Moving with Speed to Do the Right Thing

The sudden resignation of Arbitron's president and CEO Michael Skarzynski came as a shock to both the media and investor communities. Barely a year into the top post, Skarzynski seemed to be the right guy to address the mounting challenges facing Arbitron--heat at the FCC; investigations by state attorneys general; hostile Congressional hearings, and unrelenting criticism from minority broadcasters over the PPM ratings measurement system.

Against this backdrop, the swift and savvy move by the board and top executives at Arbitron to: (1) admit that Skarzynski had not told the truth to a congressional panel, and (2) rapidly replace him was commendable.

Since being dragged unwittingly into the spotlight by activists, policymakers and broadcasters, Arbitron has proven to be a company that is unaccustomed to excessive criticism and political scrutiny. While it has superior technological capability that should be warmly embraced by its many customers throughout the broadcast and advertising industry, Arbitron has not found a way to earn credit for what it does well. In fact, the company has often resembled an awkward dance partner in a media business that values flash and fleetness of foot.

But Arbitron's deft and timely handling of the Skarzynski matter was the right move at the right time. It signals that the team in place at the ratings company in suburban Maryland understands the mandate for accountability and is ready to embrace the new rules of corporate citizenship and responsibility.

(c) 2010 Adonis Hoffman