Streaming and the Era of On-Demand Media

Streaming and the Era of On-Demand Media

By Kevin R. Donley, kevin@multimediaman.org

printing week

On January 6th, Netflix went live with its video-streaming service in 130 new countries across the globe. The expansion— covering most of the world except for China—was announced by Netflix cofounder and CEO Reed Hastings during a keynote speech at the International Consumer Electronics Show in Las Vegas. Hastings said, “Today, right now, you are witnessing the birth of a global TV network.”

Prior to this latest announcement, Netflix had 40 million subscribers in the US and 20 million subscribers internationally in a total of 60 countries and available in 17 languages. According to Hastings, the company’s goal is to reach 200 countries by the end of 2016 and sign up 90 million US and 450 million worldwide subscribers.

The rapid expansion of Netflix is part of the transformation of TV program and movie viewing that has been underway for a decade or more. While “linear TV”— programming that is presented at specific times and on non-portable screens—is still popular, it is being rapidly overtaken by the new personalized, on-demand and mobile subscription services like Netflix.

According to Netflix, the growth of Internet TV is driven by (1) advancements in Internet reliability and performance, (2) time and place flexibility of on-demand viewing and (3) accelerating innovation of streaming video technology. A possible fourth driver of Netflix’s success is its subscription-based user model. Unlike previous on-demand solutions that often required consumers to purchase one at a time—or rent for a specified period of time—their own copies of movies and music, streaming media solutions like Netflix offers subscribers access to their entire content library without limitations for a monthly fee.

Streaming media refers to video or audio content that is transmitted in a compressed digital form over the Internet and played immediately, rather than being downloaded onto a computer hard drive or other storage media for later playback. Therefore, users do not need to wait for the entire media file to be sent before playing it; the media file is delivered in a continuous stream and can be watched or listened to as soon as the playing process is able to begin.

Media streaming originated with “elevator music” known as Muzak in the early 1950s. It was a service that transmitted music over electrical lines in retail stores and building lobbies. The first efforts to stream music and video on computers and digital networks ran up against the limitations of CPU performance, network bandwidth and data stream interruptions associated with “buffering.”

Attempts in the 1990s by Microsoft (Windows Media Player), Apple (QuickTime) and RealNetworks (RealPlayer) to develop streaming technologies on desktop computers made important breakthroughs. However, each of these solutions required proprietary file formats and media players that resulted in an unworkable system for users.

By the early 2000s, the adoption of broadband internet and improvements in CPU and data throughput along with efforts to create a single, unified format led to the adoption of Adobe Flash as a de facto standard for streaming media. By 2005, when the social media and video sharing service YouTube was established, Flash became the dominant streaming technology on the Internet. More recently—especially since 2011—HTML5 has advanced as an international standard on computers and mobile devices and it will eventually supplant Flash.

printing weekStreaming media has been transforming the music industry along side of TV and movies. While digital downloads still represent the largest percentage of music sales in the US, they are falling. Meanwhile, streaming music services like Pandora, Spotify and Apple Music have already overtaken physical CD sales and represent about one third of the industry’s income. Some analysts expect revenue from music streaming to surpass that of digital downloads in the near future.

Consumers and Content

Streaming media has fundamentally shifted the relationship between consumers and entertainment content. During the era of broadcast radio (1920s) and television (1950s), consumers needed a “set” to receive the analog programs of radio stations and TV channels. Meanwhile, audience members had to be in front of their radio or TV—with “rabbit ears” antenna adjusted optimally—on a schedule set by the broadcasters. The cost of programming was paid for by commercial advertising and corporate sponsors.

In the cable and satellite era (1970s), consumers began paying for content with subscription fees and programming was “commercial free.” Along with home recording devices—at first analog magnetic tape systems like VCRs (1970s) and digital recording devices like DVRs (late 1990s)—came an important shift in viewing behavior. Consumers could do what is now called “time shifted viewing,” i.e. they could choose when they wanted to experience the recorded content.

At first, music publishers mass produced and marketed analog audio recordings—records (1950s) and then audio tapes (1970s)—and consumers purchased and owned a library of recordings. These records and tapes could be enjoyed at any time and place as long as there was an audio system with a stereo turntable or cassette player available.

The same was true of mass produced CD audio (1980s) and DVD video (2000s) optical discs. While these digital formats improved portability and their quality did not deteriorate from repeated play—the way that analog magnetic and vinyl did— they required a new generation of optical devices. Portable CD (1980s) and DVD players (late 1990s) addressed this issue, but consumers still had to maintain a library of purchased titles.

With digital downloading of music and video over the Internet, content could finally be played anywhere and at anytime on portable digital players like iPods (2001) and notebook PCs. However, consumers were still required to purchase the titles they wanted to enjoy. Instead of owning bookshelves and cabinets full of CD and DVD jewel cases, downloaded electron- ic files had to be maintained on MP3 players, computer hard drives and digital media servers.

When Internet-based media streaming arrived alongside of mobile and wireless computing the real potential of time and place independent content viewing became a reality. Add to these the subscription model—with (potentially) the entire back catalog of recorded music, TV shows and movies available for a relatively small monthly fee—and consumers began flocking in large numbers to services like Netflix and Spotify.

Streaming Media Trends to Watch 2016

Media industry analysts have been following the impact of these streaming content and technologies and some of their recent insights and trend analyses are below:

Streaming Devices:

  • Linear TV content still dominates US households. However, there are signs that streaming media devices such as Roku, Apple TV, Chromecast and Amazon Fire are rapidly shifting things. The adoption of these devices went from about 17% in 2014 to about 28% of US households with broadband internet in 2015 [Park Associates]

Streaming vs. Downloading:

  • Online music streams doubled from 164.5 billion to 317 billions songs
  • Digital song sales dropped 12.5% from 1.1 billion to 964.8 million downloads
  • Digital album sales dropped 2.9% from 106.5 million to 103.3 million downloads [Nielsen 2015 Music Report]

Cable TV:

  • The cord-cutting trend—households that are ending their cable TV service—is accelerating. Total households with cable subscriptions fell from 83% in 2014 to under 80% in 2015 [Pacific Crest].
  • Scheduled “linear” TV fell and recorded “linear” TV was flat (or even increased slightly) from 2014 to 2015, while streamed on-demand video increased [Ericsson ConsumerLab].

While streaming audio and video are growing rapidly, traditional radio and TV still represent by far the largest percentages of consumer activity. Obviously, some of the cultural and behavior changes involved in streaming media run up against audience demographics: some older consumers are less likely to shift their habits while some younger consumers have had fewer or no “linear” experiences.

As the Ericsson ConsumerLab study shows, teenagers spend less than 20% of their TV viewing time watching a TV screen; the other 80% is spent in front of desktop and laptop computers, tablets and smartphones. Despite these differences, streaming content use is soaring and the era of “linear”media is rapidly coming to an end. Just like the relationship between eBooks and print books, the electronic alternative is expanding rapidly while the analog form persists and, in some ways, is stronger than ever. Nonetheless, the new era of time and place independent on-demand media is fast approaching.

World’s Largest Post Office Does More Business

World’s Largest Post Office Does More Business

Than Post Offices in Top Five Media Markets Combined • Usps.com Sales Eclipse $1 Billion

By USPS

usps

Customers are always at the front of the line at this Post Office that never closes. With a click of the mouse customers can conveniently ship from their homes to any location by scheduling a next-day package pickup — saving a trip to the Post Office.

During fiscal 2015 (Oct. 1, 2014-Sept. 30, 2015) usps.com generated more than $1 billion in sales — a major milestone for the 15-year-old site. The sales exceeded that of all Post Offices combined in the following media markets: New York City, Los Angeles, Chicago, Philadelphia, and Dallas.

“We’re everywhere so you can be anywhere,” said U.S. Postal Service Acting Chief Marketing and Sales Officer Jim Cochrane. “With usps.com, your Post Office is as close as your desktop or smartphone, so doing business with us is fast and convenient during this busy holiday season and all year long. Our dedicated employees are ready to serve customers with prompt service at nearly 32,000 Post Offices nationwide. We also provide convenient access at more than 70,000 grocery stores, drug stores, office supply stores, ATMs and other locations where customers can buy stamps and other postal products.”

Usps.com can provide virtually any service offered at a brick- and-mortar Post Office.

  • Track Packages — My USPS is an easier way to receive updates for incoming packages with real-time delivery notifications which are available within a few minutes of the delivery scan for select packages. My USPS filters updates for all incoming packages in one central dashboard, which is accessible on mobile devices and desktop computers.
  • Purchase Shipping and Mailing Supplies — Visit the Postal Store to purchase the Charlie Brown Forever stamps and other stamps, and order free shipping supplies, including boxes.
  • Schedule a Free Package Pickup — Schedule a Pickup, and a carrier will get the package during regular delivery. Multiple pickups can be requested once an account is created on usps.com.
  • Ship Packages — Consumers can use Click-N-Ship as a stress- free tool to pay and print postage for gifts from a mobile device or desktop computer. Sign up to start creating shipping labels and pay for the postage online.
  • Hold Mail — Going away? Take advantage of the Request Hold Mail Service. All your mail is kept safely at the local Post Office until you return.
  • Forward Mail — For a fee, mail can be held, packaged, and shipped weekly by Priority Mail using Premium Forward Service.
  • Ship Internationally — Depending upon the type of service selected, save money off retail prices when printing a shipping label from home. Use the built-in address form to transfer information into country-specific customs forms.
  • Calculate Postage — The postage price calculator provides estimates for sending packages, domestically or internationally.

Customers can do all of this — all from the comfort of their homes — by going to usps.com or downloading USPS Mobile on iOS or Android devices. These services can be accessed with the tap of a finger.

Customers can complete the steps to change an address on the USPS mobile app by simply clicking on the Change of Address icon. This convenient feature for USPS Mobile customers is in addition to others, including: USPS Tracking, My USPS, Ship Online, Buy Stamps, Find a Post Office Location, Calculate (or Look Up) Prices, ZIP Codes, Schedule a Pickup and Hold Mail.

How Great Salespeople Follow Up and Reap the Benefits

How Great Salespeople Follow Up and Reap the Benefits

By Joe Rickard, Intellective Solutions

vrSpending many hours researching and writing about the transition taking place in B2B direct selling, I have found that the value of networking and relationships still remain paramount. More than a few Decembers ago, I remember a specific deal where a relationship of my father-in-law helped me finish the year strongly.

After a promotion to sales manager for a Manhattan-based team of savvy and seasoned pros, I was faced with a dilemma. My sales team was reluctant to share information about their prospects or bring me in to meet their large prospects. It seemed they were testing their new and young sales manager. At this time, members of my sales team were engaged in a very large sales opportunity at a prominent publishing company. Because of the size of the deal, it had high visibility in my company. My boss repeatedly quizzed me on the status of the prospect. An order here would immediately propel my sales team and me from mediocrity to stardom.

I understood we had strong support and agreement from within the account. The barrier according to my salespeople was gaining agreement from a tough VP of Finance, a long-term employee who had a reputation akin to “Attila the Hun”. Not only was my team terrified of him, but the account’s employees were as well. Nothing of significance was ever approved without a scrupulous and contentious review by this tyrannical VP. One member of my sales team suggested we wait until he retired.

Over a weekend, my retired father-in-law gave me an encouraging talk on his experiences dealing with tough decision makers. Years earlier as a printing salesman, he sold to the very same publishing company. He talked with great fondness about a print buyer who gave him his largest order. He viewed the order as a reward for persistence and professional selling.

Consequently, the buyer became his friend and they spend many hours together. My father-in-law described the buyer as a “wild man”. After his retirement, he lost track of the buyer. Upon hearing the man’s name, I was excited as I realized that his last name matched my invincible VP of Finance. The first name my father-in-law remembered was a nickname and was not the same as the formal first name we knew. We decided, given the disparity in first name and the apparent difference in personality, the man was probably not our VP of finance.

The year-end approached, we had our final meeting to defend our proposal and close the deal. I forced my reluctant sales team to bring me along. This was my first visit to the account. There wasn’t too much pressure, since no one expected us to win the deal. As I entered the conference room, I took a chance. I whispered my father-in-law’s name in the VP’s ear. The VP smiled broadly. He pulled me from the room and spent the next fifteen minutes asking about his old friend. As we re-entered, the meeting participants were stunned.

Although no one knew how I “broke the ice” with this reluctant buyer, we got the order. My sales team was impressed. I gained their confidence, and the VP and my father-in-law renewed their friendship.
Some things do not change. The value of relationships is very powerful.

About the author: Joe Rickard is the founder of Intellective Solutions. Intellective Solutions (www.intellectives.com) works with printing and technology organizations to improve their sales, marketing and operational effectiveness. Joe can be reached at 845 753 6156. Follow him on Twitter @joe.rickardis.

Adrian Frutiger (1928 – 2015)

Adrian Frutiger (1928 – 2015)

By Kevin R. Donley • kevin@multimediaman.org

usps

Adrian Frutiger died on September 10, 2015 at the age of 87. He was one of the most important type designers of his generation, having created some 40 fonts, many of them still widely used today. He was also a teacher, author and specialist in the language of graphic expression and since his career spanned metal, photomechanical and electronic type technologies Frutiger became an important figure in the transition from the analog to the digital eras of print communications.

Frutiger was born on May 24, 1928 in the town of Interseen, near Interlaken and about 60 kilometers southeast of the city of Bern, Switzerland. His father was a weaver. As a youth, Adrian showed an interest in handwriting and lettering. He was encouraged by his family and secondary school teachers to pursue an apprenticeship rather than a fine arts career.

uspsAt age 16, Adrian obtained a four-year apprenticeship as a metal type compositor with the printer Otto Schlaeffli in Interlaken. He also took classes in drawing and woodcuts at a business school in the vicinity of Bern. In 1949, Frutiger transferred to the School of Applied Arts in Zürich, where he concentrated on calligraphy. In 1951, he created a brochure for his dissertation entitled, “The Development of the Latin Alphabet” that was illustrated with his own woodcuts.

It was during his years in Zürich that Adrian worked on sketches for what would later become the typeface Univers, one of the most important contributions to post-war type design. In 1952, following his graduation, Frutiger moved to Paris and joined the foundry Deberny & Peignot as a type designer.

During his early work with the French type house, Frutiger was engaged in the conversion of existing metal type designs for the newly emerging phototypesetting technologies. He also designed several new typefaces Président, Méridien, and Ondine in the early 1950s.

San Serif and Swiss Typography

San serif type is a product of the twentieth century. Also known as grotesque (or grotesk), san serif fonts emerged with commercial advertising, especially signage. The original san serif designs (beginning in 1898) possessed qualities lack of lower case letters, lack of italics, the inclusion of condensed or extended widths and equivalent cap and ascender heights that seemingly violated the rules of typographic tradition. As such, these early san serif designs were often considered too clumsy and inelegant for the professional type houses and their clients.

kabelAlong with the modern art and design movements of the early twentieth century, a reconsideration of the largely experimental work of the first generation of sans serif types began in the 1920s. Fonts such as Futura, Kabel and Gill Sans incorporated some of the theoretical concepts of the Bauhaus and DeStijl movements and pushed sans serif to new spheres of respectability.

However, these fonts—which are still used today—did not succeed in elevating san serif beyond headline usage and banner advertising and into broader application. Sans serif type remained something of an oddity and not yet accepted by the traditional foundry industry as viable in terms of either style or legibility.

futuraIn the 1930s, especially within the European countries that fell to dictatorship prior to and during World War II, there was a backlash against modernist conceptions. Sans serif type came under attack, was derided as “degenerate” and banned in some instances. Exceptions to this trend were in the US, where the use of grotesque types was increasing, and Switzerland, where the minimalist typographic ideas of the Bauhaus were brought by designers who had fled the countries ruled by the Nazis.

gillAfter the war, interest in sans serif type design was renewed as a symbol of modernism and a break from the first four decades of the century. By the late 1950s, the most successful period of san serif type opened up and the epicenter of this change emerged in Switzerland, signified by the creation of Helvetica (1957) by Eduard Hoffmann and Max Miedinger of the Haas Type Foundry in Münchenstein.

It was the nexus of the creative drive to design the definitively “modern” typeface and the possibilities opened up by the displacement of metal type with phototypesetting that brought san serif from a niche font into global preeminence.

Frutiger’s Univers

bauhaus schoolThis was the cultural environment that influenced Adrian Frutiger as he set about his work on a new typeface as a Swiss trained type designer at a French foundry. As Frutiger explained in a 1999 interview with Eye Magazine, “When I came to Deberny & Peignot in Paris, Futura (though it was called Europe there) was the most important font in lead typesetting. Then one day the question was raised of a grotesque for the Lumitype-Photon [the first phototypesetting system]. …

“I asked him [Peignot] if I might offer an alternative. And within ten days I constructed an entire font system. When I was with Käch I had already designed a thin, normal, semi-bold and italic Grotesque with modulated stroke weights. This was the precursor of Univers. … When Peignot saw it he almost jumped in the air: ‘Good heavens, Adrian, that’s the future!’ ”

final version of frutigerOriginally calling his type design “Monde” (French for “world”), Frutiger’s innovation was that he designed 21 variations of Univers from the beginning; for the first time in the history of typography a complete set of typefaces were planned precisely as a coherent system. He also gave the styles and weights a numbering scheme beginning with Univers 55. The different weights (extended, condensed, ultra condensed, etc.) were numbered in increments of ten, i.e. 45, 65, 75, 85 and styles with the same line thickness were numbered in single digit increments (italics were the even numbers), i.e. 53, 56, 57, 58, 59, etc.

Univers was released by Deberny & Peignot in 1957 and it was quickly embraced internationally for both text and display type purposes. Throughout the 1960s and 70s, like Helvetica, it was widely used for corporate identity (GE, Lufthansa, Deutsche Bank). It was the official promotional font of the 1972 Munich Olympic Games.

Frutiger explained the significance of his creation in the interview with Eye Magazine, “It happened to be the time when the big advertising agencies were being set up, they set their heart on having this diverse system. This is how the big bang occurred and Univers conquered the world. But I don’t want to claim the glory. It was simply the time, the surroundings, the country, the invention, the postwar period and my studies during the war. Everything led towards it. It could not have happened any other way.”

Computers and Digital Typography

Had Adrian Frutiger retired at the age of 29 after designing Univers, he would have already made an indelible contribution to the evolution of typography. However, his work was by no means complete. By 1962, Frutiger had established his own graphic design studio with Bruno Pfaffli and Andre Gurtler in Arcueil near Paris. This firm designed posters, catalogs and identity systems for major museums and corporations in France.

Throughout the 1960s, Frutiger continued to design new typefaces for the phototypesetting industry such as Lumitype, Monotype, Linotype and Stempel AG. Among his most well-known later san serif designs were Frutiger, Serifa and Avenir. Frutiger’s font systems can be seen to this day on the signage at Orly and Charles de Gaulle airports and the Paris Metro.

The penetration of computers and information systems into the printing and publishing process were well underway by the 1960s. In 1961, thirteen computer and typewriter manufacturers founded the European Computer Manufacturers Association (ECMA) based in Geneva. A top priority of the EMCA was to create an international standard for optical character recognition (OCR)—a system for capturing the image of printed information and numbers and converting them into electronic data— especially for the banking industry.

By 1968, OCR-A was developed in the US by American Type Founders—a trust of 23 American type foundries—and it was later adopted by the American National Standards Institute. This was the first practically adopted standard mono-spaced font that could be read by both machines and the human optical system.

However, in Europe the ECMA wanted a font that could be used as an international standard such that it accommodated the requirements of all typographic considerations and computerized scanning technologies all over the world. Among the issues, for example, were the treatment of the British pound symbol (£) and the Dutch IJ and French oe (œ) ligatures.

Other technical considerations included the ability to integrate OCR standards with typewriter and letterpress fonts in addition to the latest phototypesetting systems.

In 1963, Adrian Frutiger was approached by representatives of the ECMA and asked to design OCR-B as an international standard with a non-stylized alphabet that was also esthetically pleasing to the human eye. Over the next five years, Frutiger showed the exceptional ability to learn the complicated technical requirements of the engineers: the grid systems of the different readers, the strict spacing requirements between characters and the special shapes needed to make one letter or number optically distinguishable from another.

In 1973, after multiple revisions and extensive testing, Adrian Frutiger’s OCR-B was adopted as an international standard. Today, the font can be most commonly found on UPC barcodes, ISBN barcodes, government issued ID cards and passports. Frutiger’s OCR-B font will no doubt live on into the distant future—alongside various 2D barcode systems—as one of the primary means of translating analog information into digital data and back again.

Adrian Frutiger’s type design career extended well into the era of desktop publishing, PostScript fonts and the Internet age. In 1989, Frutiger published the English translation of Signs and Symbols: Their Design and Meaning, a theoretical and retrospective study of the two-dimensional expression of graphic drawing with typography among its most advanced forms. For someone who spent his life working on the nearly imperceptible detail of type and graphic design, Frutiger exhibited an exceptional grasp of the historical and social sources of man’s urge toward pictographic representation and communication.

As an example, Frutiger wrote in the introduction to his book, “For twentieth century humans, it is difficult to imagine a void, a chaos, because they have learned that a kind of order appears to prevail in both the infinitely small and the infinitely large. The understanding that there is no element of chance around or in us, but that all things, both mind and matter, follow an ordered pattern, supports the argument that even the simplest blot or scribble cannot exist by pure chance or without significance, but rather that the viewer does not clearly recognize the causes, origins, and occasion of such a ‘drawing’.”

Compensation: Group Incentive Plans

Compensation: Group Incentive Plans

By Stuart Margolis, Margolis Partners • www.MargolisPartners.com. P 610.667.4310.

usps

At year end, you reviewed annual performance. Now is a good time to put the numbers to work. As you set company goals for 2016, consider translating corporate objectives into performance goals. As you communicate with staff to let them know just how valuable they are to you, consider creating ways to tie performance to goals over the next 12 months. If you are successful in doing so, you could end up with better overall results than last year. How do you reward staff, recognize their efforts and encourage their ongoing loyalty while ensuring performance meets or exceeds benchmarks that will meet or exceed company goals?

Incentives Based on Operating Improvements

One way is to provide creative opportunities for the staff to receive incentives. Since a typical goal is to remain efficient, incentives could be based on operating improvements, 14 efficiencies, etc. This way, by challenging your staff to help contain costs and be more productive, you will be able to recognize and financially reward them for doing so.

Generally, it is best to reward staff and management for areas of operations they work in and can control. Generally, those items to build the incentives around should have a level of variability to them, and hence need a focus of effort and/or control. For example, direct production overtime is variable, it needs a level of focus from management on a regular basis all year, whereas building rent does not. Some possible group incentive based benchmarks include:

  • Gross Profit
  • Spoilage
  • Overtime
  • Pre-tax income
  • EBITDA

Gross Profit

Virtually anyone in a manufacturing company is a candidate for inclusion in an incentive program based on gross profit.

Here are the key elements of a Gross Profit incentive program:

  • Higher chargeable production hours or lower non-chargeable hours or a better utilization factor
  • Direct Labor including overtime
  • Utilities – turn off the lights, HVAC
  • Supplies – cut out waste and overuse
  • Repairs and Maintenance – maintain rigid maintenance schedules and take care of the equipment

If there is a shop supervisor or manager that can personally impact a certain area of performance, it could be wise to break out a separate/personal goal for them that ties-in to the overall goal. When doing so, make sure they take responsibility for the goal and buy in to plans for achievability.

Spoilage

Reducing spoilage is a great opportunity. It seems that almost everyone is satisfied if spoilage is 1.5% of sales. At $10,000,000 in sales spoilage of 2% is $200,000. A 25% savings would improve cash flow by $50,000 which is a decent monetary reserve to utilize for incentives. Is there a department or team that can directly impact spoilage? If so, let them set the annual goal. Then, delineate how they envision spoilage decreasing. Break it down into monthly or quarterly estimates. Suggest ways the estimate can be achieved on a weekly basis with an actionable item. Ask them to try to meet the weekly goal and monitor their results. Realize that change is hard. Closely monitor it in the beginning. If performance is off course, uncover reasons. If correctable, suggest adjustments.

Overtime

Overtime is a culprit that can drain cash flow quickly and it may be difficult to control and reduce. After all, it may be the most important “culprit” in meeting production schedules and job turn around. With the cooperation and communication among the salespeople, production management and staff on focusing to improve efficiencies, it is possible to improve overtime efficiencies.

Here are some creative ways to think about it. Ask salespeople to get a clear understanding of client deadlines and demand. If 12-24 hours can be added to a production schedule, overtime can sometimes be avoided. Alternatively, if a job’s set up time is negligible, and the client doesn’t need the full order of the product immediately, sometimes a partial order fulfillment could work. Run part of the job now (to give the client what they presently need), then run the rest of the job latter when there is a break in the schedule (without overtime). We have actually seen both these tactics work and the savings can be very significant.

Pre-Tax Income

or EBITDA (Earnings Before Interest and Taxes, Depreciation and Amortization)

Setting a goal based on Pre-Tax Income or EBITDA is typically another group goal. The group as a whole must work together for achievement. It can provide valuable teamwork and learning opportunities for your staff since some players will pay attention to the goal while others may not. The philosophy? Hopefully the result-driven members of the team will pull along the less focused, reminding them to stay on task. Of course, it’s important to have the right people on the bus (Jim Collins, “Good to Great”.)

Summary

Different types of incentive programs may be appropriate for different personnel or departments in your organization. Be careful, to set goals so that the assigned parties are actually able to achieve the goals. Incent teams to achieve the goal with individual goals given to particular people, departmental goals given to specific teams that can contribute and company-wide goals set when a full effort is needed. Safeguard against setting goals that destroy teamwork and a commonality of purpose or set up “walls” or friction between departments.
If this sounds like too much planning, too much to handle, take a day to retreat, think about goals and bring them back to the grind. If it doesn’t work, rethink it. We run retreats all year long for profit leading, goal-focused companies to help re-focus.

Using incentive-based pay can help maintain a healthy cash flow environment since labor costs only increase when goals are actually attained. It creates a positive energized and forward-thinking environment. Savvy staff members thrive under great leadership, hope and purpose. Challenge them with incentives that are not just based on sales. Next year at this time, you will be glad you did.

 

About Margolis Partners: Margolis Partners has long been recognized as the financial expert for family- owned businesses with a specialty in the printing, packaging and allied graphic communications industries, assisting thousands of companies with strategic and financial management, valuation, mergers/acquisitions, accounting, audit and tax services. The firm is noted for its expertise in enabling companies to optimize profits. Proudly, it is the purveyor of the industry’s Value-Added Principles of Management, and compiles the annual Printing Industries of America Ratios, the printing industry’s premier financial benchmarking tool.

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Employers providing health insurance for employees

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