Details of Bailey's plans for Trinity Mirror come as the group reported its interim results that showed turnover was down 1.4% to £551.6m as Pre-tax profit rose 2.6% to £80.4m.
Bailey said her strategy for Trinity Mirror will focus on unlocking "its hidden potential for growth". She also said that at the heart of the problem for the national newspapers was that that the organisation needs to get "much better at the core job of publishing".
Sha said: "The actions I am putting in place will transform our business so that its value as a whole is undeniably more than the sum of the parts. I am confident that we will achieve our objective of creating a fundamentally stronger and better performing company," she said.
Bailey began her review of the company shortly after she was appointed in January of this year when she joined from consumer publisher IPC Media.
The review highlighted the potential for improving performance and creating shareholder value by running Trinity Mirror more effectively as a group of publishing businesses.
Bailey has put forward a three-phase programme that aims to stabilise, revitalise and grow Trinity Mirror, and she is putting her reputation on the line as she and her management team are prepared to make specific commitments to improve profitability and increase dividends.
One of the key findings the review made was that although the merger of Trinity and Mirror Group took place nearly four years ago, the degree of integration and economies of scale between the businesses is limited.
After the merger was completed, the regional and national publishing businesses moved in different directions. The regionals focused on disciplined delivery of improved performance through 'From Biggest to Best', while the nationals suffered from what the company calls "lack of firm management focus and market understanding".
While the review confirmed that Trinity Mirror's regional businesses are strong it also highlighted that the division has significant scope for improvement.
Among these areas identified for improvement were circulation; cover pricing; new product development; and further cost reduction through cuts to management structures.
At the three national titles, The Daily Mirror, Sunday Mirror and Sunday People, Trinity Mirror said that the review confirmed the obvious fact that the national titles need to be far more robust than they are.
Bailey has already shaken up the management team and hired new people including former Sun and News of the World marketing director Ellis Watson to the new job of general manager of MGN.
Bailey's review says that the titles "need a much deeper understanding of readers, the role that the newspaper plays in readers' lives and what needs to be in place to trigger the decision to purchase".
Trinity Mirror said that there was also a need to strengthen the focus, skills and discipline of advertising sales within the national titles.
As for the Daily Mirror, which has undergone a major editorial shake-up that saw it oppose the War in Iraq, Trinity Mirror says that research conducted as part of the review confirmed that readers want a blend of news that includes both serious and fun elements.
The recent decision to close 'M' magazine was taken because it was not sufficiently valued by readers and advertisers.
"The strategic vision for the national titles is clear. Management's overriding approach to publishing is customer focused, editorially driven and marketing led. This will ensure that the titles are actively managed as a portfolio delivering strong cashflows through a relentless focus on innovation to meet the evolving needs of readers and advertisers, and a sustained focus on reducing costs."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)