Tuesday, January 02, 2007

Open for Business outside the Pan Bookshop Fulham Road

This is the scene outside the Pan Bookshop. It wasn't just the trees which were selling like hot cakes. The list below is their top ten books sold by volume in the last four weeks of the 2006.It doesn't tally very well with the bestseller lists in the papers but neither, I guess, does the clientele.

1. Dangerous Book for Boys - Conn and Hal Iggulden

2. Previous Convictions - A.A.Gill

3. Suite Francaise - Irene Nemirovsky

4. North Face of Soho (volume 4 of Unreliable Memoirs) - Clive James

5. Amo Amas Amat - Harry Mount

6. Debrett's Etiquette for Girls - Fleur Britten

7. God Delusion - Richard Dawkins

8. The Kensington Book - Carolyn Starren

9. Made in Italy - Giorgio Locatelli

10. Daughter of the Desert (Gertrude Bell) - Georgina Howell

And the manager wanted me to mention two distinguished also rans:

Sorrows of the Moon - Iqbal Ahmed -- privately published in 2004 but sold 100 copies in the shop this year.

Concorde - Frederic Beniada - at £40 this was in the top five revenue generators for the shop.

I have deliberately not linked any of these titles in order to encourage you to visit (at 158 Fulham Road SW10 9PR) or order by post or e-mail (panbookshop@btclick.com) from the Pan Bookshop.

On the blog transparency front I can now report that up to 31 December Macmillan has earned $109.73 from the ads carried on this site. The cash will apparently be arriving on 5 February, so look out for a major splurge.

And finally last week I wrote about Trinity, Cambridge, my entrance interview and subsequent undistinguished career. Someone has sent me this photo of the intake of 1967 which has me just two rows below my fellow new boy Prince Charles. His university career wasn't much more distinguished than mine but he's certainly got more press coverage.

 

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 Monday, January 01, 2007

This blog has now completed a full year. In December we had 60,400 visits down from 63,375 in November (the effect of the holiday season I hope rather than anything sinister). This brings the total for the year to 399,947, tantalisingly close to a milestone. With the statistics software I have I cannot tell how many of these are unique, nor how many are from Macmillan employees. Maybe next year our IT department can come up with a zero-cost way of answering these questions.

Nonetheless I am amazed and gratified by the volume of visitors and the amount of (usually) kind and constructive correspondence. The paucity of comments is a shame but I guess people have better things to do than populating this blog. I also wish more Macmillan people would contribute. There are some regular commentators, some of whom I've enjoyed arguing with. There have been only two comments which I've had to edit away for reasons of taste. It's worrying that the entries which generate the most and the most heated debate are those concerned with the British book trade and the relationship between publishers and independent booksellers. I accept that there are important issues here. I cannot accept, however, that these are more important than the impact of the digital revolution on publishing as a whole or the need to develop new structures for publishing to take account of globalisation and new reader tastes.

And while on the subject of literary taste I came across the following quote in a BBC report.

'It entertains, as sport must do, but it is without heft, or any substance, it is like a book picked up at an AH Wheeler & Co bookstand at Calcutta's Howrah Station and discarded on arrival in Delhi.'

I do not know the bookshop in question and I have never been to Calcutta. The sport in question is also irrelevant. You know exactly what the writer is trying to convey. The sport in question is, of course, cricket (the one-day version) and the journalist is Rohit Brijnath. His style of sports writing is hardly ever found in the British media. It is correct, old-fashioned English with falir and substance. It is discoveries like this which make me so enthusiastic about our investments in India. This is not a just a country for outsourcing or manufacture. This is a place of creativity, insight and literary adventure. Fortunately it is also complex and its rules of engagement will bamboozle all but the most determined would-be investors.

Macmillan has been part of Indian publishing since 1892 and we intend to make 2007 the best year ever with Macmillan India leading the rest of the group in growth and innovation. January will see our Gurgaon-based MPS Technologies launch of BookStore for the German Boersenverein and for Macmillan companies in the UK and Australia. More customers and more functionality are lined up for implementation throughout the year as we build on our lead over competitors. ScholarlyStats goes from strength to strength as librarians around the world discover the efficiencies and cost savings of using the system. On the text processing end of the business we are investing heavily in enhanced systems for all our clients and have built formidable resources for book as well as journal activities in Charon Tec and ICC Macmillan. On the publishing side we shall be publishing more and better than ever and investing in new markets in education both school and college, scholarship and science, Internet, fiction and non-fiction, in English and the vernacular languages. It will take the all the ingenuity and efforts of our 3000 people in India to make all this work and I have no doubt they will succeed.

And as a change from the usual pictures of the Taj Mahal here's my favourite spot in India the interior of the Cochin synagogue - a very strange and wonderful cultural mix.

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 Sunday, December 31, 2006

It's a grey day here in London as 2006 comes to an end. I've been back through a few of the emails people have sent me during the year to share with you.

When you're in deep SHIT, say nothing, and try to look like you know what you're doing. 

Addressed to me personally.

The Salvation era is a phase when there is a reorganization and liberation of humanity....(blah blah ed).

AS THE KING OF THE WORLD, IN THE INTEREST OF ALL HUMANITY, I HAVE ISSUED AND AM ISSUING DECREES, INCLUDING EDICTS AND PROCLAMATIONS TO PROVIDE NOURISHMENT TO ALL PEOPLE,

AND AM APPOINTING THE KING OF THE WORLD TO THE POSITION OF CHAIRMAN OF MACMILLAN, AND AM APPOINTING THE KING OF THE WORLD TO OTHER LEADERSHIP POSITIONS AS REQUIRED, AND AM ISSUING OTHER PROCLAMATIONS.

My executive directives as Chairman of Macmillan are as follows:

1) The opening of free food cafeterias all around the world.

2) At least a 200% increase in all pensions and salaries.

3) Improvements in shelter including more free shelters.

4) Construction of solar power plants.

5) Improvements in health care.

6) Freedom.

7) Additional humanitarian actions.

Cordially,

Steven Translateur, King of the World

A genuine letter from the UK Inland Revenue to a tax-payer.

Dear Mr Addison,
 

I am writing to you to express our thanks for your more than prompt reply to our latest communication, and also to answer some of the points you raise.I will address them, as ever, in order.

Firstly, I must take issue with your description of our last as a "begging letter". It might perhaps more properly be referred to as a "tax demand". This is how we, at the Inland Revenue have always, for reasons of accuracy, traditionally referred to such documents.
 

Secondly, your frustration at our adding to the "endless stream of crapulent whining and panhandling vomited daily through the letterbox on to the doormat" has been noted. However, whilst I have naturally not seen the other letters to which you refer I would cautiously suggest that their being from "pauper councils, Lombardy pirate banking houses and pissant gas-mongerers" might indicate that your decision to "file them next to the toilet in case of emergencies" is at best a little ill-advised. In common with my own organisation, it is unlikely that the senders of these letters  do see you as a "lackwit bumpkin or, come to that, a "sodding charity". More likely they see you as a citizen of Great Britain, with a responsibility to contribute to the upkeep of the nation as a whole.


Which, brings me to my next point. Whilst there may be some spirit of Truth in your assertion that the taxes you pay "go to shore up the canker-blighted, toppling folly that is the Public Services", a moment's rudimentary calculation ought to disabuse you of the notion that the government in any way expects you to "stump up for the whole damned party" yourself. The estimates you provide for the Chancellor's disbursement of the funds levied by taxation, whilst colourful, are, in fairness, a little off the mark. Less than you seem to imagine is spent on "junkets for Bunterish lickspittles" and "dancing whores" whilst far more than you have accounted for is allocated to, for example, "that box-ticking facade of a university system."

 

A couple of technical points arising from direct queries:


1. The reason we don't simply write "Muggins" on the envelope has to do with the vagaries of the postal system;

 

2. You can rest assured that "sucking the very marrows of those with nothing else to give" has never been considered as a practice because even if the Personal Allowance didn't render it irrelevant, the sheer medical logistics involved would make it financially unviable.
 

 

I trust this has helped. In the meantime, whilst I would not in any way wish to influence your decision one way or the other, I ought to point out that even if you did choose to "give the whole foul jamboree up and go and live in India" you would still owe us the money.


Please forward it by Friday.
  

Yours Sincerely,

 

H J Lee Customer Relations

 

And finally from the archives of Qantas.

 

Happy New Year everyone.

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 Saturday, December 30, 2006

This press release arrived yesterday morning in the USA.

Advanced Marketing Services Files Voluntary Petition under Chapter 11 of United States Bankruptcy Code

Company Will Use $75 Million Loan Agreement to Fund Ongoing Operations; Customer and Publisher Service Will Not Be Impacted by the

Filing

SAN DIEGO--(BUSINESS WIRE)--Dec. 29, 2006--Advanced Marketing Services, Inc. (the Company) (Pink Sheets: MKTS), a leading provider of customized merchandising, wholesaling and contract distribution services, announced today that it has filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in United States Bankruptcy Court for the District of Delaware. The Chapter 11 proceeding does not include the Company's international subsidiaries in the United Kingdom, Mexico and Australia, and their operations will not be affected.

The Company also announced that, in conjunction with the filing, it has entered into a loan agreement for $75 million in Debtor-in-Possession (DIP) financing from Wells Fargo Foothill, Inc., subject to court approval. The DIP financing should provide sufficient liquidity to meet the Company's ongoing operating needs during the proceeding.

During the past few months, the Company explored a number of alternatives to strengthen the Company's financial base and resolve past legal and regulatory issues. Despite making some progress, the Company was unable to secure new financing and the current loan facility, which is used to finance the Company's operations, will not be extended beyond December 28, 2006.

"This move will permit AMS, with its investment banker, to continue to pursue strategic alternatives," said Gary M. Rautenstrauch, President and Chief Executive Officer. "Additionally, Chapter 11 protection will enable the Company to continue to conduct business in the normal course, make payments to vendors going forward and continue delivering quality service and products to customers."

Forward-looking statements in this public announcement are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements that involve risks and uncertainties, including the following statements:

The DIP financing should provide sufficient liquidity to meet the Company's ongoing operating needs during the proceeding; and Chapter 11 protection will enable the Company to continue to conduct business in the normal course, make payments to vendors going forward and continue to deliver quality service and products to customers.

Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the following: The DIP financing is subject to certain terms and conditions. The Company's failure to comply with those terms and conditions could result in a default under the DIP financing loan agreement and, consequently, insufficient liquidity to meet the Company's ongoing operating needs during the proceeding.

What this means is that there is a possibility that all the efforts to publish books successfully - to work with authors to help create the right book; to design and produce it well; to generate publicity and clever promotional tricks to bring people into retail outlets; to ensure continuity of stock; to generate enough revenue and profit to continue to invest - will have been to no avail as the annual profit disappears into a bad debt black hole.

From the outside, publishing risk is seen to be all about making the right authorial bets. This is, of course, still important but even with the best authors there are still many nightmarish risks. Decisions about advances, marketing spend, size of initial distribution, legal, country economics, and last but not least customer bankrupcy.

It's a tough old world out there in this business. US trade publishers were, in general, showing a reasonable result for 2006. Two days from the end of the year they may have to revise their statements.

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 Friday, December 29, 2006

This letter was published in yesterday's Times.

Sir, It is time for the Society of Authors to discuss with the Publishers Association the payment of huge sums to celebrities, television reporters, sportsmen and politicians, whose books prove to be flops. Advance fees, which should be going to bona fide authors and young literary people who need financial help as they attempt to enter a difficult profession, are being flushed away. There should be a limit on these advances, and earnings should come only from sales.

British publishers appear to be bent on ruining English literature with this profligacy and poor judgment.

PETER KINSLEY
London SE15

I don't know Peter Kinsley and I don't know whether or not he is a writer, publisher, or reviewer. I sympathise with his irritation that large advances distort the market and draw funds away from young (and indeed not so young) writers. At Macmillan we have two experiments running where we pay no advances but do pay very decent royalties - Macmillan Science  and Macmillan New Writing. We do, of course, pay advances and sometimes big ones (and sometimes to 'celebrities') in other parts of the organisation.

The problem with the Kinsley letter is his proposed solution and the consequences of the Society of Authors and the Publishers' Association meeting to limit advances.

1. Such a meeting is probably illegal and the participants might end up in jail for collusion (arguably a reasonable place for some publishers to be but not a first choice for most).

2. If 1 could be fixed here would the limit be set and who would decide who was a bona fide writer as opposed to a celebrity?

3. If 1 and 2 could be fixed who would monitor compliance and what sanctions would the group be granted? Can you imagine the Society of Authors discovering that a publisher had paid an author more than the stipulated limit and then having to take the publisher to court for being kind to authors?

4. If 1,2, and 3 could be fixed what would happen to authors and publishers who are not members of their respective asssociations? Presumably they would be free to negotiate whatever terms they like. This would defnitely lead to the demise of the two associations as their members deserted.

5. If 1,2,3, and 4 could be fixed what would we do about foreign authors or deals struck in foreign lands (e.g. USA)? Presumably we'd have to ensure the arrangement was global and would therefore require global monitoring and compliance.

6. If 1,2,3,4 and 5 could be fixed who would ensure compliance? I imagine we'd have to call on the services of the United Nations which would divert their attention from trying to solve the problems of the world.

QED

Incidentally, it's strange that people actually think publishers are bent on ruining English literature and that they deliberately exhibit poor judgement and profligacy. We're a pretty useless lot but I promise everyone it's not deliberate - it's just another unintended consequence.

PS I see that Susan Hill has also picked up on this letter and written a much better piece than this one. Do check it out.

And because it's the holiday season here is  photo of our team in Argentina wishing everyone a very happy new year. Please note the very smart white van in the background.

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 Thursday, December 28, 2006

At various times during the Christmas break I've been catching up on back issues of Publishers Weekly which is edited by the often controversial Sara Nelson. The magazine has improved significantly over the years and its banner now claims that it is 'The international voice for book publishing and bookselling'. It is definitely more international than before but some of the differences between US and British culture are still apparent.

It was great to see in December 11 issue that Jane Friedman was chosen as 'Publishing person of the year'. Given her excellent track record and her high standing in the industry this seems completely appropriate. PW covered the award well and I wasn't suprised to see that their excellent ad sales team had managed to 'persuade' a significant number of HarperCollins suppliers to take out sensibly congratulatory ads. I spotted Verso Advertising, Arvato, Command Web Offset, Quebecor, and Bowater all of whom deserve this further plug for their companies.

Unfortunately the ads don't appear in the online version and so I cannot show you the full page ad on page 5 which knocked me sideways and got me thinking of the differences between the USA and Britain rather than the similarities. You'll have to imagine the typography - here are the words.

Congratulations

Jane Friedman

Our Leader

Our Friend

Our Inspiration

From all of us at HarperCollinsPublishers

I wonder, did the cost of the ad come out of the corporate PR budget or was there a whipround all staff to raise the cash? In the words of the great Dorothy Parker, 'Pass the sickbag, Alice.'

 

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 Wednesday, December 27, 2006

I did a Google blog search on Macmillan mainly to discover whether any of our own websites are running blogs themselves. I couldn't find any (except the brilliant Nascent from Nature) but I'm sure that was my poor search strategy. There must be more.

However, the search did throw up a number of blogs from writers or commentators on Macmillan New Writing which we've discussed here from time to time. For a tiny upstart imprint MNW has certainly made waves, at least in the blogosphere and progressively elsewhere too. I don't think we've cracked the problems associated with publishing new fiction but at least we've found one channel which has the possibility of being commercially sustainable whilst retaining publishing integrity. Here are three blog links worth checking out.

http://macmillannewwriterpart2.blogspot.com/2006/12/some-things-and-quick-thing-about-old.html

 

http://davidthayer.booksquare.com/archives/2006/11/09/546/

 

http://girlondemand.blogspot.com/2006/10/in-defense-of-macmillan-and-other.html

One other link caught my eye.

 

This is the second book from the writing team of Clare ('not just another Bridget Jones') Naylor and Mimi ('youngest director of development for a Hollywood production company') Hare. The book will be published at the beginning of March which gives all of you time to enjoy first The Second Assistant (if you see what I mean). And now I have to declare an interest. They're both friends of mine as well as being a great writing team. We all know that word of mouth is what makes books sell. Do yourself, your friends and the authors a favour - get whispering.

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 Tuesday, December 26, 2006

Although we publish a large range of business books in Palgrave Macmillan and in Pan Macmillan I must confess to a deeply-held scepticism about the whole area of business studies and management education. In the early nineties I enjoyed a wonderful twelve weeks attending the Advanced Management Program at the Harvard Business School.

It was a privilege to be there and I made a lot of friends, had a wonderful time, and deepened my understanding of American corporate executive dynamics. I also learned what I was really bad at. Top of my incompetence list was office space planning. I'll keep the rest of the list to myself. However, I wasn't convinced that the academic basis of the curriculum was really as rigorous as it might have been and I came away believing that common sense was probably the best way to run a business profitably.

It was therefore with some surprise that I came across the Stanford Business School's Bob Sutton and his 'Ten Things I Believe'. I think I believe them too.

1.    Sometimes the best management is no management at all -- first do no harm!

2.   Indifference is as important as passion.

3.    In organizational life, you can have influence over others or you can have freedom from others, but you can't have both at the same time.

4.    Learning how to say smart things and give smart answers is important. Learning to listen to     others and to ask smart questions is more important.

5.    You get what you expect from people. This is especially true when it comes to selfish behavior;   self-interest is a learned social norm, not an inherent feature of human behavior.

6.    Getting a little power can turn you into an insensitive self-centered jerk.

7.    Avoid pompous jerks whenever possible. They not only can make you feel bad about yourself, chances are that you will eventually start acting like them.

8.    The best test of a person's character is how he or she treats those with less power.

9.    Err on the side of optimism and positive energy in all things.

10. Work is an over-rated activity.

 

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