How much money does it make?

I’m still surprised by the number of people who don’t really understand profit.

How much money does it make? £10,000. Really?

When you are told something makes a certain amount of money, question it. Something that ‘makes’ £10,000 according to one person may well be losing £10,000 according to another.

People will often quote you the Gross Revenue – this isn’t even a gross profit figure, it’s just the total amount of revenue made by something.

All you should ask to know is the Net Income – this is the gross profit minus all the expenses and taxes incurred to generate the revenue.

I am not an accountant but as far as I am aware the only reason gross figures are generated are to deduct costs from. Gross numbers are not the result of an equation they are part of an equation, which results in a net figure.

Always ask if the number you are given is net income, it’s the only number that really matters.

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The importance of failure

None of us want to fail or find it particularly enjoyable when we do, but we need to be ready for failure because it will happen, and if you’re working hard it will happen a lot.

The overwhelming desire to avoid failure actually makes success more difficult.

I’ve just watched Art & Copy and saw this ad for Nike featuring Michael Jordan. It perfectly sums up the reason why failure is so important.

“I’ve missed more than 9000 shots in my career.  I’ve lost almost 300 games.  26 times I’ve been trusted to take the game winning shot…and missed.  I’ve failed over and over and over again in my life.  And that is why I succeed.”

Brilliant isn’t it!

Don’t be scared of making mistakes, learn from them.

Don’t fear failure, everybody finds it on the path to success.

Working in the media industry until we’re 70

There was an interesting debate on Newsnight last night about the reality of retirement for future generations, the debate broadly concluded that we will all need to work until we’re 70 years old, which left me wondering what I and everybody I know in the media industry will do until we’re 70, and also how we will afford to support ourselves when we do eventually retire.

This all basically means state pensions won’t start paying out until we’re 70. The full basic state pension for a single person is £97.65 a week at the moment, which is around £5000 a year. There is no way we will be able to get the equivalent after inflation in 40 years time because there will be so many more people alive to pay state pensions to, I’m not sure if we’ll even get anything.

It will be impossible to enjoy anything approaching a ‘fairytale’ retirement on that sort of money so our retirement will have to be supplemented by a seriously big private pension pot if we want to get anywhere near to retiring and spending 15 years living out the rest of our lives on anything approaching a comfortable income.

The requirement put on the current generation to build this pension pot comes at a time when property prices are incredibly high, mortgages are hard to find and millions of young people are struggling with crippling student and credit card debt.

It is with this financial burden that many people start work in the media industry, which has shed thousands of jobs over the past couple of years, but still attracts high numbers of graduates. Graduates who are greeted by stacked career ladders with fewer openings on the first step than ever before and people theoretically staying standing on their existing steps for longer than ever.

Many people will simply have to migrate to other industries where there is growth (not sure where that is) but there will still be a lot of people growing old in the media industry while still ever more are looking to enter it. With the clamp down on public spending comes decreased consumer confidence and lower investment in the private sector, which is all bad news for the media industry as a whole, as a result I can’t really see where new jobs are going to come from, that’s a issue that can only be answered over time.

What I think is clear though is that people will have to become increasingly entrepreneurial and adaptable, as a result being able to operate in the multiple job functions. This is something all modernised workplaces will require.

It’s also clear that from day one in the media industry (any industry really) you have to be thinking carefully about your retirement plans.

The importance of good management

Reading through a couple of articles by Ruth Spellman, Chief Executive of the Chartered Management Institute, a few issues she raises rang alarm bells, and I imagine they will do for hundreds of people across the UK’s publishing industry.

In an article about management style Ruth wrote.

“If we are serious about pushing the UK towards economic recovery, businesses need to be innovative, accessible and empowering. It’s what employees need and want.”
Ruth Spellman, 2010

I couldn’t agree more, Ruth.

Detailing the plight of the managers Ruth goes on in another recent article to detail the following.

“Yes, managers are currently under a great deal of pressure to restore their organisations back to pre-recession health, but there are no excuses for pushing employees so hard that the health of the individual is sacrificed for the health of the business. Work should be a place where people are built up, not broken down.”
Ruth Spellman, 2010

Read the last sentence again, it’s remarkable but it really shouldn’t be, it should be standard practice; we should take it for granted this will happen.

“Work should be a place where people are built up, not broken down.”

Imagine working in a business where the driving force was to build up employees, make them better, bring them a wealth of experience and look after them. That would be good for employees and for the business, especially in these hard times.

The requirement for good management steps up a level and becomes a lot more serious when you look at the implications bad management can have on the health of employees and what that means for the business.

“If employers need a financial incentive to develop smarter processes to avoid putting pressure on their workforces to deliver more for less, they should bear in mind that presenteeism — underperforming at work due to ill-health or stress — costs the economy £15bn each year, almost double the cost of absenteeism. This fact alone should encourage employers to do more to manage increased workloads, keeping morale and staff productivity levels up.”
Ruth Spellman, 2010

Management is a two-way thing. Most managers don’t get this, they don’t realise they are managing humans, they think they are just managing a spreadsheet. Most managers don’t innovate, and they aren’t accessible or empowering because they don’t understand the employer/employee equation involves delicate unpredictable human emotions not raw data, which can be manipulated at the click of a button to tell them what they want.

And why does this happen? Because only one in five managers have any type of professional management qualification. A lack of qualified managers has bred a class of authoritarian, bureaucratic and secretive managers obsessed only with the maintenance of their own seniority. This doesn’t work, it isn’t productive, and it ultimately leads to failure for all involved.

All employers have a duty of care to employees and are legally required to assess the risk of work-related stress, it is a duty of care the UK publishing industry does not take seriously, this needs to change if the task managers have of “restoring their organisations back to pre-recession health” is to be achieved.

In an industry that has taken big hits and suffered harshly at the hands of the recession we need innovative, accessible, honest and open managers who can create an environment where the people left after the streamlining process of the last two years can be built up and bring the UK’s publishing industry a new lease of life.

The importance of clarity

You wouldn’t expect a broken lens to take a perfect picture, it will take one, but it will come out looking like half the image it could have been, even if the person processing the image isn’t making a mistake.

A lack of clarity is a very real and present danger in publishing, without leaders and working environments that provide clarity products fail their audiences, and businesses fail their employees; breaking the duty of care that is legally afforded to them, which results in stress and anxiety in the workplace. This is not acceptable in any circumstances.

Without a working environment that aspires to deliver its product or service with clarity of thought and vision at all levels, the only result can be a failure to meet the product’s maximum potential.

Clarity must come in 4 areas to avoid failure:

  1. Clarity of communication:
    Communication chains must be clear and open. Nobody must be hidden and nothing covert.
  2. Clarity of strategy:
    A strategy needs to be unambiguous, focused and forthright.
  3. Clarity of planning:
    Planning must seek to deliver on the answers the strategy is finding for the business.
  4. Clarity of execution:
    Plans must reach those who execute them in a clear framework so all objectives are met.

A lack of clarity in any of these areas will play havoc when trying to deliver a media product. Decisions will be hard to make, then misunderstood and not executed correctly.

It is not a clear management strategy to keep people in the dark, avoid talking to them and conduct one’s self in a manner other than that which leads to amicable understanding.

Media products are complicated, they require editorial, commercial and technical input. Due to this complex nature the need for clarity in operational procedures is vital to assure products meet their full and unadulterated potential.

Let me be clear:

A lack of clarity is a fatal black hole, which will swallow up everything in its path and end in disaster for publisher and audience.