Week of March 3, 2008

Friday 3/7, 2008

All this week we spoke about bad news. There is no shortage of the negative pressin the radio business, and I suspect it will continue for awhile. As the GM, your job is neither easy nor fun these days. But remember, you still have an obligation to your staff, listeners and advertisers. This is the time to be honest, be a leader, and be professional EVEN IF YOUR COMPANY LEADERS ARE NOT! You will at least sleep better and be able to live with yourself. Good luck, have a nice weekend and ... get some rest! You look tired!

Thursday 3/6, 2008

If you are getting the vibe from corporate that big cuts are coming, it is always better to have a plan ready rather than have them tell you what to cut. You also must be up front with the staff. Deliver the bad news quickly and honestly. This is where leadership comes into play. The second rule of the week? What would you want to know if you were them? Do not lie as rumors and speculation will destroy a station from within. I always advise people to be more negative with news of potential cuts. If it is not as bad, they will see it that way.

Wednesday 3/5, 2008

Death by 1,000 cuts! The chopping block is covered in all the trades. Radio companies are cutting big! Are you and your stations next? The staff is probably freaking out around the water cooler and you are waiting for the call from corporate. (You didn't cut the water cooler expense yet?) How do you keep people focused on their job? Rule #1: communicate! Do not hide in your office. Get out there and tell your staff everything you know. Believe me; it will go a long way. Most people would rather have bad news delivered fast, rather than speculation. Tomorrow: "When everything else fails, try honesty!"

Tuesday 3/4, 2008

Why you? Why does corporate make you cut so deep? A profitable radio station will drop over 70% of every dollar to the bottom line if business is good. If the reverse happens, it usually goes down quickly. This is when corporate calls and tells you to cut. This is especially true if the year isn't going as planned. If market or station revenue is off 10%, it usually means you must reduce your expenses over 30% just to stay even. It's not very pretty. Assuming you have already lost your promotion, research and other staffing in the past five years, you are now cutting the bone! Bad is going to worse faster than a presidential campaign exit poll. Tomorrow: "We are going to keep cutting salaries till morale improves!"

Monday 3/3, 2008

Things are getting tougher for the major public radio companies. Last week's announcement by Citadel is just the latest in the bad things to come in 2008. What if you had to cut 15% out of your operating expense budget tomorrow? Could you do it? The cutting is now WAY BEYOND THE BONE! The toughest part of being a GM is being told you won't be able to work the budget plan you submitted back in the fall. It's is one of the biggest problems facing the radio industry today. What is the frustrating part? If you do good and hit your numbers, you have to make up for the stations missing, and if you are missing, you have little chance of improving with a sharply reduced plan. As a GM, this is the toughest challenge you will ever face. This week we will address the draconian axe. If you have to cut ... and cut big ... how do you cope? Why are you cutting this deep? What to do? More suggestions tomorrow.