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=20 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
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About the Evangelical Lutheran Church in America:
The ELCA is one of the largest Christian denominations in the United States, with 2.8 million members in more than 8,500 worshiping communities across the 50 states and in the Caribbean region. Known as the church of "God's work. Our hands.," the ELCA emphasizes the saving grace of God through faith in Jesus Christ, unity among Christians and service in the world. The ELCA's roots are in the writings of the German church reformer Martin Luther.
For information contact:
Candice Hill Buchbinder
Public Relations Manager
Candice.HillBuchbinder@ELCA.org
