Hear All About It, Hear All About It: Innovation

By Rich Wellins, Ph.D.

“Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to choose the latter.” Thomas Jefferson, 1787

A few weeks ago I had the opportunity to speak at a one day event for newspaper executives at the Frontline Media Club in London.

My own view of newspapers reflects that of Mr. Jefferson over 220 years ago. However, there are many that feel the words news and paper have become two separate entities.  With new ways to access news, the newspaper industry is facing unprecedented challenges. And, the current environment has not helped circulation or ad space.

Before and during the event I engaged in a few intriguing conversations with Terry McGuire, past chief legal counsel for the Federal Communications Commission and a true expert in the industry. He told me that in the late 70’s the early wave of technology had entered the scene and he warned a similar group of CEO’s to innovate or die (my words, not his).

For many corporations, innovation has moved up in the list of business priorities yet, progress has been slow.

Many of the presentations in the morning of the conference were pleas for radical change—for more innovation. I began to ponder the wisdom I heard in a different speech three years ago at our Client Summit. Jonas Ridderstrale, author of Funky Business and Karaoke Capitalism, made a number of important points two of which stuck in my mind.  Any industry can grow through innovation and the ability to do so reflects on the quality of senior leadership.

No sooner had I stopped reflecting that Dr. Rainer Esser, the Managing Director of a German newspaper, Die Zeit got up to bat. Homerun! In a recession year their sales went up, their profits are up, their circulation is up! No small feat. The German newspaper market is extremely competitive. The Die Zeit success has nothing to do with luck. Their leadership team seems to pull off one innovation after another:

• Column duels between a highly conservative and a highly liberal editor.
• Recruitment of Helmet Schmidt the ex-German Chancellor as the Managing Director.
• Over 100 live events. Many on college campuses with editorial staff and guest speakers to build their brand.
• Passion for their customers that extends beyond surveys to in-depth interviews.
• Significant digital exposure including website, numerous blogs, etc.
• Based on the strength of the brand, a successful merchandising program.
• A “weekly” reader for use in the school system not only for educational purposes, but to build a relationship with newspapers.

When I asked Dr. Esser to single out the most important element of his newspaper’s success it was the leadership team. They spend time debating new ideas, new business models, and new ways of delighting their customers. Dr. Esser even hinted at some frustration with the countless hours devoted to new ideas. But, at the end of the day, he says, it was well worth it.

Dr. Esser was spot on. Any industry has room for innovation with the right top team in place. A team that can dream, a team close to customers, and a team, most of all that thinks ‘why not’—rather can not!

Rich Wellins is senior vice president at Development Dimensions International (DDI).