Eisner into the Media Jungle

Disneyland Jungle Cruise Boat

Welcome Aboard

I wanted to follow-up on my post last week regarding Michael Eisner as a potential candidate for Chairman of the Tribune Co.  It might sound a little crazy, or the term we all used, even those who worked at Disneyland – “Mickey Mouse.”  I started at D-Land when Walt we still alive in 1966 and saw him many times touring around the park.  It was a very sad day for all when he died.

After Walt the company was really run by committee.  Whenever decisions needed to be made, the question was always, “what would Walt have done.”  Nostalgic perhaps, but not effective for very long.  This all changed when Eisner came aboard.  He made decisions, and many were very good, some not so, but it totality, he was good for Disney.  Most of all he plowed new ground and continually looked forward, not backwards – and it worked and it felt good.

Perhaps if that Eisner is the new man at the Tribune Co. we can hope to see that same spirit of change – the newspaper industry needs it.  As Walt created the mega theme parks and entertainment company, perhaps Eisner can be the new “Disney” that needs to come into the media field – it is time for a major revamp, or in the Disney term, “Imagineering” – creating something unique and wonderful that others could only dream of.  I’d buy a few shares of Tribune if Eisner comes aboard.  Talk about an adventure!  I can almost hear him say = “Welcome aboard ladies and gentlemen, I’m going to be your skipper and guide down these rivers of adventure”  That would be the “E” ticket ride I remember.

Mickey Mouse to Lead LA Times ?

Our long ordeal is nearly over!  It appears that a change is coming to the leadership of the Tribune Company, and it could not come soon enough.  Having endured the Zell years I can say that they were truly awful.  A once great company and key newspapers in Chicago and Los Angeles were turned into rubble.  The purchase of  Tribune, mainly for the real estate – both buildings and Wrigley Field, bought at the height of the valuations for papers, went terribly wrong.

The final resolution has been going on for an extended period and mainly pits groupings of creditors against one another for the best settlement.  The major creditors lead by Angelo, Gordon & Co. and Oaktree Capital Management as well as the ever present JP Morgan Chase are in the driving seat with $8.6 billion in claims.  Many of the smaller creditors are not in agreement with the proposed settlement and have been successful in holding things up.

The key news that came out today is that Michael Eisner, formerly head of Disney is among the group being interviewed as the Chairman of Tribune.  Zell is to be gone, long live the Zell.  Hard to think of Mickey Mouse now leading my dear Los Angeles Times.  Not since Ron Burkle and Jon Peters tried to buy it before Zell.  Wow, I’ll have a comb out and blow dry with my box of Cheerios please!

Eisner could be the leader of a very well traveled group of former senior leaders I won’t bore you with – cause they bore the heck out of me.  One interesting choice also mentioned is Michael Wolff, founder of Newser, the online quick news site and writer for Vanity Fair magazine.  Michael also is close to Rupert Murdoch, having written a biography on him – wouldn’t that make a nice pairing for the future?

I’ll wait here in my bubble for further breaking news on who will be the winner, and who will get tagged to lead Tribune.  This should be really interesting, especially to see what ideas they come up with to payoff the debt to all of the creditors who are still licking their lips in anticipation of a change at the top.

Feeling A Little Proud and Nostalgic

Years ago I served as an Infantry officer during the early 70′s. I had a number of duties as a junior officer, but the proudest was when I was selected to serve as an aide to a General officer. His name was William B. Caldwell III, and he was a one star general and was the assistant division commander of the 1st Armored Division.  In my brief term working for BG Caldwell I handled a number of issues, many very mundane.  One of the most enjoyable was helping his sone get ready for West Point.

His father later rose to the rank of LTG – three star general, and had a distinguished career.  He was the personification of everything you might imagine – a true officer and gentleman.  I’m so pleased that his son William B. Caldwell IV has turned out as well.  He is now a LTG and in charge of training the Afghan military and police personnel we hope to take over from U.S. forces in the near future.  From generation to generation we are in great hands.

Belated 55th Birthday Greetings to Disneyland

I have to admit that I missed the actual day in July, but then I’m a little late in remembering most birthdays now.  As you get older you work to forget all the extra candles on the cake.  It’s is hard to forget the Big Mouse in our backyard and one that I first saw when it opened in 1955.  I started to work there in 1966 and supported my way through college, and then grad school by working there.  I still have many close friends so many years later.

The single biggest thing I thank Disneyland for is that is where I met the LRHG who became my wife, and mother of my two buy DN1 and DN2.  It is now 37 years later, and still thankful for the day I first met her in the Inbetween – the employee cafeteria.

What a great place to work, with so many memories – sorry I missed your birthday!

Truth Checking Needed

There was a great post recently from Jon Orin on Tech Crunch entitled “If It’s On the Internet, It Must Be True.” I loved the content and the timing was fortuitous for me since I have been working on the subject area for a project for some clients.  Unnerved by the Shirley Sherrod story recently they were looking at ‘reputation management’ and how to ensure that this would not happen to them.

We’ve begun that process with all of the tools available on the web, but I am also focusing on the whole media ‘thing’ that we have gotten into with the decline of print media, and the rise of digital media.  The challenge is getting the facts right in an age when the news cycle is now the next 5 minutes.  I guess fact checking is now something of a misnomer in the rush to publish, and this by more and more ‘amateurs’ writing and blogging for new media.

I’m also taken by the circumstances also outlined in True Enough by Farhad Manjoo.  Subtitled “Learning to Live in a Post-Fact Society.”  That says it all.  One of his premises is that deeply held beliefs can supplant our perceptions of what is ‘real’ and what is not in the world around us.  The changes in our political system, as well as in the business world show many examples of how that is happening in our new media world.

Choose your sources wisely, and looking for conflicting view before making final decision.  Don’t let your cognitive biases take over.  Trust me it takes a lot of work with all of the information we are streaming in our new world daily lives.  It’s worth it, and my blood pressure is now down 15 points.

Old Media, Meet New Media!

Rupert Murdoch

Rupert Murdoch

On Friday I opened my Los Angeles Times to the Business section and was slapped in the face with two articles.  The first – News Corp. Plans National Newspaper for Tablet Computers and Cellphones. The second was Google Accuses California of Rigging Bidding Process for E-Mail Contract.  Wow!  Old Media meets New Media, barfight soom to follow.  What a real demonstration of how the media world is changing.

It appears that Rupert Murdoch of News Corp is planning to create a stand-alone digital newspaper to be aimed solely at iPads, other tablets yet to come, and mobile phones.  This will be a paid subscription service, but no pricing was announced. Drawing on resources from Murdoch’s Post and Dow Jones entities.  It would also have stand-alone staff to create the content for this new product.  The big question – is there a market for a stand alone subscription based product?  Especially one aimed at a younger audience that has been raised on “free.”  I don’t see either of my resident digital millenials subscribing.  Free is still the best price for a generation who really knows nothing else.

The other article on Google complaining about how the RFP was written by the State of California who is searching for a way to modernize their email system.. Having had multiple government contracts, I can testify to how hard government bureaucrats are to do with.   To expect that they would actually not do something directly in line with what they are already familiar with is dreaming.  They build their specs in the RFP directly in line with Microsoft’s Outlook.  Google offers a wholly different solution, and one that smaller and more local governments have just started to adopt.  Even the City of Los Angles has adopted the Google G-Mail system, but not without problems, many of which did not get worked out in the RFP process.

This really resonates with me as a Californian.  Recently we were told that the State could not revise a system to quickly change state workers payroll.  Having spent years and millions on trying to ‘update’ their system – all for naught.  Can’t do it.  The lesson – it’s time for some bold new solutions.  For the state – it’s time to lift their heads to the Clouds, and get it out of their rears.  Bold solutions are needed – now!

Weather Report – The Clouds Are Coming In!

In the Viewpoint section of Bloomberg / Businessweek in a post titled “The End of Outsourcing (As We Know It)” Arjun Sethi and Oliver Aries highlight the major changes taking place in outsourcing.  It seems that they are moving to the Clouds – cloud computing that is.  With companies still ruthlessly seeking new economies of scale to reduce costs that the cloud is where the trend is now heading.  First it was to India, and then other offshore locations where labor was cheap and local moguls build large infrastructures to handle the complex transactions at a fraction of the cost of in the U.S.

They follow the trends of the last several decades as we computerized everything, marched from mainframes to PC’s, and from internal staff to the extensive use of consultants – mainly the big firms.  Costs shifted, but the shift continues.

Now the trend is to cloud computing and this will impact both the large offshore firms, mainly in India, and the large consultancies like Accenture.  Who will benefit – surprise, it will be Google and Amazon who have both built the right kinds of infrastructure, systems and software to lead us down the next path.  Even Microsoft could be a winner if they can further develop their own version of software on demand, cloud style, and make it a wide spread winner.  They could certainly use one.

Off now to the closet to fetch my raincoat – I hear the clouds are coming my way.

No Wonder They Don’t Return My Calls

I was beginning to take it personally.  Truth be told, my kids don’t return my calls, or my wife’s for that matter.  We know that both of our boys are very busy, and always mult-tasking so talking on the phone was a bit of a chore to begin with.  When my wife, The Little Red Headed Girl (LRHG) asked boy #2 why he didn’t return her call – he stated , with total sincerity, “you didn’t ask a question!”  We always ask questions now, usually lot of them.

Two recent articles affirm what we have been feeling on both a personal and professional realm – people don’t like to talk on the phone, and prefer to email or text instead.  2nd truth be told, we email, but we don’t text.  I can since I have a DroidX, my wife can’t since she has a ‘plain’ phone, no extras, please.

Last week, Ian Shapira in The Washington Post in the article “Texting Generation Doesn’t Share Boomers’ Taste for Talk” hit the nail on the head.  Gen X & Y now see phones as intrusive and time wasters and prefer to use email and texting.  I first discovered this in 2007 when I headed a direct marketing company in Oakland.  Several staff members convinced me that email was more efficient, and it was in processing orders.  The let down came when problems arose and couldn’t be quickly solved with emails – then I had to get involved and make the calls.  Voice can quickly resolve issues, and also goes a long way in really building 2-way communications.

Today in an online article from ABC News by Ki Mae Heussner titled “Phone Fatigue: Voice Calls on the Decline,” she noted that cellular and landline minutes are declining.  People just aren’t making as many calls.  This has been a growing trend for some time and we are starting to see some research as well that this habit of younger adults may now be influencing the behavior of older adults.  It has for me, but my first reaction is still to reach for the phone, not the keyboard, when I want to talk with someone.

Next week I am working with a new client on exactly this issue – how to effectively blend channels of communication – a generational divide has caused some problems and I am going in to ‘help.’  Maybe my kids will call back – nah, I’ll just email them and save the headache.

Boondoggle Spending – In the Eye of the Beholder

CNN has a report out by Tom Cohen, on a report released by Republican leadership entitled “Summertime Blues.” The report cited 100 projects funded by the Recovery Act of 2009 – you remember the $862 billion economic stimulus bill.  The report, as you might imagine coming from the Republican side of the aisle, highlights what they feel are wastes of money.  I would have to agree –and some of the projects that they highlight appear to be of dubious purpose and little merit.  Unless, of course you are a choreographer who wants to design dance moves with ‘interactive dance choreography.’  I’m not a dance man, just a song guy who can’t carry a tune, so this report is right up my ally.

I tend to beat things to death, so armed with that insight, I will be brief.  Of course there is a lot of ‘funny stuff’ in here – it comes from Washington.  When haven’t we seen a lot of weird and funny expenditures from our leaders in D.C.  I’m not here to bury these guys, and I’d like to turn the attention closer to home.  What is happening in your company and industry right now – where is the boondoggle money going there?  It exists everywhere – just with more zeros behind them when it comes from Washington.

My experience in the business world shows that there are many great new projects that come from company leadership, or even worse, ownership.  Their pet projects often suck up significant resources, and prove fruitless.  A few actually work, very few.

My clients today are being confronted with a whole set of new challenges coming from the adoption of new selling and marketing strategies driven by digital.  My advice is to really do your homework.  Step back and get a better understanding of your clients, and then move forward.  Digital is an outstanding investment – if done right.  Take your time and invest wisely.  Call in the experts to help you create a good plan, that will be your best investment in time and money.

Situation Abnormal – All Messed Up!

Two great, and very timely, articles out recently that I wanted to comment on.  They hit very close to home to many of my clients who are trying to forge new strategies for the current economic downturn.  Many feel that we are starting to see some up ticks and bright spots in both consumer and commercial business.  Other still have their sad hats on.  Today, the word is mostly keep you sad hats on – it’s looks like a long slog back.

In Business Week, The New Abnormal, a cover story by Devin Leonard – we get a picture of America as a place where we are broke and depressed.  We are also still drinking our lattes and buying iPads and iPhones like hot bread at a bakery.  What gives?

What gives is that our current economic downturn is unlike any other I have experienced over the last 40 years.  We have gotten hooked on our new ‘tools’ (iPhones and such) and are not likely to give them up; in fact, we need to have the newest and fastest.  At the same time many are cutting back and scaling down on items like toothpaste, shampoo and other sundries that make us feel like we are making ‘sacrifices.’  As Leonard states it – “There it is: gloom, muted optimism, and wild abandon.”  I see it in my friends and business associates, and I see it in myself.

The problem is that our economy is based on consumption, and one of the places we are cutting back is our overall spending rate.  In the past we were exhorted to go shopping to help the economy – that’s not working now, and individuals and businesses alike are not spending –they are actually saving.  Good for them in the long term, but bad for us in the short term.

In The New Times, The Growth Imperative by columnist David Brooks – we have another journalistic home run.  Brooks outlines many of the same facts.  “Consumers are overindebted, and it will take years of curtailed spending before households are back on a sustainable path.  Federal and state governments also will have to pull back.  Labor markets were ill before the recession and are worse now.”  As I said earlier – nothing like I’ve seen before.  As an ad man my job was to get people spending – not so easy now.

Brooks highlights some approaches that could lead us out of things – from both the left and the right.  A number of great arguments have been offered on both sides.  What I focused on is that there is no easy way out.  As a people we tend to look for the easy way, one we can sell to the most people.  The problem is that people aren’t buying now – they are sad, angry, and yes, schizophrenic.  When this happens people do nothing – and that is what we have now, and will until the time we get our courage back.  A turn around is not just around the corner.  The long slog is on – plan to use it to your benefit.  When it rains sell raincoats.

I’m not a pessimistic guy, but I have learned to read the ‘tea leaves.’  Plan now for the long term solutions that will really have an impact on the future of your business and your career.  Build your infrastructure and get ready for good times that will inevitably come down the road.  Housing has been a strong engine where I live and news just came out the a large home builder was buying land – and planned to build 4 years from now.  Now that’s a smart move.  Check out both of the articles I quoted – both have great insights that you can use today to build your plans for tomorrow.