Regulars / Continuous improvement | 31Leading through a changing economyIn the changing market landscape, the importance of culture is a topic gaining attention, writes Paul Brauss Annual NA Label Growth16.0%y best experience in the label and packaging industry 14.0%included being part of a leadership team that expressed a 12.0%Mgenuine interest in learning how to manage the company 10.0%with a process-centric approach to continuous improvement and 8.0%cultural development. 6.0%The system expands on traditional manufacturing process 4.0%2.0%improvement by including every business process step upstream 0.0%and downstream in an organization. The results reduce cycle time, -2.0%improve process yield, and enhance productivity. Using a holistic -4.0%process approach as a central operation theme, we constructed -6.0%19941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022Pa strategic path forward with CI (continuous improvement) at its core, allowing us to manage through three recessions, emerging Annual Label Market Growthwith a stronger market position every time. The approach resonated with early career training and experiences and drove • The market is now 75 years old and resilientchampions for change using the techniques. This experience was • It has 12 years of consecutive growth not my frst, building a process-centric company. Before the label • It has grown in 26 of the last 28 yearsindustry, I worked in the material handling equipment market • It remains entrepreneurial, with an estimated 2,000-2,200 label in one of the most successful private equity market roll-ups. We converters in North Americasuccessfully rolled up 11 companies in nine years, and I consider Mergers and acquisitions have been consistent for about 15 it an excellent private equity investment story. I’ve also had four years, with an average of 27 converter acquisitions per year. Several other experiences with private equity that, while technically investments in the past year included companies on their second, successful, were not so great. third and fourth turn with private equity. At the same time, we are seeing supplier consolidation that will also impact the market for the next several years. The label and package printing market is not “Recent HR surveys identify that 43 the only segment that has evolved in this fashion. I believe Peter Drucker, the father of modern business management, identifed percent of working Americans have the consolidation period in a market segment by describing the buyout frms as providing a needed function in the industry. He considered looking for a new job”was clear to add then, and we can confrm today, that the proven The difference in approach was striking, and I see the same path forward for private equity ownership requires fnancial-based potential opportunity or pitfall in the label and packaging printing restructuring and capacity consolidation that can be traumatic to market segment as discussions increase about changing dynamics the employees. with private equity ownership in the sector. The customers will With private equity ownership now in its second, third and fourth determine the actual outcome, and the converter business leaders turn, we have to acknowledge the ownership perspective and will emerge with a story comparing ownership strategies. Rather leadership view today must become longer term than in previous than wait for the story to unfold, I’m hopeful the leader’s teams market consolidations – leading to a discussion on another key and owners will focus on the cultural elements that make the learning. Peter Drucker added to his statements that the most ownership opportunities suitable for the market, the company critical path to any company’s true success, regardless of ownership, and the employees, having experienced all sides of the ownership includes a culture managed for the long run. A company’s spectrum. If leaders are polarized but understand the need for governance needs to focus on long-term performance rather than cultural development, typically, it is because they are unsure of the short-term value fuctuations. I could not agree more. frst steps. The importance of culture is a topic gaining attention and a Attractive source for many conversations in the label and package printing The label and packaging printing market segment is attractive market today. The availability of the workforce, the dynamics of the on many fronts to the investor or the entrepreneur. The market pandemic, and the ‘great resignation’ have amplifed the discussion. requires solution creativity because of the dynamics of packaging Recent HR surveys identify that 43 percent of working Americans design and insight because of technology trends that can support have considered looking for a new job. Wages are at the top of the design trends. I started working in the industry 24 years ago the list for reasons an individual leaves a company. They included and continue to be impressed with the people who have devoted health care benefts as part of the pay equation. Employees next their careers to improving it. express the company’s need to provide a positive or uplifting work From a historical perspective, the attraction is easily seen: environment. It was clear that employers earn loyalty by helping Jul - Sep 2022