From the category archives:

NCI

I was on the phone with someone this morning who I should have talked with a month ago.  I had kept putting the conversation off.  Not because I didn’t want to talk with them, but because I couldn’t get myself organized to have a productive conversation.

She said, You must be very busy.

Not in any unmanageable way, I answered.

What I explained was that the restructuring process that we are undergoing at NCI is progressing in an orderly and productive fashion.  There isn’t an unreasonable amount of time that needs to be spent on it, and the key issues are well-defined and being advanced by a team of very capable professionals who do this kind of thing all the time.

But it does create a distraction.  In the face of uncertainty you spend time thinking through the different possible outcomes and waiting for the next development, which help you narrow that range of outcomes.

We brought the top management together this week to talk about where we are.  I outlined my belief that as a company we’d come through two critical phases:  the first, where we reacted to the economic downturn; and the second, where we created new frameworks for recovering.

We were now at the third phase:  The selling phase.  And, I observed, we weren’t moving with as much purpose and effectiveness as I wanted.

The problem, I think, is that we still believe we are mired in uncertainty.  The questions “When will things improve” and “Will things get any worse” are central to our conversations.

That has to change.  The real questions need to be “What did we do this week and how did it work?” and “If things didn’t work the way we expected, what should we change?”  And then, we have to make the changes.  The only way to have these conversations is to track, report and discuss specifics.  Otherwise, you end up mired in generalities.

The challenge is to really demonstrate the mental fortitude and discipline to face forward.  I acknowledge it’s hard, but boy, it’s necessary.

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Yesterday we announced that our company,  Network Communications, Inc. , had opened conversations with its creditors in order to restructure its balance sheet.  The  development was reported in Business Week and has appeared in numerous news outlets across the web.

The Business Week reporter did a balanced job in describing the situation.  I think one quote sums it up pretty well.

“It’s not a company with a fundamentally broken business model,” McCarthy said. “It’s a company that’s gone through a radical adjustment in size.”

I’m not going to comment on the restructuring process.  A lot of media companies, such as  Reader’s Digest and Freedom Communications,  have gone through restructurings the last two years, emerging successfully as viable businesses with manageable capital structures.

Right now we’re focusing on communicating clearly with our core constituents about what the announcement means for our business.  The short answer is, It’s business as usual.    NCI is in the enviable position of generating more than enough cash to fund its day-to-day operations.

To help spread that message, we sent out copies of our press release and a detailed Q&A to our employees and business partners.  I’ve held a series of webinars to review the materials and address any specific questions.  We’re also reaching out to our key vendors and customers.

I’ve also focused on another message:  Our future is what we make of it.

The difficult market conditions of the past two years have driven us to be more disciplined, more resourceful and more innovative.  This approach has borne tangible business results:  We have expanded our customer relationships, we have built new products, we have strengthened existing products and we have managed in such a way that we’ve been able to sustain our business model.  We’ve been able to do this because of the remarkable focus and commitment of the people who make a difference every day:  The employees and independent distributors associated with the company.

Right now we are facing two basic facts.  Unquestionably, an economic recovery is underway.  Unquestionably, our customers have been shocked by the changes in their business and are reluctant to increase their marketing spend.

To rebuild our business, we need to help resolve the contradiction between those two facts.  We can do this three ways:

  • We have to be in front of our customers and help them see that market has improved enough for them to feel confident that they will get a return on increasing their marketing spend;
  • We have to be fluent in explaining why our traditional businesses continue to provide value to our customers, in terms of visibility, leads and business results.
  • And we have to be energized in showing our customers how our innovative new services, particularly in Internet and social media marketing, can give them powerful ways to expand their brand footprint and build their business.

Executing on these three activities is the most important thing that we can do right now.  That is how we will make our future.

A note:  I have closed comments on this post because of the sensitive nature of this dialog.  If you have any questions you can e-mail me at dmccarthy@nci.com.
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The Kelsey Group examines NCI’s DigitalSherpa initiative

March 12, 2010

Over the past year, the team at NCI has been developing a social marketing service under the umbrella of Digital Sherpa for local advertisers. The service was launched commercially into the multi-family market last August and into the home design market in December.
Our attention over the past months has been focused on executing on [...]

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The value of sharing knowledge, even when it’s not about your product

February 18, 2010

Over the past year, I’ve been encouraging our teams to have gain expertise about social media and have conversations with their customers about how these new tools can help them in their business.
Where I’ve met resistance is from people who ask, Why? Our business is advertising, and we’ve got print and internet products to [...]

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Yellow pages print pick-up declines while our printed catalogs stay steady. Why?

January 11, 2010

In the midst this great media shift to online and interactive, my company continues to distribute close to 10 million printed catalogs of homes for sale and apartments for rent every month.
outWe get two tangible points of confirmation for continuing with our print distribution. First, the printed copies get picked up. More than [...]

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Happy New Year!

December 31, 2009

Wishing everyone a safe and healthy Happy New Year. A special thank you to everyone at NCI. In 2009 you demonstrated remarkable strength, perseverance, energy and good spirits. My wish for all of you is that in 2010 your labors bear fruit. I hope that we all remember the lessons of the past year and [...]

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