Summary
Highlights
Host Joe Soto introduces Andrew Lock, his "three-peat guest" and the author of the best-selling book "Walt Disney's Way." Andrew is lauded for his expertise in marketing and particularly his deep understanding of Walt Disney's business principles. His book outlines 17 strategies inspired by Disney's success, tailored for entrepreneurs, business owners, and coaches. Joe highlights that Andrew is exceptionally skilled at decoding Disney's methods for business application and mentions a free training opportunity at the end of the show.
Andrew shares that his fascination with Disney began in 1982, as a bullied teenager at school. While at a doctor's waiting room, he read a Reader's Digest article about Walt Disney. Walt's story, coming from a modest background and being a big dreamer, resonated deeply with Andrew, leading to a lifelong obsession with studying Walt Disney and the company. He mentions having visited all Disney theme parks worldwide over 100 times, with Shanghai being his favorite due to its advanced technology, including the Tron roller coaster which is coming to Disney World in Orlando.
Andrew explains that his motivation to write 'Walt Disney's Way' stemmed from a gap in existing literature. Most Disney books were either biographies or focused on lessons for large corporations. He aimed to provide practical strategies for entrepreneurs and small business owners, based on his decades of study and implementation in his own businesses. The book, a result of three to four years of research, offers actionable marketing secrets and has been well-received globally by business leaders for its practical approach.
Andrew discusses a key principle adapted from Disney: making it easy for customers to do business with you. He emphasizes adapting, not just adopting, Disney's principles. Examples include the seamless flow between shops on Main Street in Disney parks, Walt's idea to remove internal walls, making it easy for guests to drift from one store to another. Another innovation is the Magic Bands, allowing guests to charge purchases to their wrist, eliminating the need for wallets. Disney also offers to store large purchases or deliver them to hotel rooms, removing barriers to buying. Andrew urges businesses to examine their own processes for potential barriers, such as mandatory account registration or limited payment options, citing a personal example of not making a purchase due to a cash-only policy. He also shares a client's story of willingness to pay extra fees for the convenience of using a credit card.
Andrew clarifies the difference between invention and innovation. Invention is creating something entirely new, which is often difficult and risky. Innovation, on the other hand, is building upon existing ideas to make them better. He uses Apple's iPod and iPad as examples of innovation, not invention, as they improved upon existing technologies. Walt Disney, famously, did not invent the theme park; he innovated on the concept after visiting Tivoli Gardens in Copenhagen, which opened in the early 1800s. Walt took notes on its cleanliness, lighting, rides, and overall atmosphere, using it as a blueprint to create a bigger, better Disneyland. Andrew stresses that innovation offers greater opportunities for entrepreneurs than invention, as it's less daunting to improve something existing.
Andrew, able to speak freely as he is not on Disney's payroll, shares significant mistakes the company has made and the lessons derived from them. One major blunder was the initial limited number of hotels at Disney World, resulting in billions of lost revenue. Michael Eisner, then CEO, rectified this, leading to the current 34 resorts and over 30,000 hotel rooms. This illustrates the importance of identifying missed revenue opportunities within an existing customer base. Disney also realized they could offer more premium experiences, leading to the creation of luxury bungalows priced over $2,000 a night. Another mistake was keeping Disneyland closed on Mondays and Tuesdays for maintenance until 1985, costing them hundreds of millions in revenue due to an untested assumption about demand. This highlights the need for businesses to challenge outdated practices. Finally, a fascinating mistake involved a discarded project to create a Disney-themed car. Focus groups revealed that while children were enthusiastic, parents raised concerns about future car crashes potentially damaging the Disney brand, whose number one principle is safety. This led to the project's abandonment, emphasizing the critical importance of customer feedback and aligning decisions with core values.
Andrew addresses how Disney has innovated during the pandemic. The parks, especially Disneyland California, faced prolonged closures. To reassure guests, Disney implemented safety measures like plastic partitions in queues for social distancing and adopted online ordering systems for restaurants to manage crowd flow. A controversial change has been the introduction of a paid 'Lightning Lane' system (replacing the free FastPass), costing $15 per person per day, which has generated some negative feedback from the community. Despite increased ticket prices and this new charge, demand for Disney parks has unexpectedly soared since reopening, surpassing even Disney's own projections. Andrew then promotes his free upcoming live training at thedisneytraining.com, offering nine new lessons, and a deeper dive into his 'Magical Marketing Experience' where he guides entrepreneurs through Disney parks to apply business principles.