The Seventh International Critical Management Studies(CMS) Conference ORGANIZATIONAL CHANGE AND CRITICAL MANAGEMENT STUDIES TECHNOLOGICAL CHANGE

AND ALIGNMENT TO THE ENVIRONMENT: CHANGE MANAGEMENT ISSUES IN NEWSPAPER ORGANIZATIONS. Adriano Solidoro, Universit Milano Bicocca Gianluigi Viscusi, Universit Milano Bicocca
Abstract To date there are few studies in change and media management studies, which focus on newspapers in order to explore how newspaper companies organize their activities to manage the critical developments challenging their organizations through digitalization of news distribution. The exploration should provide a deeper understanding of (i) how the major national newspapers strategy is linked to organizational structure as well as information management configurations, and (ii) how they manage the integration between activities related to the print newspaper and at the same time opportunities enabled by ICTs, networks, social media and mobile technologies. Key words: organizational change, technology innovations, digital media, newspapers, adaptive cycle, integration, organizational conflicts, constraints to change.

Introduction Newspaper companies throughout the world have been launching Internet versions of their print publications since the mid-1990s. Early experiments were timid as online newspapers explored a variety of business and production models, as well as of management and staffing approaches without finding the definitive answer to their questions. About fifteen years later many newspaper companies still struggle with only partially answered questions. Newspaper organizations recognize the use of the Internet and of mobile technologies as an opportunity, but for many of them it is not quite as clear whether they want to take this opportunity and how to use it to develop new business areas. This is also due to the fact that only a few newspaper companies, and only just now, are beginning to report an increase in online profitability. Up until recent times sustainable growth have been scarce and in those cases newspaper sites augmented their revenue, increase often came in lieu of print revenue. Furthermore, average profit margins of online news sites are far from that of traditional media (Huang, 2007b). As a consequence, after fifteen years of the first appearance of online newspapers, there is still no successful business model for online news that organizations may emulate or adapt to their own situations. Most of the times there are mixed approaches. Newspaper sites throughout the world largely allow free access to content while charging for archives, or some special-interest premium content material (maybe with the only exception of The Wall Street Journal). There is, thus, no universal, one-size-fits all model, but, at the contrary, several trends and a multitudinous models combining different approaches, involving (at least for larger newspapers) partnering, identifying core competencies and branding, niche marketing and technology enhanced marketing. 1

Besides, the external environment mutation demands to the organization adaptation and alignment and for this influencing the organizations strategic behavior. The emergent digital technologies, as well as consume patterns of the early 21st century suggest new ways of thinking about news and audiences that cannot go unheard, not anymore. Social media are now key actors of the global network economy and information society and have implicit consequences for news companies trying to maintain competitiveness. At the same time readers are not a passive audience, and now demand more flexibility from content, as well as personalization. This conversational paradigm demands newspapers web sites (and newsrooms) with a mentality different from that of the print industry, and newspaper marketing departments have to become familiar with relevant technologies and develop consistent marketing strategies. Taking in account that no strategy carries no risk. Hence, the question that arises is: how do organizations adapt to the changes in their environment? How, as well as when? In fact, the element of timing is also relevant: when should a newspaper organization adopt a new model? Will a sustainable competitive advantage come from being a firstmover or a late-mover able to synthesize competitors experiences? In this context we focus on the following research questions: How is the adaption to convergence and information growth managed in newspaper companies undergoing reorganization to embrace technological innovation and alignment to the environment? How do organizations align adapted strategy to organizational structure, operations, and information management configurations? And in particular to current information technology infrastructure? How does the organization manage the integration between activities related to print and at the same time opportunities enabled by ICTs, networks, social media, mobile technologies, thus enhancing or limiting user innovation? Newsrooms' values, perceived realities and structure may conspire to jeopardize any move towards convergence by newspapers companies. The difficulty with this process, however, is that it takes time. Most media companies don't have time and should approach integration between newsrooms and business departments from both ends of the spectrum. How to best create new environments aimed at accepting change remains a question that newspaper organizations need to be answered quickly. Studies are rare in this context of technological change and alignment to the environment. Many newspaper managers approaching change try to surmount and outwit resistance to it, creating resistant employees who threaten the organization's performance. Therefore, the approach to change requires careful thought, since, otherwise, many newsroom's innovation efforts may get categorized simply as managerial control efforts, rather than exercises in interdependence. In this paper we discuss the case studies of two main Italian newspapers, mainly investigating the conflicts between managers and other stakeholders (i.e. journalists, unions etc.) involved in organizational change; the intercultural dialogue emerging between print and online newsrooms, and between newsrooms and business department, in organizational change, as well as isomorphism in newspaper companies organizational change projects. Applying Miles and Snows classic model for the analysis of the strategy, structure and processes of organizations of two Italian newspaper companies, La Repubblica and Corriere della Sera, we want to explore journalists and managers perceptions of the strategic role of their online newspaper.

Taking as assumption the internal organizational differentiation between departments in response to a complex and uncertain external environment, we investigate the different departments attitudes, goals, work orientation and internal structures amongst those somehow in relation to the activities of the online newsroom. We also investigate the level of integration, between different functions and sub-units, as well as the integration mechanisms that are used. This is because internal differentiation tends to lead to problems of internal coordination between departments. Consequently, integration mechanisms are key factors of internal alignment and of coordination between departments. Through our reasoning and the case studies of two Italian newspaper organizations, Corriere della Sera, and la Repubblica we argue that online activities can also lead to the emergence of common interests among different parts of the same organization; and suggest that these are tightly connected to changes in the overall organization. For example, if the marketing department is able to gather information about audience more efficiently than the print newsroom, it may influence on how content is proposed to readers helping the newsroom to adjust the product by creating new services in order to fulfill the readers unsatisfied needs. Nevertheless, newspaper organizations are, traditionally, outstanding examples of companies intrinsically facing organizational conflicts (Achtenhagen & Raviola, 2009) between editorial and management staff (Underwood, 1993), and the union of journalism and marketing has not been a harmonious marriage for many editors (and journalists), who see a stronger marketing orientation as a loss of editorial control and an affront to journalistic "professionalism." And more other conflicts may also emerge within the newsroom, amongst print newsroom and online newsroom. The aim of the research at two newspaper organizations is to develop a multiple case study (Yin, 2003) in order to understand how major national newspaper organizations manage the integration between activities related to the print newspaper and at the same time opportunities enabled by Information and Communication Technologies (ICTs) as well as by networks, Social Media and mobiles technology. Besides how the aim of the research is also to provide evidence of why the strategy is linked to organizational structure as well as information management configurations. Motivations and theoretical framework In this paper, we aim to explore how the adaptive cycle Miles and Snow (2003) can be managed in newspaper companies undergoing reorganization to embrace technological innovation and alignment to the environment. In order to analyze the complex and dynamic processes due to companies alignment to mutated external conditions, Miles and Snow (2003) offered a theoretical framework composed of a model of the adaptive process (called the adaptive cycle) and four empirically determined strategic typologies of moving through this process. According to Miles and Snow (2003), the complexity of the adaptation or alignment process can be penetrated by searching for patterns in the behavior of organizations. This in order to be able to describe and even predict the process of organizational adjustment, as an integrated and dynamic whole, a model that takes into account the interrelationships among strategy, structure, and process. Each of these four strategic typologies (or archetypes) proposed by Miles and Snow (2003) has its own strategy in responding to changes in the environment, and its typical configuration for technology, structure and process consistent with its strategy (i.e. chosen areas of future innovations, consistent rationalization of structure etc.). 3

Three stable strategic typologies are named Defender, Analyzer and Prospector. In these strategic typologies the organization is competitive over time if organized according to its strategic type. The fourth strategic typology is called Reactor. The Reactor organization represents an unstable situation, a form of strategic "failure" in which inconsistencies exist among its strategy, technology, structure, and process (Miles & Snow 2003, 29). Defenders are organizations which seldom apply primary attention to improving the efficiency of their existing operations. In the newspaper industry this is the case of organizations in which the focus is on publishing a newspaper. Top management in this type of organization is usually highly expert on precisely that, and does not tend to search outside its domain for new opportunities. The large investments that have been made to digitalize the production process appear mostly to be about producing the same thing in a more efficient way. Defenders also tend to ignore developments and trends outside of their domains, choosing instead to grow some limited product development (i.e. special business, hyper-specialist or hyper-local content). Top management, in the defender organization, is usually composed by production and cost-control specialists. Defenders usually do little or no investigation of the environment for new areas of opportunity, but, instead, intensive planning oriented toward cost and other efficiency issues. Stable industries lend themselves to this type of organization more than turbulent industries such as those of the media market, in which technology and audiences consume patterns, are in constant innovation. The Defender's main risk, thus, is that of ineffectiveness, such as being unable to align with changes in its market environment. Unlike the Defender, whose success comes mainly from efficiently responding to a stable domain, the Prospector organizations prime aptitude is that of finding and exploiting new product and market opportunities. Generally speaking, the Prospector adapts itself to the changes of the environment in a more dynamic way than those of other types of organizations within the same industry. Thus, these organizations often are the agents of change to which their competitors must respond. We can suppose The New York Times, in 1999, being a prospector organization, since this newspaper company, as early as that, had already separated its online activities into a separate company with the intention, amongst others, to take advantage of the high value estimate and collect external capital to finance further growth. Consequently, while others newspaper organizations were marked by processes of efficiency improvement, the spirit of The New York Times entrepreneurship was cultivated in the emergent new media sector (see Krumsvik, 2006). Based on Miles and Snows research, the Defender and the Prospector seem to reside at opposite ends of a continuum of adjustment and adaptive strategies. Between these two extremes, a third type of organization is called the Analyzer. The Analyzer is a unique combination of the Prospector and Defender types and represents a possible alternative to these other strategies. A true Analyzer is an organization that attempts to minimize risk while maximizing the opportunity for profit. The Analyzer main question is: how to locate and exploit new product and market opportunities while simultaneously maintaining the firm core of traditional products and customers? The Analyzer's answer is often that of moving toward product or market innovation through imitation and only after their success has been demonstrated by others (i.e. some Prospector competitor). Based on historical development and the typology designed by Miles and Snow, a hypothesis of Analyzer as the chosen main strategy in the today newspaper industry would seem to be a reasonable supposition, at least for largest newspapers (see Krumsvik, 2006). A fourth type of organization, the Reactor, exhibits a pattern of adaptation and alignment to its environment that is both inconsistent and unstable. Reactors are 4

organizations in which top managers frequently perceive change and uncertainty occurring in their organizational environments but are not able to respond effectively. This kind of organization seldom makes adjustments of any sort until forced to do so by environmental pressures. The Reactor's "adaptive cycle, thus, usually consists of responding inappropriately or too late to environmental change and uncertainty, performing poorly as a result, and then being reluctant to act proactively in the future. Many newspapers act, presumably still now as 15 or 10 years ago), in a way that may fall into the Reactors category. This happens, for examples, when top management is only partially at ease with online activities, and/or the balance between traditional and new activities in an Analyzer model has not been established in a efficient and effective way. Any of these four typologies is unlikely to cover every form of organizational behavior, being organizations realities far too variable and complex. The "pure" form of each of these organization types cannot therefore exist. Nevertheless, according to Miles and Snows research every organization, when compared to other organizations in its industry, appears to fit predominantly into one of the four categories, and its behavior is generally predictable given its typological classification. Hence, if one accepts the adaptive cycle as valid, the question becomes: how do organizations move through their alignment and fine-tuning process? Finding an answer to this last question is of course crucial for organizations undergoing change. When within the adaptive cycle the organization (i.e. its top management) is creating a structure that achieves a fit with the specific situation the organization is in (e.g., Mintzberg, 1979). Structural misalignment - As underlined by Lawrence and Lorsch (1986), more complex and uncertain is the external environment (such as todays newspaper industry) the greater, consequently, will be the internal differentiation between departments. This happens as departments develop their own attitudes, goals, work orientation and internal structures and processes to accommodate the requirements of their specialized subenvironments. Lawrence and Lorschs findings also suggested that this internal differentiation tended to lead to problems of internal coordination between departments and, consequently, to a greater need for internal integrating mechanisms. This is because organization sub-units (for examples the print newsroom and the online newsroom) and sub-organizations (for example, the marketing department) operate in different environments, mainly having information from their particular subenvironments, and this can lead to a state of conflict at the organizational level. Organizational conflicts can be linked, thus, to structural misalignment, as well as cultural. In an era in which many newspaper companies are already facing crises due to declining readership and advertisement revenues, these tensions need to be addressed by top management since an adjustment process may also lead to the emergence of common interests among different parts of the same organization. For example, if the marketing department is able to gather information about audience more efficiently than the print newsroom and therefore influence on how content is proposed to readers, marketing department may help the newsroom to adjust the product by creating new services in order to fulfill the readers unsatisfied needs. Furthermore, newspaper organizations are, traditionally, outstanding examples of companies intrinsically facing organizational conflicts (see Achtenhagen and Raviola 2009). These conflicts may even be intensified during change process and are due to many reasons. First of all, newspapers are not totally commercial entities, but must also act in accordance with public interest and cultural imperatives (see Kng, 2007, Caves, 2001), as well as forced to appeal to both audiences and advertisers (see Picard, 2005). As a result, one of the unique features of newspaper companies is their never-ending 5

competition between editorial and management staff (Underwood, 1993), between the newsrooms and the business departments. Other conflicts may also emerge within the newsroom, amongst print newsroom and online newsroom. Conflicts and misalignment issues may therefore be related to different perspectives on content orientation versus technology orientation or product defined by publisher versus entrepreneurial content developer, traditional human talent versus technological savvy talent, and managers as positional leaders versus managers as facilitators conflicts (see Achtenhagen and Raviola 2009). This duality adds to the complexity of managing change. The role of integration and integration mechanisms - The reorganization linked to the adaptive cycle that the organization is undergoing may even augment differentiation and thus complicate tensions at the process level due to new workflows. This creates uncertainty in the organization, since the organizational units are not independent in completing their tasks but are dependent on the actions and decisions made by other units. This is why, when the level of differentiation is high, more emphasis is needed on integration mechanisms (Lawrence & Lorsch, 1986) and on issues related to coordination and communication needs. We decided to use the term integration instead of the more fashionable convergence because the first is more focused and precisely defined in organizational literature. Lawrence & Lorsch (1986) define integration as the process of achieving effective unity of efforts as well as the level of cross-functional interaction, communication, information sharing, coordination, and level of joint involvement. Convergence, instead, describe a multiple variety of processes, trends and developments taking place in society in general and throughout the media in particular. In the field of journalism studies, convergence as a concept is primarily used to document the emergence of new newsrooms, the changes in work routines and organizational structures connected to these new production arrangements, the redevelopment of news formats across all media and the impact of these phenomena on journalistic work (cf. Deuze, 2004; Duhe et al., 2005; Singer, 2004; Klinenberg, 2005; Avils and Carvajal, 2008: Vobic, 2009). Convergence, therefore, being a multi-dimensional concept, is too loosely defined for the aim of our research. Methodology The chosen model of analysis is developed to understand companies within an industry, and we propose to use it in analysis of newspaper companies based in Italy (Corriere della Sera, La Repubblica) in order to understand how a major national newspaper organization manages the integration between activities related to the print newspaper and opportunities enabled by Information and Communication Technologies (ICTs) as well as by networks, Social Media and mobiles technology. The research employed a multicase design that supports a replication logic, whereby a set of cases is treated as a series of experiments, each serving to confirm or disconfirm a set of observations (Yin, 1994). Besides how the aim of the research is also to provide evidence of why the strategy is linked to organizational structure as well as information management configurations. The case study has been carried out following an interpretive research approach to field studies (Klein & Myers, 1999; Geoffrey Walsham, 1993; G. Walsham, 1995), i) aiming at understanding of how participants interpret their context and act on the basis of their interpretation of institutional constraints (Berger & Luckmann, 1991; Kallinikos, 2006), influencing also the researchers subjective construction of their interpretation of observations. The interpretive approach has been carried out as action research iterative 6

process involving researchers and practitioners acting together in a particular cycle of activities, including problem diagnoses, action intervention, and reflective learning (Baskerville & Wood-Harper, 1996; R L Baskerville & A T Wood-Harper, 1998; R. L. Baskerville & A. T. Wood-Harper, 1998; Checkland, 1991). In our case, action research is a useful approach to associate research with practice because of the insights and evaluation coming from the interaction with practitioners and domain experts. The primary units of analysis are two online ventures of two newspaper organizations (Table 1, below; describes the 2 companies and 2 newspapers studied) responding to digital media; the embedded units are the sponsoring newspapers and their corporate managements. First of all, we want to discover whether managers and journalists see use of the digital media technology mainly as an opportunity for their organization, and in there are online priorities in the companys strategy, structure and process, we therefore investigated if there is clear formulation of the strategy and which may be the necessary adjustment of structure and processes as well as mechanism of integration between different sub-units. We chose to examine the response of newspaper firms to digital publishing for two reasons. First, the effect of electronic publishing on the newspaper industry generally matched the research questions. Online publishing is a discontinuous change in that it presented external changes that require nonlinear internal adaptations. For example, the features of the Internet that online users valuesaccess to breaking news, searchable databases, social media features, videos and multimediadiffer considerably from the features that were available in print and demand different skills and competences, different information systems and tools, as well as workflow and organizational design The second reason for selecting the newspaper industry is that in newspaper in media organizations change are often the product of an alliance of different interest groups in media organization (Badham and Buchanan, 1999) and the models of change are politically engaged (Morgan and Spicer, 2009; Spicer, Alvesson and Karreman, 2009). Research Setting: the 2 newspaper organizations 1) Corriere della Sera Published in Milan, Corriere della Sera, long one of Italys leading newspapers, in terms of both circulation and influence, is Italys best-selling daily. While retaining an institutional aura, Corriere has maintained its independence throughout periods of political turmoil, contributing to the reliable and traditional image it conveys. It is among the oldest (founded in 1876) and most reputable Italian newspapers. Corriere della Sera appeals to both the upper and the middle classes with its serious and literary style. Its national coverage is substantial; it has some 600 correspondents throughout Italy and bureaus in 20 foreign cities. Corriere della Sera is published by RCS Quotidiani, company of the RCS MediaGroup (which also publishes the well-known Gazzetta dello Sport and holds a 45% stake in Spanish daily El Mundo), an international multimedia publishing group that operates in daily newspapers as well as magazines and books, radio broadcasting, new media and digital and satellite TV. In the digital media sector, Corriere della Sera web site, Corriere.it, is operated through RCS Digital, company of the group which manages and develops digital media publishing activities, as well as coordinate marketing and advertisement. RCS Digital SpA is a company dedicated to managing and developing the activities of RCS on digital media:Corriere della Sera.it and thematic channels, (in addtion to 7

corriere.it, Corriere TV Classified Ads, Mobile, Tablet services) Corriere.it, in addition to online news service includes TV / Video with news, special, image galleries and video content created especially by the in-depth editorial, as well as real and its online news service. The broad diffusions of new smartphones (iPhone, BlackBerry) allowed for further development, with a new range of products and services, so did the arrival on the market for tablet (IPAD, Samsung Galaxy). The online newsroom of Corriere.it is composed of 17 people divided in three main areas, namely desk, editors, and art direction (while print newsroom is composed of about 65 people, divided into specialist areas). 2) la Repubblica La Repubblica is the second largest circulation Italian daily general-interest newspaper, behind the Corriere della Sera. It was founded in 1976 in Rome. La Repubblica is published by the parent company Gruppo Editoriale L'Espresso SpA, a multimedia branded company which operates in the media sector in Italy (publishing - daily newspapers and magazines, radio, television, collection of advertising, digital media) Edited and published in Rome and transmitted for printing to seven additional printing facilities located in Italy and three facilities located abroad. The paper has national news contents for all editions, with an additional local edition for nine cities (Rome, Milan, Turin, Bologna, Genoa, Florence, Naples, Palermo and Bari). It is the only one in Italy (Corriere delle Sera is mainly read in the Northern area of the country) that has a balanced circulation in all the regions of the country.The newspaper could be regarded as close to the moderate left wing of the political spectrum. On April 1996 a la Repubblica website was launched as a collaborative effort with Digital and Interbusiness (a unit of Telecom Italia), as an on-line trial version of the newspaper, created for election of the April 21. Later on the same year the project Repubblica - work in progress started with the objective of testing the organization for the realization of an on-line edition. In 1997 la Repubblica was Italys first daily newspaper to have its own Web-based newsroom. Since then repubblica.it has been Italys number-one digital information site. In the last 14 years, it has consolidated its success through total coverage of the country, which is ensured by its local editions and by the contribution of the Groups local online dailies. Repubblica.it newsroom is composed of 30 people divided in 4 main areas, namely desk, editors, local news and web design (while print newsroom is composed of about 50 people, divided into specialist areas). With over 1.7 million unique users every day (Source: AWDB, November 2010), Repubblica.it has posted constant growth consolidating its supremacy with a lead that, in the second half of 2010, put it +27% ahead of its closest competitor corriere.it - (source: Awdb, average past 12 months).

TABLE 1 Description of the 2 Newspapers Studied Newspaper Parent Daily Print Circulatio Online Number of Daily web organizatio Circulation n Range Launch online site unique n (paid) Date employees visitors Corriere della Sera Repubblica RCS Gruppo Espresso 453815 416026 National National 1999 1996 16 30 1.326.601 1.592.283

Data Sources Data were collected from three main sources: open-ended interviews, archival documents, and direct observations. We also collected over 50 public documents, including press releases, annual reports, analyst reports, and industry articles. Interviews. 30 in-depth, about 45 minutes in-person interviews with the senior executives at the corporate, newspaper, and online venture levels of the two newspaper organizations, IT managers, and human resources managers. We used semi-structured interview templates concerning what motivated a manager to commit to online venture, how that commitment evolved over time, the relation between print and online efforts, and so forth. We attempted to triangulate by using multiple informants and cross-checking information against archival and public documents to avoid retrospective bias in the interviews. Interviews were transcribed and entered into a case study database. About direct observations: we observed story creation for the newspapers and the Web sites, and visited planning meetings. Data have been collected in the period between February 2010 and May 2011. The two cases 1) Corriere della Sera Strategy at Corriere della Sera is characterized by a general vision and mission but at the same time with some indecision about the sustainable business opportunities of digital media: We want to be a leader of the market of the digital news, for this reason we look around for best practices in USA but also in Spain, at El Mundo, but nobody yet knows about the future scenarios and the right business model [manager, corporate] Furthermore, top management may not have clearly articulated the organization's strategy. As an online newsroom editor states : We need to be online as the others do and because the others do, especially our main competitor. [online editor].

Corriere.it was created in 1999 and a dedicated newsroom in 2001 by a small group of editorial managers, prospectors of immense personal skills, but to the effort of this small coalition have not followed a shape of the organization's structure and processes to fit a strategy clearly chosen by the top management. the online strategy is still not clear, this because the organizations maybe does not believe in the online business, and our readers do not go online, they are traditionalists and read Corriere della Sera for its reputation and brand, and for some well-known journalists, whereas maybe online news are still perceived by our readers are low quality journalism, or as news marketization if not as infotainment for youngsters and computer geeks. [online editor]. Therefore some misalignment amongst units can be perceived. Both managers and print journalists reported that still some print staff members think that online staff has lesser status, and most online staff members think the print staff has greater status, supporting, still in 2010, Singer et al.s (1999) assertions of perceived cultural differences. They can specialize in a subject or two, this means quality; I do know, but I think they have better conditions and more benefits, [online editor]. Maybe some older colleague still thinks print has a more valuable status than online, [print editor]. Asked the degree to which the newspaper utilizes the online service to scoop news, respondents reported hardly ever this happens, this because scoops are preferred to be left to the print. And also this witnesses still a difference of status. Workflow and content issues About workflow and content issues, the organisation appears to be comfortable with using online operations as the distribution platform for breaking news and unique content. Web newsroom deals mainly with publishing of information without internal time limits from 7 a.m. to 23 p.m.; being not bounded by the time constraints of rotary and distribution processes. Questions about workflow procedures and the production of news content revealed, however, that print-side staffs remain relatively uninvolved in the online side of the business. Integration amongst newsrooms is far from being part of the strategy. Corriere della Sera is characterized by two major hubs producing a set of information products in form of news, letters, photos, comics: the online and print newsrooms work in a separate way carrying out two different chains of activity. Most managers and journalists reported that only few online staff members attend routine news planning meetings, where they answer questions and make occasional content suggestions, but are not really joint participants. The online staff role during special-planning meetings, such as planning election coverage, is far more participatory, which suggests that news managers appreciate the unique offerings of the online medium during projects that go beyond day-to-day news coverage. In some exceptional situations, print editors come up here and have a look, they are like kids in front of a video game, they are surprised and excited about the potentialities of online tools, and sometimes they realize we, also, do work seriously here. [online editor]. 10

Online staff develops content for the exclusive use of the online service, whereas print staff members rarely edit content specifically for the online service, and when it happens, it is only because some younger journalist of the print newsroom decides by him/herself to do so, on volunteer basis. This was due also to the fact that journalists' union stated that print journalists should have edited only for the print and print and online editors should have shared the same equipment (a new accordance has been reached only in spring 2011, allowing multimedia activities). This, therefore, had also impact on the technology and on its use for the main editorial activities. For example, both print and online newsroom editors have in use Mthode, an editing and pagination digital environment for the design of newspapers and magazines. Mthode is based on Web technologies and has print functions completely integrated with online publishing in a multichannel fashion. Editors can work directly on the page or in a separate editing window, exploiting a range of advanced graphic design functions fully integrated with standard software. Although Mthode offers several advanced and Web 2.0 oriented functionalities, at the newsroom of Corriere.it these are bounded and constrained by the adoption of Windows 2000 as desktop operating system related and of not up-to-dated and lower performance hardware desktop for the newsroom. This configuration was dictated by the fact that Journalists' Union established that online newsroom and print newsroom should have shared the same equipment. A uniformity that is a de facto duplication of the newspaper editorial activities in two independent newsrooms producing content in parallel without no room for a real integration. For what concerns information reuse and aggregation of multiple external sources, the exploitation of user generated content (mainly comments on news and editorial blogs) although encouraged by marketing department, is limited by the little availability of (human) resources needed for activities of selection and editing of the huge amount of information on hand. User generated content is checked for reuse if coming from external sources or is moderated when generated in Corriere.it web services (comments at forum, blogs etc.) with the help of outsourcing editorial services. Strategy and culture orientation have also an impact on information management in terms of lack of a strong Information Technology (IT) department influence exemplified by the existence of three different IT units, namely IT rotary, IT infrastructure, and ICT application with no central CIO authority defining IT investments and designing services for the newspaper together with marketing, the top management, and the editorial director of the online newsroom. The IT department is a mere support to daily routines and activities of the newsroom with no strategic value. It is important to note the distribution of functions, where i) marketing and ICT application organizational units are close to the web newsroom, ii) IT function for rotary are mainly associated to print newsroom, and iii) IT infrastructure support both the newsrooms. Constraints to change Constraining forces allow the enforcement rules preserving the interests and organizational relevance of the print newspaper newsroom. These forces are a strong brand perceived as traditionalistic, difference of perceived status amongst newsrooms, strategy not clearly stated, journalists' activities limited by the union, the adoption of an obsolete IT portfolio, also to the online newsroom, which, consequently, results "penalized because of the lack of up-to-dated IT and complementary IT resources (Melville, Kraemer, & Gurbaxani, 2004). Besides these issues, there is no close integration between the three 11

existing IT/ICT units with no CIO participating to the board of the newspaper: IT is considered as a mere support to the newsrooms at a different but definitely operational level in a not integrated nor coordinated approach. 2) La Repubblica According to the official website, the mission of the Espresso group emphasizes the centrality of the citizen-reader and the commitment to providing information, culture, entertainment, with independence, freedom and respect for people, having a great responsibility in influencing of ethical and moral values of their audience1. Furthermore, the Group claims the need for quality and sustainable publishing products. The claimed mission is transposed onto repubblica.it web site with a great attention towards political issues and civic movements. For example, in 2010, repubblica.it launched a web site section, named Pubblico, dedicated to the exchange of ideas, and discussions about values, politics and society. In this section readers can find all the indiscretions gathered from the various centres of power by our reporters and journalists (source: www.repubblica.it), all the political videos of Repubblica TV and all polls readers can participate about politics and society. Also technology innovation is part of the mission, and it is viewed as the answer to a demanding, higher educated and techno-confident reader. In 2010, therefore, Repubblica was the first Italian newspaper to appear on tablets, exporting news and multimedia features onto this new form of screen, and in December 2010 the Espresso Group was the first in Italy to launch a specially created publishing project for this device, R7, a Sunday magazine designed solely for tablets, offering readers the best of the daily paper, but redesigned with a new layout for the multimedia format, with video analyses, and interactive photographic and infographic reportages. Convergence of print with other forms of communication (such as internet, mobile/smart phones, and tablets) and the need of integration of print and online content are perceived by journalists, editors, technical specialists and IT staff as a matter of fact. What really matters it is the quality of the writing, technology innovation has always happened and always will [Online newsroom manager] Managers, editors, technical specialists share a common view as they see change as an ongoing process guided by the market and technology evolution and by new user needs and habits, a process enabled by the diffusion of new devices and technologies such as social networks and social media. Working in an organization which is market oriented does not change my work and my mission as a journalist; and technology, especially Internet technology give us the opportunity of a closer relationship with readers, I want to hear what they have to say, I want to fell that I have a mission in giving them what they need [online editor] Amongst online newsroom editors, in particular, change is perceived as some kind of historical inevitability, presenting a continuity of issues, and at the same time a rupture, with respect to the change related to the advent of television. As noticed by one of the interviewees: 1
See the Group website: http://www.gruppoespresso.it/en/the-group/mission-and-values.htm

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When television came, newspapers' people had to wonder about how to relate to television, but they have done virtually nothing, because print and TV were two completely different media. Nevertheless, they wondered about a new and different way of thinking and telling stories and this is what is happening again now, it's happening to us. [Online newsroom manager] Change is perceived as impacting more on the organization of journalistic work rather than on journalism itself. Nevertheless, although Its always journalism no matter the medium, there is a conflict between print and online newsrooms about working schedule and habit, impacting on future projects of integration. In 2011, repubblica.it launched a 24/7 news service and it is now the first all-news publication to have constant updates, even in the dead of night. A similar schedule for the print newsroom is still difficult to imagine. Many journalists worked the same way for 30 years, so telling people of print newsroom that from now on the time schedule will be 24/7, as it is in the online newsroom, could be a problem. In order to convince print newsroom editors to move to a different work shifts, closer to the one of the online newsroom, we already needed ten meetings with the union [Online newsroom manager] The resistance to change is therefore perceived as a part of the conflict between people who realizes the evolution of journalism as part of wider socio-economic process enabled by information and communication technology, and people who do not realize this. As noticed by an interviewee of the online newsroom this conflict is not matter of (or not only) a generational conflict: Who makes a distinction of relevance between print and online content, not only he/she does not understand anything about whats going on, but he/shes also wrong about journalistic profession itself, [online editor] There are too many people who still live in another era, these are not able to understand what content is to be put on paper and what online...and indeed, this is currently the challenge. [online editor] Workflow and content issues Skill and competences required for the print and the online newsroom are different. Online journalism/editing demands for multitasking, flexibility in terms of shifts and roles, and a working knowledge of multimedia communication. Print and online newsrooms are spatially close, although integration mechanisms between them are mainly informal. Some print journalists, who already work for both the print and online newspaper, see the online newspaper as an opportunity to publish news, often relevant, which have difficulties or no chance at all to be published on print. Therefore, the only constraints to change and convergence are mainly related to the official perspective, which still consider print newspaper as the main product. This is showed, for example, by the fact that the online newspaper is very rarely utilized to scoop news. Scoop news are to be published first on the print newspaper, whereas on-line is devoted to insights on the same news.

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if I get the scoop on something I won't tell anybody before putting it into print, if I talk about it to the colleagues of the online newsroom before putting it into print, my boss would beat me up. [print editor] A typical day in the print newsroom kicks off with a morning meeting. Also the chief editor and some editors of the online newsroom is involved, and, sometimes, managers of the of the Group Digital division (in case a special content project or a marketing initiative is to be carried out). During the meeting the online newsroom editors take notes about news that present a promising potential development. At the end of the meeting, the desks of the two newsrooms will have coordinate the work and define priorities about topics/issues. Priorities are relevant to the online newsroom workflow because this may be subject to modification due to events. As said above, most of the journalists provide different articles for print and online versions, but there is still an informal approach to the multimedia work. Ha! Integration! if I had to say what integration is, it's definition would be enclosed in the following formula: every time the print newsroom opens a project or deals with content, print editors also ask themselves 'what shall we do to for the site? and vice versa when the online newsroom opens a project or deals with content, the online editors would ask themselves 'what shall we do to for the print newspaper ? [Online editor] Continuous coverage of front-page events is made possible by the constant production of articles, as well as photographic documentation consisting of almost 500 photos per day and increasing use of video, 28,6 million video clips (source: repubblica.it) were seen in March 2011, with users up more than 90% over the previous year. Some of these video news are scoop news which consequently become news headlines for the print newspaper. Online newsroom invites also readers to submit still images and videos of some breaking news event or something else that might be of interest to the newspaper. In order to manage the great quantity of visual content a visual desk has been created next to the online newsroom desk. This new born visual desk promote visual journalism where show, dont tell is the norm, and it is composed by 9 people, 6 editors and 3 web designers who provide their service to all the newsrooms of the parent Espresso Group (dailies, periodicals, radio and TV). The online newsroom (especially editors at the local editions) and the visual desk take also in great account user generated content and user participation. This is because they tend to view user generated content as providing content relevant to their readers, both online and potentially offline. The inclusion of some user generated content, instead of content produced by professional editors, have been tested. Nevertheless features for a participative audience require more than just the provision of the technology and tools. They also require moderation, and coordination. Activities that can be, therefore, resource intensive due to the necessary editorial intervention. While pictures and videos created by the readers are encouraged, other types of content are limited to comments (moderated by two people working at the archive) and poll. About pools, repubblica.it is experimenting the use of users social networks profiles (mainly with the use of Facebook Connect) in order to remove the barrier of requiring users to register in order to be able to use the newspaper site.

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Management of IT resources Also the management of IT resources reflect the degree and the type of alignment between the two newsrooms and other business units. The Group Digital division promotes integrated initiatives to both external users (i.e. service for readers) and internal user (i.e. information and systems for the newsrooms). It is worth noting that from the online editors and journalist interviews it emerges the idea of information systems design as a participatory activity; this perspective is confirmed by the presence of an IT presidium in the newsroom (2 specialists with technical and web design capabilities). if I need a special page or a tool for the visualization, let's say, for an election poll results, I explain my needs to the web designer or the IT guy, and they will tell me what they can do or suggest other solutions [online editor] The IT department of the Digital division has a presidium of two specialists in the online newsroom and a formal commitment to i) promote integration of the databases of the different contents provided and ii) standardization of the editorial platform. The media convergence being enabled by integrated editorial and information systems is considered an opportunity by both the online and print newsroom editors. With a click I can see what my colleagues at the print newsroom are working to, and this is very useful [print editor] In 2009 the IT department changed its role from a service oriented and demand management unit, to a formal business unit with its own budget. The change of perspective is evident from the proposition of moving from a in-house built editorial systems customized on the needs of the repubblica.it newsroom to a standard one which guarantees interoperability with other systems and infrastructure. This configuration emerges as the background for integration mechanisms and for further insights on the level of integration and in general for the informal vision shared at editorial and operational levels. Discussion: the adaptive cycle Both newspapers, Corriere della Sera and la Repubblica, present characteristics of an Analyser organization. In fact, the online venture can be seen as a shift towards the category Analyzer, with operations in one relatively stable part of the market (print) and one rather unstable (online). In the traditional line of operations (print) the focus is on routine and efficiency, whereas in the new line of business (online), both Corriere della Sera and la Repubblica seeks to adopt good ideas already tested by competitors. The majority of both organizations' revenue is, in fact, generated by a fairly stable set of products and customer or client groups (a Defender characteristic) linked to the print newspaper. At the same time, the most successful product or market innovations developed by prominent Prospectors are adopted both at Corriere della Sera and Repubblica: for example, mobile services or real time video-content as well as social media features. In order to be successful, the Analyzer organisation should be able to respond quickly when following the lead of key Prospectors while at the same time maintaining operating efficiency in its stable product and market areas. As Analyzers, Corriere della Sera and Repubblica presents therefore a dual technological core reflecting solutions of both the Prospector and the Defender. The aim of the two newspaper organizations is in 15

fact to enlarge their product line (online, mobile, archive search, user generated content etc.) without incurring the Prospector's extensive research and development expenses. Hence, from the organisational point of view, the challenge is how to differentiate the organization's structure and processes to accommodate both stable and dynamic areas of operation. The Analyzer typically solves this problem with some version of a matrix organization structure. The structure and processes of the organization are differentiated in order to account for both stable and dynamic spheres of activity. Consequently, heads of key functional units, editorial, technology and marketing, are unite to form a balanced dominant coalition, which is typical of an Analyser organization. This can be observed in Repubblica, and in some extension also in Corriere della Sera although, in the latter, the marketing manager's influence seems to be greater on the online newsroom than on the print newsroom since his task is to identify promising product-market innovations. Nevertheless, Corriere della Sera presents also characteristic of the Reactor organisation. First of all because it is still not clearly stated what may the exact answer to following question: What kind of strategic role do the online newspaper play?. The more common answer amongst both managers and journalists interviewed has been that exploring new opportunities in new media is the primary function of the online newsroom at Corriere della Sera. It seems as both managers and journalists at Corriere della Sera find it hard to respond efficiently to the uncertainty created as a result of changes in the environment. It nevertheless seems that a state of exploration may best summarize the situation of many players (Repubblica included), since fear, uncertainty and doubt are still part of the newspaper industry, also in 2011. Nevertheless Repubblica appears to be more at ease in this explorative activity. The innovation brought to the newsrooms by the new born Visual desk it is the result of this exploration for new kind of products (visual journalism) and its consequent organizational restructuring and design. Also the recently introduced night-time coverage will allow repubblica.it to provide a greater focus on Italian communities around the world. About three million users access repubblica.it each month from outside of Italy and from now on these readers will have direct contact with the editorial staff, making their own reports and testimony known. This will give Repubblica the possibility to intensify niche marketing towards readers who have had limited access to the printed edition. There readers represents a niche market of those living far away from where they were born, who want to keep in touch with the news from home. Recent research exposing the large numbers of long-distance online newspaper readers (Sylvie and Chyi, 2007) underlines that although they do not spend as much time on the newspapers site as local readers, long- distance readers total as many or more than local readers at most online newspapers and thus constitute a largely ignored repository of value; and Repubblica is already experimenting solutions. Corriere della Sera has not yet succeeded in finding a balanced focus between traditional and new activities and in this climate of uncertainty, the Analyzer areas cannot be supported by intensive planning between the IT group and the marketing managers for the development of new products. In this situation, therefore, the key characteristic of the Analyzer's system of balancing between the stable and dynamic areas of operation is difficult to achieve. Repubblica, as a younger company (both because founded in 1976 and also considering the average age of the editors) seems to be more comfortable with innovation. Change is not perceived as a threat to the status quo. At the contrary, innovation goes well in accordance with the brand of a innovative and progressive newspaper (both ideologically and towards to the market). For example, in 2004, through a gradual process, 16

the newspaper introduced colour in every page. This decision shifted the whole Italian newspaper market, forcing the competition to adopt similar measures. While Repubblica appears firm in its role of Analyser organization, Corriere della Sera, instead, presents also some Reactor characteristics. Although there are undoubtedly many reasons why organizations become Reactors, Miles and Snow (2003) have identified three. First, top management may not have clearly articulated the organization's strategy. For example, Corriere.it was created by a small group of editorial managers, prospectors of immense personal skills, but to the effort of this small coalition have not followed a shape of the organization's structure and processes to fit a strategy clearly chosen by the top management (and this unclearness is the second reason identified by Miles and Snow why organizations become Reactors). Furthermore, unless all the different domains, cultural, technological, structural and procedural, are properly aligned, strategy is a mere statement, not an effective guide to behaviour. And this seems to be the current situation at Corriere della Sera. However, the present goal of the organisation does not appear to be integration between print and online newsrooms, as well as different units. And, as noted above, the absence of IT in the dominant coalition is to represent an underutilisation of technology, which is usually a trait of the Reactor organisation. The result is that dual technological core (newsrooms technology, routine information management systems versus web and mobile solutions) are not integrated in a flexible way. Organization's existing technological capabilities are not, thus, well matched with the new products desired by the IT and marketing departments, not even in front of the evidence of the (commercial) performance of the online newspaper, with much over 1 million readers each day and most of the revenues coming from advertising and events promotion. In areas where Corriere della Sera wish to "prospect" (online newsroom and marketing department), these present a functional structure, as well as share the same technology with other units and with print newsroom, thereby making it difficult for the organization to respond to market opportunities quickly. Accordingly, Corriere della Sera exhibits a weak link between its strategy (of being an Analyser organisation, although not clearly stated) and its structure-process characteristics. At Repubblica, instead, the Group Digital division leads the integration and standardization process at a infrastructural and information systems level, and this aiming to provide an integrated and multichannel newspaper underlines the strategy of alignment with the external environment. The third cause of instability defined by Miles and Snow is a tendency for management to maintain the organization's current strategy-structure relationship despite overwhelming changes in environmental conditions. And this is also the case of Corriere della Sera, afraid of loosing the status quo of its influent brand. Misalignment, though, is not only toward external environment but also, to some extent, also within organisation. At Corriere della Sera the achieving of integration seems to be perceived as a cost that might outweigh the benefits or at least significantly reduce the value of integration itself. This because reciprocal interdependence requires for example timely information sharing, whereas team interdependence requires joint problem solving and direct observation. And these are costly. Furthermore, the achieved integration at Corriere della Sera seems uncertain, at the it seems there is no tensions or very low conflict, the misalignment between the two newsrooms or between functions is showed by the lack of accurate information regarding other units as well as the feeling that different functions or/and different units do not behave as a unified whole. Also the rare utilization of online service to scoop news might

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indicate a low level of integration between the print and online units. The need of integration mechanism is therefore perceived. At Corriere della Sera, at the moment, inter-units integration and mutual adjustment and feedback rely on mainly horizontal mechanisms, such as informal communication across print and online newsrooms or across functions (mainly IT and/or marketing) or managerial meetings. The role of small numbers of influent testimonials (chief editors of the recent organizational past or influential journalists) and champions (younger journalists of the online and print newsrooms as well as technology experts working in the IT department) are also important because they represent potential agents of change. Integration mechanisms appear, therefore, to be relevant to the Analyser parts of the Corriere della Sera because they increase the amount of information processed in the organization, as well as the richness of that information, providing the organisations with informal devices of coordination, overcoming the organizational members limitations regarding perceptions and understanding in the ability to achieve the common goals. Together with achieved integration and integration mechanism, the third dimension of integration is requisite integration or required interdependence, (Lorsch and Lawrence, 1972), which is the felt need for joint decision making. At Corriere della Sera this is highly felt by online staff. This varies across situations but the common feeling is that of a desired continual collaboration with print staff, in order of being able of taking common decisions before act. This is mainly to overcome uncertainty but also for the wish of a more significant participation in decision-making. At the moment, though, only the already mentioned informal lateral integration mechanisms provide some sort of casual integration. The online newsroom managers and the marketing managers are the most ones committed to integration at Corriere della Sera, but they said it had been modestly successful, which suggests that further evolution may be required to meet these news managers objectives. At Repubblica, although the integration between the two newsrooms is still mostly informal, with the morning meeting as the only formal integration mechanism, numerous journalists already work for both newsrooms and a full integration between the two newsrooms is seen as an historic inevitability of the next future. Furthermore, the integration between the online newsroom and the Group Digital division is de facto formalized with an IT presidium, and the practice of participatory design (with the participation of both journalists and technicians) for ad hoc web site features represents an important opportunity to put in practice an integrated approach of required interdependence for a shared decision-making process. Conclusion and future work The study of organizational integration strives to understand how the boundaries and structures of organizations are shifting. Organizational development and the innovation that integration is expected to nurture often occurs along these shifting boundaries, where ideas and their advocates compete for organizational influence (Bergquist, 9). Newspapers have traditionally been structured around the notion of silos. This practice has produced a distinction between the traditional newsroom and the more recent online newsroom. Nevertheless, the increasing acceptance of the Internet for consuming news, its development as an advertising platform, and the need to restructure costs, prompt newspaper managers to reconsider the separation between online and print newsrooms. Both Corriere della Sera and la Repubblica have had these newsrooms operating as different entities, with each vying for resources, scoops and readers. In this study, 18

indications are that a much higher level of integration can be beneficial since organizational integration creates structural opportunities for influence to flow in multiple directions. At both organizations, inter-units integration and mutual adjustment and feedback still rely on mainly horizontal mechanisms, such as informal communication. A more highly integrated newspaper could bring to production efficiencies in the form of the online staffs greater empowerment and involvement in the organizations activities and the print staffs more frequent contributions to the online operations. Especially at Corriere della Sera, a higher level of integration may also bring an internal personnel relationships characterized by equalized perceptions of status between print and online employees, as well as having online staff actively participate in planning meetings, which in turn may help the institution of explicit policies for cross-promotion of content. Nevertheless, Corriere della Sera and la Repubblica are becoming more integrated, and news managers are increasingly working with non-news departments to strategize, plan, and market. Integration within the newspaper seems to be a favorable organizational change. This result should not be a surprise since the changes in technology and also in consumption patterns of media users require that media organizations are able to respond quickly to shifting demands. A high level of awareness by individuals of their organization's operation and how each individual or unit fits into that organization is essential. Where awareness is low, the organizational climate is often reflected in a constrained atmosphere, the result of uncertainty by organizational members. Factors of change and organizational climate are intrinsically linked. This is because organizational conflicts are linked, to structural misalignment, as well as cultural. If Corriere della Sera and its journalists and managers are to integrate and work well in the interdependent environment, some level of understanding between the groups is needed. This because ongoing communication is essential for everyone working in the cross platform environments, and managers embarking on integration activities should work to create an organizational value shift among the participants of the changing enterprise. This happens at Repubblica, less at Corriere della Sera where strategy about online opportunities is still not clearly stated and online newsroom primary function is still that of an explorative role. The climate is still of uncertainty, and there is no intensive planning between the IT group and the marketing managers for the development of new products. Value and attitude discrepancies will pose serious risks to the undertaking if communications are not complete, accurate and forthcoming. Corporate myths regarding the competing units or newsroom should be discovered and either exorcised from the lexicon or marginalized by consistent and frequent information to all employee groups. The overall problem is how to establish collaborative intergroup relations in those situations where task interdependence or the need for unity makes collaboration a necessary prerequisite for organizational effectiveness. Nevertheless, online activities can also lead to the emergence of common interests among different parts of the same organization and suggest that these are tightly connected to changes in the overall organization. For example, in both newspapers organizations taken in analysis the marketing department is able to gather information about audience more efficiently than the print newsroom, and it is able to influence on how content is proposed to readers helping the newsroom to adjust the product by creating new services in order to fulfill the readers unsatisfied needs. The down periods for newspaper companies, particularly economic recessions, request the different functions of the organization to align their goals in a way that allows 19

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