Coats2Coats Consultancy, LLC.

Transcription

1 Coats2Coats Consultancy, LLC Oleander Drive, Sarasota, Florida Status Report St. Louis Public Radio/St. Louis Beacon Merger Exploration Phase I: Evaluating the Opportunity and Creating a Roadmap Executive Summary: April 3, 2013 In October 2012, St. Louis Public Radio General Manager Tim Eby and St. Louis Beacon Editor Margaret Wolf Freivogel announced they had signed a letter of intent to explore an alliance between the two organizations to better serve the public through their combined journalism. The agreement was an outgrowth of conversations between the two leaders about how they might leverage their strengths as non-profit journalism organizations with a strong commitment to community service. In agreeing to explore a more formal alliance, Eby and Freivogel said their discussions would be guided by three shared goals for serving the community: Advancing regional news reporting at a time when many news organizations around the nation are shrinking. Engaging people throughout the region and sharing reporting on air, online and in person. Encouraging vibrant dialogue and driving innovation with new tools in the digital age. Freivogel and Eby also had their eye on another goal that would transcend service to the St. Louis region: The opportunity to create a model for communities across the country that are searching for new ways to expand the flow of high-quality reporting and thoughtful discussions in the digital age. Beyond the sense that the two news organizations with deeply aligned values and approaches to journalism could be stronger working together, there was no blueprint or presumption about what an alliance would look like. Would it be an expansion of existing partnerships on elections and Washington coverage? Would it be an expanded partnership, taking in new content categories? Or would this be a more holistic approach, reaching beyond the newsroom into revenue and business operations? To help them explore the options, Freivogel and Eby engaged the consulting firm of Coats2Coats. Coats2Coats had deep experience with both public media and independent news startup organizations such as The Beacon.

2 The firm had conducted an evaluation of the Corporation for Public Broadcasting s Local Journalism Centers initiative, an effort that aimed to build collaboration on both content and revenue among public media stations. C2C President Rusty Coats designed and executed business development classes aimed at improving the sustainability prospects for local independent news publishers. C2C CEO Janet Coats led cross-platform newsroom integration efforts in both Sarasota, Fla., and Tampa, Fla. Coats2Coats worked with Eby and Freivogel to develop a work plan that would help the two organizations assess the scope of the opportunity and map a path for seizing it. It became apparent in the early discussions during the initial December site visit that the opportunity here was not a partnership or even a merger. Representatives of both organizations described their aspiration to create an organization focused on the digital future in all of its forms on radio, through the website, in the mobile space and in social media. They described an organization that would create smart, indispensible journalism on topics of real importance to St. Louis residents. They talked about finding new revenue sources to sustain that journalism. They spoke of a more engaged journalism, encouraging and participating in the community s dialogue. The real opportunity was to create a new, multiplatform organization concentrated on creating public service journalism for St. Louis and the region. To succeed, this would take more than just a merger of existing assets. It would require a clear-eyed assessment of both strengths and weaknesses, as well as an inventory of gaps in the skill sets needed to execute on this model. It would mean moving beyond simply combining resources to designing a path for the digital future. With this goal in mind, the St. Louis team and Coats2Coats explored the current state of both organizations and the broader media landscape in St. Louis, identifying the key questions and starting work on finding the best answers. This process included: Three site visits by Coats2Coats working with leadership from across all functional areas for both organizations. Review of current job descriptions and staffing. A staff survey to assess multimedia skills for both the newsrooms and the revenue departments. A content audit of both websites. A landscape scan of competing news organizations in the market. Development of a master narrative to guide both the journalism and the organizational mission. Creating a road map for three staff committees content, revenue and governance to answer key foundational questions. Developing a new organizational chart, with narrative describing job functions and relationships. Creating a 100-day plan to guide the project s second phase, with a goal of launching the new structure in July 2013.

3 In this report, we will document the four stages of this first phase of work: Setting the table for an assessment of the opportunity. Creating a work plan for internal stakeholders. Investigating the key issues and delivering findings. Building a road map for the next phase of work. Setting the Table An initial site visit by Coats2Coats in December 2012 to gauge attitudes among the staff about the project identified two major themes: A strong desire in both organizations to build for a future rather than just allowing events to overtake them. Staff members in all divisions across both organizations wanted to secure a future for journalism in the public interest, and they worried about the crosscurrents in both the journalism and the business models that could put that in peril. Deep worry that combining the two organizations might actually weaken their ability to sustain themselves. The revenue staff expressed concern that a combined organization might actually dampen fund-raising efforts (the idea that 1+1=1.5, rather than 2). The news staff worried about blending the two cultures, the impact on the radio content, and the fact that the combined staff still would be working with significant gaps in digital skill sets. With that feedback in mind, leadership of both organizations wisely decided that more investigation was needed before moving to a decision to build a new organization. To make that decision, we needed to understand more about the current state of both their own organizations and the broader St. Louis news landscape. Coats2Coats did much of the research necessary to set the table for discussions between stakeholders representing both organizations. That work included a review of both organizations current job descriptions and organizational charts, identifying both overlaps and gaps. This review also helped identify where each organization was placing its emphasis, both in content and in fund-raising. Using the job descriptions as a baseline, Coats2Coats then conducted a multimedia skills audit of newsroom and revenue staffs for both organizations. The audits showed that both organizations were lacking in some of the key skill sets needed to succeed in the digital environment: facility with data and data visualization; awareness and understanding of metrics; photo and video skills; strong social media capabilities, both in communicating through social media and using social media as a listening post and reporting tool. The multimedia skills audit also uncovered some skills that staff members weren t using in their work lives, but had developed competencies in through personal interest. The

4 audit also gauged perceptions about the news and information needs of the St. Louis market and how those needs might better be met. The results of the skills audit serve as a basis for building the training programs the staff will need in the new organization, and also helped identify skills and talents that will be important in any future hires. Using proprietary methodology developed as part of the evaluation of the CPB s Local Journalism Centers initiative, Coats2Coats conducted a content audit of both the St. Louis Public Radio website and The Beacon website. The purpose of this content audit was to identify the digital strengths and weaknesses of both organizations by reviewing the quality of the content they produce and publish online. As part of the audit, Coats2Coats listened to audio reports, interviews, and public affairs programming that were packaged with the online content for St. Louis Public Radio, but did not review actual newscasts as they appeared on air. The audit, which reviewed content from five week-long periods between July 2012 and December 2012, considered three factors: 1) Journalism Quality. Among the factors we considered were the number and type of sources in stories; whether the story had an investigative element; whether the story was explanatory in nature; whether the story put events in a broader context. 2) Multimedia Quality. Among the multimedia elements we looked for were the use of audio; video; data and databases; curation of related materials, both from the news organization and from other sources. 3) Engagement. We looked for engagement with the community in these ways: through social media; through invitations for readers/users to share; providing information readers/users can act on; in-real-life events. The goal was to review a significant number of stories; to look at coverage within the context of one news week; to look for practices that demonstrate consistency. By looking at weeks across five different months, we maximize the opportunity for seeing enterprising, investigative coverage as well as developing an understanding of what routine coverage looks like for each organization. The audit found: The two organizations had remarkably similar content verticals. Both organizations were emphasizing stories on politics, arts, education, science and technology and the economy. There is nothing but upside when it comes to focusing on the digital future. Neither organization is even close to maximizing the digital experience for users. In fact, both are treating their websites as very flat, one-dimensional media

5 rather than exploiting the opportunities for linking, for interaction, and for creating true multimedia experiences through audio, video and data. There is an opportunity to create a new identity as a news source that truly makes users smarter. Neither organization is consistently producing content that is explanatory or investigative in nature. Curation consists primarily of pointing to resources produced by the news organization itself rather than serving as a guide to smart and deep information from other sources. There is a significant opportunity to heighten engagement with users, as a means of gauging impact, of seeking out new viewpoints in coverage and of extending the reach of the journalism. User comments on stories are the exception rather than the rule on both sites. Social media is used primarily to promote content rather than to engage in discussion. A shift in approach here could both extend the reach of the journalism and deepen the value of the organizations to their audience. It was also important to evaluate where St. Louis Public Radio and The Beacon fit into the broader St. Louis news landscape. To do that, Coats2Coats applied the content audit methodology to other news sites in St. Louis: all broadcast television; KMOX radio; the St. Louis Post-Dispatch newspaper; St. Louis Business Journal; St. Louis American, an African-American newspaper; and the Riverfront Times, the alternative newspaper. The headlines from the landscape scan are as follows: There is a tremendous opportunity to develop a new organization that aims to help the community get smarter about the issues that shape life in St. Louis. There is very little in terms of data beyond crime data and public employee data; there is an opportunity to mine other data categories and to create data of your own that is relevant and useful. Positioning the new organization as the center of expertise on carefully selected and targeted topics is a rich opportunity. Much of the news on the other sites is commodity news. A center of expertise strategy, driven by data and smart curation, will immediately leverage your reputation for distinctive, trusted and valuable content. There is a need to improve the video and audio presence on the sites. While other sites have significantly stronger representations in both of those areas, we again are looking at commodity news. Developing a video/audio strategy that moves beyond commodity into enterprising storytelling on significant issues will also help position you as providers of smart, distinctive content. In January, Coats2Coats returned to St. Louis for a second site visit, to share the findings of their work so far and work with the St. Louis teams to determine next steps. Creating a Work Plan After reviewing the results of the multimedia skills audit, the content audit and the media landscape scan, we moved to the next phase of discussion: Developing a Statement of Purpose to provide a unifying vision for the organization and a Master

6 Narrative to would guide journalism decision-making and help set priorities for using resources. The Statement of Purpose was developed by Eby and Freivogel in consultation with Coats2Coats; a Statement of Purpose is best created by those who are in positions of real decision-making power, who can ensure that resources and priorities flow from the Statement of Purpose. The full Statement of Purpose is included in an appendix to this report, but some of the key elements included: Vision: A vigorous, powerful, forward-looking news organization can light the path to a better St. Louis and lead the way nationally in reinventing journalism as a trusted partner in a better democracy. We pledge to create a common space where fairness and facts prevail, where our region as a whole benefits from the effort and experience of people in its many parts, and where St. Louisans connect with each other, our nation and world. At a time when other news organizations are shrinking, we embrace the opportunity to make public service the focus of our work and the foundation of a strong and sustainable future. Value Proposition for Alliance: Separately, each organization holds valuable assets -- reporting expertise, community knowledge, public trust, different media skills, connection with various parts of the community, and capacity to generate revenue in different ways. Combined, these assets can produce: St. Louis's leading news source, with the reach and substance to enable a fractured region to focus and move forward, and to serve as a major hub in a network of non-profit media organizations sharing a similar public service mission. National leadership in journalistic innovation, with the capacity to simultaneously maintain a high level of quality and to experiment with the tools and forms of the future. A sustainable business model built by mobilizing community and national support in the short term to support long-term development of multiple revenue streams. From the Statement of Purpose, we moved forward to build a Master Narrative. Every community has a master narrative. It is the story of life in that city, the defining characteristics that set it apart from other cities and through which all news coverage can be defined. A Master Narrative also can help define the culture of an organization, which is valuable in thinking about revenue generation and the role the organization

7 plays in the community. We began with a Master Narrative crafted by Coats2Coats as a result of listening to feedback sessions with the two staffs. Freivogel and Eby refined it, and finally a committee of newsroom staffers put their own mark on it. The final version of the Master Narrative is: The St. Louis region is working to reinvent itself to meet the economic, social, political and cultural challenges of the 21 st century. In looking to the future, St. Louis draws from a past rich in reinvention a gateway city that has moved from river port to manufacturing center to biotech hub. Also shaping its journey are the legacy issues that have helped define the city so far: its geographic location as Midwestern city and a river town; overcoming a history of racial division; dealing with the political vagaries of being an urban center in a largely rural state, and a region made up of many parts; a tradition of nurturing uniquely American music and culture. We will take all of these elements into account and, through our coverage, both describe the ongoing process of St. Louis reinvention and engage with it. We will use all of our powers as a news and information organization to illuminate, investigate, challenge and celebrate how this reinvention defines what it means to be a St. Louisan. Refining the final version of the Master Narrative was the first task of one of three committees we created to focus on answering the key foundational questions. Those committees focused on issues related to content, revenue and governance of a new organization. Each of the committees included members from both organizations. The governance committee also drew from other stakeholders, including board members and representatives from the University of Missouri-St. Louis, which holds the broadcast license for St. Louis Public Radio. The committees received a customized charging document, outlining the issues that needed exploration in order to more deeply evaluate both the opportunity for a new organization and the challenges. The goal was to put move into exploring more operational issues, to get a sense of how a new organization might work when it comes to newsgathering and revenue cultivation, as well as how it would be governed. Based on the reports of the committees, leadership of the two organizations would be prepared to make a go/no-go decision about whether to move forward.

8 Investigating Key Issues and Delivering Findings The three committees were given their assignments the week of Jan. 14, 2013, and given a deadline of Feb. 22 for delivering their reports. Committees met a minimum of once a week; representatives of Coats2Coats attended each meeting via conference call to provide guidance on process. While the committees were working, Eby and Freivogel were working with Coats2Coats to develop a working organizational chart to help give shape and form to the new structure. This was another key step by the top decision-makers to begin creating a working model for how the organization would function. In onsite meetings Feb , Coats2Coats met with each committee to review their final reports. The key findings from each committee were: Content Defined the content verticals the newsroom would focus on: Politics, Education, Economy, Arts, Race/Culture/Diversity and Science/Technology/Health. Identified core beats to focus on within each vertical. Identified the need to create distinctive content within each vertical: What makes us distinctive is not the content verticals themselves but how we approach them and how we present them. Identified the distinctive assets the new organization can leverage as: Depth of expertise; compelling storytelling and creative approaches; authoritative voice; explanatory journalism; original investigations; leveraging St. Louis Public Radio s talk show as a means of showcasing expertise; building a data competency. The committee also recommended approaches to the presentation of information and for staffing. The committee suggested that the organization approach the verticals as if they were distinct websites in themselves, each containing layers of journalism that reflect the distinctive assets the organization wants to leverage. On staffing issues, the committee suggested that each content vertical should have a designated subject matter expert, charged with developing or honing deep knowledge of the subject, curating smart content on the subject from other sources and with serving as a player/coach with other reporters. In addition to subject matter experts, the newsroom will need to develop storytelling experts people who have deep and specialized knowledge in the skills needed to tell stories using a range of tools and platforms. Revenue Identified revenue sources across the following categories: events, grants and foundations, individual gifts, major gifts, membership, digital and new media.

9 Analyzed donors to the two organizations and found very little overlap, meaning that there is low risk that a combined organization would cannibalize existing revenue to either side. Determined that combined digital revenue is very low, below $50,000, because there has been very little focus on this revenue stream. Focusing on digital should result in rapid percentage growth from this low base, but it will take time to mature it as a serious contributor to sustainability. Identified the approximate size of the gap between revenue and expenses should the two organizations join forces to create a new organization. Identified the need to develop an endowment to help cover that gap and allow the new organization to get its footing and build revenue-generating capacity. The committee fielded a revenue skills survey that identified the overlaps and gaps in revenue skills. Both organizations are strong in donor-facing activities and events, and both need development in sales and grant writing. The revenue staff expressed consensus that major donors, major philanthropy and digital media hold the greatest promise for revenue development. Finally, the revenue team was most optimistic of any group about what a new organization that combines the strength of both St. Louis Public Radio and The Beacon could accomplish. They new organization has the potential to create a broader, dynamic story for the philanthropic and underwriting communities. Governance The governance committee had the most complex task before it: Determining how a new organization could be structured from two non-profit organizations, each with its own board and its own 501(c)3 tax status for collecting tax-exempt gifts from donors. Add to this the intricacies of blending a start-up organization, just five years old, with a long-standing public radio station, with a staff employed by the university that holds its license. The committee was composed of the leadership of both organizations; board members from both, including members with legal expertise on non-profit organizational structure; and representatives of the University of Missouri-St. Louis. After reviewing a number of different possible governance structures, the committee decided on the concepts that should be written into a Memorandum of Understanding: Objective: To create a vigorous, powerful, forward-looking news organization that will light the path to a better St. Louis and lead the way in reinventing journalism. It is in the intent that the organization will be defined by these characteristics: Be a unified organization with common management

10 All staff of the involved parties eventually will become employees of the University of Missouri-St. Louis. It will be financially self-sustaining. All functions will be unified. There will be one development team and one administrative and financial management team. All reporting and journalism creation will be integrated and unified into a single team responsible for all forms of newsgathering and dissemination. The management team will report to University of Missouri-St. Louis University Advancement. It will maintain 501(c)3 status to collect gifts that are tax-exempt for donors. It will be supported by a policy council of individuals chosen for their ability to elicit donations; create support in the community; provide technical advice or expertise in pushing the frontiers of journalism. The council will advise on policy and not daily operations. Its functions will include management policy, strategy, development policy, governance and financial policy. It will operate under a unified brand. It will maintain editorial independence as a principle of ethics. It will seek partnerships with organizations and institutions within the region that help it meet its objective, including civic, non-profit, commercial, governmental and educational. The University of Missouri-St. Louis will maintain the FCC radio license. The integration of the organizations will take place incrementally until all functions are included. A key element of the committee s success in arriving at a template for governance was the inclusion of stakeholders from all of the entities involved: leadership of both St. Louis Public Radio and The Beacon, representatives from the boards of both organizations, and representation from the University of Missouri-St. Louis. The committee continues with outreach to the full boards and to examine issues of legal structure and branding. Organizational chart While the governance committee tackled the larger issues of overall structure, Freivogel and Eby worked with Coats2Coats to develop an organizational chart for getting work done on a daily basis. The purpose of the organizational chart is to build a new organization that supports the major theme of the master narrative that St. Louis is a city and a region embarked on a course of reinvention. In building that master narrative, this organization will exert its full skills to create journalism that enlightens and engages across multiple media platforms, focusing on radio, online and social channels as well as through events and in-person interaction.

11 The overall structure designed in support of that goal recognizes the need to organize in two ways: around functions and around platforms. At some point in the future, the need to think in platform-centric ways will likely fade away. This structure recognizes that the organization will not begin from that point, and it builds a structure with the flexibility to shift as digital skill sets evolve. The structure proposes a general manager who oversees the entire operation and reports to the University of Missouri-St. Louis. The general manager directs seven departments: Functional departments that focus across all platforms: News: Develops all news content for all platforms; the department is headed by the Editor. The structure recognizes the need to develop content expertise necessary to create truly distinctive content by designating Subject Editors to focus on the content verticals. One subject editor will focus on politics and education, one on science/health and the economy and one on arts and race/culture. Each topic will have at least one reporter who is a subject matter expert. The structure also values and develops storytelling expertise by designating experts in visuals, data, and audio. These experts will be playercoaches, developing content in those arenas themselves will also working to build skills among the rest of the staff. Development: Headed by the Director of Development, this department focuses on revenue generation from three major categories: membership, major gifts, and grants and foundations. The focus in this department is on growing and managing the membership base, giving expanded focus to the world of foundation and institutional grants and supporting the effort to attract individual donors and planned gifts greater than $10,000. Business Development: The Business Development Director is tasked with growing revenue from businesses and institutions aligned with the organization s mission and with growing new (mostly digital) revenue for the organization from nontraditional sources. This department also oversees marketing and special events. Campaign Director: The Campaign Director is focused on the need to build an endowment for the organization, and will direct all efforts in that regard. Working closely with Development and Business Development directors, the Campaign Director will identify prospects for the endowment fund and lead both outreach and final execution on building the fund. Administration: The Administration Director is charged with running the business office in support of the entire organization. The director is also tasked with supervising information technology, both in daily execution and in acquisition of new technology. The director oversees building operations.

12 Platform specific departments that focus on a particular delivery platform: Radio: The Director of Radio Programming and Operations focuses on serving the audience for the on-air programming. This includes the broadcast engineer, production and programming operations (on-air staff and traffic). The talk show remains within this team. The director also focuses intensely on metrics for the radio platform. The director works in close partnership with the Editor and the Director of Digital Operations to define the content needs of each platform and align around audience metrics. Digital: The Director of Digital Operations focuses on serving all digital audiences, including desktop, mobile and social platforms. The director acts as the primary liaison with NPR Digital Services and supervises a community manager who focuses on audience interaction across the digital platforms. The director also focuses intensely on metrics for the digital platforms. The director works in close partnership with the Editor and the Director of Digital Operations to define the content needs of each platform and align around audience metrics. Building a Road Map for Phase 2 With the investigation phase complete and the foundational questions explored, Eby and Freivogel gave the green light to a second phase of work that will lead to launch of the new organization. To guide that next phase, Coats2Coats developed a 100-day Road Map of specific tasks across four areas of focus: 1. Governance: To model and validate the organizational structure and governance of the new organization. This includes populating the organizational chart; testing the organizational chart through scenario planning; completing a Memorandum of Understanding with the University of Missouri-St. Louis; securing approval of both board; aligning the brand. 2. Content: To develop and implement practices supporting the multiplatform strategy. This includes developing an engagement strategy; developing a curation strategy; developing and implementing news meetings; developing a cross-training and skills development plan; refining the newsroom organizational chart. 3. Revenue: To build and validate a sustainable business plan. This includes meeting with stakeholders who are likely to support this plan; developing a 5-year plan; developing and executing a test revenue project; evaluating donor feedback on 5-year plan; determine whether a feasibility study is necessary. 4. Technology: To review and synchronize current technology platforms. This includes reviewing current audience-facing technology; reviewing current

13 internal-facing technology; involving NPR Digital Services; developing a migration/integration plan for all technology, including CMS and CRM. Coats2Coats is continuing its engagement into Phase 2 to assist with execution of the 100-day plan. Conclusion The St. Louis project began with the recognition from Tim Eby and Margaret Wolf Freivogel that they had the power to create something powerful by working together. Theirs is the rare example of truly understanding the power of collaboration. Collaboration means recognizing the limits of your own organization and the work you create. It means understanding that even if you maximize your organization and its work, even if you have it running on eight cylinders every single day, there are things you just won t be able to do on your own. There are audiences you will never reach. There are funders who won t see you. There are communities you just can t touch. Collaboration and partnering, then, provide you a way to reach beyond your own limits. It means that you may have to give up some things certainly some control, perhaps some practices that you are really good at and enjoy. But when you see collaboration as a way of stretching past your own limits, of giving new life and impact to your work, those tradeoffs are diminished and the possibilities expand. In St. Louis, The Beacon and St. Louis Public Radio already have moved past the early stages of collaboration to an effort to create something that is greater than the sum of the parts. The key elements in the process so far have been: Trust between the two leaders at the top of the organizations. A willingness to push past the comfort zone and confront hard questions. A focus on the work and the ultimate goal creating and sustaining journalism in the public interest and a refusal to indulge in protecting any entitlements or personal agendas. Continuous articulation of both the threats of doing nothing and the opportunities that come with doing something bold. A strong working partnership with consultants who have credibility with both organizations and who have deep experience in journalism, revenue and digital platforms. Now it s on to Phase 2, and the test of the work so far: What will this look like when it is built?