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Why INMA will keep talking about culture change at newspapers

28 June 2011 · By Earl J. Wilkinson

In thumbing through the evaluations from the recent INMA World Congress in New York, a comment from a U.S. attendee popped off the page that I, no doubt, took far too seriously: stop talking to us about culture change if it can’t affect my position back home.

The comment has gnawed at me for a month, and I need to stop biting my tongue and put in writing what’s on my mind.

Consider the facts in the national market the world thinks is either a leading indicator or an outlier to avoid, the United States:

  • Newspaper advertising sales have declined for 18 consecutive quarters dating to 2005. Print advertising expenditures are at their lowest level since 1983.

  • Paid circulation for daily newspapers has decreased every year since 1986. Circulation as a percentage of the population has decreased every year since the 1950s.

  • Our industry’s response has been to cut people and newsprint, often without regard for priorities or the customer.

  • The top publishers refuse to collaborate on anything meaningful such as industry innovation, incubation, or experimentation.

  • When the analyst community five years ago gave publicly traded newspapers a green light to lower profit margins to heavily invest in digital, sales, marketing and research, publishers dabbled but mostly passed.

  • The old beacons to whom we have turned in the past for inspiration and guidance — Editor & Publisher, Presstime, Deutsche Bank and other fantastic analysts who covered the industry — are all dead, dying, or irrelevant.

About 15 months ago, I was on the phone with the CEO of a newspaper company who told me the quarterly numbers about to come out would show only single-digit decreases in advertising sales — projecting increases by the next quarter. More than a year later, newspapers are still shedding 7%-10% in advertising revenue each quarter off of a lower and lower base.

The reason INMA chooses to relentlessly pursue the encouragement of culture change at news companies is that our industry’s challenges remain at the foundational, strategic, organisational levels. When we look around, INMA is the only organisation still standing and fighting for transformational change in our industry.

And in moments of doubt, the funny thing is publishers whisper to us: “Keep pushing!”

Why?

Because as easy as it is to blame CEOs and shareholders for the mess our industry is in, the dirty truth is many of them are fighting daily for change — but their companies are populated by newsrooms, pressrooms, unions, and fiefdoms that are finding new and innovative ways to stop or slow the change.

There are too many people in our industry marking time to retirement, fighting the small changes that prevent us from ever considering the big changes.

I love the idea that CEOs can snap their fingers and things happen; the truth is they run big companies populated with complicated eddies that require constant finessing. Sometimes leadership can be top-down. Mostly, leadership is the clever facilitation of bottom-up.

Hamstrung by crap deals that saddled their companies with debt, more people and bigger products is not a path to success.

So what are publishers left with if they are to break these structural shifts in consumption and marketing habits?

No, wait. We shouldn’t be talking about such things. It won’t do any good. Right?

Culture change in the news industry involves a collection of practices that break from the past, some obvious and some not-so-obvious — yet all not generally practiced in our industry even today:

  • Listen to the market.
  • Prioritise expenditures to your USPs.
  • Outsource, link or cut what isn’t your USP.
  • More sales feet on the street.
  • Invest in research.
  • Digital first.
  • Focus relentlessly on your differentiators.
  • Sell market solutions, not space.
  • Dialogue, not monologue.
  • Embrace the crowd.
  • Be willing to fail, but fail fast.
  • Go on the offense for readers and advertisers.
  • Speed over perfection.
  • You can’t be all things to all people.
  • Respect the platform for its unique value.
  • Go where the growth is.
  • Be relevant.
  • Place many small bets.
  • Low-cost innovation.

If INMA can help nudge our industry 1% on any of these issues by stubbornly refusing to give up hope that transformational change is possible, then we have fulfilled our mission.

Our industry’s challenges are not across the board, they are not at the best-practice level, and they are not about honing our skills at following the pack from the format change flavour of the month to the Groupon flavour of the month.

Our industry’s challenges are at the foundational level. It will require hard work, strategic change, and persistence.

Are you in?


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Comments

Scott Stines | Jun 23, 2011 at 5:24 PM

I'm IN!



Tom Ratkovich | Jun 24, 2011 at 8:38 AM

Earl...I think this is the best blog you have ever written. Your characterization of the fundamental challenges facing this industry is right on. INMA is doing all the right things to nudge the industry far more than 1%. We can only hope that there are receptive ears that want to do more than mark time to retirement.



Kathleen Coleman | Jun 24, 2011 at 9:22 AM

This is must-read, must-"get" information for all of us who care about our businesses, our missions, and our future. Well done, Earl. And kudos to INMA for its leadership, messaging and actionable advice and trainings.



John Newby | Jun 24, 2011 at 9:33 AM

I am on my feet applauding, EXCELLENT POST!

This will be spread throughout out building and beyond, thanks for this concise and most prudent message.



Elaine Clisham | Jun 24, 2011 at 11:02 AM

I'm sighing (along with John Newby, I hope), because, well, Newspaper Next was a long time ago now, and it doesn't really seem like the industry's made a lot of progress. I applaud Earl and INMA for keeping at it, and yes, you are pretty much "the only organisation still standing and fighting for transformational change in news industry." Thank you for your persistence, painfully lacking elsewhere. (And hi from afar to all the commenters here; nice to see your names!)



Gregory Clay | Jun 24, 2011 at 11:47 AM

I too am "IN".



Linda Gibson | Jun 28, 2011 at 8:18 AM

I'm in!



Amy George | Jun 28, 2011 at 9:11 AM

Powerful post, Earl!



Len Kubas | Jun 28, 2011 at 1:21 PM

Bravo Zulu! Earl, as they say in the Navy. A well-reasoned, articulate and much needed post.

Newspaper leaders believe the following -- "Change is Good. You go first."

After losing half the industry's print ad revenue in less than six years, it's time for someone in charge to initiate new ways to package, price and sell newspaper advertising. Start by selling Impact, not inches. Or as you pointed out -- solutions that provide advertisers with tangible results.

I hope it's not too late for the industry to recognize that the good ship Newspaper won't reach port if the crew burns the mast, sails, lifeboats and decks to fuel the sputtering boilers. And if it does reach port, what condition will it be in for the next voyage?

Len Kubas



Ken Nichols | Jun 28, 2011 at 7:54 PM

Earl,
A thought provoking and motivating piece that helps focus the mind on just how much we all need to do.Thanks and keep them coming, they are much appreciated.
Ken



Fraser Van Asch | Jun 29, 2011 at 8:21 AM

Bravo!



Brian Daly | Aug 6, 2011 at 7:57 AM

Wonderful post Earl. I joined the newspaper industry eight years ago to lead culture change efforts for a leading daily newspaper, having spent the better part of twenty years doing culture change and related work in large organizations in other industries on three continents. While I knew up front we were facing resistance, I had no idea how much. Change resistance is truly a core competence of many people in our industry. We chronically suffer from an attitude of "we're different, it won't work here!". Even leading change-drivers sometimes suffer from this attitude. I hear myself saying this more and more, I hate to admit. The reality is that we will collectively become more and more irrelevant while industry disruptors steal our lunch. Unless we collectively and individually open our eyes to what is happening in the broader world. Choice is really ours. Thanks to you and INMA for keeping this on the forefront!



Trevor Weeding | Aug 17, 2011 at 7:32 PM

Excellent post Earl.



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About Earl

Earl J. Wilkinson is executive director and CEO of INMA. In his interactions with INMA members worldwide, Earl has one of the broadest views of newspapers of anyone serving our industry today. He is a trendspotter and a leading advocate for cultural change, transformation, and innovation. This blog represents his unique view of the emerging global newsmedia industry.

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