This short note from Bob Iger’s MasterClass on Business Strategy and Leadership was initially intended for my personal use, so it was not complete. Please visit MasterClass if you want to learn more.
Business Strategy and Leadership
1. Using time effectively
“Even miracles take a little time.” — Fairy Godmother, Cinderella.
=> time to think (quietly)
A day of Bob Iger
4:15 AM work out alone (no phone, no email) => time to think
6:30 AM office, not bombarded by external forces => easing into the day a bit more
8 AM – 4:30 PM work
8 PM- 10 PM: work at home, read for pleasure
Reflect: accomplished things at the end of the day? Got things done?
Infuse creativity = touch something the company created.
2. Focus, Strategies And Priorities
“Your focus determines your reality” (quote in a film)
Strategy
1. Articulate them clearly (3 simple strategies instead of many)
2. Means of articulating them: use internal communication plans (e.g. town hall meeting, text), explain the importance of them, their tying to value prop.
3. Reinforce the strategy: communicate your vision to people on a constant basis: face-to-face weekly, give-and-take sessions.
3. Taking grant swings: Pixar acquisition case study
“I called Steve Jobs late one afternoon in late September, early October of 2005. I said, ‘Steve, I’ve got a crazy idea for you’… Steve loved crazy ideas,” Iger recalled.
When Steve Jobs wrote the list of 3 pros and 20 cons of the acquisition on the whiteboard, that crazy idea seemed to be crazier. Bob Iger even thought that the acquisition wasn’t going to happen but Jobs could see that the pros had greater weight to them.
In the end, Disney bought Pixar for more than $7 billion in 2006, which improved its standing, animation, and financial success.
Iger ultimately felt that it was a risk worth taking and it paid off.
4. Creating brand value
Brand is a relationship between a product and consumers.
Brand can change and still be relevant => be dynamic without abandoning the core brand principles.
5. Anticipate what consumers want
Stories are much more popular and have much more appeal when they best reflect the audience.
No data is enough to tell you what the marketplace wants. That decision needs to be based more on gut instinct => travel the world, interview the consumers as much as possible => a sense of what it is.
6. The importance of Risk-Taking
“Fail daring greatly” — Teddy Roosevelt
“And still feel good about it.”— Bob Iger
Don’t withdraw after failure:
After failing, go get back up and try again.
Require a fair amount of guts, a fair amount of patience, resilience.
Understand: How big the risk might pay off? How big the risk might happen if the risk doesn’t pan out?
7. Managing industry disruption
One foot in the present, one foot in the future => accept there’s far more change on the horizon => navigate your way through it or with it.
Evolving ESPN => acquire tech instead of waiting for being disrupted => disruption in a positive way: give rise to a more profitable business model.
8. Tenets for success
1. Foster curiosity.
2. Be authentic: be honest, straightforward, never fake anyway, never say anything you don’t mean.
3. Operate with integrity: set high standards.
4. Be fair and own your mistakes: live to tell the tale or get a second chance.
5. Be decisive: process all the gamifications.
6. Practice candor
Demonstrate what’s important, what’s not important to direct reports.
Encourage people to talk about bad news, to be accountable => create a safe environment for honesty, candor, and ease of communication.
7. Project optimism
Look into the future with the optimized clarity => 5 years? 10 years? Need to have a time, not just “in the future”.