"As athletes get older and slow down, the game changes for them, and they need to adjust their attitudes and determination and develop new talents. The same applies in business."
Mel Berning compares growing up in a family with five older sisters, one bathroom and one telephone to growing up in another
century: "I never saw an indoor bathroom or spoke on a phone," he laughs.
It was a rare moment of personal reflection for A&E Networks' senior sales executive, but he immediately brought the point right back to business. "This will be an Upfront market of the 'haves' and 'have-nots,'"
Mel observed, while not directly suggesting some networks' costs-per-thousand may go into the toilet this year. "The 'haves' include (among others) ABC, CBS, Viacom's cable networks and," Mel is confident, A&E's
five cable networks. "There are several networks that have historically high CPMs and have suffered ratings erosion, and they will find themselves in the 'have-not' column this year," Mel believes.
More than most sales executives, Mel is a student of the business, as are many of the graduates of the Benton & Bowles' media department headed by Mike Moore and Phil Guarascio in the 1970s and early 1980s that
spawned Irwin Gotlieb, Rino Scanzoni, Marc Goldstein, Jeff Grant, Rick Rock, and several other industry leaders. He moved from B&B to CBS sales and finance, on to CBS Cable, Disney Channel, and NBC Network Sales before joining MediaVest as chief network buyer. Last year, he joined
A&E where, in less than one year, he elevated the sales organization's customer satisfaction rank from eighteenth in the industry and 20th among media buying executives to eighth overall and first among buyers.*
Mel Berning & Jack Myers at Michael's
He compares his management abilities today vs. his younger days in the business to his days as a high school athlete vs. his abilities as a baseball coach of his 14 year old son's team. "What we couldn't see as kids was
the importance of knowing where the pitch is most likely to be. The key to good athletes and executives is anticipation and experience, and effectively applying those skills." Mel adds "as athletes get older and slow down, the game changes for them, and they need to adjust their attitudes and determination
and develop new talents. The same applies to how effectively we embrace change in business. Companies and individuals that can adjust most quickly will be the winners." Mel's experience watching his dad run a "rust belt" tool and die business in Cincinnati makes him especially sensitive to the
need to adjust business strategies and practices.
"The traditional systems and original structures of the television business were not built to anticipate the growth and changes we're experiencing and it's interesting how some defend the status quo and are afraid to step outside the traditional process," says Mel. "The media agencies that are
anticipating change and are pushing to get in front of changes to the traditional business processes are doing the best."
A conversation about the changing dynamics of management was especially appropriate at Michael's, where Jon Tisch, CEO of Loews Hotels and author of "The Power of We: Succeeding Through Partnerships" stopped
by to say hello. Others lunching at Michael's as Mel and I chatted were Barry Diller and Sony's Andy Lack
"There are real stresses and strains on the business models and old business frameworks," Mel points out. One change he points to is the growing involvement of procurement agents in the business. "They understand
supply and demand and are beginning to understand the importance of advertising environment. There is an underlying tension between brand managers, chief marketing officers and procurement agents over effective and efficient purchasing. The nature of tools are changing to behavior
graphics, linking media purchases to brand sales, media accountability, and cross platform initiatives."
Mel adds, "there is also a growing emphasis on ideas. Talk to any media buyer or seller today and they'll tell you the greatest percentage of their time is spent on idea creation and integration, and not just
negotiation. Good ideas are dependent on people. We can figure out the probability of there being more or less money available in the market and we can manage the Upfront process accordingly. But the business is becoming more dependent on bringing ideas to the table and our ability to implement
those ideas. Like athletes, we need to anticipate changes and develop new talents."
Mel believes "the rate of change is still explosive and accelerating. People in our business need to anticipate how their jobs are changing. Otherwise they will be left behind." A&E, he observes, is a case study for
embracing change. "The entire schedule and mindset of the network has changed with the acquisition of "CSI: Miami," "24," and "The Sopranos." We are active in the Upfront and we need to pay attention to the basics, but deals go on all year long. More creative deals are happening outside the Upfront. There is
still a recognizable core to the network and the business, and we're prepared for continued evolution. But we always need to be prepared for revolutionary changes."
Mel, who has a dual master's degree in Journalism and Business from Columbia, met his wife of 16 years Mary Dell (Harrington) at NBC. In addition to their fourteen year-old son, Mel and Mary Dell have a
nine year-old daughter who loves puppies, and they sponsor student scholarships at Cardinal Hayes High School. His mom remains active at 90 and Mel's six sisters are in Cincinnati, Florida and Washington D.C. When he and Mary Dell purchased their home, he insisted on several bathrooms — just in case.
Mel Berning can be contacted at mel.berning@aetn.com.
*Rankings based on the annual Myers Survey of Advertising Executives on Network Sales Organizations.
