Restructuring a $150 M Publishing Company

Background: As part of a larger diversification effort, a $3+ B media and entertainment company purchased a smaller publishing company. The founder of the acquired company left and a new CEO was put in his place. The new CEO recognized that the acquired company’s business model was outdated, that it was not leveraging the firm’s assets effectively, and that there was friction across divisions. We were asked to develop and implement a strategy to increase revenues.

Our involvement: We first interviewed all members of the senior management team and a cross-section of employees, reaching deep into the organization to understand work flow, strengths, opportunities, and roadblocks to success. We then did a comparative analysis, identified market opportunities, and assessed the organization from a structural, competency, and communications perspective.

Working in close collaboration with the executive management team, a decision was made to reorganize the firm. Competency models were created, executives were assessed against those models, and business heads were selected based on the results. We then helped develop a communication plan to launch the reorganization.

Members of our group helped implement in two ways. First, we worked closely with select business leaders to develop area-specific business plans, and second, we coached new business leaders in the areas of change management, teambuilding, and problem-solving, enabling them to develop their groups in the shortest possible timeframe.

Results: Profits increased 28% from 2008 to 2009 as a result of our work.  In addition, several new business lines were developed over the course of the year that will provide sustainable growth in the future.