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46 The Disney Way
Now Wilson was admitting how close he had come to making “a big mis-
take.” After experiencing the Dream Retreat, he, too, was pleased and excited
about the initiative and, in fact, wanted to bring the process to “the Hill,” the
term used to describe the various administrative functions that support the
monastery.
One step had led to another in the unfolding of events. Father Carl’s pre-
retreat enthusiasm and his strong belief in the value of the change process had
captured John Wilson’s attention. After listening carefully and participating
in the retreat, Wilson came to share Father Carl’s enthusiasm. Through the
leadership of these two, the plan for cultural change was communicated to
the entire staff and to the board of directors and has now taken root through-
out the organization. “We benefited greatly from the changed culture,” said
Gerald. “Many of our people have remained with us for years, and are con-
tributing to our new dreams to do things differently in keeping with our new
kind of customer. Through all the rebuilding…our values, what the product
stands for, and how we want to do business remain unchanged.”
Believing in Innovation
For Walt Disney, innovation was second nature, which is one of the reasons
he was such a strong leader. Our definition of leadership, in fact, revolves
around the ability to create and manage an environment for innovation. But
as we’ve discovered over the years, too many managers find the idea of inno-
vation downright scary; some even react as if we are suggesting a revolution
without a cause. Another common reaction is that of the CEO or vice presi-
dent who, while looking completely self-satisfied when we mention innova-
tion, remarks, “We have one of the best R&D divisions of any company in
the country. It’s their job to come up with new products.”
Our response to this statement is that R&D product innovations rarely
change the whole culture of a company. Innovation is a three-legged animal
that must encompass product, service, and process. In terms of product,
innovation not only means making something entirely new, but perhaps
rethinking how the old works or how it is used. Process innovation leads to
improvements in the way the product is produced, and service innovation
changes the way the product is integrated into the entire organization.
As we remind our clients, the goal of every organization should be to
encourage innovation at all levels and in all functional areas, not just R&D. But
in order for everyone in the company to become an innovator, the leadership