Why Governance Still Matters for Small Publishing Operations

The Unseen Necessity of Governance in Small Publishing

In the world of publishing, “governance” often evokes images of corporate boardrooms, shareholder meetings, and complex legal frameworks, concepts that seem far removed from the passionate, often shoestring, operations of small and independent presses. For these smaller players, the focus is typically on the creative process, on discovering new voices, and on bringing unique stories to light. Governance, if it is considered at all, is often seen as a bureaucratic burden, a set of rigid rules that stifle creativity and slow down the nimble, responsive nature that is the hallmark of independent publishing. But this perception, while understandable, is a dangerous oversimplification. In an increasingly complex and competitive industry, strong governance is not a luxury reserved for the corporate giants; it is a fundamental necessity for the survival and long-term success of even the smallest publishing operations.

The Myth of the Benevolent Dictator

The prevailing myth in many small presses is that of the “benevolent dictator,” the passionate founder or editor who makes all the decisions based on their artistic vision and personal relationships. In this model, governance is informal, intuitive, and highly centralized. Decisions are made quickly, often on the fly, and the press is able to pivot and adapt with a speed that larger organizations can only dream of. The common misconception is that this lack of formal structure is a strength, a sign of creative freedom and a rejection of the corporate mindset. It is seen as a way to protect the artistic integrity of the press from the corrupting influence of commercial considerations.

The Operational Reality: A House of Cards

While the benevolent dictator model can work in the short term, it is a house of cards that is destined to collapse under its own weight. The reality is that even the smallest publishing operation is a business, with all the legal and financial responsibilities that entails. Without a formal governance structure, there is no clear line of accountability, no system for managing risk, and no mechanism for making strategic decisions. The founder’s personal biases can lead to poor editorial choices, and their lack of business acumen can result in financial instability. There is no succession plan, no process for resolving disputes, and no protection for the authors and other stakeholders who have entrusted their work to the press.

Where the System Breaks Down

The lack of governance in small publishing operations creates a number of critical failure points. Without a clear decision-making process, the press can become paralyzed by indecision or lurch from one crisis to another. The absence of financial controls can lead to cash flow problems, unpaid royalties, and even bankruptcy. The lack of a formal legal structure can expose the press to lawsuits and other legal challenges. And the over-reliance on a single individual creates a single point of failure; if the founder leaves, retires, or becomes incapacitated, the press is likely to fold.

Why Quick Fixes Fall Short

Many small presses attempt to address these issues with ad-hoc solutions and quick fixes. They might hire a freelance accountant to manage their books, or consult with a lawyer on a specific contract. But these are just band-aids on a much deeper problem. A tool is not a system. A freelance accountant cannot create a long-term financial strategy, and a lawyer cannot create a comprehensive legal framework. Without a holistic approach to governance, these quick fixes are ultimately just a waste of time and money.

Structural Thinking: Building a Foundation for Success

A more effective approach is to build a strong governance foundation from the very beginning. This does not mean that a small press needs to adopt the same complex corporate structure as a Big Five publisher. But it does mean creating a clear and transparent system for making decisions, managing finances, and mitigating risk. This could involve creating a board of advisors with relevant expertise, developing a clear set of policies and procedures, and establishing a system of checks and balances to ensure that no single individual has too much power.

The Implications of Inaction

The failure to embrace governance has serious implications for the future of independent publishing. It perpetuates a cycle of instability and precarity, making it harder for small presses to compete with their larger, more established counterparts. It also undermines the trust of authors, who are increasingly reluctant to work with presses that cannot demonstrate a commitment to professionalism and accountability. Ultimately, a lack of governance is a threat to the diversity and vibrancy of the literary ecosystem.

A Call for a More Professional Approach

The challenges of governance in small publishing are not insurmountable. By embracing a more professional and strategic approach, small presses can build a strong foundation for long-term success. This will require a shift in mindset, from a focus on short-term creative wins to a more holistic understanding of the business of publishing. It will also require a willingness to learn from the best practices of other industries and to adapt them to the unique needs of the literary world. The future of independent publishing depends on it.

Key Takeaways

• Good governance is not a bureaucratic burden, but a fundamental necessity for the long-term success of small publishing operations.
• The “benevolent dictator” model of governance is a house of cards that is destined to collapse.
• A lack of governance creates critical failure points in decision-making, financial management, and legal compliance.
• Quick fixes and ad-hoc solutions are not a substitute for a holistic approach to governance.
• Building a strong governance foundation from the beginning is essential for building a sustainable and successful publishing business.
• A more professional and strategic approach to governance is essential for the future of independent publishing.

Deeper Dive: The Anatomy of Governance Failure

To understand why governance is so critical, it's helpful to dissect the common ways in which its absence leads to failure. In a small publishing operation, the lack of formal governance often manifests in several key areas:

• Financial Mismanagement: Without clear financial controls, a small press can quickly run into trouble. This can range from simple cash flow problems to more serious issues like the commingling of personal and business funds, failure to pay royalties, and an inability to track profitability. The absence of a budget or financial plan means that decisions are often made in a vacuum, without a clear understanding of their financial implications.
• Legal and Compliance Risks: Small publishers are subject to the same laws and regulations as their larger counterparts. This includes everything from copyright and contract law to employment and tax law. Without a formal governance structure, there is often no one responsible for ensuring compliance, which can lead to costly legal battles and penalties.
• Operational Inefficiency: A lack of clear roles and responsibilities can lead to chaos and inefficiency. Without a formal structure, it's often unclear who is responsible for what, which can lead to duplication of effort, missed deadlines, and a general sense of disorganization. This can be particularly damaging in a small operation, where resources are already stretched thin.
• Reputational Damage: In the age of social media, a publisher's reputation can be made or broken overnight. A public dispute with an author over unpaid royalties, a poorly handled production error, or a simple lack of communication can quickly spiral into a public relations nightmare. Without a clear governance structure for handling these issues, a small press can quickly find its reputation in tatters.

Governance vs. Management: A Crucial Distinction

It's also important to understand the difference between governance and management. Management is about the day-to-day running of the business; it's about making sure that the books get edited, the covers get designed, and the orders get filled. Governance, on the other hand, is about setting the overall direction of the business and ensuring that it is operating in a responsible and sustainable manner. It's about asking the big questions: What is our mission? What are our values? What is our long-term strategy? Who are we accountable to?

In a small publishing operation, the lines between governance and management can often be blurred, with the founder or editor playing both roles. But it's crucial to recognize that these are two distinct functions, and that both are essential for long-term success. A well-managed press can still fail if it lacks a clear sense of direction and purpose. And a press with a strong governance structure can still fail if it is poorly managed.

Practical Governance for Small Presses

So what does good governance look like for a small press? It doesn't have to be complicated or expensive. Here are a few practical steps that any small publisher can take to build a stronger governance foundation:

• Create an Advisory Board: An advisory board is a group of volunteers who can provide expert advice and guidance to the press. They don't have any formal legal power, but they can be an invaluable resource for a small publisher. An advisory board can provide expertise in areas like finance, law, marketing, and distribution, and can also serve as a sounding board for new ideas and strategies.
• Develop Formal Policies and Procedures: Every press, no matter how small, should have a clear set of policies and procedures for handling key operational tasks. This includes everything from author contracts and royalty payments to editorial workflows and production schedules. Formalizing these processes can help to ensure consistency, reduce errors, and improve efficiency.
• Establish Financial Controls: Every press should have a clear system for managing its finances. This includes creating a budget, tracking income and expenses, and setting up a separate bank account for the business. It's also important to have a clear policy for paying royalties and to provide authors with regular and transparent royalty statements.
• Embrace Transparency: Transparency is one of the most important principles of good governance. Small presses should be transparent with their authors, their partners, and their readers about their operations. This includes being open about their financial situation, their decision-making processes, and their long-term goals. Transparency builds trust and helps to create a more collaborative and supportive community around the press.

The Long-Term Payoff

Building a strong governance foundation takes time and effort, but it's an investment that will pay off in the long run. A well-governed press is more likely to be financially stable, legally compliant, and operationally efficient. It's also more likely to attract and retain talented authors, to build strong partnerships with distributors and retailers, and to earn the trust and respect of its readers. In an increasingly competitive and challenging industry, good governance is not just a nice-to-have; it's a critical ingredient for success.