How Bob Iger Unchained Disney

If there was an opposite cliché for “two peas in a pod” Bob Iger and Michael Eisner would be it.  They could not be more different in their leadership techniques if they tried.  Bob Iger is the current CEO and President of the Walt Disney Company and took over in 2005 from Michael Eisner.  You could say that both individuals are responsible for the turn-around success that Disney acquired in the 2006 season (shortly after the change of command).  The company’s net income increased 33% and revenues improved by 7%, only to continue in an upward pattern the following year.  But how could two different leadership styles be responsible for the turnaround?

During Eisner’s reign at Disney he was described as micromanaging, imperious and bullying.  The article goes on to say, “Eisner left behind a place where division chiefs were afraid to make decisions.” How do these qualities make for a successful work environment?  From what we have talked about in class, there are different qualities in an individual that work for success but also hinder that success as well.  One could argue that Eisner was conscientious in the work place.  He was organized, systematic, and achievement oriented.  Although this could be the case, those traits seemed to have clouded others and took a negative effect on the employee morale. 

The control aspect of Eisner’s personality seemed to hinder the atmosphere as well.  He would be involved in every phase of the creative process.  Although this is true, his attention to detail helped start the turn-around of the Walt Disney Company, even though the work may have been done with less enthusiasm then is seen at the company today.  Eisner’s attitude about work and how it should be done was strong willed and strategic and one could say of the need for power stance.  He was doing what he thought would be best at the time.  He took chances and controlled the ideas of the company.  This autocratic atmosphere left something to be desired by its employees, who were most likely having a negative affect feeling towards Eisner.  However, all of this is also is what helped Iger to “hit the ground running” according to him. 

Then there is Bob Iger.  A big picture thinker who passes the power around.  Iger believes in the work of a team-oriented environment, everyone working together in hopes of reaching and surpassing certain goals.  You could say that Iger has a very proactive personality.  He changed what he perceived to be wrong, changed the status quo so that everyone felt like what they were doing was important for the company, and used multiple initiatives to solve different problems, such as the division chiefs being unconfident in their decisions.  Iger designed his own office to feel more inviting by installing a door to a heavily trafficked hallway.  He also moved studio chiefs up to his floor to encourage more interaction.  Another change he made was to hold meetings that were more supportive of conversation and less autocratic.  Iger increased motivation ten-fold with his can-do attitude. 

But how does all of this make for a successful organization?  Removing the cloud hanging over the company helped to raise employee spirits and employee engagement with the company.  Having the opportunity to take the lead on different projects helped to instill trustworthiness and openness within the company.  The employees were allowed to use their own creative influences and intellectual ideas without feeling like everything they were doing was wrong.  Every idea was considered with an open mind and the ability to be discussed.  Having the feeling of failure surrounding them when Eisner was around made for a very closed environment, closed to feeling like they needed to try and closed to cooperating with Eisner.  Iger was able to change that with one flick of his magic wand and now the Disney Company is working more efficiently and effectively then ever before. 

Although Eisner was controlling and closed minded, Iger does not speak ill of him.  Iger believes that he could not be doing what he is doing today without the basis of what Eisner set up.  As the saying goes, it takes a village to raise a child, and even though there were rocky times in this village, the base on which its foundation is resting is strong and only becoming stronger with each different CEO that the company goes through and each individual personality they bring to the table.



Angela Minichiello

http://www.businessweek.com/magazine/content/07_06/b4020085.htm