What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) June 28, 2009

The Changing of the Guard – Part I



An “interesting” dynamic is taking place across the corporate landscape that is worth monitoring by existing and aspiring organization leaders. The primary goal of every business is to generate revenue and make a profit. The role of management within the organization is to get work done through others who have the knowledge, skills, and abilities to be successful. Yet, the behaviors, attitudes, and practices in Corporate America around talent management (employee selection, development, promotion, and termination/downsizing) defy logic in meeting and exceeding the corporate mission.

This week’s blog is Part I of a three-part series on workplace diversity, aging, and the corporate workforce. Recent reports by the Equal Employment Opportunity Commission (EEOC) and studies by the Society for Human Resource Management (SHRM) have pointed to a significant increase in age discrimination. Elimination of “older” employees (and programs) in the workplace, regardless of their level of competence and knowledge have become commonplace. The current techniques towards workplace age diversity appear to be a “zero sum”, “no middle ground” approach. The following examples come from experiences witnessed, observed, or conducted by leaders at different organization levels in the public radio industry. These examples can readily be seen in other industries, and will be addressed in parts two and three of this series.

Attempts of Catering to Age Demographics

During the 1st quarter of 2009, three highly recognized radio stations in the Chicago, IL area (1 AM station, 2 FM stations) discontinued popular radio programs. In all three cases, the organization’s leadership contended the objective of eliminating these “older” programs was to cater to a changing, demographical listener audience. While the reasoning for re-programming is somewhat viable, the method used leaves room for concern. The three radio programs were totally eliminated. There was no attempt to find an alternative time slot in order to maintain the existing customer base while catering to a new customer base.

At the AM radio station, there was a long-standing, mid-morning talk show. I do not have access to any organizational or marketing strategy for this discussion, however, the 18-35 year olds that I have discussed this with (I am a college professor, and I talk with hundreds of 18-35 year olds on a regular basis) first, do not listen to AM, and second, have no inclination to start listening to mid-morning AM radio, whatever the programming is. It would be interesting to see what the radio station leadership has projected for financial success based on this re-programming decision.

In the case of one FM radio station morning show, the objective was also to gear the programming to a younger listening audience. This audience is part of what we call the “hip hop” culture. However, given the technological advancements in our society, the “hip hop” generation typically invests its time, effort, and money in downloading music, MP3’s, IPOD’s, etc. instead of listening to radio stations. There is potential for music radio to take the slow road to obsolescence like the newspaper industry is experiencing. With so many means of access to information and entertainment through technology, it is the “older” generation which will continue to utilize the traditional media. An opportunity to retain the older listening audience may be missed.

In the case of the other FM station, a totally jazz format was replaced by an all-Hispanic format – the whole station was replaced. I applaud this station for embracing cultural diversity and catering to a rapidly growing Hispanic audience. However, it is difficult to understand why there was no means for catering to both listening audiences. Could there be favorable time slots to realize opportunities in both markets? Has this leadership decision opened the door for other radio stations to move into a niche and thereby reduce the profit-making objectives of the station that switched formats?


The Call for Change

The elimination of these radio programs is only one side of the issue. From the organization’s viewpoint, there are probable, possible financial implications which lead to the decisions. Increased employee salaries, decreased advertising and sponsorship dollars influences decisions in the radio industry. The leaderships’ analysis in each case identified the need for a change in direction.

The verdict is still out on how the leadership decisions by these radio stations will result in increased profitability. It has only been 90 days. However, it would be interesting to know the age range of the leaders who made these decisions. It would also be interesting to know if these leaders are truly part of the listening audience of their new radio programming. Finally, it would be interesting to know what feedback the radio stations have received from their listening audience and other stakeholders since the changes have been made.

“To Be Continued”

There is a significant impact on corporate stakeholders and society based on how corporations manage workplace diversity. The leadership approach taken by the radio industry can also be observed in other highly profitable industries. The next bi-monthly entry (Part II – Changing of the Guard) will address the effect of age diversity in the workplace on issues such as: team productivity; team effectiveness; employee morale; and the critical knowledge management/knowledge transfer process.
More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). Feedback to the bi-monthly blog entry is always welcome.