Bob Iger's Leadership Style and Disney's Organizational Success

Introduction

Leadership style plays an important role in an organization. The case of Michael Eisner and his time as CEO and Chairman of the Board at Disney is a perfect example of the way leadership style affects a company. Eisner came into power as leader at Disney at a pivotal time when the company's revenue was lackluster and the brand seemed to be stagnating with consumers. Eisner helped to reverse Disney's fortunes; however, he had many factors working in his favor, such as buy-in from other followers. Later in his tenure, Eisner faced opposition from other members of the Board and mismanaged the resulting conflict, eventually resigning—but not before ensuring Disney was in good hands with Bob Iger taking over.

This paper describes how Bob Iger managed to right the ship that was left in mortal danger at the end of the Eisner era. It critically analyzes Iger's impact on organizational performance, provides recommendations for organizational success, and discusses recent developments in the field of leadership.

From Eisner to Iger

One of the more daunting tasks faced by Disney executives was how to guide the company successfully into the 21st century in a rapidly changing market. Under Eisner in the 1980s and into the 1990s, Disney had revitalized its brand with a string of animated box-office hits, from The Little Mermaid to The Lion King. However, by the end of the 1990s, Disney was once again floundering. Toy Story, the Pixar computer-animated film, clearly signaled that computer-generated animation — not traditional hand-drawn animation — was the future of the medium. Yet Disney and Pixar maintained a tense relationship throughout the Eisner era. Additionally, Disney had been unable to capitalize on non-animated film markets because of its identity as a family-oriented brand. The studio that Iger inherited from Eisner was one in need of clear direction.

Iger returned Disney to the recipe for success that Eisner had initially hit upon in the 1980s: give the people what they want. Iger acquired Marvel and LucasFilm, as well as other high-demand properties, and began producing films and shows that audiences demanded. He also oversaw the rise of Disney+, the company's streaming service designed to compete with Netflix. Finally, Iger helped Disney foster better working relationships with the creators who could bring their vision to life under the Disney banner. He resolved the tensions that had existed between Pixar's largely independent leadership and Disney, and helped creative talent feel secure and supported within the Marvel Cinematic Universe, which has dominated the box office in the 21st century (Downes, Russ & Ryan, 2007).

What was the leadership style that Iger utilized to right the ship following the tumultuous final years under Eisner, when the Board was conflicted and that conflict spilled into the public sphere? Iger's approach was a laissez-faire leadership style — a hands-off approach to running Disney's various departments. Iger trusted that those brought on board had been hired for a reason and that they possessed the talent and know-how to produce great work. He did not need to be involved in every decision; instead, he wanted others to take on leadership responsibilities within their own areas of authority. Iger's overarching goal was consistency: he wanted creators to feel supported and independent so that they had the room to bring their visions to life. More than anything else, this approach motivated workers, enhanced morale, and helped bring Disney roaring back to life.

Authentic Leadership at Disney

One reason people had reason to trust Bob Iger as head of Disney was that he is an authentic leader (Scipioni, 2019). One of his maxims is that it is acceptable to make mistakes, so long as people learn from them. He never fakes his way through his work and asks the same of others. He wants the organization to succeed because it is filled with creative people who not only know how to make things work but also have the capacity to find solutions to problems (Weber, 2019). Iger was able to identify top talent that could mesh with his vision of what Disney needed to become in the 21st century, then step back and let those individuals do what they were hired to do — knowing that the culture he had established was one in which authentic leadership was promoted and honored. Those who merited praise would receive it; those who demonstrated the tools and know-how to perform well were given the space to do their work without the risk of micro-management.

Successful leaders carefully analyze problems, assess subordinates' skill levels, consider alternatives, and make informed choices — and this is precisely what Iger has done since taking over Disney from Eisner. Iger saw that one of the central problems under Eisner was the conflict between Disney and Pixar over who would control the future of the animated studio. He understood that Pixar's greatness lay in the genius of its animators and creators; the last thing he wanted to do was stifle their creativity by requiring Pixar to submit to heavy Disney oversight. Instead, Iger stepped back and gave Pixar the freedom to produce as it saw fit, which proved to be exactly the right move to resolve that long-standing conflict.

Conclusion

Recent developments in the field of leadership show that when an organization is trying to address ethical issues that have caused problems under prior leadership, it is important to bring in an authentic leader who can restore a moral component to the organization's culture (Weber, 2019). Bob Iger was able to do that at Disney, and it is important that his successor continue in that effort. However, it is equally important that a leader combine authentic leadership with a transformational leadership style in order to move the company in new and innovative directions and prevent stagnation (Elrehail et al., 2018). Authentic leadership can be measured using metrics that focus on the leader's sincerity, moral code, and related elements (Crawford et al., 2020). Yet there should also be a focus on remaining realistic rather than defaulting to excessive positivity — followers generally want straightforward honesty rather than a sugar-coated message (Alvesson & Einola, 2019). If Disney's new leader can follow these recommendations and continue the precedent set by Iger — remaining transparent, honest, and hands-off while actively encouraging creativity — Disney should be well positioned to maintain its current run of success.

References

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Crawford, J. A., Dawkins, S., Martin, A., & Lewis, G. (2020). Putting the leader back into authentic leadership: Reconceptualising and rethinking leaders. Australian Journal of Management, 45(1), 114–133.

Downes, M., Russ, G. S., & Ryan, P. A. (2007). Michael Eisner and his reign at Disney. Journal of the International Academy for Case Studies, 13(3), 71–81.

Elrehail, H., Emeagwali, O. L., Alsaad, A., & Alzghoul, A. (2018). The impact of transformational and authentic leadership on innovation in higher education: The contingent role of knowledge sharing. Telematics and Informatics, 35(1), 55–67.

Scipioni, J. (2019). 10 principles for great leadership, according to Disney's Bob Iger. Retrieved from https://www.cnbc.com/2019/10/23/disney-ceo-bob-igers-principles-for-great-leadership.html

Weber, L. (2019). Restoring trust and rebuilding reputation: The critical roles of corporate purpose, earned media and the new CEO mandate. Journal of Digital & Social Media Marketing, 6(4), 332–340.

Whitten, S. (2019). Disney CEO Bob Iger says he will step down in 2021, a succession plan is forming. Retrieved from https://www.cnbc.com/2019/04/11/disney-ceo-bob-iger-says-he-will-step-down-in-2021.html