From Left: Luis Ubiñas, Principal and Fredrik Gren, Senior Engagement Manger McKinsey & Co.

Newspapers have enjoyed five years of strong economic growth but must now prepare for more difficult times, says Mr Gren, who presented a management agenda formulated by McKinsey & Company to meet the new challenge.

The traditional management approach – to focus on a few key issues at a time (costs in bad times, revenues in good) – isn't the best approach in this environment, he said.

"We believe that for long-term success, you need to strike a balance among several efforts happening in parallel," he said. "Cutting costs is not enough to succeed.

Doing more includes becoming better across all your operations. It also includes focusing on the things you're really good at while finding cost-effective ways of managing the other activities – through alliances with other newspapers or other companies, or through outsourcing. And it includes exploring long-term growth initiatives based on your core assets and skills."

Using case studies from companies such as the Financial Times, Aftenposten in Norway and the German media house Darmstäder Echo, Mr Gren provided examples of ways to optimise operations, 'focus and trim' functions and activities, and to ensure future earnings growth by establishing new initiatives.

"A combination of initiatives in each of these areas – executed in parallel – will help you secure leadership and grow at an attractive pace," said Mr Gren.

Optimising operations means enhancing circulation and advertising revenues, controlling costs and controlling capital expenditure.

By focusing and trimming activities, newspapers can strengthen their financial position and free up talent and management attention for other activities.

Identifying new growth initiatives can turn some in-house functions from a cost centre to a profitable business, he said.

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