Specialty Graphic Imaging Association Digital Printing & Imaging Association
	Executive Summary February 2006

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Managing for Success

It’s happening in successful businesses throughout the membership structure. Old business models are being thrown out and new ones are being put in place. Printers, sign makers and photo houses are becoming solution providers using a variety of management techniques to improve production controls and minimize overhead.

Good management is critical to the transition. In fact, good management may well be the most important company characteristic that separates the successful solution providers from the rest of the pack. The Centre of Economic Study and McKinsey completed a study in 2005 rating the management quality, as well as the success rates of 700 manufacturing companies. Then they compared the management ratings to the success rate to determine management’s effect on success.

The Centre of Economic Study and McKinsey found a strong correlation between the better managed companies and their rate of success. The companies where managers could effectively implement systems such as lean manufacturing, and distribute decision-making ability throughout the organization were better at adjusting to a changing marketplace and maintaining success.

For specialty graphics producers, the need for effective management is stronger than ever. While effective management touches the entire organization, here are two key areas where good management is needed:

The first is systematic throughput. A super-efficient production scheme will pay big dividends as image quality becomes less of a factor among competitive solution providers. Digital imaging technologies are leveling the playing field in terms of image quality. As image quality becomes commoditized, the difference between competing solution providers will be in the management of throughput and customer interaction.

To see an example of a printing sector wrestling with commoditized image quality, look at the commercial lithographic industry. For most litho projects, quality levels are easily established and thus removed from the competition. A lithographer competing on quality alone will find it rough going in today’s marketplace.

The second area is maximum per-customer value. Good management is expanding effective customer interaction to maximize per-customer return.

How valuable are you to your customers? Not an easy question to answer. We realize that solution providers need to add value for their clients; but how? And how much will it cost you to provide added value?

With skilled management, the successful companies are finding answers to these questions. They are increasing their company’s value in the eyes of their customers.

Well-managed systematic throughput and maximized per-customer value are two important areas where quality management will play big. SGIA continually provides up-to-the-minute resources to help you hold the management edge throughout your business.