The U.S. newspaper industry's struggle has become a “full-blown crisis,” and one that won't be remedied without outside help, last Thursday's American Press Institute Summit concluded, according to an executive summary of the closed door, CEO-only summit, Editor & Publisher reported Friday.

“The biggest hurdles to progress (are) the industry's senior leadership, including some people in this room,” James Shein told the group. Shein is a turnaround specialist and professor at Northwestern University's Kellogg School of Management. “I am not sure you can take a look at your industry with fresh eyes.”

The day-long conference was part “group therapy” and part “business school class,” with CEOs discussing every possibility they could think of, from continuing to cut costs until the economy is healthier, to “radically” changing newsrooms to wondering “Why can't we be the disruptors? We have nothing to lose,” E&P reported.

The executives filled out worksheets to figure out their “Altman Z scores,” which formulates how close a company may be to bankruptcy. After all calculations had been made, participants discovered that all but one public company at the table was below the safe range, Shein said, according to E&P.

However, despite the dire situations most companies are in, the cost-cutting measures most have been taking for over the past year are neither a quick fix nor a strategy that will help in the long-term, said Steve Miller, executive chairman of auto-parts manufacturer Delphi Corp., according to the summit's executive summary.

"Cutting staffs will reduce costs, but it won't happen fast enough, and will erode the product," Miller told the group, according to E&P.

Miller and Shein listed their recommendations for the group, E&P reported:

• Act like an entrepreneur

• Create a portfolio of initiatives and kill those that fail quickly

• Don't wait for every data point before taking action

• Use downsizing as a tool when necessary, not simply as a cost cutting goal

• Leverage core competencies

• Be honest with employees

• Don't sit and cower and weep about your problems. Inspire.

• Collaborate with outside entities

• Leverage the brand

Those in attendance agreed they will meet again in six months.

Participants included Mark Contreras, senior vice president of newspapers at E.W. Scripps; George Irish, president of Hearst Newspapers; Reid Ashe, EVP and COO of Media General; Robert Dickey, president of U.S. community publishing, Gannett; and John Sturm, president and CEO of the Newspaper Association of America, as well as many others. The full list is available on Fitz & Jen.

Last week, newspaper and media experts criticised the meeting's closed-door secrecy, saying the industry needs to instead open doors to outside voices and ideas.