Tag Archives: NAB

Dislocation is the New RIF

UNADJUSTEDNONRAW_thumb_641For many of you, this past week has been a very stressful one. The world’s largest radio owner/operator, iHeartMedia, announced a countrywide Reduction In Force or RIFs. However, reading an internal memo obtained by All Access, I see that the new term for this is “employee dislocation.”

No matter how your phrase it, a lot of good radio people lost their job this week.

Is Your Iceberg Melting?

Let’s face it, the radio industry so many of us fell in love with, is melting away.

Back in 2009, the book everyone was reading was by Ken Blanchard called “Who Moved My Cheese?” Ken actually published this little 95-page book back in 1999 and it’s still an extremely great read.

But today, maybe the book everyone in broadcasting ought to be reading is “Our Iceberg is Melting and Succeeding Under Any Circumstances by John Kotter, who is an award winning author from the Harvard Business School.

In Melting, Kotter writes a simply fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – it’s melting away.

It’s a story that will resonate with anyone in broadcasting, as a new round of “employee dislocations” occur and there are fewer radio stations to relocate to, as this is the same thing that is happening by the other big box broadcasters nationwide.

Kotter’s book walks you through the eight steps that produce positive change with any group. You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

Regarding change, when all employees, corporate and middle management are on the same page, it is amazing what can happen. What I’m hearing from the broadcasters I know, both those that have been RIF’d and those who have not, it is a feeling that there’s a lack of honesty in communication from the top through the entire organization.

“Fool me once, shame on you.

Fool me twice, shame on me.

Fool me three times, shame on both of us.”

-Stephen King

The problem for the leaders of the broadcasting industry is that radio people have been fooled too many times and the level of trust is at an all time low. Daryl Ledyard, who was “dislocated” from a position he’s held at WBBS in Syracuse for over ten years told Rolling Stone “[iHeartMedia is] very much convinced that the local aspect of radio is no longer important.” However, iHeartMedia says in their statement “we will continue to serve every local community in which we operate just as we always have.”

It begs the question of how that will be possible when the number of on-air people have been reduced to one or two or none.

Live & Local?

Over the years, at every radio meeting I attended, the one refrain heard over and over and over was that “the power of radio is live & local.”

In October 2017, the FCC voted along party lines 3 to 2 to eliminate the Main Studio Rule.

When the FCC voted to end that provision in America’s broadcast law, what did that mean to regulations that have been in place since 1934? FCC attorney Gregg Skall explained it this way in his 1991 “Main Studio Rule and Staffing” memo:

The main studio rule as clarified in 1988 requires a station to maintain a main studio within its principal community contour “which has the capability adequately to meet its function…of serving the needs and interests of the residents of the station’s community of license.” That rule has now been further revised to allow a main studio to be located either within 25 miles from its community of license reference coordinates, or within the principal community contours of any station, of any service, licensed to its community of license. (See memo, Revised Main Studio and Public File Rules). Jones Eastern requires the station to maintain a “meaningful management and staff presence” at the main studio on a full-time basis during regular business hours.

You can read the full memo HERE 

Since the introduction of automation systems, syndication, satellite delivery and computer voice tracking, the LIVE aspect of radio has been on the wane. Even in the #1 radio market in America, New York City, stations may or may not have a live operator behind the microphone when you’re tuned in.

In 1967, when I was starting out in radio, we used to have to announce whether a program was live or pre-recorded so the listeners wouldn’t be deceived about the broadcast. In the early days of radio, virtually all radio was live, it was the exception for something to have been recorded.

Today, what you are listening to is more than likely not live but syndicated, voice-tracked or pre-recorded.

With the Main Studio Rule, the goal was, that there would be a live person at the station and the studio would be in the community the licensee was licensed to serve.

Lance Venta writing on RadioInsight on October 24, 2017 wrote “But what will it (elimination of the Main Studio Rule) mean in the short term? Probably not a lot. In the long term, be prepared for a much leaner broadcast facility.” You can read Lance’s entire article “The Radio Station of the Future…Today!” HERE

The National Association of Broadcasters lobbied for the elimination of the Main Studio Rule, and its then executive VP of communications Dennis Wharton said “We’re confident that cost savings realized from ending the main studio rule will be reinvested by broadcasters in better programming and modernized equipment to better serve our local communities.”

Public Safety

When a broadcaster doesn’t have a studio in the local community it serves, it delivers its programming through the internet, satellites, microwaves or wired lines. Broadcasters have been quick to point out how these forms of communication are first to go down in natural disasters.

What seems to be missing in this conversation, is what happens when a local community is hit with a Black Swan Event. I wrote a whole blog article about how such an event could impact communities FCC licensed radio stations are empowered to serve. You can read that article HERE

Those who believe in the unconditional benefits of past experience should consider this pearl of wisdom allegedly voiced by a famous ship’s captain:

‘But in all my experience, I have never been in any accident… of any sort worth speaking about. I have seen but one vessel in distress in all my years at sea. I never saw a wreck and never have been wrecked nor was I ever in any predicament that threatened to end in disaster of any sort.’

-E. J. Smith, 1907, Captain, RMS Titanic

[Captain Smith’s ship sank in 1912 and became the most talked-about shipwreck in history.]

The Future Predicted in 2004

On May 24, 2004, the Federal Communications Commission (FCC) held a “Broadcast Localism Hearing” in Rapid City, South Dakota.  The president, general manager and co-owner of KLQP-FM licensed to Madison, Minnesota (population 1,767) Maynard Meyer addressed the commission.  Telling them:

“I have been involved in the radio business in announcing, sales, engineering and management for about 36 years, all of my experience is in communities of 5,000 people or less.  We personally live in the communities we serve so we know the ‘issues,’ we work to address them in our programming and have been doing so for the past 21 years.“

“A few years ago, many stations operated this way, but much of that has changed for a variety of reasons.  I think the beginning of the end of local broadcast service started in the 1980s when the Federal Communications Commission approved Docket 80-90.”

Mr. Meyer went on to explain to the FCC, how that many communities “on paper” had a local radio station that actually was nothing more than a transmitter being fed from another location tens of miles away.  Mr. Meyer went on to say:

“I don’t think this is the best way to promote local radio service.  From what I have seen through my personal experience, as soon as a hometown studio is closed and relocated, the local service is relocated as well.”

(I’ve edited his comments. The full text can be found HERE)

What do you think?

 

 

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How Do You Spend Your Time?

U S Music Industry Revenues 1H 2019When this pie chart was posted on social media, it immediately captured my attention, by showing where the United States Music Industry is making its money. You can read the Mid-Year 2019 RIAA Music Industry Revenues Report HERE.

Total revenues were reported to be growing at 18%, with 80% of the industry revenues coming from streaming. By comparison, the radio industry ended 2019 up 2% and the inflation rate for the United States for 2019 was 1.7%.

Going Apple

I’ll admit, I was late to the Apple party. When I was a broadcast professor at Western Kentucky University, Steve Newberry, EVP with the National Association of Broadcasters, and I were having lunch one day, Steve asked me if I had an iPad. I said “no, and I didn’t know why I needed one.” Steve said, well I can’t explain it, but once you get one you’ll wonder how you lived without one. So, I got one. It would be my second Apple device, the first being an iPod Classic. I purchased my iPad2 on Black Friday in November 2011.

Blackberry to iPhone

I had owned a Blackberry Pearl “smartphone” since my days as a Market Manager at Clear Channel, I loved all it could do and I loved its compact size. But in less than a month of owning and enjoying my iPad2, I would upgrade from my Blackberry to an iPhone4S in January 2012. In 2015 I would switch my university desktop computer from a Dell to an iMac, and today I have added Apple TV for streaming my video entertainment.

One of the wonderful things about the Apple operating systems are that once you know how to operate one, you can operate them all, and they are very intuitive.

iTunes Match

When I got my iPhone4S (the “S” stood for Siri and it was the first introduction of voice command, that has since been joined with offerings by other companies such as Amazon’s Alexa and “Hey Google”), I immediately added a couple of other Apple services like iCloud and iTunes Match.

iCloud backs up all my data and iTunes Match makes it easy for my music library to be available on all my Apple wireless devices, which in 2012 was my iPhone4S and iPad2.

iTunes Match is an annual subscription service, that for me, renews every November for $24.95.

This year after it renewed for 2020, I realized that since owning my Amazon Echoes, I really never use my music library on iTunes anymore. It so much easier to just say “Alexa, play…”

Streaming

I’m sure I own more AM/FM radios than you, unless you’re also a radio geek, then you might own as many as me or even more. But these days, the radios throughout my house broadcast whatever I stream via my Whole House FM Transmitter.

I may stream music from Amazon Prime or Pandora or from one of my favorite internet radio stations, but I never change the dial position on any of my radios because I simply need to tell Alexa to change what I’m streaming from virtually anywhere in my house. (That device has incredible ‘hearing.’)

When we go to bed, one of the things Sue and I especially enjoy is asking Alexa to play some of our favorite songs. Alexa’s the only “DJ” I’ve ever known to not only take requests but play them for you as soon as you ask her to.

You Are No Longer in the Radio Business

This year during Radio Ink’s Forecast 2020 this year, Scott Flick told the audience “Whether you like it or not, you are no longer in the radio business, but the audio business.” Today, the competition is not another radio station or even another media source, but the competitive landscape is for people’s time. We live in a world where a plethora of options can fill our time.

Relevancy Replaces Local

What is local to you? The price of gas at your local pump? The price of goods at the place you shop? The quality of the air you breath or the water you drink? I’m sure you answered, they all are. And chances are not any of them are produced locally, but somewhere else in the world.

Local today is planet earth.

What will make any media property worth a person’s time will be how relevant it is to the person accessing it.

Relevant radio will be one that is closely connected with its audience.

 

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Is Your Iceberg Melting?

94This past week was another tough one for the wonderful people who work in radio. Most people who get into radio do it because they’ve caught the “radio bug” and the work becomes their life’s passion. I know that’s how it is for me.

When I caught the “Radio Bug”

From my earliest years, I knew what I wanted my life’s work to be. I built a radio station in my parent’s basement and broadcast to the neighborhood (about a 3-block radius) on both the AM and FM bands using transmitters I bought from Radio Shack.

When I started high school, I earned my 3rd Class Radio/Telephone Operator’s License, Broadcast Endorsed from the Federal Communications Commission in Boston. I wasn’t old enough to work, so I had to get a Massachusetts Work Permit. They didn’t have a category for disc jockey, so they branded me as “talent.” (I never told them I had to take meter readings every half hour in front of a transmitter that put out 1,000-watts of electromagnetic power. If I had, they would never have given me my work permit.)

College Radio

In college, it was radio that paid for my bachelors and masters degrees. I took my college’s carrier current radio station, got an FM broadcast license and was the first general manager.

Radio was in my blood.

RIF’s

After the Telcom Act of 1996, radio began its road down the consolidation path funded by Wall Street. It was during this period of time a new acronym would come into radio’s every day lexicon, RIF’s, or Reduction In Force. In other words, people were being terminated in huge numbers.

This past week, I sadly read about another round of RIF’s taking place among our country’s biggest owners/operators of radio stations. It breaks my heart.

RIF’s from the Manager’s Perspective

We all feel sorry for those that have unexpectedly lost their job. What we often don’t read about is the perspective from the other side of the desk, what the management is going through when these decisions are made at corporate.

I lived through it in 2009 as a Clear Channel Market Manager.

It’s NOT FUN.

With each corporate meeting, I would come home with a flash drive that could not be opened until a specific date/time with who I would have to RIF next.

I RIF’d my entire news and promotions departments.

I RIF’d DJ’s and PD’s.

I RIF’d my national sales manager, my director of sales and local sales managers. With each round of RIF’s I got more hats to wear. The work still needed to be done, it didn’t go away with each round of RIF’s.

I hated my job.

Then my regional manager showed up unannounced and RIF’d me.

His manager showed up after he had RIF’d all of his designated market managers and RIF’d him.

The company president RIF’d the senior regional managers.

Then the CEO RIF’d the president.

It was not a happy time, but believe it or not, being RIF’d to me was better than being one of those that found themselves with more and more hats to wear, with more and more responsibility, without a penny more in pay.

There were many folks who told me to find another line of work, but they didn’t know that broadcasting was the only thing I ever wanted to do.

Except for one other thing, teaching and mentoring the next generation.

My education was in teaching. Both my bachelors and masters degrees were in teaching.  My best teachers were those who worked in the field first and then came into the classroom to teach.

Paying It Forward

My long term goal was always to one day teach at a college or university the very things I had done all of my professional life.

My big opportunity presented itself at Western Kentucky University’s School of Journalism & Broadcasting in 2010.

When I was RIF’d by my regional manager, I had met or exceeded every goal I had been given and was paid bonuses for my accomplishments. I was even named one of radio’s Best Managers by RADIO INK magazine. The issue of the magazine with me in it came out almost the day after I was RIF’d. Funny how life is: good things happening at the same moment as bad.

One Door Closed, Another Door Opened

When my last management job came to an abrupt end with Clear Channel, my broadcast professorship door opened at WKU.

Let me tell you, going from being a radio market manager to broadcast professor is a steep learning curve. But with the help of Charles H. Warner at NYU, John Parikhal of Joint Communications and others, I successfully made the transition and became successful at teaching. In fact, my new broadcasting educational work branch opened my eyes to all kinds of new and exciting learning opportunities.

I started this BLOG and a column for RADIO WORLD magazine during this time.

Those have lead to numerous invitations to appear on podcasts, Vlogs, articles, and broadcast interviews with others sharing stories of my work and experiences.

I’ve done research on the radio industry and their employment needs in the 21st Century. I’ve presented panels every year at the national conference in Las Vegas as well as been an invited broadcast expert on many panels at both BEA and NAB.

I’ve presented seminars at state broadcast associations and done training sessions for broadcast companies.

In short, I’ve been more active in broadcasting on so many levels than I ever was as a radio manager.  And I’ve loved every minute of it.

But I’m not going to candy coat what’s happening, not only in radio but in all ad supported media. It’s a revolution.  Not an evolution.

In revolutions the first thing that happens is destruction of the old. We’re still living through that period right now and it’s not fun. I get it.

Our Iceberg Is Melting

Back in 2008, many people picked up a copy of Ken Blanchard’s book “Who Moved My Cheese?”  I know I did. It’s a great read.

But maybe the book everyone in broadcasting should be reading today is “Our Iceberg Is Melting” by John Kotter. Kotter is an award winning author from the Harvard Business School.

Like Blanchard and Johnson’s Cheese book, Kotter writes a simple fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – and it’s melting away.

It’s a story that will resonate with anyone in broadcasting today.

Read about how the penguins handle their challenge a great deal better than many broadcasters are doing today. Kotter’s book walks you through the eight steps needed to produce positive change in any group.  You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

When corporate, middle management and all employees are on the same page with regards to change, it is amazing what can happen, despite adverse conditions.

These are lessons for people who already are in broadcasting, for broadcast students, enlightened colleges are already teaching the concepts, skills and providing the tools that will be needed going forward. My students know that the future is not bleak. They understand the history of broadcasting that brought us to where things are today and they are as pumped as you and I were when we were their age to craft the future of broadcasting in the new century.

I’m excited.

They’re excited.

The best is yet to be.

 

 

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What Can Radio Do That Other Media Can’t?

87I’m writing the follow-up to last week’s blog article while comments are still flowing in but I sense I have enough of a cross-section of comments to draw some conclusions; over fifteen type-written pages of comments to date. Not all commenters actually post their thoughts on my blog, but instead post them on the various social media platforms where they came in contact with my article. I try to monitor as many of those as possible to gauge the feedback on any week’s article.

Theater of the Mind

Quite a few people wrote that radio’s big advantage is that it’s “Theater of the Mind.” Unfortunately, so would streaming radio and podcasts if they so chose to utilize it. Podcasting does this quite effectively with shows like Radio Lab, Serial, Revisionist History and others. In fact NPR takes all of their segments from their highly rated programs like Morning Edition and All Things Considered and makes them available as podcasts. They are very fast at getting these segments posted online too. Lightning fast.

A lot of retired broadcasters seized on the “Theater of the Mind” advantage not realizing the extent that podcasting is doing this and how fast the podcast world is growing in audience and revenues.

Besides, truthfully, how many commercial radio stations these days do you know actually employ any “Theater of the Mind” these days. That whole concept was born from the days when radio did live dramas and that was last heard with the CBS Radio Mystery Theater that I remember running as a young lad back in the 70s.

Radio is everywhere, wireless and free

This might have been an advantage a couple of years ago, but is it still? Streaming audio is wireless, is pretty ubiquitous and now with many carriers free. T-Mobile has no data usage for quite a few streams. Plus audio streaming doesn’t use all that much data.

I’m on Verizon and gave up my unlimited data plan when the bill was climbing north of $100 per month. I switched to a plan that gives me unlimited talk and texting with one gigabyte of data per month for $50 per month. I was told by Verizon that based on my current usage that I wasn’t even using a quarter of a gigabyte per month. As I thought about it, my phone is either on my home WiFi or the university WiFi most of the time and operating very little off of cell towers for data.

However to test out how much data I’d use on a 15 hour drive from New England back to Kentucky I decided to stream radio through my iPhone4S to my car’s sound system. What I would learn was surprising in many ways.

First, I still used very little of my one gigabyte data plan. Second, I heard seamless audio with virtually no buffering and third, the audio fidelity was fabulous. The one thing I did find was how HOT my iPhone got continuously streaming like that.

Now remember, I started out in Massachusetts and drove through New York, New Jersey, Maryland, and West Virginia to get back to Bowling Green, Kentucky. That’s quite a drive and going through Maryland and West Virginia I went over lots of mountainous terrain. I did lose the signal going through tunnels, but that was about it (I also lose radio signals in those same tunnels).

So again, this is no longer radio’s advantage over other options. The people who wrote this was radio’s advantage maybe are not aware of how much things have changed. I know I was.

Radio allows you to multi-task

One respondent actually wrote his response as his own blog article on his site. In it he wrote that

“with today’s tech, radio and television can each DO almost everything the other can do, and they (do) more than the rest of the media types. The division between radio and TV is blurring…both can be just as fast, just as inexpensive. Periscope anyone? You, too, can be a serious broadcaster.

They could be the same except for ONE thing – audio-only format supports productive multiplexing. Doing two things at once. Listening, perhaps LEARNING, maybe just being entertained, WHILE doing some mindless-but-necessary task at the same time.

I cannot watch TV and hammer a nail.

I cannot read the newspaper while mowing the lawn, can’t look at photos or TV while driving a car, can’t appreciate that profit curve while taking a shower.

I CAN “get things done” and, simultaneously, listen to the radio or a podcast. I can, for all practical purposes, MULTIPLY myself. Literally, accomplish more in the same amount of time and with the same “effort.”” (Note: bolding and emphasis were the respondent’s)

That person was on a role until he got to the last paragraph. It was here that he wrote “or podcast.” I would add “or streaming” as well. Heck, I’m listening to my favorite Smooth Jazz streaming station while writing this article. Smooth Jazz helps me to think while I’m writing.

So while radio has always been the multi-tasking medium it no longer holds that as singular medium that can deliver that advantage.

Provides Information during Emergencies

Several writers said that cell phones are useless when the battery dies and that battery powered radios can run for a long time. I would agree. But I see a couple of problems here. How many people still own a battery powered radio and use it often enough to make sure the batteries are fresh?

Plus from the radio operator’s point of view, they can’t stay in business if the public only tunes to them during an emergency. I ran a news and information radio station and we did a study to find out why our ratings weren’t better than they were. We found that people depended on us only in times of emergencies or breaking news. Otherwise, they went to their favorite FM music station and not our AM information station. The format was changed to something else after we read the report in search for something that could sustain itself.

Worse, since many stations are syndicated, voice-tracked or automated in some other way, they often aren’t as quick to the draw in fast arising emergency situations.

My Verizon connected iPhone goes off no matter where I am with emergency information based on where I’m located.

Plus when it comes to things like weather alerts, school delays or closings, those messages quickly come into my iPhone to alert me. My university police department often sends out emergency messages about an active situation on campus.

So this is yet one more area that radio finds it has some strong competition.

What Can Radio Do that My Smartphone Can’t?

One reader thought the better question would be “What can radio do that my smartphone can’t.” Another phrased the question this way “What can radio do that other media won’t?”

Then maybe this person’s observation was most poignant:

“They all properly answered your question by stating what radio CAN do. But it should be noted that radio, as an industry is dismally failing to do the very things it is capable of doing.”

Why is that?

Many pointed out how our country’s largest radio companies are mired in huge debt and that prevents them from doing the very things that could take radio into the future.

While Nielsen says 93% of Americans over the age of 12 listen to radio every week, others were quick to point out that one only needed to listen 5-minutes to any radio station during the course of the week to be counted.

So what’s the answer?

Live & Local

This was mentioned by many. Then quickly followed up with, but my stations aren’t.

While the industry is quick to make this claim, the number of signals broadcasting today that are doing just that are appreciably much less.

Community & Companionship

Dan Mason said at a radio talent institute that the power of radio was community and companionship and that without both, it wasn’t really radio.

When I got into radio, owners were proud of their radio stations and took excellent care of them. They lived in the communities they were licensed to serve and that made all the difference.

My family for many years celebrated special occasions at Howard Johnson’s. People are always amazed when I tell them that. But, as Paul Harvey used to say, the rest of the story is that this Howard Johnson’s in Williamstown, Massachusetts was owned by the Brundage brothers. And they would both be in that restaurant every hour it was open. The parking lot was always full and you waited in line for a table. Everyone knew that the only similarity this place had to any other Howard Johnson’s was its orange roof. The Brundage family was proud of their restaurant.

Friendly Ice Cream used to make its store managers part owners of their restaurants and Friendly’s were always well run no matter where you happened to visit one in New England. That all changed when the company was bought by Hershey and they replaced owner/managers with salaried ones. It’s a scene all too familiar to many radio people I’m sure as the Telcom Act of 1996 changed the ownership landscape of the radio industry.

Now I don’t’ want you to get the idea that all of radio was perfect back then, the industry had its share of rotten apples to be sure, but you’ll find them in any enterprise.

WKDZ, Cadiz, Kentucky

I was in Nashville in September 2016 with some of my students for The Radio Show. The big dinner featured many station and personality awards. One that was justly deserved went to WKDZ in Cadiz, Kentucky. WKDZ won “Small Market Radio Station of the Year 2016.” Beth Mann is the owner/GM of WKDZ. All Beth wanted to do since the time she started working at that radio station as a child was own it. When the owners decided to retire, they sold it to their general manager at that time, Beth Mann. 88

Now winning such a prestigious award from the National Association of Broadcasters is a pretty awesome thing. But WKDZ has won Small Market Radio Station of the Year more than once. They won in 2002, 2013 and 2016. I fully expect them to win it again and again.

If you want to know what radio can do that other media can’t or won’t, then you need to take a car ride to Cadiz, Kentucky and visit this radio station. If you want to know more right away, then visit their station’s website: www.wkdzradio.com

WKDZ has that HERE and NOW energy many readers of this blog say they miss in radio. WKDZ has that audience engagement. WKDZ is LIVE & LOCAL & COMMUNITY & COMPANIONSHIP and so much more.

In fact, in a state like Kentucky where we are blessed with a plethora of local radio operators that are engaged, live, local, community and companions to their service area for Beth Mann and her radio family to rise above the rest makes her story all that more amazing.

After living in the Blue Grass State these past seven years I can also attest to how outstanding the state’s broadcast association is too. The Kentucky Broadcasters Association (KBA) is the gold standard for state broadcast associations.

Relevant

Summing it all up, radio needs to have a heartbeat. It needs to be LIVE & LOCAL & COMMUNITY & a COMPANION to the listener. But most of all, it needs to be RELEVANT.

Define who your audience is and then super-serve them 24/7, 365.

We know what to do.

Now we just need to do it.

 

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Just In Time Learning

66In a post I wrote about “Where You Should Be Recruiting Radio Talent” I mentioned a concept of “Just In Time Learning” that struck a chord with many readers. Commenter’s said they found the idea interesting and something they had never heard or thought of before. So I thought I’d expand on that thought with a little more detail and why it’s time has come.

Toyota’s Better Idea

Manufacturers used to stock everything they would need to build a product in warehouses. It was expensive and often wasteful. Then the idea of having parts shipped just-in-time to be assembled into a finished product was introduced.

Originally called “just-in-time production,” it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The principles underlying the TPS are embodied in The Toyota Way.

College Degree Credential Creep

Once upon a time, college was an optional final stage of learning in the United States. Today even a Starbucks barista probably has a college degree. So what’s causing this college degree credential creep? In many cases the reason is that employers feel that by requiring candidates to have a bachelor’s degree they will see a higher quality group of candidates. It has nothing to do with what job skills are actually required. It’s used mainly as a screening tool. Unfortunately, two-thirds of the workforce in America gets screened out when a B.A. degree requirement is inserted into the advertisement. Burning Glass researched how the demand for a bachelor’s degree is reshaping the workforce and you can read more about all of this here.

The 20th Century College Education

When the 20th Century began, America had about a thousand colleges and those colleges had less than 200,000 students enrolled in them. By mid-century the number of colleges exploded and colleges that once had about a thousand students expanded to universities with enrollments of tens of thousands of students.

Unfortunately our 20th Century higher education system simply wasn’t designed to deliver what’s needed in a 21st Century world.

Your Teacher, Your Doctor and Your Barber

In our high tech world, things can quickly scale. Productivity grows quickly. But a teacher still teaches at the same pace. Your doctor can only see patients at the same pace.  And your barber can only cut hair at the same pace as each of these professions did in the 20th Century.

When something can’t scale, the price to provide the service goes up.

In the case of higher education, this price problem has been compounded by states reducing funding to their colleges and universities, resulting in public colleges being funded more and more by student tuition and lots of fees. This has resulted in a trillion dollar student loan crisis in America.

Certifications vs. Degrees

For the radio industry, the answer may be professional certifications versus bachelor’s degrees. Students simply can’t afford to go to college for four to six years and come out with tens of thousands of dollars in student loan debt to take an entry level radio job that will pay them fifteen to eighteen thousand dollars a year. Even worse, most likely the job you’re most looking to fill – sales – a college grad won’t have received any course work in learning about. Broadcasting in college is focused on teaching all of the low demand jobs in radio and the classes in the high demand jobs are either non-existent or being eliminated.

The Radio Advertising Bureau offers professional certifications in selling starting with their Radio Marketing Professional (RMP) certification. Burning Glass says that jobs in fields with strong certification and licensure standards have avoided the problem of “upcredentially.” They write: “This suggests that developing certifications that better reflect industry needs, together with industry acceptance of these alternative credentials, could reduce pressure on job seekers to pursue a bachelor’s degree and ensure that middle-skill Americans continue to have opportunities for rewarding careers, while continuing to provide employers with access to the talent they need.”

Radio’s Recruitment Mission

The National Association of Broadcasters (NAB) and the Radio Advertising Bureau (RAB) need to spearhead the radio industry in creating bonafide certification programs for all job classifications that will be accepted by the radio industry as the equivalent (or better) than a bachelor’s degree. These programs need to be offered to high school aged students and recent high school graduates.

Certification programs can be designed to provide the kind of just-in-time learning needed for each radio position. When a person shows they’re ready to advance additional certification training can be taken to prepare them for the next higher position.

Done in this way, the training will be up-to-date, cutting edge instruction to insure the student is learning exactly the skills needed for the position they will be moving into.

Time for Radio to Think Different

The radio industry will need to attract new talent in order to stay viable and continue growing. Embracing a better form of training for the skills needed and making this a requirement versus a college bachelor’s degree is 21st Century thinking.

Many of these programs are already in place, but industry recognition and acceptance of them lags in comparison to requiring a college degree.

It’s time to think differently about how we find, train and grow the radio talent of tomorrow.

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It’s Another Fine Mess

62“Well, here’s another nice mess you’ve gotten me into.” Variations of this line were always a part of Laurel and Hardy movies. In fact, the pair made a film in 1930 with the title “Another Fine Mess.”

A couple of weeks ago I wrote about things I had learned at the Radio Show 2016 in Nashville and one of those things was about “sharing your messes” during a presentation I attended given by John Bates. What I will share today are some of the points John made amplified by my own personal experiences in the classroom and on the job.

3 Ways to Inspire & Connect

John said there are three ways to inspire and connect with people or an audience. Logic is not one of them. We are emotional creatures and to engage people you first need to touch them emotionally. I know from my sales training from the Wizard of Ads – Roy H. Williams – that you first must touch a person’s heart before you will win their mind and their wallet to buy whatever it is you’re selling.

John next said our human eyes are unique. We are the only living creature that has white in our eyes. We always know where a person is looking (or not looking). Our eyes enable us to better cooperate with one another.

Our conspicuous eyes mean we can immediately sense authenticity when dealing with others.

Your Message is Your Mess

I don’t know about you, but over my career I’ve learned that success teaches you very little. It’s our screw-ups that are the great teacher of life’s lessons.

When things are going great, the natural impulse is to not do anything to screw it up.

Likewise, when teaching another person, only sharing your successes imparts very little knowledge. However, when you share the things that went wrong, and how you learned from these little disasters, and how you changed course to not have something like that happen again, real knowledge is shared.

Les Brown puts it this way: “People don’t connect with your successes; they connect with your messes.”

Life’s real knowledge message is in your mess.

Let Me Tell You about the Time I Screwed-Up

My students tell me that how impactful my sales lectures are when they contain stories about the things I did wrong, learned from and grew from, by messing it all up.

Wow, they say, a teacher that doesn’t know it all, that makes mistakes and became a better person through failure. It lets them know that failure isn’t fatal and can provide some benefits.

I vividly remember the time a new hotel came to town and I went in to see the new manager spewing facts and figures a mile a minute. I had thoroughly prepared for the meeting and I was there dumping all of my prep on his head. The only problem was, I had not touched this new manager on a emotional level and I never asked him what he wanted to achieve. I would be the only media property to not be on the initial buy.

I went back to see the new manager, hat-in-hand, to find out what I did wrong. I’m grateful that he would share with me why I wasn’t bought. Turns out, I was such a fast-talker he figured me to be the conman in the group of media sales people who had initially come to call on him. What he quickly learned was, I knew my stuff and that we should work closely together going forward. It was my first impression that needed working on, he would tell me.

I would learn that when you meet someone for the first time, you need to not “spill all your candy at the door” but shut-up and listen first. Establish common ground and build rapport on which a solid relationship can be built upon.

Losing that sale taught me a valuable lesson that would greatly improve my new radio sales career.

Make a Difference

So don’t be afraid to share yourself with others. Let them in and show them you’re human.

My sales mantra when calling on a new business was always make a friend. People buy from people they know and like. They buy from their friends.

People who listen to the customer, define how success will be measured and make a difference will never have to worry about making a sale.

 

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Reflecting on Radio Show 2016

60The radio show was close to home this year, just down the road from my university, in Music City USA, Nashville, Tennessee. Plus, the Tennessee Association of Broadcasters decided to roll their annual convention into an opening event at the Radio Show. So as soon as I finished my morning class, I was on the road to Nashville.

Tennessee Association of Broadcasters Kick-off

Whit Adamson, President/CEO of the TAB, put together an amazing opening reception and event inside the Country Music Hall of Fame. We were welcomed by TN Governor Bill Haslam who declared it “Radio Week” in the State of Tennessee. Then the Mayor of Nashville, Megan Barry, gave us a warm welcome to Nashville where she declared it “Radio Week” in Music City. The “red carpet” was fully rolled out for the radio industry and attendance would set a new record for the Radio Show.

Pillsbury’s Broadcast Finance Forecast Leadership Breakfast

The good news is radio is the “King of Audio.” The bad news is that revenue growth for radio underperformed ad spending post-recession. Radio’s 7% share of all advertising is predicted to decline to 6% by 2019. Why? Digital ad spend will grow significantly (40%) by 2019. And radio will struggle to reach mobile users.

The big takeaways from this session were: Investors want to see new growth catalysts like NextRadio, more event revenue and growth in digital/mobile ad revenues. Investors want no more than 3 to 4 times leverage with more industry consolidation. All of this investors feel will yield more “free cash flow.”

Investors worry about audience fragmentation and Millennial reach, radio’s competition in the car dashboard, the challenges coming from digital/internet, continued uncertainty over royalties and excessive leverage.

Focusing on Your Career Future

The room here was filled with young people. Radio mentors from all areas (except engineering) met with tables full of students and recent graduates to talk about the many opportunities available in today’s radio industry. The mood was once of excitement and enthusiasm.

Brittney Quarles and John Focke both would share their personal radio journeys with students as they shared advice such as: “the industry is small, don’t burn any bridges” and “find a champion for you and your talents” and “be careful who you share your dreams with.” The right mentors are essential to your career.

Beyond Basics – The Prosperous, Professional You

John Bates, Elizabeth Burton and Heather Monahan led a session in how to reach beyond your limits and build a better “Brand You.”

John Bates shared “3 ways to inspire and connect”: 1) logic is not the way, 2) human eyes connect you to another person and 3) be authentic. For example, people don’t connect with your successes, but your messes. You message is your mess. But above all else, “Make A Difference.”

Elizabeth Burton drilled down the importance of your online brand and that today your online activities build your reputation.

Heather Monahan told us that people take only 10-seconds to make an opinion about you when they first meet you. 50% of communication is nonverbal and your attitude is everything. And if you want to know what your personal brand is, ask others this question: “What value do I bring to you?”

The Digital Dash – Improving the Consumer Experience

Fred Jacobs, Steve Newberry and Scott Burnell (from Ford) all shared their perspective on radio in the car. The first big thing is car manufacturers don’t call it a radio in the dash anymore (and probably haven’t for some time) but “the center stack.” Into this part of the dashboard, everything a car owner wants can be accessed.

Steve Newberry (former NAB joint board chairman) really brought the whole issue home with his analysis of the technology revolution by saying there are two kinds of events: disruptive and modifying. Disruptive events would be things like television and FM radio. Modifying events would be things like cassette tapes, CDs and MP3s. Disruptive events change the landscape and prevent an entity from doing things the way they’ve always been done. Television stole radio’s programming and added pictures and radio had to reinvent itself with new kinds of programs. Modifying events such as records being replaced by cassettes and 8-track tape, then CDs replacing both of those to be replaced by MP3s merely modified the way people listened to their own music libraries but not how they used radio. The new digital/internet connected world is a disruptive event and radio needs to once again adapt to this revolution in communication. The future is bright if radio is agile and adapts.

Perception vs. Reality – The True Power of Radio

My first Arbitron rep was Pierre Bouvard. He’s a fountain of information. His presentation on “7 Things Brands Have Completely Wrong About Radio” tells the story in great detail and shows the challenges faced by radio sales people today.

Podcasting

Steve Goldstein did an amazing presentation on podcasting by starting out with this Thomas Edison quote from 1922 “The radio craze will die out in time.”

Today mobile is eating the world. 20% of audio listening comes from the smartphone. For radio, podcasting is all about retention, growth and relevance.

Podcasting is no longer niche. It delivers the demos advertisers want. Podcasting is different than broadcasting. There’s money to be made in podcasting and radio has the perfect megaphone to promote podcasts to its audience. That’s radio’s “secret sauce” that podcasters wish they had access to.

Radio – The Local Media Company of the Future

Gordon Borrell and his research company are doing some incredible studies on the future of advertising. He immediately got the audience’s attention when he said in the last ten years $56 Billion has disappeared in advertising expenditures.

Banner ads are dead. But digital is not.

Local advertising growth is forecast to increase 7.6%, but non-digital will see a 6.9% decline in ad spend and digital will see a 22.4% increase in ad spend. In fact, 2017 is the year that digital advertising will eclipse all traditional media.

Borrell said when advertisers cut ad spend in one medium they spend it in another medium. Radio will continue to be bought, but only those stations who have well-trained representatives that understand the realities of today’s advertising and can put together a total marketing plan that goes beyond simply radio spots. Advertisers will partner with any media company who has reps that listen.

The good news is traditional media – like radio – is still necessary to drive digital advertising goals and deliver maximum digital R.O.I. (Return On Investment).  You can see Gordon’s full PowerPoint deck here.

Final Thought

The mood in the halls and in the sessions at this year’s Radio Show was very upbeat. The things being discussed and presented did not shy away from the realities all ad supported media face.

Anyone who attended came away with lots of action steps that need to be implemented immediately.

Radio currently is the #1 Reach & Frequency medium in the United States of America.

There’s no time to waste. It’s time to roll up our sleeves and “Make A Difference.”

Radio’s future depends on it.

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