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"Mr. Iger assured Mr. Chapek that the extraordinary circumstances would be taken into consideration in the board’s evaluation of Mr. Chapek’s performance. But in reality, two hard, unpredictable years will determine if he can hold the job."
-NY Times: Bob Iger Thought He Was Leaving on Top. Now, He’s Fighting for Disney’s Life.
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The New York Times has just published an article about how Bob Iger is stepping in from his previously diminished role as executive chairman to help manage the crisis at Disney. Either Iger or the Board didn't trust Bob Chapek enough to be able to start his new role in a crisis. This once-in-a-generation pandemic is a difficult test for even the most adept CEOs to pass, to be sure, but it says something that information has suddenly begun finding its way to one of America's biggest newspapers.
It's important to remember that Iger has always closely managed PR with Zenia Mucha. He even brought her along on his personal book tour when giving interviews. If leaks about the company are getting out, it either means (1) things aren't looking good and employees are terrified, or (2) Iger is letting stuff leak to rehab his and the company's image. Both could certainly be true, but I think the biggest takeaway has to be the goal of Iger's return.
He's not just engaged in crisis management, but he is analyzing ways to undertake a massive reorganization at Disney. Never one to let a good crisis go to waste, he seems to be all in on entirely reshaping parts of Disney's business. From major cuts in/philosophy changes towards the pilot season and upfront processes in the TV industry, to simply selling off office space (goodbye TDA/TDO?), what better excuse to trim fat and inefficiency than necessity?
The most important part of a potential reorganization would be the workforce Disney employs. Iger says he does not remember saying Disney is likely to have fewer employees, though the article has independently verified his comments with two other sources. Who would take the blame for cutting the workforce, should such events come to pass? Iger lays the decision at Chapek's feet, saying, "Any decision about staff reductions will be made by my successor and not me." I guess there is a world in which Chapek is not Iger's successor, but for now we know who will play the bad cop.
I don't mean to take a biased view: efficiencies can certainly be found by cutting back on the bloated executive structures and salaries. Corners should not be cut in the product and experiences they provide to guests, because those decisions can have dire consequences. Every business in the world (except for Netflix, perhaps) is reevaluating how they operate, and Disney is right to do the same. It's rare, however, that such comments about Disney make the New York Times instead of just remaining part of the usual rumor mill.
Time will tell how Disney fares under the Return of Iger.
-NY Times: Bob Iger Thought He Was Leaving on Top. Now, He’s Fighting for Disney’s Life.
--
The New York Times has just published an article about how Bob Iger is stepping in from his previously diminished role as executive chairman to help manage the crisis at Disney. Either Iger or the Board didn't trust Bob Chapek enough to be able to start his new role in a crisis. This once-in-a-generation pandemic is a difficult test for even the most adept CEOs to pass, to be sure, but it says something that information has suddenly begun finding its way to one of America's biggest newspapers.
It's important to remember that Iger has always closely managed PR with Zenia Mucha. He even brought her along on his personal book tour when giving interviews. If leaks about the company are getting out, it either means (1) things aren't looking good and employees are terrified, or (2) Iger is letting stuff leak to rehab his and the company's image. Both could certainly be true, but I think the biggest takeaway has to be the goal of Iger's return.
He's not just engaged in crisis management, but he is analyzing ways to undertake a massive reorganization at Disney. Never one to let a good crisis go to waste, he seems to be all in on entirely reshaping parts of Disney's business. From major cuts in/philosophy changes towards the pilot season and upfront processes in the TV industry, to simply selling off office space (goodbye TDA/TDO?), what better excuse to trim fat and inefficiency than necessity?
The most important part of a potential reorganization would be the workforce Disney employs. Iger says he does not remember saying Disney is likely to have fewer employees, though the article has independently verified his comments with two other sources. Who would take the blame for cutting the workforce, should such events come to pass? Iger lays the decision at Chapek's feet, saying, "Any decision about staff reductions will be made by my successor and not me." I guess there is a world in which Chapek is not Iger's successor, but for now we know who will play the bad cop.
I don't mean to take a biased view: efficiencies can certainly be found by cutting back on the bloated executive structures and salaries. Corners should not be cut in the product and experiences they provide to guests, because those decisions can have dire consequences. Every business in the world (except for Netflix, perhaps) is reevaluating how they operate, and Disney is right to do the same. It's rare, however, that such comments about Disney make the New York Times instead of just remaining part of the usual rumor mill.
Time will tell how Disney fares under the Return of Iger.
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