The concept of organizational culture as in the case of Disney during the tenure of Michael Eisner faced some difficulties as he was more inclined to knowledge focus as opposed to information focus. Most of his decisions created conflicts that ended with most of the company’s talented managers being forced to leave the company. His ego would not let him be perceived as anything else but the winner. To him he was the most intelligent and talented person in the company. His lack of compromise drove many valuable players in the company away. One such a person was Jeffrey Katzenberg. He left the company under unfavorable terms after realizing Michael Eisner was not going to give him the position he coveted.
During his tenure Eisner oversaw many changes in the company. Some of the changes brought huge loses to the company. Acquisition of ABC, which performed dismally, is one of the organizational failures that eventually lead to his departure from the company. The organizational climate during his tenure diluted greatly the company’s brand and employees moral. According to him he believed that leadership was a unique trait in every company or in a group of employees. His four rules of leadership; leading by example, being there to control and nudging of other managers as well as being the only source of new ideas affected the company’s growth and organizational culture.
Recommendations to improve organizational climate at Disney
According to the company’s critics, especially the media, they pointed out that Eisner was not a visionary leader, did not have the prerequisite skills and was not expansive enough for the company leadership. His choice of leadership was wanting and had to change. His mode of employment, where he employed architects as a movie director and a school teacher to the board of the company exposed the company to more problems. What the company needed to appoint experienced and independent movie directors to manage the company growth.
Restoration of the company’s creative history would improve on its share holder equity as well as improve on the company’s earning. The company essentially required Eisner to retire for it to make fundamental changes. Eisner’s presentation of bloated and optimistic projections on financial performance, which continuously failed, had to change and new initiatives in the management put in place.
Strategic implications of Michel Eisner leadership
Although Michael Eisner may have failed to live to his expected goal of improving the company financial performance at the end of his tenure, he nevertheless had a well articulated organizational strategy. The company strategy was initially meant to create a strong brand and brings back the corporate synergy that was a hall mark of Disney. Eisner was a strong believer of the corporate strategy values that he had inherited from Walt Disney. He encouraged innovations and new ideas in the company, although new units failed to deliver defined financial performance.
In his strategy of working together, he managed to introduce corporate marketing department, and other departments that were necessary in coordinating and allocating Disney resources. When he realized the company business was deteriorating he introduced new executives to rebuild Disney business. As a strategy he managed to grow the mature audience market which turned movie department profitable. Through the Theme Parks, Eisner used the strategy of pricing attractions updating to make them more profitable. Expansion of Disney internationally was another strategy move that helped the company to stay afloat. Therefore, on strategic level, he was initially effective but his uncompromising stance of management was not effective in achieving the desired goal of improving the company performance.