In Depth: Jim Walton Bungles Executive Shakeup or Slick PR Move?

I touched on this briefly earlier this morning but it really needs a bigger fleshing out. The major question everyone should be asking in the wake of today’s CNN executive shakeup isn’t “How’d it happen?” nor “What’s the future hold?” nor “What other changes are coming?” and certainly isn’t “What’s Klein’s legacy?”. No, the most important question which only a few people have looked at so far is this: Why now?

Why fire Klein now? This is the real head scratcher. This is what makes the whole executive shakeup nonsensical for me.

Put it in these terms: Klein had mostly completed implementing another makeover to primetime and early evening. John King, USA is still young. Parker Spitzer is set to debut next month. Piers Morgan will debut in a few months. Sure there’s an open question about future talent staffing on American Morning, which Klein was probably already looking at but hadn’t gotten around to working on, but the biggest focus – the one where everyone is looking at – has been primetime. 2/3 of CNN primetime just got rebooted and the lead-in to primetime (King’s show) is new. Firing Klein at this point makes no sense because you fire the man but you’re forced to live with his legacy. You don’t fire people so that you can live with their legacy. You fire people because you don’t want to live with their legacy.

This is the Catch-22 that Jim Walton has now put CNN and Ken Jautz in. Primetime cannot be touched save for Anderson Cooper’s show and that’s not going to happen because that’s the only consistency CNN has going for it in prime right now; not for at least a year. Jautz can’t possibly cancel Parker Spitzer right out of the gate – well he can but it’s unlikely he would – because it makes CNN look more feckless. The stakes are even higher for Piers Morgan since Larry King basically got shoved under the bus to make way for him. That means for the near and mid term CNN is stuck with Parker – Spitzer and for a longer term with Morgan. And since Anderson Cooper is the only identifiable prime time brand CNN has right now, CNN can’t afford to do anything with him especially with two new shows debuting. John King, USA is on less sturdy ground because it’s an older show but here too I think CNN will resist making a wholesale change.

So, if CNN is not going to be making any near or mid term changes to primetime as I believe, then firing Klein seems pointless at worst or a CYA buy-CNN-more-time superficial maneuver because the man behind the shows you’re about to launch is gone but the shows will still go on. Unless Walton and Jautz have something truly radical planned, like un-launching Parker-Spitzer for example or dropping Cooper, Jautz will be boxed in during primetime for at least a year. As I said you fire someone when you want to make a change. But it appears that there is little that will change in the next year because of all these new shows unless CNN starts taking on the personality of MSNBC from 1998-2004.

Not that I’m going to defend Klein on primetime or some of his anchor choices over the years. I’ve said to many people that I thought Klein seemed to be hell bent on staffing his anchor desk with Grade A reporters who turned out to be Grade B anchors. And after pulling CNN back from the more chaotic period that it was internally in when he arrived Klein seemed, like David Bohrman, at times too obsessed with technology and big productions. And his primetime programming choices left something to be desired a lot of the time. But if you’re going to fire the guy, you want to give the next guy the leeway to change things. But by choosing to fire Klein now, Walton hasn’t done that. He can’t do that. Not now. It’s too late.

As I wrote at the top, the key question is “Why was Klein fired now?” If the answer was to change course then this was the most pointless time to do it and Walton has totally bungled the changeover. If Walton wanted Klein out in order to change course he should have done it six months ago, or more, before CNN cemented its new primetime lineup. By firing Klein now, he sticks Jautz with Klein’s new lineup for probably a year at least. Great if the numbers rebound. But if they don’t…or worse, erode further…

If Klein was fired purely as a PR ploy, it may work. Throw the press and the critics, who have been circling CNN’s boat like sharks from the movie Jaws for well over a year, some red meat and hope they’ll go away for a while. Make Klein the scapegoat without acknowledging that you’re basically going to be implementing Klein’s vision in primetime for another year. Jautz’s hire automatically gives CNN some breathing room and the excuse factor (“Hey I just got here, I need time to turn this around”). In that respect Klein’s firing could be viewed as a delaying tactic for lack of a better option and Klein was indeed correct when he said he got shot today. It would be considered part and parcel for CNN’s circular firing squad.

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8 Responses to “In Depth: Jim Walton Bungles Executive Shakeup or Slick PR Move?”

  1. A few business reasons why Klein was might’ve been fired now:
    1) financial: the new financial quarter starts next Friday, Oct 1, and certain costs related to his termination can be put into the current quarter rather than carrying over. There’s also a chance that CNN’s fiscal year starts Oct 1 (I don’t know); if that’s true, there’s even more rationale to tie up as many costs as possible before then.
    2) securing better programming know-how: Prior decisions about the content/host/program changes to the primetime sked would certainly have been taken up to Walton and perhaps beyond, so top management has all bought into the new shows. But Klein has shown no real programming skills; Jautz on the other hand has a string of ratings successes on HLN. It makes sense to get someone in the top job asap to start rolling out the new shows in the best way possible and strategically tweaking them as numbers start to come in. Wondering if Jautz was previously approached by Walton to serve in some additional and/or short-term show-fixer or consult role with the new CNN sked and we can only guess he would’ve smartly declined. But if you’ve got a slate of new shows either in development or launching, you someone who’s a successful show dr on board fast.

  2. god bless lost interest in reading the entire post but…any time is good time. it’s for certain the ratings were not up to par…a new mind can change the direction of a new show. maybe the show will get canceled before it even starts. that would be a blessing. program news and forget the newstainment crap..leave that to fox

  3. I don’t think the situation (no pun intended) is as unchangeable as you think Spud. First assume as you say there will be no major announcements for the next couple of months as Jautz gets his sea legs.
    The first problem is what to do with American Morning. One solution might be to switch John King for John Roberts. It would give Jautz time to come up with a more permanent solution to the problems both shows face. And who knows it might work out as good TV as well.
    I think Cooper is going to be gone to CBS at some future date and so there is not much you can do except maybe make both his hours live and/or put him on at an earlier hour.
    There may also be more to come as to as merger with CBS although I have no knowledge of such a move happening.
    Jautz’s work at HLN shows that he isn’t afraid to go away from real news and into infotainment so that may be the way CNN heads in the future. If so Piers Morgan will be a key piece. Morgan doesn’t start for a few months and there is still time to oversee how that show evolves.
    As for Parker Spitzer until the show airs and we see how good (unlikely) or bad it is there isn’t much that can be done except maybe move the show around. For example, if it’s really awful give it a weekend slot instead of Prime Time.
    More problematic is what to do with Wolf Blitzer & Candy Crowley both of whom look tired and wooden. They are icons that may be past their best before dates.
    And what to do with Rick Sanchez. My thought; move him and his twitter to HLN.
    Just a few thoughts of things that could happen in the future.

  4. For God’s sake, people, paragraphs! With spaces between them. I have a headache.

  5. lynneinla:

    1) If it was financial they never would have signed Klein to a new multi-year deal recently.

    2) Jautz may be a great programmer but his HLN shows in primetime were and are cookie cutter paint by numbers programming…they almost program themselves. What makes them successful isn’t the programming but the format. Format and programming are not completely mutually exclusive but not completely intersecting either.

    Fritz, American Morning is a problem but that’s not where I’m looking at and that’s not why Klein got canned. John King for John Roberts would be a disaster if Kiran Chetry is still there. Roberts and Chetry have almost no chemistry but a King and Chetry combination would be absolutely toxic. Besides, if I was King and I was going to be moved to mornings and away from where the action really is, I’d probably do a Hemmer and quit.

    CNN has too much invested to take the kind of hit it would take if it suddenly moved Parker/Spitzer. No. If they’re still going to launch it, and they’re still running promos for it as of today, they’re going to keep it there where it will either live or die.

    Sanchez won’t be going to HLN. They just gave Mike Galanos and his un-necessary opinionizing most of dayside. No room for Sanchez.

    In any case, I think you’re misinterpreting what I wrote. I’m not saying there aren’t things Jautz can change or fix because there are. I’m saying that primetime is what’s killing CNN in the public eye and that’s locked in place for half a year at least. Jautz can tweak but it’s tweaking a Klein concept. Klein could have tweaked just as well I think so why can him? That’s my point.

  6. I don’t think anyone could have much chemistry with Chetry who I consider lifeless but King is a little more personable than Roberts and thus ; in my opinion; a little better fit for morning TV. It can’t be worse than Roberts & Chetry who I expect to come to blows any day now.

    King is no Hemmer so I don’t see him quitting in a huff. He’s not that good.

    My point was there are things that can be done despite the constraints of contracts and bad publicity. They obviously weren’t happy with Klein and the way things were going and wanted to make a change. So they fired Klein even with his contract.

  7. Walton may have been unhappy with Klein’s performance recently, specifically his handling of the two new prime time shows. Klein’s firing is not so much an indictment of those shows and their formats, but rather Klein’s behind-the-scenes actions.

    Jautz has launched a number of new shows, albeit far different from Parker/Spitzer and PM. Klein’s history with new shows is not so good. 8 pm as a disaster, JK USA tanking, Rick Sanchez taking over more and more broadcast real estate as ratings continue to fall ,etc.

  8. Seems we were talking about 2 different kinds of timing. My point: if CNN was planning on firing Klein in the near future – say the next few months – they might’ve had reason to do it sooner than later, before Oct 1 which is the start of the new financial quarter. That would let them assign some of the termination costs they’d be incurring to the current quarter. That especially would make sense if they have leftover $$ in the current Q’s budget or would rather not take it from the next Q’s. This is definitely a factor that’s considered and can make a company accelerate a firing timeline (and I speak from first-hand experience, having been stuck handling similar as part of management at one of the broadcast networks).

    As to the other timing question – why now after recently signing a new deal – lots of good points made by others here.

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