Media Publishing and Organizational Management
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Transcript of Media Publishing and Organizational Management
HowdyCreating context for organizational changesin a rapidly changing media marketplace.
I’m really
thrilled you
could make it!
For AAN 2007Presented byTerry Garrett
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Innovation
Systematic process
Reinventing your organization
Today’s agenda
“Wow! You know that’s a really good word. I’m probably not the first person to use that term, but I’m sure (and Dwight can back me up on this) I’m sure I’ve used it more than any person on Earth.”
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POVGlobal Local
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Objective Reality
1. Media Ecosystem: advertising sales proportion
2. Historical Perspective: fluctuating status of media and innovations
3. Social & Political Changes
4. Demographic Changes
Two of the most important factors effecting media.
Global
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Media Ecosystem2005 Ad Sales (U.S.)
TV$68B
DailyNewspapers
$49B
Direct Mail$55B
Radio$20BYellow
Pages$14B
Outdoor$6B
Magazine$12B Other
Print$35B
Internet$12.5B
Alt-weeklies$550M
Business papers$4 B
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Rise of Newspapers and Magazines tied to a new socio-political reality 1873—1968.
Socio-political changes: Government as the progressive cause controlling the economy and direction of society.
1873 1968
Industrialization advancing on a major scale: mechanization of production processes, the rise of the city, vast expansion of communication facilities, the age of steel, harnessing electricity for light and power, invention of ‘invention’, population doubled and new business growth exploded.
Explosive growth period 1870 1900
# of Dailies 489 1,967Circulation 2.5 M 15 M
# of Weeklies 4,000 12,000
Why
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Rise of Newspapers and Magazines tied to a new socio-political reality 1873—1968.
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Socio-political changes: Government as the progressive cause controlling the economy and direction of society.
1873 1968
Industrialization advancing on a major scale: mechanization of production processes, the rise of the city, vast expansion of communication facilities, the age of steel, harnessing electricity for light and power, invention of ‘invention’, population doubled and new business growth exploded.
Explosive growth period 1870 1900
# of Dailies 489 1,967Circulation 2.5 M 15 M
# of Weeklies 4,000 12,000
Why
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19th Century Print Innovations
James Gordon Bennett founded the New York Herald (1835) on the premise that a newspaper had to:
1) have enough income to be editorially independent and
2) cheap enough to reach mass circulation.
He used the tech knowledge-bases of the the telegraph and high-speed printing.
He also relied upon the rise of mass literacy, which supported the notion of mass circulation.
Other innovations added mightily to accelerate the financial viability of periodical publishing: High-speed typesetting Stereotyped plates and webs replacing type-revolving presses Use of half-tone photographs Color presses Chemically produced wood pulp, which lowered the price of newsprint from $440 per ton to $42. Improved labor relations and localization of conciliation and arbitration procedures.
Innovations
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JGB, Jr.
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Contrast scale of newspaper economic power from 1890 to 2005
Joseph Pulitzer’s
New York World1890 Net income$1MAdjusted to 2005 Dollars
$822M
NY Times Group 2005Net Income
$253M
Google2005Net Income$1.46B2004 $399M
Created advertising to a mass audience.
Created bid pricing and self-admin advertising to
a targeted audience.
Innovation
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The Socio-political Divide of 1973
“The period 1968—73 is a divide fully comparable to 1873. Whereas 1873 marked the end of laissez-faire, 1973 marked the end of an era in which government was the “progressive” cause, the instrument embodying the principles of the Enlightenment.”
Peter Drucker 1989
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Ch-ch-ch-changes
Civil Rights movement
Women’s Rights movement
Environment movement
Shift to non-conformity
Economic upheaval (oil shock, floated dollar)
Socio-political DemographicBaby Boomers
Segmented database marketing
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Print media has been losing relative economic status for 50 years.
Electronic media has gained significantly.
1955 1980 2005
$10 B
$161 B
$25 B
$75 B
$100 B
N M TV R TotN M TV R Tot N M TV R Tot
Ad sales target to maintain relative share of GDP, or economic power status relative to 1955 level.
$50 B
Newspaper — N • Magazines — M • TV — TV • Radio — R • Total — Tot
Web ’06$17B
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“Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced.”
Peter Drucker 1985
Focus on creating systematic innovationwithin your company.
As a means of survival in disruptive times.
For future prosperity.
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Innovative perspective...
Half empty?
Half full?
Is there a third POV?
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An efficiency expert might say,
The container is too big for the contents.
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What Innovation Isn’t
Reliance upon the “flash of genius”
Being kissed by the muses
Rarely, is it ever...
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Innovation Do’s
Analysis of opportunitiesorganized and performed on a systematic basis.
Conceptual & perceptualmust satisfy the values and needs of users.
SimplicityFocused, singular objective that it satisfies a need, produces a result.
Start smallcapable of consuming little investment, few people, serve a small or limited market.
Aim at leadershipdoesn’t have to be a big business, but does need to strive to be a leader.
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DruckerismsThere is no such thing as a resource until someone finds a use for something and endows it with economic value.
Innovation changes the yield of resources.Defined in demand terms instead of supply, i.e. changing the value and satisfaction obtained from resources by a consumer.
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Black gold, Texas tea
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If necessity is the Mother of innovation,
then who’s your Daddy?
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Areas of Management Concentration:
OrganizationCulture
StrategicDevelopment
FinancialPerformance
Sales &Marketing
Technology
ProjectManagement
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Organization Culture
Three Structures for getting things done
Hierarchy HeterarchyResponsible Autonomy
The one most commonly used. Top down, command and control in pyramid of bosses and staff.
Dispersed rule, balance of powers. Relies on cooperative principles instead of absolute authority.
No external rule; complete autonomy. Specific objectives for outcomes monitored for performance.
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Organization Culture
Most companies blend structures
Company A Company B
Hierarchy 80% 60%
Heterarchy 20% 30%
Responsible Autonomy 0% 10%
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Management By Responsibility Matrix
Basic Management Philosophy
Use of Power
Goal Setting Delegation
Conflict Resolution
Performance Evaluation Methods
Leader-ship Style
Responsible
Achievement
Conformist
Self-protective
Unconscious
7 Dimensions
5 levels
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Lower Levels of functioning & dimensions of management
Basic Management Philosophy
Use of Power Goal setting Delegation
ConformistView of staff (VOS): weak, need to be protected.People concerns emphasized.MO: Maintenance of status quo.
Aversion - power seen as domination.Low need, unwilling to use power.Viewed as indecisive & inconsistent
Let the staff do it.Permissive - feels staff won’t like them if they push.Low to moderate commitment.
Seldom delegates effectively.Unable to assign realistic priorities & meaningful tasks.Creates staff wanting to be “rescued”.
Self-protective
VOS: incompetent, lazy.Productivity and people concerns mutually exclusive.MO: Coercion & force
Domination power used to controlHigh need - used for authority to demand obedience.Viewed as dictator, ruthless.
Sets goals for staff not with them.Feels that to let staff be involved is a sign of weakness.Low commitment, sabotage.
Delegates only functions they dislike.Creativity and decision making discouraged.Creates fear of making mistakes.
Unconscious
VOS: powerless & trapped.Productivity & people concerns unimportant.MO: withdrawal & non-involvement.
Powerlessness - power is avoided.Low need, perceives self as weak & ineffective.Viewed as incompetent.
Avoids goal setting.Will rely on precedent and policy.No commitment.
Doesn’t delegate; staff should know what to do.Non-participative.Creates non-productivity.
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Lower Levels of functioning & dimensions of management
Conflict ResolutionPerformance
Evaluation Methods Leadership Style
ConformistAccommodating (yield/lose)Relationship - primary importanceConflict viewed as destructive of relationships.Hesitant, timid approach.
InfrequentUsed to build morale.Positive; cliche ridden.Negative - -avoided- staff viewed as fragile.
Provides little direction for others.Acts as support person to provide social and technical needs.Self-viewed: morale booster and provider.
Self-protective
Competing (win/lose)Personal goals - primary importance.Social survival at stake; to lose means weakness.Aggressive dogmatic approach.
InfrequentUsed to display authority.Positive - seldom given.Negative is punitive and to determine fault and blame.
Expects strict and rapid compliance with orders.Insist on close, constant supervision.Self view: strong and dominant.
Unconscious
Avoiding (lose/leave)Hopelessness; no win, total avoidance.Withdrawn and detached approach.
Non-existentAvoidance of all feedback.If forced by organization will have staff make out their own or prefer adjective checklists.
Avoidance of any contact.If necessary, resorts to policy or refers to superiors.Self-view: weak, my hands are tied.
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Higher Levels of functioning & dimensions of management
Basic Management Philosophy
Use of Power Goal setting Delegation
Responsible
VOS: productive and creative.Productivity and people concerns integrated.MO: involvement with staff through delegation and participation.
Altruistic - used for common good.High need to have impact and be influential.Viewed as fair, just and strong.
Inclusion of staff in goal setting process.Promotes creativity in objective setting.High level of commitment.
Delegates maximum authority functions, priorities with staff.Aware of staff capabilities and motivations.Creates teamwork, harmony and accountability.
AchievementVOS: moderately productive, but need for manipulation.Productivity concerns emphasized.MO: management by crisis; inadequate planning and delegation.
Personal aggrandizement - used for personal gain.High need - to build empires.Viewed as exploitative and aggressive.
Sales consultative approach - “sells” staff on goals.Moderate to high level of commitment.
Doesn’t delegate specifics.Last minute delegation, changing priorities, improper planning.Creates urgency, frustration and confusion.
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Higher Levels of functioning & dimensions of management
Conflict Resolution Performance Evaluation Methods
Leadership Style
Responsible
Synergistic: win/winIf relationship is to last, all goals must be met.Candid, creative, problem-solving approach.
Frequent, regular basis.Used as learning experiences.Positive-realistic, genuine feedback.Negative-constructive, candid.
Leader views self as team member.Encourages others to contribute.Self view: a contributor of special resources.
Achievement
Compromising: win some/lose someAttempts to soften losing by limiting the gains.Persuasive, manipulative approach.
Frequent, though based on positive or negative performance.Used to increase performance.Negative: based on productivity failures, due dates, etc.
Maintains open door policy.Management by exception, fire-fighting when necessary.Self view: flexible and adaptable.
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Culture Determines How You’ll Proceed with Strategic Development
Arrives at Objectives
Develops and Implements
HierarchalAchievement-oriented
Top management mandates goals and objectives.
“Sells” it to staff.
Key performance expectations handed down, implementation tightly controlled from top.
Hierarchy/HeterarchyResponsible
Group conference establishes goals and objectives.
Staff buy-in by virtue of participation.
Team approach, key performance distributed, authority levels assigned, group and individual responsibility balanced.
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Important Questions to Ask
1.What results are needed?2.Where within our own system do we do this
already?3.If not within our company, where within our
industry is someone doing this?4.How do they do it? Can we replicate it?5.What does management do that supports you
getting results?6.What does management do that hampers getting
results?
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Preparation for Strategic Development
Historical PerspectiveWhere have we been, what have we accomplished?Where are we now? Where can we improve?
BenefitsEstablishes congruent story among all staff members; provides understanding especially for newer staff.
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Preparation for Strategic Development
Mission, Values, Major ObjectivesWhere do we need to be next year?In 2 - 3 years?Key performance indicators identified:
Financial, marketing, etc.Quality of life issues
BenefitsEstablishes same page starting point and defines scope of plan.
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Two-sided Market
Advertiser Media Audience
Content
Supply Demand
Attention
SupplyDemand
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Long Tail of the Web 33
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20
40
60
80
100Long TailAggregators/Portals
Google, Yahoo, MSN
Top news sites
Millions of sites
Head
Long Tail
Aggregators attract huge volumes of attention and broker ads to reach subsets of audience with price variables unique to each subset. Their reach is from the head through the long tail.
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Seeing Opportunity & Brainstorming Ideas
Who are they?What do they need/want?
What are our ideas?
Customers ? ? ?
Non-customers ? ? ?
“Marketing starts with all customers in the market rather than with our customers.”
“The first aim of any business is to create a customer.”
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Prepare Ideas for Implementation
Identify assumptions and risks
Prioritize best ideas
Identify resources neededFinancesPersonnelProcessesTechnologySpace/place, tools
Quick financial parameters
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Example of a WebBusiness Directory Idea
Idea:Create a web business directory to mirror an annual print directory source guide with 1,400 listings.
Critical assumptions: • Advertisers would pay to be online
in addition to print; some may opt for print or web only.
• Sales reps would sell it.• Consumers would use it.• It would be cash flow positive within
6 months}Research,
survey, assess risks, i.e. what happens if this assumption is false? Can it be corrected or converted to true?
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Quick Financial & Resource View
Calculation for Salary WagesSalaries Staff per week
$ 3,850
% of 40 hr. wk dedicated to selling product
10%
Time
Costs
Leads
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Quick Financial View
Breakeven Analysis—Directory Model
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87
129
170
211250
289327
365401
437
0
100
200
300
400
500
600
1 2 3 4 5 6 7 8 9 10 11 12
Months
Ad
s S
old
-$3,000
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
# Sold AdsMonthly RevenueMonthly CostMonthly Net
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Financial Statements
The 3 Bottom Lines
Net ProfitDollar figure that shows whether or not your sales are greater than your expenses.
Operating Cash FlowOCF
Dollar figure that shows whether or not you’re converting your profits into cash.
Return on AssetsROA
Ratio that tells whether or not you’re optimizing the value of your resources.
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Flat sales, declining profits and operating cash flow.40
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Mobley Matrix41
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Key Performance IndicatorsKPI
KPIs are only meaningful when they are connected to your triple bottom line.
AND
When everyone knows what they mean and how to effect them positively.
Standard KPIsAverage page yield (tot.) Average page yield (ads)
Sales per 1000 circulation Net profit per employee
Sales per page per 1000 circ Production costs per page
Sales per employee (tot.) Print costs per page
Sales per employee (sales) G&A expense per employee
Sales per category Distribution costs per 1000
Number of ads per issue Editorial costs per page
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Financial Literacy
Income statementBalance sheetCash statementKPIs
Owners/publishers/
CFO
Management Team
Staff
See & regularly discuss financials and performance
? ? ?
Understand & interpret financials with strategic obj.
? ? ?
Project financials to plan future performance metrics
? ? ?
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Sales and MarketingAligning with Local Interests
Resource Coordination
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MediaCompany
Local BALLE
Network
M
M M M
M M
M
BALLEExecutive
StaffSF
Coordinate for Start-up of local network
Co-createCo-create
Recruit members for start up from existing ad customers.
Recruit members through promotion & network volunteers.
BALLE/Media Modelfor Collaboration
MMMM
M MM M
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Sales & Marketing Follows Strategic Plan 45
With the new ventures, products, etc. Largely, the management challenges are found in operations.
This is true to some extent for other departments.
Implementing Strategy
Operations
Multiple products across multiple media
platforms
Workflow processes
Changes in hiring criteria
Training requirements
Compensation plans
Rep dedicated to one or more product lines?
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Project Management 46
Strategic Initiatives
Need/Opportunity
Project Management
Strategic Results of
Value
Project Initiation
High level Planning
Plan Development
Execution Close-out
Process Steps
Inputs Outputs
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Technology 47
Hierarchy of Questions
Treat tech like any capital
expense.
What does it enable us to do that we can’t do now?
Does that serve the results we need in our plan?
How much should we invest? What’s the return? (NPV-calc)
What’s our learning curve to assimilate it?
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The End
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