Oprah Winfrey – The Story of an Entrepreneur
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OPRAH – THE ENTREPRENUER contd...The fact that
‘O'was an instant success proved Oprah's decision right. Commenting on the
magazine's success, Oprah said, “I am most proud of the magazine, because I
did not know what I was doing.” Media reports claimed that ‘O,'which was
mostly developed by Oprah, reflected her ability to balance practicality and
preaching. Analysts believed that Oprah knew that such balance would sell -
and it did. According to them this was the same strategy that made her talk
shows such a success. Oprah maintained a balance between the issues or
persons she chose for her show. For example, if one day she discussed the
entertainment industry with a celebrity, the very next day she examined a
grave issue such as the problems of women in Afghanistan.
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Reportedly Oprah followed the same ‘balanced'approach
with her finances also. Though she did not track her costs closely, she
was aware of their magnitude and was sure to draw the strings when
necessary. For instance, when Oprah found that the production costs of
her show amounted to $50 million annually (which was double the
expenditure incurred by other day-time talk shows), she called up Doug
Pattison, Harpo's CFO, and said “That is okay, but that is also enough.
I think we can keep it at $50 million.” |
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As far as her employees were concerned, Oprah paid them
well and expected quality for money. Reportedly, she did not care about
ratings as long as her shows and magazines achieved their objectives.
Commenting on this, she said, “Ratings go down when we do an Oprah's Book
Club show, but that does not matter. We are getting people to read.” Thus,
Oprah did not pressure her employees to achieve ratings; instead she
emphasized creativity and quality. According to her employees, Oprah took
care that her staff did not measure its success on the basis of media
reports. She showered praises on her staff once a project was completed; but
when that project was recognized by the world and won ratings or awards, her
staff received no special treatment from her. In words of Kate Forte,
President, Harpo Films “But if it wins big ratings or awards, the boss is
mum. It is her reminder that we should not do anything for the external
reward.”
Though there was great demand for Harpo produced movies and television
films, Oprah did not bend her rules to exploit that demand. According to
Iger, though Disney wanted Harpo to produce more films, Oprah's standards
and rules limited Harpo's output to one film per year. Commenting on this,
Iger said, “Just because there is a buyer does not mean she is a seller.”
Oprah's business decisions were based largely on trust (she referred to this
as taking ‘leaps of faith'). It was reported that she asked only one
question before she made a decision – ‘Can I trust you?'Commenting on this,
Nancy Petersman, Executive Vice President, Allen & Co (Investment Banking
Firm), said “It is all about character with Oprah. We investment bankers do
the same sort of thing – try to figure out what people are made of – but
with Oprah, it is like someone is looking into your soul.”
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OPRAH – SERVING THE PEOPLE
THE OTHER SIDE OF OPRAH?
THE SHOW GOES ON
QUESTIONS FOR DISCUSSION
EXHIBIT I AWARDS WON BY OPRAH
EXHIBIT II FAVORITE TV PERSONALITIES – RANKS
ADDITIONAL READINGS & REFERENCES
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