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Strategic Control Systems
Walt Disney Company uses control mechanisms to help regulate guidelines and
procedures which contribute toward effectively achieving organizational goals. Disney is a well
known entertainment organization that has become successful both nationally and internationally
over the past 70 years. Through successful implementation of control mechanisms throughout
every aspect of the organization, Disney has become a media mogul using four types of control
mechanisms: budgetary, financial, management audit, and bureaucratic through compare and
contrast to determine the effectiveness of each by examining the positive and negative reactions
to these control mechanisms in order to explain how the different control mechanisms impact the
company.
Motivation, Rewards, and Incentives
Walt Disney, the founder of the Disney Company learned early in his career that no one
can be yelled at by a supervisor in the back room and then walks through the front door with a
big smile and greet a guest. This would create stress and tension in the workplace. This simple
insight serves as the foundation for much of Disney's success at making people feel special both
2. guests and employees. The Disney Company has a lucrative program to motivate their
employees through rewards and incentives. These rewards and incentives help the Disney
Company to retain valuable employees. Disney has mastered every aspect of its business:
financial, customer service, quality and innovation, management and employee retention. This
accomplishment is not magic, but a culture of recognition and motivation built on values and
dedication to their company vision. Disney Company has over 180 recognition programs. Three
of those programs are Spirit of FRED Award, Five-Minute Chats, and Wow! Cards. The Spirit
of FRED Award is actually an acronym created from the name of an employee who personified
the Disney values: Friendly, Resourceful, Enthusiastic, and Dependable. The award was created
to recognize the individuals who mentored and coached employees as they began their
management career after being an hourly employee. Second, is the Five Minute Chats. These
chats consist of every manager getting a list of ten cast members who do not report directly to
them. During the next month the manager has to spend at least five minutes checking in with
each employee on the list. This strategy has given employees increased access to managers who
in turn learn about their staff. Next, Disney Company uses Wow! Cards, which are threefold
thank you notes made from construction paper to thank fellow staff members for their help or
kindness. Disney has a plan to eliminate the negative. Disney recruits employees who are
service-minded and people-oriented. These employees are trained in qualities that are reinforced
in the Traditions 101 training program. This training program is staffed by employees who work
with new people over several days to immerse them in the culture of the company. New hires get
a view of the company through the eyes of its employees and they get to know exactly what their
job is, how to do it, and what's expected of them. In turn, the program reinforces the Disney
culture in the trainers. Disney expects its leaders to be coaches and to give its people feedback to
3. help them grow. Managers are evaluated on their financial or quantitative skills, and on their
ability to lead people. As a result, Disney has created a successful culture of recognition
supported within the organization and used as a model by other companies. Many companies
can you learn from Disney Company’s recognition program. First, it all starts with a philosophy.
The company must create a philosophy and start to live and apply it. Also, the company has to
realize that recognition comes in many forms. A single recognition program isn't enough to
motivate employees. There must be a combination of informal, frequent methods of recognition
with more formal long-term methods. Furthermore, their systems must support its values. The
company must not support systems serve as obstacles to your employees' efforts and self-esteem.
This can be very detrimental to your value statement.
Corporate Culture
The Disney Company’s values focus on the human element of their business. Disney
doesn’t just focus only their guests, consumers and audiences, but also on their employees and
cast and crew members. Disney is committed to fostering safe, inclusive and respectful
workplaces in all our locations, across the globe. Disney values the fact that their heritage and
reputation means they are held to the highest standard of quality, ethics, and social responsibility.
For many employees, that is the reason they chose The Walt Disney Company as an employer.
And for Disney, it is how they strive to treat their cast members and employees. Disney has a
benefit package that supports the physical, emotional and financial of its employees and cast
members. Disney offers a competitive total rewards package that includes, but is not limited to,
pay, health and retirement benefits, wellness resources, learning opportunities and many perks
and special extras that only Disney can provide. The Walt Disney Company offers an array of
tools for learning and development to its employees and cast members, including more than
4. 10,000 online reference materials and resources, instructor-led classes, performance support
systems, and education reimbursement for job-related degree programs. Their world-class
training programs are customizable to each employee and their goals. They include professional
development, management and leadership development, computer skills, business immersion
programs, and individual career development. Having a diverse workforce is critical to any
business. Disney welcomes a variety of opinions, ideas and perspectives to ensure they continue
to top their own performance and represent their global marketplace. When their employees
reflect the communities they serve, it enhances the way they connect to their guests, audiences
and consumers. Disney works toward an inclusive environment that fosters creativity,
innovation, and camaraderie across all of our companies. All of Disney’s companies have a
unique ability to harness the imagination in a way that inspires others, improves lives across the
world and brings hope, laughter and smiles to those who need it most. Together as one team,
Disney embraces the values that make The Walt Disney Company an extraordinary place to
work: innovation, quality, community, storytelling, optimism, and decency. Also Disney has
numerous Family-Friendly Benefits. Their employees and cast members are individuals with
diverse interests and unique needs. Disney recognizes, appreciates, and understands that work is
only one element of their employees' lives. Therefore, Disney provides a wide selection of
benefits and services, some of which are unique to Disney. In addition to adoption assistance,
survivor support and domestic partner benefits, Disney provides complimentary tickets to
Disney-owned theme parks for employees and their eligible dependents and to screenings of
Disney films. Also, Disney has expanded its childcare opportunities in its domestic sites. In the
past two years, Disney opened a new childcare facility in Berkeley, CA, to serve employees of
Pixar. In addition, they opened a LEED-certified facility in Glendale, CA, in January 2011. A
5. new facility in Bristol, CT, for ESPN employees opened in September 2011. Two earlychildhood development centers provide Central Florida cast members with childcare options that
fit their work schedules. In Burbank, California, the Disney Childcare Center has provided highquality childcare to dependents of our employees in the Los Angeles area since 1993. One of
Disney’s foundational values is to respect, appreciate and value everyone. This has become a
very controversial topic in politics today. But, in keeping with this philosophy, same-sex
domestic partners are considered dependents and are eligible for benefits.
Strategic Leadership
Disney recognizes that a key element in creating the best environment for employees is
through leadership. From the recruitment and selection process, through ongoing development
and retention, they are highly focused on building great leaders who can fully engage their
employees. Leaders take responsibility for creating a vibrant employee experience,
understanding that their own behavior and vision drive the creation of a fully-engaged work
environment. The Walt Disney Company is recognized worldwide as a storytelling company
that engages the emotions of its audience. At Disney Destinations around the globe, they have
discovered that leading by example is a storyline that delivers tangible results: improved
behavior and increased productivity. By consistently demonstrating the behaviors they value,
their leaders speak volumes about the methods the company values—methods that their teams
learn to follow. Every leader is telling a “story” about what he or she values. The
accomplishments of any organization can be traced directly to the combined efforts of everyone
involved. It’s the role of the leader to channel that effort into a guided direction. The history of
6. the Disney company shows how its founder, Walt Disney, set the example of leadership by being
clear about what he valued, and showed subsequent leaders how to continue his legacy by
seeking proactive change while sharing the same core values. A Disney leader shares the vision
in a way that makes an emotional connection and motivates their team’s action. At Disney, their
leaders believe that how the organization is designed and how it operates is the basis for success
or failure. Disney leaders understand that while this is simple, it’s not easy. That’s why some
organizations like competitors of Disney fail. These companies didn’t have the right leadership
strategy. Disney believes that an organization can’t survive over time without being willing and
able to examine the key components of organization: planning, role clarification, right-fit talent,
accountability, and supporting processes. Disney’s leaders instruct their cast members to be
engaged because they are given the responsibility, the tools, and the power to strive for
performance excellence. Whether it’s leading guests down the rivers of the world on the Jungle
Cruise or performing in a daily parade, through their ownership of each task, they show initiative
in their work and take pride in their performance. Also Disney realizes that change doesn’t
happen overnight. On the way to their goals, these leaders realize it’s easy for the group to get
distracted and forget what they originally set out to do. The leaders must show that commitment
is the bridge that connects the leader’s vision with measureable impact on the organization.
When the leaders and the employees commit to results involved in a set of day-to-day strategies,
they focus attention and build momentum to real achievement and a leadership mogul is
developed. Many companies admire and some even attempt to imitate Disney’s leadership
strategy. Disney leaders recognize that the values and behaviors they demonstrate day-to-day
will be remembered longer than their accomplishments. These are some of the qualities that
other companies admire and desire to mimic. With the ability to influence those around them,
7. leaders need to live the values of the organization on a daily basis. They must set examples. Not
only does this reveal what they personally value, it provides insight into their character and
ensures that their leadership will have a long-lasting, positive impact on the company. Michael
D. Eisner, CEO of The Walt Disney Company, and Robert A. Iger, president and COO and
CEO-elect, restructured the company’s Corporate Strategic Planning Division. The division was
restructured to more closely align with the company’s growth priorities, including creativity and
innovation, new technologies and international expansion. Many of strategic planning and
leadership activities were incorporated into the company’s four business segments — Studio
Entertainment, Parks and Resorts, Consumer Products and Media Networks, as well as Disney’s
international organization. A smaller corporate group currently continues to develop the
corporate five-year plan and focus on acquisition opportunities, emerging businesses new to the
company’s existing portfolio and new technologies. “Strategic planning will continue to play an
important role in identifying the opportunities and challenges presented to our company as we
grow our leadership position as the most valuable entertainment brand in the world,” said Mr.
Iger. “This new structure created efficiency with accountability and empower our business unit
leaders in their ongoing efforts to create new, differentiated and compelling entertainment
experiences that will ultimately generate long-term shareholder value.” “For more than 15 years,
Strategic Planning has been an essential catalyst to Disney’s growth by identifying new
opportunities and expanding existing businesses. We have been extremely well-served by their
efforts and now, the size, scope and dynamic nature of our individual businesses allow for this
evolution,” said Mr. Eisner. Peter E. Murphy stepped from his current role as senior executive
vice president and chief strategic officer and will serve as a senior adviser to Mr. Iger. Mr.
Murphy will advise the company on long-term strategic and technological trends affecting
8. Disney and identify major growth opportunities. “Peter’s vast contributions during his tenure at
Disney, particularly his leadership role in the acquisition of Capital Cities/ABC, helped
transform Disney into a market-leading global media company,” said Mr. Iger. “His extensive
experience and knowledge of our businesses, technology and strategy will continue to benefit
The Walt Disney Company.” “Over the last 17 years, Peter’s foresight and talent have played a
major role in making Disney what it is today, from his role in transforming strategic acquisitions
to the development of new technologies and franchise opportunities, these efforts will continue
to benefit Disney shareholders well into the future,” said Mr. Eisner.
Strategic recommendations for the future
Disney has come up with new strategies to help boost their sales and create a positive
image. Disney says its programming will no longer be sponsored by junk food. The Walt Disney
Company announced that it will become the first major media company to ban such ads from its
TV channels, radio stations, and websites intended for children. Children that watch Saturday
morning children's shows on Disney's ABC network will no longer see ads for fast foods and
sugary cereals that don't meet company's nutrition standards. The strategy won't go into effect
until 2015 because of existing advertising agreements with other companies, but Disney is
excited and very pessimistic about the positive image it will portray. Disney recognizes that
other companies will follow their lead and this will help reduce the number of overweight
children in the United States and other countries abroad. First Lady Michelle Obama called the
announcement a "game changer" in a statement. "With this new initiative, Disney is doing what
no major media company has ever done before in the United States and what I hope every
company will do going forward," Obama said. Disney said its guidelines are aligned with
9. federal standards to promote the consumption of fruits and vegetables and reduce the intake of
sodium, sugar and saturated fat. Sodium, sugar, and saturated fat are the leading ingredients in
obese and overweight children and the number one causes of childhood diabetes. Margo
Wootan, nutrition policy director at the Center for Science in the Public Interest, praised the
announcement. She said that while some snack foods of limited nutritional value can still be
advertised under the new policy, the worst of the junk foods will be eliminated. She hopes
Disney's decision triggers similar changes with other companies. "Disney's announcement really
puts a lot of pressure on Nickelodeon and Cartoon Network and other media to do the same," she
said. This latest strategy implementation by Disney is an extension of the internal nutrition
guidelines the company launched in 2006, with the goal of making 85 percent of the food and
drinks served at its parks and resorts being deemed healthy. The remaining 15 percent was
reserved for special treats, such as cake for birthday celebrations.