Despite reputation as being stuck in the past, newspapers continue to innovate

http://www.petevanbaalen.com/single-post/2017/07/23/Despite-reputation-as-being-stuck-in-the-past-newspapers-continue-to-innovate

If I randomly asked someone to label the newspaper industry, some of the words they would say might be:  old, dying, not relevant, boring and stuck in the past. As much as those words hurt, there is some truth to them. But on the flip side, I see a lot of innovation going on that is exciting that leaves me with hope for the future of the industry.

Recently, I hosted an idea exchange for member newspapers of the Hoosier State Press Association. The hour long discussions on revenue ideas for newspapers were anything but old, boring or stuck in the past. Yes, there was good discussion on special sections and other tried and true products that are a part of newspaper's past. Yet even those have such unique twists on them that they would barely be recognizable to what the industry was doing when I first started selling advertising.

Three categories of innovation were a big part of the discussion, showing the evolution of newspapers into the 21st Century. There was plenty of discussion on events, unique ways of connecting with locally owned and operated businesses and of course digital marketing.

Larger daily newspapers were the first to jump in and start doing events, and that is still happening today. But on the call, it was great to see large and small daily newspapers sharing their successes on event marketing. Let's not forget weekly newspapers, which have also discovered ways to connect with their readers by creating unique events in the market, and the resulting profits too. Recruitment revenue has been tough to come by for many newspapers in the traditional sense. A way of recapturing that lost revenue is with job fair events, one of the easier events I think you can put on. Pinterest has helped inspire many people to start doing their own crafts, and has inspired many newspapers to put on local craft shows, highlighting the talents of the area. Several newspapers have jumped into events focused on women, which makes sense. Women drive the majority of consumer spending, so creating engaging events to match their interests is a recipe for success. Newspapers across Indiana are tapping into new profit opportunities with general interest women's events as well as mom's night out type events.

Connecting with locally owned and operated businesses was another common theme. Working with the businesses along Main Street is not new, but the approach many newspapers are taking is. There were several different approaches, but the common theme was to work with mom and pop stores who are fighting to stay competitive with the big box stores. Tying in local promotions to the Shop Small program launched by American Express the Saturday after Thanksgiving is one approach. Other newspapers have programs throughout the year to encourage people to live local and shop local. One newspaper in southern Indiana partners with the local chamber to create a shopping program with local merchants that tracks the dollars generated through the newspaper promotion. It continues to grow every year.

Digital transformation continues to happen in the newspaper business. What excited me about the digital ideas shared was that they weren't traditional digital display ads. Newspapers are already looking past the basic opportunities and trying to innovate, perhaps  getting ahead of the curve for a change.

Many of the innovative ideas had or could have traditional elements attached to them like special sections. We should not turn our backs completely to what has worked in the past, but try to build and improve on those opportunities. There are still a lot of newspapers that are stuck in the past. But I remain encouraged by the innovation that continues to occur.

Three key business lessons from watching the movie "The Founder"

http://www.petevanbaalen.com/single-post/2017/07/02/Three-key-business-lessons-from-watching-the-movie-The-Founder

I grew up more of a Burger King fan as a kid, in part because my oldest brother used to be a manager at one and would con me into mowing their lot in exchange for a Whopper, fries and a Coke.  As I’ve gotten older and with a child of my own, McDonald’s has become the fast food establishment of choice. After watching the movie “The Founder”, I now have a deeper appreciation for fast food in general and more specifically the impact McDonald’s has had.

In my mind, the movie generated three key takeaways for businesses.

1.       Develop a tight process

2.       Vision without passion will only take you so far

3.       Get all the details down in writing

Early in the evolution of McDonald’s, the two brothers Dick and Maurice worked tirelessly on creating efficiency in the process. They were so fast getting food out to the customers, then a revolutionary idea, allowing them to increase capacity and thus profits. In the movie, the brothers go to a local tennis court and use chalk outlines to create potential layouts to scale for their kitchen areas. It took hours of effort on their part and those simulating the work and three layouts before they figured out the basis for their layout. While many things have changed, there are still elements in place today at thousands of McDonald’s restaurants that originated during this time, including the burger slide and the tool that delivers a measured squirt of mustard and ketchup on each burger.  Over 60 years later and a process is still in place is a testament to just how tight a process is.

I’ve been to Des Plaines, Illinois and knew that was the site of the original McDonald’s. Only I was wrong. The original was in San Bernardino, California; the one started by the two brothers. It was Ray Kroc’s first franchise store that opened in Illinois. It was the McDonald’s brothers who had the vision of creating a fast food establishment, the golden arches and even a franchise of restaurants all over the country. When Kroc stumbled on to McDonald’s, they already had a few franchises set up out west. But it was Kroc’s passion that brought quick, affordable hamburgers to seemingly ever city and town in the world.  Kroc was the ultimate sales person, with enough passion and work ethic to overcome a lot of obstacles to find success. Passion won’t necessarily work without the right vision, and without passion even the best vision won’t lead you to success necessarily. A lot has been written about Kroc and his passion, and how that passion created casualties along the way including this piece from Forbes Magazine.

Perhaps the two biggest casualties were Dick and Maurice McDonald’s themselves. Surely, you might be thinking, the originators of the concept ended up wealthy beyond your wildest dreams. The riches went to Kroc, who bought out the McDonald’s family for what amounted to $1 million each after taxes according to the movie.  Kroc, at the last minute refused to put into his contract buying them out a deal to give them .5% of the company’s profits forever. Michael Keaton, who brilliantly portrayed Kroc in the movie said that they would just have to trust him on this and that they would see the profits. They did, and he didn’t. The McDonald brothers had the leverage, and likely would have got Kroc to put it in the contract but they caved without anything being in writing. That handshake deal instead of getting things down in writing has cost that family billions of dollars so far. And with every passing day, that total like the number of burgers made continues to grow.