If a Theme Park Could Become a Carnival...
A New Reality Show at Disney
by Ron Weinberg
"Story-driven comedy and drama has been the strength and temple of radio and TV. I would like Survivor on ABC, but I wouldn't like it on my tombstone."
(Michael Eisner, 2001 - speaking at Stanford Business School)
It didn’t seem like too long ago that when you perused the business section at your favorite bookstore, you would probably come across several books detailing the innovative and profitable management secrets of the Walt Disney Corporation. At the same time, business and general news publications regularly extolled the accomplishments and upbeat visions of Michael Eisner and his workaholic management team. All of this admiration was grounded in solid footing as Disney’s stock skyrocketed year after year. From the mid-eighties through the mid-nineties, Disney was creatively challenging itself and the results were often impressive, if not magical at times.
How times have changed: With the stock price faltering over the last few years, today’s coverage of Disney is more likely to emphasize the company’s many problems. Indeed, it could be argued that Disney’s corporate battles have become more engrossing than many of the company’s offerings of late: whether it’s Roy Disney’s and Stanley Gold’s “Save Disney” campaign, the dead end Pixar negotiations or the Miramax founders wanting to bolt from Disney. Then add plenty of quotes from former business partners and even CEOs of top companies which have basically said that Eisner doesn’t get it anymore.
Literally, it’s easy to spot a disconnect at the Magic Kingdom. Remember Eisner’s unrelenting fixation with “corporate synergy at all levels,” such that every company property and platform should be used to cross promote each other. Accordingly, one plus one would equal three. It certainly sounded good and maybe was successful to a certain extent. So now given the current problems at Disney, what’s Eisner’s latest take on synergy? Well in an ironic twist of his mantra, symbolic of a greater, underlying strategic breakdown at Disney, consider that Michael Eisner’s new book due in 2005 is not being published by Hyperion Press, the Disney publishing arm, but by Warner Books.
Confused? Well maybe Eisner is finally learning that synergy sounds reasonably workable in theory, but in reality, there can be many long run, negative consequences, driven by execution issues. Witness Disney’s $19 billion purchase of ABC/Capital Cities in 1995. The deal was heralded by Eisner for its synergistic potentials; since Disney would gain a network television channel for its production company to provide product for. Unfortunately, pretty much every year since the purchase, ABC has not been competitive for the top spot - now haven fallen to fourth place in the ratings. While, ESPN has been highly profitable, ABC has become a substantial drain on company resources and a poor contributor to Disney’s overall earnings.
Now try to imagine you are the new executive in charge of ABC programming and faced with the mission impossible challenge of not only trying to stop the ratings hemorrhage, but must come up with programming that will make people click from the latest CSI spin-off to your programming. By the way, remember the following to a fault; you won’t have the luxury of proclaiming a multi-year rebuilding strategy: Been there, done it. Rather, it’s win the Super Bowl this year with last year’s 2 and 14 team. So what’s your plan?
Fortunately, you are a creative type who doesn’t need to look far for inspiration. You think about how Disney’s troubles have become on-going folder for not only the business and trade media, but also daily entertainment gossip shows. You even have a hunch that a large number of people in Main Street America probably think that Michael Eisner was fired by Disney after the last shareholder’s meeting. Not surprisingly, these thoughts quickly morph into an innovative program idea. Although you might get fired for moving the concept forward, you will be canned sooner or later anyway, so why not be bold from the onset. At least you can rightly claim that your new reality show embodies that corporate synergy your ultimate boss is (was) so fond of. Because your proposed reality show will find the next CEO of the Walt Disney Company in thirteen weeks. Welcome to “The CEO.”
If masses of people are lining up to audition for “American Idol” and “The Apprentice” while tens of millions watch these shows every week, repeatedly putting them in the top 10, “The CEO” will surely provoke a tour de force of interest! Not to mention, those shows lack the bond that Disney characters, associated stories and theme parks have with almost everybody in America. And the reported paycheck of the Disney CEO isn’t bad either!
Okay it might be a bit of a stretch and somewhat disrespectful to the Board of Directors if a “reality” television program was created to find a permanent CEO. Accordingly, what about hiring an “Acting CEO.” It’s not like any “Acting CEO” is going to put a $135 million dollar movie about the Alamo into production and then have it bomb. Surely, the “Acting CEO” will be smart enough to discontinue using the words: “leverage,” “brand equity” and “minimal investment” in every other sentence, no matter the occasion, no matter the audience.
In comparison to managing almost any other multinational business, overseeing Disney should be relatively straightforward. You don’t have to worry about making billion dollar investments in markets that don’t exist yet or trying to continuously come up with new blockbuster drug therapies because your cash cow patent protections are almost up and clinical trials of follow-up treatments are questionable. Likewise, managing the Yankees is more challenging - talk about a pressure cooker. Really, how hard should it be to nurture the concepts of escapism, family values and fun with billions of dollars at your disposal? Provided your investments are focused on those principles and don’t get skimmed to the bone in order to fund questionable ventures with negative returns, you will do more than good, you will be a hero. Being the CEO of the Walt Disney Company is better than holding the keys to every candy store in the world - absent the worry about gaining weight. You can bet that plenty of people would love to taste such an experience even for a day!
Each week on “The CEO” potential CEOs would be confronted with assignments that the current one, Michael Eisner, has found especially challenging; from getting along with people to inspiring cast members to establishing a company vision. There would be no harsh “Your Fired” or similar putdowns, instead there would a kinder and gentle offer to make them Disney Ambassadors. Possible judges could include Steve Jobs, Roy Disney, Oprah and even your average Disney fan.
In the first episode, contestants will be flown in a private jet and chauffeured to the Magic Kingdom, where they will be given the best rooms and basically treated like royalty. Disney affiliated celebrities (you know the ones found in SuperStar Limousine) such as Tim Allen, Jackie Chen and Melanie Griffith will go overboard stroking their egos to the hilt during a pre-show party. The contestants don’t know it, but they will be evaluated immediately to see where their priorities are. Surely, it would be interesting to see if anybody believes it makes more sense to forgo the festivities and scope out the parks to get a better feel for the business. Furthermore, would any of the contestants decline this opulence and request a room, maybe say at the Pop Century Resort to be in closer contact with the “bread and butter” Disney guest. Or would any of the potential CEOs seek out cast members and solicit their opinions instead of mingling with their new found celebrity friends? We’ll just have to wait and see.
In another episode, potential CEOs have to prepare a presentation that will justify a Fortune 100 company’s investment in sponsoring a new attraction. There will be bonus points given if a deal can be made on the spot. After all, how can a company not afford being associated with the Disney magic. It’s priceless - right! However, the aspiring CEOs won’t be told that they will be negotiating with one of the companies that broke off a previous dealing with Disney and then leaked to the press how repressive and unreasonable the Mouse is.
There are many exciting scenarios to provide smart guidance in selecting an “Acting CEO.” Are contestants able to hire people who aren’t afraid to speak their mind, assuming they can back up their opinions? Do they acknowledge problems, do admit their mistakes and even able to learn from them without paying out a costly settlement? Can any of the potential CEOs go up to a complete stranger and make that person feel like they have been good friends for years? Why is this seemingly small stuff necessary? Because it’s imperative that the next leader of Disney assumes a much more public profile and be genuinely respected by every constituency. After all, isn’t Disney about promoting happiness. Shouldn’t the new CEO actively engage in this effort?
Granted it might be a convoluted fantasy to think the next CEO of Disney can be chosen by a “reality” television program on ABC. On the other hand, it might be quite unsettling when we discover the process used by the Board of Directors to identify and evaluate suitable candidates. Will the selection process involve more than catered meetings at fancy getaways filled with PowerPoint presentations, executive buzz speak, 3-D spreadsheets,10-year financial projections and judging who looks good in a Disney tie. If the Board of Directors considers how a reality show would theoretically test a potential CEO, it might more effectively insure the company’s next CEO has those extra special qualities that Disney so desperately requires.
A New Reality Show at Disney
by Ron Weinberg
"Story-driven comedy and drama has been the strength and temple of radio and TV. I would like Survivor on ABC, but I wouldn't like it on my tombstone."
(Michael Eisner, 2001 - speaking at Stanford Business School)
It didn’t seem like too long ago that when you perused the business section at your favorite bookstore, you would probably come across several books detailing the innovative and profitable management secrets of the Walt Disney Corporation. At the same time, business and general news publications regularly extolled the accomplishments and upbeat visions of Michael Eisner and his workaholic management team. All of this admiration was grounded in solid footing as Disney’s stock skyrocketed year after year. From the mid-eighties through the mid-nineties, Disney was creatively challenging itself and the results were often impressive, if not magical at times.
How times have changed: With the stock price faltering over the last few years, today’s coverage of Disney is more likely to emphasize the company’s many problems. Indeed, it could be argued that Disney’s corporate battles have become more engrossing than many of the company’s offerings of late: whether it’s Roy Disney’s and Stanley Gold’s “Save Disney” campaign, the dead end Pixar negotiations or the Miramax founders wanting to bolt from Disney. Then add plenty of quotes from former business partners and even CEOs of top companies which have basically said that Eisner doesn’t get it anymore.
Literally, it’s easy to spot a disconnect at the Magic Kingdom. Remember Eisner’s unrelenting fixation with “corporate synergy at all levels,” such that every company property and platform should be used to cross promote each other. Accordingly, one plus one would equal three. It certainly sounded good and maybe was successful to a certain extent. So now given the current problems at Disney, what’s Eisner’s latest take on synergy? Well in an ironic twist of his mantra, symbolic of a greater, underlying strategic breakdown at Disney, consider that Michael Eisner’s new book due in 2005 is not being published by Hyperion Press, the Disney publishing arm, but by Warner Books.
Confused? Well maybe Eisner is finally learning that synergy sounds reasonably workable in theory, but in reality, there can be many long run, negative consequences, driven by execution issues. Witness Disney’s $19 billion purchase of ABC/Capital Cities in 1995. The deal was heralded by Eisner for its synergistic potentials; since Disney would gain a network television channel for its production company to provide product for. Unfortunately, pretty much every year since the purchase, ABC has not been competitive for the top spot - now haven fallen to fourth place in the ratings. While, ESPN has been highly profitable, ABC has become a substantial drain on company resources and a poor contributor to Disney’s overall earnings.
Now try to imagine you are the new executive in charge of ABC programming and faced with the mission impossible challenge of not only trying to stop the ratings hemorrhage, but must come up with programming that will make people click from the latest CSI spin-off to your programming. By the way, remember the following to a fault; you won’t have the luxury of proclaiming a multi-year rebuilding strategy: Been there, done it. Rather, it’s win the Super Bowl this year with last year’s 2 and 14 team. So what’s your plan?
Fortunately, you are a creative type who doesn’t need to look far for inspiration. You think about how Disney’s troubles have become on-going folder for not only the business and trade media, but also daily entertainment gossip shows. You even have a hunch that a large number of people in Main Street America probably think that Michael Eisner was fired by Disney after the last shareholder’s meeting. Not surprisingly, these thoughts quickly morph into an innovative program idea. Although you might get fired for moving the concept forward, you will be canned sooner or later anyway, so why not be bold from the onset. At least you can rightly claim that your new reality show embodies that corporate synergy your ultimate boss is (was) so fond of. Because your proposed reality show will find the next CEO of the Walt Disney Company in thirteen weeks. Welcome to “The CEO.”
If masses of people are lining up to audition for “American Idol” and “The Apprentice” while tens of millions watch these shows every week, repeatedly putting them in the top 10, “The CEO” will surely provoke a tour de force of interest! Not to mention, those shows lack the bond that Disney characters, associated stories and theme parks have with almost everybody in America. And the reported paycheck of the Disney CEO isn’t bad either!
Okay it might be a bit of a stretch and somewhat disrespectful to the Board of Directors if a “reality” television program was created to find a permanent CEO. Accordingly, what about hiring an “Acting CEO.” It’s not like any “Acting CEO” is going to put a $135 million dollar movie about the Alamo into production and then have it bomb. Surely, the “Acting CEO” will be smart enough to discontinue using the words: “leverage,” “brand equity” and “minimal investment” in every other sentence, no matter the occasion, no matter the audience.
In comparison to managing almost any other multinational business, overseeing Disney should be relatively straightforward. You don’t have to worry about making billion dollar investments in markets that don’t exist yet or trying to continuously come up with new blockbuster drug therapies because your cash cow patent protections are almost up and clinical trials of follow-up treatments are questionable. Likewise, managing the Yankees is more challenging - talk about a pressure cooker. Really, how hard should it be to nurture the concepts of escapism, family values and fun with billions of dollars at your disposal? Provided your investments are focused on those principles and don’t get skimmed to the bone in order to fund questionable ventures with negative returns, you will do more than good, you will be a hero. Being the CEO of the Walt Disney Company is better than holding the keys to every candy store in the world - absent the worry about gaining weight. You can bet that plenty of people would love to taste such an experience even for a day!
Each week on “The CEO” potential CEOs would be confronted with assignments that the current one, Michael Eisner, has found especially challenging; from getting along with people to inspiring cast members to establishing a company vision. There would be no harsh “Your Fired” or similar putdowns, instead there would a kinder and gentle offer to make them Disney Ambassadors. Possible judges could include Steve Jobs, Roy Disney, Oprah and even your average Disney fan.
In the first episode, contestants will be flown in a private jet and chauffeured to the Magic Kingdom, where they will be given the best rooms and basically treated like royalty. Disney affiliated celebrities (you know the ones found in SuperStar Limousine) such as Tim Allen, Jackie Chen and Melanie Griffith will go overboard stroking their egos to the hilt during a pre-show party. The contestants don’t know it, but they will be evaluated immediately to see where their priorities are. Surely, it would be interesting to see if anybody believes it makes more sense to forgo the festivities and scope out the parks to get a better feel for the business. Furthermore, would any of the contestants decline this opulence and request a room, maybe say at the Pop Century Resort to be in closer contact with the “bread and butter” Disney guest. Or would any of the potential CEOs seek out cast members and solicit their opinions instead of mingling with their new found celebrity friends? We’ll just have to wait and see.
In another episode, potential CEOs have to prepare a presentation that will justify a Fortune 100 company’s investment in sponsoring a new attraction. There will be bonus points given if a deal can be made on the spot. After all, how can a company not afford being associated with the Disney magic. It’s priceless - right! However, the aspiring CEOs won’t be told that they will be negotiating with one of the companies that broke off a previous dealing with Disney and then leaked to the press how repressive and unreasonable the Mouse is.
There are many exciting scenarios to provide smart guidance in selecting an “Acting CEO.” Are contestants able to hire people who aren’t afraid to speak their mind, assuming they can back up their opinions? Do they acknowledge problems, do admit their mistakes and even able to learn from them without paying out a costly settlement? Can any of the potential CEOs go up to a complete stranger and make that person feel like they have been good friends for years? Why is this seemingly small stuff necessary? Because it’s imperative that the next leader of Disney assumes a much more public profile and be genuinely respected by every constituency. After all, isn’t Disney about promoting happiness. Shouldn’t the new CEO actively engage in this effort?
Granted it might be a convoluted fantasy to think the next CEO of Disney can be chosen by a “reality” television program on ABC. On the other hand, it might be quite unsettling when we discover the process used by the Board of Directors to identify and evaluate suitable candidates. Will the selection process involve more than catered meetings at fancy getaways filled with PowerPoint presentations, executive buzz speak, 3-D spreadsheets,10-year financial projections and judging who looks good in a Disney tie. If the Board of Directors considers how a reality show would theoretically test a potential CEO, it might more effectively insure the company’s next CEO has those extra special qualities that Disney so desperately requires.
