Title: Communication, Marketing Vital, Says ELCA Publishing Head
ELCA NEWS SERVICE

November 6, 2002

COMMUNICATION, MARKETING VITAL, SAYS ELCA PUBLISHING HEAD
02-258-JB/DM*

     MINNEAPOLIS (ELCA) -- Better communication and marketing, improved
accountability and "grace" from customers are three keys to turning
around the fortunes of Augsburg Fortress, the publishing house of the
Evangelical Lutheran Church in America (ELCA).  Those were the remarks
of Beth A. Lewis, who became president and chief executive officer of
Augsburg Fortress Sept. 3, in a report to the board of trustees which
met here Oct. 24-26.
     Lewis said she has been doing a lot of listening since she assumed
her new role. She just completed the "2002 Asking for Directions Tour"
Sept. 29-Oct. 17 through several Southeastern and Midwestern states to
listen to comments about Augsburg Fortress from church leaders and
others.  Lewis began the tour at her former home in Boca Raton, Fla.,
and concluded it here at the corporate offices of Augsburg Fortress.
     Customers challenged Augsburg Fortress to communicate better, to
come up with a coordinated marketing strategy and to earn back the trust
of customers, Lewis said.
      "The trip was an energizer for our organization, which has been
through tough times in the past few years," said Lewis. Customers
commented on a wide range of concerns, including the content of books
the company published and the type of clerical shirts it sells, she
said.
     From comments she heard, Lewis said a major challenge for Augsburg
Fortress is to test different products in the market before they are
published and launched.  She said she also learned that products it
introduced were sometimes removed from the market too early.  In the
church it's common for congregations to learn about new educational
materials from other congregations, she said.  It takes time for "word
of mouth" recommendations to get around, which can increase sales, she
suggested.
     ELCA synod resource center directors "are a group of people we
really need to cultivate," Lewis said.  During the Asking for Directions
Tour, she met personally with several resource center directors, and
said they are important "networkers" in the church.  "I'm getting to
know these folks," she said.
     Staff morale is a significant concern, she said.  "I want to bring
joy to Augsburg Fortress," she said.  To boost morale, Lewis has met
personally with 120 out of 277 employees and hopes to complete meetings
with all staff soon.
     The company will launch a new program for employees called
"Balanced Scorecard."  The program will institute "goals for each
employee that are measurable and specific," she said.
"We need to make certain each and every employee understands their
obligation and commitment, and that we're all going after the same
goals," Lewis said.
     Lewis said she will meet with employees responsible for various
marketing efforts in the company to improve marketing coordination.
     The company needs to earn trust from its customers, she said, and
she asked board members to help communicate new directions for the
company.

FINANCES BETTER, BUT STILL NEED SIGNIFICANT IMPROVEMENT
     For the first nine months of 2002, Augsburg Fortress' operating
loss was nearly $1.8 million, about $2.4 million less than the loss the
company experienced for the same period in 2001, said George W.
Poehlman, vice president for finances, in a report to the board of
trustees.  What is hurting the company's bottom line this year is a
drop-off in sales, which are about $2 million behind this year's
forecast so far, he said.
     Despite the decline in sales, Poehlman said a hopeful sign is that
the company's expenses are under control.  Through September, Augsburg
Fortress' expenses have been reduced $4.4 million over the same period
in the previous year.  By year's end, expenses could be reduced as much
as $5.7 million over 2001, he said.  Fewer employees and reduced
inventory are among reasons for the expense reductions.
     "Through July, we weren't looking too bad," Poehlman said.  "But
in August, sales of the Sunday School materials did not come through for
us."  In addition to drops in sales of educational materials, sales of
worship materials are also down, he said.  Sales of educational and
worship materials are key to the company's performance, Poehlman said.
     "We are not doing as well as we had planned, but we have made
significant progress from last year," he said.
     Poehlman offered some budget suggestions for 2003, including a
reduced sales forecast and further reductions in expenses.  The company
should also do what it can to lift a freeze on employee wages, he added.
     After discussions about budget procedure, the board of trustees
adopted a resolution that the proposed operating budget for 2003 be
based on specific goals and objectives.  They are: stabilize sales at
$45 million; cut operating losses to about $950,000; improve cash flow;
control inventory; implement the Balanced Scorecard methodology; and
unfreeze employee wages.
     Poehlman said he hopes the operating loss for 2004 can be reduced
to zero.  To reach that, sales must be at least $50 million to break
even, based on the way the publisher is presently organized, he said.
     "By 2004 we've got to have solid plans in place to start to
increase sales," Poehlman said.  "If not, then maybe we have to look at
some plans for the publishing house to slim down."

INVENTORY REDUCED, NEW WORSHIP MATERIALS AVAILABLE SOON
     + Inventory levels have been reduced by $1.7 million for the first
nine months of the year, said Bruce Keil, vice president for operations.
The company will achieve a goal of reducing its inventory by $2.5
million by year's end, he said.  For 2003, the company will work toward
reducing inventory levels another $2 million, he said.
     + The first four volumes of the "Renewing Worship" series will be
in print by December, said the Rev. Martin A. Seltz, acting general
manager for worship and music.  Renewing Worship is a five-year project
that will result in new ELCA worship resources.
     + "Ready, Click, Grow Your Faith,' will be launched in January,
said Bill Huff, general manager for congregational resources.  Ready,
Click, Grow is a Web-based congregational ministry resource series
designed to help members and non-members enhance their faith using the
Internet.
     + The Rev. David L. Miller, editor of The Lutheran, the magazine
of the ELCA, has been recommended for renomination by the magazine's
advisory committee, in consultation with the ELCA presiding bishop, said
Janice M. Bowman, board member, Thousand Oaks, Calif.  Bowman is the
board's representative to the advisory committee for The Lutheran.
According to the ELCA Constitution, the recommendation is to also be
reviewed by the ELCA Church Council, the church's board of directors.
If it agrees, Miller's nomination will be transmitted for consideration
to the ELCA Churchwide Assembly, which meets in Milwaukee next August.
Miller was elected to his first four-year term as editor at the 1999
Churchwide Assembly in Denver.
     + The board of trustees participated in the ELCA strategic
planning process, led by the Rev. Charles S. Miller, ELCA executive for
administration and executive assistant to the presiding bishop.
-- -- --
     *Diana Mavunduse is a communicator with the World Council of
Churches, Geneva, Switzerland. This fall she is serving as a volunteer
with the ELCA News Service.

     Augsburg Fortress maintains a site at
http://www.augsburgfortress.org on the Web.


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