President and CEO Scott Macdonald emphasizes company’s stability amid distribution, digital changes

Zondervan’s new leader has had a swift introduction to the challenges facing the Christian publishing giant in a changing industry.

Within days of being named president and CEO in May, Scott Macdonald, 54, was speaking to media and other industry leaders about the closure of the company’s warehouse, a possible move and the sale of an online community it had operated for three years.

After two months in the interim role, Macdonald was announced as the permanent successor to Maureen “Moe” Girkins—whose contract was not renewed by the Grand Rapids, Mich., company in March, after three years in charge. 

Macdonald had joined the company as interim general manager of its online community for churches, The City. That social network for churches was sold in May to software company ACS Technologies, with 11 of its 12 employees being offered jobs by the new owners.

A further 75 of Zondervan’s 325 staff are to go by July 2012 when distribution of its books will be moved to printing company RR Donnelley as part of a new agreement between the printer and Zondervan’s parent company, HarperCollins. 

To be phased in this fall, the move that will see the closure of the Zondervan warehouse is part of a reorganization that will lower costs and increase the speed of products to the market, said HarperCollins.

Writing to leaders of CBA and the Evangelical Christian Publishers Association about the move, Macdonald said that the “painful” shift was due to changing consumer buying habits and the growth in digital products.

“Be assured that this change does not signal trouble or instability for Zondervan,” he told them. “These changes are necessary for Zondervan to continue to remain relevant and compete in this ever-changing landscape. This will allow us to better focus Zondervan’s people and financial resources on serving the Christian market with great products.”

Key contact points for CBA customers, including sales and customer service, will not change, Macdonald said. “This relationship will also enable us to achieve broader distribution and begin to print on demand to get products more quickly and cost-effectively into the hands of our customers.” 

The timeline for the warehouse closure takes into account the forthcoming end of the lease, next year, on Zondervan’s headquarters—which could also mean a relocation. The company was looking at other options but would remain in Grand Rapids, where it was founded 80 years ago. “This is our home,” Macdonald told Christian Retailing.

The City had been successfully incubated at Zondervan, he said—now serving around 600 churches and 200,000 individuals—but needed different owners to “take it to the next level.”

Macdonald said of his leadership appointment: “I feel like God has had me on a journey right to this place where I am right now.” His business career included serving as president of franchise group Lemstone Christian Stores from 2004 until its acquisition by the Parable Group in 2007. He then was in management with human resources and payroll software company People Strategy in Wheaton, Ill., before joining Zondervan late last year.

Macdonald said that he believed that his previous Christian retail experience—during which time he was a member of the CBA board—was “a significant benefit.” He added: “We’ve probably said for years now that a little bit more than half of our business is through the CBA channel. That has not changed. It’s a very important and very significant channel for us. 

“It’s very important for me and us to understand how do we work with those retailers and meet the needs of their consumers and help them as their marketplace changes and adapt going forward.”

The moves with The City and future distribution would help Zondervan focus on its core publishing business, Macdonald said. “In the important points, Zondervan hasn’t changed at all. Culture, values, mission have not changed. At the foundational level, things are very stable. 

“That said, the environment we live in has changed significantly and continues to change,” he added. “We’ve got great authors; that hasn’t changed. We do have to learn and adapt and move the business in a way to bring the content of those authors into the market in the way people in the market want to consume that content.”

HarperCollins continued to give Zondervan “the reins and the room to run the business,” Macdonald said. “They know that we understand this market better than they will, and we’ve got lots of latitude to run and build the business in the right way.”

Macdonald’s appointment was the second leadership change at the top two Christian publishers within a month. In April, Mark Schoenwald, 49, took over as CEO at Thomas Nelson from Michael Hyatt—who remains chairman of the board. Schoenwald was previously COO and president, a title he retains.

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