wfn.org | ELCA Publishing House Reorganization Plans Presented to Board

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ELCA NEWS SERVICE

November 2, 1999

ELCA PUBLISHING HOUSE REORGANIZATION PLANS PRESENTED TO BOARD
99-266-JB

     MINNEAPOLIS (ELCA) -- Augsburg Fortress Publishers, the publishing
house of the Evangelical Lutheran Church in America (ELCA) will
reorganize its operations January 1, 2000, into specific market and
business groups.  The move will likely result in a reduction of
positions, said Charles C. Halberg, executive vice president and chief
operating officer, Augsburg Fortress.
     Halberg, who joined the company in September, presented the
reorganization plan to the Board of Trustees for the publishing house
during its meeting here Oct. 21-23.  The board also held a 90-minute
executive session to discuss personnel matters related to the
reorganization.
          Specific information on how the reorganization will impact the
work force is expected to be made public in a few weeks.   Augsburg
Fortress employs 380 part-time and full-time workers.
     "What drives this (plan) is the wishes of the customer," Halberg
said of the new plan. "We're going to ask what our customers want.
We're going to produce and sell it.  It's just that simple."
     The company will form four market-focused groups and two business
groups, Halberg said.   The market-focused groups include:
     + An ELCA group, which will develop and market products needed for
worship and congregational life in ELCA congregations.
     + An ecumenical group, which will develop and market products
needed for worship and congregational life to all other denominations
and faith groups.
     + A professional development group, which will develop and market
products, including academic resources needed for development of church
professionals.
     + A consumer group, which will develop and market products for
adults, teens, children and families used in settings outside of
congregations.
     The business-focused groups include:
     + A Canadian group, which will distribute Augsburg Fortress
products in Canada.
     + A new ventures group, which will investigate, form and manage
operations outside of the Augsburg Fortress corporate structure.
     Each group will have its own leader, and only one has been named
to date, Halberg said.  Dana Dreibelbis, presently vice president for
publishing, will head the ELCA group.  Others are expected to be
recruited outside the company, Halberg said.
     Some board members expressed the need for diversity in the
leadership of the groups.  The board recommended that "special
consideration be given to fulfilling our stated goal to express racial,
ethnic and gender diversity."
      The reorganization plan is the result of a strategic business
plan adopted by the board at its spring meeting this year.  It calls for
Augsburg Fortress to refocus its business systems to create a 
market-driven organization, broaden its focus on ELCA congregations and the
ecumenical market, develop a new marketing effort aimed at select
consumer markets, and expand its capabilities through alliances, merger
and acquisitions.  The plan also calls for the publisher to position
itself to become "the premier Christian communications organization in
the United States."
     The reorganization will take place at a time when the company's
sales are down and expenses are up, expected to result in a projected
operating loss this year of about $1 million, said George W. Poehlman,
vice president for finance and treasurer.  At the same time, Poehlman
told the board the company's overall financial position is strong, with
favorable credit and cash positions and control of inventory and
receivables.
     Halberg described the reorganization as an exciting time for
Augsburg Fortress and its board.
     "Can Augsburg Fortress jump start its revenues? Can it rejuvenate
its resources?  Absolutely.  We can do it," Halberg said to the board.
     Halberg emphasized the company will focus on the ELCA, which he
called "our core business."   He also said the company has little or no
debt, which it can "leverage" to growth.
     As Augsburg Fortress reorganizes with a market focus it is also
developing its budgets for 2000, and both are "very much related," said
the Rev. Marvin L. Roloff, president and chief executive officer.
     Roloff said he is committed to the company's reorganization.   At
the same time, it will require "budget reductions" which will impact
staff and expenses, he said.
     The board of trustees authorized its Audit and Finance Committee
and Executive Committee to approve the 2000 operating budget by the end
of this year.

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html