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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
Copyright 2012 by the President and Fellows of Harvard College.
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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
4 Nieman Reports |Fall2012
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
Nieman Reports |Fall2012 5
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.
6 Nieman Reports |Fall2012
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
Nieman Reports |Fall2012 7
COVER STORy
Clayton M. Christensen of Harvard Business School developed the theory of disruptive innovation. Photo by John Soares.
8 Nieman Reports |Fall2012
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
Nieman Reports |Fall2012 9
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
10 Nieman Reports |Fall2012
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
Nieman Reports |Fall2012 11
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.
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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
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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.
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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
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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.
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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.
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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.
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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
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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.
DISRUPTIVE INNOVATION
20 Nieman Reports |Fall2012
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