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• Annual planning cycles– Fiscal (corporate)– Calendar (title/society level)
• Performance targets and monitoring• Three planning case studies
– Backlist pricing– New journals– Society contracts
1. ANNUAL CYCLES
Context
• 1500 journals• 700 society
relationships• Diverse revenue
streams• New products• Emerging business
models
Fiscal year timetablePlanning Reporting
Fiscal year start
May
June Year-end results
July
Aug
Develop 3-year strategic plan and budget
Sep Q1 results
Oct
Planning Reporting
Develop 3-year strategic plan and budget
Nov
Dec Q2 results
Submission and review of plan
Jan
Feb
Board approval plan
Mar Q3 results
Fiscal year end
April
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
The 3-year strategic plan
• Aligned with business objectives• High-level backlist assumptions• (Society) contract targets• Acquisitions• New initiatives
Calendar year timetablePlanning Reporting
Jan External accounts start
Title budgeting begins
Feb
Mar
Communicate pricing
April External accounts end
Finalise society pricing
May
Planning Reporting
Pricing of owned titles
June
July
Aug
Title level budgeting begins
Sept Forecasts updatedOct
Nov
Dec
Society planning and reporting
• Monthly income reports• Annual accounts• Budgets and forecasts• Pricing discussions• Scenario planning
2. PERFORMANCE AND MONITORING
External monitoring
• Society audits• Stock market and stakeholders• Audit• SOXA compliance
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
3. PLANNING CASE STUDIES
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
List pricing factors
• External market conditions• Internal growth expectations• Society expectations• Impact of licensed deals• Historical commitments or plans• Current price points and sensitivities
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
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
New journals
• Increasing research output• Intellectual strength• Maintaining and growing market
position• Support from the community• Internal support
Supporting new journals
• Major investment over 10 years• Editorial strength costs• Marketing costs• ‘Free’ for 2 years
Evolutionary Applications
• Online only• ISI-indexed in first
year• Endorsed by two
international societies• High usage• ALPSP Best New
Journal 2009
New society contracts
• Highly competitive• Services matter, financial offer
usually critical• Structure of financial plans vary
hugely• Projections vary widely
Financial requirements
• Some specify parameters• Nature of arrangement• Editorial stipends• Signing bonuses• Guaranteed income
Financial offer• Business plan prepared by commissioning
editor– Revenues– Costs– Structure of offer
• Marketing and sales involved• Commercial finance review• Authorisation required
Conclusion
• Reporting never ends• Planning involves many business
functions• Complexity is increasing• External stakeholders have a
strong voice
