Media Curmudgeon

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October 23, 2007

"Call Some Place Paradise, Kiss It Goodbye"

Guest blogger Bill Grimes writes:

"I think long-time corporate managers are mostly (you were an exception, but you were always iconoclastic and not too "long-time" at CBS) incapable of thinking differently about subordinates, customers, competitors, or any constituent that they have affiliated with over an extended number of years. Thus, I am not surprised about Bewkes' decision (as you describe) in your "Bewkes's Choice, Not Falco's" October 22 post.

This is a key reason why companies are sold (to other companies) or that they are forced by shareholders to break up into smaller operating businesses which are either easier to manage with legacy managers or to replace them with new managers. Time Warner's businesses should certainly be separated (sold) into three or four separate companies with new managers for each.

The only exceptions to bureaucratic, idea-less, risk-adverse managers I have observed in the media business are at companies where a founder with a sound mind remains in control. Murdoch, of course is the best and most successful example. Turner was great too. Both make or made all key decisions and were unafraid of taking big risks--mostly on investments in new products and acquisitions. Redstone had a bit of it although he is now senile and into dementia--like Steinbrenner, who represented another example of ownership's autocratic managerial style delivering big results for the shareholders, employees, and customers for a while.

The proof of this is that large companies with management generations removed from the founder never develop new businesses and products. In contrast, companies from Google to CNN to Sarnoff's NBC, innovation and value creation emanates from focused founders with their own money and reputation at risk.

Bewkes, Parsons, Levin, et al have no money at risk and rose by being promoted internally by the then-Bewkeses of their day. As Don Henley sang (about something different, but very great, like Warner Communications once was under Steve Ross, its founder): "Call someplace Paradise, (i.e; in this case turn it over to bureaucratic subordinates) Kiss it Goodbye".

Posted by Charles Warner at October 23, 2007 03:56 PM

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Media Curmudgeon at October 25, 2007 01:15 PM writes:

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