Thursday, March 26, 2009

Why The Flint Journal will Fail

If all goes to plan, effective June 1, 2009 The Flint Journal, along with sister papers The Bay City Times and The Saginaw News will adopt a three day per week print product distribution ending an era of a daily newspaper in Michigan’s fourth largest city which stretches back over 100 years. Don't expect this to last and here is why:While management of the paper touts the availability of news seven days per week on Mlive as an outsider one must consider the following reasons this plan, like the previous two buy outs, along other hair brained schemes will fall short: Bad management, poor execution, lack of a well thought out plan, inadequate funding, understanding competition, insufficient marketing or research, inability to adapt to a changing marketplace and failure to keep overhead costs low.One could end this denunciation here and now simply focusing in on point one- bad management. In Other cultures, specifically Japan- when an organization fails supervisors take the sword and responsibility for it. Another example is professional sports. If the Yankees or Tigers fail to win consistently, they fire the manager. The Flint Journal rewards incompetent managers by promoting them or reassigning them. From there, management shapes their staff of mediocre minions and lackey losers. The same team of retreads that brought you the first two buyouts and a failing product are the architects of the latest restructuring. ‘Nuff said? I wouldn’t want to be a passenger on that Exxon Valdez.Remember In Touch, In Depth and Involved? Wasn’t that the feel good trilogy of the past decade? So the company issued a few half-assed internal memos with logos they paid way too much for and flung in futility this ill-fated concept to oblivious readers and advertisers. Failing to execute tangible results from this nebulous effort contributed to the financial ruin now at the doorstep of 200 E. first St.Thinking clearly eludes The Journal’s higher echelon also. Word is in the last five months Peter Principle management has fired or laid off their top classified producer, their top national advertising producer along with a veteran production employee who sharpened their own skill set at every turn to help the company was laid off in favor of an employee who retains their job on the basis of nepotism. Adding insult to injury are the 25-50% pay cuts those who remain are offered while they are told “you’re lucky to have a job.”Failure to fund future efforts will plague the three-day a week paper too. Taking shortcuts and underpaying performers by the publication is a recipe for disaster. In the past the Journal ran on the cheap, taking eons providing modern technology to their sales staff, expecting them to sell with stone knives and bear skins. If red ink is flowing faster than employees are being dismissed, proper funding will not be there.A culture of arrogance has been the history of the paper, with those possessed with the most self-importance occupying management positions. This has led to past instances of ignoring or not understanding threats to the paper. Don’t expect this to change. The Journal is already cooking numbers regarding Mlive. Saying Mlive is the top newspaper web site in the state is deceiving- the site serves eight markets. Unique to Flint, there are plenty of opportunities for competition to come in with a web based news site, or, a daily paper. Word is management feels by going to three days a week will only reduce revenues by 25%- based on that alone the paper will cease to be in a few months.As mentioned before, the paper has cut loose human capital that supported valuable research. This will result in millions of dollars left on the table, or, in a shrewd competitor’s pocket. Marketing at the Journal is nothing more than a country club designed for one or two events- those who care in this department are overworked, underpaid, overwhelmed and discouraged from giving suggestions for fear management might be shown up.We’ll finish up here on the final two points- arrogance and incompetence tie in heavily to the Journal’s inability to adapt to a changing marketplace. Why many who drew a paycheck from the paper have been heard saying as recently as a year ago that newspapers will never die and advertisers will always need them. Where the hell have they been? What kool aid have they been drinking? The publisher stated this week classified revenues were heavily responsible for falling revenues, yet, no changes have been made to management or the model of the department for years- except for driving out revenue producing people or ideas. Mlive is difficult to navigate and mediocre as an advertising opportunity. Yet, throughout the latest in buyouts, layoffs and salary reductions don’t expect to see those who rule the roost to take a financial hit. They’ll still be overpaid ineffectual bunglers who burglarized Flint and Genesee County of its daily newspaper, and in the not too distant future- the three day per week paper as well.

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