Over the weekend, I came across an interesting thread debating if going to a Disney park was “worth it.” As expected from any discussion on the internet, you had both extremes actively represented. On one side, you had people who thought that Disney was a completely overpriced experience and a complete waste of time. On the other side, you had people who thought it was a magical and once-in-a-lifetime experience.
Both sides are correct since the value is in the eye of the beholder. However, it got me thinking about benchmarks. For example, Disney is known for having long wait times at rides, leading them to introduce products like FastPass and VIP tours to avoid the lines.
The long lines show that people value Disney, and there is more demand than supply. Disney could probably charge more per ticket without losing much revenue. Are Disney’s benchmarks for prices too low?
You need to look at your KPIs in your company and ask if you’re working on a suitable benchmark. For example, take employee churn, a hotly debated issue right now. Companies operate with the idea that employee churn should be as low as possible. Why go through all the effort of hiring someone and training them to see them leave the company in a couple of years?
However, I could argue that companies need higher employee churn. By bringing in new employees, they also bring in new “blood” and ideas. In a world where markets change rapidly, you need fresh approaches to avoid losing leadership positions. Adding new people to your team can be one of the most effective ways to drive significant cultural changes.
The best companies are starting to realize that long assumed benchmarks may be outdated. You can raise prices without customer backlash. Entire teams can work remotely without a drop in productivity. Perhaps one day, Disney will realize that they can raise their prices to ensure that only those who expect magic come to their parks.