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Shadow Government, Shadow Management

Whither cable news and corporate America?

Vol. 4, Issue No. 63 | November 11, 2008 By Denny Hatch
9

IN THE NEWS

What now for cable news?
Politics has never monopolized the conversation on TV the way it has during this election cycle. That's unquestionably true if we extend the definition of conversation to include partisan bloviation and endless conjecture. And since those rhetorical flourishes are the stock in trade of cable news outlets, those channels, as you might imagine, have had a monster year. For instance, from August through October, the prime-time audience for Fox News was up 99 percent, CNN 119 percent, and MSNBC 125 percent from the same interval last year. It's been a riveting ride. "I don't remember an election like this," said Phil Griffin, MSNBC president. "I do remember a month that was as incredible. That was November 2000 during the recount."
—David Hiltbrand, Philadelphia Inquirer, Nov. 6, 2008
My wife, Peggy, and I overdosed on the 2008 election.

Eighteen months ago—with 10 Republicans and eight Democrats vying for their respective nominations—we started slowly. By August of this year, we were hooked. We'd start the day at 6 a.m. watching MSNBC's "Morning Joe" and his happy crew—Mika Brzezinski, Willie Geist, Pat Buchanan, et al. At 1 p.m., over a sandwich in the kitchen, I'd look in on Andrea Mitchell. After work we'd surf the dials, hitting Chris Matthews, David Gregory and Keith Olbermann on MSNBC; Brit Hume and his wonderful roundtable on Fox News; as well as checking in on Wolf Blitzer and Lou Dobbs at CNN. Compared to the energy and excitement of the cable shows, network evening news was a cure for insomnia.

The cable folks parsed every speech, analyzed every gesture, trumpeted every miscue, interviewed everybody and anybody who might shed some light on the outcome, and involved viewers in the minutiae of political campaigning. It was a giggle while it lasted.

Now Obama is in while McCain and Bush are out.

The suspense is gone. Life is normal once again.

So whither cable? Will it wither and die?

Welcome to the new shadow government.

Changing the Business Model
With no election suspense to report, cable news must change or die. The change has started.

While still called "The Place for Politics," MSNBC's new tagline is "The Power of Change." "Race to the White House" with David Gregory has been renamed "1600 Pennsylvania Avenue," and "Countdown with Keith Olbermann" is now a countdown to what?

Based on what I see in the Nielsen ratings, these blowhards will spend the next two years talking to themselves and roughly one-tenth of 1% of the country. The utter boredom will be interrupted by sudden tragedies, tsunamis, floods, plane crashes, assassinations, celebrity deaths and kidnappings.

For us political junkies, the near future is a big ho-hum. I no longer look in on Politico.com or RealClearPolitics.com. I'm back to rereading the Aubrey-Maturin novels to prepare for our cruise next April, which celebrates the work of Patrick O'Brian.

I'm done worrying about the country. It's Barack Obama's turn.

About Shadow Governments
In democratic countries where elections can be called on short notice (e.g., the U.K.), the party out of power might maintain a shadow government, which means having in place the structure and personnel ready to take over in case it suddenly finds itself in the majority.

Takeaway Points to Consider

  • If you work for a corporation, it makes sense to learn all you can about its inner and outer workings, as well as what kind of shape it's in financially.
  • Is the business model under which your organization operated last year, and in prior years, still completely viable in these unsettling times? Or are changes in order?
  •  What do you know about the agendas of the officers and managers running your show? Are they making decisions based on long-term growth, or looking for a quick buck in order to collect bonuses or position the company for a sale?
  • How about the directors of your corporation? Are they in the pockets of management? Do they do what they're told? Or are they assiduously looking out for the welfare of the company—its people and its future?
  • It's imperative to fine-tune what Ernest Hemingway called your built-in, shockproof shit detector. In business and life, the one thing to be avoided is a surprise.

Web Sites Related to Today's Edition

"What Now for Cable News?"
http://tinyurl.com/5og25v

"MSNBC's Tag for Now: 'The Power of Change'"
http://tinyurl.com/5wpk5s

Bush creates shadow government following 9/11
http://tinyurl.com/5dyx3t

National Security and Homeland Security Presidential Directives 51 & 20
http://tinyurl.com/yqthor

"How the Thundering Herd Faltered and Fell" — Gretchen Morgenson
http://tinyurl.com/62bdcn
 

Companies Mentioned:
9

COMMENTS

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Comment *
Most Recent Comments:
John Walters - Posted on November 11, 2008
Another interesting and thought provoking article, Denny.
I think the current situation and the actions and events that led to it may, perhaps, lead to a complete review of the regulatory area for corporations.
First up - what do the Boards of Directors actually do? Or better, what do they do that the CEO does not do or should be doing? So the question is do they have a role at all in modern corporate organisations? It is often argued that they contribute wider experience than is available in house, but surely that can be hired on an 'as needs' basis without saddling the organisation with a permanent director drawing substantial remuneration to sit around a boardroom table offering monthly pearls of wisdom?
Secondly, don't underestimate the understanding and abilities of the auditor. Auditors learn an astonishing amount about the corporations they audit well beyond their apparent financial responibilities. Given the opportunity they could become a real force for ensuring that corporations not only toed the line financially but in business social and welfare areas too. They are independent and could report quarterly on all of these areas, as the motto of my own institute states, 'Without Fear or Favour'. (Given away my own profession there!).
At the very least I hope that the current situation will bring about reasoned argument for methods to avoid the worst excesses that are now becoming embarrassingly public.
As an aside and as a passionate advocate of the O'Brian books, I envy you your trip next April. I trust it will be on HMS Surprise.
PS As an accountant I can cope with your mathematical puzzles but do they deter others?
Wash Phillips - Posted on November 11, 2008
Genie Z - Posted on November 11, 2008
Speaking of those boards of directors, who are they? Why haven't their names been seen in public? Their choices are getting bailed out by us. If we have to cover their bets, why can't anyone tell us who they are? Shouldn't they be held accountable at least a little? They are the ones who set the salaries and golden parachutes. They set the direction of the company. Who are these shadow people? and how much are they benefiting from our public funds for their mistakes?
Dev. Kinney - Posted on November 11, 2008
When I was at Holiday Inns, my division, Holiday Press, once a basement operation printing only in green ink, grew during my tenure to be the largest commercial printing plant in the South. I had gone from a two-man art department to a pre-press operation and art department operating three shifts 24/5. Rather than kill myself running an operation that had no idea how to sustain itself, I left. In 5 years the plant was sold off and closed. People invested in a bad idea are either unable or unwilling to face the consequences.
We invested in the idea of foreign terrorism and used that idea to grow government and entitlements. That cancer spread throughout our economy and has almost wiped us out.
Denny Hatch - Posted on November 11, 2008
bilou - Posted on November 11, 2008
When more corporations realize that "doing good" is also good business, this will help the economy as well.

The "Double Down!" greed mentality, always needing a quick fix doesn't solve much of anything, though. It's an addict's mentality. (And, we ARE a nation of addicts!)

The few friends I've told about how my 401k actually gained during the 3rd quarter were beyond shocked.

When I told them that my investment was 100% in the socially-conscious option and that it has steadily gained just a little...but very nearly always a little, including this last quarter, it gave them pause for thought.

May more of us pause for this thought!
Nate - Posted on November 11, 2008
Thank you Denny, your 'spot on' with the bailout. When will the legislation be repealed that legalized this betting on Wall Street? Why aren't the Democrats being blamed for going along with this program? And who repealed free market capitalism, where it is the survival of the fittest? I don't think any one needs a 'new' business model, they need to get off their __ butts and do some real old fashioned work!
Fred Groh - Posted on November 11, 2008
Kristen - Posted on November 11, 2008
Not only is cable news going to need a new business model, they're also going to have to find a new way to appeal to advertisers. With the election over, these networks are facing significantly smaller audiences, and an even bigger issue-- there are no more campaign ads, which generated record ad revenues for these networks. Watch a set of commercials now, and notice how many "filler" ads (promotions/plugs for shows the network itself owns) are displayed compared to commercial advertising for products etc. Without the giant media budgets of the presidential campaigns feeding the coffers, these networks are taking a hard hit--one that only gets harder as the returns on internet advertising prove to be far more trackable, the data far easier to come by, and the costs per contact much lower.
Click here to view archived comments...
Archived Comments:
John Walters - Posted on November 11, 2008
Another interesting and thought provoking article, Denny.
I think the current situation and the actions and events that led to it may, perhaps, lead to a complete review of the regulatory area for corporations.
First up - what do the Boards of Directors actually do? Or better, what do they do that the CEO does not do or should be doing? So the question is do they have a role at all in modern corporate organisations? It is often argued that they contribute wider experience than is available in house, but surely that can be hired on an 'as needs' basis without saddling the organisation with a permanent director drawing substantial remuneration to sit around a boardroom table offering monthly pearls of wisdom?
Secondly, don't underestimate the understanding and abilities of the auditor. Auditors learn an astonishing amount about the corporations they audit well beyond their apparent financial responibilities. Given the opportunity they could become a real force for ensuring that corporations not only toed the line financially but in business social and welfare areas too. They are independent and could report quarterly on all of these areas, as the motto of my own institute states, 'Without Fear or Favour'. (Given away my own profession there!).
At the very least I hope that the current situation will bring about reasoned argument for methods to avoid the worst excesses that are now becoming embarrassingly public.
As an aside and as a passionate advocate of the O'Brian books, I envy you your trip next April. I trust it will be on HMS Surprise.
PS As an accountant I can cope with your mathematical puzzles but do they deter others?
Wash Phillips - Posted on November 11, 2008
Genie Z - Posted on November 11, 2008
Speaking of those boards of directors, who are they? Why haven't their names been seen in public? Their choices are getting bailed out by us. If we have to cover their bets, why can't anyone tell us who they are? Shouldn't they be held accountable at least a little? They are the ones who set the salaries and golden parachutes. They set the direction of the company. Who are these shadow people? and how much are they benefiting from our public funds for their mistakes?
Dev. Kinney - Posted on November 11, 2008
When I was at Holiday Inns, my division, Holiday Press, once a basement operation printing only in green ink, grew during my tenure to be the largest commercial printing plant in the South. I had gone from a two-man art department to a pre-press operation and art department operating three shifts 24/5. Rather than kill myself running an operation that had no idea how to sustain itself, I left. In 5 years the plant was sold off and closed. People invested in a bad idea are either unable or unwilling to face the consequences.
We invested in the idea of foreign terrorism and used that idea to grow government and entitlements. That cancer spread throughout our economy and has almost wiped us out.
Denny Hatch - Posted on November 11, 2008
bilou - Posted on November 11, 2008
When more corporations realize that "doing good" is also good business, this will help the economy as well.

The "Double Down!" greed mentality, always needing a quick fix doesn't solve much of anything, though. It's an addict's mentality. (And, we ARE a nation of addicts!)

The few friends I've told about how my 401k actually gained during the 3rd quarter were beyond shocked.

When I told them that my investment was 100% in the socially-conscious option and that it has steadily gained just a little...but very nearly always a little, including this last quarter, it gave them pause for thought.

May more of us pause for this thought!
Nate - Posted on November 11, 2008
Thank you Denny, your 'spot on' with the bailout. When will the legislation be repealed that legalized this betting on Wall Street? Why aren't the Democrats being blamed for going along with this program? And who repealed free market capitalism, where it is the survival of the fittest? I don't think any one needs a 'new' business model, they need to get off their __ butts and do some real old fashioned work!
Fred Groh - Posted on November 11, 2008
Kristen - Posted on November 11, 2008
Not only is cable news going to need a new business model, they're also going to have to find a new way to appeal to advertisers. With the election over, these networks are facing significantly smaller audiences, and an even bigger issue-- there are no more campaign ads, which generated record ad revenues for these networks. Watch a set of commercials now, and notice how many "filler" ads (promotions/plugs for shows the network itself owns) are displayed compared to commercial advertising for products etc. Without the giant media budgets of the presidential campaigns feeding the coffers, these networks are taking a hard hit--one that only gets harder as the returns on internet advertising prove to be far more trackable, the data far easier to come by, and the costs per contact much lower.