The hidden geometry inside Disney’s most famous memo.
Behind the curtain of Disney’s wholesome magic, conflicts often rage.
In 1991, head of Walt Disney Studios, Jeffrey Katzenberg, believed that despite their #1 box office position, the studio was headed for ruin. But not everyone agreed. So Jeffrey wrote a 28 page memo challenging Disney leadership to change course before it was too late.
A solution no one wants to hear.
Every piece of communication has an idea to sell. Sometimes the idea is obvious. Other times, the idea is a little more hidden. When Jeffrey distributed his memo to 13 Disney leaders, the idea he was selling was explicitly clear. Under a header titled, “The Solution” he wrote…
“Because the world has changed, we need to get back to basics.”
Brutal clarity. He then sets the stage for what to expect in the rest of the memo…
“There will not be any revolutionary new ideas presented in the following pages. Rather, I want to offer a restatement of our underlying philosophy.”
How to use geometry to shape an argument.
When I dissected the memo, I was thrilled to find a structure pioneered by one of my heroes. Jeffrey thoughts were built on a framework known as the Pyramid Principle, or Minto pyramid (developed by the amazing Barbara Minto, McKinsey’s first female consultant).
During that time at Disney, if you wanted executive buy-in on your project, using the Minto pyramid to structure your idea offered the best chance.
The Minto pyramid is fairly simple. You use the acronym S.C.Q.A. to build your argument using four elements: situation, complication, question, and answer.
Exactly so, Jeffrey’s memo begins with a view of the situation…
“Our studio did the least badly in a year of steady decline for all of Hollywood. A year that was capped by a disastrous Christmas for everyone. Although we led at the box office in 1990, our bottom line profits were the lowest in three years.”
A proper overview of the situation should be true for everyone. Only unarguable facts. The next element, the complication, describes what has changed to make the situation urgent and worth addressing.
“The economy is in a recession that will be quite devastating to our industry. Additionally, we have slowly drifted away from our original vision of how to run our movie business.”
Next comes the question, sometimes explicit but often implied. In Jeffrey’s memo, it’s implied. He’s asking: how Disney will maintain its status as the number one studio and survive the economic storm?
“There are ominous signs in stagnation which leads to decline. This is why, even if there were no recession, I hope that I would be feeling as I do and would still be writing this memo.”
The question is followed by the answer. This is what Jeffrey believes is the solution to the situation and is ultimately the idea that he is trying to sell…
“We need to get back to basics. What I want to offer is a restatement of our underlying philosophy, adapted to today’s changing times.”
With the help of S.C.Q.A., Jeffrey is able to quickly arrive at his answer. It’s a bottom-line-up-front approach to communication. That leaves the rest of his memo for the supporting arguments and supporting facts.
Jeffrey has 16 supporting arguments for why Disney needs to get back to the basics. As I explored these points, I found they fell cleanly into three categories (creative, operational, and strategic) to create an invisible pyramid structure that is the hallmark of Barbara’s framework.
👉 I’ve created a visual of Jeffrey’s memo structure that you can see here.
Clear writing. Messy endings.
Ultimately, Jeffrey’s memo was leaked to the press where it sparked backlash and controversy. Michael Eisner, CEO of Walt Disney at the time, was furious. He believed the leak was intentional. This magnified the growing tension grew between Jeffrey and Eisner until, years later, Jeffrey was fired.
Despite the outcome, Jeffrey’s memo shows us how structured writing can lead to clarity. Despite being 28 pages long, the diagnosis and prescribed solution are extremely clear.
Pioneer of the Pyramid Principle, Barbara, believed that clear thinking and clear writing go hand-in-hand. Clearly presenting the problem and our solution with evidence gives the gift of clarity to our listeners. And when we do so, our listeners often give the change and action we seek in return.
Want to read Jeffrey’s full memo? You can find it here.
Note: Quotes have been edited to improve readability while preserving meaning and voice.
