Strat KAIZEN™ in a Digital Communication Company

Case Study

Strat KAIZEN™ in a Digital Communication Company

Goals: reverse the decline in revenue and profitability by implementing a customer-centric digital strategy

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Even established news organizations must reinvent themselves to remain relevant in today’s fast-paced and ever-evolving media landscape. This case study explores how a leading Portuguese newspaper successfully transformed its business model to regain profitability through a customer-centric strategy and digital agility.

A legacy of journalism and the need for transformation

Founded in the 90s, the organization is one of the most prominent daily newspapers, recognized as a leading source of general information. Over the years, it has continually adapted to the evolving media landscape, launching an autonomous news service in 1999 and pioneering the publication of its print edition in HTML by 2001.

Despite its legacy and commitment to innovation, the organization faced a period of significant financial and operational challenges. The emergence of digital media, shifting reader behaviors and internal silos created a critical need for transformation.

Declining revenue and organizational rigidity

The organization found itself in a downward spiral characterized by financial and cultural difficulties:

  • Negative EBITDA and declining turnover threatened the business model’s sustainability.
  • Hierarchical and siloed structure, not promoting communication and customer focus.

A breakthrough transformation was imperative to ensure its survival and lay the foundation for future growth.

Trend of revenue losses

Strategic realignment and agile transformation

To address the challenges, a Strat to Action plan was launched to revitalize the business and reconnect with the audience:

Customer-centric program and pain point elimination

A customer-centricity program based on segmentation and service improvement was designed and deployed. The initiative aimed at eliminating “pain points” to increase turnover and profitability.

Agile operating model and digital culture

The organization underwent a significant cultural transformation, embedding agile principles and focusing on creating a digital culture. This cultural shift laid the groundwork for this culture.

Breakthrough content and commercial strategy

A bold and breakthrough reformulation of editorial content was implemented. In parallel, the commercial structure was redesigned to reflect a modern and consultative sales approach, replacing the traditional model with the Challenger Selling method.

Profit recovery and sustainable growth

The transformation yielded tangible and sustained results:

  • Positive EBITDA: Impact of breakthrough improvement initiatives on EBITDA, resulting in positive profitability.
  • Sustained increase in invoices: Revenue stabilized and began to grow, presenting a sustained increase.
  • Culture of continuous improvement: A new mindset reflected commitment, effective leadership, and robust management practices in the company
Sustained increase of turnover and economic recovery

This case study illustrates how a news organization, facing financial decline and internal rigidity, was able to regain profitability and operational stability by aligning its business model with customer needs, embracing agile principles, and fostering a culture of continuous improvement.

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