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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
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
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
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
new facility in Bristol, CT, for ESPN employees opened in September 2011. Two early-

childhood development centers provide Central Florida cast members with childcare options that

fit their work schedules. In Burbank, California, the Disney Childcare Center has provided high-

quality 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
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,
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
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
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.

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