He said he had just returned from a meeting in DC where Senator Hillary Clinton was present. He said the “stench” was still on him.”

    Not good.

  6. By Michael J on Oct 11, 2009 | Reply

    I found this morning, that Ricoh has joined the NAPL membership discount program http://retwt.me/FgcL .

    Any one know if the business arrangement is similar to the one that Xerox has with PIA?

  7. By Paul Reilly on Oct 12, 2009 | Reply

    Frank,

    We may not agree on all items in your recent post, but we both agree on the need for consolidation. Let’s then focus on industry organization consolidation.

    It is now time leaders of the industry to move OUR industry organizations in the direction of consolidation. Industry leaders need to promote the positive aspects of consolidation and urge respective board members and executive teams to the negotiation table.

    There is a proven path to accomplishing such a merger:

    First, agree the benefits of consolidation. This is the most important step and must be agreed by all parties. When all parties understand and agree on the benefits of consolidation, it is easier to overcome the inevitable obstacles ahead.

    Second, agree Social Issues. All parties need to agree on ongoing management, brand, operating philosophy, operating procedures, location etc. This is the most difficult step

    Third, agree Communication Plan. This step is often overlooked but how and what you communicate to employees, members and suppliers is imperative for a successful merger.

    Last, document and merge. This step should be completed in conjunction with legal counsel. Hire lawyers who understand mergers and acquisitions and association law.

    As industry leaders, we need to encourage all parties to get together and complete step 1. Then and only then will we know if we should continue. I strongly urge the leaders of the supplier community to make their wishes known. Let’s face it; their financial support is the backbone of our industry organizations. They are also in a better position to determine if other industry organizations should be included in these discussions.

    Personally, I have significant experience in successfully leading organizations to merge. I would volunteer my time and that of my firms to assist all parties in proceeding along the proven path to a merger as outlined above.

    We, as an industry, have much at stake. NAPL and PIA make significant contributions to the industry – notably – world class consulting, local affiliate seminars and training, GATF research and much more. If we don’t act, we may lose it!

    Paul Reilly, Partner, New Direction Partners.

  8. By Tim Freeman Printing Industries Alliance on Oct 13, 2009 | Reply

    I think Paul Reilly hits the nail on the head. I don’t recall ever speaking with a printer or supplier in my 25 years in the industry who didn’t think that consolidation of our 2 industry organizations into one united voice and resource would be a tremendous benefit. If the printers and suppliers want to make it happen, it will happen. In today’s environment with our industry under new challenges every day, we need to act seriously, judiciously and quickly to unite the 2 organizations in a manner that will provide value to the industry. We do not have the time or resources to waste on any more finger pointing and turf battles. As a PIA affiliate manager, we see first hand the struggles our members undertake just to make payroll and keep the doors open in an economic climate that continues to be beyond challenging. We would ask that the volunteer leaders of NAPL and Printing Industries of America put past differences aside and come together for the betterment of our industry.

  9. By Cary Sherburne on Oct 13, 2009 | Reply

    I hope someone takes Paul up on his generous volunteer offer. Perhaps with outside help like this, the matter can be resolved in the best interests of the industry.

  10. By Clint Bolte on Oct 13, 2009 | Reply

    Paul’s facilitation would be immeasurably valuable.

    I would think the first meeting would include members of each Board’s Executive committee without either association’s staff members present. The existing employees simply have too much conflict of interest to get beyond their own proprietary self (career survival) interests.

  11. By Carl Gerhardt on Oct 14, 2009 | Reply

    Our industry should learn something for the Photo Marketing Association. That industry was successfully consolidated into one association…PMA. They have huge resources and have one huge show annually. If you are in the photo industry you belong to that association. Their dues are very small, affordable by all and they have membership that is much larger than all of the print associations combined.

    There are a few thousand of us in the print franchise community that could also benefit from consolidation of associations. I am a former shop owner that was on the board of a PIA affiliate and also on the board of and chairman of NAQP before it merged with NAPL. That merger basically saved NAQP and enhanced the value for it’s members. I don’t profess to speak for all of the franchise companies or small independent printers. But, I can say I have experienced first hand how the needs of this important segment of the industry is not being well served by multiple associations. Moreover, franchised shops do not need some of the consulting services provided by associations but do need legislative industry representation, economic research, technical research etc. Thus, associations are important to us but perhaps is a slightly different way than non-franchise shops.
    I would also encourage the leadership of the associations to consider that they are there to serve the industry and not their own vested needs. I think those that feel the associations should “compete” for membership are not seeing the forest for the trees. The time was right for NAQP to merge with NAPL……the time is now right for PIA, NAPL et. al. to do the same.

    Carl Gerhardt
    President & CEO
    Allegra Network LLC