The Major Problem Facing Viacom
Aside from the complexities and challenges of the industry itself, Viacom faces an additional major problem in the form of a succession dispute. More precisely, a power struggle for the role of COO of Viacom emerged when longtime COO Mel Karmazin vacated the post in 2004, leaving a vacancy that needed to be filled, and several people vying for the post. Because of this struggle, the organization found itself faced with several succession planning options.
Possible, and Recommended Succession Options
Because of the need to develop an effective succession plan at Viacom, several possible options emerge: the organization could be divided into several entities, giving all of the COO contenders an opportunity to apply their talents for organizational benefit or remain as one and choose a single COO. The recommended plan of action is to create divisions of Viacom which represent the various interests of the organization, such as separate television, film, and Internet divisions. This also gives the executive team a chance to realize their best potential.
Outcome of the Succession Planning Controversies at Viacom
Given the possible options, and the...
Ultimately, it was decided that Viacom would be divided into two distinct divisions: network television and cable television, two similar yet vastly different entities. This divide solved the internal power struggle and gave Viacom's lagging stock price a needed boost. However, it is reasonable to assume that future power struggles will erupt as the other diverse Viacom interests, such as films and Internet products seek independent leadership.
Members of the "New" Viacom Board of Directors
Because of the realignment of Viacom, a shakeup of the Board of Directors took place; the new board members include George Abrams, Phillipe Dauman, Thomas E. Dooley, Tom Freston, Ellen V. Futter, Robert Kraft, Alan Greenberg, Charles Phillips, Sumner Redstone (Chairman), Shari Redstone (Vice Chair, non-executive), Frederic Salerno and William Schwartz.
Summary
In closing, it can accurately be said that as far as Viacom has come, it undoubtedly will continue to evolve in the future due to the dynamic nature of the industry they compete in, as well as the dynamic nature of the organization itself.
