Why I Believe Josh D’Amaro is Best Equipped to Be Disney's Next CEO

While many Disney eyes were on the start of Disneyland’s 70th anniversary celebration, Disney Experiences head Josh D’Amaro was in New York City. There, he participated in a Question & Answer session at the MoffettNathanson Media, Internet & Communications Conference. These investor focused sessions can be tricky for Disney executives to navigate, but D’Amaro handled it like a pro, and in my mind, cemented him as my pick for who should be Disney’s next CEO.

In my opinion, these types of events are some of the hardest environments for Disney leaders to navigate. Bob Chapek and Christine McCarthy famously encountered difficulties that ended up haunting them for the rest of their Disney careers. The root of the challenge is that you have to speak to multiple audiences who in many ways have very different languages when talking about Disney’s business.  

Ostensenibly, these events are for the investment community and ways for Disney to share their case for why the business is strong and why the stock should be valued higher than it currently is. However, due to SEC regulations, these events are streamed to all, including Disney fans who use a whole other language when talking about Disney success. Bob Chapek famously referred to high annual pass visitation relative to day guest visits as “unfavorable attendance mix." He obviously meant that in terms of finance as annual pass visits generate less revenue than day guests. Understandably, Disney fans heard this as being undesirable, even though this is not what he meant.

At the presentation, D’Amaro gave a masterclass in how to address the investment community, while also being aware that guests of all types are listening in. He acknowledged his responsibility to shareholders to keep operations costs in check, while also committing to delivering a guest experience that offers value. When asked about the role Disney Experiences play into the larger Disney business, D’Amaro offered the business case, but he did this through the lens of Walt Disney and Disney fans.

[In] the early 1950s as Walt was just starting to think about Disneyland Park... He drew a diagram that had stories and content in the middle, which is still core to who we are today.

 And outside of that circle, he started to draw all the businesses, all the additional touch points that we can engage with consumers in terms of those stories. Merchandise, theme parks, music, television, et cetera. And that idea, that ecosystem, the flywheel that you call it is more powerful today than it was even back in the 50s.

 

So when the studios group has a movie that is successful and powerful, our ability to take that into the market that we're operating in and pull people into the story and in fact extend the story, this again, creates stickiness to the brand and it makes that flywheel spin even faster. Of course, not only do we create great experiences that our fans respond to very well, but the model works incredibly well for the Walt Disney Company.

I have often lamented the outsized influence communication skills play in the perception of strong Disney leadership. Just because someone is personable, carries themselves well, and is eloquent, does not mean that they make the right decisions for the future of The Walt Disney Company. That being said, more than any other company, The Walt Disney Company’s CEO is a public figure. Because of this, it is important that its next leader can speak to many constituencies such as investors, media, guests, employees and cast members. In today’s world, losing the trust of any of these groups, and change the narrative and can change the perception of the other groups quickly.  One need just look at the Save Disney campaign or the fall of Bob Chapek for examples of this. A bad reputation amongst the fan community can result in a negative perception of investors, the media, and the general public.

That Josh D’Amaro is able to address all of these groups not only showcases his pr skills, but I would also like to take the optimistic view that it shows that he believes in the basic premise of The Walt Disney Company. Which is that making great things will result in great business results. As Walt would say in his grammatically confusing way, "quality will out." It is hard to put different mirages to different groups, but his ease in speaking about Disney’s successes implies to me that he not only has Disney in his head, but also his heart.

This doesn’t mean that I wouldn’t have suggestions for D’Amaro or that I have agreed with every decision. But if you compare how D’Amaro carried himself to others that are vying for the job, in my mind, there is no question about who the next Disney CEO should be. For if he keeps up the concepts that have always been front and center every time Disney has had success, there will be a bright future for D’Amaro, Disney fans, and The Walt Disney Company.

Note: An audio version of this article can be heard on the latest episode of the Laughing Place “On Balance" Podcast.