Walt Disney Research Paper

The Walt Disney Company is known throughout the world for its commitment to customer service. This is most apparent in Disney's theme parks in Florida, California, Tokyo, Paris, and Hong Kong. Disney's commitment to customer service began with the company's founder, Walt Disney. His leadership and vision have made Disney the market leader in terms of customer service. "His willingness to take risks and blaze new trails, coupled with an innate understanding of what his customers wanted, resulted in the legendary business practices for which Disney destinations are famous." (Disney Institute, 2007). This paper will examine Disney's customer service model with particular emphasis on leadership and communication. Walt and Roy Disney founded
the Walt Disney Company began in the 1923 as a simple movie studio producing animated features. In 1934, Walt Disney decided to produce a full length animated feature, Snow White and the Seven Dwarfs. At the time, many believed a full length "cartoon" could not hold an audience's attention; however, Walt Disney proceeded with his vision. In 1937, the film was completed and became the highest grossing film of all time. This success was followed by other animated hits such as Pinocchio, Dumbo, and Bambi. In 1950, Disney produced its first live action film, Treasure Island, and a television Christmas special. Walt Disney saw the potential of television and began to produce television series' including Davy Crocket and The Mickey Mouse Club. Walt Disney was constantly looking for other entertainment mountains to climb. "One area that intrigued him was amusement parks. As a father, he had taken his two young daughters to zoos, carnivals, and parks, but he always ended up sitting on a bench as they rode the merry-go-round and had all the fun. He felt that there should be a place where parents and children could have a good time together. This was the genesis of Disneyland. After several years of planning and construction, the new park opened July 17, 1955." (The Walt Disney Company, 2007). Disneyland in Anaheim, California put visitors inside the television and movie screen. Walt Disney believed that the theme park would never be truly completed "as long as there is imagination left in the world." (The Walt Disney Company, 2007). Walt Disney's next vision was for a large, ever expanding world where people could come to experience his vision. The seeds for this vision were begun with the purchase of 28,000 acres in Florida. Walt Disney died prior to seeing the completion of this project; however, his brother, Roy Disney, completed the theme park naming it Walt Disney World. The last of Walt Disney's visions was realized with the completion of EPCOT. Roy Disney died before he could see the completion of his brother's last vision for the resort. Walt and Roy Disney's deaths did not end their overall vision for the expansion of the Disney theme parks. With Walt's prior leadership and vision in mind, Disney theme parks continued to expand with eventual openings in other countries. Additionally, the Disney theme parks in the United States continued to expand. In Walt Disney World, two theme parks were opened, MGM Studios and Animal Kingdom. In Disneyland, California Adventure was opened. Even today, leaders of the Walt Disney Company look for ways to expand the theme parks using Walt Disney's vision as a guide. In 1986, the Disney Institute was opened. It was formed to provide professional development programs to help business leaders gain insight to best business practices as demonstrated by the Disney model. The institute provides leaders with direct insight as to why the Disney model is so successful. This includes in-depth behind the scene looks at how the Disney theme parks operate. Clients of the Disney institute include businesses across the world such as Blue Cross and Blue Shield, Delta Airlines, Duke University, General Motors, IBM, the U.S. Army, and the U.S. Department of Education. The program includes staying at Disney resorts and becoming fully immersed in the Disney experience. It goes beyond the classroom to see how leaders across the organization work, and what makes Disney successful. The background of the Disney Company is important in how it shows what the leadership of one man can accomplish.
Under Walt Disney's leadership, the company became one of the premier businesses in the world. Not only was Walt Disney a leader in the marketplace, he was also a strong internal leader. Walt Disney led by example. His visions inspired those who worked for him. His leadership was so far reaching that even after his death; employees of the Walt Disney Company are inspired by his leadership. Walt Disney was a leader in that he was a great communicator. He was, and in many senses still is, the face of the company. He would be on Disney's television broadcasts to introduce the movies being shown. He was the one introducing his new vision for theme parks. Walt Disney was also a great communicator within the company. He was able to convey his visions to everyone. He was able to "sell" his visions and get everyone on board. The most important aspect is how Walt Disney's leadership made Disney the leader in customer
service. Leaders in Disney theme parks are encouraged to think outside of the box to emphasize Disney's commitment to customer service. Examples of this are seen thought the organization when brining new employees on board.
A manager at one of Walt Disney World's premium restaurants has a unique training approach for new dishwashers. When a new Cast member reports to work on the first day, the manager escorts him or her into the restaurant. There, a table has been set with fine linen and china just as it would be set for Disney Guests. In a recent situation, the manager and a new cast member were discussing the restaurant's operation, when the new dishwasher noticed that a glass had lipstick stains, the dishes had crusts of food on the rims, and the silverware was spotted. When the manager asked why she seemed distracted, she pointed out that the dishes hadn't been cleaned thoroughly. "Imagine," said the manager, "that you are a guest who will spend $100 for that meal." (Taylor & Wheatley-Lovoy, 1998, pp. 22)
This example indicates how the leaders at Disney think outside of the box; however, it demonstrates how the leaders the leaders encourage the Cast Members to connect emotionally with Guests (Taylor & Wheatley-Lovoy, 1998, pp. 22). This type of leadership helps the Cast Members see the larger customer service picture. In this example, the Cast Member is able to recognize how these small things can affect the full Disney experience. It also asks the Cast Member to take ownership of every aspect of customer service. The leader is relating the company's culture of leadership from not just the top down, but also from the bottom up. The Cast Members learn that they play an integral part in the full Disney experience. They are encouraged to come to their managers when a potential problem is seen. The end result is that the Cast Members are involved in and passionate about day-to-day operations of the park. At Disney, the Cast Members are encouraged to constantly think of the customer first. They are given the tools to provide good customer service. This means that the wait staff at many of Disney's restaurant can refund Guest checks without having to go to management first. Even beyond this, a Cast Member working at on of the resort's many retail outlets can step in to help a parent with a crying child by giving the child a small toy or pin off of the stores shelves without having to get management approval first. This kind of commitment by Disney's leaders to customer service allows the Cast Members to act proactively on behalf of the resorts Guests. Cast Members are also asked to go beyond their specific duties while they are anywhere in the park. This goes for Cast Members who work in restaurants up to the Disney Imagineers. The culture of Disney is that anyone who works at the theme parks should stop to help Guests as required. If a Cast Member sees that a Guest is unsure of where they are, the Cast Members are encouraged to stop and help the Guests. This may include the dishwasher from the example above stopping to help a lost Guest while that Cast Member is on his or her way to their restaurant. This aspect of Disney's customer service comes from the Cast Member's ownership of the entire Guest experience. This sense of ownership goes beyond the Cast Members. Disney executives will pick-up trash in the park if they notice it while walking by. Disney's ability to create a sense of empowerment and responsibility amongst its Cast Members and executives begins long before that individual is hired. Disney has a focus and commitment to finding, and keeping, good employees. This begins in the selection of their employees.
Every employee (Cast Member) is also a Casting Scout. Each employee has cards they hand out to people they think would like working at Disneyland or Disney World. The card has the information of the Casting Department. People who walk in interested first are sent to watch a video. About 10 percent of video watchers normally leave. (Sparks, 2004, pp. C10)
Disney is a strong believer in the idea that its employees know what individuals would best make Disney employees. They believe in selecting the right candidates from the start, which is why they show the video regarding the requirements to be a Disney employee up front. The potential Cast members learn everything that expected of them up front, down to requirements of having their hair cut. Training of Cast Members is also crucial. Disney believes in going beyond simply showing employees how to do something. They believe that they should explain why something is done. This is shown in the case of the dishwasher in the example above. The why is what help the Cast Members make a connection with the job they are performing. The why goes beyond the immediate. It goes as deep as explaing Walt Disney's vision and the history of the company. This helps the employee see their roll in the larger context of the entire organization. This allows the Cast Member to connect themselves to the legacy of Walt Disney. This sense of community creates more dedicated employees. In order to continually answer the whys in a dynamic company like Disney, there needs to be a commitment to communication with employees. This includes newsletters and bulletin boards. These tools are used beyond the typical birthday and anniversary announcements of most organizations. They are used as tools to continually update the Cast Members as to what is happening across the organization. For example, the newsletter may announce that an attraction is being closed and the reason for the closure. This not only updates the Cast Member, but it allows the Cast Member to communicate with Guests. If a Guest approaches a Cast Member regarding a closed attraction, the Cast Member can inform the Guest as to why the attraction is closed, when it will be reopened, and what changes the Guest can expect once the attraction is reopened. The best way for Disney to retain employees is through showing they care. They do this by going beyond rewarding Cast Members for a good job. One example is the stores Disney has set-up for employees. Cast Members can shop at these stores for items before heading home for the day. This saves the Cast Member an extra trip after their workday. Ultimately, Disney's commitment to customer service begins with its front-line employees. Since Disney knows that they have hired employees that are dedicated to the Disney vision, Disney focuses on promoting employees internally. Disney knows that they are able to get great leaders from within their ranks due to their training program. Disney's leadership structure is more of an inverted type leadership structure. The front-line employees are expected to think independently and take ownership. In fact, as seen before, they are trained to do so. The Cast Members are expected to be creative and think outside of the box. Disney knows that when they promote internally that they will be promoting an employee who thinks proactively and on a larger scale. Remember, each Cast Member is taught to think of themselves as a member of the larger Disney experience. This eventually breeds a manager who is not concerned with their specific function as much as how their specific function affects the entire organization. This ultimately means that everyone in the theme parks, from Cast Member to executive, is concerned with the Guest first. Another benefit to customer service through internal promotion is that managers and executives realize the value that the Cast Members bring to the organization. The leaders often choose to hold open-door meetings rather than closed committee meetings. This opens the communication lines with employees on all levels, and encourages contribution from lower line employees. (Taylor & Wheatley-Lovoy, 1998, pp. 24) The leaders also spend significant time in the operating areas with the Cast Members. With the majority of the leaders having been former front-line employees, they understand the value of interacting closely with the Cast Members. They understand, from experience, that some of the best ideas come from those front-line employees themselves. One such example came from parking lot employees. The lot employees realized that at the end of the day many Guests would return to the parking lot not remembering where they parked. The lot attendants devised a system of tracking the times that each row would fill up. At the end of the day, the lot attendant could direct a confused Guest to the row they parked in based on the time that Guest said they arrived at the park (Streeter, 2003, pp. 8). This idea was able to work its way up and was eventually used at all of the parks. This bit of insight may have been hidden had management not regularly visited, and worked with, the lot staff. The leaders at the Disney parks are not afraid to "roll up their sleeves" and work on the front-line with the Cast Members they manage. They will work shifts on the front-line during the park's peak season. This keeps the leaders in touch with their staff. It also helps them keep in touch with their Guests. This is an example of how Disney's commitment to customer service is actually carried out throughout the organization. Disney is able to statistically prove, based on the guest return rate, that "there is a direct link between leadership behaviors and a quality Cast experience, a quality Guest experience, and our business success." (Taylor & Wheatley-Lovoy, 1998, pp. 24) Disney's business units in which Cast Members rate their leaders high in categories such as listening, coaching, and empowering also have the highest Guest satisfaction rating. Disney bases success on what its Guests say. Everything Disney does always goes back to what the Guest experiences. Every new idea has the customer in mind. From the idea to the execution, customer satisfaction is Disney's primary concern. With this type of corporate culture, there is no wonder as to why Disney's leadership and communication structure is an inverted one. Guest satisfaction begins and ends with the front-line employees. The front-line employees are the ones that cause customers to have a good or bad experience. The front-line employees are the ones that cause guests to return. Overall performance measures for each business unit are tied to customer service by measuring the activities of front-line employees. Disney will often monitor the activities of front-line workers to determine if improvement is needed in a specific customer service area. For example, one of the hotels found that a great deal of time was spent delivering extra pillows to guest rooms. Cast members were brought together to figure out what was the best way to reduce the time spent doing this while not sacrificing customer service. In the end, the simple, yet effective, solution of providing extra pillows in each room was reached. While the acquisition of extra pillows for all rooms did result in a capital expense, it allowed for Cast Members to dedicate more time to other duties and increased customer satisfaction. In fact, Disney often utilizes groups consisting of management and front-line workers which meet to discuss and address challenges. The challenges discussed are not only current, but include potential problems derived from Cast Members. This simple yet effective tool produces measurable results in increases to customer satisfaction. Disney has been more than willing to share what it has learned about customer service through the Disney Institute.
Clients pay to attend seminars at the Disney Institute where they will learn Disney's approach to management and customer service. The main ideas of the programs are that: everyone is creative, creativity has usefulness, creativity applies to business issues, and crucial to creativity and innovation is a set of critical beliefs and behaviors, especially leadership behaviors. (Allerton, 1998, pp. 25) As discussed before, the program does this by immerging attendees in the Disney experience. This is first done by allowing them to experience the parks attractions and amenities. A tour of the backstage area follows. This includes a tour to the resort's Casting Center. Here the attendees get to experience Disney's behind the scene operations first hand. For example, attendees can even view the video all potential Disney employees are required to watch. Throughout this time other activities take place. There are activities related to customer service and team building. There is one constant throughout the time spent there, a good Disney experience. Everything that takes place at the Disney Institute is in-line with Disney's outside of the box philosophy. Attendees learn why customer service is essential by actually experiencing great customer service. The Disney Institute expresses this sentiment with the phrases "Learn It! Live It! Leave with It!" The Disney Institute
goes beyond merely helping a business with customer service, quality improvement, team building, or human resource issues. They will work with other businesses to develop a plan for that organization to institute at their facilities. The Disney Company began as the vision of Walt Disney who was able to see beyond the horizon. Under Walt Disney's leadership, the company grew to be one of the best organizations in the marketplace. Even with Walt Disney's death, his leadership lives on. The legacy of Walt Disney lives to this day through the way Disney Company is run. Walt Disney had a vision of a place where everyone's dream would come true. This idea of everyone's dream coming true had the idea of providing a great customer experience at its core. Over the years, with Walt Disney's vision in mind, Disney has continually improved upon its already high customer service standards. By allowing everyone in the organization to be a visionary and leader, Disney has become the synonymous with excellent customer service. References
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