Fresh start for Norway's largest magazine publisher
Over the past year change has been the order of the day at Hjemmet Mortensen. Its strategy has been reassessed, one in four employees has left the company, and those remaining have assumed new roles and acquired new competencies. The focus has been on creating profitability in a digital future.
It sounds almost impossible: reduce costs by a 3 digit figure, dismiss more than a quarter of the workforce, adapt the organisation, introduce new work routines and plan strategies for a digital future. All this, while trying to win market shares during the worst financial downturn in decades.
Nonetheless, that was the briefing Hjemmet Mortensen received in 2009. And the management and staff of Norway’s largest magazine publishing corporation not only took the challenge – they also reached their goal.
"It has been an incredibly tough time for both management and staff. I’m really impressed and proud of the work that’s been poured into the process we’ve been through,” says Managing Director Anne Britt Berentsen.
We met her at Hjemmet Mortensen’s head office, a light, spacious office building in Nydalen, north of Oslo. Axel Walø, head of digital operations, is present as well. He also spearheaded the major remodelling of Hjemmet Mortensen into ‘New HM’ – a process that started back in 2008. “We had to reassess our strategy in the light of the market hifting from print to digital media. Income was going one way and costs the other. We had to make the switch from a leading magazine publisher to a modern media house that also runs profitable digital operations,” Anne Britt Berentsen explains.
“We had realised this early on, so by the time the financial crisis broke out, we were already in action, and the whole organisation understood the necessity of the process. It isn’t a cost-cutting project but a modernisation project to identify the best and most effective ways of working,” Anne Britt Berentsen continues.
New roles and competencies
The strategic restructuring, involving the entire organisation, will also cut costs. In 2009 Hjemmet Mortensen said goodbye to about 150 employees – 28% of the workforce – as part of the task of saving almost NOK 200 million. But originally the ‘New HM’ project had quite another project aim: to define the new organisation, its competencies, resources, needs and roles.
“We made a special point of involving all employees from the start. About 70 staff members took active part in the 15 working groups we set up, and we arranged briefings and informed via the intranet,” Axel Walø explains.
“It was incredibly important to engage the staff in open dialogue and get them involved. We had to make sure they knew we didn’t have a hidden agenda,” adds Anne Britt Berentsen.
"A strict time schedule was another vital element. We stuck to the schedule we’d announced, which is crucial in a process like this. In the course of a few months we had worked out how to deal with the task and organise ourselves, and only then, did we bring up the staffing issue. It was important to distinguish clearly between the two,” Axel Walø stresses.
Employees were involved in the next stage – a round of reshuffling and resignations – taking part in thorough discussions with shop stewards, and an open process about the new work functions, during which all employees had a chance to voice their interests and competencies in relation to the new roles.
Less control
The most demanding element was developing new roles and routines for the editorial departments of the roughly 40 different magazines and publications that Hjemmet Mortensen produces.
“The new editorial organisation relies heavily on template-managed production, where four roles and competencies have been merged into one editorial role, with as few control processes as possible. This means that we can produce magazines more efficiently, using fewer resources than in the past,” explains Axel Walø. Technological investments and major upgrading of competencies have made all this possible. Hjemmet Mortensen invested NOK 11 million in courses and training programmes in 2009.
“We had the skills in-house, but they were core competencies, so we needed to develop new roles that require each employee to master several functions. It is a long-term process, still in progress. Simultaneously, we need to make sure we continue to embrace the new ways of working, and don’t fall back into our old habits,” says Axel Walø.
A heavier task
The changes at Hjemmet Mortensen are physically reflected at the headquarter, where many employees now work in openplan, rather than in individual offices. “People work together across the organisation more than previously, work routines have improved, and a few products have been discontinued. Many employees probably also feel a heavier workload now, than they were used to,” Anne Britt Berentsen admits.
“So it’s important to keep focusing on improving work routines. We have always been open about the fact that the changes will give everybody a busier everyday, but also a more fun and interesting day, working for the new Hjemmet Mortensen,” says Anne Britt Berentsen.
Digital opportunities
She underlines that in 2009, the company not only reached the goals set for the comprehensive project, but simultaneously won market shares, bringing its slice of the Norwegian magazine market up to 54%. The major challenge for the years ahead will be to take advantage of Hjemmet Mortensen’s strong market position and content-related competencies on the digital platforms, whilst simultaneously generate profit.
“In the future we must play the same major role on the internet, as we do in the printed media today. We believe in a multimedia model, and have already achieved a lot in a relatively short time. For example the website klikk.no, where we have gathered the themes in one sole portal,” says Anne Britt Berentsen.
Nonetheless, that was the briefing Hjemmet Mortensen received in 2009. And the management and staff of Norway’s largest magazine publishing corporation not only took the challenge – they also reached their goal.
"It has been an incredibly tough time for both management and staff. I’m really impressed and proud of the work that’s been poured into the process we’ve been through,” says Managing Director Anne Britt Berentsen.
We met her at Hjemmet Mortensen’s head office, a light, spacious office building in Nydalen, north of Oslo. Axel Walø, head of digital operations, is present as well. He also spearheaded the major remodelling of Hjemmet Mortensen into ‘New HM’ – a process that started back in 2008. “We had to reassess our strategy in the light of the market hifting from print to digital media. Income was going one way and costs the other. We had to make the switch from a leading magazine publisher to a modern media house that also runs profitable digital operations,” Anne Britt Berentsen explains.
“We had realised this early on, so by the time the financial crisis broke out, we were already in action, and the whole organisation understood the necessity of the process. It isn’t a cost-cutting project but a modernisation project to identify the best and most effective ways of working,” Anne Britt Berentsen continues.
New roles and competencies
The strategic restructuring, involving the entire organisation, will also cut costs. In 2009 Hjemmet Mortensen said goodbye to about 150 employees – 28% of the workforce – as part of the task of saving almost NOK 200 million. But originally the ‘New HM’ project had quite another project aim: to define the new organisation, its competencies, resources, needs and roles.
“We made a special point of involving all employees from the start. About 70 staff members took active part in the 15 working groups we set up, and we arranged briefings and informed via the intranet,” Axel Walø explains.
“It was incredibly important to engage the staff in open dialogue and get them involved. We had to make sure they knew we didn’t have a hidden agenda,” adds Anne Britt Berentsen.
"A strict time schedule was another vital element. We stuck to the schedule we’d announced, which is crucial in a process like this. In the course of a few months we had worked out how to deal with the task and organise ourselves, and only then, did we bring up the staffing issue. It was important to distinguish clearly between the two,” Axel Walø stresses.
Employees were involved in the next stage – a round of reshuffling and resignations – taking part in thorough discussions with shop stewards, and an open process about the new work functions, during which all employees had a chance to voice their interests and competencies in relation to the new roles.
Less control
The most demanding element was developing new roles and routines for the editorial departments of the roughly 40 different magazines and publications that Hjemmet Mortensen produces.
“The new editorial organisation relies heavily on template-managed production, where four roles and competencies have been merged into one editorial role, with as few control processes as possible. This means that we can produce magazines more efficiently, using fewer resources than in the past,” explains Axel Walø. Technological investments and major upgrading of competencies have made all this possible. Hjemmet Mortensen invested NOK 11 million in courses and training programmes in 2009.
“We had the skills in-house, but they were core competencies, so we needed to develop new roles that require each employee to master several functions. It is a long-term process, still in progress. Simultaneously, we need to make sure we continue to embrace the new ways of working, and don’t fall back into our old habits,” says Axel Walø.
A heavier task
The changes at Hjemmet Mortensen are physically reflected at the headquarter, where many employees now work in openplan, rather than in individual offices. “People work together across the organisation more than previously, work routines have improved, and a few products have been discontinued. Many employees probably also feel a heavier workload now, than they were used to,” Anne Britt Berentsen admits.
“So it’s important to keep focusing on improving work routines. We have always been open about the fact that the changes will give everybody a busier everyday, but also a more fun and interesting day, working for the new Hjemmet Mortensen,” says Anne Britt Berentsen.
Digital opportunities
She underlines that in 2009, the company not only reached the goals set for the comprehensive project, but simultaneously won market shares, bringing its slice of the Norwegian magazine market up to 54%. The major challenge for the years ahead will be to take advantage of Hjemmet Mortensen’s strong market position and content-related competencies on the digital platforms, whilst simultaneously generate profit.
“In the future we must play the same major role on the internet, as we do in the printed media today. We believe in a multimedia model, and have already achieved a lot in a relatively short time. For example the website klikk.no, where we have gathered the themes in one sole portal,” says Anne Britt Berentsen.
March 2010
