Our industry has been grimly accepting declining circulation and readership trends for many years. Indeed, many professionals accept "no time to read" and "changing lifestyles" as factors they can do nothing about.

There’s no question that we are faced with a challenging media environment. Research sponsored by ASNE and NAA documents this. But that study -- called So Many Choices, So Little Time by the NAA and Leveraging Media Assets by ASNE – also shows that newspapers remain Americans’ primary source for local news, utility information and advertising. It points out opportunities to leverage these strengths with promotion.

An earlier study on Generation X media usage released by ASNE in 1996, What’s Important to Generation X, demonstrates that the younger generation reads newspapers, but for different information than older generations. NAA’s current teen study, Competing for the Markets of the Future, covering youth ages 12 to 17, draws similar conclusions.

Despite such promising research, many in our industry write about newspapers as if they were on the brink of accelerated decline. This is why the ASNE Readership Committee and NAA’s Industry Development Committee asked, "Is any newspaper actually growing? If so, how?"

Those questions led to this study of growing newspapers. The study team – an editor, a circulation professional, researchers and the firm of Clark Martire & Bartolomeo Inc. – found newspapers with strong growth records and visited them.

We did not know what we would discover. We hoped we would find a central theme and a handy list of best practices. To be frank, we hoped for a silver bullet. But, as with prior research, there was no silver bullet. Instead, we found several themes that are more about the newspapers’ cultures than their operational tactics:

• Broad, deep local news reports that have been shaped with close attention to readers’ lives
• Outstanding teamwork throughout the newspaper
• Leadership that fosters a creative, empowering environment
• An intense focus on the reader as a customer
• Aggressive interest in "owning the market"
• A focus on connecting with the community that gives the newspaper its reason for existence
• Strong execution of core journalism, production, marketing and delivery functions – functions that many papers do well, but fewer do well every day

But, if we failed to find a readership silver bullet, did we find a primary conclusion? Some core insight that ties everything together? I believe we found two:

At each newspaper we studied, departmental walls have fallen. Editorial, advertising, marketing, production and circulation departments work together to manage the intricate process of readership growth. Without backing down an inch on maintaining an independent voice, they work as a team to serve their community with a newspaper that truly belongs to the community.

That is why this report does not reflect a traditional newspaper organization chart. If you are disappointed because you don’t find chapters on a particular department, we ask you to put your disappointment aside and consider this:

The newspapers we studied seek excellence within each departmental discipline. But each newspaper attributes its readership success more to the skill with which departments work together – and to the total organization’s heritage of growing together.

And, then, we found a fundamental strategic philosophy at each newspaper: Profit follows readership. Each manages first for circulation market share growth. This shows in basic budgeting decisions, and it shows even more strongly in how daily activities are carried out. Financial reward has, indeed, followed this strategic focus on readership. Each newspaper we studied is admirably profitable.

This study should tell even the most discouraged newspaper person that our future – challenging though it is – does not have to be a future of managing in decline. Indeed, we believe the study shows that our industry can turn the readership tide. Hence, this publication’s title, Turning the Tide. We believe this study will be a success if it prompts a shift in dialog among newspaper people – a shift from lamenting our decline to planning our growth.

CREATING A NEW REALITY

Not so many years ago, luring subscribers was easy. Circulation sales managers ran promotions, put telemarketers to work or sent crews into the field. The orders came in, and there was little need to worry about existing subscribers because they simply renewed their subscriptions whenever we asked them to.

But times changed. Television, recessions, computers and busier lifestyles all get some of the blame. Newspapers also have their share of blame to shoulder. We have been slow to recognize the problem and slower to make meaningful changes.

The result? Daily newspaper readership is down to 59 percent from 78 percent in 1970. If something isn’t done, readership will drop below 50 percent in 10 to 15 years.

Good-bye to market share.

Good-bye to dominance in the market.

Hello to being part of the crowd rather than leader of the pack.

That’s why the lessons of these case studies are so important. These newspapers have broken the vicious circle of readership decline with what management guru Peter Senge calls a "virtuous circle":

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Although the newspapers we visited use different techniques, each studies its market carefully to understand it, listens closely to readers to gauge their reactions to the newspaper, responds to readers with a strong local news report and outstanding customer service – and achieves the ultimate goal of circulation market share growth. At each newspaper this self-sustaining circle of effort rests on a foundation of strong leadership. Here is how they do it:

UNDERSTANDING THE MARKET AND AUDIENCE

Remember, your readers think of your newspaper as their newspaper. So find out what they expect of "their" newspaper.

To do this, you must pay attention to the changing needs of your audience and stay on top of trends in your market. This is where research plays a key role. From Myrtle Beach to Sacramento, newspapers that consistently grow circulation and penetration rely on research.

In Myrtle Beach, S.C., market analysis helped The Sun News juggle the distinct needs of two reader segments: residents and tourists. A staff team broke out of the usual content practices with a single-copy edition called The Beach.

Studying your market can help you define local news the way readers define it.

For the Daily Herald in Roanoke Rapids, N.C., that means balancing a commitment to in-depth reporting with birth and death announcements, engagement and wedding announcements and school honor roll lists. It means all photos are of local people and places.

In Myrtle Beach, it means sophisticated local reporting that helps readers find solutions to community problems – and it means Neighbors. Jackie Harder, who was editor of The Sun News’ Neighbors sections when this study was done, says the secret to neighbors’ success is, "We always say yes when community people come bearing tidbits of news. I get so much happy mail."

In Sacramento, listening to readers includes inviting them to news meetings. Calling the community visitor "Dr. Risk," The Bee brings citizens in for a week at a time to join the daily newsroom discussion about story play.

Another way of learning more about the community is getting out there and mingling – connecting on a personal level.

In Sacramento, The Bee celebrates diversity with its readers by sponsoring the Festival de la Familia and the Asian Pacific Festival.

At the Citizen in Laconia, N.H., Circulation Director Peter Fallon gets out of the office and coaches youth sports.

Debbie Chiarella, publisher of The Sampson Independent in Clinton, N.C., checks the paper for local kids who have won awards. Then she clips the announcement, laminates it and sends it to the child with a note of congratulation.

And no one can ignore the Naples (Fla.) Daily News marching band, consisting of employees and readers, as it takes to the street for community celebrations.

GAUGING MARKET RESPONSE

This means learning the specifics of what readers think of your newspaper. What they like and don’t like. What’s working and not working. What they want and don’t want.

The Sun News in Myrtle Beach uses its annual customer satisfaction survey to monitor its position in the market.

The Press-Enterprise in Riverside, Calif., took the advice of columnist David Broder and sent reporters door-to-door, asking residents about the most important issues in their lives. These visits helped the newspaper expand and deepen its local news focus.

In Bridgeport, Conn., a Connecticut Post assistant managing editor calls every news-related subscription stop and just listens.

TREATING READERS AS CUSTOMERS

Customer service is an old concept, but it never goes out of style. It’s critical to your newspaper’s success. The newspapers we studied understand this, and sometimes they go well beyond industry norms to meet customers’ needs.

The Connecticut Post delivers the paper whenever the subscriber wants it. For example, barbershops can have the paper delivered every day but Wednesday.

A Naples Daily News district manager will personally deliver a missed paper within thirty minutes of the customer’s call. The Benton County Daily Record in Bentonville, Ark., delivers missed papers all day.

The Press-Enterprise calls three different weather services every day. If even one reports the chance of rain, every paper is bagged that day.

The Sun News put itself through a major reorganization and invested in new computer equipment to create a customer service department that can handle a classified ad, a vacation stop or a question about who won a high school football game.

These newspapers work this hard to keep their customers happy because they know it is the key to building market share through retention.

Some newspapers take retention so seriously, they joke that death is the only reason they’ll accept for stopping a subscription. The joke becomes serious intent at newspapers that try their utmost to keep customers happy in the first place.

They do this by listening to readers and doing everything they can to deliver what readers want. If readers say Little League scores deserve a place in the newspaper, the newspaper does its best to find a place. If readers say a serious community issue is being overlooked, the newspaper responds with in-depth reporting. If readers say suburban coverage is as important as statehouse coverage, the newspaper assigns suburban reporters who are as skillful and experienced as its statehouse reporters.

The newspapers we studied treat readers with respect. A reader who calls any department with a complaint or a suggestion isn’t brushed off. The reader gets an attentive hearing and an informed, solution-oriented response.

MORE AND BETTER LOCAL COVERAGE

Readers are telling American newspapers that they want more local news. They aren’t kidding. They think their communities should be the center of the local newspaper’s universe. Readers aren’t just asking for more city council stories, though. They are asking for micro-level neighborhood news on the one hand and tenacious reporting of complex issues on the other. And they are asking for help in learning about solutions to community problems.

The newspapers we studied don’t think they have to choose between in-depth reporting and micro news. They provide both. And they don’t think they have to choose between uncovering community problems and chronicling community successes. They do both.

For Riverside’s Press-Enterprise, with a circulation of 168,000, a strong commitment to local news means intensive zoning to make possible a broad, detailed local report – even though its competitive strategy also must include publishing a complete news package that can stand up to the Los Angeles Times and other metro newspapers in the region.

Smaller newspapers with different competitive challenges simply overwhelm their newshole with local.

George Loftus, circulation director of the Benton County Daily Record, says people in his community won’t read national and international news in the Record because other sources are saturated with it.

Debbie Chiarella, publisher of The Sampson Independent, says, "The competition can’t cover local news like we do."

The mid-sized Connecticut Post fills its front section with local news. It further demonstrates its commitment through zoning.

The Sacramento Bee is the largest newspaper in the U.S. with consistently growing household penetration. It publishes a complete, much-honored package. And it lets its readers know it is paying attention to them by producing a strong local report that reflects their interests, their communities, their lives.

UNDERNEATH EVERYTHING, STRONG LEADERSHIP

Nothing you’ve just read about could have happened without strong leadership.

When we looked at the leadership qualities of growing newspapers, several things stood out.

One was continuity. We saw it in all departments – newspaper professionals who have been with their papers for 10, 20, even 30 years. They believe this has given them an important edge in facing competitors with more transient leadership.

Flat, open organizations are the norm at these newspapers. Department heads typically report directly to the publisher. This combats departmental isolation and arrogance, and it opens the channels of communication.

The Sun News has created a model no-secrets environment. For instance, the paper’s financial performance is posted on bulletin boards for all employees to review.

At The Desert Sun in Palm Springs, Calif., the operating committee holds twice yearly meetings that are open to all employees.

We found a strong commitment by senior leaders to fostering teamwork.

The Sacramento Bee has created a program, called Leadership Bee, that puts a cross-functional team through an intensive year of studying the total newspaper operation while carrying out a project that supports one of the newspaper’s key strategic objectives that year.

In Myrtle Beach, the team that created The Beach included representatives of each department.

The leaders we met didn’t encourage teamwork just to develop more efficient operations. They also were looking for the creativity and risk-taking that emerge in an environment where people know how to work and communicate across departmental lines. They were looking for out-of-the-box thinking.

At these newspapers, when people take their best shot at solving a problem and fail, the failure is used as a learning tool. Then a new solution is developed. When solutions work, employees are praised – not criticized for acting too quickly.

Out-of-the-box thinking led The Press-Enterprise to organize its classified automotive ads two different ways – by make of car and by price.

The leaders we studied place great importance on productivity and doing a job right the first time.

The Press-Enterprise believes subscribers want old-fashioned, get-it-right-the-first-time reliability. Errors are not accepted there. Each error is recorded, and a low error rate is needed to keep your job. Business Editor Andy McCue says, "This newspaper is not about flair. Here, the watchwords are accurate, fair and thorough. Those are the qualities that affect penetration."

At the Telegram-Tribune, in San Luis Obispo, Calif., carriers are charged a dollar for every missed delivery. The fines go into a pool that can be won by carriers with outstanding service records.

These approaches are powerful ways to build a large, loyal readership base. They require hard work – and, at many American newspapers, cultural change. Our industry is known for hard work – but not for welcoming change.

CREATING A NEW REALITY FROM A STRONG PAST

In a speech to the business school at Washington University in St. Louis, John Jacobs, chief communications officer of Anheuser-Busch Companies Inc., said, "Past achievements are the most eloquent and compelling arguments against change that you can find in any organization."

Newspapers certainly have a proud past. We hold a special place in the United States Constitution – one that no other business has. Our powers have helped shape history and governments. We have applauded heroes and exposed villains. We have mounted campaigns that improved the lives of whole communities.

The power of newspapers has come from their dominant place in their communities. If readership continues to erode, newspapers will lose that position. This not only will be bad for business, it will silence powerful, independent voices that are essential to American democracy. Readers know this. In the communities we studied, readers value newspapers that value citizenship.

Declining readership is not a fate that must be accepted. But to change our future, we must first change ourselves.

Busch’s Jacobs said leaders don’t wait for others to define the future. They define it themselves – like the leaders of the newspapers we studied.

"Ultimately, there is not just one future," Jacobs said, "there are always several futures, waiting to be born.

"And, as the leader, it is our job to identify the one that best meets our needs and to ensure that it is the future that becomes reality."

(Introduction author Miles Groves is a vice president and the chief economist of the Newspaper Association of America. He served on the study team that researched and created Turning the Tide. Contact him at tveblen@aol.com)