Walt Disney once stated, “It’s kinda fun to do what seems impossible.” They never imagined the impact their business would have on so many lives when they founded Disney Brothers Cartoon Studio in 1923. Sisodia Sheth and Wolfe explain that Disney’s most important attribute is its desire for people to be happy. They talk about the four values that have helped Disney become a “Firm of Endearment”. Disney employees are proud to fulfill the company’s mission of making people happy. The Walt Disney Company has developed a strong leadership model that has helped to build the entertainment giant we know today. The Life Cycle Theory of Leadership is best suited for Disney. This theory is also known as the situational model for leadership. It is based on the belief that employees are the key to achieving peak structure and consideration at work. The theory says that employees must be guided through four stages by the company in order to achieve their best performance. These four stages directly relate to the four core values Sisodia Sheth, Wolfe, and Wolfe identified in the book. This model is also applicable to Walt Disney Company. Telling is the first stage. This stage is about ensuring that employees have a structured, monitored time where leaders monitor their performance to ensure clear responsibilities. This is the first Disney value, Education. Disney University is required for all Cast Members and employees working in the Disney theme parks to be able to interact with guests. Judi Daley was the Disney University’s manager in 1997. She stated that they don’t tell you how to do it. It’s more than theory. It’s actually practice. See, hear, and study how it is done. ” (Allerton 1997). Cast Members learn the Walt Disney Company’s culture through a structured and closely monitored educational program. Cast Members have learned to manage the “keep the parks clean, create happiness, do your job” stage of The Life Cycle Theory of Leadership. Stage two is about selling. The second stage is about leaders supporting and encouraging employees to learn the core values and responsibilities of their company. This is Organizational Support, which Walt Disney Company uses. Disney University’s unique feature is that all lessons are given by current Cast Members, and not professional trainers. This allows Cast Members to learn from real-life examples and is done in a classroom setting. (Allerton 1997). Disney also makes it easy for new Cast Members to feel supported through their onboarding process. Family members can attend business workshops to help maintain a positive work/life balance (Allerton 1997). As their Cast Members become more connected with Disney, these small touches provide Organizational Support for their success in the future. These touches tap into a Selling component of Life Cycle Theory of Leadership. This is done by providing ongoing support and development to confirm Personal Organizational fit for new Cast members. The third stage of Life Cycle Theory of Leadership is Participating. Employees become more comfortable at work. As employees grow, leaders can give them more freedom and responsibility. This is the Walt Disney Company’s innovation value. In order to make guests feel at ease in the parks, Disney refers “guests” to them (McGough 1992). Disney places a high value on guest satisfaction and assigns employees the responsibility of making guests feel at home. Employees should be able to listen to their guests and not just do the talking. Cast Members have the freedom to make sure guests are happy by giving them this empowerment. Disney Cast Leaders have greater opportunities to be innovative because more of their employees are taking part.
The Life Cycle Theory of Leadership’s final stage is delegation. Leaders can transfer key responsibilities and create trust by delegating them. This is where Disney places the ultimate value in entertainment. Cast Members who interact with guests in a Disney Park are called “On Stage” by McGough 1992. Cast Members play an important role in creating magic at Disney parks. They also have the responsibility of providing the best possible guest experience. All Disney Cast members, regardless of role, must spend at most one afternoon with a Disney character (Allerton 1997). The Walt Disney World Company believes that Cast Members should feel like they are representing the “Disney Experience” in every park they visit. This allows them to be empowered to provide magical experiences for their guests. This is why Disney has been so successful in delegating their duties to Cast Members. According to Allerton 1997, 70% of Disney park guests return every year. The exceptional customer service that Disney offers to its guests is what explains this phenomenon. Sisodia and Wolfe explain that Disney is a company that has achieved success through Education, Organizational support, Innovation and Entertainment. These values also align with Colquitt, LePine & Wesson’s Life Cycle Theory of Leadership (2017). This theory is channeled by Disney into the values of their Cast Members, making them a force in customer service. What is the third question? Firms of Endearment discussed multiple companies. Each company had different characteristics that influenced how they manage and continue to succeed in today’s business environment. Costco stands out because of their global presence and culture. Costco has experienced continuous growth ever since their September 1983 opening of their first Seattle warehouse (About Us). , 2018). Costco reported that there were 741 Costco stores in 10 countries at the end of its fiscal year, which had a total of $126 billion in sales (Smith, 2018). However, the key question is: how can they maintain their leadership position in the industry and strive to improve? The Competing Values Framework (CVF) can help answer this question by looking at the organization culture. The CVF contains four competing values, Adhocracy (Clan), Hierarchy (Hierarchy), as well as Market. Costco identifies the most with Clan among these four values. Clan is famous for cooperation, good morale (Lavine and others, 2014). These are the attributes Costco embodies. Costco’s culture of cooperation is a key to its success, especially when it comes to employee engagement, morale, and productivity. These are the core characteristics of Costco’s organization culture:
Excellence is our common goal
Positive attitude
High energy at a rapid pace
Customer focus
Teamwork(Meyer, 2017).
These are the core values of Costco’s corporate culture. Costco can deliver a fantastic customer experience thanks to its employees’ passion and dedication to service (Meyer (2017)). Costco strongly believes in Market. Market and Clan appear diagonally in the Competing Value Framework’s four-quadrant diagram. Lavine states that the quadrants running diagonally from each other are the most opposing areas in Paradoxical Leadership. Accordingly, the Clan/Collaborate quadrant in the upper left (Clan/Collaborate), is most in opposition to market-focused results on the lower right (Market/Compete)….The CVF allows leaders see that strong action within one domain carries a specific and particular risk of taking comparatively more action in the quadrant diametrically opposed. (Lavine 2014). Lavine’s assertion is not consistent with the results Costco has achieved. Costco is the dominant company in Clan, but they also have strong market presence. Costco values customer service and profitability as well as competition. Costco’s Company Biography in Firms of Endearment states that Costco has a high level of customer trust and loyalty. It also has a policy of limiting markups on all products. (Sisodia Sheth Wolfe (2014), p. 227). Costco is competitive due to their low costs and limiting markup.
It is understandable that Costco and Lavine have not been consistent in their statements. If the company has a supportive and empowered culture that fosters great customer service, Clan and Market values can be complemented. This combination of values can also be seen at Costco, Whole Foods and Jordan’s Furniture. (Sisodia, Sheth, Wolfe, 2014). Costco has found a way to balance all the values of the CVF. They have been able achieve the success they enjoy today. Lavine noted that values that lie diagonally from one another in the CVF “can appear to conflict.” However, Costco has found ways to make these values work together (Lavine (2014)). Costco shows that they are able to create a culture that embraces all the Competing Value Framework’s values. They have made Costco a place where people want work. Statista and Forbes declared that Costco had been ranked in the Top 5 for two consecutive years. It is possible for a company to embrace the values of Clan Market Adhocracy (Clan), Clan, Market and Hierarchy. This will allow it to succeed and outperform competitors.
