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By Victoria Larson #2606 Program Challenges Top Executives By providing a four-week leadership program for its high-potential executives, Knight-Ridder, Inc.is helping the company better manage change.

hey were sinking. Even corporate change. database, which wasn't dependent though they weren't far In 1988, CEO Jim Batten rec o g n i z e d upon advertising revenue. But these f rom dry land, it was two issues that would impact the preliminary changes weren't enough. T obvious that the barre l s company's future dramatically. First, Batten and Ridder felt that the that kept their makeshift raft afloat when Batten and Knight-Ridder company’s top executives need to were coming untied—and the raft p resident Tony Ridder re v i e w e d fully understand the changes taking was falling apart. To reach their their HR planning strategy, they place in the external environment. destination, they knew that they all realized that during the next several To best steer the org a n i z a t i o n needed to work together. years there would be more senior- through the transition, they decided But this wasn't a crew with much level vacancies than there were to offer an executive education rafting experience. Rather, it was a individuals prepared to fill them. If program. g roup of executives from Miami- Knight-Ridder didn't aggre s s i v e l y based Knight-Ridder, Inc., racing develop its key people, it wouldn't Internal program meets across a swamp in the Florida Keys. have the re q u i red leadership to company's needs. Once Batten The hands-on outdoor experience navigate the business into the and Ridder determined the need for was helping to create a team mid-'90s. executive education, they could've e n v i ronment and establish tru s t Also, Knight-Ridder's market was sent the company's high-potential among participants for the rem a i n d e r evolving. As a global communications employees to university courses for of Knight-Ridder's four- w e e k company, Knight-Ridder is engaged executive development. Instead, Executive Leadership Program. in newspaper publishing, business they gave Rob Reed, Knight-Ridder's Companies across the United States news and information services, di r ector of training and development, a re implementing programs to newsprint manufacturing and cable the charter to create a program that empower employees at all levels of television. With rumors circulating would best meet the company's the organization. But Knight- of the Information Superh i g h w a y needs. Reed led the way in developing Ridder's program is different. Now and online services, Batten knew that a customized internal program for in its sixth year, the Executive the corporation's future success res t e d the corporation's high-potential Leadership Program is designed on its ability to adapt to the changes. editorial and business personnel. specifically for the company's top Batten and Ridder already had Reed says that his decision to make 150 to 175 managers and executives. taken some preliminary steps toward the program internal was based on By broadening and elevating their altering the corporation's business two primary concerns. First, the executive perspective, the Knight- s t r a t e g y. For example, they sold university programs that off e re d Ridder program helps participants Knight-Ridder's eight aff i l i a t e what Knight-Ridder needed cost both to focus on the strategic goals of television stations, allowing them to around $4,000 weekly per employee the organization and to prepare for purchase an online, user-subscribed and usually lasted five to six weeks.

MAY 1994 PERSONNEL JOURNAL EXECUTIVE EDUCAT I O N

Knight-Ridder was interested in changing, and their needs were for three qualities in each speaker. taking a less expensive appro a c h . shifting. For example, people had 1) They needed to be experts in M o re importantly, the corporation less time to read newspapers, and their areas. didn't want employees studying they were looking for other sources 2) They had to be flexible to what was happening at other of information. Knight-Ridder's program and create companies when they could, through · As a new class of competitors was the material specifically for the an internal program, focus on critical surfacing, such as online services, the company. strategic issues affecting Knight- industry was transforming. 3) They needed to be strong Ridder itself. "We wanted employees · Changes in technology were discussion facilitators and demand to focus on our history, our culture accelerating the rate of change in the participation from the program class and our values," Reed says. industry. members. Although executive education was · There was an underlying, yet The consultants supplied Reed an exciting new initiative at Knight- powerful, perceived conflict between with in-depth information on four or R i d d e r, the company already had achieving journalistic excellence and five candidates. From these, Reed established training as part of its maximizing shareholder value. narrowed the selection to three and corporate culture. Hundreds of Knight-Ridder determined that it then interviewed each on the tele- employees in lower levels of the needed to strengthen the executive phone. Knight-Ridder paid the final organization were attending multi- perspective of current and future two candidates to prepare a dry run day developmental programs each o rganizational leaders to addre s s of their seminars, which they year at the Knight-Ridder Institute of these issues. Before the late '80s, presented in front of a representative Training in Miami. Likewise, at 30 of Reed says that employees were group of 12 to 15 executives. Finally, Knight-Ridder's companies in North single-focused and saw departments a speaker was selected—but, even America and Europe, corporate- as competitors for the same scarce then, Reed often asked for a few trained line managers and human resources. Knight-Ridder wanted to changes in the presentation to better re s o u rces professionals conducted change that attitude. "We needed our meet the company's needs. skill-building programs in marketing, executives to be able to look out over Knight-Ridder followed these sales, journalism and pro d u c t i o n time, over divisions and over issues steps in selecting every speaker. The techniques. "There has been and will to embrace the whole organization," process for each one took approxi- continue to be a culture centere d Reed says. This became the primary mately two to three months, but Reed around learning," Reed says. goal of the educational effort. says that it was worth it: "When we With the help of Executive were done, we had speakers who The program's goal is to K n o w l e d g e Works, Reed created a knew more about our organization broaden perspectives. Reed's first f o u r-week program to accomplish and more about the quality of our step was to find someone to assist this goal. Because Knight-Ridder people." him in the design and creation of the had found classroom learning to be a Since 1988, more than 30 executives program. After much research, he successful training method in the have participated in the experience commissioned Executive Knowledge past, the bulk of the program is what each year. Each class, as the company Works, a consulting firm based in Reed calls "traditional," incorporating calls the participant group for each Chicago that specializes in the lectures, case work and a variety of annual session, is selected through design, development and implemen- interactive discussions. “It’s funda- Management Development Reviews. tation of executive education pro- mental, cognitive, intellectual pursuit Reed says that these reviews (which grams. in which a group of people sit down a re similar to management audits Before it was possible to begin and explore ideas, learn new concepts that support traditional succession planning the specifics, however, and apply what they learn to their planning) help the corporation identify Knight-Ridder needed to further own situations," Reed says. potential leaders through a written refine the critical business issues To provide the most successful and verbal review process. "Through defined by the CEO. To accomplish learning environment possible, these reviews, which are conducted this, Reed and the consultants held Knight-Ridder selected its speakers at each individual company by informational interviews with and learners care f u l l y. For each corporate and local officers and HR corporate officers and potential program, consultants from Executive people, we find people who are at the p rogram participants. The issues K n o w l e d g e Works searched its right stage in their careers to be part identified were: nationwide network for appropriate of the Executive Leadership · Knight-Ridder's customers were experts. In general, they were looking Program," Reed says.

MAY 1994 PERSONNEL JOURNAL EXECUTIVE EDUCAT I O N

Knight-Ridder tries to include and investing the time in themselves. of newspaper people." To provide executives from a variety of func- Batten also iterates the program's insight to the organization, five or six tional areas in each class. Diversity is purpose: "Upon completion of the N A S A s t a ff members, including also a concern: Reed's goal for the program, challenge us and help us astronauts, ground controllers and program is that each class include at think about the direction of the technicians, join the group for the least 10 women and five people from company." full week. A tour of Johnson Space minority groups. "If we hadn't been For the rest of the first week the Center and small group discussions a g g ressive as an organization in class members attend interactive with the divisional directors also developing a diverse bench strength, sessions that focus on Knight- facilitate learning. In addition to this it's possible that we could have Ridder's traditional and emerg i n g living case study, leading experts ended up with a group of powerful values in the context of current and p rovide conceptual models and white guys at the upper levels," he anticipated external pre s s u re s . guide participants through an says. That hasn't happened, and so Speakers share insight on such topics exploration of major sources of, and far, the company has met Reed's goal as how changes in societal values responses to, global, industry and with each class. affect the organization and the rela- o rganizational change. Participants tionship between technological examine how org a n i z a t i o n s ' The program focuses on changes and society's changing responses to the societal and c h a n g e. Knight-Ridder sets the values. In addition, the participants industrial forces of change determine stage for the classroom experience by a re forced to examine their own failure or continued success. sending participants to a two-day leadership styles through a 360 During the third week, partici- O u t w a rd Bound session in the degree review completed before the pants examine how Knight-Ridder Florida Keys. In addition to building program by nine colleagues. The most effectively can leverage its and racing rafts, the executives start of each day, as well as the last internal capabilities-marketing, participate in other teamwork and half-day of each week, is reserved for finance and human re s o u rc e s - t o leadership initiatives, such as a debriefing facilitated by Executive c reate a competitive advantage. maneuvering in teams through an Kn o w l e d g e W orks' President An t h o n y Leading content experts hired by obstacle course. Reed says that these Fresina. "If there's an idea that came Reed facilitate the examination, o u t d o o r, hands-on activities unify up that didn't get treated richly which includes a session on how the class members so that they are enough, or somebody has evaded an Knight-Ridder is perceived on Wall better able to deal with actual issues issue the day before, he'll bring it Street. This week's program is held during the rest of the program. This up," Reed says. at a different location each year. The is especially important at Knight- He adds that he wants the execu- goal is to take participants away R i d d e r, where participants come tives to leave the first week with from their usual business environ- f rom large and small newspapers their heads swimming. "We want ments so they can look at issues from and information companies through- them to be so dissatisfied by what a different perspective. Last year, out the corporation. "It acts as a sort they don't know yet that they can't they went to a conference center of leveling experience," Reed says. look with comfort at their environ- outside of Washington, D.C. "By "By the time they finish those two ment in the same way as before," he changing locations, people more days, the participants clearly have a says. easily adjust to a different mindset," different sense of one another." For the second week the partici- Reed says. By the end of the content- On the third day, the class goes pants journey to Johnson Space driven week, he says that participants back to Miami for a welcome by Center in Houston to study NASA. have a clearer sense of what consti- Batten. At this meeting, Batten Reed says that Knight-Ridder isn't tutes a sustainable competitive explains the guidelines for partici- using NASA as an example, but advantage. pants, which include: rather using it as a mirror to examine By the final week, participants · Thinking independently. The how another organization, also have spent 22 days together exploring company doesn't encourage the driven by values, has managed values, change and the strategic participants to become "corporate technological and societal changes. deployment of Knight-Ridder's clones." "The people who started NASAwere resources. To put their experience to · Asking questions and learning driven by the strategic mission of the test, they spend two days all that they can from the experience. putting [people] into space," he says. working on a custom-made, case- · Putting the organization behind "Even today, they're so focused and driven computer simulation of a them for the duration of the program single-minded, they remind us a lot media marketplace. The program

MAY 1994 PERSONNEL JOURNAL EXECUTIVE EDUCAT I O N requires the executives, working in p rogram—including transportation continue to examine the changing teams of five, to take on the role of and setup costs appro x i m a t e l y information marketplace. "It was the CEO. The team members begin by $14,000 per participant for four beginning of looking strong and hard establishing a strategic mission for weeks, or $3,500 a week. When into the future and facing change," their media properties, then they Knight-Ridder began this executive Reed says. collaboratively make decisions when education, the newspaper industry The Knight-Ridder Executive the computer presents them with was thriving. Just one year later, Leadership Program also benefits situations. For example, they may be however, the retail industry began individuals. In the past six years, asked if they want to purchase a re s t ructuring, centralizing and 80% of the company's officers and media product. Their decision slimming down radically. As a 90% of the publishers and presidents should rest on what they have result, retailers purchased less have attended the program. Before established as their strategic mission. advertising space, causing the participating in the educational As in actual business, their decisions newspaper industry and its related effort, most executives tend to have affect future options. "The situations businesses to suffer. one of two interests: journalistic test their values, their learning and Despite this down economy, senior excellence or business accountability. their ability to respond to ambiguity," management continues to invest in The program broadens these biases Reed says. He adds that the program the Executive Leadership Program. and, more importantly, develops in also brings out their competitiveness: Why? The answer lies in the pro- executives a new, shared perspective. "While the simulation isn't intended gram's impact on the organization "We have a tendency within the news to be competitive, it takes about 15 and on the executives who partici- industry to feel that we're different minutes before they're looking over pate. from other types of businesses. But their shoulders wondering how the The program isn't supposed to when you look at it from an elevated other teams are doing." provide answers or teach new skills. perspective, you see that although To end the program, the partici- Instead, it focuses the organization there are some unique aspects to our pants spend one full day with the on critical issues, provides multiple business, we're operating in the same company's top three executives— perspectives on those issues, gives e n v i ronment as other businesses," Batten, Ridder and Jack Fontaine, participants opportunities to process says Robertson. He says that this executive vice president responsible the information as a group and new perspective helps executives for Knight-Ridder's Business enables the group to make its own realize for themselves the conse- Information Services division. recommendations on how to lead quences of not adjusting to organiza- Through open, informal discussion, Knight-Ridder into the 21st century. tional, industry and global change. everyone exchanges ideas and Reed says that top management This also helps individuals realize examines vulnerabilities and credits the program with examining that they're responsible for the opportunities that could drive and even driving Knight-Ridder's organization's success. Knight-Ridder's future. A n g u s key business issues. This realization helps executives Robertson, a participant in last year's As Batten and Ridder search for lead Knight-Ridder into new ventures class, says that because the CEO new revenue sources, the Executive and alliances. For example, the gives participants support from day Leadership Program helps focus, corporation recently created an one, they know that their align and mobilize the company alliance with Wilmington, Delaware- recommendations are valued. "When round core issues. "The result is an based Bell Atlantic, one of the most we started the program, Batten told invaluable partnership between key p rofitable regional Bell operating us, 'You are the future of the company. executives and senior officers that systems in the United States-a My charge to you is when we get allows Knight-Ridder to more company that's five times larger than back together on the last day, tell me intensely embrace change," Reed Knight-Ridder. "We started out by and the other top officers what we says. telling our executives, 'Folks, there need to do and not do.' That was our Initially, the partnership took the are non-traditional competitors out mission," says Robertson, executive form of a corporate task force, made there of which we need to be aware,' editor of Washington, D.C.-based up of former participants, that " Reed says. "We've gone from just Knight-Ridder Financial News. focused on strategic issues and identifying them to joining with examined changes in re a d e r s , them." In addition, the company has Top management continues to markets and technologies. Since that created a design-research lab, located support the program, despite its time, the task force has evolved to in Boulder, Colorado, which partners c o s t s. Reed says that the entire d i ff e rent groups and studies that with Silicon Valley hard w a re and

MAY 1994 PERSONNEL JOURNAL EXECUTIVE EDUCAT I O N Sliding in Slime Promotes Trust and Teamwork Six years ago, Knight-Ridder Inc. ence, and [the facilitators] don't like you, too, or you're going to fall over recognized that the communications participants to know too much or slip into the slime, or whatever. industry was changing. With the about the program, so I probably So, you end up with a focused and e m e rgence of such technological shouldn't go into too much detail." bonded-together group, which real- advances as online services and dis - ly sets people up well for the intel- cussions of the Information Super What did you learn? lectual and work-related activities hi g h w a y , Knight-Ridder knew it needed "It built team spirit among peo- in the rest of the program." to adapt in order to survive. To help the ple and bonded the group together. company make the transition, the Also, it made us ask questions Is the program designed to Miami-based communications company about ourselves by putting us into promote competition among the decided to offer an education program various situations, some of which participants? to its high potential employees. were slightly intimidating, others "It absolutely isn't a test where Angus Robertson, executive editor of which required us to have a lot of it's survival of the fittest and they of Knight-Ridder Financial News, trust in other people and belief in want to see who has the right stuff was one such employee. Last year, he ourselves. Having talked to all the and who hasn't. It wasn't like that was selected to be a participant of the people who were in the program, I at all. There was some competition Executive Leadership Program. For know that everyone kind of dread- between teams, but it wasn't a three-and-a-half weeks, he and about 30 ed the Outward Bound experience, toughness contest. It was exactly other Knight-Ridder executives studied but came out of it upbeat. For me the opposite. You needed to have the implications of change and how it personally, it was such a powerful some internal courage, but we affected the organization. But before experience that I've gone back and didn't do anything truly dangerous, they were able to grapple with these done another Outward Bound and nobody was required to do issues, Knight-Ridder wanted to help program on my own. I took a anything that they didn't feel them know and trust one another. The group of teenagers on an Outward comfortable doing." company accomplished this thro u g h Bound weekend, in which I also Can you describe in some more a two-day Outward Bound program. participated. I felt that it was such detail how the activities promote H e re, Robertson discusses the a good experience for me—and teamwork? experience, what he learned from it and really for anybody—that I carried "You need to get your team from how it set the stage for the rest of the over into my [personal] life." here to there, and you can't leave four-week program anyone behind. To do so, you have How does Knight-Ridder benefit to get over obstacles-intellectual Can you describe the Outward from the program? and physical. It's not like a contest Bound experience? "It really brings together a group to see who will get there first. You "We did some sailing and some of people who don't know each have to get your whole team from team-building and tru s t - b u i l d i n g o t h e r, and who are going to be A to B. When you think about it, it's e x e rcises, the last one of which spending a lot of time with one really a lot like the work environ- ended up with a lot of us sliding another [during the next three-and- ment, or at least the way a work around in the slime of the Florida a-half weeks]. It very quickly environment should be. You've got Keys. We all came back on the bus b reaks down barriers. In the to lead the whole team or motivate to the hotel and had showers for O u t w a rd Bound program, you the whole group to get toan end." about six hours each Other people have to work with people; you have are going to go through the experi- to trust them. They have to trust —Shannon Peters software companies to design new initiatives need support for their range of business responses to our ways of distributing news. One ideas. Reed says that more often than challenges." project in the works consists of a not, that support comes from people portable media device the size of a who've been through the program Victoria Larson is a senior associate with legal pad. By touching the screen, and have studied the implications of Palatine, Illinois-based Executive users could access any page of the change. He says: "Now we're KnowledgeWorks. newspaper. equipped for understanding more The individuals within Knight- clearly what impacts Knight-Ridder's Ridder who develop these types of world and for creating a gre a t e r MAY 1994 PERSONNEL JOURNAL