Monday, September 29, 2008

Lessons in Leadership

It has been our pleasure to get to know the leaders and staffs of our featured Disney Way organizations . . . The Cheesecake Factory, Downtown School (Des Moines), Ernst & Young, Four Seasons Hotels and Resorts, Griffin Hospital, John Roberts' Spa and Men's Wearhouse . . . and discover their own Dream, Believe, Dare, Do magic. All are industry icons who set a standard by which others in their fields should be judged. For example, the dramatic results of the Downtown School illustrate the need for a dramatic paradigm shift in the American educational system.


The University of Michigan Business School's National Quality Research Center compiles and analyzes the American Customer Service Index (ASCI). This study began in 1994 when the index for the retail sector was close to 75%, then eleven years later at 73.5%. It still amazes us that even though Disney has been the "poster child" for "be our guest" service since the opening of Disneyland in 1955, painfully few companies have been inspired to emulate Disney's culture. Yet, when Dell introduces the latest and greatest new feature on one of their computers, within 60 days, the HP engineers are able to incorporate their version of the feature into their own products. They are able to take apart a Dell computer and discover the secret.


Yet, every day, The Walt Disney Company is wide open, and thousands of people around the world can actually see the "secret" — treat customers like guests in their own homes. They do this in front of the whole world, but few get it! Our featured organizations masterfully apply Walt Disney's definition of leadership to grow and nurture their cultures: "The ability to establish and manage a creative climate in which individuals and teams are self-motivated to the successful achievement of long-term goals in an environment of mutual trust and respect." There are many striking leadership similarities between our featured companies.


Let’s consider the key elements of Walt's definition beginning with "establish." Like Walt, each of our leaders established or changed their organizations to create "magical moments" for their guests — an upscale casual dining adventure offering 200 plus menu choices; a truly unique five-star hotel experience based on The Golden Rule; a financial services firm where the staff cares for the client and the firm cares for the staff; a hospital that is patient-centered rather than physician-centered; a clothing store where "wardrobe consultants" live the "I Guarantee It" philosophy; a school where students take accountability for their own learning; a spa with "the Norm factor" — where everybody knows your name.


As diverse as these organizations are, they all have a common thread . . . a leader who "dreamed" of a building something unique that differentiated themselves from their competition; "believed" in the value of their people; "dared" to take risks along the way; and then just "did it!"


The next key in Walt's definition of leadership is "manage a creative climate." Walt defined managing as "developing your people through their work and at the same time having fun." Walt believed that leaders are responsible for developing and training people and providing them with the tools to succeed. All of our featured companies are passionate about providing opportunities for their employees to increase their competencies. Ernst & Young has even achieved national recognition for its training, currently ranking near the top on Training magazine's Top 100 list. Aside from "hard skills" training, our featured organizations are among the best at placing "soft skills" training at the forefront of their cultural initiatives. They all provide an orientation experience in which employees become immersed in their respective cultures and upon "graduation", are energized and self-motivated to live the vision and values of their organizations.


It is also important to note that in each of these organizations, "fun" is not a dirty word. Sure everyone has those days when everything seems to go wrong — when deadlines pile up, or when you wish you had called in to report that you were "sick." But as one person told us, "I don't always like my job when I go home at night, but I am always excited to get back at it in the morning." When employees truly embrace the values of the organization, they not only feel a sense of pride but can also experience the freedom to be themselves . . . and yes, have fun.


Let's consider the meaning of "self-motivated." All of these leaders have realized that when properly trained, their employees can and should be making decisions to create those special moments for their customers. Be it the doorman at the Four Seasons, or the hair dresser at John Robert's or the manager at Ernst & Young — they all know that management has entrusted them with one of the most important elements of any business -- the customer experience. An empowered workforce is a self-motivated workforce. Like Disney, our featured organizations have a working definition of "long-term" that speaks volumes about culture. In the typical company, "long-term" thinking relates to a strategic objective for adding products, services and perhaps new locations. Companies such as Four Seasons and The Cheesecake Factory define "long-term" thinking in terms of values and beliefs upon which their growth is based. They go to great lengths to ensure that their cultures can support new ventures and still remain true to their credos.


Arguably the most important part of Walt's leadership definition is "mutual respect and trust." Without exception, these two values represent a common thread woven through each of these organizations from — Cheesecake Factory's five-year profit-sharing programs that rival many 30-year retirement plans; Downtown School's teachers who never raise their voices in anger in their classrooms; Ernst & Young's "People First" philosophy; Four Seasons Hotels' Golden Rule strategy; Griffin Hospital employees' willingness to risk their jobs to retain their cherished leader; John Roberts' relationship with the patients and families of Cleveland's Children's Hospital; and Men's Wearhouse leaders who take responsibility when their employees fail. Since the dawn of our new century, these seven organizations have cemented their "best practices" success. We believe that Walt Disney would be proud of their many accomplishments and especially for the proof that there is still magic in his original credo . . .Dream, Believe, Dare, Do.