The Seattle Times Company: a Business Overview

The Seattle Times Company has been a family-owned business for over 100 years. From the original founder Alden Blethen to his great grandson Frank Blethen, the family has retained majority control of the newspaper until present day. This Harvard Business School case details the long family history ending with the fifth generation or "fifth edition" and explains how family ownership, journalistic excellence, commitment to community as well as core values have added up to success in recent years. In the current case Frank Blethen, publisher and CEO of Seattle Times, is celebrating a successful transition from an afternoon to a morning publication. Where other newspapers have failed to adapt to changing lifestyles and trends, Seattle Times has prospered. The successful transition was due in large to the company's private and independent ownership and Franks' unique brand of leadership.

Frank and the rest of the Blethen family pride themselves on the fact that the Seattle Times Company is a family-owned business. In fact, they are determined to eventually gain 100 percent control of the company. And, surely the powers and flexibility that goes along with family ownership is a big reason why Seattle Times succeeded where other metropolitan newspapers have failed. There are other advantages of this family-owned business. Unlike media giants, the Seattle Times is concerned with quality journalism and editorial content. The newspaper stays connected to their readers' interests and needs, and not those of investors and distant conglomerate. Finally and most importantly, I believe, the Blethens ensure a healthy working environment (although this has not always been the case, especially early in the fourth generation). Employees of the Seattle Times Company feel a sense of trust with the Blethens. And, although the Seattle Times Company has been unable to offer stock options, it has provided its employees with many benefits. The company built a daycare center 1987, continually enforced diversity, and helped workers transition to a morning publication.

The leadership of Frank Blethen and the insistence on family ownership has produced much success for the Seattle Times Company. Likewise, it has created certain barriers. When Frank expresses concern for the future of his company at the end of the case, he posits a number of thought-provoking questions (pg. 16-17). The majority can be summed us as to whether or not the company will be sufficiently profitable to grow and whether or not it will be able to maintain its employee satisfaction. Frank believes that the Seattle Times Company can either remain privately owned continuing to practice its core values or go public to become a media giant and sacrifice its family mentality for large profit margins. What Frank fails to see is that he can compromise to get the best of both worlds. After all Google, Bain and Company, Twitter and LinkedIn are ranked as some of the highest in the world for excellent employee satisfaction and none are family owned. In fact, some are giants and even leaders in their respective industries.

If the Seattle Times Company remains a small, privately held business and continues to be unable to offer their employees stock options and other incentives, competing for the best talent may become difficult. Potential employees may opt to choose larger corporations where the salary and benefits are more promising. Competing against media leader such as CNN or surviving an economic downturn may also prove challenging. If the company learned to incur debt in the 1990s in order to acquire other firms and add to its infrastructure, it can learn to go public and grow without losing its core values or commitment to quality journalism. The bi-annual family meetings, where family members discuss social issues, current newspaper concerns and future direction, can be implemented for managers and executed more often when the company grows to preserve that precious family mentality.