Leadership is the capacity to inspire and direct a group toward productive action. Leadership is recognized as a key contributor to organizational performance because of its impact on the development of corporate culture, the setting of strategic goals, the motivation of followers, and the transmission of a clear purpose and vision. In the late 1920s, The Walt Disney Company began as a separate entity, creating cartoons for distribution by other businesses. Since Walt Disney was the company’s namesake, the Disney brand has been associated with conservative, patriotic, and “All American” stereotypes. Disney’s influence stems from the fact that the company is positioned to define childhood and the family unit and owns several very successful media and entertainment properties. As a player in the increasingly consolidated media industry, it actively contributes to forming our cultural landscape. Disney says it publishes more children’s books and periodicals than any other company. Studio Entertainment makes and buys movies (including live-action and animation), TV shows, music albums, and even touring Broadway shows. In the following sections, we will look at some of the company’s leadership practices to better understand leadership’s role in Disney’s digital transformation. The impact of organizational leadership on culture and change management will be discussed in depth in this article.
Leadership Style and the organizational culture at Disney
Because of its leadership style and company culture, Disney has become one of the largest companies in the world and has been able to sustain its success over time (Disney Company, 2022). Disney’s executives have, for quite some time, adopted a style of leadership known as “transformational leadership,” in which they prioritize creativity and new ideas. So that they may contribute their best ideas and efforts toward making the company’s business operations creative and innovative, employees are encouraged to participate in ongoing skill development (Gill 2018). Disney’s management is supportive and offers many training and development opportunities. This type of management assures that Disney will always be at the forefront of new developments in the entertainment business. As a result, Disney has relied heavily on strong leadership to build and sustain its position as an industry leader over the years.
On the other hand, Disney is known for its innovative corporate culture (Disney Company, 2022). Disney’s culture fosters an environment where imagination and originality are valued above all else. Disney’s ability to stand out in the competitive entertainment business directly results from the company’s emphasis on innovation and creativity at all levels of the organization. Disney’s long-term success may be attributed to its culture, which encourages creative risk-taking in producing its content. Disney has made diversity a central part of its corporate culture. Disney has found success in drawing viewers of all ages because of its consistent commitment to creating material that appeals to various tastes. Disney has sustained long-term success in a highly competitive market because of the synergy between leadership style and company culture.
Figure 1: Disney’s organizational culture
Source from: Disney Linkedin(2017)
Main duties of the Board
The Disney board ensures that the company’s internal and external stakeholders are satisfied with its governance and policies. The Disney board must also ensure that the company’s operations are open and honest (Disney Company, 2022). The Disney board also has the vital task of ensuring the company’s continued dedication to sustainability and corporate responsibility. Over the years, Disney’s Board of directors has been instrumental in ensuring the company’s consistent approach to business. The Board must answer to Disney’s many stakeholders, including its consumers and investors.
Board’s responsibility for risk management
Disney’s Board of Directors has set up risk management frameworks to help the firm deal with various operational threats. The Disney Board of Directors has established rules for managing the company’s exposure to internal and external risks (Disney Company, 2022). Second, the Disney Board of Directors is committed to including all Disney workers in the risk management process to better avoid and manage risks with the input of all Disney employees. The Disney Board of Directors must also consider the potential dangers faced by any and all Disney stakeholders and devise plans to mitigate such dangers. Disney’s Board of directors has established a separate risk management team overseeing various threats to the company (News at The Walt Disney Company – The Official Board, 2022). Finally, Disney’s Board of Directors oversees the company’s risk management policies and procedures. Therefore, the Board is crucial in helping Disney manage the company’s internal and external risks.
The corporate governance framework of Disney
The Disney Board of Directors is responsible for the company’s corporate governance system. Disney’s Board of Directors consistently upholds long-term ideals for the company’s constituents. By doing this, the corporate governance approach guarantees that the company’s internal and external stakeholders are treated fairly (News at The Walt Disney Company – The Official Board, 2022). The Disney Board of Directors is committed to being open and honest with the company’s shareholders, employees, and other stakeholders on the company’s corporate governance plans and results. The Disney Company has Stakeholder Business Compliance Standards to ensure that all internal parties follow the company’s standards. Disney’s longstanding commitment to doing business ethically can be traced back to the company’s robust corporate governance system.
The regulatory landscape for Disney and its impact on the success
Disney faces a different regulatory environment in each nation where it does business. When this happens, the Disney Board of Directors adjusts the company’s internal regulations to conform to local norms. For the most part, however, the company’s internal regulations remain the same everywhere. The Disney Board of Directors strictly adheres to local regulations to preserve the company’s worldwide standing (News at The Walt Disney Company – The Official Board, 2022). Disney, for one, has environmental sustainability plans that it has crafted following the environmental regulations of each nation where it does business. Disney, too, has financial standards that align with the financial legislation of the many nations in which the company operates. Disney follows security practices regulated by security laws, such as data security, infrastructure security, and others.
The regulatory landscape has had a major impact on Disney’s performance. Disney has been able to preserve its status as an ethical business due largely to the existing regulatory structure. In addition, robust regulatory environments aid Disney in resolving legal difficulties in the United States and elsewhere. Since the Board of Directors is in charge of shaping the law, Disney has been able to adapt to changing business requirements throughout the years (News at The Walt Disney Company – The Official Board, 2022). Disney takes measures to keep its workers and other interested parties informed of the rules that must be followed to keep the company’s culture of ethics intact. Due to several variables, Disney can continue its success despite the complex regulatory environment. The company’s longstanding success in the entertainment business may be largely attributed to the impartiality with which it has managed its regulatory landscape.
Analysis and evaluation of risks faced by Disney
Disney, like every other corporation, confronts various dangers in this industry. Disney’s high level of debt is one of the biggest threats it faces (Disney Company, 2022). Disney’s credit ratings have significantly dropped as the company has struggled to keep up with its financial obligations in recent years. Because of this, investors have not been interested in Disney’s company for a long time. Disney has been struggling to generate revenue as of late, and as a result, the firm faces potential insolvency in the not-too-distant future. Second, Disney might be in danger of copyright infringement. Disney’s reputation is on the line as it creates original material for movies and television series, and copyright issues might significantly impact it. Thirdly, Disney owns amusement parks, and guests to such parks might be hurt if the attractions there need to be fixed. If that happens, Disney might be in for some serious legal trouble. Even Disney is not immune to threats to its data systems. Since Disney handles a great deal of information, the corporation runs the danger of a data breach. A data breach might result in significant losses for Disney and potentially shut down its operations.
Disney also runs the danger of having low-quality material. As a result of its consistently high quality and innovative material, Disney has maintained a prominent position in the entertainment business for quite some time (Disney Company, 2022). Disney will lose its ability to attract people if the quality of the content of its movies and television series declines. Disney faces a challenge to maintain or improve the quality of its material so that it can continue to be successful in the entertainment sector as the number of competitors grows. These are serious threats to Disney’s business that, if not mitigated adequately, might lead to even more difficulties in the future.
Recommendations on responses to risks and the role of the Board in risk management
The table below will evaluate the top 3 risks for Disney and their impact on the business. In the next table, risk management strategies for all those three risks will be developed.
| Top 3 risks for Disney | Impact on the business |
| Financial risks due to high debt | The hazards associated with the corporation’s eventual shutdown are exacerbated if Disney’s debt levels rise and the company declares bankruptcy. |
| Malfunctioning of rides or equipment in amusement parks of Disney | If Disney’s amusement park rides or equipment fail to perform as intended, the firm might be in for serious legal trouble in the future. |
| Risks of a data breach due to poor information security | If Disney’s data is compromised, the corporation might suffer significant financial losses and, in extreme cases, be forced to shut down operations. |
In the below table, recommendations will be given on mitigation methods for three identified risks for Disney.
| Risks | Mitigation methods |
| Financial risks due to high debt | A key part of managing this risk is getting debts paid quickly so the company can continue operating with enough cash flow. Disney must now prioritize debt repayment above spending on new initiatives. Since the company’s obligations would decrease, Disney would be better positioned to invest in future initiatives without taking unnecessary financial risks. |
| Malfunctioning of rides or equipment in amusement parks of Disney | Disney needs to have a quality management staff to ensure that all of the attractions in the theme parks are operating properly. The efficiency of these machines may be monitored through scheduled inspections. |
| Risks of a data breach due to poor information security | Disney’s technical staff must guarantee the safety of all networks and technological infrastructures. Technical risk monitoring is also a responsibility of the technical team. |
In order to effectively manage these three threats, the Disney Board of Directors will play a crucial role. The first step is for the Board to establish policies for managing these three threats. The Disney Board of Directors creates, implements, and oversees the company’s financial risk management policies (News at The Walt Disney Company – The Official Board, 2022). Secondly, Disney’s Board of Directors has to establish quality standards that must be upheld for the company’s amusement park equipment. To mitigate the third risk, the Disney Board must establish and regularly update IT risk management rules that must be followed by all Disney workers who have access to the company’s IT infrastructure. The Disney Board of Directors must also oversee these precautionary measures to guarantee that Disney’s internal stakeholders use sound methods to deal with any dangers (News at The Walt Disney Company – The Official Board, 2022). Consequently, the Disney Board of Directors will be important in reducing these three threats.
Leadership and management styles in Disney
When it comes to inspiring innovation among Disney’s human resources, the company’s executives take a transformational tack. So far, this management style has helped Disney create groundbreaking works in the entertainment sector and establish the company as a household name. When Walt Disney first established the corporation, he used a very authoritarian method of management (Disney Company, 2022). However, the present management recognizes the significance of employee participation, and thus they utilize a collaborative management style. Using a collaborative approach, Disney’s top executives work together to steer the company’s many divisions. Leadership that takes a blend of collaborative and transformational approaches is assisting Disney in better aligning its operations with the shifting preferences of industry customers. The Disney leadership style benefits greatly from this, as a result.
On the other side, Disney’s management approach centers on encouraging workers’ participation. Management at Disney is keen on getting workers invested in their work and their ability to make decisions (Nag 2021). The high level of employee happiness at Disney directly results from the company’s emphasis on employee involvement. Disney’s management staff is supportive in backing up all workers in their respective duties. Disney’s leadership recognizes the importance of preserving the company’s capacity to generate revenue in the future; therefore, they have made sustainability a top priority. Thanks to the company’s effective management approach, staff members are devoted to their jobs at Disney.
Abilities of Disney to handle significant business challenges
Disney has a history of success in responding to and overcoming business issues. However, the corporation may have greater difficulty in the face of increasingly complex business challenges in the future due to increased competition and shifts in the industrial context (Rodriguez et al. 2019). One possible explanation is that Disney is using an outmoded leadership model. Disney’s exceptionally capable staff can deal with various difficult business issues. A competent leadership strategy, however, may make light work of dealing with the many skillsets seen in modern workplaces. Until now, Disney’s top brass has adopted a transformational leadership style, which has effectively allowed the company to respond quickly and effectively to changing circumstances. However, a transformational leadership style needs to address major commercial difficulties adequately. Disney’s leadership strategies could be better in several key areas, including the proactive and flexible styles essential for the company’s success.
Because of this, many believe that Disney’s present approach to leadership needs to be updated and might cause problems in the face of pressing business concerns in the future (Disney Company, 2022). Disney may only deal with new threats if the company’s leadership style is modernized. Furthermore, leaders constantly need to continue inspiring people to influence them to adjust to new business situations to handle obstacles successfully. While a transformational leader can inspire their team in some situations, it will not work. Instead, inspiring leadership and caring management are needed to meet workers’ motivating needs.
Strategic objectives for Disney
below are a few examples of Disney’s leadership long-term goals for performance management
- The goal is to build a strong team capable of taking on the company’s future initiatives.
- The annual performance plan aims to help the organization achieve its financial objectives.
- The success of the company’s bottom line depends on the efforts of its employees.
- In order to regulate monthly employee performances and award incentives depending on their results.
- To aid employees in receiving training that will help them meet performance targets and develop new skills in line with company needs.
Key performance indicators of Disney
Some key performance indicators that can assist Disney in meeting its goals are as follows:
- Annual revenues should increase by as much as 10%-15% per year.
- At least 90% of workers must fulfill or exceed their performance targets annually.
- Employees’ commitment to a company can be strengthened when given a voice in its organization.
- Three years from now, the company’s annual review should be at least 30% more than the financial revenue created this year.
Approach with leadership for performance
Disney uses a transformative style of leadership to inspire creativity in its workforce. To date, Disney’s inventive accomplishments in the entertainment sector and the company’s prominence as a market leader may be attributed in large part to this style of leadership (Biron et al. 2021). Walt Disney, the company’s founder and original authoritarian leader changed the company’s approach to management. However, the current management team understands the significance of employee involvement and has adopted a cooperative approach to management. Disney’s top brass work together to steer the company’s many divisions using this approach. Disney’s top executives use a collaborative approach to managing the company’s many divisions. Disney can better adapt its business to the evolving preferences of its target audience because of the combination of a collaborative and transformational leadership style. Therefore, this is an important part of Disney’s leadership style. Thus, this leadership style can assist Disney in realizing its commercial objectives.
Although Disney has historically been effective in resolving commercial concerns, the company may need help due to rising competition and shifting industry conditions. This might be because of ineffective leadership practices or adherence to Disney’s outmoded approach to management. Disney has a well-rounded staff that can solve any difficult business problem. However, the workforce’s capabilities may be controlled efficiently, provided the leadership approach is sound. Thus far, Disney leaders have used the transformational approach, which has proven effective in assisting businesses in developing an adaptable strategy for handling a wide range of situations. However, transformational leadership needs to solve the most pressing problems facing businesses.
Disney’s approach to management is built on encouraging and rewarding staff input. The management team at Disney prioritizes employee participation in a wide range of company-wide activities and decisions. Employees are happy at Disney because they are encouraged to participate. Management at Disney uses a collaborative approach to help all workers succeed in their roles. Disney’s upper management cares about the environment since it directly impacts the company’s bottom line. Working at Disney requires much dedication, but the company’s management style encourages it.
Ethical leadership
It has become clear that leaders’ personalities and methods profoundly impact the performance of their organizations. If a company’s leadership strategy is flawed, its top brass must admit it and take corrective action. However, to help their organizations succeed, leaders need to develop and hone their leadership abilities constantly. The Disney company’s management style encourages staff participation (Wisneski 2020). Management at Disney is committed to fostering an environment where all team members feel valued and heard. Employee involvement is a major reason for the positive work environment at Disney. Management at Disney follows a supportive manner in which they back their employees up as they go about their business. Similarly, Disney’s upper management values sustainability for the financial security it provides. Disney’s committed staff is a direct result of its effective management style.
Disney faces a variety of regulatory environments in the countries where it operates. During this procedure, the Disney Board of Directors revises its corporate regulations to align with federal corporate law (News at The Walt Disney Company – The Official Board, 2022). However, regardless of where an employee may be located, the company’s internal regulations will always be the same. To preserve the company’s international standing, the Disney Board ensures compliance with the laws of every country in which it operates. Disney, for one, has environmental sustainability plans that it developed in compliance with each country’s environmental legislation. Disney is subject to the same financial regulations of the several countries it operates
The current regulatory environment has severely hindered Disney’s success. Disney has been able to preserve its status as a moral business in part because of the rules and regulations that govern it. As a bonus, Disney can better face legal challenges in both the United States and abroad because of the powerful regulatory regimes in those locations (News at The Walt Disney Company – The Official Board, 2022). Because the Board of Directors controls the overall regulatory climate, Disney has been able to adapt to changing business conditions throughout the years. Disney ensures a long-lasting ethical work environment by ensuring all stakeholders, including workers, know the standards that must be followed. Disney’s continued success depends on its ability to navigate the shifting regulatory landscape.
Ethical issues for Disney and their solutions
Disney is facing a moral dilemma over the impact of its expanding theme park portfolio on the environment. Disney’s involvement in deforestation and other environmental challenges comes as the number of theme parks rises (Sebring 2021). Disney has to locate where it will have minimal negative environmental effects. Disney must also employ renewable energy to power its theme parks and other activities to be morally responsible. The company’s ethical problems will be resolved in this manner.
Conclusion
This paper aimed to assess Disney’s leadership style and highlight its positive and negative aspects. Given that leaders are the primary influence on the fate of their organizations, the importance of leadership style cannot be overstated. A corporation has to find and fix its leadership plan’s problems, if there are any. On the other hand, leaders must put in significant effort to develop their leadership abilities to guide their organizations through challenging situations. This analysis aimed to help Disney’s CEO determine where the company’s leadership is succeeding and where it needs improvement. It has been determined that Disney’s recent financial and operational difficulties may be traced back to the company’s antiquated leadership strategy.
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