Traditional media companies often seek scale to address topline headwinds. However, that approach does not address the underlying cost challenges and does not build a foundation for transformational growth. Instead, companies should focus on three key imperatives to build a sustainable cost base and capabilities for growth. These are: Centralize with Local Focus:First, launch a clean-slate centralization of support functions while maintaining a local focus. For most, this means breaking down legacy operating models and rethinking how to reset the cost structure to support unique local and regional media. Vision for Advertisers and Subscribers: Second, reset the vision on winning with today’s advertisers and subscribers. The content rich digital market puts an increased emphasis on data driven content that meets customers in the channel that they prefer. As customer choice grows, so do advertising outlets. A robust understanding of total advertising share of wallet, compared to all media competition, will enable improved deployment of resources toward each market’s consumer preferences and trends. Portfolio Strategy: Finally, once a new understanding of a company’s competitive rights to win is set, then media companies must define an intentional portfolio strategy. This means testing historical assets against the growth strategy or against a margin hurdle rate to fuel growth in other areas. Additionally, companies should consider targeted M&A opportunities for not only cost synergies but also for scale capabilities.Without getting these three imperatives right, traditional media transformations will eventually be stalled by dwindling subscribers and eroding advertising profits.To learn more, please read our article onThe Fundamentals of Transformation for Traditional Media Companies.