Text of CEO Craig Dubow's Sept. 11 memo

From: A message from Craig Dubow
Sent: Tuesday, September 11, 2007 12:38 PM
Subject: Dubow on USA TODAY and transformation

Dear co-workers:

This week is the 25th anniversary of USA TODAY. It began as a simple idea, became real on Sept. 15, 1982 and now is the most widely read newspaper in America.

Along the way, USA TODAY upended the media industry. It helped make journalism less self-conscious and more customer centric. It sped the transition to color and tighter writing. It brought television and newspapers closer together, in time to welcome the Internet. It was innovation at its best.

USA TODAY was a remarkable achievement ¬ and I wish to extend my most enthusiastic congratulations to everyone involved.

But the success of USA TODAY also is an important lesson for everyone at Gannett today. It is a lesson we all must learn as we go through our current transformation.

USA TODAY did not happen easily or without pain. It was not conceived, launched and accepted by customers in a fluid, easy progression. No one involved at the beginning knew for sure what it would be in the end. In fact, USA TODAY is still changing and, hopefully, always will.

That is what innovation and transformation are all about: vision, hope, execution, pain, confusion, fear, failure, revision, excitement and then - only then - success.

USA TODAY began as an audacious and innovative idea: a national, general interest newspaper printed in color at multiple locations around the country after completed pages were scanned and transmitted by satellite. In its time - before the Internet - this process was one tiny step removed from science fiction.

Further, its content was short, easy to read and very customer friendly: Inconceivable in the journalism world of 1982. Disruptive and disturbing to an industry then, as now, set in its ways.

Then began the execution of this vision: multiple prototypes; failed attempts; trial-and error; hard work and long days. Many paths were followed, with much doubling back. Revisions were made before, during and after the official launch on Sept. 15, 1982.

People were borrowed, hired, brought on, sent away or departed full of doubt at the possibility of success. Many, many people - up and down the organization - bet their futures on this risky vision and held their breath.

And it worked. It was a crucible, as all transformations are. Gannett and its people came out the other side a better, more successful company with a wildly popular product that is a tip-of-the tongue brand around the world - and it is only 25 years old.

Right now, Gannett is again in the middle of a transformation. We have a very powerful vision of where we need to be and now are on the winding, torturous paths of executing that vision. We all are feeling the pain and doubt and, I hope, some of the excitement.

It is not a "step-one, step-two, step-three and we're there" process. It is not a simple transition. This is a full-fledged, hold-onto-your hats TRANSFORMATION.

We began with the vision in our strategic plan of a company that is innovative, customer-centric and nimble. We determined we would be a news and information company that was truly platform agnostic and retained our First Amendment values. We set out a series of steps and initiatives to reach those goals - a design and innovation process, the Information Center, Gannett Digital and a leadership and diversity plan. Then we rolled up our sleeves and got down to work.

Some changes happened easily, others took a great deal of effort but were accomplished with great excitement and inspiration, such as the Newspaper Division's roll out of the Information Center or some of the Leadership and Diversity programs. But then some steps proved elusive and much more difficult than anyone expected: removing the silos and coordinating across divisions; matching expenses and revenues; making acquisitions in a new competitive space amid dramatic changes in our industry. And all of this amid some cyclical economic changes.

And here we are. This is the hard part. This is where transformation gets really difficult. I want to begin talking with you more about this process and what it means. I can't take away all the pain and doubt, but I can help lead you through it.

What will we look like in the end? Hopefully what I've been talking about all along: a company that is customer-centric; innovative; leaner and more nimble, and without silos. We will be full of exciting, new, people-pleasing products in the digital space as well as in print and broadcast.
Will we be structured like we are now? I doubt it.

Will we have more or fewer newspapers and TV stations than we have now? That depends, but we're working on finding the right portfolio.
Will we be a major player in the digital space? Absolutely, but what that looks like is a work in progress.

The transformation process will help resolve these questions over time, after much innovation, trial and error, revision and strong execution.
Which is why I want to talk about innovation at Gannett. It is an important initiative in our strategic plan that already has experienced the pains of the transformation process.

Much like the way USA TODAY was developed, we have learned a lot, achieved some early gains and now need to intensify and quicken our efforts. With the appointment of Michael Maness as our new vice president of Innovation and Design, our innovation approach is being further refined and revitalized.

If you click here [an internal website], you will be able to see a video discussion by Michael of our concept of innovation. You also will be able to look at our plans in more detail, see his first blog and hear about some of our ongoing projects, including an upgraded and more dynamic DIG.

I am very encouraged and optimistic about this next phase. While Gannett has challenges, our company still is very solid. We have strong cash flow and a lot of financial firepower to make this transformation work. What's more, we have projects in the works and are learning new ways to succeed everyday. Plus, in the next few weeks, we will announce some exciting new investments in the digital space that grew out of our early innovation efforts.

So please don't lose heart or patience. Together I know we can make this transformation a success. And always know how deeply I appreciate what you've already done.

Thank you.

Craig