Ink Tank

10/21/08: Here Lies Radio

A message about the death of radio, from Radio Ink Publisher Eric Rhoads

A harsh, bitter-cold wind blows across the worn gravestones as the somber men in black lower radio's coffin deep into the frozen ground. She has outlived her friends and family, and there is no one present to mark her passing. There are no flowers, no mourners, and the only people present are the cemetery crew, who pull up the backhoe to shovel the dirt into the grave. No clergy is present to boost the spirits of the living and send the deceased into the afterlife, no friends or family to toss a handful of dirt or a rose on to the coffin. The plain tombstone says simply, "Here Lies Radio: November 2, 1920- November 2, 2009."

Doom and Gloom:

It seems like everyone is mourning radio's death already. Members of the NAB board were reportedly moping around and sharing their stories of doom and gloom at the recent board meeting, which was like a wake for radio. Friends phone me with their stories, their worries, and their whining about the business and the problems they face. Clearly, there is uncertainty about the economy, the election, and our weary advertisers. Here in San Francisco, one giant Toyota dealer whose breakeven requires him to sell 1,700 cars every month sold only 60 cars in September. Reports say one out of five car dealers, our biggest advertiser category, will go out of business. What are we to do?

Will You Bury Radio?

Look, I'm as frightened as the next guy. If radio suffers, I suffer. But the bottom line is that there are things we CANNOT change and there are things we CAN change. We cannot change the economy. We CAN change our personal outlook. Though I'd love to wallow in your misery for a while longer, I refuse. It's time to stop the fear and kick yourself into the reality that you had better do something. You can start with your own head. Change it. 

The other day, following the market crash, my first instinct was to react. "Cut back now" is what my intellect told me to do. "Wait, Eric" is what my gut said. I realized that if I reacted immediately, I'd be putting the livelihoods of my employees (and their families) at risk. Though, like you, we have cut every possible excess in our company and then some, I knew my reaction would cause a chain reaction -- and so will yours. Your terminations will impact local businesses, as will their terminations, and so on, and so on. Therefore I decided that I am going to try to hold on to the status quo as long as possible, even though there may be sacrifices. Why? I don't want to put the economy in worse shape and I don't want to lose my most valuable resources. For me, that single attitude adjustment, to not overreact, has helped my state of mind and reduced the gloom. Naive? Perhaps.

Failure Is Not an Option

I cannot speak for you, but I refuse to fail. I refuse to allow radio to fail. Therefore, my personal oath is that failure is not an option. Radio will survive at all costs and will emerge stronger. Like you, I don't need a pep talk right now and a bunch of mumbo-jumbo words about how great things are going to be. Chances are this will be the struggle of our lifetimes. My father always tells me that the blue steel, the strongest steel, is made by exposure to high temperatures and fire. We will go through the fire and emerge a stronger industry. But it must start with your refusal to accept failure.

Hit the Reset Button

Let's be honest. Our advertising has not exactly been strong for the last seven years. Thankfully, our audiences remain strong, but maybe this fire is just what we need to force us to reinvent. I, for one, don't want to be in an industry that settles for the 5 percent-7 percent crumbs, if that. If you're going to do something, why not be the best? Why not be the most successful? Yes, it's easier said than done. But if you were inventing radio today and were getting ready to launch it, what would you do first? YOU'D GO TO THE CUSTOMERS FOR IDEAS. 

It's time to CHALLENGE ALL ASSUMPTIONS. Why do we do what we do? Why do we sell the way we sell? Why do we run the commercial units we run? Since we make most of our revenues from ad units, and since that revenue is dwindling, why not decide to make all of our money elsewhere? Why rely on commercials anymore? Chris Anderson of Wired says money made in the future will be made on the concept of Free! There is nothing written that says we must make our revenues from commercial units and advertising as we know it. Why not experiment with something new?

Aluminum Siding 

My dad used to own a manufacturer of aluminum siding. One day I sat in on a meeting with his ad agency when he said, "Every one of our competitors shows before-and-after photos in their ads. Your challenge is to sell siding without before-and-after photos. You need to reinvent the way siding is sold." They did. If I were running a giant radio group today, I'd invest to fly in the top 10 minds who are not in radio and ask them to reinvent how radio should generate revenue. I'd bring in people like Ester Dyson, Paul Saffo, Richard Saul Wurman, Mike Hawley, Nicholas Negroponte. We have a dynamic product that reaches everyone every day, yet advertisers are not clamoring. We've been fighting for advertising dollars and we never get what we think we deserve, yet we know how radio can build a local business into a local powerhouse. We've seen the results when it's done properly. But, for whatever reason, we have not convinced others to be attracted by what we offer. So why keep beating our heads against the same wall? Let's change the game. I don't have the answer, BUT creative ideas, like receiving shared revenues from iTunes Tagging, could generate millions of dollars. Let's reinvent and turn things upside down. We have to look for more solutions like these.

Investing in the Future

Some smart cookie will find a way to buy up the stock of some of our radio companies and get the bargain of a lifetime. Radio stocks may be grim right now, but radio has a great future, albeit one that may require reinvention. This downturn will result in fresh ideas, new approaches, and new ways of doing business. The starting point is our willingness to seek new ideas, listen to ideas different from our own, and take action. For instance, I have a programmer friend who has reinvented the way live radio is done, providing a stellar product cost-efficiently. Another friend has reinvented the way he sells radio in his local market, and he is taking 60 cents of every radio dollar out of the market. Another believes he has found some significant answers by employing the "lean" process, in which he is expert, to radio. Yet, in all three cases, they cannot get the attention of the people running radio companies, all of whom could benefit from fresh ideas. Most who say they want new ideas don't seem to be exploring them. If we seek answers, and we don't block ideas with "That will never work" or "We can't do that," we will reinvent, with success.

The Best Buy Model

One of the benefits of being invited to the Google conference was the new friendships I made. One such friendship was with Brad Anderson, the CEO of Best Buy. Brad shared how his employees reinvented Best Buy through the use of technology. By employing different interactive-tech solutions, he empowered his 165,000 employees, down to the lowest levels, and offered them a chance to place their reinvention ideas in front of all their fellow employees. Employees posted their ideas, and other employees voted on them by investing in "stock" in the ideas, with employees buying the "stock" based on how strongly they believed in an idea. The system let Brad track acceptance of ideas by store, region, and state to see which ideas the employees believed in.

Having involved the employees, Brad had to respond to the ideas and couldn't play the top-down "Here's a reason that idea won't work." As a result, Best Buy reinvented itself, came up with many great initiatives, and improved its business significantly. In one case, the design of every store in the chain was changed based on the idea of one clerk at a small-town Best Buy. In another case, the entire order-entry system was reinvented because of the input of a salesperson at the store level. The Best Buy model Brad told me about is not to have autocratic decisions made by top executives, but for decisions to be pushed to the local store level with strong employee participation. What if radio were to listen to the ideas of its employees? What if radio got away from "McDonald's-like" franchise systems (which don't seem to be working anyway) and moved back to local managers making local decisions? After all, employees are the rubber that meets the road and are closest to customers and listeners. What if radio had interactive systems that gave employees and advertisers the ability to give us their ideas, while other employees and advertisers voted on them? No idea is a bad idea. Now is the time when we need to try everything. 

Mourning Has Broken

It's time to stop mourning the death of radio. It's not dead. It's not dying, and it won't die unless you give up. Enough is enough. We need to face the music and deal with adversity while being proactive, inventive, and innovative. When AM radio was dead, it was adversity that resulted in its reinvention and the rise of talk radio. This is really no different. Things are always darkest right before the light. This is the dawn of a new era of radio. It's up to you, and it starts with your belief that we will survive, we will thrive, we will find a way to get through this, and we will emerge stronger. It starts by seeking the positives and not sharing the negatives. 

When someone gets me on the phone and starts whining about the economy, I either change the subject or try to change their perspective. NO MORE WALLOWING IN MISERY FOR ME. What about you? What leadership are you offering your employees and your co-workers?  So, rather than talking about what you've lost in the market and how gloomy things are going to be, let's talk about what we can gain. Sometimes a fresh start is the best possible opportunity. Fortunes were made during the Great Depression. Market dominance often shifts during recessionary periods because market leaders stop advertising to cut expenses while underdogs get aggressive and build their brands at a lower cost and with less resistance. How can radio take advantage of this opportunity? Let's turn this lemon into.... well, you know.

Eric Rhoads

Publisher

Radio Ink

eric@radioink.com

PS: Your radio station, your personalities, your influence on the local business community can have a HUGE impact on the local and national economy. I know that disaster sells and may be good for ratings, but.... let's all take great caution with the words and message we utter on the air and on the streets. Maybe radio as an industry needs to use the power of its airwaves to change the outlook of America and make them see the positives.  If we believe that 94 percent of Americans listen to us every week, and if we believe that a major part of changing the outcome of the economy is the confidence of America's people, then radio can change the world. It starts with YOU.

PPS: The crew at Radio Ink is working hard to make sure that our magazine is reflecting things that radio can do to reinvent itself. We'll also make sure our conferences, like the upcomingForecast Conference (Dec. 2, New York), theCONVERGENCE Internet conference (Feb. 9-10, San Jose) and the Hispanic Radio Conference (May 6-7, Los Angeles), are focused on fresh solutions and new ideas for radio. Our Forecast conference is already seeing some unusually early registrations; probably a result of the need for new ideas. Our Co-Chairmen, Jeff Smulyan and Drew Marcus, are working hard to create a conference that is relevant to the current state of radio and solutions we can explore.

10/20/08 Melding Media

The role of a program director today has changed significantly from days past. Programmers should not only be tuned in to research and the content and sound of their stations, they are now responsible for a mini media conglomerate. Radio stations no longer produce just a daily broadcast; no matter the format, stations today are in the newspaper business and the television business, juggling multiple forms of distribution via Internet and mobile devices. 

A few months ago, I wrote about a local newspaper that had purchased a video truck with a microwave mast. The paper showed up local news events, shooting video and getting it "on the air" immediately via its website and e-mail blasts to readers. Meanwhile, a local television station was filming the same events, but not broadcasting them until the 6 o'clock news and only serving video online after the story had been aired. Thir roles had been reversed: The newspaper -- which knew its content was outdated before it hit the press -- had become a trusted local video outlet that was getting the news out first. It was a significant cultural change for the newspaper, which realized that its brand mattered more than its distribution method. By redefining the 100-year-old brand, the paper was able to revive its dying revenues. 

But local TV stations are not all playing dead online. In addition to offering video from their newscasts, some stations are featuring additional video produced just for the web. Others have, for all practical purposes, become print journalists, with their websites becoming virtual paperless newspapers. By soliciting citizen journalists, these stations post video from viewers' cellphones that their own cameras could never reach. Television stations are offering podcasts, and some are offering branded video streams in various formats. 

Today's radio program director must understand the complexity of the audience, and the interactivity they want and need. This is the first time in history that consumers have had a strong enough feedback mechanism to take control, and mass marketing has become a thing of the past. 

A great radio station website allows for user feedback, citizen journalism through audio, video, and the written word, and community video coverage (radio's next big growth arena). It is fully interactive, but every component reflects the essence of the brand and its meaning. 

Yes, it is a giant job to keep every element of the station focused on all these things, while also keeping the air talent focused on updating their MySpace and Facebook pages and on Twitter-ing their status moment-by-moment to serve their core listeners. But every radio station must do what listeners expect to remain competitive — and what listeners expect is radio, online, mobile, video, podcasting, and more. And keep in mind that the Web has also empowered new competitors who can create local brands out of thin air and do all of the above, commanding audiences and advertising. 
Media is melding, and today's programmer must reflect this new climate. Radio’s reach and power can drive incredible success if we meld our stations into super-local multi-media outlets. 

10/15/08: How Radio Can Rescue Local Retail

I'm going to ask you to do something that may make you uncomfortable.

In fact, most of you will get the hair up on your back, or send e-mails telling me why I'm an idiot for what I'm about to suggest. Sadly, only 2 percent of you will take my suggestion, and the other 98 percent will find fault with it. The good news is that the 2 percent will gain favor with advertisers. 

Is there a way to get advertisers to spend money in radio during these lean times? Maybe. The indirect nature of this strategy may make you uncomfortable, but I ask you to keep an open mind, because it is a huge opportunity for radio.

My Biggest Fear
What I am about to share must be carried out very delicately and with perfect finesse. My fear is that your natural competitive instincts will kick in, like a tiger being asked not to bite. I’m afraid you'll default to what you know, and, as a result, you'll not only hurt your own reputation, you'll tarnish the reputation of radio. This plan carries some risk, but it also carries some reward.

THE PLAN:

1. Phone the market manager of every radio station in your town and invite them to a meeting ASAP.

2. All radio stations in town will be given an opportunity to participate in a local advertiser event, which you will create together. All stations must agree to participate equally, even though some may have more stations and some will want more credit.

3. Stations must put aside all competition and not try to gain special advantage in this event.

4. Invite every retailer in town to a four-hour conference packed with sessions, experts, and advice on boosting business in lean times. Advertise it on the air. Mail out invitations. Hold the event at a local hotel ballroom with an impressive array of food and drink following the sessions. It will NOT be about radio advertising or individual stations. Do not send the signal that this is designed to get them to advertise. Radio in your town will get credit for putting this event on, and you will reap the rewards for your goodwill.

5. Develop an agenda of experts: The sessions should be a combination of recession strategies, business cutting strategies, marketing strategies. Get the mayor and the head of the local chamber of commerce to speak briefly about growing the local economy.

6. Do not pitch radio. Do not allow your salespeople to pitch radio, or to even push for appointments. The ONLY exposure should be brief introductions to the local managers and a pamphlet that you will create called Strategies for Small Business in a Tough Economy. Highlighting radio's strengths, it can have ads for stations and listings for all participating stations in the back.

7. Give away some impressive door prizes just to keep things exciting. You want about 10 percent of the attendees to win something nice -- thanks to radio.

8. Open the event with something like this: "During times like these, we need to work together. All of the local radio stations organized this conference to see what we could do to help local businesses. You have our guarantee that today we will not try to sell you on radio. We will make no pitches, and our people have been instructed not to talk about radio unless you have a specific question. Today it’s about you, not about us. Please consider this our gift to you, because we know if your business suffers, our business suffers, and our local economy suffers. "

9. Hire a court reporter to record the event (or videotape it) and send it to all advertisers as a follow-up. Include the names and contact information of all the local radio stations involved and a copy of your booklet on strategies.

10. Close the event by repeating the call to work together, and remind them to pick up a copy of the pamphlet. The more subtle, the more powerful the message will be. Let the gesture speak for itself.

THE INVITATION:

Urgent Meeting: 
Local Business Summit to Strategize About Overcoming Current Economic Conditions
Specific Action Items Your Business Can Implement Today

Dear Local Business:

The state of the economy is hurting your business, which in turn hurts our community. In an effort to help local businesses, we have assembled several experts to alert you to tools and techniques your business can employ to improve business now. 
By following these techniques, you can emerge stronger, more profitable, and with higher market share when things improve.

(List experts, with photos)

We will hold one four-hour session: Date, time, location.
RSVP

This conference is being created and organized by the UNIFIED local radio broadcasters. Our goal is to grow your business and keep our community strong. 

No-Pitch Guarantee: We guarantee that we will not pitch you to advertise on radio, and no one will approach you about radio advertising at this session. There is no obligation.

Why You Should Do This
It's the right thing to do. If radio as an industry is known for helping local businesses without asking anything in return, we will improve our image in the eyes of retailers. 

No one gives anything for free. People who attend will expect to be pitched and will be amazed that you actually hold to your word. Radio will look like it is actually trying to do something for the community, because it is. With no obligation and no pitch, radio will be elevated in the eyes of all in attendance. If they follow the advice and it works, radio will be the benefactor when things get better. You'll be remembered. Plus, as they employ some of the strategies they learn, they might buy radio now. It will also raise the question of why others have not done a similar seminar. Others will follow, but will be late. Radio needs to be first.

Why You Should Not Do This Alone
Lift the tide for all of radio. Every station will benefit, and you'll have 10 times more retailers present than if you held a single-station event. If all the stations in town promote this on the air, businesses will come out of the woodwork. This is about growing radio. If radio gets credit for helping local retailers, the laws of reciprocity will kick in and they will help radio.

The Importance of Unity
Our industry is unified for the first time I can remember. Groups are working together to grow radio, to build HD, and to reposition radio for a positive future. Why not do this locally? The brand of radio in the community will see increased respect and credibility.

Let Me Hear From You
I'd love to hear how it goes, and I'll publish photos in Radio Ink. I'm happy to offer ideas on sessions and to help in any way.

One Thing I Learned at the Google Conference
When I attended Google's recent invitation-only conference, I listened to people who had changed the world. These were regular people who saw a problem and wondered, "What can I do to address this problem? What skills, what leverage do I possess to make change?" In my little way, I want to help the economy. I know in my heart that radio can help businesses, in a good or bad economy. I know that businesses that promote in a bad economy often emerge as market leaders while their competitors sleep. And I know that my relationship with you might motivate some of you to put local businesses together using the power of radio to promote change. It's my way of helping. Please do something. Don't let it be someone else's responsibility. Forward this message to colleagues around the market, pick up the phone, and get something started.

Thanks for listening. Let's go help local retailers now.

Eric Rhoads
Publisher
RADIO INK

PS: With every recession comes a power shift. Those who invest in themselves and their businesses when others do not will find themselves in leadership positions when they emerge from a recession. Wouldn't it be nice to see radio emerge in a leadership position because we bothered to help our fellow local businesses in their time of need? We should help because it's the right thing to do, but there certainly could be a side benefit.

PPS: Again, in my own little way, I want to help radio. One of the ways I can help is to bring in focused, relevant speakers and sessions to deal with the issues of the day at our three conferences like the upcoming Forecast conference in New York on December 2nd. My co-chairs, Jeff Smulyan  and Drew Marcus, and I have made some last-minute left turns in the agenda (some not even reflected on the website) to make sure we're addressing this tough economy for the radio industry. I've also confirmed some killer speakers, including William Bennett, former U.S. Secretary of Education (1985-1988) and Drug Czar under the Bush administration. I've also confirmed Mort Zuckerman, billionaire chairman of Boston Properties, publisher and editor of U.S. News and World Report, and publisher of the New York Daily News. He'll be interviewed on stage by Talk Radio Network host Monica Crowley, who will be the next cover of Radio Ink. I went after Zuckerman and Bennett because of their expertise on economic issues, and for a post-election overview. I hope you'll attend. It's important to continue personal growth, and Forecast  has become an important event for predicting the state of our industry for the coming year. To hold your seat, call 

561-655-8778

.

10/06/08 Reach For The Stars

One of the finest hotels in America could not seem to get the five-star rating it deserved. Everything was perfect: pristine grounds, first-class accommodations, exceptional service. Why, then, did customers give this hotel such poor reviews? 

The management had paid attention to every detail but one — the parking attendants. 

When customers left the hotel and gave their ticket to the parking attendant, the wait dragged on. Not only were the employees disorganized, they were disgruntled — and every customer caught the attitude. In an otherwise fine establishment, the customers saw this one flaw as major. 

The hotel manager met with the parking attendant and heard their grievances. As part of the interview, he asked each attendant to recite his job description. He was told their job is to park cars.

The manager officially fired them all — and rehired them as frontline ambassadors. 
This simple — almost silly — move helped the attendants understand how their attitudes affected the hotel. The reassignment of purpose changed the entire image of the hotel, which ultimately earned its fifth star. 

I Speak From Experience 
Every encounter your radio station offers customers impacts not only your own reputation, but the reputation of radio in general. If an advertiser calls a radio station for the first time and encounters a problem, you may have pushed away a radio advertiser forever. 

Years ago I was determined to sell a particular New York advertiser on radio. The owner was known for not believing in radio, and my rep firm had never succeeded in selling her. Although she controlled millions of dollars, radio got none of it. I managed to arrange a lunch with her and quickly learned the problem: She had moved to New York only five years earlier from a town in the Midwest where she worked for a small advertising agency. She had used radio to some success, but at one point her client asked her to cut all spending for six months. She received scathing phone calls and negative pressure from many of the radio stations she had been using (but not from other media). She vowed never to use radio again. Who knew that this small local advertiser would end up controlling a multimillion-dollar budget for an agency in New York a few years later? I never sold her. 

A Lasting Impression 
The image of our frontline ambassadors – our salespeople – is hurt by radio’s practices. What impression do we give clients when they meet a new rep every 90 days? Or work with 20 reps in five years? How do they react to the pressure from salespeople who will lose their job if they miss budget? How does radio look when people sell clients schedules that can’t work, just to get some revenue on the books? How do people feel about us when we whine about not being on a buy? What signal do we send when we go around the agency after not being bought? 

I don't want to suggest that we should not keep pressure on our people or try every possible way to get business. But I don't recommend any behavior that makes radio look bad, because the impressions we leave can last a lifetime. I tried radio and it doesn’t work comes from not having the guts to walk away from business that lacks proper frequency or relevant creative. 

Radio suffers image problems. I hear it from managers and sellers every day, who hear it from prospective advertisers every day. It starts with your frontline ambassadors. Your local attention to detail could impact the radio industry as a whole. 

Have you evaluated every touch point your station has with customers? Who are your frontline ambassadors? How are they keeping you from getting your star? 

09/15/08 Playing The What If Game To Save Your Business

Those who don’t know history are destined to repeat it. 
— Edmund Burke 


Did you know that whale oil was once a giant industry in America? It was owned and dominated by two young entrepreneurs named Rockefeller. Fortunately for them, they played the what if game. What if whale oil is no longer needed to light homes? While their competitors clung to their fortunes, the Rockefeller brothers began investing in crude oil. Their what if game made them the richest men in America. Their competitors all folded. 

Have you played the what if game lately? Let’s play. 

- What if XM and Sirius try to merge? “It will never happen,” I heard from most of you. “The FCC and DOJ will prevent it.” Of course it came true. Could playing the what if game have prevented it? (And now that it has happened, how can we take advantage of it?) 

- What if the recording industry convinces Congress that radio should pay a performance tax on songs played on the air? Five years ago you probably would have said it will never happen, yet it’s gaining ground today. What impact will that have on your business? How many stations will refuse to pay the tax, and convert from music to talk? 

- What if advertisers decide that “push” commercials are no longer effective, and shift their entire budget to online advertising? If you think it can’t happen, read Veronis Suhler Stevenson’s predictions. What would you do to generate revenue? 

- What if the FCC takes broadcast spectrum away from radio stations? Can’t happen? Anything can happen when the government is involved. What if Congress decides they could generate more revenue from selling the spectrum for other use? What if they require a percentage of our revenues in return for use of the airwaves? What if they make us pay upfront? You can defend this with arguments about radio’s use of the airwaves for public service, etc., but broadband and satellite radio can accomplish the same thing. 
-
- What if every car manufactured has a high-speed broadband Internet connection and access to tens of thousands of online radio stations? What if those stations provide localism, but are not owned by traditional broadcasters? What if the online component of your radio station became more important than your transmitted signal? 

- What if the government reinstates the Fairness Doctrine so that every comment uttered on talk radio has to be matched by a voice sharing the other side? How will that impact ratings and revenues? Remember: Talk radio was nothing until the Fairness Doctrine was repealed and Rush Limbaugh was spawned. 

- What if the government decides that radio should do more public service and localism? Oh, that’s right — they’re trying to do that now. What if they decide what formats are on the air, and how many of those formats can be in each market? They did just that until about 1980, and they could do it again. What if they force you to do news for an hour in the middle of each day? Or a daily show for the less privileged? Or 10 minutes of local news every half hour — but online radio does not have to? Seems silly, but it could happen. 

- What if we looked at ourselves as media companies instead of radio companies? How would we change the way we do business? Wake up, we are in the media business, not the radio business alone. 

- What if an ad tax is legislated for radio? (It’s being raised now in many states.) How will radio survive if additional taxes are levied? 

Every assumption we live under must be challenged. Though many will say, “Eric, don’t borrow trouble,” I believe the what if game can save your business from extinction. How are you investing for the future of your station or company? 

09/01/08 Career Advice For A Grad … And Everyone Else, Too

My friend sent me an e-mail that his daughter Bethany had landed a killer job at a local television affiliate. We’ve known her since she was a little girl, and we’re very proud of her. Because I would hate to see her make the same mistakes I made, I sent her this business primer. It’s a good reminder for all of us. 

Dear Bethany: 
When I accepted my first real job offer, my father gave me some advice. Sit down with your boss, he told me, and ask these questions: What are your expectations of me? What do you want me to accomplish every week? Every month? Where do you want me to be a year from now? In what ways do you want me to grow? What is the best way to communicate with you? 

Managers often forget to lay out their expectations — so people can’t possibly meet them. Make it your responsibility to ask, and get specific. Meet those expectations every day. Then, find ways to communicate what you’ve done; I recommend a weekly report spelling out the expectation and how you met it. It’s a way to convey that you are on task, as well as a tool for communication with managers who often don’t know what you’re doing. If you’re out of site, you’re out of mind. In the least intrusive way, seek feedback on your performance. 

My father also taught me this invaluable lesson: Doing your job will get you nowhere in life. The people who get promoted are the people who exceed expectation every week. Did you ever hear the saying “If you want something done, give it to a busy person”? It’s true. Some people are good at getting lots of things done. Be one of those people. 

The downside of exceeding expectation is that your co-workers won’t like it. It makes them look bad. Be a team member, and don’t throw others under the bus — but do more than everyone else, and you’ll get the promotion. 

Thanks to my father’s wisdom, I’m in a position now to add some of my own sage advice: 

1. Attitude is everything. Managers don’t want to hear whining, they want to hear “I’m on it.” During my career I’ve encountered very few I’m on it people. Most will tell you how busy they are, how they don’t know if they can find the time, etc. Those people don’t get promoted, and in tough times are the first to lose their job. A great attitude buys you respect. 
2. Take on more. VP/Operations Tom Elmo is the number one person in my company. When he started at age 24 I was instantly impressed. He not only did the job well, he exceeded my expectations. He did more, did it better, and did it fast. Tom never wastes a moment. He’s like a tornado. Over the years when I've needed something done, I've often skipped asking the person who should do it because I knew they'd complain, make excuses, or not do it well. Tom would nail it fast and perfectly. He started out making little money, and today he is my highest-paid employee. Be like Tom. 
3. There are two kinds of people. Get it done people and get it done well people. Doing the job may be enough, but finding a way to improve it by offering fresh alternatives is always better. 
4. Gain respect. Ask your boss if it’s OK to make suggestions for improvement. With some bosses it’s not OK. In my company I have people who speak up and some I never hear from. Though I may think I have all the ideas, I don’t, and I respect people who share their thoughts on how to improve the product or the system. 
5. Be a proactive solver. It’s frustrating to hear: How do you want me to solve this problem? I’d rather hear: I ran into this problem, and I’ve developed five solutions. This is the solution I recommend, and here’s why. Shall I go forward? Bring solutions, not problems. Before long, you won’t even have to ask. But make sure you tell them the problem and your solution in your weekly communication. 
6. Do it with a smile. Bosses and co-workers prefer to be around upbeat, happy people. If something that falls outside of your job description needs to be done, step up to the plate and do it. You’ll stand out, and you’ll gain respect. It may be a menial task, but saying so will blow your credibility. Be willing to do what it takes. 
7. Don’t be political. Stay away from gossip. Never talk about others behind their back. 
8. Avoid office romance. Someone always loses, and people will lose respect for you. You will never be looked at the same way. 
9. Maintain your integrity. If you are unhappy after a short time on the job, be patient. Perhaps you’re being tested. Try to stay at least two years. If you decide to seek other employment, inform your boss and ask for assistance. “I’d like to move on to the next level, but rather than finding a job and giving notice, I’m hoping you can help me figure out the right strategy.” Most bosses respect this and won’t push you out, although some will. It’s still best to be proceed with integrity. Try to avoid working for competitors; you’ll get more help that way. 
10. Don’t play games. Employees who give ultimatums such as: “If you don’t do X, I’m quitting,” may succeed by having the boss over a barrel — but the boss will lose respect for you and will seek the next possible opportunity to replace you. It’s simply bad business. 
11. If you’re not contributing, move on. Being stuck is not good for you or for your company. If you’re not growing, you’re going backwards. 
12. Share your goals: If people know your goals and dreams, they will help you achieve them. Everyone needs navigation to get where they want to be, but without goals you don’t have a roadmap. Stay in touch with friends and business colleagues for the rest of your life. Let others help you, but don’t be a user; no one likes someone they hear from only when they need something. 
13. Make others look good. When you take care of others, they will take care of you. Don’t take credit for everything. Help your colleagues shine. It’s better to build others than to build yourself. 
14. Don’t believe your own press. When you have great success, be careful not to lose yourself. At the end of the day, what matters most is being a quality person. 
15. Don’t suffer fools. If possible, write them out of your life. If you can’t, distance yourself from them. 
16. Be a sponge. Most people go to work and then go home to play. The people who grow are continual students, studying their industry, reading business books, learning to grow. Real pros are not stagnant. On the flip side, play is important too. Don’t work so much that you become a useless drone. A relaxed, playful mind is a productive mind. 
17. Sleep eight hours each night. Well-rested people make better employees. It’s a fact. 
18. Manage your reputation carefully. People you barely know can have an impact on your career. Your reputation is paramount. Don’t burn bridges. Be known as someone who is trusted, reliable, professional, upbeat. Everything you do will reflect on your career. 

08/18/08 It's Not The Economy, Stupid

Bill Clinton was known for his successful 1992 campaign line, "It’s the Economy, Stupid.” But what if I told you it’s not about the economy this time? Not when it comes to radio. Chances are you'd call me stupid. 

No doubt the economy is horrific but there may be more to the story. Radio may be in the midst of a perfect storm: a faltering economy, the state of old media, radio’s negative press, the Internet, and a change in generational control. 

Five years ago, Radio Ink columnist and author Roy Williams told us we had better brace ourselves because a new generation was taking over that would change everything in business, including the way media is bought and sold. He said that media considered old and stodgy would suffer. It appears this prediction may have come true. 

Radio's problems are not all a result of the economy. Radio is suffering a perception vs. reality problem. Young advertising decision-makers are in control, and their desire to be forward thinking has inherently placed old media at a disadvantage. Radio is being lumped with old media. And all old media are on the decline. Newspapers are experiencing the most severe spending reductions in history. Television and cable have also been on a downward trend. Radio has seen seven years of negative growth, not even reaping its usual benefit from advertisers abandoning television to reduce costs in a down economy. No matter how strong radio listenership remains, we are still considered old school by the new school. 

Ad buyers and planners under age 35 are changing the direction of all advertising nationally (which trickles down locally), as they’ve watched the audiences of companies like MySpace and Facebook grow exponentially within months without a dime of advertising spent due to the power of interactive word of mouth. Major national and regional dollars are shifting away from traditional media to nontraditional interactive media, which is instantly accountable and trackable. 

The perception of being old media has placed radio at a psychological disadvantage in the minds of the new guard. Young minds have always wanted to follow what's new. Radio must attack its perception problem. We still have great strength but unless advertisers believe it, we will continue to be lumped with old media. 

Telling radio's story in a PR push might help a little but reinventing radio as a sexier new medium would be better. Saying it, however, isn't enough. Radio not only needs a fresh new story along with reinforcement of our strengths but also must show real change that will appeal to the new power structure. We must be fully integrated with the interactive and mobile world (not just have websites), and we must offer instant trackability and accountability like Google. If you're running a radio station the interactive department can no longer be an afterthought. It needs the importance and prominence of the programming and sales departments because it actually becomes both. This must be radio's big push. Because when the economy is again healthy and radio ad sales aren’t, we will wish we had focused on the interactive agenda sooner. 

08/04/08 The e-Mail That Never Came

In our recent 40 Most Powerful People in Radio issue I wrote a missive about how radio needs to change. Though I have received countless correspondence about that editorial message, I have not had one response from a member of the 40 list. Here is the e-mail I wish I would receive: 

Dear Eric: 
I read your letter to those of us on the 40 list, and I want to respond. I’m frightened more than I have been during any time in my career. Nothing seems to be working. With all of my years of experience and the expertise of my people, everything we try is failing. The economy is horrible, advertising locally and nationally is horrible, and ad dollars are migrating away from radio. Your letter was the slap in the face I needed. You’re right; we’re not investing in radio, and we’re not following the core essentials radio needs in order to succeed. 

Though you talk of investing in radio, fat chance. You and I both know this is the fight of our lives, and we cannot possibly spend an additional dime. We are in survival mode. 
But here is what I can do without spending a dime: 

1. I will start trusting my people and giving them more autonomy. One person cannot have all the answers, so I’m going to stop dictating programming from a corporate perspective. I’m going to stop telling my managers what to do. Instead, I will offer a resource if they need it, and allow them to do what they want to do with the budget they have. 

2. I will quit putting all my eggs in one basket. I’m going to stop making all of our stations conform by using one research firm and one programming team. 

3. I will lose the beat on people attitude. I know that my pressure rolls downhill. Although the pressure will remain constant, my managers won’t be frustrated by pressure without authority to act. 

4. No more universal dictates. No more universal sales comp plans, no more dictates for how quickly a seller must perform or risk termination, no more must-play formats, must-play records, must-follow systems. Managers will have full autonomy to make decisions as if they are running a small local business. 

5. We will evaluate everything we do, and will eliminate steps, requirements, and paperwork if possible. We will encourage our managers to spend as much time as possible in front of clients. 

6. We don’t have the money to start promoting again, but we know we need to. I will ask managers to find ways to advertise, and if they find a way that fits within their budget, we won’t prevent them. 

7. We will close our mouth and open our ears. We want to hear ideas. No idea is a bad one. 

8. No more company dictates regarding voice-tracking. We will tell our managers that live, local community involvement is better. If they can find a way to increase this, and still live within the constraints of our financial needs from each station, more power to them. We’re asking managers to invest in finding fresh, young talent who want to learn, and put them on late nights and weekends. We need to grow a farm team. 

9. We will devote all the dog stations in our chain to experimentation. If what they are doing isn’t working, we will encourage local management to find young minds with new ideas to reinvent radio. 

We’re not bad people — we’re just doing the best we know how. But you’re right, we need to allow people to do what they do best, and not try to control every action — and it will be a lot easier for us if it works. Let’s hope you were right. 
Yours truly, 
The Radio Group Head 

I understand how hard this will be for executives to implement, because we all think we know better. But it makes so much more sense to hire brilliant people and allow them to be brilliant, rather than force them to be drones who implement someone else’s plan without passion. And it will likely solves the morale problems, too. 
Unfortunately, this e-mail never came, and probably never will. 

07/21/08 Never Say Die

A friend recently called to tell me how bad his business is. Around this time last year he saw signs that his business was starting to suffer, and I told him I’d be happy to help him craft an advertising strategy. He ignored it. When he called last week, he uttered these words: “I cannot afford to advertise, but last year you told me I should do it and I didn’t. Now my business is so dreadful, I guess I’d better start.” 

There. I told you so. 

One of the more frustrating things about what you and I do for a living is that we often see things more clearly than the business owners themselves. It’s a fact of life. We spot trouble a mile away because we hear the same stories and the same excuses over and over again. 

I’m dreading the meeting with my business-owner buddy because I’m not sure I have good news for him. We’re in a recession, and no matter what we say in his ads there is a strong chance they won’t work. 

What? Eric, are you nuts? How dare you say they won’t work! 

Let’s be real. Yes, everyone should advertise. Yes, everyone should advertise in a down economy because it gives an advantage over competitors that stopped advertising. Yes, advertising should drive those who are in the market for a product or service to the company that is most visible. But how do we help the business owner who is in trouble? When consumers have stopped spending anything extra, when they are buying only essentials, when they are going to Costco and Sam’s for groceries, when their gas tank is eating their disposable income, when they may be laid off any second, what can we do? Can we really help them now? Realistically, can we get people in the door? Can I help my friend save his dying business with advertising he cannot afford? 

I’ll tell you what I told a group CEO the other day. Never say die. 

Someone always gets rich during a down economy. While some business owners accept defeat, others reinvent themselves and their products, make their products and staff more efficient, and create opportunities from the ashes. I read the other day of a man who is getting rich by selling kits to convert cars to run on French fry oil (true). One entrepreneur built a gas station just across the Mexican border, and sells gas at half price. 

Though every owner is responsible for his own business, we as radio sellers can rise to the occasion to help them see opportunities. Selling advertising to a company that has no money means we won’t get paid. But if we help them now, they will remember us when times get better. Your station can stimulate spending in any category. During the last downturn, for example, one station ran free ads encouraging people to buy cars. It helped, and the car dealers will always remember that station’s efforts on their behalf. 

What can you do? 

If we want to establish ourselves as a trusted resource, if we want to differentiate ourselves with advertisers today, let’s find ways to help local small businesses that have been loyal advertisers in the past. It’s not only the right thing to do; it will get them on their feet quicker, which will help us all. 

07/07/08 Dear 40 Most Powerful People In Radio

We take great pride in the development of Radio Ink’s Top 40 list as an annual reflection of the state of the industry. We spend months in discussion, gathering research data, and determining the appropriate positions. We don’t take the weight of our decisions lightly, because we know they can impact business: One year, for example, a member of the 40 was downgraded on our list, and a Wall Street analyst consequently downgraded the company. 

As a member of this list you have the entire future of the radio industry in your hands, and the decisions you make for your own company impact every employee in the industry. We know you, too, take the weight of your decisions seriously. 

To ensure a vibrant future, we as an industry must take proactive steps. This involves investment in our product at a time when there is no money to invest. Yet putting off this investment may deepen our challenges and allow the golden ring to pass radio by. 
So I’m issuing this public challenge to radio’s Top 40: 

• Invest in young listeners: Engage youth with radio now in order to maintain that connection when they become “important” demographics to advertisers. Don’t allow erosion; reinvent and re-engage younger people so they’ll be addicted to radio. 

• Invest in Internet culture: The powerful combination of radio + social networks + Internet + mobile will make radio untouchable. It’s not about cool radio websites; it’s about tapping the cultural revolution that is changing culture daily. 

• Invest in employees: Though everyone talks about the importance of their people, few live up to it. I receive e-mails each day from unhappy, de-motivated employees who want out of radio because of heavier-than-ever pressures, corporate handcuffs, paperwork, and constricting systems. It’s not about money; it’s about being heard and being trusted. 

• Invest in career salespeople: You’re competing with stronger companies that offer more attractive compensation packages. Advertiser confidence is hurt by radio’s “90 days to the door” policy. Our training system is old school — and it’s not working. 

• Reinvent autonomy: The most effective managers are given a mission and allowed to use their experience and expertise to achieve it. Do not saddle your executives with micro-management, oppressive systems, and demands for constant reporting and re-forecasting. Give them time to spend with clients and employees. Are you hampering performance by over-burdening your star managers? 

• Invest in hyper-localism: Stations that place high value on involvement in local communities are reaping the most rewards. These stations are on the streets, involved in everything local. With a changing music landscape, it will be hyper-localism and a personal connection with the audience that will overcome the iPod. People still want to feel connected; it’s radio’s job to connect them. 

• Invest in local talent: Quality national talent often sounds more professional than local yocals who are less polished. But don’t discount the connection to people who have been in the market their entire life and reflect and relate to life in your town. 

• Invest in visibility: Winning stations are practicing what they preach: They promote and advertise. Radio declines began when promotion stopped. 

Cutting does not seem to be helping radio grow. Maybe investing will.