Eisner's letter to CM's

[MrNonacho]

12/03/2003

Dear Fellow Cast Member:

I'm writing to you from a plane on my way to Disneyland for tonight's annual
employee Christmas party, having just wrapped up two days of regularly
scheduled meetings with your Company's board of directors. As you might guess,
the board spent a great deal of time reviewing the results of all our hard
work, and it's a privilege for me to tell you that the creativity, innovation
and dedication displayed by each of you are paying off.

Disney was not alone in its struggle to navigate the tough economic and
international waters of late — companies and individuals across America and
around the world have had to work harder and longer. At Disney, the countless
hours our employees put in over the past year were certainly worth the effort,
and I'm happy to report the results are extremely encouraging.

First, congratulations to The Walt Disney Studios on making industry history by
becoming the first studio to surpass $3 billion in global box office receipts
for 2003. With Pirates of the Caribbean: The Curse of the Black Pearl, Finding
Nemo, Freaky Friday, Bringing Down the House and a string of other great
Disney/Touchstone films paving the way, the studio has enjoyed a phenomenal
year. In home entertainment, the benefits of increased DVD player penetration
and the tremendous strength of our content have brought us recent
record-breaking sales for The Lion King and Finding Nemo DVD releases. In fact,
the combined current releases of Finding Nemo and The Lion King have already
exceeded 30 million units, and yesterday's Pirates of the Caribbean DVD release
is already off to a tremendous start.

The ABC Television Network team has made solid progress with its prime time
schedule. Over the last 2-1/2 years, the network has successfully added an
unprecedented 10 comedies to its primetime schedule. Versus regular
competition, all 10 of ABC's comedies rank either first or second in their
respective time periods in the key Adult 18-49 sales demographic (eight rank #1
and two rank #2). Just as important, these young comedies are building blocks
that will form the groundwork for the future of the network. While there is
clearly more work that needs to be done, we are pleased with the results the
ABC team has shown thus far. In cable, ESPN's ratings were up 13% in 2003, and
ESPN and ESPN2 had their highest viewership ever in October, up 39% over the
same month last year. Disney Channel had its best year ever with ratings up 47%
among Kids 6-11, propelling the network to #1 among Kids 6-14. Disney Channel
has also evolved into a new engine of creative and franchise development with
the introduction of new Company-wide properties such as Kim Possible, That's So
Raven, Stanley and Lizzie McGuire. And we are equally focused on delivering
growth from our other cable assets, including ABC Family, Toon Disney, our
international Disney Channels and SOAPnet.

At Parks and Resorts, we're pleased to see continued signs of the gradual
recovery in attendance that we have been expecting. Having just completed an
extended period of investment, making each location worldwide a multi-day
resort destination, Disney continues to strategically invest with the addition
of new "E-ticket" attractions such as Mission: SPACE, one of our greatest
technological and creative achievements, which had its grand opening in
October.

As we discussed in our last quarter earnings call, the Consumer Products
licensing business has experienced solid growth. One of Consumer Products'
greatest successes has been its Disney Princess line of merchandise, which has
grown from $100 million in worldwide sales in 2000 to $1.3 billion in 2003.

I hope these results will add to your enthusiasm and renew your energy for the
coming year because, as Walt put it, "if any of you start resting on your
laurels, I mean just forget it, because . . . we are just getting started."

We still have a lot of work ahead, but I could not be more confident in the
team we have to meet these challenges. And we will not be distracted from what
has been and must remain our sole focus — delivering growth and shareholder
value.

There's no question that together we've made Disney the worldwide leader in
quality, family entertainment. We've taken the strength of the Disney brand,
nurtured it and built a wonderful array of assets that touch the lives of
people in every corner of the globe. Of course, in creating and growing this
fantastic enterprise, the most important assets of all are the people who make
the magic happen . . . you!

I thank you and keep up the great work!

Michael

Gee, I wonder if the guy cares about money?

 

[Shaman]

Originally posted by MrNonacho
Gee, I wonder if the guy cares about money?

Who Eisner....never.....not someone who can write a letter like that.....

Nice to see the Eisner camp is participating in the little power war...

 

[General Grizz]

Aww little baby boy wants to give a letter too

Isn't he soo cuuuute??

Cute little Mikey Eikey...



HINT: WE KNOW why he made that letter! DISNEY'S CAST is NOT on his side!

Don't every try! That's right...cling for dear life.

QUESTIONS...

1. Did he write it? Hahaha...

2. Has he made a letter before?

I didn't even have to read it. I skimmed it and already counted several mistakes . . . nice use of "NURTURING" - like THAT was never used against him.

 

[mkt]

he looks like he simply gave them a shareholder letter....

friggin asshat

 

[Shaman]

Originally posted by grizzlyhall
HINT: WE KNOW why he made that letter! DISNEY'S CAST is NOT on his side!

Don't every try! That's right...cling for dear life.

Clinging for dear life....ha...he was probably on his way to an undisclosed location for security reasons. :lol:

But all joking aside...I think the letter hurts him more and helps him because he does not acknowledge the whole Roy/Stanley incident which has left stockholders and CMs weary....he may point to the successes all he wants but the fact is he didn't directly make most of what he mentioned come about.....

ex. PIXAR made Finding Nemo (DISNEY needs Pixar).....PotC Movie....based on Walt's ride...which is one of the reasons so many went to see it.

 

[Sir Hiss527]

Man that guy es me off so bad. He didn't say anything about the whole big issue. "We're not on your side Michael."

 

[mr snrub]

Dear Mr Eisner,

I liked Roy's letter more

Hugs and Kisses,
Snrub

 

[General Grizz]

Originally posted by mr snrub
Dear Mr Eisner,

I liked Roy's letter more

Hugs and Kisses,
Snrub

LMAOROFL! :lol:

 

[CTXRover]

Originally posted by mr snrub
Dear Mr Eisner,

I liked Roy's letter more

Hugs and Kisses,
Snrub

Have to agree there :lol: Why in a time like this would you send out a letter to CM's that would be more interesting to shareholders (of course, I imagine many Disney employees are shareholders)? What was needed was more of a personal, heartfelt letter to the employees. I think he was right not to bring up Roy quite yet, as it is this "power struggle" is making a bigger hole in the morale at Disney than before he left.

This letter should have been more centered around a few sentences in the letter, including 1) "in creating and growing this
fantastic enterprise, the most important assets of all are the people who make the magic happen . . . you" and 2) "as Walt put it, "if any of you start resting on your laurels, I mean just forget it, because . . . we are just getting started." " Unfortunately these "meanigful/morale boosters" were hidden among a bunch of Disney is great, Disney is wonderful mumbo-jumbo.

Its great to hear the company doing better as a whole in a number of areas, but he should have made a bigger try to improve the morale of employees right now with a more personal letter that shows he cares for each and every employee. Of course, with results improving like this company-wide, the shareholders are going to be more likely to support Eisner than Roy right now. I wish Roy had done this "public-bashing" a year or so ago.

 

[CTXRover]

Quick question, does anyone know if he has sent out letters like this to CM's concerning these "annual meetings" in previous years? If so, then perhaps it wasn't meant to be an inadvertant answer to Roy's concerns.

If not, shame on you Eisner for first, not involving the employees of the Disney company on these "secret meetings" before and second for using this one to try and get some support back.

 

[MouseRight]

Again, I know I am a minority here, but some of the rhetoric that is being thrown at us on these threads is getting out of hand.

Like: "Friggin A......" - Does this means what I think it means? If so, I would appreciate you toning down some of the language being used.

Like: All of the CAPITAL letters in large colored fonts. Although I can't actually hear you screaming, the screaming you are doing is coming through loud and clear. Is this really necessary to show your support for Roy? Your heartfelt letter and support threads are for more meaningful and powerful than all of the other threads where you are screaming and ridiculing Eisner.

Like: Ridiculing Eisner's letter. Look, I may not be 100% behind Roy, but I respect the way he wrote his letter and brought up some valid concerns about Eisner's management. I have not called him names or ridiculed him. Eisner should respond. As I understand it, and have seen some of them, Eisner writes these letters to the staff occasionally. I read in indepedent press accounts that he writes those and the Annual Report letter himself.

The letter purposely does not directly address Roy or the accusations Roy has made. Any good politcal or public realtions advisor, will tell you not to. You see it all of the time - Keep working, don't respond tit-for-tat, and let your actions and progress show everyone that you know there are things to fix and get under control (Yes, he does have some way to go to show us that he does.) He needs to address Roy's accusations. He does address some of them in the letter although he doesn't list them and reply. He talks about the wonderful year the studios had (talk about a win - what a great idea to make good movies based on the rides, and let's remember - it happened on Eisner's watch), how ABC's ratings and program successes are rising and how this success will serve as the base for future success, and he talks about the parks and the significant investment the Company has made in those parks throughout the bad economy. Finally he ends the letter by addressing teh CM's and telling them that they are the ones who make the magic happen. What else do you expect him to say?

This letter is his first shot and he addressed some of the issues and the CM's concerns. This won't be the last we see from him, or from Roy for that matter. This game will go on for some time and that is what will hurt The Walt Disney Company the most. I still would like to see them kiss and makeup and together make the Magic Happen. Though, I doubt that will happen.

Finally, this one made me laugh. objr says "....he may point to the successes all he wants but the fact is he didn't directly make most of what he mentioned come about....."

Let me see, you guys have focused all of your negative energies on Eisner and wrote volumes on how he personnaly ruined the Company. Now when he points out some positive stuff, you say that he didn't have a hand in it. Come on lets be somewhat fair in this fight. If he gets the blame for the failures, he should get the credit for the successes, too.

 

[General Grizz]

MouseRight, I understand your concern. As for my giant letters, they have proved effective. The Walt Disney Co. forum for a while was hardly visited. Once my support Roy thread was moved, it would be hard for the necessary WDWmagic visitors to stumble upon it. . . because the point is to get all of the people who support Roy to sign it. Thanks to the large, attention-grabbing letters in my signature, the thread is over eight pages and growing.

Thanks for understanding,
Grizz

 

[CTXRover]

Originally posted by MouseRight

Let me see, you guys have focused all of your negative energies on Eisner and wrote volumes on how he personnaly ruined the Company. Now when he points out some positive stuff, you say that he didn't have a hand in it. Come on lets be somewhat fair in this fight. If he gets the blame for the failures, he should get the credit for the successes, too.

I feel the exact same way and have said it before on some other threads. I kind of lose some sympathy for the pro-Roy/anti-Eisner folks out there when they will blame him for purposefully handling all aspects of the company when it comes to bad or unsuccessful things, but when the company has amazing successes in areas it is because "Eisner had no hand in it". It gets a little hard to believe all the hatred to Eisner when stuff like this comes up.

But for those wondering, yes I support Roy and everything he mentioned in his letter to Eisner I thought rang very true. I also believe that creatively and length-wise, Eisner's time has come and someone new is needed. But I won't chastise him completely since I realize and recognize all the good he has done, even recently, along with the numerous mistakes and bad he has done. I also wouldn't want Eisner to leave right now. Why? Because I really don't think anyone is ready quite yet to "take the reigns". Disney is a massive company and in the wrong hands it could all go to pot.

 

[darthdarrel]

I have to say though that it speaks VOLUMES that every single CM I have talked to is on ROY`s side and everyone of them want Eisner out! HMMMM makes you wonder.

 

[Shaman]

Originally posted by MouseRight
Finally, this one made me laugh. objr says "....he may point to the successes all he wants but the fact is he didn't directly make most of what he mentioned come about....."

Let me see, you guys have focused all of your negative energies on Eisner and wrote volumes on how he personnaly ruined the Company. Now when he points out some positive stuff, you say that he didn't have a hand in it. Come on lets be somewhat fair in this fight.

Michael Eisner, has the same problem....he chooses to emphasis the good and turn a blind eye to the bad...it seems to Eisner (this letter like many others reflects) all the good things are because of him and all the bad things are caused by unforseen external factors. I do realize Eisner has done good things for the Disney company in fact his best years were the first ten years...everything since then has gone down hill....

Know that I respect your views and opinions MouseRight...and that I do not laugh...I choose to exercise my rights to express my opinions; everyone on this site has the right to post their views. Some like to attack others for holding a certain view, I do not impede anyone from posting their feeling on a subject no matter how rediculous it may seem to me. I have voiced my opinion and hope that atleast it is respected.

 

[JLW11Hi]

Some actual proof of Eisner's hand in all of the failures (like DCA, the dimise of feature animation and loss of the Florida studio) would actually be very helpful at a time like this.

I have been on Roy's side for a while now, but I will be one to admit I have seen very little actual proof that Eisner was the one to throw the Disney company out the window.

 

[Raidermatt]

Some actual proof of Eisner's hand in all of the failures (like DCA, the dimise of feature animation and loss of the Florida studio) would actually be very helpful at a time like this.

Eisner is the head honcho, and has been for 19 years. He did share power with Frank Wells until Wells' death in 1994. Decisions like DCA and gutting a studio do not happen without his direction. (If they did, it might be even worse, because that would mean he had no control over his own people.)

 

[daoVinci]

Originally posted by JLW11Hi
Some actual proof of Eisner's hand in all of the failures (like DCA, the dimise of feature animation and loss of the Florida studio).

Marty Sklar (Vice Chairman and Principal Creative Exec for Imagineering) was decidedly against building DCA. Eisner pushed for the go-ahead and...well...we've got DCA. He's publicly said that they were "nuts to build a park next to Disneyland that's half the size and charge the same amount of money."

In response to another post...I do give Eisner some credit. He turned the company around in the eighties and early ninties. And, yes, profits ARE up...but at the expense of the quality that Disney has become known for. And THAT is what will cause the decline of Disney over the next few years.

Profit is important, but it should be the result of producing quality work. Exorbitant greed simply to sate a hunger for an ever-increasing profit margin is NOT what Disney is about.

 

[prberk]

Blah, blah, blah.

That was a stockholder report if I have ever seen one. Nothing wrong with those kinds of details, but they are completely out of place here; and out of touch with what should be a simple, heartfelt letter to employees thanking them for a job well done.

Everything in it is publicly available elsewhere for anyone interested.

This letter really just shows that he doesn't "get it" any more. Disney is a company whose value is more than the sum of last quarter's earnings.

I am sorry. I appreciate his business sense, but I think he has lost his common sense.


P.S.: Roy's use of the term "stakeholders" was more accurate (and yes, deliberately chosen) than Eisner's "shareholders," and it gives away part of the difference between their views. Many more people have a "stake" (any interest of any sort, including being a customer) in the company than who own even one "share" (a stock certificate).... That is why Eisner's rattled off figures just give away how he doesn't get what the true total value of what he does...

 

[prberk]

And we will not be distracted from what
has been and must remain our sole focus — delivering growth and shareholder
value.

Doesn't that say it all in a letter to employees?

Unfortunately he doesn't see that some value is intrinsic, and that good will is the Walt Disney Company's true stock in trade... that supports the rest (even financially) more than any other single asset. "Uncle Walt" often made decisions that seemed financially foolish but built the ground on which Mr. Eisner stands, especially at the "employee Christmas party" at "Disneyland."