The Walt Disney CorporationThe Walt Disney Corporation

TABLE OF CONTENTTABLE OF CONTENT

• Overview

• Situational Analysis

• Issue Statement

• Leadership Analysis

• Courses of Action

• Selected Course of Action

• Implementation

• Questions / Comments

OVERVIEWOVERVIEW

• Michael Eisner steps down as CEO•Management style•Investment timidity•Unclear vision

•Broken Fences•Employees•Business Partners•Board members

•Robert Iger steps up as CEO•Vision•Reduce turmoil•Leadership role

SITUATIONAL ANALYSISSITUATIONAL ANALYSISVision / Purpose / MissionVision / Purpose / Mission

Vision: The Walt Disney Company is to be the preeminent leader in the field of family entertainment.

Purpose: Commitment to producing unparalleled entertainment experiences based on its rich legacy of quality creative content and exceptional storytelling.

Mission: The Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information, which excels in being a diversified, international, family entertainment and media company.

SITUATIONAL ANALYSISSITUATIONAL ANALYSISValuesValues

• Innovation – follow a strong tradition of innovation• Quality – strive to follow a high standard of excellence; maintain high-quality standards across all product categories• Community – create positive and inclusive ideas about families; provide entertainment experiences for all generations to share• Storytelling – every product tells a story; timeless and engaging stories delight and inspire• Optimism – entertainment is about hope, aspiration and positive resolutions• Decency – honor and respect the trust people place in us; fun is about laughing at our experiences and ourselves

SITUATIONAL ANALYSISSITUATIONAL ANALYSISStakeholder MapStakeholder Map

(LH) Communities Quality products / services Environment protection Compliance with laws Involvement / support

(LH) Business Partners Fair dealings Synergy Free exchange of information Negotiating ability

(LH) Employees Empowerment Creativity Dignity & respect Professional Development Safe work environment

(LH) Customer / Guests Quality products and services Value prices Innovative products Knowledgeable service Safety / Security

(HH) Board of Directors Return of shareholder value Growth in dividend payments Consistent dividend payments Growth in net asset value Involvement in decisions

(HH) Major Business Segments Creativity license Free innovation Independence

Bob Iger

SITUATIONAL ANALYSISSITUATIONAL ANALYSISEffectiveness AnalysisEffectiveness Analysis

Internal Efficiency

- Suffers from advertising woes+ Sales increase by 21.8% to $1.92B

Resource Acquisition

Employee Motivation

- Employee moral / over internal disputes- Lack of empowerment- Lack of free innovation / creativity

Customer / Client Satisfaction

- Under appreciated brands

- Reduction in share price by 15%+ Shed underperforming assets+ Rise in stock shares from $15 to $22+ $698M to $7.8B increase in revenues- New market development

SITUATIONAL ANALYSISSITUATIONAL ANALYSISSWOT AnalysisSWOT Analysis

Strengths Size of operations Brand loyalty Diverse businesses

Opportunities

Weaknesses

Reliance on relationships Seasonal fluctuations Diseased culture Lack of advertisement

Threats

Vulnerability to outside factors Foreign business risks Increasing competitive pressures Soft economy Investor confidence / bad publicity

International development Brand extensions Create a digital market of products

ISSUE STATEMENTISSUE STATEMENT

How can Iger improve the company culture while allowing for freedom of creativity to aid in the expansion of brands into international markets and create a break through in new product develop?

LEADERSHIP ANALYSISLEADERSHIP ANALYSISLeadership Mind & HeartLeadership Mind & Heart

Self-Awareness

• Emotional self awareness• Accurate self-assessment• Self-confidence

Social Awareness

• Empathy• Organizational awareness• Service orientation

Self-Management

• Emotional self-control• Trustworthiness • Conscientiousness• Adaptability• Optimism• Achievement-orientation• Initiative

• Development of others• Inspirational leadership• Influence• Communication• Change catalyst• Conflict management• Bond building• Teamwork and collaboration

Relationship Management

LEADERSHIP ANALYSISLEADERSHIP ANALYSISMoral LeadershipMoral Leadership

Stage 1Control

Stage 2Participation

Stage 3Empowerment

Stage 4Service

Authoritarian manager

Obedient subordinates

Participative manager

Team players

Self-responsible contributors

Stewardship-empow. leader

Whole employees

Servant leader

Active

Passive

Control Centered in the Leader/Organization

Control Centered in the Follower

Follower

Leader

LEADERSHIP ANALYSISLEADERSHIP ANALYSISMotivation and EmpowermentMotivation and Empowerment

HOPE/FAITH(Effort/Works)EndurancePerseveranceDo what it takesStretch GoalsExcellence

Values/Ethical System

Altruistic Love(Reward)

Forgiveness/AcceptanceGratitudeIntegrityHonestyCourageHumility

KindnessCompassion

Patience/Meekness/EnduranceTrust/Loyalty

MEMBERSHIPUnderstood &Appreciated

OrganizationalProductivity,Commitment

CALLINGMake a difference

Life’s Meaning

VISION/MISSION(Performance)

Culture(Learning Organization)

EmpoweredTeams

Strategic Leaders

TEAMMembers

(Personal Leadership)

Mind-set: Sees organization as machine, economics, plansEmphasis: Goals, systems, efficiency, formal authorityDangers: Rigidityand tyranny

Mind-set: Sees organization as family, belonging, clanEmphasis: People, support, empowermentDangers: Lack of content or substance

Mind-set: Sees organization as jungle, power, schemesEmphasis: Resource allocation, negotiation, coalition buildingDangers: Power plays for purpose of self-interest

Mind-set: Sees organization as theater, spiritual meaning, dreamsEmphasis: Vision, culture & values, inspirationDangers: “Messiah” complex

1. Structural

2. Human Resource

3. Political

4. Symbolic

LEADERSHIP ANALYSISLEADERSHIP ANALYSISLeadership Power and InfluenceLeadership Power and Influence

External focus

Flexibility

Internal focus

Stability

Clan Culture

Values: Cooperation Consideration Agreement Fairness Social equality

Bureaucratic Culture

Values: Economy Formality Rationality Order Obedience

Adaptability Culture

Values: Creativity Experimentation Risk-taking Autonomy Responsiveness

Achievement Culture

Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative

LEADERSHIP ANALYSISLEADERSHIP ANALYSISVision, Culture, and ValuesVision, Culture, and Values

EVALUATION OF ALTERNATIVESEVALUATION OF ALTERNATIVES

1. Keep the status quo, change nothing.

2. Create empowered business divisions, through the development of a learning organization built on spiritual leadership.

3. Change the bureaucratic culture to one focused on adaptability.

4. Expand the Disney brand to new markets to increase visibility.

RECOMMENDED ALTERVATIVERECOMMENDED ALTERVATIVE

Change the culture, while adapting to the strategic leadership creating empowerment and employee commitment, needed to expand brands and increase visibility.

IMPLEMENTATIONIMPLEMENTATIONPhasesPhases

1. Establish a sense of urgency

2. Form a powerful guiding coalition

3. Develop a compelling vision and strategy

4. Communicate the vision widely

5. Empower employees to act on the vision

6. Generate short-term wins

7. Consolidate gains, create greater change

8. Institutionalize changes in the org. culture

IMPLEMENTATIONIMPLEMENTATIONTimelineTimeline

Task to Change Time FrameSense of urgency 1-2 mnthsShared commitment 3-4 mnthsCompelling vision and strategy 6 mnthsCommunicate the vision 1 yearEmpower employees 1-2 yrsGenerate short-term wins 1-2 yrsConsolidate gains 1-2 yrsChanges in the org. culture 1-2 yrsChanges complete 1-2 yrs

Year 1 Year 2 Year 3 Year 4 Year 8Year 5 Year 6 Year 7

QUESTIONS / COMMENTSQUESTIONS / COMMENTS