nieman reports the nieman foundation for journalism ...€¦ · clayton m. christensen, harvard...

Harvard’s Master of InnovatIon

tutors a nIeMan fellow on How

MedIa Can suCCeed In tHe Internet age

BetHe

dIsruptor

The NiemaN FouNdaTioN For JourNalism aT harvard uNiversiTy

N ieman Reports

fall 2012 Vol. 66 No. 3

Clayton M. Christensen,Harvard Business School

N

IEMAN

REPORTS

VOL. 66 N

O. 3 FALL 2012 BE TH

E DISRUPTO

R TH

E NIEM

AN FO

UN

DATION

AT HARVARD U

NIVERSITY

Nieman ReportsThe Nieman Foundation for JournalismHarvard UniversityOne Francis AvenueCambridge, Massachusetts 02138

ALSO IN THIS ISSUELessons From Fukushima Interview with Yoichi Funabashi

The Big ChillBy Dan Froomkin

The Magician’s Daughter By Maggie Jones

PLUSHoward Berkes on Covering the OlympicsHedrick Smith’s ‘Who Stole the American Dream?’Shirley Christian on ‘The Good Girls Revolt’

To promote and elevate the standards of journalism

In This Issue

HarvardBusinessSchoolprofessorClaytonM.Christensen’stheoryofdisruptiveinnovationprovidesaframeworktounderstandhowbusinessesgrow,becomesuccessful,andfalterasnimblestart-upsmuscleinontheircustomers.It’safamiliarstory,onethathasplayedoutinthesteelandautoindustries,amongothers.NowChristensen,incollaborationwith2012MartinWiseGoodmanCanadianNiemanFellowDavidSkok,hasappliedhisanalysistothenewsindustry.Theirgoalin“BreakingNews”istoencouragenewsexecutivestoapplythelessonsofdisruptiontothemediaindustryasameansofchartingnewpathstosurvivalandsuccess.

(For anaudiointerviewwiththeco-authors,visithttp://niemanlab.org/disruptor.)

4 Finding a Way Forward Ajournalismcareerlaunchedamidindustryturmoilinspiredacourseofstudy. By David Skok

6 Breaking News Masteringtheartofdisruptiveinnovationinjournalism. By Clayton M. Christensen, David Skok, and James Allworth

Cover Story: Be the DisruptorClayton M. Christensen, left, of Harvard Business School; David Skok, right, a 2012 Nieman Fellow. Photos by John Soares.

2 Nieman Reports |Fall2012

NIEMAN REPORTSTHE NIEMAN FOUNDATION FOR JOURNALISM AT HARVARD UNIVERSITywww.niemanreports.orgVoL. 66 No. 3 Fall 2012

“�There�is�still�hope�for�traditional��news�organizations�if�we�can�make��some�courageous�choices�and�recognize�our�own�flaws.”—DAVID SkOk, PAGE 4

PUBLISHERAnn Marie Lipinski

ASSISTANT EDITORJan Gardner

EDITORIAL ASSISTANTJonathan Seitz

DESIGN2COMMUNIQUé

[email protected]

Copyright 2012 by the President and Fellows of Harvard College.

Periodicals postage paid at Boston, Massachusetts and additional entries.

SUBSCRIPTIONS/[email protected]

Subscription $25 a year, $40 for two years; add $10 per year for foreign airmail. Single copies $7.50.Back copies are available from the Nieman office.

Please address all subscription correspondence to one Francis Avenue, Cambridge, MA 02138-2098 and change of address information to P.o. Box 4951, Manchester, NH 03108. ISSN Number 0028-9817

POSTMASTER: Send address changes to Nieman Reports P.o. Box 4951 Manchester, NH 03108

Nieman Reports (USPS #430-650) is published in March, June, September and December by the Nieman Foundation at Harvard University, one Francis Avenue, Cambridge, MA 02138-2098.

Nieman Reports |Fall2012 3

FROM THE CURATOR

Journalism is an escape artist. ForthegenerationraisedonWatergate,thatlessonlanded

hard.Themostpowerfulmenintheworldcouldnotshutastorydown.Theyliedandconspired,thenbulliedthewatch-dogs,butthefactsprevailed,coaxedintodaylightbyjournalists.IdoubtIwastheonlyteenagegirltodrawspecialinspirationfromWashingtonPostpublisherKatharineGraham,whoenduredathuggishthreatfromtheNixonadministrationanddidn’tblink.

“Allthatcrap,you’reputtingitinthepaper?It’sallbeendenied,”formerU.S.AttorneyGeneralJohnMitchelltoldreporterCarlBernstein.“KatieGraham’sgonnagethertitcaughtinabigfatwringerifthat’spublished.”

TheyearsfollowingWatergatedidnotshakemybeliefinjournalism’sinevitability,evenwhenjournalistswereslowoffthemarkorchallengedbythemostextremeconditions.Ithoughtofthisanewwhenthe2012NiemanFellowschosetheirwinnerfortheannualLouisM.LyonsAwardforCon-scienceandIntegrityinJournalism,namedforthelateNiemancurator.ThehonorwenttoMohammed“Mo”Nabbous,founderofLibyaAlhurraTV,whosucceededinbypassinggovernmentblocksontheInternetinordertostreamlivefootageandcom-mentaryaboutLibyanunrest.

WhiledisseminatingthosefirstimagesoftheMuammarel-Qaddafiregime’sclasheswithrebelsandattacksoncivilians,Nabbouswasshotandkilled.HiswifeannouncedhisdeathontheverylivestreamthatNabboushadcreated.

Journalismisanescapeartist.Bulletsandpoliticalthreatsarenotjournalism’sonlypreda-

tors.Theavariceandignoranceofsomeownershaveplayedtheirpart.Sotoothefabulistsandcheatswhowouldlaylowtheirnewsroomsbybreakingthetrust.Butthecollapseofthebusinessmodelthatlongsustainedtheindustryhascometoovershadowthoseworries.Thefundamentalsarebrokenandalternativesareuncertain.Howdoesjournalismescapethis?

InthisspecialissueofNiemanReports,weexaminethatquestionthroughtheeyesandresearchofoneofHarvard’spreeminentscholars,businessschoolprofessorClaytonM.Christensen.Christensen’sgroundbreakingresearchoninno-vationanddisruption,documentedinhisbook“TheInnova-tor’sDilemma:WhenNewTechnologiesCauseGreatFirmstoFail,”hasinfluencedsomeoftheworld’smostsuccessfulentrepreneurs.

HowChristensencametofocusonthenewsindustryisastorythatunderscoresthefundamentalpromiseofaNiemanFellowship.WhenCanadianjournalistDavidSkokarrivedatHarvardlastyear,hejoined24otherjournalistsfromaroundtheworldinatraditionofstudydatingto1938.ButthetremulousbusinessenvironmentinwhichheandotherfellowsoperatehasbroughtanewurgencytotheworkoftheNiemanFoundation.

SkokknewofChristensen’sexaminationofindustriesrangingfromeducationtohealthcareandwondered:Whynotlayerthelessonsontotheupheavalinjournalism?Christensenagreedandthefruitsoftheircollaborationaredocumentedinthesepagesandasane-bookfoundontheNiemanReportswebsite.

Theirconclusions,Skokwrites,willnotaloneeliminatethechallengesthathauntmodernmediacompanies.Norshouldtheirconsumer-centricframeworkbeconfusedasasubstituteforthejournalismofaccountability.Buttheclearquestionstheypose—aboutculture,organization,habitsandrisk—areprovocativeonesthatcanenlightendecisionsinindividualnewsorganizationsandtheindustrymorebroadly.

Withoutabusinessplan,Skoksays,“thereisnoeditorialindependencelefttorootfor,”atruthfromwhichtherecanbenoescape.

rising to the Challenge


COVER STORy

I have never known a time when journalismwasjustjournalismortheonlyprofitmarginsjournalistswor-riedaboutwerethosebelongingtothecompanieswereportedon.

AsajournalisminternatasportsnewsradiostationinTorontoin2002,Iexperiencedmyfirsttasteofthebusinessrealitiesfacingmycraft.Justfourweeksintomyinternship,thestation’smanage-ment,unabletocompeteinasaturatedmarket,wentofftheair,leavingdozensofmotivated,educatedandtalentedjournalistslookingforwork.

MonthslaterwhenIwasaninternat“ABCNewsNightline,”itfacedcancella-tionamidrumorsthatDavidLettermanwouldtakeourlate-nightslot.

Andfinally,followingthe2008finan-cialcrisis,Iwatchedascolleaguesandmentorswerelaidoffandnewsbudgetswereslashedaftermynewsroom’sparentcompany,CanwestGlobalCommunica-tionsCorp.,declaredbankruptcy.

Timeandagain,Ihavewitnessedoncemightynewsinstitutionstacklerevenuechallengeswithcost-cuttingmeasures.Thesemeasures,inturn,haveworsenedtherevenuechallenges,puttingusinadownwardspiralthathasspedupexponentiallywiththeadventofnewdisruptivetechnologiesand

increasedcompetition.I’mnotalone.Formanyoftoday’s

journalists,theideaofachurch-and-stateseparationbetweentheeditorialandexecutiveteamshasalwaysbeenanaspirationnotmatchedbyreality.Wespendourdaysreportingthenewsandleadingnewsroomswhiledreadingtheinevitablewaveofcutbacksthatisregu-larlyjustonestaffmeetingorquarterlyearningsreportaway.

Acrosstheindustry,thereareshockwavesbeingfeltasaudiencesandadver-tisersflocktonewplatforms.Mediaorganizationshavetoadapttoastruc-tural,systemicshiftintheironcehealthybusinessmodels,and,onceagain,itisthejournalistswhoarefeelingthebruntofthesechanges.

Itisfrightening,butitisnotterminal.Thereisstillhopefortraditionalnewsorganizationsifwecanmakesomecou-rageouschoicesandrecognizeourownflaws.Therehasalwaysbeenandwillalwaysbereportingsoimportanttothefunctioningofsocietythatnopricetagcanbeplacedonit.Thisfactmakesitallthemoreurgenttomeettoday’srevenuechallenges.

Duringmy2011-2012Niemanfellow-shipIhadthegreatprivilegeofwork-ingwiththewidelyrecognizedexpert

onstrategyandinnovation,HarvardBusinessSchoolprofessorClaytonM.Christensen.HisdisciplesincludeIntel’sex-CEOAndyGrove,NewYorkCity’sMayorMichaelBloomberg,andthelateAppleCEOSteveJobswho,accordingtoWalterIsaacson’sbiography,washeavilyinfluencedbyChristensen’sbook“TheInnovator’sDilemma:WhenNewTech-nologiesCauseGreatFirmstoFail.”

Havingalreadytackleddisruptionintechnology,educationandhealthcare,Christensengraciouslyobligedmyrequesttohelptackledisruptioninjournalism.Overafive-monthperiod,Christensen,ForumforGrowthandInnovationFellow JamesAllworth,andIsystematicallyappliedhistheoriestojournalism.Thegoalwastoestablishaframeworkforunderstandingwhatistakingplaceintheindustry.Whilethiswon’tprovideimmediateanswerstothefinancialpressuresfacingincumbentnewsorganizations,wehopeitwillprovideasetofquestionsthatnewsmanagerscanaskastheymakestrategicdecisionsabouttheirnewsrooms.

StudyingthenewsindustryfromaclinicalperspectivewithmycolleaguesattheHarvardBusinessSchoolandusingthetoolsofanalysisthathavebeenappliedtoindustriesasdiverseas

ANiemanFellowengagestheHarvardBusinessSchool’smasterofinnovationinamissiontosavethenewsindustry.

By DAVID SkOk

Finding a way Forward

Be the

disruptor


COVER STORy

manufacturing,technologyandmedicinehasbeenachallengingbutrewardingexperience.Havingbeenliberatedfrommyownjournalisticimpulsesandbiases,Ihavecometotherealizationthatwhilethetechnologicaldisruptionsfacingourindustryare50percentofthechallenge;theother50percentisonus.Wehavefailedtofosteranewsroomculturethatrewardsinnovationandempowerstheyoungergeneration,thatcanreadilyadapttothenewmediaworldaroundus,andthatiswillingtoexperimentwiththediversifiedrevenuestreamsrightinfrontofus.Tousetheoft-quotedphrase,“cultureeatsstrategyforbreakfast.”Ourtraditionalnewsroomculturetakeninaggregatehasblindedusfrommovingbeyondourwallsofeditorialindepen-

dencetorecognizethatwithoutsalesandmarketing,strategy,leadershipand,firstandforemost,revenues,thereisnoeditorialindependencelefttorootfor.

Inhis1958addresstotheRadioandTelevisionNewsDirectorsAssociationconvention,EdwardR.Murrowwarnedusnotbe“deludedintobelievingthatthetitularheadsofthenetworkscontrolwhatappearsontheirnetworks.Theyallhavebettertaste.Allareresponsibletostockholders,and…arehonorablemen.Buttheymustschedulewhattheycansellinthepublicmarket.”

Myownexperiencehasconfirmedthatmostexecutivesareindeedhonor-ablemenandwomen,butIchoosenottobegfortheirpermissiontocreatethejournalismthatweaspireto.Ichoose

insteadtomeetthemontheirownturfbyarticulatingastrategicvisionforoursharedsustainablefuture,becauseifwecan’tmakethebusinesscaseforjournal-ism,nobodyelsewill.

Theculminationofourworkisnowavailableinthepagesthatfollowandine-bookformatontheNiemanReportswebsite.Whetheryouworkforasuccessfulmainstreamnewspaper,nationalbroadcaster,city-sizeddaily,oranInternetnewsstart-up,wehopethatourworkgivesyouanewlenswithwhichtoviewthedramaticchangestakingplaceinjournalism.Beyondthat,ourevengreaterhopeisthatitwillhelpguideyournewsroomwithaclearerpathforwardasyoupositionyourselvesforjournalism’sbrightfuture.

David Skok found in his studies at Harvard Business School a new way to analyze what’s happening to the news business. Photo by John Soares.


COVER STORy

Old habits die hard. Fouryearsafterthe2008financial

crisis,traditionalnewsorganizationscontinuetoseetheirnewsroomsshrinkorclose.Thosethatsurviveremainmiredintheinnovator’sdilemma:Afalsechoicebetweentoday’srevenuesandtomorrow’sdigitalpromise.Theproblemisapro-foundone:AstudyinMarchbythePewResearchCenter’sProjectforExcellenceinJournalismshowedthatnewspapershavebeen,onaverage,losingprintadvertisingdollarsatseventimestheratetheyhavebeengrowingdigitaladrevenue.

Journalisminstitutionsplayavitalroleinthedemocraticprocessandwe arerootingfortheirsurvival.Butonlytheorganizationsthemselvescanmakethechangesrequiredtoadapttothesenewrealities.Thissearchfornewbusinessmodelsremainselusiveformost.ExecutivesinterviewedinthatPewreportconfirmedthatclosingtherevenuegapremainsastruggle.“Theremightbea90percentchanceyou’llacceleratethedeclineifyougambleanda10percentchanceyoumightfindthenewmodel,”oneexecutiveexplainedinthereport.“Nooneiswillingtotakethatchance.”

Butpursueittheymust,ortheirorganizationswillbedeemedirrelevantbynewsconsumers.Newentrantsarealreadyleavingtheirmarkonjournal-ism—stealingaudiencesandrevenuesawayfromlegacyorganizations.

Thishashappenedbefore.Eighty-nineyearsago,HenryLucestartedTimeasaweeklymagazinesummarizingthenews.All28pagesoftheblack-and-whiteweeklywerefilledwithadvertise-mentsandaggregation.Thiswasn’tjustrewritesoftheweek’snews;itwasrip-and-readcopyfromtheday’smajorpublications—TheAtlanticMonthly,TheChristianScienceMonitor,andtheNewYorkWorld,tonameafew.

TodayTime,withitsprintandonlineproperties,confrontsthechallengesposedbythedigitalage,butreachesaglobalaudienceof25million.

Withhistoryasourguide,itshouldn’tbeasurprisewhennewentrantslikeTheHuffingtonPostandBuzzFeed,whichbeganlifeasnewsaggregators,begintheirmarchupthevaluenetwork. Theymayhavestartedbycollectingcutepicturesofcatsbuttheyarenowexpand-ingintopolitics,transformingfromaggregatorsintogeneratorsoforiginalcontent,andeven,inthecaseofTheHuffingtonPost,winningaPulitzerPrizeforitsreporting.

Theyareclassicdisruptors.Disruptiontheoryarguesthatacon-

sistentpatternrepeatsitselffromindus-trytoindustry.Newentrantstoafieldestablishafootholdatthelowendandmoveupthevaluenetwork—eatingawayatthecustomerbaseofincumbents—byusingascalableadvantageandtypicallyenteringthemarketwithalower-marginprofitformula.

IthappenedwithJapaneseautomak-ers:Theystartedwithcheapsubcom-pactsthatwerewidelyconsideredajoke.NowtheymakeLexusesthatchallengethebestofwhatEuropecanoffer.

Ithappenedinthesteelindustry,whereminimillsbeganasacheap,lower-qualityalternativetoestablishedintegratedmills,thenmovedtheirwayup,pushingasidetheindustry’sgiants.

Inthenewsbusiness,newcomersaredoingthesamething:deliveringaproductthatisfasterandmorepersonal-izedthanthatprovidedbythebigger,moreestablishednewsorganizations.Thenewcomersaren’tburdenedbytheexpensiveoverheadsoflegacyorganiza-tionsthatareafunctionoflifeintheoldworld.Instead,they’veinvestedinonlythoseresourcescriticaltosurvivalinthenewworld.Allthewhile,theyhavecre-atednewmarketdemandbyengagingnewaudiences.

Becausenew-marketdisruptorslikeTheHuffingtonPostandBuzzFeedinitiallyattractthosewhoaren’ttradi-tionalconsumersofadailynewspaperoreveningnewscast,incumbentorga-nizationsfeellittlepainorthreat.Theincumbentsstaythecourseoncontent,competingalongthetraditionaldefini-tionof“quality.”Onceestablishedatthemarket’slowend,thedisruptors—byproducinglow-cost,personalizedand,increasingly,originalcontent—moveintothespacepreviouslyheldbytheincumbents.

Masteringtheartofdisruptiveinnovationinjournalism

By CLAyTON M. CHRISTENSEN, DAVID SkOk, AND JAMES ALLWORTH

breaking news

Be the

disruptor


COVER STORy

Clayton M. Christensen of Harvard Business School developed the theory of disruptive innovation. Photo by John Soares.


COVER STORy

Itisnotuntilthedisruptionisinitsfinalstagesthatittrulyerodestheposi-tionoftheincumbents.

ANOTHER CLASSIC CASE OF THE INNOVATOR’S DILEMMASohowcantraditionalnewsorganiza-tionssustainthemselvesfinanciallywhileremainingrelevanttotheiraudiencesinthisrapidlychanginglandscape?Wait-ingforonlineadvertisingtomaterializeorhopingforareturntotheoldwayofworkingisfutile.Thetimefordelayhaspassed:Newsroomsshouldembracethisdisruptionhead-onandlookforotheravenueswithinthevaluenetworkthatareripeforgrowthandinnovation.

Drawingonpreviousresearch,thisarticlehighlightsthreekeyareasforthoseinthenewsbusinesstoconsider:

nFirst,we’llprovideaframeworktounderstandwhat it is that audi-ences valueandwhereopportunitiesexistfornewsroomstotakeadvan-tageofthis.

nSecond,we’llexplaintheimpactofdisruptionontraditionalnewsroombusinessmodelsandsuggestwaystoexploit other aspects of the value network toincreaserevenuesanddriveinnovation.

nFinally,we’llexaminethe role of culture and capabilitiesinanorga-nizationandhowbesttomanagethem.Asthelandscapechanges,capabilitiesandculturemayneedtochangetoo—ortheycanbecomealiabilityinthenewworld.

Acautionarynote:Duetotherapidlychangingmedialandscape,someoftheexamplesprovidedinpresentingtheseframeworksmaynolongerberelevant.Thesecasestudiesareintendedtobringtheorytolifeandconveytimelessprinciples.Theunderlyingideasdon’tchange,evenifthefactsinthecasedo.

Thisarticleistargetedtowardtradi-tionalnewsorganizationsthatarebeingdisrupted,buttheissueswe’lltacklearerelevantforallmediacompanies(start-upandlegacynewsroomsaswellasprint,broadcastanddigitaloperations)workingtosustainjournalisminthedigitalera.

part one always Consider the audience FirstDespite what some marketers wouldhaveyoubelieve,wedon’tgothroughlifeconformingtoparticulardemographicsegments.Whileaudiencesarealmostalwaysbrokendowninsuchaway,nobodygoesoutandbuysanews-paperbecauseheisan18-to25-year-oldwhitemalewithacollegedegree.Thoseattributesofaconsumermaybecorrelatedwithadecisiontopurchaseandreadoneparticularnewspaperoveranother,buttheydon’tactuallycauseonetoreadorbuyanything.

Theproblemisthattoomanynews-rooms’strategiesarebasedaroundexactlythisassumption—thattheirbusi-nessescanbestbeexplainedintermsofkeydemographics,pricepoints,ordistributionplatforms.

Instead,abetterwayofthinkingaboutthebusinessyou’reinisthroughthelensofatheorythatwecalljobs-to-be-done.Thebasicideaisthatpeopledon’tgoaroundlookingforproductstobuy.Instead,theytakelifeasitcomesandwhentheyencounteraproblem,theylookforasolution—andatthatpoint,they’llhireaproductorservice.

Thekeyinsightfromthinkingaboutyourbusinessthiswayisthatitisthejob,andnotthecustomerortheproduct,thatshouldbethefundamentalunitofanalysis.Thisappliestonewsasmuchasitdoestoanyotherservice.

Toillustratetheimportanceoffocusingonjobs-to-be-done,letusgiveyouanexampleinatotallydifferentindustry:thefurniturestoreIKEA.It’sbeenincrediblysuccessful:TheSwedishcompanyhasbeenrollingoutstoresallovertheworldforthelast50yearsandhasglobalrevenuesinexcessof$32.6billion.Sowhy,whentherearesomany

furniturestorechainsoutthere,hasIKEAbeensosuccessful?

Abigpartofitisthatratherthanbeingorganizedaroundparticularproductsordemographicprofiles,IKEAisstructuredaroundajobthatmanyconsumersconfrontquiteoftenastheyestablishthemselvesandtheirfamiliesinnewsurroundings:“I’vegottogetthisplacefurnishedtomorrow,becauseIhavetoshowupatworkthenextday.”

IKEAhasmadeanumberofstrategicdecisionsinordertobestfulfillthisjob.Forexample,IKEAstoresareoftenbuiltinquitedistantlocations.Thismightseemcounterintuitive,butitenablesIKEAtosetuphugewarehousessothateverythingacustomerneedscanbepurchasedinonetrip.IKEAofferssame-daydelivery;customersmightnotbeabletofiteverythingtheyneedintheircars,buttheydon’twanttohavetomakemultipletripsandcan’taffordtowaituntiltomorrowforeverythingtoarrive.Similarly,becausehavingchildrenrunningaroundthestoremightdistractthemfromrememberingeverythingtheyneedtobuy,IKEAintroduceddaycarefacilities.Andincaseyougethungryduringyourshoppingtrip,youdon’tevenneedtoleavethepremises—everyIKEAstorehasarestaurant.

EverythingIKEAdoesrevolvesarounddoingthejobof“Ineedthisapartmentorhomefurnished,andIneeditdonequicklyandefficiently.”

Let’slookatanotherexampleofajob—butthistime,wewilluseonethatthemediaindustryismorefrequentlycalledupontofulfill.

Davidisinlineforhismorningcoffee.He’sprobablygot10minuteswhilehe

Be the

disruptor


In 1925, two of the nation’s leading orators, William Jennings Bryan, above, and Clarence Darrow, faced off at the landmark Scopes trial about the teaching of evolution. Hundreds of newspaper reporters converged on Dayton, Tennessee but no account could rival a Chicago-based radio station’s real-time broadcast of the drama. It was the first trial in the U.S. to be carried live. Chicago Tribune publisher Robert R. McCormick had bought the station at a time when other publishers fought to squash the new medium. McCormick, mindful of the potential synergies between radio and newspapers, had changed the call letters to WGN for “World’s Greatest Newspaper.” Photo by Hulton Archive/Getty Images.

DISRUPTIVE INNOVATION


waitstoorderandbeserved.It’sgoingtobewastedtimesoDavidpullsouthissmartphone.HeopensupTwitterandscansthroughhisfeedforaninterestingarticle.ANewYorkerarticlecatcheshiseye,heclicksonit,andstartsreading.Justashefinishesit,thebaristacallshisname;hiscoffeeisready.

Whatwe’vedescribedhereisactuallyahugejobinthemediamarket—“Ihave10minutesofdowntime.Helpmefillitwithsomethinginterestingorentertain-ing.”DavidchosetohireTwitter,buthecouldhavehiredanewspaperthatwaslyingaroundthecoffeeshop.OrhecouldhavehiredagameofftheAppStore.Orperhapshecouldhavestartedreplyingtohise-mail.

Understandingtheworldthroughthelensofjobs-to-be-donegivesusanincredibleinsightintopeople’sbehavior.

Nexttimeyou’resittinginadoctor’soffice,watchallthepeoplewithexactlythisjob:“I’vegot10minutestokill;helpmefillit.”Traditionally,theofficewouldhelppatientsfulfillthisjobbyleavingmagazinesinthewaitingroom.Nowadays,manypatientsfindthisjobisbetterfulfilledbytheirsmartphonesoriPads—allowingthemtocurateandreadthearticlesandwebsitesthatareofinteresttothem,ratherthanrelyingontheofficemanager’stasteinmagazines.Beforethesmartphone,magazineswerepopularbecausetheywerecompetingalmostentirelywithnon-consumption:ifpatientsdidn’tpickupthemagazines,theywereleftsittingtherewithnoth-ingtodo.Butcomparedtoarandommagazine,gettingtoreadwhatthey’reinterestedinontheirportabledeviceisavastlysuperiorchoice.

Similarly,thejobof“Ihave10minutestospare.Helpmefillitwithsomethinginterestingorentertaining”arisesonDavid’scommutehomewhenhe’sonthesubway.HefinishedhisNewYorkerarticlefromthismorning,butunfortunately,Twitterisn’tanoptionnowbecausehiscellphonedoesn’tworkunderground.Atthispoint,formillionsofcommutersallaroundtheworld,onenamepopsintotheirheads:Metro.

WhenMetrowasfirstintroduced,itdidn’ttrytocompeteheadonwiththeincumbentpapers.Infact,formosthigh-endconsumersofnewspapers,itisvastlyinferior.Yetdespitethis,andwhilevirtuallyeverynewspaperhashaditsreadershipdeclineasaresultoftheexplosionofinformationavailableontheInternet,Metronowhasover67dailyeditionsin22countries.

Howhasitdoneit?Well,ithastar-getedthejobthathasariseninDavid’slife.Anditjustsohappensthateveryday,millionsofpeoplearoundtheworldalsohavethisexactjob.

It’smucheasiertounderstandthesuccessofMetrowhenyouviewitthroughthelensofjob-to-be-done.Thejobof“helpmefillthetime”isawidespreadone,butfolkswhoareontheirwayhomefromadayatworkarefocusedononething:gettinghomefromworkasquicklyastheycan.Untiltheygetonthattrain,theirwillingnesstostopforanything—includingtopayforapaper—isprobablyprettylow.However,handthemapaperwithoutaskingthemtopayforit,andchancesare,they’lltakeitfromyou.Withthatinmind,theMetrowasmadea“freesheet”—thecostofproducingitissubsidizedentirelybyadvertisingfrombusinesseshopingtotargetcom-muters.Thestoriesareintentionallymadeshort,punchyandeasytoread.Theaim?Allowreaderstocompletethepaper(andexposethemtoalltheads)within20minutes—whichMetroworkedoutwastheaveragetimespentonatraincommutehome.Withatra-ditionalnewspaper,acopyleftbehindonaseatmeansthenextreadergetsitforfree,deprivingthepaperofrevenue.Incontrast,aMetroreaderwhopicksupacopyleftbehindhasjustsavedthenewspaperthecostofdistributingonemorepaper.Bytargetingthejob-to-be-done,Metrohasdramaticallybuckedthetrendofdecliningcirculation.

Thisisjustoneverysimpleexampleofajobthatarisesmultipletimesinprettymucheveryone’slifeeveryday.

Sohowcanyoufindthesejobs?

ASkING THE RIGHT QUESTIONSAsmanagersthinkaboutwhattheirnewsorganizationcandotothriveinachangingworld,theymustask:

n Whatisthejobaudienceswantdone?

n Whatkindsofemployeesandstructuredoesthecompanyneedsoitcanfulfillthatjob-to-be-done?

n Whatisthebestwaytodeliverthatinformationtoaudiences?

Onewaytofigureoutwhatjobstheaudiencewantstobedone istolookatwhatsuccessfulcompetitorshaveaccomplishedandthenaskwhatpeopleweretryingtodowhentheyhiredthecompetitor.Craigslist,forexample,isanetworkofwebsitesthatfeaturegener-allyfreeonlineclassifiedadvertisementswithsectionsdevotedtojobs,housing,personals,itemsforsale,andsoon.Thesite,foundedin1995,currentlycovers70countries.CraigNewmarkcreatedCraig-slistbecauseheintuitivelyunderstoodaudiences’frustrationwithclassifiedsinnewspapers.Ifaconsumerwantedtopostaclassifiedadinanewspaper,hehadtopay(usuallybytheline)foralist-ingthatmightbeburiedbetweendozensofsimilarentries.Itwasfrustratingforbuyersandsellerstofindamatch.Itwasn’teasytosearch.You’dhavetoputyourphonenumberinthelisting,andyou’doftengetcallsevenafterthesalehadtakenplace.And,inadigitalworld,itwasslow—adswouldtakeadayormoretopost.Craigslisthasbeenhugelysuccessfulbecauseitdoesabetterjobthantraditionalnewsorganizationsofprovidingclassifiedsbymakinglistingseasilydiscoverable,bymakingiteasytohideyoure-mailaddress,andbyallowingconsumerstopostforfreeinrealtime.

Anotherwayistosimplywatchpeopleandgetadeepunderstandingofhowtheylivetheirlives.BothAppleco-founderSteveJobsandAkioMorita,co-founderofSonyCorp.,werefamousfordisparagingmarketresearch.Partofthereasonisthattoooften,consumersareunabletoarticulateexactlywhatitistheyarelookingfor,theirthinking

COVER STORy Be the

disruptor


constrainedbythesolutionsthatalreadyexistinthemarket.TheapproachMoritatookatSony?“Ourplanistoleadthepublicwithnewproductsratherthanaskthemwhatkindofproductstheywant.Thepublicdoesnotknowwhatispossible,butwedo.”Thisideamightseemcontrarytohowmanylargemediabusinessesarerun—butitcanbehugelyvaluableingeneratinginsightfornewbusinessopportunities.

Successfulcompaniesunderstandthejobsthatariseinpeople’slivesanddevelopproductsthatdothejobsperfectly.Andifacompanydoesthis,customerswillinstinctively“pull”theproductintotheirliveswheneverthatjobarises.

THE JOBS ARE CONSISTENT—IT’S THE PRODUCTS THAT CHANGEWhat’sveryinterestingaboutthejobsthatconsumerswantdoneisthattheyareconsistentovertime.Asindustriesaredisrupted,differentproductsemergethatarebetterabletocompletethejob—butthejobstaysthesame.

Thecameramarketisagreatexample.Thesuccessofdigitalpoint-and-shootcameraswasdrivenbythemaddressingajobthatfrequentlyoccurredinconsumer’slives:“Iwanttocapturethismoment,andshareit.”Givenmostpeoples’budgets,digitalpoint-and-shootcamerasfulfilledthejobquitewell,particularlyincomparisontotheirfilm-basedforebears.

However,competitorswhoarebetterfocusedonthejobthatpeoplehirecamerasforarenowkillingthedigitalpoint-and-shootcamera.

Fiveyearsago,camerasonsmart-phones,musicplayers,andothersmallmultipurposedeviceswerevastlyinferiortomostdigitalpoint-and-shootcam-eras.However,thecamerasonthesedeviceshadonebigadvantage:Youwouldalmostalwayshaveoneofthemwithyou.Whiledigitalpoint-and-shootcameraswerequitesmall,theywerestillbulkyenoughthatyouwouldthinktwiceaboutcarryingoneinyourpocket.Ifyouknewamomentforaphotowasgoing

toarise,thenyou’dprobablybewillingtoputupwithit.Butifanunexpectedopportunityforaphotoarose,thenchancesareyouprobablydidn’thaveyourcamerawithyou.

Giventhefactthatthejobofcaptur-ingamomentwouldariseinconsumers’liveswhethertheyhadtheircamerawiththemornot,manypeoplefoundthemselvesincreasinglyhiringthecamerasontheirphones.Manufacturersrealizedthis,andsalesofphonesandotherdevicesthathadacamerainthemexploded.This,inturn,enabledmanu-facturerstosignificantlynarrowthephotoqualitygapbetweentheirproductsandpoint-and-shootcameras.

Butwhathasreallyturnedthescrewsonthepoint-and-shootcameraistheotherpartofthejobthatconsum-ershirethedevicesfor—sharing.PhotostakenonsmartphonesandothermediadevicescannowbeinstantlyuploadedtoonlineservicessuchasFacebook,InstagramandTwitter.Youdon’thave

togohome,plugthecamerain,anddownloadthephotossoyoucanthenuploadthemtoshareontheInternetorovere-mail.Youcandoitinstantly,rightfromthedevice.

Now,therearestillgoingtobethosetimeswhenweknowthejobwillarise,andwe’renotsatisfiedwiththequalitythataphonecamerawilltake.Thesearethetimeswhenwewouldhavehiredadigitalpoint-and-shootforthejob.Butinthisinstance,thepoint-and-shootcamerahasbeensqueezedfromtheotherdirection—byadropinthepriceofdigitalSLRcamerasandtheemergenceofmirrorlessinterchangeablelenscameras.Today,forthreefigures,youcanpurchaseacamerathatismoresophisticatedthan

camerasthatusedtocostfivefig-ures.Thesenewcamerastakephotosthatarevastlysuperiortoapoint-and-shoot,andtheycontinuetogetcheaper,smallerandeasiertocarry.

Usagestatisticsreleasedbythephoto-sharingwebsiteFlickrdemonstratetheappealofcamerasatthelowandhighendsofthemarket,withthepoint-and-shootlosingground.ThemostpopularcamerasforpostingphotosonFlickraresmartphonecameras.Andthemostpopularnon-smartphonecameraonFlickrisn’tapoint-and-shoot,butrathertheCanonEOS5DMarkII—ahigh-enddigitalSLR.

Whilethemiddle-of-the-roadpoint-and-shootwasoncethebestsolutionforthejobgivenmostpeoples’budgets,thatisnolongertrue.Asthetechnologyhasevolved,alternativeshavecometomarketthatarebetterabletofulfillthejobofconsumers.Aslongasthepoint-and-shootmanufacturerscontinuetocompeteagainsteachotherratherthan

refocusonthejobthattheirproductgetshiredtodo,wepredicttheirmarketsharewillcontinuetoerode.

THE ERODING ‘MIDDLE GROUND’ FOR NEWSAswithcameras,journalism’s“middleground”haserodedasnewproductshaveappearedateitherendofthemarketfornewsandinformation.Atthelowend,productsandserviceslikeMetroandTwitterareservingconsum-erswhoseneedissimply“Helpmefillthis10minutesrightnow.”Ifyouweretolookatthemarketonlybyindustryseg-ment,you’dthinkthatTwitter’skeycom-petitorisFacebook.However,wewouldarguethatfarfromjustcompetingwithFacebook,Twitterisalsocompetingwith

Successfulcompaniesunderstandthejobsthatariseinpeople’slivesanddevelopproductsthatdothejobsperfectly.Andifacompanydoesthis,customerswillinstinctively‘pull’theproductintotheirlives.

COVER STORy


newsandmediaorganizationsinfulfill-ingjobsthatmillionsofpeoplearoundtheworldhaveeveryday.

Attheotherendofthespectrum,forthejobof“Iwillbeinanairplaneoronatrainforfourhours,andIwanttobeintellectuallystimulated,”siteslikeLongreadsandtoolslikeInstapaperandPocket(formerlyReadItLater)—thelatterofwhichnowboastsmorethan5millionusers—areenablinguserstofindandsavelonger-formstorytellingforofflineview-ing.Thesetoolsstripoutads,creatingavisuallyappealing,consistentandcustom-izedequivalentofaweekendnewspaperoraperiodical.Andtheyaren’tjustcompet-ingagainstotherappsandwebsites,butagainstanairline’sin-flightentertainmentsystem,TheNewYorker,orabook.

Ultimately,whenacompanygetsitright,audienceswillrewardthemforsatisfyingajobtheyhaveintheirlife.

Asmanagersatmediaorganizationsconsiderinstitutingchangestotheirbusinessmodel—perhapsbychargingforcontentthattheypreviouslyfreelypro-videdonline—theyshouldaskwhethertheirorganizationisdoingsuchanoutstandingjobofsatisfyingconsumers’needsthatconsumerswillpayfortheircontent.Thisisparticularlythecaseifyou’reinacommoditizedspacewhereotherorganizationsareprovidingverysimilarcontentforfree.Inaddition,it’scriticaltoavoidfallingintothetrapofbelievingthatyoucanchargeforcontentjustbecauseitcostsmoneytoproduce.

Instead,thecontentmustbesocompellingthatuserswillpayforit.Thisrequirestargetingtherightjobs.

Oncemanagersestablishwhatjobsconsumerswantdone,aseriesofnewquestionsarisesformanagers:Howcantheyimprove theirexistingproductssotheyperformthejobbetterthananyothercompetitor?Whatexistingprod-uctsarenolongercompetitivelyviableinservingcustomers’jobs-to-be-doneandshouldbecut?Andfinally:Whatnew productscouldbeintroducedthataddressadifferentjob-to-be-donefortheiraudience—orperhapsanewaudi-encealtogether?

part two when times Change, Change Your businessThe disruption of the news ecosys-temhasexplodedwhatwasonceanintegrated,closedworkflow.Newsorganizationsusedtocontrolthegather-ing,packaging,distributionandsaleofthenewsproduct.Today,journalismisadisintegratedandopenprocess.

Whilethesedisruptionscancollec-tivelyseemlikeaterrifyingtransitionforincumbents,theyhavealsocreatedawealthofopportunitiesthatarewait-ingtobeexploitedbytheseverysameorganizations.Newsorganizationsshouldchallengetheirownassumptionsbylookingbeyondtheirexistingbusinessmodelsfornewwaysoffindingvalue.

Togiveananalogyfromatotallydifferentindustry:IBMstartedoutasahardwareandsoftwarecompany,butfac-ingacontinuingdeclineinrevenuefromitsproductsasnewcompetitorsentered,thecompanyshifteditsfocustoprofes-sionalservices.Today,IBMisprimarilyasolutions-basedconsultingcompany.Facedwithdisruption,IBMcompletelyredefineditself,movingawayfromitsfad-ingtraditionalbusinessesandleveragingtheexpertiseofitspeopletocapitalizeonadifferentopportunityinthemarket.

LikeIBM,newsorganizationsshouldlooktoshifttheirfocusawayfrombusi-nessmodelsorientedaroundintegrated,closedecosystemsandembracenewopportunitiesthatthedisintegrated,opensystemhasmadeavailable.Newsorganizationsshouldlookfornewbusi-nesslinesthatleverageexistingnews-roomassetstosatisfyjobs-to-be-done.Theseassetscanbefoundbylookingcloselyatalloftheiroperations.

Again,totakeanexamplefromanotherfield:Whenthemusicindustry’straditionalbusinessmodelofmaking

moneyfromrecordsalescollapsedwiththeadventofNapsterandlateriTunesandSpotify,itwasanunexpectedsource—concerttours—thatresultedinrevenuegrowth.Liveperformanceticketsalesandmerchandisewereonceviewedmoreasamarketingexercisetoincreasesalesofalbums;theyarenowconsideredakeysourceofrevenue.TheInternet-leddisruptionmeantthatvalueaccruedinadifferentpartofthevaluenetwork;asalbumrevenuesdeclined,“360deals,”whichenablerecordlabelstomakerevenuenotjustonalbumsbutalsoontoursandmerchandise,havebecomemorecommon.

Mosttraditionalnewsorganizationsoperateavaluechainthatismadeupofthreedistinctparts.First,thereisthenewsgathering;thiscomprisesalltheresourcesandprocessesrequiredtocollect,write,shoot,edit,produceandpackagenewsandinformation.Second,thereisthedistributionoftheproduct;thisencompassesallthewaysthatnewsorganizationsgettheircontentintothehandsoftheaudience.Third,thereisthesellingofthenews;thispartincludesnotonlysalesandsubscriptionsbutalsoadvertisingandmarketing.

GATHERING THE NEWSBeforetakingacloserlookatwheretofindopportunitiesinnewsgathering,theoverallstateofnewsgatheringandconsumptionneedstobeassessed.Today,morenewsiscreatedandconsumedthaneverbefore.Searchengines,aggregators,blogsandsocialmediaarejustsomeoftheavenuesforaudiencestoconsumeandcreateinformation.Addinsatelliteradio,over-the-topdigitalboxes,smart-phonesandtablets,andit’sapparentthat

COVER STORy Be the

disruptor


COVER STORy

In 1980, when the three major TV networks devoted only 30 minutes to the evening news, Ted Turner bet on a much bigger appetite for current events. He launched Cable News Network (CNN), the nation’s first 24-hour-a-day, seven-day-a-week, all-news network. Its watershed moment arrived in 1991 when it provided the only live TV coverage of the start of the first Persian Gulf War. The live footage of the bombings, picked up by stations and networks around the world, was seen by one billion viewers. Today, CNN International is available in more than 200 countries. Photo by T. Michael Keza for The New York Times.



newsandinformationareeverywhereinabundanceand,increasingly,free.

Thisinformationisalsoavailableacrossborders.NolongerdoesanAmer-icannewsorganizationholdamonopolyoverinternationalnewscoverageenter-ingtheU.S.market.AuthorandXPrizeFoundationCEOPeterDiamandisputitsuccinctlywhenheobservedthataKenyanonasmartphonehasaccesstomoreinformationthanBillClintonhadaspresident.Inthepast,peoplewhowantedintensivenewscoverageofEgypthadtosubscribetoanEgyptiannews-paperorbuyanexpensivesatellitedish.Today,Egyptiannewsisavailableatourfingertips.WhentheArabSpringupris-ingstookplacein2011,theQatar-basednewsnetworkAlJazeerareportedthattraffictoitsEnglish-languagewebsite,wherealivestreamofitsbroadcastwasavailable,increasedby2,500percent—withupto60percentofthetrafficcomingfromtheUnitedStates.

Thewealthofinformationavailablealmostinstantaneouslyhasloweredthevalueofthegeneralinterestnewsstorysuchthatit’softenlessthanthecostofproduction.Generalinterestandbreak-ingnewsreportingcomprisedofanswer-ingthe“who,what,whenandwhere”hasbecomecommoditized.Itcannotcreateenoughvaluetosustainanewsorganiza-tioninthelongterm.

Thevaluefornewsorganizationsnowincreasinglyliesinprovidingcontextandverification—reportingthe“how,whyandwhatitmeans”—andfacilitat-ingcommunitiesaroundthatnewsandinformation.

Considera2011surveybyvideosolu-tionscompanyMagnify.netthataskedagroupofindividualstodescribehowtheyfeltabouttheirincominginforma-tionstreamwhentheywereconnectedtotheInternet.Overtwo-thirdsofrespon-dents(72.7percent)describedtheirdatastreamas“aroaringriver,aflood,oramassivetidalwave.”Mostrespondentssaidtheinformationcomingatthemhadgrownbyatleast50percentfromthepreviousyear.

Clearly,thereisaneedforwhat

JimMoroney,publisherandCEOofTheDallasMorningNews,callsPICA:Perspective,Interpretation,ContextandAnalysis.Thistypeofnewsgatheringrequiresidentifyingtheorganization’smainareasoffocus,inparticularbeatsorverticals,andthenaligningmorereporters,columnistsandeditorstothesesubjectareas.

BillSimmons,sportscolumnistforESPN,becameahouseholdnameforsportsfansacrossNorthAmericainter-estedinhismusingsonBostonsportsteams,basketballandpopculture.Itwasn’tthesportsscoresthatdroveaudi-encestoESPN.com(youcouldgetthoseanywhere);itwasSimmons’sperspec-tive,interpretation,contextandanalysisthatmadehimarguablyoneofthemostpopularsportsbloggersintheworld.

Focusingonparticularspecialtiesalsofreesuptheeditorialteamtoidentifyandorganizerelevantcontentfromaroundthenewsecosystem.Curationlowersproductioncostsbyhavingnewsroomsconcentratemoreondis-covering,factchecking,andaggregatinginformation.Aggregationor“linkingtoyourcompetitors”maybeviewedasanti-theticaltothevaluesoftraditionalnewsorganizations,butitdoesn’thavetobe.

Sometraditionalnewsorganizationshaveachievedgreatsuccessbycuratingcontentfromaroundthenewsecosystemandpresentingitinameaningfulstory-line.TheWeek,founded intheUnitedKingdomin1995,drawsfromover1,000mediasourcesfromaroundtheworldtoofferabalancedperspectiveontheissuesoftheweek—allinaconcise,readablepackage.AccordingtofigurescompiledbytheAuditBureauofCirculation,TheWeekhasseensteadygrowth.Atatimeoftremendousupheavalinthemaga-zineindustry,theweeklyhasexpanded,printinglocaleditionsinNorthAmericaandAustralia.Between2003and2011,theU.S.editionofTheWeekenjoyedacirculationgainof197percent.Thatper-centageincreasewasbiggerthanwhatothernews-orientedweeklymagazines,includingTheEconomist(+93%),TheNewYorker(+10%),Time(-19%),and

Newsweek(-52%),experiencedintheU.S.duringthesameperiod.

Internetstart-upshavecuratedcontentsuccessfullyforyears.Themostwell-knownexampleisTheHuffingtonPost.Launchedin2005,thesitebeganasanaggregatorofcontentfromaroundtheWeb,includingarticlesummariesfromtraditionalnewsorganizations.AcquiredlastyearbyAOLfor$315million,itisnowoneofthemostpopularnewssitesintheUnitedStates,attracting38millionuniquevisitorsinSeptember.

Alongwithcuration,newsroomscancreatevaluebybringingintotheirfoldcontributorswhocomplementtheirowneditorialstrengthsinparticularsubjects.Thisisn’tjustaboutpublishingstoriesbysubjectexperts,butaboutbuildingnet-workedcommunitiesaroundthoseideas.

Taketheexampleof Forbes magazine.ExecutivesatForbesunderstandthatyoucannotrunanewsbusinessandproducequalitycontentinthedigitalerawithacoststructurebuiltforana-logtimes.Thebiweeklypublication’swebsitehaschangedthetraditionalroleoftheeditor.Editorsstillmanagestaffreportersbuttheirworkingrela-tionshipwithfreelancershaschanged.Insteadofgivingthemassignmentsandeditingtheirstories,editorsnowman-ageanetworkofroughly1,000con-tributors—authors,academics,freelancejournalists,topicexperts,andbusinessleaders,allfocusedaroundparticularsubjectsofinterest—whoposttheirownstoriesandareaccountablefortheirownindividualmetrics.AccordingtoLewisDVorkin,chiefproductofficeratForbes,25percentofthecontentbudgetisnowdedicatedtocontributors,whowroteatotalofnearly100,000postslastyear.

Withafocusonnichesubjectsandanetworkofbloggerswhowritepostsandcurateworkonthesesubjectsfromotherpublications,Forbesattractsnewcontributorsandfacilitatesconversationacrossthenetwork,drivingmoretraf-fictothecompany’ssites.AsDVorkindescribesit,“Talentedpeoplewanttobelongtoarespectednetwork,and

COVER STORy Be the

disruptor


that’swhatwe’vebuiltandcontinuetobuild.”Thisnewsystemhasresultedinanetworkeffectwherebycontribu-torsgeneratetheirownloyalfollowingsundertheForbesumbrella.Inoneyear,Forbesdoubledthenumberofuniquevisitorstoitswebsite.Referralsfromsocialnetworksrosefrom2percentto15percentofthetraffictoForbes’sdigitalproperties,andsearchenginetrafficincreasedfrom18percentto32percentofthetotaltraffic.

Everynewsroom’sreportingstrengthswillbeunique,andthechallengeisforthenewsmanagertoassessanewsroom’suniquestrengths.Ifthestrengthislocal

reporting,howcanthenewsroomderivemorevaluefromitscontent?Howcanitexpandlocalreportingcapabilities?Howcanthenewsroomdevelopinnovativeproductsandapplications—andhowcanitdothiswhilereducingthecost?

DISTRIBUTING THE NEWSInsteppingbacktoseewherenewvaluecanbecreated,thenextareathatnewsorganizationscanaddressisthemecha-nismsusedtodelivertheirproducts.Managersmaylooktoexploitthescaleofdistributionandtheequipmentusedtodistributethecontent.

Scale.Newsorganizationsretainauniquevaluepropositionbecausetheycanstillachieveanenviablescaleofdistribution.Evenintoday’sfragmentedmediaworld,aweeklymagazine,eveningnewscast,oradailynewspapercanstilltouchthelivesofhundredsofthousandsofpeoplebothwithintheircommunitiesand,thankstotheInternet,aroundtheworld.Itisimportantfornewsorganizationsto

leveragethisscalebeforetheylosetheircompetitiveadvantage.

Whilenewsconsumptionisontherise,consumptionpatternsarechanging:insteadofreadingentire magazinesandnewspapersorwatchingnightlynewsbroadcastsstraightthroughtotheend,technologyisnowenablingaudiencestoconsumeindividual articlesandnewssegmentsàlacarte.

Capitalizingontheseshiftingcon-sumptionhabitsrequiresthinkingcre-ativelyaboutnewdistributionmodels.

Onewaytoattractafragmentingaudienceisbyexperimentingwithinnovativecustomervaluepropositions.

Aconsumermayfinditdifficulttojustifythepurchasepriceforeachofanum-berofpublications,butasubscriptionpackagethatgivesaconsumeraccesstomagazinesfrommultipleoutletsisacompellinganduniqueproposition.TherecentlylaunchedNextIssuetabletapp,acollaborationbetweenTimeInc.,CondéNast,andthreeothermajormagazinepublishers,isaninterestingexample.Foraflatfee,asubscribergetsall-you-can-readaccesstomorethan40magazines,includingPeople,Fortune,SportsIllustrated,Time,VanityFair,andCondéNastTraveler.

Thismaybetherightapproachforthesecompaniesandtheiraudiences.Oritmaynotbe.However,thequestionofhowbesttosurviveinthenewworldwillnotbeansweredbyhopingforareturntothepast.Instead,nowisthetimefornewsmanagerstoaggressivelyexperi-mentwithnewdistributionefforts.Syn-dicationandpartnershipinitiativescanbepursuedwithonlyaminimalincreaseinthecostsofdistributionbecausethe

costofproducingthecontentisalreadyabsorbedbythecorebusiness.Andtothoseworriedaboutcannibalization,wewouldsay:Ifacompanyisgoingtocannibalizeyourbusiness,you’llalmostalwaysbebetteroffifthatcompanyisyourown,insteadofacompetitor.

Equipment.Equipmentthatisn’tbeingusedtofullcapacityisamissedoppor-tunityforrevenue.Newsorganizationstypicallyhaveexcellentlarge-scalepro-ductioncapabilities,suchashigh-qualitycolorprintingpressesandmulti-camera,professionallylitstudios.Yetascircula-tionandratingshavefallen,manyofthesefacilitiesaresittingdormantor,insomecases,beingsoldordecommis-sioned.Itmakessensefornewsorgani-zationstolookoutsidethecompanyforwaystogeneraterevenuefromunusedorunderutilizedequipment.Potentialcustomersforservicesincludemarket-ingandclient-servicefirmsthatwanttoproducehigh-qualitybrochures,com-mercials,brandedentertainment,andothermaterials.

TheDallasMorningNews investedinnewtechnologyandexpandeditscommercialprintingbusiness,whichnowmakesup5to10percentofitsparentcompany’stotalrevenue.Asmorecompaniesoutsourceprintingjobs,thatfigureisexpectedtorise.AccordingtonewsindustryanalystKenDoctor,com-mercialprintingisagoodbusinesstobeinbecauseitusuallyhasafairlyhighprofitmargin.

Anotherwaytoincreaserevenueistomakefulluseofdistributionchannels.TheDallasMorningNewsdoesn’tdeliveronlytheMorningNewstothedoorstepsofDallasresidents.AsDoctorwroteinacolumnfortheNiemanJournalismLab,“Youwon’tfindaMorningNewsthrowerwithasinglepaper;theytossUSAToday,TheWallStreetJournal,TheNewYorkTimes,andacoupleothertitles.”

Ifatelevisionstationoranewspaperisalreadypayingtogettheircontentovertheairwavesortoadoorstep,managersshouldthinkabouthowtheycanleveragedistributioninfrastructuresuchasdeliv-

Thequestionofhowbesttosurviveinthenewworldwillnotbeansweredbyhopingforareturntothepast.…Andtothoseworriedaboutcannibalization,wewouldsay:Ifacompanyisgoingtocannibalizeyourbusiness,you’llalmostalwaysbebetteroffifthatcompanyisyourown,insteadofacompetitor.

COVER STORy


erytrucksandfiberopticlinestogeneratevaluebeyondtheirexistingchain.

SELLING THE ‘NEWS’Weputquotationmarksaroundtheword“news”herebecausemanagersneedtothinkdifferentlyaboutwhat“news”isiftheyaretofindwaystogeneratenewrevenue.Newopportunitiescanbecomeapparentwhenmanagerschangetheirperspectiveaboutanewsorganization’sroleanditsstandinginthecommunity.Whatcansalesandmarketingteamsdotocreateadditionalvalue?Consultingservices,eventmarketing,andlong-tailrepurposingarethreepossibilities.

Consulting Services.Thereisnowamarketintheprivatesectorforskilledjournalistsandsalesrepresentativeswhocanprovideconsultingservicesforretail,socialnetworking,andentertainmentcompanies,amongothers.TheSocietyofDigitalAgenciesnotedthisshiftinitsmostrecentannualstateoftheindustryreport.Thesurveyofmarketersanddigi-talagenciesshowedthat66percentplan

increasesinspendingonearnedandownedmedia,suchasblogs,corporatewebsites,andsocialmedia.Whenaskedwhatwouldgetincreasedpriorityin2012,forinstance,61percentsaidcon-tentcreationlikeblogs,and57percentsaidmobileWebdevelopment.

AccordingtoJayRosen,aprofessorofjournalismatNewYorkUniversity,“Everycompanyisamediacompanynow.”But,whiletechnologyhasenabledeveryonetobecomeajournalistorbrandmarketeronline,noteveryonehastheskillsortoolstosatisfyanaudience.Newsorganizationscancapitalizeonthisneed.Theymightconsiderlever-

agingtheiremployeestoexperimentwiththe“digitalagency”concept,inwhichnewsorganizationsactasonlinemarketersandprovidetrainingandconsultingservicesforlocalbusinesses.Theseservicescanincludecopyeditingandshowingabusinesshowtosetupawebsite,usesocialmedia,andproduceprofessionaladvertisements.

Thiswouldbringnewsorganizationsclosertotheircommunities,fostermorerelationships,andboostthepotentialforadditionalrevenuesintraditionaladvertising.Itwill,however,needtobedoneinawaythatdoesn’terodethenewsorganization’seditorialintegrity.Theagency’soperationmustbekeptseparatefromnewsgathering.

Events. Newsorganizationsarefre-quentlywellpositionedtohosteventsthatbringdiversecommunitiestogetheraroundsharedinterestsandideas.Revenuecancomefromadmissionfeesaswellascorporatesponsorships.

ThenonprofitTexasTribune,anewswebsitethatfocusesonstatewideissues,

hasmadeeventsacornerstoneofitsrevenueplan—andtheearlyreportslookgood.AsAndrewPhelpsreportedfortheNiemanJournalismLab,theTribunebeganbyhostingmorethan60freepubliceventsattractingleadingpoliti-cians,largeaudiences,andhundredsofthousandsofdollarsincorporatespon-sorships.Lastfall,theTribunehosteditsfirstpaidevent;TheTexasTribuneFes-tivalwasaweekendoftalksanddiscus-sionsaimedatactivists,policymakers,andothersinvestedenoughinpoliticsandcurrentaffairstopay$125foraticket.TexasTribuneCEOEvanSmithtoldtheLabthatheexpects$900,000

inrevenuefromeventsponsorshipsthisyear,plusattendeeincome.

Long-Tail Repurposing. Whennewsorganizationsthinkaboutsellingtheircontent,theytraditionallyfocusonshort-termprospects.Butdigitalcontentneverdisappears.Itcanberepurposed,repackagedandre-soldindifferentformats.Whetherinvideoandstoryarchives,e-booksorresearchpacketsforacademiccasestudies,newsorganiza-tionsshouldthinkabouthowtocreatevaluefromtheircontentbeyondthedailyorweeklynewscycle.

FollowingthearrestofBostongangsterJames“Whitey”Bulgerafter16yearsontherun,TheBostonGlobereleasedthreeofitsinvestigativereportsabouttheaccusedmurdererase-books.Thestorieswerepulledfromitsarchives.JeffMoriarty,theGlobe’svicepresidentofdigitalproductstoldthePoynterInstitute’sJeffSondermanthattheonlyexpensewashiringavendortoformatandsubmitthebookstoAmazonandotherdigitalbookstores.Hesaidtheproductioncostswererecoupedwithinafewdaysthroughe-booksales.

Wehavedescribedsomeoftheplacesthatnewsorganizationscanlooktoseewherenewvaluecanbeextracted.Thereisnoone-size-fits-allmodel,andwedonotexpectthateveryexamplewillworkforallorganizations.However,managersshouldthinkabouthowtheycancapital-izeindependentlyontheirassets.Havinganentrepreneurialmindsetiscriticaltofindingsuccessinthisnewworld.

Oncemanagersgenerateideasabouthowthecompanycanoutperformcom-petitorsincreatingexperiencesthatfulfillconsumers’jobs-to-be-doneandfindnewrevenuewithinthevaluenet-work,theymustfacethefinalandmostdifficultstepinembracingdisruption:implementingchangesinsidetheirorga-nization.Pogo,thestaroftheWaltKellycomicstrip,sizedupthischallengewhenhesaid,“Wehavemettheenemyanditisus.”Itisnosmalltasktogetemployeestochangehowtheythinkandwork.

Managersneedtothinkdifferentlyaboutwhat‘news’isiftheyaretofindwaystogeneratenewrevenue.Newopportunitiescanbecomeapparentwhenmanagerschangetheirperspectiveaboutanewsorganization’sroleanditsstandinginthecommunity.

COVER STORy Be the

disruptor


part three build Capabilities For a new worldFor many years, the systems and processesusedtogather,distributeandsellthenewsworkedwell.Andinmostrespectstheystilldo.Itisamarveloussighttowitnessanewspaperbroughttolifeoranewscastonair,24hoursaday,sevendaysaweek.Thosesystemsweredesignedpreciselyforthatprocess.Butwhatwasonceanadvantagehasbecomeanalbatross.Thedisruptiontakingplaceinnewsroomsrequiresanewapproachbuiltonexperimentation.

Howdoesanewsroom’scultureneedtochangeonanorganizationallevel?Andhowcanthosenewsroomcapabili-tiesbeusedtoembraceandeveninitiatedisruptivechange?

UNDERSTANDING CAPABILITIESTherearethreefactorsthataffectwhatanorganizationcanandcannotdo:itsresources,itsprocesses,anditspriorities.Eachfactorisclearlydefinedbelow.Whenthinkingaboutinnovationandhowanewsroommightbeabletoembraceit,managersneedtoassesshoweachofthesefactorsmightaffecttheirorganization’scapacitytochange.

Resources.Whenaskingthequestion“Whatcanthisnewsorganizationdo?”theplacemostmanagerslookfortheanswerisinitsresources—boththetangibleones,likepeople,equipment,technologiesandbudgets,andthelesstangibleones,likerelationshipswiththird-partyvendorsandadvertisingagencies.Withoutadoubt,accesstoabundant,high-qualityresourcesincreasesanorganization’schancesofcopingwithchange.Buttheresourceanalysisdoesn’tcomeclosetotellingthewholestory.

Processes. Thesecondfactorthataffectswhatacompanycanandcannotdoisitsprocesses.Byprocesses,wemeanthepatternsofinteraction,coordination,communicationanddecision-makingemployeesusetotransformresourcesintoproductsandservicesofgreatervalue.

Oneofthemanagementdilemmasisthatprocesses,bytheirverynature,aresetupsothatemployeesperformtasksinaconsistentway,timeaftertime.Pro-cessesaremeantnottochangeor,iftheymustchange,theydosothroughtightlycontrolledprocedures.Whenpeopleuseaprocesstoperformthetaskitwasdesignedfor,itislikelytobeefficient.Butwhenthesameprocessisusedtotackleaverydifferenttask,itislikelytoperformsub-optimally.Newsroomsfocusingonproducingatelevisionnews-cast,forexample,oftenproveineptatdevelopingadigitalstrategybecausethesecondtaskentailsaverydifferentwayofworking,relyingheavilyonthewrittenwordandimmediatedeadlines—insteadofverbalscriptsandfixedbroadcasttimes.Infact,aprocessthatmakesiteasytoexecuteaparticulartaskoftenisahindrancetoexecutingothertasks.

Priorities. Thethirdfactorthataffectswhatanorganizationcanandcannotdoisitspriorities.Wedefineanorga-nization’sprioritiesasthestandardsbywhichemployeesdecidewhetheranactivityisattractiveorunattract-ive—whethertheactivityisastory,anaudiencedemographic,oranideaforanewproduct.Prioritizationdecisionsaremadebyemployeesateverylevel,whetherconsciouslyornot.Amongsalespeople,theyconsistofon-the-spot,day-to-daydecisionsaboutwhichprod-

uctstopushwithadvertisersandwhichtode-emphasize.Intheeditorialrealm,theycanincludestoryselectionandtheassigningofnewsgatheringresources.Attheexecutivetiers,theyoftentaketheformofdecisionstoinvestornotinnewproducts,servicesandprocesses.

Differentcompanies,ofcourse,embodydifferentpriorities.Ascompa-niesaddfeaturesandfunctionstotheirproductsandservicestocapturemoreattractivecustomersinpremiumtiersoftheirmarkets,theyoftenaddcost.Asaresult,whatoncewereattractivemarginsforthecompanybecomeunattractive.If,forexample,acompany’scoststructurerequiresittoachievemarginsof40percent,thenapriorityordecisionrulewillhaveevolvedthatencouragesmiddlemanagerstokillideasthatpromisegrossmarginsbelow40percent.Suchanorganizationwouldbeincapableofcommercializingprojectstargetinglow-marginmarkets—suchasthosewe’velistedinthisarticle—eventhoughanotherorganization’spriorities,drivenbyaverydifferentcoststructure,mightfacilitatethesuccessofthesameproject.

Forexample,salesteamswhosebonusesarebasedonachievingspecificgoalsareoftenmoremotivatedtosellatraditionalbroadcastorprintadvertise-ment,wherethemarginsarehigher,thanadigitaladvertisement.Giventheprioritiesoutlinedbymanagement,itisunrealistictoexpectthesesalesteamstopursuedigitalpennieswhenapproachingagenciesandadvertisers.Yetthelong-termvalueofdigitalrevenueiscriticaltothesustainabilityoftheorganization,andfailingtodevelopsalesteamcapabilitiesinthisareawillweakentheorganization’scompetitivenessovertime.

Assuccessfulcompaniesmature,employeesgraduallybeginto assumethattheprocessesandprioritiesthathaveworkedinthepastaretherightonesforthefuture.Onceemployeesoperateundertheseassumptionsratherthanmakingconsciouschoices,thoseprocessesandprioritiescometoconsti-tutetheorganization’sculture.

COVER STORy


Oneofthemostcommoncomplaintsmadebynewsroomexecutivestodayisthedifficultyinchangingthenewsroomculturetoadapttoadigitalworld.Whenattemptingtochangeanorganization’sculture,thestartingpointisthetaskthatyou’retryingtodo,nottheprocessorculture.Thisisbecauseprocessesandpri-oritiesarearesponsetorecurringtasks.

CHANGING THE PROCESSES AND PRIORITIES, ONE TASk AT A TIMEProcessesarenotnearlyasflexibleoradaptableasresourcesare,andpriori-tiesareevenlessso.Inordertoinstilltheprocessesandprioritiesrequiredtoaddressdisruptiveinnovation,managersmustcreateaneworganizationalspacewherethesetaskscanbedeveloped.Thereareseveralpossiblewaystodothis,including:

nCreatingnewcapabilitiesinternallyinwhichnewprocessescanbedeveloped;

nSpinningoutanindependentorganizationfromtheexistingorganizationanddevelopingwithinitthenewprocessesandprioritiesrequiredtosatisfynewtasks;or

nAcquiringadifferentorganizationwithprocessesandprioritiesthatcloselymatchtherequirementsofthenewtask.

Creating new capabilities internally.Oldorganizationalboundaries,establishedtofacilitatetraditionalwaysofworking,oftenimpedethecreationofnewpro-cesses.Aprintnewsroom,wherepeoplehavehabituallyfiledstoriesforonemedium,willhaveahardtimechangingtheworkflowtoaccommodatenewtasks.Managersneedtopulltherelevantpeo-pleoutoftheexistingorganizationanddrawaboundaryaroundanewgroup.Newteamboundariescanfacilitatenewpatternsofworkingtogetherthatcanultimatelycoalesceasnewprocesses.

Teamsshouldbeentirelydedicatedtothenewtasksassignedtothem.Themembers—whetherphysicallylocatedtogetherornot—shouldhaveaseparatestructure,andeachmembershould

bechargedwithassumingpersonalresponsibilityforthesuccessofhispartoftheproject.Foreverykeyelementofthestrategy,thereshouldbeoneperson’snamebesideit.AtTheNewYorkTimes,forexample,theboundariesaroundthegroupswithinitsnewsroom’sdigitaldevelopmentteamwerehistoricallydefinedasservingtheneedsofreportersandeditors.WhentheTimesdecideditneededtofocusonexperimentalonlinejournalism,itcreatedanewcross-disci-plineteamtodoso.

ThisteaminsidetheTimes wasdesignedtoincorporatetheskillsofsoftwaredevelopersdirectlyintotheprocessesofproducingstories.AsdigitaleditorAronPilhoferdescribeditinNewYorkmagazine,“Theproposalwastocreateanewsroom:agroupofdevelopers-slash-journalists,orjournal-ists-slash-developers,whowouldworkonlong-term,medium-term,short-termjournalism[projects].”Thisteamwould“cutacrossallthedesks,”overridingoldprocessesasthenewsroomevolved.Developersweremadefullmembersofthenewsteamandgivenresponsibilityassuch;theywereencouragedtocol-laboratewithreportersandeditors,notmerelywaitforassignments.

ThisnewteamisnowknownastheInteractiveNewsroomTechnolo-giesgroup,anditcontinuestocreatenewprocessessotheTimescanmorequicklydevelopbetterproductsarounddatajournalismandinnovativevisualstorytelling,ratherthansimplypostingold-worldnewspaperarticlesonline.

Creating capabilities through a spin-out organization. Economicpressuresmakeitdifficultforlargeorganizationstoallocatethecriticalfinancialandhumanresourcesneededtobuildastrongposi-tioninsmall,emergingmarkets.Anditisverydifficultforacompanywhosecoststructureistailoredtocompeteinhigh-endmarketstobeprofitableinlow-endmarketsaswell.Whenacompany’sprioritiesrenderitincapableofallocatingresourcestoaninnovationprojectbecauseofunattractivemargins,

thecompanyshouldspintheprojectoutasaneworganization.

NewsCorp.’sentryintothetabletspaceisanexampleofthisspin-outapproach.Despitehavingmanywell-knownbrands—includingFoxNews,TheWallStreetJournal,DowJones,andtheNewYorkPost—NewsCorp.’smanagementidentifiedtheconsumptionofnewsontabletsasadisruptiveinnova-tionfortheirtraditionalnewsproper-ties.Asaresult,NewsCorp.decidedtocreateaseparateunitforaniPad-onlynewspaper, TheDaily.Tothriveinthetabletmarket,NewsCorp.neededtobecomfortablewithlowergrossmarginsandasmallermarketthanitstraditionalnewspaperscommanded.Thecompanyneededtobepatientforgrowth,butimpatientforprofits.

AsofOctober2011,theDailyhad80,000payingsubscribersandanaverageof120,000readersweekly;thesenumbersstackupwellagainstthedigitaleditionsofsomeestablishedprintbrands.TheNewYorker,forexample,had26,880iPad-onlysubscribersasofthatmonth,accordingtoAdAge.IftheDailyhadthesamecoststructureasitstraditionalprintcounterparts,itsprospectsofgettingtoprofitabilitywouldberemoteindeed.Butwithatotallydifferentapproach,thelikelihoodofitreachingprofitabilityisfargreater,anditcontinuestoexperimentwithitsbusinessmodeltoreachthisgoal.

Giventhatayoungupstartmaycannibalizethecompany’straditionalbusiness,itiscriticalthatsuchaprojecthavehigh-levelsupportandbeinde-pendentfromnormaldecision-makingprocesses.Projectsthatareinconsistentwithacompany’sexistingprofitmodelwillnaturallybeaccordedthelowestpriorityor,worseyet,facehostilityfromthelegacybusiness.Havingaseparateworkspaceforthespinoutorganizationcanbehelpful,butwhat’smostimpor-tantisthatadisruptivestart-upnotbeplacedatthemercyoftheoldorganiza-tion—whichmightseetheupstartasacompetitivethreatandattempttohaveitshutdownorcauseittofail.

COVER STORy Be the

disruptor


COVER STORy

In January 2009 when a US Airways plane landed in New york’s Hudson River, Twitter users beat the mainstream media on reporting the news. Janis krums was a passenger on one of the commuter ferries dispatched to pick up the stranded airline passengers. He took a photo of the dramatic scene and uploaded it to Twitpic. It was one of the first images of the accident broadcast to the world. It also was something of a revelation to the news industry because it demonstrated how easy technology made it for anyone to be a news provider. Photo by Janis Krums.



Yetthisdoesnotmeanthattheoldoperationshouldbeentirelyabandonedinfavorofthenew.IntheexampleofNewsCorp.,itsrevenuesfromprintandbroadcastadvertisingarestillstrong.Butwhendisruptivechangeappearsonthehorizon,managersneedtoassembletheresources,processesandprioritiestoconfrontthatchangebefore itaffectsthemainstreambusiness.Theyneedtoruntwobusinessesintandem,withonesetofprocessesgearedtowardthepresentandanothergearedtowardthefuture.

Thisneedstobeguidedbytopmanagement.Inpreviousstudiesofdisruption,veryfewcompaniessuc-ceededwithoutthepersonal,attentiveoversightoftheCEO.Morethananyoneelse,theCEOcanensurethattheneworganizationgetstherequiredresourcesandisfreetocreateprocessesandprioritiesappropriatetothenewchal-lengewithoutinterference.CEOswhoviewspin-outsasatooltogetdisruptivethreatsofftheirpersonalagendas,ratherthanorganizationstobenurturedanddeveloped,arealmostcertaintofail.

Creating capabilities through acquisitions. Afterassessingitsresources,processesandpriorities,theorganizationmaydeterminethataninnovativeventurecan-notbeinitiatedin-houseorbycreatingaspin-out organization.Intheseinstances,companiesshouldlooktoacquisitions.Questionsaboutfor-profitversusnon-profiteducationaside,whenTheWash-ingtonPostCompanydeterminedthatitneededtodiversifyitsrevenuestreamanditcouldnotcreatethose capabilitiesin-house,itpurchasedKaplanInc.in1984.

Companiesthatsuccessfullygainnewcapabilitiesthroughacquisitionsarethosethatknowwherethosecapabilitiesresideintheacquisitionandassimilatethem—ornot—accordingly.

Ifthecapabilitiesbeingpurchasedareembeddedinanacquiredcompany’sprocessesandpriorities,andnotintheacquiredcompany’sresources,thentheworstthingtheacquiringmanagercoulddoistointegratetheacquisitionintotheparentorganization.Integrationwill

vaporizetheprocessesandprioritiesoftheacquiredfirm.Oncethemanageroftheacquiredcompanyisforcedtoadoptthebuyer’swayofdoingbusiness,everythinguniqueabouttheacquisition’scapabilitieswilldisappear.Abetterstrat-egyistoletthebusinessstandaloneandtoinfusetheparentcompany’sresourcesintotheacquisition’sprocessesandpri-orities.Thisapproachtrulyconstitutestheacquisitionofnewcapabilities.

If,however,theacquiredcompany’sresourceswerethereasonforitssuccessandtheprimaryrationalefortheacqui-sition,thenintegratingtheacquisitionintotheparentcompanycanmakealotofsense.Essentially,thatmeansplug-gingtheacquiredpeople,products,tech-nologyandcustomersintotheparentcompany’sprocessesasawayofleverag-ingtheparent’sexistingcapabilities.

Forbesmagazine’spurchaseofTrue/Slant,adigitalnews bloggingnetwork,workedwellbecauseitunderstoodwhatcapabilitiesitwasacquiring.Beginningin2008,Forbesinvestedinthedigitalnewsstart-upwhosemarketvaluewasbuiltprimarilyuponitsexpertiseinbloggingplatformsanditsmoreefficientdigital,printandvideocontentcreationmodels.Bydoingso,Forbeseffectivelyincubatedanewdisruptivestart-upasaseparateentity.WhenForbescompletedthepurchaseofTrue/Slantin2010,itappointedTrue/Slant’sCEO,LewisDVor-kin,asForbes’schiefproductofficer,andadoptedarangeofelementsfromTrue/Slant’sbusinessmodel—includingprovid-ingsmallpaymentstocontributorsbasedonpageviews.ThiscarefulacquisitionprocesswasamajorcontributortothesuccessthatForbesachievedinbuildingitscommunitynetwork.

Managerswhoseorganizationsareconfrontingchangemustfirstdeterminewhethertheyhavetheresourcesrequiredtosucceed.Theythenneedtoaskaseparatequestion:Doestheorganizationhavetheprocessesandprioritiesitneedstosucceedinthisnewsituation?Askingthissecondquestionisnotasinstinctiveformostmanagersbecausetheprocessesbywhichworkisdoneandthepriorities

bywhichemployeesmaketheirdecisionshaveservedthemwellinthepast.Theverycapabilitiesandculturethathavemadenewsorganizationseffectivealsodefinetheirdisabilities.Inthatregard,timespentsoul-searchingforhonestanswerstothefollowingquestionswillpayoffhandsomely:Aretheprocessesbywhichworkhabituallygetsdoneintheorganizationappropriateforthisnewchallenge?Andwilltheprioritiesoftheorganizationcausethisnewinitiativetogethighpriorityortolanguish?

Thereasonthatinnovationoftenseemstobesodifficultforestablishednewsroomsisthat,thoughtheyemployhighlycapablepeople,theyareworkingwithinorganizationalstructureswhoseprocessesandprioritiesweren’tdesignedforthetaskathand.

Creatinganinnovativenewsroomenvironmentmeanslookingwithintheexistingvaluenetworkandbeyondtraditionalbusinessmodelstodiscovernewexperiencesforaudiences,thenrealigningyourresources,processesandprioritiestoembracethesedisruptions.

Whilethereisnoonepanaceatoreplacethetraditionalbusinessmodelsthatnewsorganizationsrelieduponforhalfacentury,theserecommendationstakeninaggregateprovideaframeworkforanemergentstrategytotakehold.Innovationrequirescourageousleader-ship,aclearlyarticulatedvision,andthestrengthtostaythecourse.

Clayton M. Christensen is the Kim B. Clark Professor of Business Administra-tion at Harvard Business School and co-founder of Innosight Institute.

David Skok, the 2012 Martin Wise Goodman Canadian Nieman Fellow, is the managing editor of Globalnews.ca.

James Allworth, a graduate of Harvard Business School, is a regular contributor to Harvard Business Review. He worked as a Fellow at the school’s Forum for Growth and Innovation, at Apple, and at Booz & Company.

COVER STORy Be the

disruptor

nieman reports the nieman foundation for journalism ...€¦ · clayton m. christensen, harvard...

Documents