Brands to play a leading role in an enterprising, dynamic company
The company will primarily focus on strengthening its key brands and their exploitation. Brands and journalistic relevance will form the heart of the company. The way in which the content of these brands reaches Dutch citizens - via print, online, video, mobile or radio - is increasingly less relevant. What is important is the brand and content combination and the added value provided to readers, viewers, listeners and advertisers. To further increase the strength of the brands requires TMG to adjust and simplify the company’s current structure. “Entrepreneurship is to make a comeback at TMG and room will be provided for this”, says acting CEO Cees van Steijn.
Cees van Steijn: “The ability to work fast and decisively on expanding current strong brands, on new initiatives focused on growth, on transforming the company into a strong online organisation and on controlling costs is of key importance. The strategy adopted at the end of 2011 has been overtaken by current market conditions. A simpler organisational structure should lead to greater speed and entrepreneurship with strong brands at the core.”
Brands will become core elements and will be managed for growth
Van Steijn: “We have leading positions, nationally as well as in a number of regions with our brands. This is where our strength lies. The leadership of these brands will become the basis for the direction we will be pursuing and our way of working. You will see this reflected in the structure of our company, our investment choices and how we approach the market. The current situation in which the brands are not reflected in the structure and management of our organisation will become a thing of the past.”
We will create a simplified organisation structure which provides room for entrepreneurship
“We will be moving to an organisation in which all activities that contribute to the success of a brand will be managed from a single centre of focus. For example: De Telegraaf will be given complete control over all of the channels it uses: newspaper, website, video and mobile.” This provides employees the space they need to quickly and effectively work on initiatives that contribute to the success of their brand.
Our work will be performed via five business units
The new organisation will consist of five central business units that will be directly managed by the Executive Board as the operational management board: national print brands with the associated digital activities, regional and local brands including the associated online activities; online activities that are not linked to national print titles with enough growth potential, Sky Radio Group and a separate operating company that will at a minimum consolidate the printing plants and distribution activities. As stated before the strategic options for Keesing Media Group are under investigation.
The plans will be further worked out this summer. Van Steijn: “The plans have not yet been worked out in detail. When we publish the semi-annual results on 15 August 2013, we will also communicate our progress on this matter. Although it is still too early to make any definitive pronouncements concerning any cost or job reductions, the one thing that is certain is that due to declining revenues costs must be reduced as well. The precise numbers depend on the development of revenues and the elaboration of the plans. However, we are forced to assume that the number of jobs at TMG will continue to decline over the coming years and this is something that will be taken into account in further defining the plans. In fact, the simplification of the organisation alone will result in such reductions. Furthermore, our return will have to increase in order to secure the future of our company and it is not possible to achieve this solely on the basis of a growth in our online revenues. This too will require a reduction in costs.”