Bring it to the Bottom Line...Communicate Value Delivered

At one time or another, just about everyone has heard that "the best defense is a good offense." According to Wikipedia, this adage has been applied to many fields of endeavor, including games and military combat. Generally, the idea is that offensive action preoccupies the opposition and ultimately impairs its ability to do direct harm.

This is exactly the approach that in-plants need to take in a world of economic uncertainty, continued corporate restructuring, management changes, and mergers and acquisitions. You need to proactively and succinctly communicate the value that the in-plant is delivering to the organization in terms that all levels of management will understand.

There are three key elements that the in-plant value proposition needs to include:

1. A clear definition of the business problem that the in-plant solves. This seems obvious, but the in-plant is frequently viewed as a cost center. The in-plant manager must, therefore, articulate how the in-plant can help support the organization's business objectives.

2. An understanding of benefits. Value is the difference between the perceived benefits and consequences of selecting a different solution. This means that you must develop a very broad view in defining the benefits of the in-plant and the associated consequences to the organization if it does not have your operation.

3. A superior value proposition. User departments and corporate management must perceive that your value proposition is superior to every alternative being considered. It is your responsibility to differentiate your solution by producing a superior value proposition.

Debbie Pavletich, past president of the In-Plant Printing and Mailing Association (IPMA) and graphic services manager of Briggs & Stratton Corp., identified a clear series of benefits that in-plants can deliver. These benefits can also highlight the consequences associated with utilizing external providers. Debbie articulates the following value propositions to her company:

• Cost: In-plants that maintain high productivity as well as sales per employee will provide a cost savings of 15-30% to their parent organizations. Competitors like facilities management organizations are in business to make money, and their profits range from 10-20%. Those dollars can be realized as organizational cost savings that directly contribute to the bottom line.
• Faster time to market: Projects will be processed faster because of the in-plant employees’ familiarity with the organization's products, wants and needs.
• Staff: The staff turnover for other print service providers is much higher than for in-plants. An experienced staff provides the organization with efficiency, quality and attention to detail.
• Managerial control: Projects processed through the in-plant for a parent organization are a top priority; another organization’s project will not affect the priority of your project.
• Loyalty: An employee that is working within an in-plant is dedicated to success of the entire parent organization. When the organization succeeds, the in-plant succeeds.
• Security and confidentiality: Being able to process and distribute through internal resources maintains the confidentiality of an organization’s information.
• Quality: In-plant employees have a thorough understanding of their organization’s branding requirements. They will maintain correct procedures for its logo and corporate standards related to color and style.
• Value-added services: In-plant employees are print experts. They know cost-effective ways to process a print project and are well-versed in print technologies. There is no need for a purchasing individual to become a printing expert. In-plants also provide ancillary services, including proofreading and monitoring of corporate branding and identity.

Debbie’s final message is be proactive in communicating. In-plants must ensure that their parent organizations know who they are and understand their value. You need to have the documentation in place to demonstrate that you are the best option.

Her recommendation is to regularly deliver reports that include the following information:

• Sales
• Expenses
• Income
• Comparison to budget
• Benchmarking of external printers and the savings for production materials in the in-plant
• Productivity
• Impressions
• Projects
• Customer satisfaction
• Quality standards
• Certification information
• Process improvements
• Future plans

In an uncertain environment, the simple message for in-plants is to define your value, outline your benefits, share the consequences of alternatives and communicate. Now is the time to play some offense!