Supply Chain Management Review

Robert A. Rudzki

How is Disney beating the odds?
May 16, 2008

Transformation relates not just to supply management heading toward world-class status. Transformation can apply to other, more fundamental themes – themes that ultimately affect the health and longevity of an enterprise.

Readers of this column may recall some of the research findings that I reported a few months ago (which you can read by clicking here, here, here and here). Those research findings were based on the nine principles outlined in the book Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise.

Disney is a fascinating example of the powerful impact from following the nine principles, starting with establishing a true corporate purpose. In Chapter 3 of Beat the Odds, I noted that Disney under prior CEO Michael Eisner had lost sight of its corporate purpose, and had suffered the consequences. I also examined the early indications that Disney under new CEO Bob Iger had re-discovered and re-committed to its corporate purpose.

Corporate purpose: Theoretical, academic baloney, or valid foundation for an exceptional enterprise? Consider this: if you had invested in Disney when Iger made his early pronouncements relating to Disney’s purpose, you would now have a gain of about 40 percent on your investment. That compares to an increase in the S&P 500 index – during the same period – of about 16 percent.

Hmmm, 40 percent increase versus 16 percent increase. Maybe there is something here…

More on “beating the odds” in my next posting.

Posted by Robert A. Rudzki on May 16, 2008 | Comments (0)