Professional Documents
Culture Documents
Pepperdine University
GROWTH AND DYNAMISM AT HEALTHLINE !2
I. Organizational Overview
Healthline Media, Inc. (aka Healthline) is a private online media company focused on
health-related content for consumers. Founded in 1999 and rebranded in 2006, Healthline has
experienced rapid growth culminating in a large infusion of $95 million in additional venture
capital in 2016. This funding came with an increased demand for income growth, which has
propelled an expansion in staff and content production. Healthline’s current challenges relate to
growing headcount while improving the ability of the existing team to adapt to market changes.
The primary product Healthline creates is its website and the health-related articles the
site features. Revenue is derived chiefly from advertising on the site, and is highly dependent
upon traffic generated by search engines, mainly Google. This dependence forces Healthline to
react to any search algorithm changes made by Google and other search engines that impact
Healthline’s site traffic. To increase revenue, Healthline employs a strategy of producing more
expressed in web page-views and the correlated advertising revenue from ad impressions.
In the broader industry of ad-driven internet media companies, there is instability in the
shape of mergers, acquisitions, and bankruptcies. However, there is continued growth overall as
advertising spending shifts away from traditional media to catch up to where consumers spend
time. As a percentage of time spent, growth in consumer use of online media has outpaced
growth in advertising spending, with a large percentage of ad spending still going to print media
despite large declines in consumer usage (Meeker, 2017, p.13). Trends in online advertising are
moving towards more measurability and towards more targeting (Meeker, 2017), both of which
align with a strategic goal of Healthline to track and customize content for each consumer.
GROWTH AND DYNAMISM AT HEALTHLINE !3
Healthline aims to distinguish itself from its competitors through its mission, vision, and
values. By using an empathetic voice toward readers, Healthline aims to establish trust. Rather
than readers finding health suggestions that are alarming or overstated, Healthline hopes its
customers find a reliable and trustworthy human voice in its content. Their slogan is “We want to
be your most trusted ally in your pursuit of health and well-being” (About us, 2017). This
strategy is paying off as Healthline is the only health media site that is currently growing, while
competitors are becoming stagnant (Lau, 2016). While some competitors, like WebMD, have
been in the industry longer and have a more well-established voice, they are not immune to the
instability in the broader web-based industry. WebMD was recently taken private by its investors
in a $2.8 billion transaction (Staff, 2017) indicating that while lucrative, the marketplace for
internet health media companies is notably unstable. Another large competitor, Everyday Health
has also recently been purchased by a larger media conglomerate (Staff, 2016). Both the
unpredictability of the current industry structure, and the technology the industry depends on,
demand that Healthline remain vigilant in all aspects of its business in order to grow
competitively. In order to tackle these growth challenges, Healthline is examining how it can
effectively increase headcount, and expand employee capabilities, such that the organization can
respond quickly to continuous changes in consumer demand and search traffic patterns.
Environmental Challenges
organization, in an environment with high-moderate instability (Appendix A). When taking all
sectors into consideration, technology and human resources are the most critical to Healthline’s
continued success. Healthline is competing against other major technology companies for talent,
GROWTH AND DYNAMISM AT HEALTHLINE !4
both in terms of hiring and retention of staff, making human resources a critical environmental
optimization, and must continually adjust and adapt to changes in search algorithms. This
resources, market, cultural and socio-demographic sectors are also critical to the organization’s
success, though these sectors are either inherently more stable or influenced by stabilizing
actions taken by Healthline, such as their advertising revenue strategy (Appendix A). Based on
best positioned to adopt an analyzer position (Miles & Snow, 2003), where they have select
systems designed for stability while others are designed for increased flexibility (Appendix B,
Table 2). Increasing flexibility in essential areas of the business requires empowering the
business at lower levels and designing key processes to enhance agility (Felin & Powell, 2016).
internal meeting slideshows, and strategic planning documents, Healthline’s strategic stance
appears to be aligned with the above environmental analysis - or at least moving toward
alignment. For example, Healthline has a strong process for securing advertising revenue, which
is designed for optimal stability. While competitors have seen decreasing revenue in recent
quarters, Healthline’s approach has allowed them to increase their advertising revenue (Lau,
2017). This approach supports alignment with their unstable revenue environment, and is
contributing to business success. An area that the organization is working on moving into greater
alignment is human resources, which have been identified as a critical need for business growth
and success. While Healthline is currently misaligned to their competitive talent environment,
and lacks other key human resources components needed to enhance required stability and
GROWTH AND DYNAMISM AT HEALTHLINE !5
flexibility in the area, they are moving toward alignment by making an investment in the People
and Culture (P&C) team in 2018. Because of the current instability of Healthline’s human
resources team and the organizational relevance of the recommendations in this area, further
Currently, Healthline’s People and Culture team is only five employees serving
230 total employees in the organization. The team fulfills the responsibility of recruiting, hiring,
organizational communications, running the performance review process, and more. The small
team is looking to grow in 2018 and has plans to play a critical role in making Healthline more
agile and competitive. Strategic planning for 2018 outlines key areas in which P&C will make
essential contributions to business success. The two functional goals and associated processes
that will be examined further are “Recruit high-quality, more diverse hires at speed” with
improved talent acquisition processes, and “Identify and develop our leaders, and enable all
leaders to coach their teams” with improved leader/manager development processes (Healthline,
2017b).
Talent Acquisition
success. Despite this, Healthline has only employed one recruiter. The objective for 2018 is to
bring on two more employees and create a recruiting team, eliminating the need to use external
recruiting agencies, as Healthline has relied on in the past. The use of external resources has led
to high recruiting costs and lack of oversight in the hiring process across the organization.
Current efforts are underway to streamline this process and centralize recruiting under one
GROWTH AND DYNAMISM AT HEALTHLINE !6
cohesive strategy. This is increasingly important as there is a high demand for hard-to-fill talent.
To enable successful hiring Healthline has created a “Talent and Culture Framework” that helps
recruiters and managers identify candidates that are likely to be successful at Healthline. The
framework includes appropriate elements of individual mindset, role- and level-specific skills,
The recent work Healthline has done to centralize and focus the recruiting strategy is
helping to create stability in this essential area, but does not reflect the flexibility that may be
necessary in their employment strategy overall. There is a question of whether the new approach
will bring in talent that remains relevant as the business changes. While the mindset and values
components of the framework appear to prepare employees well for thriving in a changing
environment, there is a likelihood that changes in the work will transform the skills and roles the
organization needs. As an Analyzer organization (Appendix B), Healthline needs not only to
stabilize key processes, but to develop greater agility in other processes that require greater
dynamism to remain competitive. To develop this level of agility in talent acquisition, other
approaches may be valuable when considering a recruitment strategy and a more comprehensive
Healthline recognizes the need to increase the capacity of their leaders and managers, so
that their organization can be more agile and resilient in all parts of the business. While a robust
manager and leader development strategy is new to Healthline, recent changes have put the
organization on the right track. In 2017, competencies were outlined for each level of the
organization, from individual contributor to vice president. The competencies, along with
organizational values and behaviors, create a framework for effective leadership at Healthline. In
GROWTH AND DYNAMISM AT HEALTHLINE !7
addition, Healthline has identified general skills that all managers should have, including giving
and receiving feedback, performance review, speaking skills, hiring, and coaching. The complete
Manager Basics and Talent Framework will be rolled out in 2018, now that a foundation has
been established.
Healthline’s current and planned leadership development resources are aligned to the
organizational strategy and external environment. However, some gaps still exist and are related
to the vital capability of agility. Recent engagement survey data show that only 31% of
employees feel their workgroup is agile and prepared for change, attesting to the need for further
development of managers with these key skills. Given changes in the industry and the need for
Healthline to respond quickly and effectively, developing agile capabilities in their leaders is
essential for increased effectiveness. Without agile leaders the organization cannot expect to
support true agility throughout the business. Current leadership development content under-
serves these vital capacities, such as balancing polarities, solving complex system problems, or
incorporating feedback. It would be beneficial to add concepts of agility into manager and leader
manager development at Healthline, it is important to consider the current culture and leadership
characteristics of the organization in order to determine what modifications are feasible, and
what additional efforts may be needed to create change. Healthline’s espoused culture is “Train
Hard; Work Together; Recover,” with guiding values of empathy, integrity, ingenuity,
collaboration and joyful healthful living. Based on the employee engagement survey, employees
believe in these values and see the organization as living them, with Healthline scoring 17
GROWTH AND DYNAMISM AT HEALTHLINE !8
percentage points higher than benchmark on the culture and values areas. In November,
Healthline reached their highest NPS rating to date, at 94% (Healthline, 2017c). This data
emphasizes that a strong positive culture does exist at Healthline, but not all elements of this
culture serve the business. Specifically, the data points to cultural challenges with both
strategy and long-term goals. This lack of transparency was seen in both the quantitative data,
with only 39% of employees agreeing that senior leaders clearly communicated, and in
qualitative survey comments such as “All intentions seem to be good, but overall there seems to
be mixed directions /swim lanes not clear” (Healthline, 2017a). In addition to communication,
survey results produced low scores on employee perception of agility; this was the lowest
scoring dimension on the survey. This lack of clear communication and ability to adapt to
change, especially as Healthline continues to expand, could undermine the existing positive
employee engagement.
structural element of Healthline that may be perpetuating challenges with communication and
agility, and this could inhibit changes in key organizational processes. It appears that there is a
strong centralization of power in Healthline’s CEO. Data and anecdotes show that the CEO is
positively regarded, with one employee going as far as to describe him as “loved.” It was also
noted that other senior executives do not have a strong voice in the organization, and there is a
strong top-down hierarchy at Healthline. This lack of diversity in voices at the top makes
changes to the talent acquisition process and leader/manager development will require a degree
GROWTH AND DYNAMISM AT HEALTHLINE !9
of cultural change in order to shift to more agile ways of operating. Healthline, and their CEO,
have begun to take steps to disperse power at the top, hiring a growth advisor for the executive
team and testing more communication channels, but transforming the organization in a manner
that supports greater empowerment across the business will require both mindset and
environment with moderately-high instability, the recommendations that follow are designed to
increase stability in key areas and flexibility in others. Taking into account recent efforts to
stabilize key components of the People and Culture function, the recommendations offer
suggestions for increased agility in the key areas of talent acquisition, leader/manager
development, and culture and leadership to better support organizational growth and
effectiveness. There are two recommendation sets: one for incremental progress toward greater
organizational effectiveness and agility, and one for accelerating Healthline to more
transformative change. A description of each of the recommendation sets illustrates the potential
future state at Healthline, should the recommendations be pursued. The focus areas that follow
present key recommendations to support incremental progress toward the described state. The
make progress on the given focus area, and Table 2 provides specific examples of change in the
recommended areas.
that employees may experience more role clarification in implementing strategic changes. The
GROWTH AND DYNAMISM AT HEALTHLINE !10
change initiatives that contribute to incremental progress are clearly communicated to employees
and understood throughout the organization. This allows more employees to engage with the
business, offering relevant suggestions and ideas that help Healthline be more proactive about
business changes. Communication on the business strategy and organizational change come from
a variety of leaders, and managers are prepared to respond to employee questions and concerns,
helping work groups to become more resilient and autonomous. Upward communication
continues to travel through the functional hierarchy, but there are a variety of collaborative
mechanisms used by leaders and teams, so employees experience their voices as valued. When
the business has to change quickly, people understand why, when, and how. There is agreement
on what is required to succeed in a given role, and both employees and managers understand the
In order to achieve transformative change, Healthline needs to address certain focus areas
so that employees may be empowered in strategic change initiatives within the organization. The
business strategy is co-created with employees and leaders, by pulling relevant information from
the business and its environment on a regular basis. Employee are encouraged to create and own
Smaller, more self-managed teams are the main mode of work, and these teams are given the
more proactive and agile as a whole. Employees at all levels are trusted to make effective
business decisions and robust transparent communication provides them with the information
they need to do so. Expectations for leadership behaviors are high, and is reinforced by a high
whole, the organization is flexible because of the high degree of empowerment given to
To what extent does hiring focus on the ability to create long-term value, as
opposed to a momentary need for a specific skillset?
GROWTH AND DYNAMISM AT HEALTHLINE !13
Appendix A
Cultural 1 Low instability (above 90% NPS); BUT Budget investment people &
high growth & tied to charismatic CEO culture (increase)
Appendix B
Incremental Progress
Transformative Change
References
Felin, T. & Powell, T. (2016). Designing Organizations for Dynamic Capabilities. California
Management Review. 58, 4, 78-96.
Healthline Media, Inc. (2017a). eNPS Results August 2017. San Francisco, CA.
Healthline Media, Inc. (2017b). 2018 People and Org Planning. San Francisco, CA.
Healthline Media, Inc. (2017c). eNPS Results November 2017. San Francisco, CA.
Lau, V. (2016, August 17). Healthline's traffic rises, putting it closer to WebMD and Everyday
Health. Medical Marketing and Media. Retrieved from http://www.mmm-online.com/
media-news/healthlines-traffic-rises-putting-it-closer-to-webmd-and-everyday-health/
article/516494/
Lawler III, E. E., & Worley, C. (2011). Management Reset: Organizing for sustainable
effectiveness. San Francisco, CA: Jossey-Bass.
Meeker, M. (2017). Internet Trends 2017. Kleiner Perkins. Retrieved from http://www.kpcb.com/
internet-trends
Miles, R. & Snow, C. (2003). Organizational Strategy, Structure, and Process. Stanford, CA:
Stanford University Press.
Staff. (2017). WebMD Agrees To $2.8 Billion Buyout By KKR. Investors Business Daily (July
24, 2017), 2.
Staff. (2016). j2 Global, Inc.’s Ziff Davis Completes Acquisition of Everyday Health. Business
Wire (December 5, 2016), 3.