The following interview appeared in Gestion© magazine, an HSM publication.
During Michael Eisner's reign as CEO of Disney between 1984 and 2005, the company's annual income grew from $1.7billion to $30billion, helping establish Eisner as one of the most important figures in American business.
He presided over box office hits including The Little Mermaid, Beauty and the Beast, The Lion King, Sixth Sense and Pirates of the Caribbean, among many others, as well as the opening of Disneyland theme parks in Paris and Hong Kong, and DisneySea in Tokyo. Before taking the helm at Disney, Eisner worked for ABC and was President of Paramount Pictures.
In the following interview, Michael Eisner talks about some of the lessons he has learned during his long and successful career.
You have said that strategy is the factor that has the biggest effect on a company's earnings. What are the keys to arriving at a successful strategy?
It must combine education, vision, financial analysis, and gut reaction. No strategy is as valuable as that which one instinctively believes to be right, especially as market research gets it wrong. If you ask someone what they would want to see in the future, they will respond with something they liked in the past.
What was the strategy creation process at Disney?
I would like to think that it was a well-organized process, but the major part of designing a strategy would occur in the bathroom, in the elevator, walking down the corridor, or taking a shower. We also met in places outside the office. The fundamental thing was making sure that the business was well-managed, because strategy, in the future, makes no sense if the company isn't functioning well in the present. In fact, nothing is better for strategy than profits; everyone feels better when the business is going well.
What was the policy on Human Resources? How were people chosen?
At Disney, customer service is fundamental, which is the reason why we looked for people who knew how to treat the public and why one of the most important selection practices was the group interview. We would also consider the CV and do individual interviews, but it was in the group that we were able to detect those who had personalities more apt for serving the public. When we got five or six people together and asked them to speak about whatever subject, you could quickly sense those that had the right personalities.
You have said that executives should trust their deepest intuitions and instincts, even if this means contradicting research, common sense, pressure from colleagues, or intimidation. Do you still believe this?
Absolutely. It is very difficult to say "yes" to a new idea. There is always a reason to say "no". There is always someone in the research department who says that the idea won't get results. I remember the difficulties I encountered at ABC in the 60s, when I wanted to make a show that would take place in the 50s. The research area had an infinite number of studies that backed up the argument that this program would not work. And I had to bring into play all of my skills in order to produce the series Happy Days and Grease, among others. Intimidation can also come from the public; from people who think that an idea is stupid. Sometimes it is. Therefore we must accept failure, as long as it is within certain limits and doesn't put company finances at risk.
Another of your phrases is that success can be toxic. Was the success you had in your career toxic?
No. For some reason I find it impossible to explain. I always expect the worse and therefore I think that success will be a long time coming. As I'm always looking towards the future, I hardly have any time to enjoy the triumphs. But I know that success makes people arrogant and lazy. For that reason, both at Paramount and Disney, we told executives to think that they were number two or three, never number one.
© Gestion / Interview by Eduardo Braun
About Michael Eisner
With decades of experience leading some of the largest companies in the entertainment industry, Michael Eisner has become one of the most noted business icons around the world.
Michael Eisner will conduct the Special Management Program Leading Creative Organizations on November 18, 2008 in New York City. For more information, please click here or visit www.hsmglobal.com/us/eisner or call HSM at 866-711-4476.
Recognized by Fortune magazine as “the world’s leading strategy expert in business today”, Gary Hamel has outlined ten design rules for innovation for companies intent on generating sustained wealth in the future:
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