Wednesday, August 11, 2010

Commentary: Finding a different path for success

The recent failure of a San Diego news website offers the temptation to engage in a schadenfreude-laced diatribe of “I could have told you so.” But that’s never been my style. So, rather than taking any pleasure in this particular failure, my feeling is better expressed by the frustration of Marlon Brando’s character, Terry Malloy, in “On the Waterfront.” To paraphrase Malloy, “they coulda been a contender.” And that is what is so disappointing.

The failure of San Diego local news site SDNN, aka The San Diego News Network, was driven by unrealistic expectations and a bad economy. Wealthy and successful people failed to recognize their own limitations. It may be that because of their own self-image they believed that success in one field would guarantee success in another. In the case of SDNN, entrepreneurs Neil Senturia and Barbara Bry--they're married--were good at raising money and getting a respectable, though undistinguished, product on the web, but never mastered the basic economics of why people go to a local news site.

SDNN tried to succeed at local news by, in its words, creating a conversation. After a little more than a year, the news site is no longer operating. I offered my services to SDNN, early on, and also gave Bry some free advice. When SDNN had an opportunity to hire a senior executive to help run things, Bry and Senturia chose to go in a very different direction. So, that’s the full disclosure.

Beside the dynamics created by overconfidence, SDNN lacked a mastery of how to fit into the San Diego marketplace. Finding the right niche is not an easy to solve or short term problem. But it must be addressed early on. Making a better personal computer did not drive Apple’s success. Creating innovative products that were useful—and not available elsewhere—made Apple the growth stock it is today.

The other problem is usually internal. I can only speculate about SDNN's work atmosphere. But creative enterprises require motivated teams that become better with time and are driven by factors besides a paycheck. That’s where leadership comes in. Attitude and leadership should not be confused. SDNN had plenty of attitude. That is good. But it’s not enough. Solid leadership is not about charisma. It is built upon predictable behavior, a sense of service to the team, and steady focused attention on achieving clear goals.

The final piece of the puzzle involves using money wisely. Media enterprises burn through dollars rather quickly. Deciding how to spend money can never be driven by personal ego. Ego can be a useful driver in successful organizations but only if it is purposeful. To slightly alter the words of the late Hunter S. Thompson, the media business is a cruel and shallow money trench.

According to former business professor and “Good to Great” author Jim Collins, the most successful organizations and executives are built upon personal humility and professional will. As we learn from failures--even noble failures—like SDNN, it is instructive to see if Collins is right. In my experience, he’s nailed it.

Of course, this commentary is based on my own opinion, personal observation, and what could be inferred by reading SDNN over the past year. At this writing, the fact that the site's link is still active may indicate that Senturia and Bry will sell the site, re-tool and relaunch, or try again in another form. I can only guess, because when I contacted Bry to find out what happened and about future plans she politely declined to comment or engage in a conversation. In any case, I sincerely wish them well. There's no pleasure in watching the community lose a news organization.

1 comment:

Gary Kelley said...

Insightful knowledge and true wisdom from one the good guys in the News Business. A rare combo in the current downfall of television news. I found your blog and will check back ofter. I need to subscribe. Excellent.

Gary Kelley
Facebook - Weather for Southern CA.