A Strategy Simulator for Newspapers: Overcoming “Silos” to Do Whole-Enterprise Planning

Gary Hirsch, Vincent Giuliano, Melody Winnig International System Dynamics Conference

New York

July 22, 2003

Challenges to Newspapers

• Declining readership and advertising market share• Downward spiral, cannibalism; consolidation had

reached its limits• Mired in traditional management model--

functional silos• Cautious exploration of online opportunities, but

clash with print-dominated thinking

Purposes of Simulator

• Help newspapers examine management issues from strategic, whole-organization perspective– capital investment and technology

– staffing

– marketing, pricing, promotion

– content (editorial/advertising mix, special supplements)

• Understanding dynamics of online business– totally unfamiliar to newspaper managers

– learn through management gaming

– difficult, because “game” was a moving target

Purposes of Simulator (Cont’d)

• Explore transition to online– Investments required to build critical mass

– Coordination with print operation (e.g., advertising sales, use of editorial content)

– Begin thinking about strategy at the enterprise (media company) level

Development

• El Universal of Caracas, Venezuela served as laboratory for development and testing– 150,000 daily print circulation

– ambitious online activity

• Miami Herald provided additional insights and evaluation

• Belo chain, Arizona Central Group provided additional evaluation and feedback