ELCA Publisher CEO Search Continues; Financial Situation Difficult

ROSEMONT, Ill. (ELCA) -- Initial interviews are expected to begin in June for the position of president and chief executive officer of Augsburg Fortress, the Minneapolis-based publishing house of the Evangelical Lutheran Church in America (ELCA). The report was made at the publisher's board of trustees meeting here and at the ELCA churchwide office in Chicago, April 25-27.
Depending on a search committee's progress, a new leader for the ELCA publisher is expected to be considered for election by the board sometime later this year, said Timothy I. Maudlin, board chair, Eden Prairie, Minn.
In October, the Rev. Marvin L. Roloff said he would not seek another term as president and chief executive officer when his current term concludes in 2004. The board began a process to determine a new leader for the ELCA publisher, intending to elect a successor this year.
A study to determine the ELCA publishing house's leadership needs was completed earlier this year. The study included input from more than 100 key "stakeholders" familiar with the publisher and its role within the church, Maudlin said. Results of the study and other input were used in writing a position description which has been widely publicized, he said.
"One of the key results of this process was excellent input on the challenges and opportunities facing the publishing house," Maudlin said in his report to the trustees.
In a separate report on Augsburg Fortress' finances, George W. Poehlman, vice president for finance, told the board a primary goal for the publisher in 2002 is to stabilize its financial position.
In 2001 Augsburg Fortress incurred a net loss of $7.17 million, according to audited figures reported to the trustees. Through the first three months of 2002, Poehlman said Augsburg Fortress recorded a net loss of $615,298, $1.69 million less than the loss incurred in the first quarter of 2001, and less than forecast for the first quarter of 2002.
To minimize losses in 2002, Poehlman said the company has reduced operating expenses considerably and is maintaining strict control of its expenses. It has also reduced its sales forecast for 2002 by more than $3 million. Sales for 2002 are expected to be about the same as in 2001, he said.
Key indicators of company performance are sales of education and worship materials, Poehlman said. Through the first quarter of 2002, education sales were off $363,000 from one year ago, and worship sales were down $235,000.
"We need to pay close attention to these two areas," he said. "How they go is pretty much how the company goes."
With tight controls in place, Poehlman said the company projects a net loss of nearly $244,000 for 2002, about half the loss originally projected for 2002. At present, no reductions in personnel are planned, though Poehlman said some jobs may remain unfilled.
"It cannot be business as usual," Poehlman said. "The lack of sales growth remains a major issue. We have to grow sales or have a smaller, more focused publisher."
In another area of concern, leaders with Augsburg Fortress and the ELCA Division for Congregational Ministries (DCM) -- a key publishing relationship for Augsburg Fortress -- reported they have had many discussions and made progress to build better publishing relationships.
The discussions were the result of two resolutions adopted by the DCM board last year concerning Augsburg Fortress. In one the DCM board authorized DCM's executive directors to "investigate alternative means" of publishing resources for congregations. DCM's board said the current publishing partnership between Augsburg Fortress and DCM had become "inefficient and ineffective." In a separate resolution, the board asked the ELCA Church Council to review the relationship between Augsburg Fortress and the ELCA churchwide organization, especially the current partnership with DCM.
In a session with the board of trustees, the Rev. M. Wyvetta Bullock and the Rev. Mark R. Moller-Gunderson, DCM executive directors, discussed DCM's publishing relationship with Augsburg Fortress, and what has been discussed in the past year. Conversations with Augsburg Fortress have included how resources are used, sources of funding, potential research and improved coordination of work.
In one key area, the ELCA publisher and DCM have focused greater attention on resource management teams which oversee joint development of a variety of materials. On May 9 and 10, the teams, which consist of Augsburg Fortress and DCM personnel, will meet together to discuss publishing issues and to plan for the future.
Teams are in place for resources related to worship, education, stewardship, evangelism, social ministry, leadership, youth and outdoor ministries, Roloff reported.

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