Tribune Bankruptcy: Culture Shock & Cronyism

In a lengthy article chronicling the bankruptcy of the Chicago Tribune, Chicago Tribune reporters Mike Oneal and Steve Mills write about the ill-fated attempt at changing the culture of the Tribune Company when Sam Zell took control: 

"Less than a year after Sam Zell took control, Tribune Co. filed for bankruptcy protection. Less than two years after that, Zell's hand-picked CEO, radio executive Randy Michaels, resigned amid allegations he had created a hostile and sexist work environment — his goal of turning the company into a digital powerhouse unrealized and his team's efforts to energize Tribune Co. culture widely considered a failure. 

Rather than inspiring employees to embrace a new culture, a task experts say is crucial to remaking a company, Zell and Michaels took an approach that alienated many employees and managers. Attempting to stir the company from its lethargy and instill a more creative spirit, they came off as disdainful and insulting. Instead of fostering innovation among current employees, Michaels brought in a coterie of his colleagues from the radio industry who could not deliver the innovative breakthroughs the company needed. 

In short, Zell and Michaels never bothered to understand the workplace they were trying to remake, which should be job one in corporate culture change…. 

…Michaels' hiring practices — bringing in friends and former colleagues from radio — raised fears that the meritocracy Zell pledged had dissolved into cronyism. Michaels said he saw a need to surround himself with people he could count on. But the practice put some important jobs in the hands of people without relevant experience, demoralizing staffers. 

Marc Chase, a former radio programmer and Michaels ally, was placed atop Tribune Interactive, the company's digital division, despite concerns among some of Zell's lieutenants that he had little relevant experience… 

…Rowdy behavior that later made headlines — crude jokes, sexual innuendo in front of employees, a poker party in Tribune Tower with beer and cigars — reinforced notions that an inner circle existed. To some employees, complaining seemed futile. Human resources, they observed, was run by Barb Buchwald, another hire with ties to Michaels. Her LinkedIn profile at the time noted that her "education" had been completed at "the School of Randy Michaels."

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