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Augsburg Fortress Changes Business Model

New Strategic Plan Focuses on Innovative Resources for Congregations and Higher Education


MINNEAPOLIS (November 7, 2008) — Augsburg Fortress, the publishing ministry of the Evangelical Lutheran Church in America (ELCA), today announced strategic plans to renew and strengthen its dual focus: creating innovative resources for the core needs of congregations and for higher education. Based on a year of intensive market research and business analysis, the strategic plan for the new direction of the company was presented to and unanimously approved by the Board of Trustees for Augsburg Fortress in its meeting held on October 24 & 25 in Minneapolis, MN.

Augsburg Fortress recognizes significant opportunities to increase the value of its relationships with congregations as well as colleges and seminaries, and is changing its core business strategies to provide the tools that today’s customers need in order to grow and change.

“In recent years, Augsburg Fortress has focused on providing materials to meet the emerging needs of today’s congregations, taking a lead among publishers of Christian resources by developing innovative web-based and print resources for use in congregational faith formation and worship, such as Here We Stand Confirmation, Sundaysandseasons.com and Akaloo,” said Beth Lewis, President & CEO of Augsburg Fortress. “With the intention to fully leverage our strengths, this strategic plan centers on continuing to vigorously invest in the creation of integrated ministry resource systems employing both print and web media. We are confident that this is the best opportunity for Augsburg Fortress to excel as a Christian Publisher, and we are excited for the new direction this company is taking.”

These redefined priorities presented the need for Augsburg Fortress to move away from some traditional publishing practices. The approved strategic plan includes the elimination of unsustainable portions of the business, including closing nine retail bookstores throughout the USA by May 1, 2009. However, Augsburg Fortress’ long-time commitment to providing industry-leading materials for congregations and higher education will be enhanced by a greater emphasis on innovative products and superior customer service.

Marty Stevens, Secretary for the Augsburg Fortress Board of Trustees and Executive Director of Enrollment Services and Student Life and Instructor in Biblical Studies for the Lutheran Theological Seminary at Gettysburg emphasizes that “Augsburg Fortress has always had a fine reputation for scholarship. Now, it is strengthening its relationship with the eight ELCA seminaries through its superb Seminary Hub initiative that gives students and faculty free access to all of their unparalleled web-based content for educational use. This is a wonderful gift with an annual value of $225,000 for future congregational leaders.”

To facilitate these strategic changes effectively and to realize significant efficiencies, Augsburg Fortress has invested in a comprehensive upgrade of its information technology infrastructure in the past year. Through this improved infrastructure, Augsburg Fortress will launch a more robust, integrated web shopping experience for customers in December 2008.

The new strategic direction requires that Augsburg Fortress reallocate some of its resources, including staffing realignment: the organization will eliminate positions in various locations while adding to sales, marketing, and technology staff in the Minneapolis headquarters. Over the next six months, 55 positions will be eliminated; 13 of them in Minneapolis and the remainder throughout North America.

”Augsburg Fortress is undergoing important strategic changes to focus our ministry and business – and some are very painful on a personal level as we say goodbye to wonderful colleagues,” said Lewis. “We are confident that, while difficult, these changes are necessary and will enable Augsburg Fortress to be a strong and responsive organization for the future. We are passionate about being a valued partner to congregational leaders and to faculty and students in higher education. So we have chosen to pursue a business model that best positions the company for growth and success, for the sake of our mission.”