By his own admission, during his decade at the helm of the British Printing Industry Federation, Michael Johnson was famed for his no-nonsense approach to business – usually other people’s. In his final interview as chief executive, the former Royal Navy Commodore offers an insight in to his highs and lows and how, after 10 years, his passion for, and commitment to, print is stronger than ever.

Darryl Danielli: What are your thoughts after a decade of heading up the BPIF?
Michael Johnson: When I look back I think two things, firstly: Christ, where has 10 years gone? And then: how the hell have they not found me out? I call it my bipolar decade. It’s been one of unbelievable highs, immense lows and everybody trying to take the bloody medicine, the medicine not having any effect and then suddenly the future’s really positive. As a result though, I’m extremely optimistic about the sector and the way that my members and the industry at large have adapted to the tough market conditions. There are plenty of inspiring stories and a lot of them are family-owned businesses that have learned to understand and adapt their businesses and you just think ‘good on you’, because they’re setting the bar high and the bar just gets higher every year. Owners and leaders that can’t manage their companies just flounder.

DD: You must have visited hundreds of firms in your tenure, were they all inspiring?
MJ: I stopped counting at 1,800 – I’ve visited 50 in the past two months alone. I have to say in the past 10 years there’s only really been two companies that made me want to slit my wrists. I just knew they were arrogant, they weren’t listening, and it was just about them and not the staff. You know instantly when you walk into a company whether it’s a good business or not, and maybe I’m too optimistic about everybody. I have to say though, that as far as the membership goes I always came away with a good feeling. There were times with [the old] Butler & Tanner that were a worry, and Mike Dolan [of Media & Print Investments] was a real pain, those were nasty moments. But the vast majority were inspiring.

DD: So what do you think is the single biggest challenge facing the print sector?
MJ: I think the industry needs to talk itself up more. It does some amazing stuff and it needs to shout that from the rooftops.

DD: On a more practical note, is there one thing that a typical print firm could do better, based on your experiences?
MJ: One thing? I could tell you 10 just off the top of my head.

DD: What’s the single most important then?
MJ: I’m still vexed that so many do not have a true handle on their cost structure. So how the hell do they know the cost or value of anything? You’ve got to understand your costs, that’s where everything should start. I’m quite rude sometimes and feel obliged to tell people how it is.

DD: You are known for being direct. Have you had any awkward moments when you’ve spoken your mind to members?
MJ: No, because I’ve been around too long to make that kind of mistake. I’ve commanded frigates and squadrons and you have to be direct. I’m just straightforward, not a bully – they always know I believe in them and what they’re doing. There was one company, they’ve gone bust now, that I really hated simply because the owner was so up himself and he got his fingers burned and I was thrilled, he wasn’t a member. But the business was all about him and he treated people badly.

DD: That raises an interesting point, what if he had been a member? Do you think the federation should be selective?
MJ: Membership is open to everyone; it has to be because our job is to help the industry at large. We do have rules though, certainly on pre-packs, which is causing us a bit of angst. There are two members who pre-packed fairly recently, and that’s £20,000 in fees gone right there. They would love to come back in, but we don’t believe in pre-packs. We have to stick to our principals.

DD: That must hurt financially, especially in light of the number of business failures in the past few years, how are the federation’s finances holding up?
MJ: The provisional numbers came in yesterday and we’re in pretty good shape. I think we’re also going to win £6m back in VAT on membership subs, going back to 1974. We’ve been fighting it for three years and it’s been to a tribunal and there’s an optimism that we’ll get the money back – which will give the federation a springboard to do some of the things we really want to do. We haven’t won it yet, the HMRC is fighting, but it’s on the horizon.

DD: What have been the biggest challenges?
MJ: Moving the mindset into the cross-media world. Those that have already ‘got it’ are outshining everybody else. It’s about being customer driven. To put it into context, 75% of the £14.3bn that the industry generates is in manufacturing, 25% is in the value-added services, things like warehousing, distribution and fulfilment and so on and that’s going to flip in the next decade to around 50/50. People have dabbled in online media; yes, it’s still a threat, but it’s not eroding us as much people think it is, so we are in a pivotal position to exploit the opportunities. There are challenges, but we should focus on the opportunities.

DD: I guess that was the raison d’être behind Dotgain. What happened there?
MJ: Because we didn’t have the £2.5m that Vision in Print (VIP) had from government [to launch], we had to find some money to resource it. We had the event in November and we’re building tools to analyse websites, we can now look at how to grow business strategically and we’ve just formed a Cross-Media Special Interest Group, so will be able to carry on the conversations. Informa was considering launching a cross-media show this year, but have pushed it back to 2012 – wrong move. We’re already at least a year behind. Standing still is not an option.

DD: So is Dotgain dead now?
MJ: Dotgain was going to be a standalone organisation that would embrace agencies, brand owners, etc, so the principal was right, but we were too ambitious and we didn’t have the right skill set in the organisation to manage that at the time. We invested in a number of things for Dotgain, but we had to cut back and it’s now the Cross-Media Special Interest Group. We will continue the conversations, but I’m absolutely optimistic that in five or 10 years time you will see the emergence of something similar. Having said that, if you’ve got money, you can make things happen – which is what we did with VIP.

DD: And VIP must rank as one of your proudest achievements?
MJ: When you look at the industry 10 years ago, in many instances companies couldn’t [achieve the change required] on their own. That’s why we hired [VIP] engineers to work with them, and they’re doing it up and down the country. That was the decade of turning ourselves around from being the laggards of Europe to actually becoming productivity leaders. This is not fanciful rhetoric, it’s a fact; we’re admired across Europe. We’re admired for our relationships with the unions too, which is pivotal to boosting productivity. The Germans still don’t speak to their trade unions. And that’s why we created the Partnership at Work (PAW) agreement with Unite, built on the trust between [Unite assistant general secretary] Tony Burke and I. It was a true partnership, but it’s not needed any more. We don’t have a National Agreement anymore, why? Because everyone can stand on their own two feet and for those that are having difficulties we have a Plan B: we will help in staff negotiations, we will give companies all the data that we would have under the National Agreement, but we will do it on an individual basis. So as an industry, we’ve grown up, and we didn’t do it with rivers of blood.

DD: So you think that Partnership at Work’s time has passed then?
MJ: Absolutely. It was always the middle ground, but it set out clear guidelines. Still, the average pay packet in print has gone down by 11%, mainly because of cuts in overtime resulting from the economic challenges, but that’s still a major reduction. I hope that a second draft [of PAW] will ensure people do not lose sight of what it gave them, but in its present guise I think it’s no longer relevant.

DD: Could the same be said for the BPIF itself or do you think industry bodies like the BPIF still have a place?
MJ: Every flourishing industry needs a strong trade body; we’re the pivotal organisation for the sector in government and Europe.  The BPIF is really the only one set up to make a difference, not decry the others, but they just don’t have the same resources to drive fundamental change. It’s also worth remembering that our members are, on average, two and half times more profitable than non-members. So yes, the BPIF does have a place and it’s one that is critical to the future of the industry.

DD: But the BPIF has had to cut its cloth in line with the industry, so it must be difficult to maintain a role as the industry champion?
MJ: Of course it’s difficult, but we are doing it and we will continue to do so. We had 140 people in the BPIF in 1998, we’re now down to 62, but our output is 40% up. When I joined we had 40 products and services, now we’ve got well over 200, which we’ve built to give our members the tools to get them where they need to be. On the manufacturing side of the industry we’re in pretty good shape as being efficient and competitive, certainly compared with Germany, for example. But everyone has been hit by falling volumes, that’s a given. We’ve lost £1bn of print; there was around £15.3bn of print when I arrived, it’s now around £14.3bn. We’ve also lost around 60,000 people. We’re moving inexorably towards the creative industry sector, where there’s a convergence in how information is relayed and we’re in the perfect position to be the conductor of that orchestra. We have the tools and the knowledge of how to communicate because we’re a multifaceted, digitally orientated industry.

DD: You said earlier that it has been a decade of unbelievable highs, many of which you’ve touched on, what were the lows?
MJ: There have been some dark periods, for example how the hell was I going to reconcile our pension deficit? I was paying £500,000 a year on £6m turnover and we were running out of money. It was all about doing the little things; we decided that we were not going to abandon our pensioners. Another low period was when I went a bit too far and we posted a £900,000 loss [in 2008], that was a challenge. Making people redundant is never a good feeling, but in all that time there was only really one person that was really angry.

DD: What’s next for you?
MJ: One of the things I’d like to do is offer myself to members. I’m not going to quit [the industry], I’ve got all this knowledge so I want to go and help companies for one or two days a month and help them get to where they want to be.

DD: You mean non-exec roles at print firms?
MJ: Yes, that sort of thing.

DD: What will you take way after 10 years?
MJ: It’s been a huge privilege and my enthusiasm for the industry is undiminished. If I can see it and I’m an outsider, then why can’t others see that we’ve got a great industry, why don’t they just believe a little more. But it’s a good time to leave; Kathy [Woodward, who became chief executive of the BPIF on 1 June] is a powerful lady who knows her mind and has really clear views and I think she’ll bring zest and drive. And she’s also one of ‘them’ – she comes from a print background and has transformed training with Kay Smith. But I’ve cleared the decks for Kathy to move forward. Where I inherited a basket case, she’s inheriting a strong federation. I’m handing over to somebody who’s DNA is in the industry, to have another outsider come in was not an option.

DD: A six-month handover seems like an awfully long time though?
MJ: Bloody long. It could have been difficult, but it hasn’t been. And that’s why I’m leaving a couple of months early, but I’ve reached a natural end and now Kathy has the opportunity to lead the Excellence Awards, the All Party Parliamentary Print Group, the chief executives’ conference, etc. So I’m done.

DD: What advice would you offer Woodward?
MJ: None. Look, you don’t offer any advice. It’s like taking over a warship; you just look them in the eye, shake them by the hand, offer them a gin and tonic and let them get on with it. Kathy doesn’t need to be told; I had no one to tell me when I came here. We do come at things differently and I think that’s a good thing and I’m absolutely confident that she’ll take the federation forward. Look at her track record, she’s a thoroughbred and this industry is in her blood.