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Disney (DIS) in the customer service training business

Walt Disney Co. (NYSE: DIS) has a unit called the Disney Institute. It trains workers and management from other companies and government agencies. Recent customers include Miami International Airport, General Motors Corp. (NYSE: GM), IBM (NYSE: IBM), and the IRS.

The corporate culture at Disney of emphasizing customer service and attention to detail "are transferable across industries, across cultures, and across different sizes and shapes of organizations," the head of the Institute told The New York Times. A typical trainer at the organization has averaged 10 years with Disney.

But, operating the training company may be be in Disney's best interests.

Disney's revenue in the June quarter was over $9 billion. The parks and resorts segment brought in $2.9 billion. Most of the company's "trainers" for consumer services undoubtedly come from this unit. Does it really benefit the company to move managers from such an important business so that they can train people at other companies.

The revenue from Disney Institute is not material enough to show up in the Disney 10-Q.

Why is Disney training management at other companies? There probably is not a good answer for that. And, it is a bad idea. It takes resources away from a critically important part of the company.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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Last updated: May 27, 2012: 07:04 AM

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