(Published June 1/97)

Now in his fifth month as head of GTC Transcontinental Group Ltd.'s extensive publishing arm, André Préfontaine admits that he's still in learning mode.

With a background almost entirely in newspapers rather than trade publications and books, it's neither surprising nor unexpected. His short term aim is to thoroughly learn the business. He was hired to add the dimension of strategic planning and execution, plus management discipline, to Editions Transcontinental.

"These are the key ingredients for success," says Préfontaine. "At Transcontinental, there are many forms of publishing, and a clarity of vision is needed to understand all the whos, wheres and whys. A company can't improvise or be all things at once. You need plans. You must choose, see where you can bring value, and see where management expertise can generate revenue for shareholders."

Transcontinental Publications is a $64 million business within GTC Transcontinental Group Ltd.'s total $1.1 billion. The Publications includes Les Affaires, Quebec's top business newspaper, several construction publications, and a raft of magazines, among which are La Revue Commerce, Affaires Plus Magazine, Le Bel Age, Good Times, Le Magazine PME, Hockey News.

Préfontaine heads the magazines, business papers and book publishing , but unlike his predecessor, Alain Guilbert, doesn't also handle Sodema telemarketing division.

"We're publishers of information of high value to our readers, no matter what medium, not call centre operators. I told Rémi (Marcoux, GTC chairman, president & CEO) that telemarketing should be put in a separate division so that we can focus and concentrate in the short term on our fundamental role as publishers," says Préfontaine.

Préfontaine didn't know Marcoux well, but when Transcontinental needed a new president, he found they shared a common approach to publishing management and development.

"I saw that I could make a contribution," Préfontaine says. "In the long term, I see where I can select areas of development and help Transcontinental become dominant in the areas we want to be. Our aim is to be dominant, or not play. We're not interested in being number two."

Magazine Challenges

Préfontaine has already identified two major challenges of today's magazine industry. The first is how to deal with the multiplication of magazines in Canada, which ties to his aim of Transcontinental magazines being the dominant player.

"There's a magazine launched every day in this country," he says. "It brings a fragmentation that threatens magazines aiming to grow. There has to be a rationalization. You have to be the biggest, the best."

The other challenge lies in the fallout from the World Trade Organization's interim ruling on split runs and the role of the government in contesting it. Préfontaine is concerned especially for the magazines in English Canada that could be threatened by cheap magazines from the US. that may be less interesting but can attract advertisers with lower costs. Collectively, he says, publishers must be sure that the government acts and protects Canadian magazines.

His concern is natural, considering that Transcontinental sees that development in French Quebec is limited and growth more likely to come from the English-Canadian and American markets. It already has Good Times Canada, Good Times USA, Hockey News and Canadian, the inflight magazine of Canadian Airlines International.

Of Transcontinental's current publications, he says. "We want to manage change, rather than change managing us. That means listening to readers and advertisers and evolving as required. Right now, the sports segment is doing well. Readers are committed. Hockey News has a higher circulation in the US. than in Canada, and we're looking at reader requirements and looking to see where we can do more in the sports sector.

"We're assessing areas where we can develop and offer value. We'll do our homework and execute carefully. Our aim is to build a credible and significant publishing organization. I devote 100% of my energies to that."

Personal Discipline

Not one to be either overly ebullient or overly discouraged, Préfontaine, 44, says he has the ability to stay calm amidst a storm and tries not to allow his own preferences to control his decision-making. A personal discipline shows in both his public and private lifestyle.

Lack of both time and interest leaves him devoid of a very active social life. He enjoys Asian and French foods as well as 'family' cooking, but checks what he eats and has no interest in heavy lunches. Admittedly an early bird (he gets to his office between 6 a.m. and 7 a.m.), he achieves his balance in life through his wife and family, he says.

My commitment is to take care of my family," he says. "It's important to give time, affection, love. I help my kids (a boy, 8, and a girl, 4) with their homework, and try to spend one-on-one time with them to show that they're important and really matter."

Employee Goals

At the office, where 350 people report to him, he tries to encourage a feeling of importance among employees by treating them courteously and creating an environment for them to achieve goals which may not seem reachable.

"I'm as demanding on them as on myself, but over the years I've seen that when you give people autonomy and trust and don't stand over their shoulder, they'll accomplish beyond what is expected," he says. "If you set clear objectives and don't invade, they'll know that and will achieve them. And sales people are the bread and butter of an organization. You must treat them well."

Préfontaine himself came to Transcontinental from a journalistic background. Born in Verdun, he studied literature at the Université de Sherbrooke and launched his career as weekend reporter at Sherbrooke's daily La Tribune, moving up through editorial positions over seven years to become managing editor. Joining Canadian Press in 1979, he held the positions of Parliament Hill French correspondent, deputy bureau chief, assistant to the president, vice-president marketing and managing editor before joining Le Droit as associate publisher and editor. Further moves took him to the Kingston Whig-Standard as director of operations, the Windsor Star as president and publisher, and Quebecor as vice-president of daily newspapers before joining Transcontinental.

"Coming from the editorial side gives a sense of commitment to content and the readers," he says. "There are not enough people with editorial backgrounds in senior executive positions in publishing companies."

Nor do women occupy a sufficient role in the publishing business, he says, although he rhymes off the names at Transcontinental. "It's a tough business for women, because it's so demanding. The conflicts between managing business and families are tougher on women, but we must make allowances, because they make a great contribution."

Viewpoints on Publishing

All forms of publishing interest Préfontaine, including the Internet, but says that Transcontinental is approaching the medium with caution.

"It's a main means of publishing, but we don't want to undermine the credibility and value of our printed material, and we're searching for ways to best use it," he says. "We want to assert a presence, but aren't interested in developing the technology ourselves. We don't want to be a bridge looking for a river. We'll get more involved as advertisers and readers require. We have the understanding, the talent and the people, and we'll do it in a profitable way."

In print media, while paper prices are lower than a couple of years ago, planning is difficult because "It's either a feast or a famine. We need a more stable environment in paper prices. When you do a business plan, you must insulate yourself from the impact of fluctuating paper costs."

"And every publisher dreams of doing without the Post Office. It's a love-hate relationship. While some features are good, the costs of distribution impact the margins of smaller publications."

For someone who's "still learning the business", Préfontaine is proving to be a fast learner.