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Re-imagining Walt Disney Imagineering: Will the coming staff cuts actually save this division of the Walt Disney Company from itself?

Re-imagining Walt Disney Imagineering: Will the coming staff cuts actually save this division of the Walt Disney Company from itself?

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The good news is ... Bob Iger has reportedly signed off on a rescue plan for Disney's California Adventure.

According to those who are familiar with this theme park revival project, Disney's new CEO has agreed (in principle) to spend hundreds of million of dollars over the next decade in order to turn DCA into a worthy companion for Disneyland. As one Disney insider who was privvy to these plans recently told me:

"The scope & scale of the DCA revival plan is unprecedented. We're talking about complete redos of certain sections of this theme park. In 10 years time, you won't even be able to recognize the place."

The bad news is ... I can't tell you who will actually be handling the redesign & retheming of this troubled theme park.

"But that's an easy question to answer, Jim," you say. "Disney's Imagineers will -- of course -- be handling the redesign & retheming of Disney's California Adventure ... right? After all, these are the guys who have handled every other theme park that the Walt Disney Company has built around the world over the past 50+ years. So it just makes sense that WDI would be right in the middle of this DCA revival project ... right?"

Well, that's assuming that Walt Disney Imagineering -- as we know it today -- still exists when work officially begins on the California Adventure overhaul project.

The way I hear it, WDI may soon be undergoing a pretty significant overhaul of its own. One that could see the theme park design arm of the Walt Disney Company laying off virtually all of the artists and technicians that still work for this Glendale-based operation. With WDI then emerging as more a project-management-based organization. With only a handful of artists & executives remaining on the payroll who can then initiate new projects for the parks.


Copyright 2006 The Walt Disney Company

What's that you say? "Bob Iger wouldn't dare downsize Walt Disney Imagineering." Well, the fact of the matter is ... After a year of carefully examining all of the Walt Disney Company's business units, Iger realized that something had to be done with WDI.

You see, right now, there's this rather poisonous culture that pervades 1401 Flower Street. One that actually encourages key employees there to engage in corporate in-fighting. Continually furthering their own political agendas while -- at the same time -- throwing all sorts of obstacles in their rivals' paths. Given this sort of working environment, is it any wonder that Walt Disney Imagineering rarely (if ever) these days actually delivers a new ride, show or attraction for the theme parks on time and/or under budget?

To be honest, while Disneyana fans may think of the Imagineers as the ultimate practioneers of the theme park art, among those who actually work within the themed entertainment industry ... Well, they have a very different opinion of the guys who work at WDI. As one industry vet recently told me:

"Nobody wastes money like Walt Disney Imagineering does. On virtually every project that those guys work on, they wind up blowing through wads of cash. But they rarely give Disney its money's worth."

That sounds pretty harsh, don't you think? Well, maybe you'd better understand the themed entertainment industry's attitude toward WDI if I cited a specific example. Take -- for instance -- last year's THEA award-winning redo of Movie Park's old "Looney Tune Adventure" attraction.

In just six months time, with a budget of only $3 million, Thinkwell Design & Production was able to repurpose this tired old indoor water dark ride and turn it into the most popular attraction at that German theme park. "Ice Age Adventure" features over 50 new audio animatronic figures, new special effects as well as a brand-new musical score inspired by 20th Century Fox's 2002 CG blockbluster, "Ice Age."


Photo courtesy of Google Images

Now let's contrast this Movie Park, Germany attraction redo with WDI's recent revamp of DCA's old "Superstar Limo" attraction. As they transformed this Hollywood Pictures Backlot dark ride into "Monsters, inc. Mike & Sulley to the Rescue!," the Imagineers pretty much did what the folks at Thinkwell did. They kept the attraction's original ride system in place. They installed new AA figures, sets and effects along the existing ride track. WDI even commissioned a brand-new soundtrack for this revamped DCA attraction. Which celebrated Pixar Animation Studios' 2001 release, "Monsters, Inc."

The end result was that -- just like "Ice Age Adventure" at Movie Park, Germany -- "Monsters, Inc. Mike & Sulley to the Rescue!" quickly became the most popular attraction at Disney's California Adventure. But the real difference between these two revamped dark rides was that "Monsters, Inc. Mike & Sulley to the Rescue" wound up costing the Walt Disney Company over 10 times what Movie Park, Germany spent on its "Ice Age Adventure" redo.

According to company insiders that I've spoken with, Walt Disney Imagineering spent almost $35 million on its "Superstar Limo" revamp. With most of the money which had originally been budgeted for the design & construction of this new DCA attraction not going toward the actual ride. But -- rather -- being applied to WDI's high overhead costs. In particular the enormous salaries that many key Imagineers earned while working on this particular project.


Photo courtesy of Google Images

Given WDI's poisonous corporate culture (Not to mention how free some Imagineers seem to be with money), Bob Iger has reportedly decided that it's time to make some pretty significant changes at 1401 Flower Street. Similar to those 650 jobs that will soon be cut at Walt Disney Studios as Iger radically revamps operations on that side of the Mouse House, rumors are now flying that Bob is looking to let 200-300 people go from Walt Disney Imagineering. Which would effectively gut this division of the company.

"And what would happen after that?," you query. Well, according to what I've been hearing, Iger would leave only a few key executives & creatives in place at WDI. And these folks ... Well, they'd then have to rebuild Walt Disney Imagineering as more of a project-management-based operation. Where artists & designers would only be hired to work on a particular project and then let go as soon as their assignment was complete.

Which I know sounds kind of cruel. Like it's the end of an era at the Mouse House. But the harsh reality is ... This is pretty much the way that the rest of the themed entertainment industry actually does business these days. With artists & designers only being hired on a per-project basis.

And given how fiscally irresponsible WDI historically has been (EX: WDW's Pleasure Island. By the time construction of this night-time entertainment complex was complete in 1989, that project was 300% over-budget) ... Well, by going this route, Mickey might actually start getting his money's worth out of the folks that design his theme parks.

"And when might the Mouse get around to officially announcing this radical reorg of WDI?," you continue. Well, the way I hear it ... This announcement is coming sooner rather than later. Folks that I've been talking with say that Disney's PR flaks are looking at the end of August / beginning of September as a possible time to drop this particular bombshell. Maybe even attempting to take advantage of the long Labor Day weekend so that this sure-to-be-controversial announcement winds up getting lost in the news cycle.

One thing's for sure. Disney wants to time its Imagineering redo announcement for that six-to-eight-week period when John Lasseter is officially away on vacation with his family. That way, WDI's new Principal Creative Advisor avoids being associated with the coming bloodbath. Which means that John can still be seen as one of the good guys. The man who's going to help turn Walt Disney Imagineering back into the sort of organization that Walt himself used to work with.

Which (in case you haven't already realized it yet) was a much smaller organization way back when. Walt had fewer than a hundred men & women on WED's payroll back in the early 1960s.

Of course, this restructuring of Walt Disney Imagineering is supposed to be a key component of Bob Iger's new "Return to Quality" program. By cutting staff levels at WDI as well as reducing wasteful spending on the design & construction of new rides, shows & attractions for Disney's theme parks ... Iger's hoping that things will eventually turn out to be a whole lot better for the Walt Disney Company. In the long run, anyway.

You know? Sort of like that 10-year-long, hundreds-of-millions-of-dollar approach that Bob is reportedly taking toward the repair & revitalization of Disney's California Adventure theme park?

Mind you, I'm imagine that the Imagineers who will soon be losing their jobs will have a rather different take on what Bob Iger's planning on doing with WDI. But what do you folks think? Given Imagineering's current corporate culture as well as its continuing problems with project and/or money management, is this sort of radical surgery really necessary in order to save the patient?

Your thoughts?

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  • Wow-I'm impressed with this article/blog

    I was an internal concept designer at WDI a few years working on Tokyo projects ...and a few other things that I can't say.
    But the 'overall' culture was really bad, (my dream was to work at WDI), although there are many projects and key individuals that are amazingly great - the looming threat of layoffs and 'old-school' corporate middle-managers who raid budgets with their overhead costs, killed nearly all of the really cool projects due to estimated costs..
    All of us designers/illustrators have been working for years now on a consultant basis for WDI and others as - and get paid much, much more, and still get to work on the really cool stuff without the internal drama. So overall I'm not unhappy at all. I applaud Iger for getting his nose in there.

    I really think the press will have a field day criticizing Iger/Disney just for the headline “Disney lays off Artists”. When it should be something more like “Iger/Disney cleans out the old, highly paid- middle-manager rats!”
  • I think this is a good move if they can reduce costs (salaries) and increase quality. My big question is the poisonous culture, is that a byproduct of the Eisner years, or did it start to manifest during the Card Walker/Ron Miller years? Imagineering needs to remember it's the guest experience, not their paycheck, that's important. I had no idea that Imagineering was in such bad shape. It's a shame.
  • I have to admit that I have been yawning a lot when returning to Disney to see new attractions and/or rehabs. I used to see WDI's creations as being "state-of-the-art", but after visiting other parks, I've found they have really slipped in keeping up with the Jones. I'm not saying that there isn't any good ideas coming out of WDI anymore, but as the artical said, everything ends up over budget and corners get cut.
    If cleaning house is needed, then fire up the vacuum. It's been a lifelong dream to become an Imagineer, but lately I'm not so sure that freelancing for any park wouldn't be a better career path.
  • "Grimsby said:
    WDI and their work is one of the key facets that keeps a Disney theme park from becoming a Six Flags hodgepodge. "

    True, but as you pointed out, the corporate landscape is littered with thousands of people who have worked for WDI over the past 50 years who have since moved on to other things.  Even with that reality, there's a pretty noticable distinction between Disney theme parks and Six Flags.

    Disney theme parks are unique and different because of their design philosophy.  Disney isn't going to begin building bare-bones steel coasters just because of organizational changes at WDI.  By the same token, just because there are another 200-300 freelance former WDI staffers out on the streets doesn't mean that Cedar Point will begin construction on "Dog Talk with Snoopy" (get it?) ;)

    I have to admit I was pretty shocked to hear that WDI has so many people on salary.  With cuts of this magnitude, they could easily be losing 100K - 200K in annual salaries and benefits alone.  

    I just selfishly hope that these cuts don't impact some of the great books published lately like Jason Surrell's works and the MK and Epcot pocket guides.  
  • WDI today and Imagineering of the 60's are 2 different companies.  I don't like the ideo of cut backs but I understand corporations and know how bloated the bottom line can become with overhead costs.  This doesn't happen overnight, but very slowly grows over decades.  WDI's cost/product is out of line.  The managment is older (they are no longer in their 20's and 30's).  Its time to reorganize .

    Imagine what could be done if their costs were cut in half (and I believe they can be).  They could have built the new Monster's Ride and rethemed the entire entrance for the same cost.

  • "Nobody wastes money like Walt Disney Imagineering does. On virtually every project that those guys work on, they wind up blowing through wads of cash. But they rarely give Disney its money's worth."

    Replace WDI with WED, and you would have heard this from Roy Sr and several studio folk in the 50's and 60's. Imagineering has never been popular with the rest of the company.

    Unfortunately, the constant layoffs and firings during the Eisner years have stifled creativity and led to a political atmosphere of survival - so a thorough flushing of the system may be the only option left.

    I did wonder when I can go to WalMart and get a six foot tall Santa that sings four different songs while his mouth and hands move for $40, why Disney couldn't put any new ghosts in the graveyard, or pillaging pirates without it costing millions of dollars. Sounds like an accounting issue.

    Really?  Is Joe Rhode on the untouchable list?   Cause, I could let him go.  
  • It's sad to hear this. I guess this crushes any dreams I had of becoming an Imagineer in the future. :-(
  • WDWChris said:
    It's sad to hear this. I guess this crushes any dreams I had of becoming an Imagineer in the future. :-(

    Actually, there is an enormous growth industry in designing immersive entertainment parks, museums and exhibits based upon Imagineering principles.
    An engineer with an imagination. who understands electrical and mechanical design and installation might be able to carve out a very nice place in the industry.  Imagineering at Disney had turned into a closed shop, now even  Disney will be looking outside the company for Imagineering capability.
  • I have a friend who was just laid off after almost 25 years with WDI, and he would tell you that one of the biggest problems infecting this branch of Disney, is that it's top heavy with the so called "project managers," that is the bean counters who are brought in to keep costs down, but in too many cases, cut to the bone. DCA is a prime example of this- a Disney park done on the cheap, and designed to pump up revenue (which didn't really work)and not entertain the guests. That being said, I do applaud Mr. Iger for realizing that WDI needs to streamline its operations. Perhaps most of the cuts will come in the middle management ranks; from the aforementioned accountants who are incapable of seeing beyond their ledger books.

     The best solution might be to just have a core staff, like Walt had, (Tony Baxter etc..) who are able to work on projects with freelancers, many of whom may have worked for imagineering in the past. And as long as creativity is allowed to flourish again, then maybe, just maybe the changes will be for the best...Besides, it's time that Disneyland got another E-ticket attraction without all the vice presidents and accountants butting in..Thanks, Dland55
  • askmike1 puts his finger on it.  And his look says a lot about whether he can gauge either of the quesitons he asks...  It also seems like a commentary on how much he cares about a loyal, talented workforce's well being.  My two cents?

    Will quality be the same?  Yes and no.  Project based mercenary entertainment designers are interested in keeping their reputations and their interests are often invested with the short term in mind.  Technology will have to be off the shelf because there will no longer be anyone around for the long term to work on a complex ride vehicle, or shudder to think, maintain a history on the design for future maintenance and support.  Construction of goods that require durability will not be designed with that in mind, because its not in the interest of the designer to do so.  His/her lot is thrown in with planned obsolescence, and well no one questions the quality of a faberge egg...  now give one to an interpretive dancer to do a couple of leaps in the air 5 times a day for the throughput and well how long will that last.  Costumes, Rides, Lighting and Sound systems...  they'll all be designed for the highest quality.  They just won't last all that long.  Sorry.

    Will it cost less?  Yes and no.  Project based mercenary entertainment designers charge a lot more money for less time spent on the job, (AS WELL THEY SHOULD given nature of all sorts of costs it takes to run a business... well Disney's going to have to pay for that stuff by proxy anyway). and if you hire them to develop a show or ride they know where the bodies are buried.  A year from now when your skeleton crew of corporate folk need to find a body or two or relocate, duplicate, shift, what have you.  Are they going to be able to find what they're looking for without hiring the same firm?  Probably not.  You will need these people for less time, but the coordination without the standard communications/FTP/authorization structures, or convenience of being in the same building will prove hazardous and can cause costly delays, errors of protocol, and real accounting nightmares.  

    Good luck disney.  Can't say I think its a great way to go
  • Project Mercenary's?   I suppose you mean freelancers and independent producers.  
    You know, like ILM and the majority of small companies who produce the special effects, music, and man the crews for most of Disney's movies.  Quality has absolutely nothing to do with an organizational structure, it has to do with personal commitment to excellence.  

    Disney has relied on outside companies to produce the mechanics for most of their ride systems since the beginning, with Arrow Manufacturing.  These companies do not cut corners, or DIsney wouldn't hire them. They live and thrive based upon  their good reputation .  Yes they run lean, because they don't have a large corporation to carry their burden, but that has no bearing on the quality of work they do.

    Look at Islands of Adventure.  This park puts DCA to shame and it was primarily designed by a small inhouse group who worked with outside design companies (or  Project  based Mercenarys if you prefer).  

    The bottom line is WDI needs some series trimming and reorganization- On all levels.  Hopefully that will include middle management, and spare the younger,creative energy of the group.  
  • The basic problem that this all addresses is that WDI has a variable project menu with a reasonably stable staff.  And the projects that ARE greenlighted do not proceed at a steady pace.  These two factors mean that the workload for each Imagineer is pretty variable.

    Because of the volatile workload, there are times when Imagineers are completely overworked, and times when they are relatively idle.  Most are on salary, so when they are overworked there is no extra cost to the company.  When they are relatively idle, honestly reporting their lack of work just sets off too many alarms.  So most managers insist that they charge their time to SOMETHING.    So projects get charged for employee time when they haven't actually done any work for the project.   This happened all the time when I worked at WDI.

    (Remember, WDI is a matrix organization.  Each employee has a department boss but is also answerable to a project manager.  The department boss wants the employee to charge ALL their time.  The project manager only wants time charged for legit work.)  

    This is where the charge that WDI overspends comes from.  Project managers try to agressively police this, but THEIR bosses don't want to see "Overhead" on ANY timesheets either, so these project managers are forced to tolerate the charges--and then their projects go overbudget.  And then the project managers get blamed for going overbudget.

    The digitheads at corporate have a vested interest in perpetuating this dishonest system because attraction projects go on the books as a capital asset.  All employee time charged to the project become part of the cost of that asset--which means that those costs (part of the capital asset) can be depreciated over time.  Overhead costs cannot be depreciated.  By depreciating those project costs, Disney is able to reduce its profits and thus its corporate taxes.  If the employee time is charged to "overhead" (which would reflect the honest truth) then it cannot be depreciated because its just an operating expense.  The same money gets spent.  There is no difference to cash flow.  But the ability to depreciate project charges reduces taxes and drops more revenue to the bottom line.

    Hiring people on a project by project basis eliminates the problem of idle employees.  In particular, it eliminates the department boss part of the matrix--the people who keep campaigning to charge all employee time to SOME project.

    The model here is obviously the film and TV industry, where people are hired for the duration of a production.  The buzzword for this is "virtual corporation".

    The other upside for Disney is getting rid of all the benefits obligations.  The freelance employees will have to be paid more, but they'll have to put together their own benefits packages--which Disney assumes they'll do more efficiently to remain competitive.

    After I left WDI, I began freelancing.  When I was idle, I wasn't making any money--but at least I didn't have a manager looking over my shoulder insisting I charge time to projects when I haven't done anything (which always felt disnhonest to me).  While it crushed me to be severed from WDI, it was actually more enjoyable working on the projects and I was able to do idebetter work.

    There is some downside to this, however.  This system does not allow for developing new talent.  Tony Baxter was able to enter WDI in dimensional design and advance to a senior producer position.  That kind of career trajectory just won't happen under this new system.  And I think that's a shame.

    It will also probably mean that you will have fewer and fewer people who will be able to specialize in theme parks.  To cobble together enough work, most freelancers will have to spend time in other fields.  You'll have wonderful expertise available when WDI first cuts the cords with everybody.  But my prediction is that overtime the talent pool will deteriorate.  Theme park attractions are complicated things, and people who only dabble in it make many mistakes that people who have focused their careers on it don't.  It takes experience and only doing theme park work part time won't produce enough of it.

    I want to say one last thing about Project Managers.  AND THIS IS VERY IMPORTANT!

    One should not make the mistake of equating Project Managers with the digitheads at corporate.  Project managment MUST be a core skill for WDI.  Project managers are not trying suck the life out of projects.  They are not trying to do things on the cheap.  The best ones work closely with the creative people and show them where they can economize.  They coach the creative people so that the creatives don't make promises (like budgets) that they can't deliver.  And most importantly they keep projects moving, working with the team to idenfity and overcome obstacles.  Empowering project managers empower the team.  The project managers don't like the digitheads any more than the creatives.  What they want are clear objectives.  What they don't like are digitheads who are constantly moving the goalposts.  Yes, some project managers are very demanding.  But then . . . so was Walt.

  • Bad business is bad business.  Without knowing any more than I've read in this article I think this needs to be done.
  • I think doceagle had the last and definitive word on this topic.  He summarized the overhead/ project management problem of WDI and the resulting freelance community very well.
  • Another former Imagineer checking in here!  Well, change is good.  I often compared Imagineering to an old republic...a little wretched excess here and there, wacky patricians, flamboyant waste rewarded and quiet commitment to schedule and budget ignored.....chronyism, egos the size of dirigibles, and political moves that would make Machiavelli envious....and, well...stop me...just stop me.

    The best solution is to hose out the cage and start fresh...with a group who can commit to a new culture.  Believe me, the Imagineers who have been out in the "real world" and designing and building attractions have had all the hubris kicked out of them.  These are the logical contractors to work with...yes, the Kirks are a perfect example.  They know Disney quality, the speak Disney, but they know how to get things accomplished on time and on budget.

    tjkraz said: "With cuts of this magnitude, they could easily be losing 100K - 200K in annual salaries and benefits alone."   Sorry, but 200k is approximately the annual salary of ONE typical middle/upper manager!!!!

    I'm sure all this is a surprise to the fans of Imagineering out there...but it was inevitable.  I can't think of a better move for those design and design administrative folks who are still nervously ensconced in their designer office furniture than to get out here and throw down with the rest of us...it will make them better designers.

    Good luck WDI....come on out!  the water's fine!!!!


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