Liudzius 1

Rebecca Liudzius
COM 700
21 October 2014
Leadership Paper

David Karp, CEO of Tumblr

David Karp dropped out of high school when he was 15. With the encouragement of his
parents, Karp decided to leave the prestigious Bronx High School of Science and instead
continue his engineering internship with Fred Seibert. (Wolfe). His parents realized that,
although Karps dream had always been to go to MIT, their son was different, and would be more
successful if he skipped the traditional schooling and instead continued his passion.
They were right.
Today, at 28 years old, David Karp is the CEO of Tumblr, a successful online
microblogging platform. His net worth exceeds $200 million, and Tumblr is valued at $800
million. (Bercovici 2)
After leaving his internship with Seibert, Karp went on to work as head of product at the
parenting website UrbanBaby, (3). That company was acquired in 2006, and Karp used the
money from selling his shares to start his own small development firm, Davidville. (3). This was
around the time he created Tumblr. He thought that online blogging was just too hard, and
constructed a site with a simple design. He showed it to Siebert, who passed it along to Bijan
Sabet of Spark Capital. (4)

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Sabet loved it. Karp, however, was not sure that he wanted to create a business around the
site. According to Sabet, Karp didnt want to be known as a business guy. (4). He simply had
made Tumblr as a way to make his own life easier. He was not passionate about building a
business.
This would be indicative of Karps leadership style as he became the eventual CEO of
Tumblr. Like Ben & Jerry, Karp did not go to business school. He did not even finish high
school. He invented the website with no intentions of making it into a company, and could never
have predicted the extent of its growth and popularity. He was just a web engineer with a great
idea. Karp has struggled with being a leader.
For the first several months, Tumblr had two employees, Karp and Marco Arment. In
April 2008, they hired Marc LaFountain to handle user support, (4). LaFountain lived in
Virginia and Tumblr was based in Manhattan, so Karps leadership skills, were not being put to
use, as he oversaw just one employee.
Karps first major leadership mistake came when he declared that they could run Tumblr
with four employees (the three previously mentioned plus Sabet) for the rest of his life. At the
time, both Facebook and Myspace had 1000 employees each. (4).
Karp overestimated himself and his team. As Tumblrs user base began to grow into
hundreds of thousands and then millions, the four person team could not keep up, thanks to
Karps hard headedness. According to Arment, they became overwhelmed as the site had
stability issues. (4).
Karp even admits he was a little too clever at times, (4). After that initial realization
that the four of them could not handle the site, they finally started hiring more people who knew

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what they were doing. One of those people was John Maloney, who as president handled the
business duties until April of 2012 when he left the company. Since then, Karp assumed those
duties. (5).
An important part of Karps leadership style comes from his introverted personality.
Since childhood, Karp was reserved, a tech nerd. At 15, working for Seibert, he spent his time
with adults instead of kids his own age. (Wolfe). And even when he was spending time with
those adults, he barely said a word for his first months, too shy to speak.
It is clear that many of the decisions that Karp makes about the site are influenced by his
shy personality. Something really interesting that I can attest to as someone familiar with Tumblr,
is that Tumblr is a place dominated by users similar to Karp. Teens that are too shy to interact
with peers their own age can express themselves freely on the website. The very nature of the
site makes it hard for someone to find out exactly who a blog belongs to. Users make friends
from around the country and the world because they have similar interests expressed
anonymously through the blogs.
This is undoubtedly due to the leadership of Karp. He created the website to make his
own life easier, and he has continued to make decisions based on what he and most of the users
would want.
For example, Karp has expressed a strong view on advertisements. In 2010, Karp stated,
web advertising really turns our stomachs and would never wind up on his network. (6).
Karps investors, however, have since stated that the companys sales people are now working
with advertisers. He has since restated his statement, claiming he meant that ads are effective,
but in a very limited way. This is a good example of his leadership. Yes, he is CEO, and yes, he is

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the face of the company. But some of his opinions and decisions he makes are not the most
lucrative for the company. This causes him to butt heads with advisors and investors who are
looking for profit.
This does not make Karp a bad CEO. He is constantly asking himself Am I being a good
enough leader for these guys? (5). He wants to make Tumblr a collaborative, positive
environment. While he is not the typical CEO, and certainly not the best one, Sabet has said that
Karp will be CEO as long as he wants to be. And thus far, Karp has stuck with it. Tumblr
employees acknowledge that the site simply would not be where it is today without him.
On May 20, 2013, Yahoo acquired Tumblr for $1.1 billion. Marissa Mayer, CEO of
Yahoo, stated that Tumblr will stay its own company with Karp remaining CEO. (Isidore). When
the acquisition was first rumored, there was outrage from Tumblr users. Many believed that the
site would be filled with ads from Yahoo. However, Karp maintained his opinion on ads
(effective, yet minimal), and has put at ease worried users in the way that only Karp can. Karp
has also stated that Mayer is awesome. (Wolfe). She plans to be very involved, but doesnt
want to screw up Tumblr, and attributes Karp with creating and building up a great business.
There have been two key challenges for Karp as CEO of Tumblr. One is his shy
personality. As CEO, he has to schmooze clients, dazzle analysts, rally the troops, (Bercovici
5), when he would rather stay at home in front of his computer. (Wolfe). The great thing about
this is the fact that he is so similar to so many of Tumblrs users. When he is sitting at home
online, he is experiencing what they experience, and that is what gives him the ability to be such
a great leader of this company. He understands the customer.

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The second challenge is his lack of business education. His story is similar to that of Ben
& Jerry in that neither saw their little business growing to what it was, and once it became such a
big hit, they realized that they needed help. In the case of Ben & Jerry, Ben Cohen stepped down
as CEO and the company was acquired by Unilever. For Tumblr, Karp has maintained his
position, but has accepted advisors, and now has the support of Yahoo and Marissa Mayer.

Robert Iger, CEO of Walt Disney Corporation

On November 21, 2013, Robert Iger, CEO and Chairman of The Walt Disney Company,
received the John Wooden Global Leadership Award. The annual award recognizes an
exceptional leader for his or her exemplary leadership style and service to the community. Iger
was chosen because he proved himself an innovator who helped shape Disney as a leader in the
industry. Since his installment as CEO of the company in 2005, Iger has established himself as
an effective leader for the company.
Winning the Wooden Leadership Award goes to show just how far Iger has come with the
company, because in 2005, the picture of Iger at Disney was much bleaker. There was
controversy surrounding his election after former CEO Michael Eisner stepped down. (Citrin 2)
Iger had long been seen not fit for the top position, and as nothing more than Eisners number
two.
Roy Disney and Stanley Gold, two former board members, opposed Iger as choice for
CEO. In a statement, the two said they found it incomprehensible that the board could not find
an external candidate, and that they must have gone with Iger because they could not find anyone

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else. The two felt that Disney needed a completely new leader. The felt so strongly that in May
of 2005, the two filed a lawsuit over the selection of Iger. (Boje 345).
In addition to Disney and Golds concerns, there was also a perception among Wall Street
analysts that Iger had been ineffective at turning around ABC, where he had spent much of his
career. (Sherman)
All critics and lawsuits aside, Disney ultimately won out, and Iger became CEO on
September 30, 2005. (Boje 347).
By the time he became CEO of Disney, Iger, a graduate of Ithica College, had years of
Disney experience under his belt. Born in 1951 in Oceanside, NY, he was the son of a
professor/businessman and a teaching assistant. After graduating college, Igers jobs included: a
TV news weatherman; various management positions with ABC sports; executive VP and then
COO of ABC; and president of Walt Disney International. Iger has spent almost his entire career
(aside from the weatherman gig) working with Disney (the company owns ABC). (Notable).
In order to transform himself from the easy choice candidate who was strongly opposed
by Roy Disney (nephew of Walt himself), to the man winning the Wooden Leadership Award,
Iger had to work diligently. One of the main ways in which he developed into a leader was by
becoming an innovator for Disney. The Financial Times credits Iger with rediscovering a
fondness for the sort of innovation so beloved by its founder. (Pine 36).
One of the key ways Iger became an innovator for Disney was his commitment to keep
up with the latest technology. It takes a great leader to embrace the ever-changing tech world.
When asked his opinion on Netflix, the streaming media giant, Iger stated that all new content
platforms are big opportunities for Disney. (Swisher). A different CEO may have forbidden

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Disney content from Netflix, out of fear not one would purchase the DVDs or go see the films in
the theater. In that same interview, Iger compared Netflix to when VHS tapes came out. At that
time, some in the media business feared that this would cut down on movie theater attendance
and ultimately take away from profits. But in Igers opinion, there were many others
[consumers] who may never have gone to the movies, and yet they bought the VHS or the DVD
copy. Forward thinkers make for great CEOs. Another way in which Iger worked to bring
Disney content to the most consumers possible: ABC was the first network to sell episodes on
iTunes and have them for free on their website. (Borden 4)
Iger simply wants the best user experience possible. He wants it to be easy for consumers
to watch Disney content. For instance: iCloud. This is a platform, like Netflix, that some fear will
become too powerful. According to Iger, however, the iCloud improves the user experience, and
therefore it works for Disney. Iger knows that theres no room anymore for mediocrity, and
failure is more evident that perhaps it ever was. (Swisher)
Iger has been recognized by others in the industry for his innovator status within Disney.
In 2008, Disney was voted #14 on the list of Most Innovative Companies. The reasoning behind
their selection is that Iger continues to mold Disney into the digital media innovator to watch
(Borden 4). Iger dedicated himself to adapting Disney to new technology. He also helped expand
the companys presence in several emerging markets. (Newswire)
At the ceremony where Iger received the Wooden Award, it was revealed that under
Igers leadership, Disney had record performance and shareholder value. In response to this, Iger
made a statement that is exemplary of a great leader. One person cant run a company as big as
ours. Its run by a team of people, and value is created by a very large team of people. A great

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CEO recognizes that it is not a one man show. Iger also talked about the value of integrity,
betting on creative people and instilling a sense of optimism among your team. (Newswire)
In 2012, the company also made Iger chairman of Disney, and despite his great successes
as the CEO thus far, this was also a controversial decision. According to Institutional
Shareholder Services Inc., Disneys board reversed a commitment to independent board
leadership. (Orden). They felt that giving Iger the title of both CEO and chairman did not
adhere to this commitment. The report also brought into question his salary, $34.1 million in
2011, stating that ISS finds pay for performance misaligned at Disney. (Orden).
Today, Iger is seen as a low-key, buttoned-down executive (Sherman), who is known
as a man who chooses his words and actions carefully, (Boje 347). Something that Iger finds
key is the importance of respecting Disneys heritage and legacy while innovating and adapting
changing markets. One of the ways in which Iger respected Disneys legacy was by creating a
partnership with Pixar, which reestablished the level of animation at Disney that rivals that of
Walt himself. (Pine 36)
Since Igers start as CEO, Disney has been recognized as One of Americas Most
Admired Companies, One of the Worlds Most Respected Companies, and One of the Best
Places to Launch a Career. (Newswire). As the face of the company, Iger is clearly part of the
reasons Disney was awarded these titles.
Iger had a challenging start as CEO of the Walt Disney Company. Many saw him as the
easy choice, and not fit for the job. But, through his key decisions as leader, including his
rededication to storytelling, transformative acquisitions of Pixar and Marvel, embrace of
technology, and strong team building skills (Citrin 3), he has evolved from a corporate
enigma, (Sherman), to an excellent leader of a fantastic company.

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References
Bercovici, J. (2013). David Karps $800 Million Art Project. (cover story). Forbes, 191(1), 5865.
Boje, D.M. (2006, Sept 11). From Wilda to Disney: Living Stories in Family and Organization
Research, Handbook of Narrative Inquiry: Mapping a Methodology. (330-353)
Borden, M. et al. (2008 Feb 14). The Worlds Most Innovative Companies. Fast Company
Magazine, 1-8.
Citrin, J.M. & Ogden, D. (2010, Nov). Succeeding at Succession. Harvard Business Review, 1-4.
Disney chairman and CEO Robert Iger receives 2013 john wooden Global Leadership Award.
(2013, Nov 22). PR Newswire Retrieved from
http://search.proquest.com/docview/14603810558?accountid=9676
Isidore, C. (20 May 2013). Yahoo buys Tumblr, Promises not to screw it up. CNN Money,
online. Accessed 3 October 2014.
http://www.notablebiographies.com/newsmakers2/2006-Ei-La/Iger-Bob.html
Orden, E. (2012, March 2). Disney Governance Panel Assailed Over Igers Dual Role. The Wall
Street Journal, B3.
Pine, J.B. & Gilmore, J.H. (2008). The Eight Principles of Strategic Authenticity. Stragetgy And
Leadership, 36(3), 35-40.
Sherman, J. (2005). Robert Iger. TelevisionWeek, 24(2), 44. Retrieved from
http://search.proquest.com/docview/203804970?accountid9676
Swisher, K. (2011, June 60. Proliferating Platforms. The Wall Street Journal, R2.
Wolfe, A. (2013, July 13-14). David Karp. The Wall Street Journal, C11.