Principles from Bog Iger, CEO of The Walt Disney Company
How Great Companies Like Disney Survive so Long
Estimated reading time (5 minutes)
Happy Friday, everyone.
On Principles Friday, I share one principle that can help you in your life or business, one thought-provoking question, and one call to action toward that principle.
Principle of the Week
“It’s incredibly important for anyone in the business to have a foot in the present and have a foot in the future.”— Bob Iger
Disney’s visionary leader, Bob Iger, transformed the entertainment giant from a box office giant to a global behemoth. He wasn't a flashy Hollywood insider, but a TV weatherman turned savvy negotiator who climbed the ranks with grit and humility.
Inheriting a fractious empire, he charmed rivals like Steve Jobs, orchestrated billion-dollar acquisitions like Pixar and Star Wars, and revolutionized streaming giants like Disney+. His reign saw record-breaking box office smashes, from Endgame to Avatar, and his strategic eye kept Disney light-years ahead. Bob Iger set the gold standard even in a world of boundless entertainment.
In 2004, the Disney empire, once synonymous with fairy tales and childhood wonder, found itself at a crossroads. Its magic box office sputtered, shareholder confidence waned, and the industry landscape shifted under digital feet. The board wanted a new CEO. Enter Bob Iger, Disney veteran and unlikely candidate for CEO. He lacked the Hollywood pedigree and the charismatic swagger of his predecessor, yet within him burned a quiet ember of determination.
Iger faced the board, a formidable panel holding Disney's destiny in their hands. He knew his strategy – a sprawling map littered with a dozen promising paths – wouldn't suffice. A wise friend, a shrewd political strategist, saw the peril of this approach. "Focus, Bob," he cautioned, "There can only be few strategies." So, Iger embarked on a crucible of self-examination. He pruned, prioritized, and ruthlessly honed his vision to three diamond-sharp pillars: international expansion, reinvigorating animation, and leveraging new technologies.
On the day of reckoning, Iger stood before the board, not with a dazzling sales pitch but a laser-focused, data-driven plan. He spoke of untapped markets, rekindled creative fires, and embracing the digital horizon. His voice, devoid of bravado, resonated with the gravity of the task at hand. He wasn't promising overnight miracles, but a clear, considered path to restore Disney's magic. The board, impressed by his strategic clarity and quiet fortitude, saw not a weatherman, but a captain who could navigate the perilous currents of Hollywood and beyond. Iger, the once-unassuming outsider, had distilled his ambition, tamed the chaos, and secured the keys to the Magic Kingdom. His journey to the helm was a masterclass in focus, a testament to the power of prioritizing ruthlessly and charting a singular course with unwavering conviction.
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Question to Ponder
What are your top three priorities or strategies at work this year? What about in your personal life?
Call to Action
In October 2005, just before Iger became CEO, Disney's market capitalization was around $48 billion. When Iger stepped down as CEO in February 2020, Disney's market cap had climbed to $257 billion, representing a more than fivefold increase during his tenure.
What are principles that we can learn from Bob that made him successful? Here are a few that can benefit you today:
Crystallize and Communicate Your Vision: Lead with a focused vision, articulated repeatedly and effectively. Don't be an inaccessible enigma – get in the trenches and tailor your vision to your team's needs.
2. Embrace Feedback and Foster Candor: Building a great strategy requires feedback. Empower your team by actively seeking their input and creating a culture of honest dialogue. Truth matters; the more perspectives you tap into, the better equipped you'll be to adapt and thrive. On a weekly basis, Bob sits down with his direct reports over lunch to seek feedback and advice. “It emphasizes the need to not only be accessible...but also to have the ability to be candid in the dialogue.”
3. Set your ego aside when negotiating: Transparency and directness are key to efficient dealmaking. Don't play games – lay your cards on the table, understand the other party's needs, and strive for mutually beneficial outcomes. When Bob first talked to Steve Jobs about acquiring Pixar, he cut to the chase, making Disney's desire for Pixar clear and laying out its strategic reasons. This direct approach laid the groundwork for a more constructive and genuine negotiation.
4. Champion Bold Creativity and Embrace Diversity: Don't be afraid to push boundaries and anticipate needs. Give your audience what they crave before they even realize it. Embrace diversity in your storytelling and product offerings – it reflects the real world and leads to sustainable success. Bob Iger faced resistance when proposing Black Panther and Captain Marvel to the Marvel team. Fears of low international revenue haunted Black Panther due to the misconception that Black-led superhero movies wouldn't resonate globally. Captain Marvel faced similar doubts, fueled by past flops of female-led superhero films. Bob overruled the hesitation. Beyond being a critical darling (earning a Best Picture nomination and praise for its villain), Black Panther became the MCU's highest-grossing non-Avengers film. Captain Marvel followed suit a year later, soaring past the $1 billion mark worldwide.
5. Never Stop Learning and Experiencing: Invest in learning about your industry through data, but prioritize real-world experiences. Travel, immerse yourself in different cultures, and see how your product impacts people firsthand. This firsthand knowledge is invaluable; no online research can replace it.
6. Balance Today's Needs with Tomorrow's Vision: Be present and address current market needs, but always have one foot in the future. Stay ahead of the curve by constantly iterating and anticipating potential disruptions. Don't be caught off guard like Blockbuster – be a futurist who actively shapes the landscape of your industry. ESPN soared with Disney's merger, fueling huge profits. But cord-cutting threatened its reign. Bob Iger saw an opportunity in the disruption. He launched ESPN+, paved the way for Disney+, and bundled them with Hulu, acquired through another bold move. Netflix didn't scare him - it spurred him to reshape Disney for the streaming age.
Video of the Week
Bob Iger worked 20 different jobs and had 14 different bosses before he got the CEO job. Here is what one of his bosses advised him.
If you want to learn more principles, I interview founders on my podcast, The First 100, where they share how they acquired their first 100 paying customers. This week:
Episode 124 - The First 100 with Jeff Seibert, the co-founder of Digits
Episode 125 - The First 100 with Matthew Grant, a partner at Instech
And that’s a wrap for now!
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