to Diminish a Communication Problem
By:
Armando Rosales
Thania Ruiz
Angelina Saenz
Sarah Woods
Case Analysis Report
November 14, 2008
The University of Texas at El Paso
ENGL 3355: Workplace Writing
Fall 2008, Business Team #7
During the past 29 years, the Entertainment Sports Programming Network, known today as ESPN has continued to revolutionize our sporting experience. Though many critics say it has separated itself from its original intent, ESPN has become a necessity for sport fans across the globe. Its name is attached to approximately 25 networks, various internet sites, a magazine, a restaurant chain and most importantly, international editions of its products. “Clearly, global domination is our game plan,” ESPN anchor Trey Wingo said (Maese 1). ESPN's worldwide marketing efforts are best represented through their multimedia assets and programming capabilities. Allocated across 11 regions they are able to provide relevant content to all sport fanatics. However, with the rise of technological advances much like the upcoming digitalizing of the analog television, ESPN could indeed experience communication problems. Recently, ESPN has felt the pressure to invest in innovative content delivery mechanisms across all of its brands. The sporting television network also has the responsibility to invest in new technological devices in order to improve and keep up with the way it presents news and information to viewers.
One of the most important things about this corporation is its ability to adapt to new surroundings, however, ESPN could be faced with one their biggest challenges thus far. According to columnist Thomas Wailgum, Chuck Pagano, ESPN’s new head of technology, is currently facing one of the largest communication problems in the history of ESPN. He writes, “Pagano, a onetime ESPN technical director who is now executive vice president of technology will need to draw upon the goodwill and leadership skills accumulated during his nearly three decades of employment with ESPN” (Wailgum 1). Essentially, the problem which Pagano faces is the fact that television is evolving, with the introduction of digital broadcasting, television networks and stations struggle to provide quality journalism to its viewers. In order to do this, Pagano must focus on both the internal and the external components of the company. Recognizing that meeting the demand of their viewing audience is not an easy task, ESPN has formed new media departments and has proposed that each of those departments must revitalize the way in which sport fans receive reference material and entertainment offerings from around the world.
According to the Encyclopedia Britannica, ESPN originated from humble beginnings but quickly developed into a worldwide sports station (ESPN, Inc.). It was first founded by New England sports announcer William Rasmussen who wanted to broadcast New England Whalers hockey games and The University of Connecticut sports events. However, it was purchased by the Getty Oil Company before it launched the nightly SportsCenter newscast on September 7, 1979 (ESPN, Inc.). As cable TV’s popularity grew during the 1980s, so did ESPN. It signed licensing deals with the National Football League, Major League Baseball and the NCAA, among others. The company became so attractive, that television network ABC bought it for a reported $227 million (Wailgum 2). In 1996, the Walt Disney Co. purchased ABC (now called Capital Cities/ABC) and all of its properties, including ESPN, for $19 billion. One reason, many speculate, why the sports network has been so successful is because the Walt Disney Co. has never interfered or wanted to change the way in which ESPN allows its consumers to control how, when and where they consume content. The brand is a force: Its stable of products reached nearly 68 percent of Americans in the fourth quarter of 2005 (Wailgum 2). It has been reported that on average, U.S. male sports fans spend two hours a day with ESPN. Rick Maese mentions in his article that the network's own numbers estimate that each week, 94 million people come in contact with the ESPN brand (1). Seventy percent of the viewers are male and among men, the brand is more recognizable than McDonald's and Coca-Cola, according to a survey by Knowledge Networks/Statistical Research Inc. (Maese 1).
Implementing change within an organization that is global is not an easy function. Trying to get everyone to understand the importance of the challenges that are being faced becomes a proposition that is hard to sell within an organization that has operated under the same mentality for years. As far as internal changes go, Pagano states, “Creating a team where one hasn’t existed won’t be easy. ‘We all have our little domains of business expertise. You start to get tunnel vision, and that’s what was happening, Pagano says. I’m pushing everyone toward the same strategic mission,’” (Wailgum 1). This suggests that the internal issues Pagano faces consist of creating a focused communication network between all of the departments he manages. The report will also focus on providing additional ideas towards solutions, which will be discussed in depth at a later point However, it is important that internal issues be resolved and refocused before ESPN can begin to concentrate on the external issues that lie ahead.
In reference to external issues Wailgum writes, “ESPN and other broadcast/media companies face increasing market pressure to develop new business models that embrace the emerging digital technologies craved by consumers (1). At the same time, companies must also figure out how to control and manage their content in an online world that scoffs at intellectual property rights,” (Wailgum 1). The issue here is two-fold, giving consumers what they want and making sure that ESPN still maintains their rights. This problem is largely external because it addresses the consumers actions towards the development of innovative solutions. Although there have been some risks associated with the acquisition of high definition networks, ESPN understands that the benefits outweigh the risks of such actions. Wailgum writes the following about this innovation: “Back in 2001, Pagano made a bet that the emerging of the 720 progressive standard for high-definition would still be relevant by the time the digital center at ESPN would be completed. ‘We selected a standard for which there was absolutely no equipment available,’ Pagano says of the digital center. ‘That was a total risk.’ The 720 standard (as well as the 1080i) did become one of the two main standards for high-definition television (HDTV), and to some degree, analysts say, ESPN’s embrace of HDTV has helped spur its growth” (Wailgum 5). It is risks like these that the sporting network must be willing to take in order to effectively communicate with their audience.
Trying to overcome a communication problem, in which, the primary focus is to provide accurate and on time information to its viewers can be difficult and challenging. Although ESPN is a company who is known to be innovative and extremely risk taking, it must first focus on changing the way communication errors are handled within the company. Pagano and many others at ESPN are working together to change and avoid any current or upcoming issues that may arise. However, some of the steps that have been taken to solve these issues are simple while others require more detail and intricate planning.
Mr. Pagano, vice-president of the technology department at ESPN, was concerned with coming up with a strategy to eliminate its communication problem. The priority was always to put television operations first and introduce itself with a whole new technology, such as providing sporting news to fans through the use of mobile phones. Pagano’s strategy depends on his ability to ensure that new and improved technology is effective and that his business associates are able to drive products to consumers. One of the ways Pagano does that is by holding three-hour meetings every other Monday with his department heads (Wailgum 4). There he shares business strategies, encourages brainstorming and challenges the team to address cross-departmental problems. "We’ve never had a single governance [before]," says Paul Cushing, who was named senior vice president of IT during the restructuring and reports to Pagano. Now, "we look at technology overall. What our priorities are for the company are all in one bucket. In the past, it was all dealt with individually" (Wailgum 4). Pagano is also a devout follower of "managing by walking around." E-mails and formal meetings aren’t his preferred ways of interacting. "I get crazy with e-mail. I fundamentally hate it," he says. So he sets time aside at least three days a week to visit with staff, asking questions and delving into what they are thinking and talking about. "That’s the only way I learn," he says (Wailgum 4).
Another way in which ESPN has been eliminating technological and communication problems within the company is the use of Digital Rights Management (DRM). DRM consists of “technology tools that define distribution and control consumer access to digital content, such as video clips, music and movies. ESPN’s strategy is quite obvious, they don’t believe that everything on the internet wants or needs to be free. For example, ESPN’s website currently has a section where sporting fans are able to pay for premium material which can not be found anywhere else on the internet. Pagano also loves to speculate with his staff about the future and what ESPN will look like in two, five and 10 years (Wailgum 4). "We don’t do strategic planning; we do more scenario planning," he says. "What is going to be the next component of TV? There’s such a long lead effort, and all sorts of things can happen in the meantime” (Wailgum 4).
In conclusion, ESPN has come up with an innovative idea which has captured the pulse of sports fans through the use of a syndicated continuous tracking survey called the ESPN Sports Poll that is available to fans 360 days a year. Adults and teenagers are not only able to participate and take on-site event surveys but are also able to provide feedback on interests and activities that are closely related to the sports seasons through its internet site. In fact, since 1994, the ESPN Sports Poll has become the “industry standard” for monitoring the overall “health” of sports (ESPN Sports Poll). This allows for comparison across sports over a calendar year. This continuous daily tracking is what sets the ESPN Sports Poll apart from point-in-time surveys that examine the industry periodically throughout the year (ESPN Sports Poll). However, one may ask how this all relates to the concept of communication problems within the company. The truth is sport fans do more than watch television; they attend, read, listen, talk and buy products to express their passion. Being a sports fan is more than a leisure activity. It is an emotional, sociological phenomenon that relies on accurate, up-to-date news and information about sports on a national, regional and local level. Therefore, ESPN must be willing to associate itself and evoke a positive and powerful imagery among the community. It must also understand that the strength of a sporting company not only relies on the advancement of new technology for its promotion but must focus its attention on conforming existing sports fans while attracting new ones from around the world.
Works Cited
ESPN, Inc. Encyclopedia Britannica. 2008. Encyclopedia Britannica Online. 31 Oct. 2008.
ESPN Sports Poll. Capturing the Pulse of Sports Fans Nationwide. 2001-2008. TNS and ESPN Internet Ventures. 12 Nov. 2008.
Maese, Rick. A special ESPN birthday 25 years later. The Orlando Sentinel. 10 Aug. 2004. Knight-Ridder/Tribune News Service. 12 Nov. 2008. 1-3
Wailgum, Thomas. ESPN's IT Head Depends on Communication, Collaboration. 01 May 2006. CIO Executive Council. 31 Oct. 2008. 1-7
<http://www.cio.com/article/2053/>
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