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Publisher financial planning

Publisher financial planning. Liz Ferguson Associate Publishing Director Wiley-Blackwell liz.ferguson@wiley.com. Outline. Annual planning cycles Fiscal (corporate) Calendar (title/society level) Performance targets and monitoring Three planning case studies Backlist pricing

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Publisher financial planning

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  1. Publisher financial planning Liz Ferguson Associate Publishing Director Wiley-Blackwell liz.ferguson@wiley.com

  2. Outline • Annual planning cycles • Fiscal (corporate) • Calendar (title/society level) • Performance targets and monitoring • Three planning case studies • Backlist pricing • New journals • Society contracts

  3. 1. Annual cycles

  4. Context • 1500 journals • 700 society relationships • Diverse revenue streams • New products • Emerging business models

  5. Fiscal year timetable

  6. Fiscal planning and reporting • Monthly management accounts • Quarterly projections • Quarterly full year re-forecasts • Year-end • Earnings releases to stock market • 3-year strategic plans

  7. The 3-year strategic plan • Aligned with business objectives • High-level backlist assumptions • (Society) contract targets • Acquisitions • New initiatives

  8. Calendar year timetable

  9. Society planning and reporting • Monthly income reports • Annual accounts • Budgets and forecasts • Pricing discussions • Scenario planning

  10. 2. Performance and monitoring

  11. External monitoring • Society audits • Stock market and stakeholders • Audit • SOXA compliance

  12. Performance targets • Annual growth expectations • publisher circumstance • product type and market • New business versus backlist • Diversification of revenue streams • Management of external costs • Contingency planning • Operations and cost structure

  13. 3. Planning case studies

  14. Principles of list pricing • Societies have ultimate decision making responsibility • Increases to be within reasonable range • Base rate increases should preserve the value of licensed arrangements • When possible, support growth and development of journals

  15. List pricing factors • External market conditions • Internal growth expectations • Society expectations • Impact of licensed deals • Historical commitments or plans • Current price points and sensitivities

  16. Management of list pricing • Global exercise at business unit level • Process begins in February • Consultation process on society titles finishes end May • Pricing of owned journals begins and ends in June

  17. Understanding the pressures • Then • Sales people talk with librarians • Editorial staff talk with societies • Now • Editorial staff (and societies through us) attend meetings with librarians • Sales people attend meetings with societies

  18. New journals • Increasing research output • Intellectual strength • Maintaining and growing market position • Support from the community • Internal support

  19. Supporting new journals • Major investment over 10 years • Editorial strength costs • Marketing costs • ‘Free’ for 2 years

  20. Evolutionary Applications • Online only • ISI-indexed in first year • Endorsed by two international societies • High usage • ALPSP Best New Journal 2009

  21. New society contracts • Highly competitive • Services matter, financial offer usually critical • Structure of financial plans vary hugely • Projections vary widely

  22. Financial requirements • Some specify parameters • Nature of arrangement • Editorial stipends • Signing bonuses • Guaranteed income

  23. Financial offer • Business plan prepared by commissioning editor • Revenues • Costs • Structure of offer • Marketing and sales involved • Commercial finance review • Authorisation required

  24. Conclusion • Reporting never ends • Planning involves many business functions • Complexity is increasing • External stakeholders have a strong voice

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