Team 3
BUAD 437
03/23/15
Case Analysis: The Weather Company
1. What are the challenges facing The Weather Company? In responding to this
question you should complete a force-field analysis and a stakeholder analysis.
The major challenge facing The Weather Company and CEO David Kenny is balancing
the success of the TV broadcast division with the demands for expansion into new digital media.
Through the lens of Lewin’s Force Field Analysis model, the TV broadcast division could be a
major resisting force against change. The TV division still makes up over 50% of Weather Co.’s
revenue and Kenny is proud of luring talent from prestigious shows like Good Morning America
to work in the division. In early 2013, Weather Co had established an edge in Web and mobile
app development, with two-thirds of the 81 million unique visitors to the Web and 40% of the 98
million on mobile apps, but key strategic partnerships between Google and the National Oceanic
and Atmospheric Administration, as well as Monsanto’s acquisition of Climate Corporation
represent giant corporations expanding into the industry. This competitive pressure is a force for
change in The Weather Company, but the organization also needs to consider its culture and
vision.
In addition to facing strong external demands, CEO David Kenny must also focus
internally on Weather Co.’s employees. In addition to balancing a diverse employee base of
scientists, TV producers, software developers and advertising salesmen, Kenny must deal with
an entire third of the company being completely new employees, as well as a strong core of longstanding veterans who have been with the company over ten years. The success of the TV
channel in Atlanta means that many corporate assumptions like salary standards and the
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orientation process are still based on it. This is both a force for change and against it, as many
employees on the digital side perceived these assumptions as politics and bureaucracy. By
expanding into new markets and Kenny replacing nearly the entire executive team, The Weather
Company must find a way to adapt while building a comprehensive vision and set of values that
employees from all divisions can buy into.
The second key challenge for Weather Co moving forward is going global while
remaining connected locally. The organization’s international group in England developed its
own three-year plan and the executive in charge threatened to create his own products if he was
not given support from Weather Co.’s U.S. based product divisions. Kenny and other executives
understand that weather products are inherently global, but figuring out what to sell and how is
the challenge. In order to be successful going forward, Kenny must weigh the competing
interests of various stakeholders like his new executive team, the England office, his board of
directors, as well as customers and their evolving preferences.
2. How effective was David Kenny in utilizing Kanter’s seven basic skills managers use
to lead change. Provide specific examples.
As the CEO of The Weather Company, David Kenny was an instrumental figure who
continued to guide the development of The Weather Co. from a traditional television network to
an organization with reach into various media platforms. Kenny did this all the while
maintaining the mission of The Weather Co., which was to provide accurate weather forecasts to
private consumers and government/business entities. With regard to the seven skills present in
“change masters” as detailed by Rosabeth Kanter, Kenny was incredibly effective in utilizing
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these skills and employing them to his (and the company’s) advantage throughout the early years
of his leadership.
During the early stages of his tenure as CEO, Kenny was faced with a number of
different challenges, among them rebranding the image of The Weather Co. in light of criticism
from consumers who had complained that the company had been in the process of
“commercializing” the weather. To combat this pushback, Kenny decided that the organization
needed to reevaluate the core product that they provided--weather forecasts--and how they can
improve accuracy for the benefit of those who consumed them. One way in which Kenny went
about this was by acquiring two companies, Weather Central and Weather Underground, and
integrating their assets within the current Weather Co. structure to better serve the customer.
When much of the criticism of weather commercialization came from its acquisition of Weather
Underground, Kenny was sensitive to this and proposed a strategic move. Instead of completely
changing the image of Weather Underground as an organization focused on community
forecasting, Kenny made the decision to have Weather Underground remain as an independent
organization. By doing this, Kenny placed great value on local forecasting data and its
importance in providing the most accurate forecasts possible.
Under Kenny’s’ leadership at the helm, The Weather Co. continued to attract and
maintain viewers through innovative ideas that went far beyond standard television forecasts.
Using what Kanter described as “kaleidoscope thinking,” Kenny empowered his employees-particularly those in digital content and programming--to think of creative ways in which
consumers would be drawn to The Weather Channel and its mobile platform. For example,
David Clark, a former Viacom executive, had been tasked with updating the television platform
to include content that adapted to current trends and was modern and engaging for the viewer.
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Kenny and Clark redefined the experience of watching the weather on television through shows
that illustrated unique weather phenomenon and connected viewers with the effects of weather in
their daily lives with online videos and picture galleries. While ideas such as these clearly
represented a shift from traditional methods of providing weather information to consumers,
Kenny’s ability to think outside of the box allowed The Weather Co. to enact positive
organizational change that resulted in increased viewership across all media platforms.
3. What are the results as of January 2014? Are the changes complete and sustainable
or not? Going forward what should Kenny be most concerned about and what
should be emphasize now?
As of January 2014 The Weather Company has grown and changed dramatically. They
went from being a television broadcast focused company to a multi-platform weather and
entertainment service. They have expanded into desktop and mobile internet venues, mobile
applications, and revamped their television programming. In television they changed from just
delivering local and national weather information to providing programs related to weather but
entertaining to lay viewers. In the internet and social media realm page views were up 100%,
video starts up 800%, and shares up 900% with popular posts getting around 20,000 shares on
Facebook (up from 500 the year before). Their information was downloaded to personal devices
over 100 million times and were consistently among the top digital properties.
The changes they were trying to make can be considered complete but that doesn’t mean
they should stop. It is important for them to continue what they are doing and evolving for the
ever-changing times. New technology will never stop being developed and new trends arise
every day so The Weather Company needs to stay on top of it and look out for improvements
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and ways to get ahead continuously. If they stay vigilant these changes will most likely prove
sustainable. It does not seem like any of the changes are really in danger of not succeeding as
long as funding continues.
Kenny should be most concerned with people and technology. Technology in the ways
previously described, keeping up with internet trends and any new devices. These methods are
what will keep The Weather Company a major player in general television and internet traffic
and allow them to grow as the times continue to change. Kenny should presently emphasize the
people aspect of the company, making sure they stay contented and are not lured to other
companies. The meteorologist were happy with the new focus on science, many of them joined
the company out of passion for the weather and should be rewarded for their enthusiasm. The
computer or digital employees also came to this job for many different reasons and there are
many other opportunities for their skills. It is especially important to keep them motivated and
interested in their work so they do not leave, introducing a awards program for new ideas and
innovations could be very rewarding.
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