Volume 8 —
In this Issue: Best Practices — Outsourcing
— Management Moves —
K. Michael McKenney,
Manager of Rockwell Automation’s RA Studios/Avid Communications
business unit in Eastlake, Ohio (and a
CMMA member) is one of the commentators for a
Case Study which appears in the April 2002 issue of the Harvard
Business Review. This case study deals with the problems
involved in converting an in house marketing services department
to a profit center. Michael’s team successfully did just that at
Rockwell. Their organization now has a staff of 45 operating at
four sites in two states. This case study is a "must read" for
any media manager considering such a move.
Mark Shelton of Roadway
Express, Akron, Ohio told us he uses an investment life
cycle tool available from our affiliate Imaging Futures, to
measure the return on the company’s investment in marketing
communications media. We’ll be looking for more information on
that definite best practice a bit later on.
Procter & Gamble has reduced
their in-house media services staff to 16 as they move to an
outsource model for many technical and professional services.
P&G’s operation was profiled in our 1996 study of outsourcing as
a model of how to move specific capabilities from an outsource
to an insource status.
The American Red Cross has
closed down their 27-year-old video production facility in Falls
Church, Va. The staff was reduced from nine to one, leaving
Craig Reintertson, long-time manager and executive producer, to
buy services in the Washington, DC metro market from his new
downtown location in "cubicle city." The issue of relocating the
studio to a new headquarters building or moving to a full
outsource model had been under consideration since January,
2001. This facility typically produced some 200 projects a year,
including satellite broadcasts. Their work in connection with
the 9/11 tragedy was reported in the trade press.
Northwestern Memorial Hospital,
Chicago, has been gradually trimming their media services
organization for well over two years. The staff of 10 was down
to 4 by last January, all of whom were then converted from
employee to contractor status. This summer the final step will
be to outsource the function to MOVCO Media Productions, Inc.
MOVCO will rent 660 square feet (down from 3,400) in the main
hospital building. A total of 5 staff will handle all medical
illustration, electronic imaging, digital photo production,
digital presentation production (posters, signs and slides) and
customer service. MOVCO was formed out of the former Chicago
Rehabilitation Institute in-house media services group.
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formerly manager of Video Communications at SNET in New Haven,
Connecticut is now Manager, Corporate Media Center at Norfolk
Southern in McDonough, Georgia. Kim replaces Maynard
L. Knestrick who received a "golden" early retirement
opportunity in 2001. Kim's position at SBC was eliminated when
the SNET operation was downsized after the company was bought
out by SBC in 1999. Maynard launched Business Communication
Solutions and has been providing consulative services to
several clients. Maynard can be reached at 770-477-5636 or
770-853-5636 or email at
left the position of Manager of The Home Depot’s extensive video
production operation to become Assistant Vice President of Video
and Technical Services at USAA, San Antonio, Texas. We feel both
departments are truly world class. Shortly
afterwards, Rob Hallam, Director of Internal
Communications at The Home Depot moved to Washington Mutual
Insurance in Seattle. Rob built The Home Depot satellite network
(HDTV) and moved on to head up all of internal communications.
At the time he left Home Depot was developing an integrated
communications strategy designed to deliver consistent messages
to all internal and external stakeholders.
We recently learned that
Cameron Sanders, formerly Assistant VP at A.G. Edwards in
St. Louis has left the company to form his own production and
consulting firm. Cameron, who is also President-Elect of MCA-I is currently working on a book,
Creating Digital Media, due to be published by McGraw Hill
in the fall.
Marilyn Reed took the Merrill Lynch buyout
this past December. We’re not sure just yet what the status will
be of that venerable network. Marilyn is looking at independent
Clif Brewer is leaving his
position as Associate Director, Video/Creative Services at
Bristol-Myers Squibb to become director of multmedia services at
Campbell Soup Company. We wish Clif a lot of luck in his new and
challenging assignment. So far no word on whether Bristol-Myers
Squibb's financial problems have had any impact on media
services, but it certainly would not be unexpected.
Brad Lund has joined the
staff of the Unisys Corporation to manage their BTV network and
video production facility in Blue Bell, PA. Brad had been
responsible for building the Square D network and then moved over
to the production side of the business before landing the
position at Unisys.
We regret to report that the
positions of Gene Kutina, Director of Communications
Media at CIGNA in Philadelphia, and his associate John
Dombrowski were eliminated as of late August. In recent
years the function had been scaled back as the insuror
re-organized its business lines. Here are two more high quality
media managers available to help add value to other corporate
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►New Corporate television studios are
still being built, though the function now is directed more
toward video streaming than conventional videotape production.
Cisco Systems opened a four studio complex in Santa
Clara, California this past January, which now reportedly does
about 30 live video Webcasts plus another 400 video-on-demand
projects a month. In Madison, Wisconsin, American Family
Insurance is installing a second digital studio, which will
join their primary facility in producing Webcasts aimed at their
diverse sales force spread over a 17-state area. In both cases
these studios have been justified based on increased demand and
the comparative cost and inconvenience of using outside
facilities. Sounds like a familiar story to those who build the
first round of corporate studios back in the 1970s.
►According to the June 26 issue of
TV Technology, NFL Films has just completed their new
200,000 square foot facility which includes film and television
production and post production. This is to accomodate a huge and
growing volume of material being received, edited, retransmitted
and archived. NFL Films operates in every conceivable medium
including Webcasting and DVD. NFL rents out their current
facilities and VYVX connectivity to corporate clients on an
occasional use basis.
►SPL Integrated Solutions
recently bought the V-Tel videoconferencing integration business from Pierce Phelps’ of Philadelphia one of the largest
media systems integrators in the country.
Kenilworth, NJ has bought Digistar Networks,
Pittsburgh-based satellite television services provider and
integrator. That is definitely a move in a different direction
for Diversified, primarily a media systems integrator. However,
John Melillo, who formerly headed up Business Television
operations at General Public Utilities (GPU), heads the
Diversified Consulting and Management practice.
AT&T had sold its Basking Ridge, NJ corporate headquarters
to pharmaceutical company Pharmacia. However, since
Pfizer has now bought Pharmacia the word is they will be
trying to resell the AT&T building. Most if not all Pharmacia
management functions will be relocated to New York. Pfizer, like
Pharmacia, relies heavily on outsourced media services with no
apparent centralized management of the function.
AT&T Learning Center located on the property
will be converted into a public facility to be called "The Inn
at North Maple." It will continue under the management of
Benchmark Hospitality. We have no information as to what
resources AT&T will retain in house and what will be outsourced
when they relocate their staff later this year.
Copyright © 2002, Media Strategies, Inc. All rights reserved.