"My Father and Michael Eisner"

Solomon Elias Horowitz, born 1903 was a first generation American. By the time of my birth in 1932, my father had been running his own dress manufacturing business for more then 7 years. He knew every facet of his operation, and was a spectacular salesman. I also observed the positive relationship that he had with all of his employees, who loved and admired him. Did this matter to the success of his company? You can bet it did. This was his only business, and while he strived to make it more profitable, he never tried to enter other business ventures. Was there an ebb and flow to the profitability of his company? Of course there was. But his knowledge of the basics of the operation, and his interpersonal relationships he shared with his staff mattered a lot.

When I started in the "entertainment" business at Columbia Pictures, we were limited in our businesses to the production and distribution of Theatrical Movies, and Television product. We did a few other things, but if the Movies were successful, there would be dancing in the streets, and if they failed, the management would scurry around to find a new bank from whom to borrow money. It was very simple.

In 1984, the Walt Disney Company retained me to do an appraisal of their filmed assets. I realized that the entire asset had been under exploited. The management had their reasons for this, and it appeared that the executives continued to follow the procedures established by Walt Disney. Now, long after his death, they continued to do just that, even in a rapidly changing media environment.

That brings me to the Walt Disney Company today, and Michael Eisner. While I don't diminish Eisners talents or abilities, it was a perfect time for him to come on the scene, and what a film library he "inherited? The eighties would bring explosive growth in worldwide cable, satellite, free television, videocassettes, and DVDs, and Disney exploited these markets as well as could be expected, and the profits from this asset was huge.

The Disney Company today is most certainly the proverbial 1600 Pound gorilla. They operate a wide assortment of business sectors. Should they have purchased the Family Channel from News Corp, and paid what they did? Should they have acquired ABC? Should they have renewed the Pixar deal?

The attack on Eisner concerning these as well as other issues is not fair. He has moved the Company into the 21st century, and for the most part, he has done quite well. That is the good "pro" Eisner news.

The overriding anti Eisner news is his management style, which is inept. While my Father could run his dress business alone, the complexities of Disney's businesses require high-level senior executives, with sufficient authority to get the job done. To consider that Eisner can "fix" the ABC Network is ludicrous. To believe that Eisner can be all things to all operating companies at the same time is unreasonable. For the dissidents to point to the "failed" network as an example of Eisners shortcomings is particularly unfair. However, having said that, it is true that Disney needs to be restructured without Eisner, and put in the hands of a true corporate executive. This executive needs to "connect" with all of the operating staff, and not be distant from them. The house of Donald Duck and Mickey Mouse must be a place of happy people, in fact, a Corporate Disneyland. It's a lot to ask, but whoever comes to run this Company must leave their ego at the door.

In the late 70s I asked the Chairman of Columbia Pictures, Leo Jaffee, why the Company had fired John Mitchell, the President of his Television Company. John was among the best, if not the best Television salesman in the history of the industry. Leo replied that John was good at getting shows onto the network, but he wasn't very good at keeping them there. I replied to Leo that there was something he apparently didn't know, and that was that John was incapable "of making a tree". I went on to explain that the "art" was getting shows on the networks, and the rest was in the hands of a higher power

Eisner too cannot make a tree, but it's appropriate that the Company be turned over to someone who realizes that they are in fact, incapable of "making a tree". There are huge problems facing the "Media" business in general, and not just Disney. The Company must become flexible, and be able to respond intelligently and quickly to the challenges that arise. In order to do this, they must have a cadre of smart and experienced operating executives who are prepared to make the tough operating decisions, and be responsible for these decisions. While these operating executives must "report" to the CEO and the board, they should not look for operating approval from these people. .

The future is certainly a mystery, and the press will continue to enjoy the controversy. What will happen to Comcast remains to be seen. If Comcast succeeds in the pursuit of Disney, they too should leave their egos in Philadelphia, and not bring them to Hollywood.

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