Ray brings reporter's spirit to role as chairman

Douglas K. Ray still considers himself a "reporter at heart."

But as the new chairman of the board for Paddock Publications, he's come a long way from the days when he spent his mornings writing and reporting news and his afternoons selling ads for his hometown paper in downstate Effingham.

Ray, who joined the Paddock Publications' Herald newspapers as a reporter in 1970 and rose through the ranks to become president, publisher and CEO, was named board chairman last week, succeeding Daniel E. Baumann. Along the way, Ray always credited his newsroom background with giving him a unique understanding of the newspaper's core mission as a force for change and betterment in the communities it serves.

In that spirit, he has served in numerous community roles as well as in leadership positions on industry boards and associations. In 1990, Ray was honored as the Southern Illinois University journalism department's alumnus of the year. Several years before being named publisher in 2009, Ray was named Editor & Publisher magazine's 2006 Publisher of the Year for his excellence leading the company.

Today, Paddock Publications operates not only the Daily Herald but also the weekly bilingual journal Reflejos, the local-news website dailyherald.com and a host of specialty publications. As he prepared to assume his new duties, Ray discussed the challenges and opportunities he foresees for the company and the industry.

Q: What do you see as the biggest threats to the Daily Herald now, the issues on the horizon that the company must address at all costs? And what are the strengths of the company that will help address them? What makes the paper positioned well to meet the continuing challenges of the economy and fast-changing technology?A: There are always threats to the business, competition from large Chicago-based newspapers and other media. But the largest threat to our business is the prospect that our information becomes less essential to the lives of today's readers and those of tomorrow. But it is my view that what we do - our Big Picture. Local Focus - positions Daily Herald products for a bright future.At the center of our business is the commitment to local news. For us it means providing information that is not available elsewhere and that every day, in print, online and in niche products, our focus is on the suburbs, the way we live, our comings and goings and in helping make the community a better place. Our resources will focus on these core values.Q: How would you say the Daily Herald affected the evolution of the suburbs over the past 40 years? In what ways are the suburbs what they are because of the Daily Herald?A: In many ways the growth of the Daily Herald has mirrored the growth of the suburbs. As the suburbs changed from small-town commerce centers to bedroom communities to self-sufficient communities large and small, so did the Paddock Publications newspapers evolve - from small town weeklies to a major daily newspaper in a major market. From the early 1970s to today, our voice of the suburbs approach has meant not only coverage of every aspect of the suburban experience, but it has meant interviewing hundreds and hundreds of candidates for local office, reporting on them and making editorial endorsements to help voters sort through the issues and to be better informed. As well, it has been the Daily Herald's long-held belief that a coordinated approach among communities is the best way to solve problems. As a result, organizations such as the Northwest Municipal Conference were formed at the urging of the newspaper and others. The newspaper also has emphasized quality health care, schools, public safety, libraries, and we have consistently supported referendums urging voters to support them. Today, the suburbs offer some of the highest quality services in the country, and it is why so many people decide to locate here.Q: To what extent has the "sea change" in how people get news and advertising information affected the role the company will play in the future in helping protect and improve the quality of life in the suburbs?A: The same values I regularly talk about apply, whether in print, online or through technology of the future. All this will evolve and preferences of consumers will be played out over time. We cannot minimize the importance of relevant and useful content that has an impact on readers' lives.Q: For years, the Daily Herald's theme has been "Big Picture. Local Focus," suggesting a measure of balance between attention to local news and national and international news. Do you see the balance shifting toward more local news and advertising as the options for broad national stories on government, sports and entertainment explode on the Internet?A: The "Big Picture. Local Focus" theme means many things to us and to our readers. It expresses the goal that we will present a complete news report with enough national and international news to satisfy an informed reader along with consistent and reliable local news. But the local focus is the key, and local news has always been the strength of the Daily Herald. As general news becomes available through multiple platforms, from Yahoo! to major metropolitan newspapers, our differentiation is our strength - local news and information. It has always been our reason for being, and we are fortunate to be positioned in that way.Q: Your origins in the company were in the editorial department and the news side of the company. How has that affected your decision-making when it comes to your now-broader concerns for the company's overall profitability? How did being a reporter and editor prepare you for being a CEO and a chairman of the board?A: After all these years, as I have said before, I probably am still a reporter at heart. And working as a reporter and editor has helped me understand the needs of the reader. A reporter is engaged every day in finding out more about his or her beat, the community, inquiring, discovering and dealing with sources who require your trust. There are many career paths in our business, but I think our industry would be well served if there were more CEOs who have been on the street covering news. Reporting and editing are at the heart of our business.Q: Do you see a future for the Daily Herald on the iPad or some other form of electronic tablet rather than in print? In addition to print? Other newspaper companies have reduced frequency of print publication and made changes in their delivery. Has the Daily Herald considered these kinds of solutions? Do you see opportunities for the company, whether in news, advertising or public relations, in social networking technologies like Facebook, Twitter and YouTube?A: As I said, all this will be played out over time. Certainly smart phones and newer technology have already had a material impact on the way information is received. In the foreseeable future, I don't believe it will be "rather" than print. There will be a combination of vehicles in which information is obtained. Preferences are being demonstrated, and we and others are adapting our content to those consumer preferences. It is always about the content, regardless of the mode of receiving it.Q: Many newspapers are beginning to charge for access to their websites or to certain parts of their websites. Do you see something like this on the horizon for dailyherald. com?A: We have undertaken a major study of paid online content and are developing a strategy. The question is what value will the consumer place on specific information. At this point, we are identifying the content areas. If the information is valuable, consumers will recognize that and will be willing to pay for it just like any other product.Q: To a large extent, the story of the Daily Herald's success over the past 20 years, at least until very recently, has been in its consistent expansion into new communities throughout the suburbs. To what extent do you see geographic expansion as a major thrust of the company's growth in coming years?A: Growing into new communities has been a key to creating the critical mass of circulation that makes the Daily Herald advertising so effective, and we will continue to search out new communities to serve readers who want our brand. But today, the business model is much more complex. Diversification in the context of what we do is becoming more important. Reflejos, for example, is the largest suburban Latino publication in the United States. As demographics change, this product has tremendous potential for growth. In fact, Reflejos' advertising growth this year is leading all the company's products. Commercial printing also has a place in our portfolio, as we have one of the most technologically-advanced printing facilities with capacity to print for other newspapers. The Internet obviously is increasingly important to our future. Dozens of specialty products further diversify our business.Q: The Daily Herald has long prided itself on its status as a "family-owned newspaper." To what extent do you see that status threatened by current conditions in the industry? Has the family ownership "model" made the Daily Herald a better product for readers and advertisers?A: When the late Stu Paddock Jr. was chairman of the board, he asked me how important I felt it was for a newspaper to be family owned. My answer was and is: it depends upon the family. I have been fortunate to have worked with two generations of the Paddock family. They are the model for independent/family ownership. They believe in professional management of their company, but all the while being engaged in the business and in the community. There aren't many family/independent owners today, and the industry is less well off as a result.Q: If you were to break down your personal "to do" list in charting the course ahead for Paddock Publications, what items would you put into the category of "must do in the next year or two" and "must do within the next five to 10 years?"A: Must do today means continuing to work through the deepest recession in modern times and ensuring the company is well managed. After a very difficult 2009, we are in a position to emerge stronger than ever as the economy rebounds. Developing the next generation of leadership prepared to deal with change will be essential looking ahead five years and beyond.