9.
PREPARE THE GROUND

In 2000 the US Newspaper industry revenue was $65 billion. By 2012 this had dropped to approximately $20 billion. A morbid website sprang up – newspaperdeathwatch.com. In the UK, 242 local newspapers disappeared in the seven years from 2005. This was not a change that CEOs were used to; it was something completely different. No one knew what was next or what they were going to do.

One newspaper that has managed to weather the storm is the Financial Times, published in the UK for an international readership. With its distinctive pink paper, the FT, as it is affectionately known amongst its loyal readers, provides market-sensitive information and high-quality journalism to the business world.

Steven and a colleague have been working with Ben Hughes, deputy global CEO of the FT and Global Commercial Director, and his management team for the past three years. Ben describes how the FT learned to manage the transition from the known (print) world to the new unknown (digital) world.

“Although I had seen this gradual trend, it really hit home to me in the summer of 2012 when our online revenues and circulation passed our print revenues and circulation for the first time. I remember looking at a 35-slide strategy presentation and only one slide was devoted to print circulation and advertising. In a very short space of time our print circulation in the US dropped rapidly. This was the moment of the ‘tilt’ and business would not be the same after that.”

The FT signalled its intentions internally with the slogan “Digital First.” The senior leadership team met quarterly over several years to engage in what the business could do to prepare for the complexity surrounding changes in the industry. The changes were happening so fast that even radical ideas were put forward. The finance director was adamant that FT could succeed as a business without print and maintain a viable online business.

The team had to manage the tension between embracing the future and recognizing and honouring the past. They decided that it was not a case of choosing the future over the past, but of being able to re-purpose the present print business and explore new opportunities in the digital arena simultaneously. Although print revenue has shrunk, it still contributes an important and significant income to the business.

“While I believe that we must do all we can to clearly and decisively embrace the future, I think one of the mistakes of leaders working with the unknown is to dismiss and not to honour the present enough,” says Ben.

To strengthen the business, the FT reaffirmed what it was originally known for – high-quality editorial content. FT columnists are known for their integrity and depth of analysis and moreover the unreliability of information published on the internet has triggered a flight to quality by readers willing to pay for it. This was highlighted during the 2012/2013 Leveson Inquiry into the UK press that resulted from the phone-hacking scandal in 2011 and the revelation of highly dubious journalistic practices. The FT remained unblemished.

Like all newspapers, the FT has had to make changes to staff numbers. Ben recalls a moment of truth for staff at the paper: “One of the most important lessons in working with the unknown for us was about being open and honest in communication. I remember speaking to a group of staff after they had seen a change in numbers of staff. I told them that I really wished I could sit in front of them and promise that this is the end of change but I could not tell them this. I told them that while other companies might not appear to be making changes, we didn’t think ignoring the future was an option.”

Ben and the FT senior leadership team were able to prepare the staff for the changes ahead, and make the transition to a new reality by building a bridge between the past and the future. They created a safe enough space for people to manage their anxiety about the unknowns ahead by honouring what they were good at, building on the existing strong structures of the business, and communicating openly and honestly. By honouring the loss of what was the case in the past and celebrating the potential opportunities that lay ahead of them, the FT was able to ride the wave of change in the industry rather than be swamped by it.

Another way to prepare the ground for the unknown is to demonstrate “skin in the game.” This signals an unwavering commitment to the journey ahead that inspires and motivates others to follow. Sherry Coutu is one of the world’s experts in bridging technology, entrepreneurship and education. She has been recognized by Wired magazine in the top 25 most influential people in the technology world. She holds board and advisory positions including Raspberry Pi, Founders4schools, LinkedIn, Artfinder, Care.com, and Cambridge University Press.

Sherry has a strong track record of bringing together stakeholders to make things happen. Recently she founded “The Cambridge Cluster Map,” a company that takes data from Companies House and LinkedIn to produce a map of which companies are growing the fastest. To date over 1,540 companies, totalling £12.3 billion, have been mapped.

“This was a difficult project as it involved getting data from government, which has additional layers of complication,” says Sherry. “One of the key things that helped this project succeed was demonstrating a firm commitment in the face of the unknown. Putting in my own money to back the project. Others came in when they could see how I was committed personally."

Some sponsors were happy to come on board if Sherry got three companies to commit to the project. However, her accomplishment was that she managed to get all six that she wanted. She explains that one key lesson she learned from this experience was that we do not know what we are capable of until we hear other people’s stories. “Often the simple fact of exposure can be the seed that leads to discovery of more and the fulfilment of potential that otherwise may have gone untapped.”

Sherry’s ability to demonstrate “skin in the game” gave confidence to others to come on board and invest in a high-risk venture that had many unknowns.