Disney: An organisational culture Essay

Purpose The purpose of this paper is to discuss the corporate culture of Disney. Within the discussion, a number of topics will be addressed that include: formal statements prevalent in the organization and their impact to the organization, a description of the environment and the statement it makes relative to the organization, the types of language or sayings used in the organization, the type of role modeling, training and teaching that is emphasized, rewards used to motivate employees, stories and legends that are familiar to employees and customers, outcome measures used by leaders within the organization, how leaders respond to critical incidents or crisis, workflow and organizational structure, an evaluation of organization systems and procedures and the types of organizational goals and associated criteria used for the selection of employees. Disney philosophy The mission of The Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using their portfolio of brands to differentiate their content, services and consumer products, they seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world (Disney.com). This mission statement originated from the original business philosophy of Walt Disney which was: (a) quality will out! (b) give the people everything you can give them; (c) keep the place as clean as you can keep it; (d) keep it friendly; (e) make it a fun place to be (Johnson, 1991). According to Rick Johnson in his article A Strategy for Service (1991), Walt Disney was committed to the single goal of creating happiness for customers whom Walt called guests. He knew that if guests were happy, they would return. Disney also understood that one bad guest experience or disappointment would conversely keep that guest from returning. The focus of Disney corporate culture is guest driven service. In order to ensure there is no deviation from the goal, Disney has created a corporate culture in which the employees or â€Å"cast members† live while at work. It is the Disney way of life which places service to guests above all else. Disney’s legendary customer service is so renowned that today, companies from all areas of business engage in Disney training to improve their customer service. Another key element of Disney culture is to foster creativity and to sustain innovation (Lynch 2001). Disney knew that when employees were encouraged to â€Å"think out of the box† and that their ideas were respected, they would consistently deliver. Disney was known for seeking input from all levels within the organization because he believed good ideas could come from anywhere. The Disney environment Disney opened his first theme park in 1955. His goal was to provide a good show through themed entertainment. Disney essentially transformed his legendary animated movies into reality. The entire park became a stage filled with props and actors. When guests entered Disneyland, they were no longer the audience; they became part of the show. In order for this to be successful, Disney understood he had to control the environment so to speak so that the experience was replicated. He believed that by controlling the environment, the reactions of the guests within the environment could be predicted (Johnson 1991). Disney also understood he had to control the response of his employees to the guests. Being a director and movie-maker, Disney’s view was that it would not be unlike controlling the action in a play or movie in which the cast members have a script and an expected set of actions. Disney took this philosophy a step further by making every employee a cast member. Cast members have a script and a set of standards that are acted out every time they go to work at a Disney location. It is easy to understand why Disney was so successful in consistently delivering the Disney experience. Disneyspeak corporate language Disney created an entire corporate culture by transforming his movie productions into real life experiences for people. One of the ways in which Disney was able to accomplish this feat was by expressing his expectations through the development of a unique corporate language referred to as â€Å"Disneyspeak† (Edginton, 1998) that set the stage and expectations for his vision. In the world of Disney, people were no longer customers, they became guests. Disney teams were charged with the study of â€Å"guestology† (Johnson 1991) which was to develop programs and actions that would consistently exceed guest expectations. Employees became cast members who are literally cast in a role for daily performance (Edginton, 1998) designed to create â€Å"magic moments† for the guests. All of this conveys the message that guests are at the center of all actions and interactions. Cast members understand that attention to detail is critical and that their role is to â€Å"sell the vision† to every guest. Disney empowers cast members with the service theme of â€Å"creating happiness† and provides extensive training, communication and support systems to ensure cast members can make the best decision with every guest encounter (Johnson 1991). Role modeling, training and teaching It seems that Walt Disney is established upon the training, teaching and role modeling among their employees to have good customer service. Everyone who has ever been to a Walt Disney theme park is often warmly welcomed by greetings from such role models handed down through the years to children and adults alike of characteristics like those of Mickey Mouse, Goofy and Donald Duck. These three characters are the main role models of how the rest of the staff should be trained and taught to handle their guests at the Disney Park it appears. This example is not to say that their reputable service is necessarily grounded in stone rather it is ever evolving based upon the premise of their well-known hospitality. The whole concept of their welcoming practices seem to revolve around what their guests would expect and is developed through this whole company as a result of the efforts pertaining to their Public Relations. Employee rewards and recognition Some of the incentives and rewards that the managers and staff receive are warm and generous letters from their visitors and guests as evidenced by the following statements. â€Å"Staff members at Disney receive plenty of training, support, and recognition from their leaders and they don’t stay around long if they don’t buy into the Disney culture† (Amusement Business, Vol. 115 Issue 49, p3, 2p). â€Å"A great deal of passion goes into training and that results in happier employees†, so it seems that the rewards and status symbols that are used to motivate the employees of Disney is a culture and tradition of understanding and compassion that are handed down from employee to employee based on the Disney model throughout the years. In addition to the compassion and understanding, there is much room for growth and promotion as an incentive for those who work hard and do well. Weiss, one of the head managers at Walt Disney walks through the park among the buying public guests to make sure that everything is going smoothly. Additionally, he strives to make himself as accessible to his employees at Disney as possible which helps to promote the communication among the employees that they are working in a compassionate and understanding environment. His style of management functions as incentives and rewards which motivate the Disney staff. Disney legends The Walt Disney collections, Walt’s masterworks, and Walt’s thought are among the stories, legends, and myths familiar to employees and customers. The story of Pinocchio was heartwarming of a unique friendship. The artwork picture of Pinocchio underlined Walt’s belief of designing his animated characters to look real as if they were made of flesh and blood. The animation of â€Å"Bambi† was an interesting picture which took over Pinocchio. Bambi, a deer, was an animated character with an anatomy. The animation of Bambi was an improvement in quality of artwork in all his pictures. Bambi’s mother who was killed off-screen is remembered as one of the most powerful moments of any Disney film. The Golden Age of Animation (1937 – 1942) also called the â€Å"creative explosion† marks the most creative periods in the history of Disney Studios on animation motion pictures. The release of â€Å"Snow White and the Seven Dwarfs† and â€Å"Bambi† films during this five year period remain the most memorable periods in history and a lasting tribute to the remarkable career of Walter Elias Disney. In a study by the Canadian Journal of Psychiatry, children who watch animated films produced by Disney Studios are exposed to a greater incidence of mental illness than they may have experienced if they had watched similar films on TV (Lawson, and Fonts. 2004). Organizational activities, processes and outcome measures In its efforts to uphold excellence, and integrity in all its professional relationships, Walt Disney undertakes the following business activities described below. The Disney Studio Entertainment is the foundation on which the Walt Disney Company was built. The Studio Entertainment is known for its rich legacy of quality creative content and exceptional storytelling. At the heart of the Studio Entertainment are the renowned animated features and live-action motion pictures. The Studio Entertainment distributes its pictures under Walt Disney Pictures, Touchstone Pictures, Miramax Films, and Buena Vista Home Entertainment. The Disney name has now become associated with quality entertainment for the whole family. The Disney Parks and Resorts has become one of the most popular amusement parks known to tourists in recent times. It is the home of the Disney’s beloved characters-Mickey Mouse, Pinocchio, Cinderella and the whole lot. Among the Parks and Resorts are Disneyland in Anaheim, California, Disneyland in Orlando, Florida, Tokyo Disney Resort, and Disneyland Resort in Paris. In all, there are 10 theme Parks on three continents with the 11th Park in Hong Kong to be opened in September 2005. In addition, 35 resort hotels and two luxury cruise ships is part of entertainment offerings in Hong Kong. The Disney theme parks and resorts celebrate Disneyland 50th Anniversary, an 18 month celebration which is scheduled to begin May 5, 2005. The Disney Consumer Products began merchandising in 1929 with the appearance of Mickey Mouse on the cover of a children’s writing tablet. Among its products are apparel, toys, home dà ¯Ã‚ ¿Ã‚ ½cor, and books to interactive games, foods and beverages, electronics and fine art. DisneyStore.com and Disney catalog are the direct marketing tools used by Walt Disney Company. Disney Media Networks include the television, radio, cable, and the internet landscape. ABC entertainment, ABC Daytime, ABC News, and ABC sports appear on the television media. For the cable network are Disney channel, ABC Family, and Toon Disney. And for the radio media are Radio Disney and ABC News Radio. A fund with the American Red Cross has been set up by the Walt Disney Company with an initial donation of one million dollars and having its employees as contributors. The first quarter of 2005 financial results for the Walt Disney Company will be announced live beginning Monday January 31, 2005 at 4:30pm (E ST) through February 7, 2005 at 4:00pm (PST). Disney leadership reaction to critical incidents and crisis The Business leaders at Walt Disney pay attention to the world around them almost as much as they mange their organization. In doing so, DisneyHand a worldwide outreach of The Walt Disney Company brings the magic of Disney to those affected by incidents beyond their control. Along with cast-members (called Disney VoluntEARS), outreach helps in the areas of compassion, partnering with organizations that serve children, families, or others facing crises. In fiscal year 2004, DisneyHand donated more than $165 million in cash. Disney VoluntEARS also contributed more than 450,000 hours to help that in need (Business Wire 2001). In September 2001, DisneyHand committed to contributing 5 Million Dollars to the DisneyHAND Survivor Relief Fund. (Business Wire 2001) These donations went to providing assistance to victims and their Families of the New York and Washington D.C. 9/11 attacks. In doing so, Disney and DisneyHand display a culture of empathy and solidifies its corporate culture of ethical practices, and giving to the community. DisneyHand also creates the perception of an organization interested in more then just making money. The Disney staff embraces a philosophy that when they react to the incidents that happens around them, they can help in the best way with their own contributions. Workflow and organizational structure Workflow can be defined as the process used by an organization to manage operational task. McShane and Von Glinow define â€Å"Organizational structure as the division of labor as well as the patterns of coordination, communication, work flow, and formal power that directs organizational activities† (McShane & VonGlinow, 2003, p. 506). The workflow and structure of an organization helps to define week or strong organizations. Disney’s main strength comes from its organizational structure and workflow of managing the process of creativity and innovation. In doing so, they foster a culture that ensure controlled risk taking. Walt Disney has a structured methodology in its workflow and organizational structure. To ensure all employees and the organization follow this physiology, Disney uses the following five phased model: 1. Define the Culture – For the Organization and In every venture taken a. If a new theme ride is proposed, does the attraction fit within the Disney Culture 2. Align the ideas – To the Organizational Mission Statement and Strategic Direction a. Does a new movie or show parallel Disney’s Vision, Mission, and or Strategic Plan 3. Design the Process – Where ideas flow easily from conception to deployment a. Disney has open lines of communication between all employees from the CEO to a part time worker 4. Refine the Product of Service – Continually improve the idea a. Disney is always asking their customer what they can do to enhance their products. Then they add these enhancements to meet customer expectations. 5. Create Fail Safes – Embrace the concept of successful failures a. At Disney there are no bad ideas, and ideas that are not successes in the market place are opportunities to learn what the customer wants Organizational systems and procedures The Walt Disney Company incorporates Business Standards and Ethics training into its system to provide education and training for domestic and international employees. Disney wants to insure that all of its employees act ethically and legally, and remain in compliance with the company’s Standards of Business Conduct. Disney works towards keeping its communication open among its staff. Disney believes that open communication creates better teamwork and a healthy environment. According to Risk Management Society Publishing Inc. (1993), â€Å"Walt Disney has one of the most sophisticated risk management programs in the US. Disney has a separate loss control, safety, environmental health and industrial hygiene departments. All Walt Disney facilities worldwide are equipped to handle these functions in one form or another.† Walt Disney still holds true to its core mission that it started with, and that is providing quality entertainment for everyone around the world. In a quote from the Vice President and Principal Creative Executive at Walt Disney Imagineering, Sklar (2003) states â€Å"From the beginning, starting with Walt Disney, we have had five things that make me proud to be part of this Company: high-quality products, optimism for the future, great storytelling, an emphasis on family entertainment and great talent, passion and dedication from our Cast Members.† Disney’s values are their driving force that makes them retain the trust of the public and their shareholders. Those values are innovation, quality, community, storytelling, optimism and decency. Employee selection and replacement Walt Disney is committed to treating their employees and cast members with fairness, dignity, and respect. Disney provides equal opportunity for everyone without regard to race, religion, color, sex, sexual orientation, national origin, age, marital status, or any of the other basis that are prohibited by state or federal law. Disney strives to help their employees develop and advance based on their abilities. They want to be able to attract and maintain an employee work force that is reflective of their guests, business partners, shareholders, and communities where they do business. They also want open opportunity so that everyone is advantaged based on their potential and never disadvantaged because they are part of a certain group or class. Disney strives to maintain an organization that is diverse and professional. Conclusion Walt Disney is a company that stands behind its name and its employees. Disney devoted his life to creating magic moments for his guests through the highest level of customer service. Walt Disney is devoted to environmental causes through conservation, action, and education. They are also committed to the highest standards of business excellence. The Disney Corporation is made up of six components, which help them remain consistent in the business standards that they have set for themselves. The six components of their business are their Business Standards and Ethics guidelines, corporate governance, community, environment, international labor standards, and safety.    References Business Wire Sept 18, 2001 p0018: BURBANK, California. Disney Online retrieved January 25, 2005 from http://corporate.disney.go.com. Edginton, D. (April 1998). The magic of management. Des Moines Business Record, 94,15, 10-12. Retrieved January 25, 2005 from EBSCO Database University of Phoenix Apollo Library. Lawson, A. & Fonts, G. (2004). Mental Illness in Disney Animated Films. Retrieved January 29, 2005, from EBSCO database University of Phoenix Apollo Library. Johnson, R. (September/October 1991). A strategy for service – Disney style. The Journal of Business Strategy, 13,5, 38-44. Retrieved January 26, 2005 from EBSCO database University of Phoenix Apollo Library. Lynch, L. (2001). Sustaining innovation Walt Disney instilled how. T &D, 55,6, 44-50. Retrieved January 26, 2005 from EBSCO database University of Phoenix Apollo Library. O’brien, T. (December 2003). Weiss sees employees as Disney’s Magic Makers. Amusement Business, 00032344, 12/8/2003, Vol. 115, Issue 49. Risk Management Society Publishing Inc. (1993). Risk Management, April (1993). 40, 31. Retrieved January 29, 2005, from InfoTrack One File University of Phoenix,Apollo Library. Sklar, M. (2003). Retrieved from The Walt Disney Company website on January 29, 2005, from http://corporate.disney.go.com.