TheFiresideCEO 231chored on four guiding lights. First and foremost is the goal of in-
creasing shareholder wealth while simultaneously discharging re-
sponsibility to Disney’s employees and its communities in an ethical
manner. The second goal is “to increase productivity through supe-
rior work,” emphasizing that setting “the highest standards drives the
highest results.” The third goal is to “concentrate on continuing to
lead creatively,” and the fourth is a “strategic direction of quality and
innovation.”
These anchoring qualities are necessary to exploit the opportu-
nities and confront the challenges posed by constant change.
“Change is the engine of growth and the muse of creativity,” Eisner
says. It’s what makes things happen in life and at Disney. Eisner
addresses technological change with special lucidity. Soothsayers
regularly announce the edge of technology as spelling doom for cer-
tain industries, such as entertainment, in the face of advances such
as 500-channel television capability.
Eisner loves it, likening such predictions to those Walt faced
when TV first emerged and forecasters foretold the death of film.
Far from shutting down any aspects of Disney’s business, TV gave
Disney a new outlet for its products. For those who are creative and
driven, such technological and other changes mean opportunity, not
obsolescence.
Tough times must be dealt with when they come, of course, but
it is far better to deal with them before they come—in robust eco-
nomic times. Eisner thinks that way, and Disney’s business is orga-
nized that way. Although Eisner no longer likes the term “recession-
resistant” as a description of Disney, the account he gives of its
ability and strategy to make headway in tough economic times makes
the label apt.
The roaring economic climate of the 1980s led many companies
(and individuals) down shortsighted and treacherous paths, but not
Disney. It stayed clear of overpaying for businesses; didn’t acquire
what it didn’t need; kept its balance sheet clean, strong, and finan-
cially conservative; grew internally; preserved its franchise by nur-
turing its core values; and avoided teaming up with others who could
detract from the Disney brand.
Opportunities present themselves, of course, and even a conser-
vative company must be ready to exploit them. The fall of commu-
nism opened enormous new markets. Disney penetrated them
through Euro Disney and through television programming in former
Soviet bloc countries.