MEDIA RESOURCES

 

CONTACT: communications@mail.cox.smu.edu

DALLAS, Texas (SMU) - The Disney Institute works with only one MBA program to develop a custom-designed program for its students - SMU's Cox School of Business. In December 2001, Cox MBAs experienced firsthand successful Walt Disney World strategies and tactics for building customer loyalty and increasing customer retention through outstanding service.

The Cox MBA students spent three intensive days studying Disney leadership theories and their actual application within Epcot, the Magic Kingdom Park, and the Disney-MGM Studios. They learned how Disney leadership skills apply to every discipline and function, turning management philosophy into operational reality. At Epcot, the students were put to the test, working as employees for a day to get a hands-on experience of service culture.

"This is where I first realized how serious Disney is about instilling its culture in the staff," said Phillip Youngblood, Cox Professional MBA '03. "If you couldn't give 100 percent, you didn't need to be there."

Creating a strong service culture is a key to improving customers' experience and ensuring that they come back time and again. In today's slowing economy, customers are exercising greater discretion over their spending, looking more carefully for services and products that guarantee a memorable and pleasant experience. The need for a strong and effective service culture is even greater in difficult economic times than in prosperous ones. Disney is one of the world's leaders in developing and implementing customer relationship strategies and tactics. At the Disney Institute, Cox MBAs witnessed how Disney builds and sustains customer relationships, including the vital role employees play in cultivating Disney's "magic" environment.

"The role each employee plays in the park is extremely important, as the guest's experience is entirely dependent on these dedicated individuals," said Allison Wrobel, Cox MBA '02. "As one of our leaders told us, at Disney, 'You are either serving the guest or someone who is.' The people of Disney are incredibly dedicated and talented. They believe in the Disney brand and are proud to work for the company."

In his book The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, Frederick Reichheld estimates that a 5 percent improvement in customer retention rates will yield between a 25 to 100 percent increase in profits across a wide range of industries. With more than 70 percent repeat business, Disney serves as an ideal example of a company that has maintained customer loyalty over the years, creating a customer base that spans generations.

"I believe that one overriding element creates and sustains the Disney Culture - consistency," said Michael Bogda, Cox MBA '02. "You can almost guarantee that every visit to a Disney Theme Park will be pleasant and that all employees will go the extra mile for customers. Families return to Disney World to share an experience that is guaranteed to be memorable and happy. Parents today take their kids to Disney World because it is a tradition that is passed down through generations," Bogda said.

This is the third year Cox MBA students have participated in the Disney Institute custom-designed program. The program continues to allow Cox MBAs to transfer the knowledge gained from their Disney Institute experience directly into the classroom or into any organization. The Disney Institute program is most often targeted toward companies and professional groups. Thousands of professionals from more than 35 countries and over 40 industries have attended business programs at Disney Institute and learned how to adapt the Disney approach for their own organizations.

The customized Disney Institute experience is made possible by the Cox School of Business' Business Leadership Center (BLC). The BLC, unique to MBA programs, has provided Cox MBA students with innovative leadership training programs for more than a decade. The BLC was created to offer Cox MBAs practical training in critical management and leadership skills. Developed through a partnership with more than 30 major Dallas corporations, the BLC offers more than 40 non-credit elective seminars yearly in four primary skill areas: communication and interpersonal skills; building and working with teams; coaching, developing, motivation, and influencing; leading in a service culture; and preparing for academic and career success.

SMU's Cox School of Business offers a full range of business education programs, from BBA and full-time MBA to Professional MBA (PMBA), Executive MBA (EMBA), and Executive Education. Cox is ranked among the top business schools nationally and internationally by major news publications. In addition, the school's Business Leadership Center (BLC), Caruth Institute of Owner-Managed Business, American Airlines Global Leadership Program (GLP), and Associate Board executive mentoring program are recognized nationally and internationally.