As we all agree, it would be astronomically stupid for a multi-billion dollar company to take a profitable division that is public facing, cut its funding by 20% (just cut, flat out, no redistribution), pocket a handful of coins (Millions in labor savings is a handful in Disney profit speak). So, lines get longer, rides become run down, magic fades, and reliable customers leave - all for a small bump in earnings. That doesn't even make logical sense.
Therefore;
I conclude Disney is not run by a bunch of bumbling idiots bent on demoting the brand.
Let me ask you a question? After the success of Disney Animation's in the early 90s, would you have ever predicted that in 2005 Bob Iger would be justifying the acquisition of Pixar to a Bear Stearns meeting by saying,
"In fact, the light bulb went off for me back in September in Hong Kong. I was at the opening of Hong Kong
Disneyland and standing with a few thousand other people watching the parade go by and I realized that there wasn’t a character in the parade that had come from a Disney animated film in the last ten years except for Pixar. And although it was relatively known to me that we had exploited these characters across multiple businesses and multiple countries over time, it really hit me hard that we had had ten years of real failure in many respects in the business that I believe was the most vital to us."
Over this period of self-admitted failure, Bob Iger was the President and COO of the Walt Disney Company for 5 of those years. The buck ultimately stopped with Michael Eisner, but as number 2 in the company, he had a responsibility as well. During that period, all the conventional wisdom stated that modern audiences were no longer interested in Princess Musicals and we can see by the slate of movies that went up at the time that they committed to this idea fully (Dinosaur, Atlantis, Lilo & Stitch featuring Elvis, Treasure Planet, Home on the Range, etc) . I hope now we can admit how short-sighted and a failure to accurately predict the desires of the marketplace that was. It is the success of a Princess Musical that has re-elevated Disney's position.
Second the Studio. Going back to Iger's light bulb moment. The studio's success is how much dependent on the creations from the last decade, and how much by either acquiring properties that have a 40+ year history of success (Star Wars and Marvel) or are re-interpretations of the same stories that were already produced over Disney's long history. Just this week Emily Blunt is the new Mary Poppins. Way to create new content there. The successes of those things isn't bad, but it can't be enough, otherwise you're the next CEO wondering what characters in this parade were created within the last decade.
But somehow Parks & Resorts have been immune?
The good thing about movies, is that you get near instantaneous feedback. The next one comes out 6 months, a year, two years later. You can really see when bad decisions go wrong. But a trip to WDW is a lifetime experience, or at least a "once as a kid, once as a parent" experience. Feedback is going to come much slower, and some stuff won't show up for a generation. Now, I wouldn't say bumbling idiots, but I think they are so blinded by Disney's own powerful Brand that they don't see the harm they are doing, or understand the ham that has already been done. Disney provides stellar service. Everyone knows this. But how can that possibly be, when it is increasingly staffed by young adults with no or limited prior experience in the jobs that they have been assigned, and receive very little training beyond the basics, which maybe account for 50% of their job, and they are turned over every 6-12 months? There are a lot less full-time positions in each location than there were 10 years ago, 20 years, 30 years ago. WDW has lost so much Institutional Knowledge that I believe Management believes still exists. And much of what remains are Boomers set to retire. If you believe Disney provides the same stellar service as they did a generation ago, some cutting can easily be absorbed without a noticeable affect. The problem is that all that "protection" they think exists, was eliminated a long, long time ago. And that's the good version! The bad version is that Management simply thinks that you can simply swap in the next warm body and expect them to perform at the high standards the name Disney implies. The guys that staffed the 1964-65 World's Fair talk about how they hired a great group, of motivated and intelligent boys and girls, kids that went on to be doctors, and judges, and trained them up so they knew their operation went smoothly. But now we're down to just about any warm body will do? I hope not.
All of these things happened to me, on my trip to Florida two weeks ago (I no longer say, I am visiting WDW, because we primarily go because friends want to, and my Mom had 15 years of service for Disney and that gives my Dad sign-ins). These would be unacceptable for any business. Let alone one with the reputation of Disney. How long will people pass them off as, "they must be exceptions." And not systemic operational failures. Like I said, my Mom worked for Disney for 15 years, WDW for 5, that provided significant insight into training, turnover, treatment of long time employees and how front line operations actually work and not the Brand speak about how things should be.
1. Being told after we had paid, "I'm sorry we don't have any Coke" during the start of the lunch rush (approx. 11:45) at a food service location with at least 2 visible fountains (not a cart with bottles that need stocking).
2. Hearing a CP swear into the microphone because she was expected to spiel before she was prepared, got flustered and let it out of her mouth before she even knew what she said.
3. Shopping at World of Disney and have the CM ring you up, without saying a single word, or making eye contact at 10:30 in the morning (so no full day of bad customers to blame it on)
4. Hearing about how my friend was at a Guest Service window for an hour, because they messed up her
MDE account while trying to add her AP (they added it to her husband's profile which she manages)
In the Fast Company article about the implementation of My Disney Experience, Bob Iger concluded by saying, "This had better work." With that kind of attitude fresh in their minds, how forthcoming would you assume lower levels of management, who are going to protect their families first and foremost, and therefore their careers, are going to run up the chain with, "Hey Bob...so this isn't working like we thought it would." Bad data, leads to bad decisions and bad results. And I have very strong doubts, that the management with their plaid entourage, assistants to schedule meals, concierge rooms that have been inspected with a fine tooth comb, and pre-park opening visits and backdoors ...results in them seeing the same things that we and their front line staff sees. Unlike movies, which I presume they actually watch and can draw their own conclusions as to the quality of their product, their WDW is a lot different than ours.
