By SDH
There is no doubt that changes are needed at Time Warner’s magazine publishing unit Time Inc. This is the division that has gone mostly untouched for sometime now. Under current CEO Ann Moore, the company unloaded its enthusiast titles to Bonnier Corp, launched and folded the well hyped OfficePirates.com, re-launched and folded Life (which is supposed to re-launch again as Getty Images type web destination), killed Business 2.0 and pink slipped dozens of staffers. OK so all this is business as usual in the magazine industry and not attributed to Moore’s management style. We all know It’s no secret that when a company is looking to cut costs they look to layoff staffers first to fluff up the bottom line. But is that all the shuffling we will see at Time Inc? The company is legendary and publishes 125 titles, and has a slew of businesses in fulfillment, content solutions, retail sales and marketing, customer acquisition and the list goes on. We are not sure how these businesses are doing for the company but some serious streamlining needs to take place in these areas in order to establish a more focused objective. CONTINUED...
MAKING AN EFFORT
The company has been slowly but surely making a push on the digital side. This was one of the reasons why new Time Warner CEO Jeff Bewkes decided to wait and see what will become of this digital push before making any decisions. Fair enough we guess, but even before Bewkes took over, Time Inc was badly in need of a makeover. The company needs to be refreshed with new ideas, objectives and a new structure to better meet the current challenges that publishing companies face. Time Inc for the most part is still stuck in analog while other companies remake themselves to handle the changing climate. If the suits at parent Time Warner want to see some changes, they need to make the first move. For starters, we think a fresh face at the top would kick things off right. Not to discredit Ann Moore, but a change at the top would signal a new beginning and would be a strong statement. Following a change at the top, the company needs to be spun off so it feeds off of itself, officially weaned off mommy’s tit. By doing this, investors and the Time Warner board will see the true value of the company and will probably get a clear idea of the value of each product the company publishes, online, print and the different businesses which sit underneath it.
DECISION TIME
Following a spin off, Time Warner should then take a long hard look at all Time Inc’s products and businesses and decide which ones are no longer worth keeping in the stable and look to unload them via an auction to raise cash to invest in the company’s digital business via strategic acquisitions or R&D. From these auctions, the current roster of 125 magazines should be reduced to about 70-90, and businesses should be streamlined where it makes sense. Hopefully with these reductions the company will see savings on paper, printing and of course salaries following an obvious layoff of staffers. These auctions should only include low performing or none core domestic and overseas titles and businesses. A successful sell off and streamlining of businesses will leave the once bloated Time Inc with some cash and a more lean and mean physique to move swiftly and aggressively towards growing its digital business and strengthening already established brands. Earlier we mentioned a change at the top.
A TRIMMED STRUCTURE
A new Time Inc under a new leader should have a more clear and streamlined structure. For example the magazine groups are currently broken out into 6 areas, Entertainment, Home/Living, Life/Style, Luxury, News/Business & Finance and Sports. Right off the bat both the Entertainment and Sports groups should be merged as one. The Life/Style and Home/Living groups should be merged as one cutting the 6 groups to 4. Such a restructuring would result in instant cost savings. For International, everything needs to fall under the Time Inc brand further pushing the one brand one focus objective.
IN JEFF BEWKES’S SHOES
Standing in Jeff Bewkes’s shoes the two names that would be at the top of our list would be Reader’s Digest Association (RDA) CEO Mary Berner, and outgoing Ebay CEO Meg Whitman. It’s obvious why we would have Mary Berner’s name on the list but you may be wondering why Meg Whitman? Well Meg Whitman has a strong consumer background and understands their behavior on and off the web. These experiences come from her being CEO of Ebay of course, and her being a top executive in Disney’s consumer products division which we think would come in handy at Time Inc. As far as t Mary Berner, since being named CEO of RDA, Berner has wasted no time putting her stamp on the company. She re-lined the corporate suite with people she knows and trusts and is putting some spark back into the company’s flagship publication Reader’s Digest by green lighting a total re-design in print and online under new Editor Peggy Northrop. Any one of these two women would be a good choice to take the reigns at Time Inc. We have no doubt that there are some good male candidates out there but for some reason since Don Logan passed the baton to Moore, we only see another woman after the Moore era ends.
CAN’T ANN MOORE DO THE JOB?
When someone has been in a company as long as Ann Moore has been at Time Inc, they sometimes are blind to certain things. They are sometimes immune to the fact that changes are needed. In cases like this, a fresh mind is needed because Moore may have hit a glass roof with her ideas which sometimes causes a recycling effect. In today’s magazine industry climate, size doesn’t matter, and it’s the size of Time Inc that is preventing it from reaching its full potential. Labels: FEATURE, JeffBewkes, Magazine, MaryBerner, MegWhitman, TimeInc, TimeWarner |