Online options challenge print dominance in classifie

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Leading Through Disruption and Transformation

• Larry Olmstead
• South Bay Organizational Development Network
• April 5, 2007

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Todays discussion

• Dynamics of disruptive change
• The leaders role in driving change initiatives
• What are the key skills necessary to lead change
  in a disrupted industry?
• How do we help people and organizations
  develop those skills?

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About Leading Edge Associates

• Leading Edge helps organizations improve their
  capacity to lead and manage. We do this through
  organizational and strategic change efforts
  executive coaching management training and
  development programs diversity consulting, and
  help with effective communications
• Core team Jerry Ceppos, Marty Claus, Larry
  Olmstead and Robyn Parmley, formerly of Knight
  Ridder veteran executive coach and consultant
  Rafael Gonzalez Rebecca Kuiken, a Presbyterian
  clergywoman and former community non-profit
  agency director
• Founded July 2006
• Based in San Jose, CA
• www.leadingedgeassociates.net

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Newspapers face unprecedented challenges
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Newspapers face unprecedented challenges

• Circulation has been sliding now more than three
  decades
• Online options challenge print dominance in
  classified advertising (especially auto,
  help-wanted think craigslist, CareerBuilder,
  cars.com)
• Major advertisers like department stores,
  groceries, drugstores etc. are consolidating
• Advertisers want to target their audiences more
  precisely, and want proof that their ads are
  driving traffic
• Barriers of entry to journalism and mass
  publishing have eroded, if not disappeared

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Steady decline with each generation

• Percentage of respondents who read a newspaper
  yesterday
• Source Pew Research Center Biennial News
  Consumption Survey

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Characteristics of disrupted industries

• Innovation comes from the low end of the market,
  especially targeting infrequent or non-consumers
• New product or service offers a consumer benefit
  Simplicity, ease of use, convenience, low price
• Never can the industry leader succeed if it
  tries to address the disruptive innovation from
  within its existing business model
• Industry leader must focus on jobs to be done,
  rather than customer or product characteristics
• Examples Toyota, PCs, discount airlines,
  commuter newspapers, steel
• SOURCE Innosight LLC

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Disruption at work Department stores

• In 1960, there were more than 300 department
  store chains in the United States
• In responding to the challenge from discount
  retailers, only Minnesota-based Dayton Hudson
  created a discount subsidiary -- Target
• Today, there are about 10 major department-store
  chains in the United States

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Many feel the survival of the industry is at stake

• They really need to understand that its now or
  never. Theyve got to innovate, or die.
• Dr. Clayton Christensen, Harvard Business School
  founder, Innosight

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No. 2 publisher gets out

• Sacramento, CA-based McClatchy Co. acquired
  Knight Ridder in June 2006 in a 6.5 billion
  stock-and-cash transaction and replaced KR as the
  nations second-largest newspaper publisher.
• In December 2006, McClatchy sold its largest
  newspaper, the Minneapolis Star Tribune, to an
  investment firm for 530 million to help pay down
  debt from the KR transaction. McClatchy paid 1.2
  billion for the Star Tribune in 1998.

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No. 3 publisher gets a new owner

• On Monday, Tribune Co. owners of the Chicago
  Tribune, Los Angeles Times, Long Island Newsday,
  TV holdings and the Chicago Cubs baseball team
  announced it was being sold to real estate mogul
  Sam Zell for 8 billion

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Sound familiar?

• Take a minute to jot down a few notes about
  anything said in this presentation thus far that
  triggers thoughts about your own company and
  industry

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Leading through transformation Whats needed
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The psychology of change

• Please take a pen and piece of paper and sign
  your name using your non-dominant hand.
• How does it feel?

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Change a jolt

• Anger
• Disorientation
• Feeling of inadequacy
• Feeling of incompetence
• Frustration
• Its being forced on you lack of control
• Doing things differently takes longer
• Doing things differently takes practice

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Change provokes a cycle of grief

• Shock Initial paralysis at hearing the bad news
• Denial Trying to avoid the inevitable
• Anger Frustrated outpouring of bottled-up
  emotion
• Bargaining Seeking in vain for a way out
• Depression Final realization of the inevitable
• Testing Seeking realistic solutions
• Acceptance Finding the way forward
• Descriptions from www.changingminds.org

Dr. Elisabeth Kubler-Ross, a Swiss psychiatrist,
wrote On Death and Dying, widely considered as
the most authoritative work on the subject.
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The roller-coaster ride this, too, shall pass
Credit www.changingminds.org
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Dont be afraid

• Change is inevitable
• Change provides opportunities
• In the business arena, if we stand still, the
  competition moves ahead
• If we dont drive change ourselves, we become
  vulnerable to moves by competition and changing
  customer habits

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Leaders role in driving change

• Establish urgency
• Create and maintain coalition
• Develop destination and roadmap
• Mobilize everyone
• Align procedures and systems
• Align individual competencies. Right people?
  Right skills?
• Execute, inspect, learn and improve

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Change, leaders and culture

• Remember that big change in organizations is
  either enabled by the culture resisted by the
  culture, or it changes the culture and that the
  behavior of top executives is the most powerful
  driver of culture

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What does it take to lead in a disrupted industry?

• __________________________________________________
  ________________
• Leading Edge Associates, partnering with Bigby,
  Havis Associates, was hired by the Newspaper
  Association of America to research these
  questions and report on the findings
• What are the competencies skills, traits and
  knowledge needed by managers to effectively
  lead change in disrupted industries? What are the
  behaviors associated with those competencies that
  will lead to success? How does management assess,
  select for and develop those skills in key
  leaders?

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Methodology

• Review existing research and case studies
• Interviews with change agents and other key
  industry leaders and experts
• Conduct online surveys of publishers and other
  newspaper executives
• Working with Bigby Havis, we created a competency
  model with input from focus groups of industry
  experts
• Final report, New Styles for Newspaper Leaders,
  can be viewed at www.naa.org/fusion

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Key findings from interviews, research

• Biggest need for followers Whats the vision?
• Resilience is a must
• Optimism and passion are desperately sought
• The hero leader style is history
• The best leaders are engaged with employees,
  provocative, ask questions and get out of their
  offices. Passive, low-key leaders are
  disadvantaged in current setting

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Critical leadership skills for transforming media

• Vision
• Identifies long-term goals and champions
  innovation

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Listening to new voices and perspectives
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Critical leadership skills for transforming media

• 2. Customer focus
• Anticipates new markets identifies customer
  needs, and delivers products and services that
  exceed customers expectations

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Critical leadership skills for transforming media

• 3. Championing change
• Acts effectively to support and implement change
  initiatives

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Critical leadership skills for transforming media

• 4. Drives results
• Pushes him/herself and the organization to excel
  and achieve measurable results

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Critical leadership skills for transforming media

• 5. Interpersonal communication
• Communicates clearly and effectively with people
  inside and outside the organization

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Critical leadership skills for transforming media

• 6. Relationship management
• Develops and maintains positive relationships
  inside and outside the organization to accomplish
  business objectives

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Critical leadership skills for transforming media

• 7. Coaching and developing
• Encourages and inspires others to develop their
  work-related competencies and achieve long-term
  career growth

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Critical leadership skills for transforming media

• 8. Integrity
• Upholds a high standard of fairness and ethics in
  everyday words and actions

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Critical leadership skills for transforming media

• 9. Business acumen
• Understands general business and financial
  concepts and the companys business, and uses
  both general and specific knowledge to be
  effective

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Critical leadership skills for transforming media

• 10. Learning agility
• Continuously adapts and improves his/her skills
  and performance

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Critical leadership skills for transforming media

• Vision
• Customer focus
• Championing change
• Drives results
• Interpersonal communications
• Relationship management
• Coaching and developing
• Integrity
• Business acumen
• Learning agility

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Critical leadership skills

• Vision
• Customer focus
• Championing change
• Drives results
• Interpersonal communications
• Relationship management
• Coaching and developing
• Integrity
• Business acumen
• Learning agility
• How many of these are strengths for the executive
  team in YOUR organization?

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How to use the competencies

• Determine which competencies are most relevant to
  you, and most relevant to your organization
• How do candidates for supervisory/management jobs
  stack up against this list? Devise interview
  questions for the candidates, and questions for
  their references, that help answer the questions
• How do your current supervisors stack up against
  the competencies? Choose two or three that are
  most relevant to their current job expectations
  and work with the supervisors to craft
  development and/or training activities that help
  improve their skills
• Create or seek training programs that emphasize
  these skills
• Some current managers, well-regarded, may not be
  suited for leading change. Determine if their
  shortcomings can be developed or accommodated if
  not, can they find a better fit within the
  organization? Or do they need to be managed out?

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Leading change A tool for individual growth

• ASSESS helps executives answer these questions
• What is your leadership personality profile?
• How does it measure against the change leadership
  competencies?
• What are steps you might consider to further
  develop your skills in these key areas?

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What is ASSESS?

• A web-based Expert System
• Used to aid in the selection and development of
  managers and professionals
• Interprets well-researched, widely used tests
• - Intellectual Abilities
• - Work-related Personality
• Models the judgment of a psychologist
• Looks at the Total Picture, not just isolated
  traits

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ASSESS Results

• The Graphic Profile
• Quickly see where the respondent stands out
  from other managers and professionals
• Helps the respondent understand the implications
  for job effectiveness

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Development reports give insight, tips
ASSESS Standard Development Reports provide a
detailed narrative based on a general assessment
model of Thinking, Working and Relating. They can
be mapped against the change competencies
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The leaders role

• Effective leaders are capable of reframing the
  thinking of those they guide, enabling them to
  see that significant changes are not only
  imperative, but achievable.
• Daryl R. Conner, Managing at the Speed of
  Change
• Villard Books 1992

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Last comments or questions?
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Contact us

• Larry Olmstead
• [phone]
• larryo_at_leadingedgeassociates.net
• Rebecca Kuiken
• [phone]
• rebeccak_at_leadingedgeassociates.net
• www.leadingedgeassociates.net

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Leading Through Disruption and Transformation

• Larry Olmstead
• South Bay Organizational Development Network
• April 5, 2007