Michael Eisner’s had distributed leadership roles to other junior members of staff in Disney which made them feel like they were part of the organization. He brought into the organization an alternative way of thinking which had a big influence on the way different processes in the organization were performed. This approach made some employees to follow his style but some were quick to dismiss him.
Some board members felt that he did not consult them whenever he made big decisions that had an impact on the company’s future. However, he failed to put in place succession planning, which would have ensured more employees acquire leadership skills to make them capable of running the organization effectively.
He failed to understand that power systems in a big organization have an impact on the way it is managed. Therefore, he left an organizational climate of mistrust and disunity, in the last days of his tenure. He was not able to manage key relationships with the board and this led to antagonism between him and other board members.
Eisner needs to cultivate an organizational climate of trust, loyalty and improvement. His reforms in the company antagonized some creative employees who had been instrumental in improving its performance in the market. Eisner needs to collaborate with other members of the board to bring more unity to the organization.
This will make it possible for the firm to avoid board room wrangles which have a negative effect on the firm’s operations in the market. Eisner needs to make other board members and fellow managers trust him to ensure that he strengthens their confidence in his leadership.
This will make it possible for Disney to improve the way it operates in the industry. Eisner needs to consult more before making crucial decisions to ensure that other stakeholders in the firm do not view him as an authoritarian leader. He needs to understand the concerns of people he works with to improve the way he relates with them.
Eisner made the organization to suffer from poor corporate governance. The firm was not able to plan for the future because the resignation of Roy Disney and the exit of Stanley Gold showed that Eisner did not have a good relationship with the two. He also made Steve Jobs to end the partnership between his firm, Pixar and Disney.
His failure to sign the contract to extend the relationship between Disney and Pixar was detrimental to the company’s finances. He failed to make necessary compromises to safeguard the strategic association between Disney and Pixar.
He had entrenched himself in power which made him lack a future vision for the company. Eisner made major decisions which had an impact on the operations of the firm without involving the board and other senior employees. This disunity made the firm not to have any long term plans to guide its operations in the market.
In conclusion, Eisner’s mistakes exposed the firm adversely. He was not ready to cede power to other members of the organization which caused disunity and mistrust.
He failed to operate effectively at the strategic level which had a negative impact on the performance of Disney in the market. However, Eisner improved the creative process in the company. He encouraged workers to be innovative in their operations which improved the firm’s organizational culture.