Managment principles and how Walt Disney Company applyed them

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It was then that Girard came up with what he called the “Law of 250.”

The basic principle is that most people have about 250 people in their lives who would show up at their funeral or wedding. Then how did he use the information? First of all, he realized that if he did a crummy job of selling a car to somebody, he would potentially lose 250 more customers. However, more importantly—if he did a great job, he would gain 250 more potential customers. Therefore, Girard realized that if he consistently built good relationships with his customers and treated them fairly, it would make his job much more easily in the long run.

- Inspiration:

- Application—The Details in the Services Provided by Disneyland Park:

- For the first-line employees in Disneyland:

- All of them have a very detailed map in their heads from their first day working here. When you are looking for a place, they will give you very clear instructions like“Walk 150 meters towards seven o’clock direction and you’ll find a grey house where you can buy Coca-Cola.”.

- They are equipped with emergency equipment’s like medical kit and repairing tools. They learn to deal with such situations when a kid falls down and when an old man have a heart attack. They are also required to master skills like repairing wheelchairs and bassinets when they are broken.

- When they are communicating with a kid, they will squat down to keep their eyes on the same level with the kid’s to show respect. If a kid is upset with something, say he drops his ice cream on the floor, the employee will figure out which flavor the ice cream is and then run getting him a same one. There are so many examples like this. Everything about the stay at Disneyland as to be perfect and magical for its customers.

- Disney invited Yi Ding, a Chinese font designer, to custom-tailor more than one hundred font styles lasting 5 years for Disneyland Park in Shanghai to make visitor experience even more perfect.

- The elevators in Disney hotels will stay for 10-20 seconds longer than the elevators in other normal hotels because of a higher proportion of kid and elderly visitors.

- Rainier Effect—Attract and Keep Talents by Creating a Friendly Environment

- Origin:

The principle comes from an incident in University of Washington. The university was going to build a gym but the proposal was strongly against by the professors. The reason was that, once the gym was established, the fascinating scenery of the Lake Washington and the Mount Rainier that could be originally seen from the canteen would be obscured.

Actually, the professors in University of Washington earn 20% less than the average salary of American professors. The reason why they are willing to stay here is that they love the intoxicating scenery of Seattle. They cherish the pleasant natural environment they can enjoy in the university, which to some extent, can compensate for their salary.

- Inspiration:

Rainier effect reminds us that salary is not the only thing employees concern. On the contrary, some surveys have showed that most employees care much about the “invisible salary”. This may include the harmony relationship among colleagues, the humanistic caring from the superiors. Working in a company with a friendly culture environment, employees will keep a good mood so that they will be more loyal and efficient.

Many Japanese companies have set great examples for us. They believe the key to distinguish a company lies in human—the employees and the core talents it possesses. Therefore, they manage to create the company culture of “family”, to care about their staff’s as a human instead of only as an employee. To illustrate, if an employee is late, the superior probably won’t criticize him strictly. Instead, he may ask the employee “Do you encounter any difficulties? If you have any trouble, tell us, maybe we can help you to solve it together.” Such a simple expression can warm the employee’s heart. Moreover, when the staff get married or have a baby, the companies will send a gift and even a hand-written letter to them.

These companies regard employees as family members. They care about their feelings as well as their personal development. As a result, a bond is created between the staff and the company. The staff will not only economically, but also emotionally rely on the company. Many of them even contribute to the same company for their whole life.

- Application—the happy working environment in Disney.

- The office districts of Disney are fantastic and full of imagination. Animators are allowed to design their offices freely in the way they want, like a western town, a rocket, etc. Much open area is provided to strengthen the connection among different departments. The whole working environment is free, relaxing and creative.

- Employees have access to PlayStations, basketballs, skateboards, games…. They can use them whenever they want. It is a way for them to relax and have a break.

- The relationship among different levels are equal and harmony. Superiors will care about their subordinates’ life and try to be their friends. They don’t push you as a superior, they just talk to you friendly to make you believe from your heart. According to the first-line employees of Disneyland Parks, although the regulations are rigorous and it’s not an easy job, working in Disneyland makes them feel happy and energetic.