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11.05.07

Innovation leaders

BusinessWeek’s ranking of the most innovative companies shows only minor changes at the very top. Among the top 10, Walt Disney made a huge step forward, from place 43 to 8. Maybe this is part of the reason for it:

For instance, the first thing Robert Iger did after being named Disney CEO in 2005 was to abolish the company’s central strategic-planning office, which had been run by a close ally of outgoing CEO Michael D. Eisner. The office’s head was seen by some insiders as a bottleneck to getting innovative ideas to the chief. Iger opted instead to keep a smaller central group while transferring many of the people on the team to the business units, where they could be closer to the action. Almost immediately, new ideas began bubbling up. In its video game operation, Disney expanded its spending on new game production and acquisitions of game studios to $350 million, up from $130 million. But Iger didn’t stop there. To show how serious he was about innovation, he personally got involved in the process of creating new games. When Disney’s Buena Vista Games unit began bringing its far-flung developers to its Burbank (Calif.) headquarters for half-day summits, Iger attended as often as he could. And he didn’t just observe from the back of the room. Developers pitched him ideas for games, and he gave them feedback. “You can’t imagine how energizing it is for developers to get some one-on-one time with the CEO,” says Graham Hopper, senior vice-president and general manager of Buena Vista Games. “They go back to wherever they’re from with a whole new sense of purpose.”

Also interesting: Ranking by industries.

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