TMA conference

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TMA conference Leadership is a Team Sport
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Leadership matters
Shares in Morgan Stanley rose on news of Mr
Purcell's decision to retire, closing up 2 at
50.88 on the New York Stock Exchange.
The leverage Strategic Leadership provides can be
big and fast
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Drivers of success and failure
S J Berwin
Survey of 330 European investors found
Management is the key driver of success
But less time is spent analysing this aspect of
the deal than others
Factors Contributing to the Failure of an
Investment
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Management
External Shock
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Business
Model
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Understanding leadership
INNOVATION
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PROLIFIC
ADAPTOR
GENERATES IDEAS
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INNOVATOR
Is this a good leadership group ?
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PERIODIC
UNIMAGINATIVE
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INGENUITY
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ORIGINALITY
Disguised case study
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What is Leadership ?
The tasks of Leadership

• Making vision a reality Warren Bennis
• Surrounding yourself with great people Rudolph
  Giuliani
• Creating an environment in which others can
  succeed Bob Bauman

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The Leadership Agenda Connecting the practice
of leadership to business performance
The Right Team and the Team Right
The LeadershipAgenda
Destination and Campaigns
An Organisation Fit for Purpose
The purpose of leadership in business is
competitive advantage
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Where leaders spend their TIME
TIME framework
Think Discover purposeChoose strategic
position Align the two
Mobilise Define campaigns Negotiate targets and
roles
Empower Get the wiring right Empower
and dis-empower Encourage networks
Inspire Build community Tap into morality Act as
an example Tell stories
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Time and the Balanced Action Team


Empower
Think
Inspire
Mobilise
Leadership is a team sport
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Leadership is a team sport
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Leadership is a team sport
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Leadership is a team sport
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Leadership is a team sport
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Leadership is a team sport
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Disney Of Mice and Men

• Focus on two periods in Disney history
• 1984 -1994 the path to The Lion King
• 50m movie delivered 766m box office returns in
  1 year 94-95
• By early 96 delivered 1.5bn of merchandise,
  videos and associated revenues
• Total of over 3bn revenues from Lion King and a
  contribution of 900m
• Between 83 95 Disney relative stock price
  performance moved from under 2 a share to over
  18
• 1997-2004 Decline of Empire
• Two expensive acquisitions ABC and Fox Family
• Failed relationships Katzenbach, Pixar, Miramax
  and Boardroom battles
• Between 2000-2004 share price declined from 37 -
  18

How did the Leaders spend their TIME ?
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Disney Of Mice and Men THINK
Purpose and Strategy a shared purpose to make
people happy Excellent branded content and
demand creation and branded distribution Profit
Multiplier business model Create core content
and leverage it through multiple channels and
multiple partners
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Disney Of Mice and Men THINK

• Impact of Loss of Purpose
• Sole focus on deal terms and the financial
  numbers (vs. making people happy)
• Disney has become an enterprise that is
  rapacious, soulless and always looking for the
  quick buck Roy Disney

Strategy unchanged Branded content and demand
creation and branded distribution Profit
Multiplier business model Create core content
and leverage it through multiple channels and
multiple partners
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Disney Of Mice and MenINSPIRE

• Leader as Chief visionary and story teller
• If you can dream it you can do it Walt Disney
• Katzenbach constantly reminds us who we are,
  what we stand for the heritage of our company and
  our ability to change the world
• The Walt Disney Company is more than just a
  businessit stands for something real and
  meaningful and worthwhile to millions of
  people..our mission has always been to be the
  bringers of joy, to be framers of the good in
  each of us. To speak not to children but to the
  child in each of us Roy Disney

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Disney Of Mice and MenINSPIRE

• Leader as Chief visionary and story teller
• If you can dream it you can do it Walt Disney
• Our mission has not changed it is still to
  create the best animated art, tell the best
  stories to make magic and make people happy
  Katzenbach
• Katzenbach constantly reminds us who we are,
  what we stand for the heritage of our company and
  our ability to change the world

• Results not magic
• Titans was a wonderful and moderately budgeted
  motion picture Eisner
• Good morningas it happens this annual meeting
  is taking place at a time when the amount of
  vision is once again resulting in .a dramatic
  and we believe a sustainable upswing in Disney
  perfomance we set have target of double digit
  compaunded growth in earnings
• Eisner opening remarks to animation team annual
  meeting

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Disney Of Mice and MenMOBILISE

• Campaigns and building coalitions
• The strategy is clear, to deliver against it we
  need to focus on building partnerships, like
  Pixar, Mattel, and Burger King, this year
  Eisner
• Our mission is to be like an orchestra full of
  virtuosos each of us brilliant and together
  dazzling Frank Wells
• Our business model is based on our employees and
  strategic partners trusting and sharing in our
  vision they multiply the value we create Frank
  Wells

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Disney Of Mice and MenMOBILISE

• Campaigns and building coalitions
• The strategy is clear, to deliver against it we
  need to focus on building partnerships, like
  Pixar, Mattel, and Burger King, this year
  Eisner
• Our mission is to be like an orchestra full of
  virtuosos each of us brilliant and together
  dazzling Frank Wells
• Our business model is based on our employees and
  strategic partners trusting and sharing in our
  vision they multiply the value we create Frank
  Wells

• Failure to manage the politics
• Fall out with Katzenbach who successfully sued
  for 270m, and created key competitor Dreamworks
  
• Failed to agree new terms for a partnership with
  Pixar that contributed 45 of Disneys studios
  operating income
• Accused Jobs of encouraging music piracy

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Disney Of Mice and MenEMPOWER

• Creating the conditions for others to be
  successful
• Synergy VP and corporate synergy team reporting
  directly to CEO
• Cross divisional meetings focused on synergy
  planning
• Divisions filed monthly operating reports
  included cross-business initiatives
• Year end evaluations focused on synergy -
  explicitly recognised at bonus time
• Disempowered (fired) executives who took a narrow
  perspective only

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Disney Of Mice and MenEMPOWER

• Imperious Micromanagement
• Eisner has so many ideas but he gives people too
  little power and authority to execute them
  hes more hands on than Mother Theresa
• Fired key executives that disagreed with him led
  to failure to deliver benefits from Capital
  Cities ABC acquisition now bottom of networks
• Took personal control over master planning at
  Animal Kingdom, and California Expansion 2bn
  project widely seen as one of the least
  successful Disney theme park expansions
• Under Eisner, Disney has become isolated like
  North Korea, a struggling insular dictatorship
  led by Kim Jong Eisner
• Eisner personally re-negotiated deal to buy Fox
  Family losing Disney over 800m in his revised
  terms vs. deal outlined by his team
• Everything has become subjugated to what does
  Michael think ? Its a culture that stifles
  creativity and means we lose the best talent

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Disney Of Mice and Men

• Leadership is a team sport
• Wells, Katzenbach, Roy Disney, played important
  roles in revival of Disney alongside Eisner
• Eisner was the creative force and occasionally
  brilliant at deal making
• Wells ran the business he was a wise counsel
  and a financial troubleshooter eg Eurodisney
  refinancing deal
• Katzenbach is known as the golden retriever who
  makes the rest of Hollywood look french in its
  work habits got things done
• Roy Disney represented the purpose and continuity
  of the firm

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Disney Of Mice and Men

• Leadership is a team sport
• Wells, Katzenbach, Roy Disney, played important
  roles in revival of Disney alongside Eisner
• Eisner was the creative force and occasionally
  brilliant at deal making
• Wells ran the business he was a wise counsel
  and a financial troubleshooter e.g Eurodisney
  refinancing deal
• Katzenbach is known as the golden retriever who
  makes the rest of Hollywood look french in its
  work habits got things done
• Roy Disney represented the purpose and continuity
  of the firm

• Eisner alone has seen Disneys most recent
  decline
• Following Wells death and Katzenbachs departure
  to start Dreamworks, Eisner assumed greater
  control, preferring yes men
• Ovitz recruited as COO.. but CFO and legal
  counsel still reported to Eisner
• later sacked for 140m settlement
• What Michael likes is to put six pit bulls
  together and see which five die
• Without the balance of a top team big ideas,
  poor analysis and poor execution

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Where leaders spend their TIME
TIME framework
Think Discover PurposeChoose Strategic
position Align the two
Mobilise Define campaigns Set targets Negotiate
Roles Allocate resources Manage the
Politics Build coalitions Neutralise opponents
Empower Get the wiring right Manage authority
Delegate power Dis-empower Encourage
networks Scrutiny and oversight
Inspire Build Community Tap into morality Act as
an example Tell stories Confront reality Show it
is possible
Leadership is a team sport
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Leadership team the benefits of Balance
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Leadership team the benefits of Balance
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Leadership team the benefits of Balance
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Leadership team the benefits of Balance
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Leadership team the benefits of Balance
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The Leadership Agenda Joining up the dots
Where have you chosen to go ?
What advantage do you need to win ?
What campaigns do you need to focus on ?
Is the organisation fit for purpose ?
What leadership do you need ?
All are important, Strategic Leadership aligns
and integrates them for advantage
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