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Disneyland’s Most Preventable Tragedy

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0:01

This is the Big Thunder Mountain

0:02

Railroad,

0:07

a mine train roller coaster rattling

0:09

down the tracks at 45 kmh.

0:15

One guest will not make it through this

0:16

next ride alive.

0:28

Disneyland calls itself the happiest

0:30

place on earth.

0:31

>> This kingdom of fantasy and imagination

0:34

is the happiest place on earth.

0:36

>> Life-sized movie characters, blissful

0:38

kids, and carefree parents. Safety on

0:41

the rides is supposed to be the park's

0:42

top priority. But something has changed

0:45

over the past few years. During the Big

0:48

Thunder Mountain Railroad crash, riders

0:50

suffer broken ribs, facial cuts, and

0:53

painful chest injuries. One person dies.

0:57

And this is not the only fatal accident

0:59

in the park.

1:01

How did this happen? How did the

1:04

happiest place on earth turn into a

1:06

nightmare? At the turn of the

1:08

millennium, we talked to journalists,

1:10

engineers, and writers to piece the

1:12

story together. It seemed like every

1:15

couple of weeks there was some new

1:17

headline of some horrible thing that

1:19

happened at Disneyland. He warned them

1:21

in writing several times and they

1:24

ignored him. They ignored him because it

1:26

didn't fit into their proposal.

1:29

>> As it turns out, these accidents were no

1:31

unfortunate coincidence. They appear to

1:33

have been the result of calculated

1:35

corporate cost cutting and disastrous

1:37

negligence by the staff. And at the

1:39

center of it all sits one of the world's

1:40

most powerful consulting firms,

1:44

McKenzie.

1:46

Confirm.

1:51

My first time I visited Disneyland was

1:54

in the summer of 1969.

1:56

Uh I was uh 6 years old. I just remember

2:00

the feeling of being someplace unlike

2:03

any place I'd visited ever before in my

2:06

life. It was it was truly a magical

2:09

feeling. For many, a trip to Disneyland,

2:12

California is a lifelong dream,

2:14

something they travel from all over the

2:16

world to experience. Walt Disney, the

2:19

legendary founder of the Entertainment

2:20

Empire, once said, "I don't want the

2:22

public to see the world they live in

2:24

while they're in Disneyland. I want them

2:26

to feel they're in another world."

2:28

Disneyland is just able to tap into

2:31

something that no place else has.

2:34

combination of joy, nostalgia,

2:38

innocence,

2:39

color, light, music, all with a a story

2:44

personalized for each person uh playing

2:46

in the background that sews it all

2:48

together through familiar images and

2:50

characters. This is David Koik. He's

2:54

written several books about Disneyland,

2:55

and over the years, he has interviewed

2:57

around a thousand Disney employees.

2:59

Disneyland California opened in 1955,

3:02

and for decades, it was considered one

3:04

of the safest theme parks in the world.

3:06

In 1991, an expert magazine even

3:09

recognized the park's facilities

3:10

division as the world's best maintenance

3:12

organization. But at some point, others

3:15

start calling the shots.

3:18

This is Paul Pressler. He's been

3:20

Disneyland California's top executive

3:21

for 3 years now. On paper, the numbers

3:24

don't look bad. The parks division is

3:26

turning a healthy profit. But Presler is

3:29

determined to squeeze out more because

3:31

Disney stocks aren't doing so well.

3:33

>> He wanted to impress the board and the

3:36

way you do that is by cutting expenses.

3:38

It's the quickest way and the way to do

3:40

that was by cutting maintenance.

3:43

>> That's Walt Bogdanic, a New York Times

3:45

journalist. We interviewed him and his

3:47

colleague Mike Foresight for this video.

3:49

They co-authored this book, a key source

3:52

for our research. You'll find the link

3:54

in the description.

3:56

Presler is a former toy industry

3:57

executive and known as a hard-nosed cost

4:00

cutter. And for that, he brought in help

4:02

from McKenzie. McKenzie is one of the

4:04

most prestigious consulting firms in the

4:06

world. The company hires only the best

4:08

of the best. Clients pay up to $1,200

4:12

per hour for their expertise. Now, a few

4:14

of those consultants have drawn up a

4:16

plan to make Disneyland even more

4:18

profitable. And today, they're pitching

4:20

their ideas to Prestler.

4:23

They spent over a year studying every

4:24

facet of Disneyland looking for ways to

4:27

cut costs.

4:28

>> Initially, uh, McKenzie and company came

4:31

in and targeted the maintenance division

4:34

that was known as one of the most

4:37

respected facilities divisions of any

4:40

company anywhere. And yet, the

4:43

consultants aimed to slash the

4:44

division's budget by 25%. Mainly by

4:47

cutting staff.

4:50

To do that, they borrowed a concept from

4:51

the aviation industry called reliability

4:54

centered maintenance or RCM. The idea is

4:56

that maintenance decisions should not be

4:58

based on the intuition of experienced

5:00

employees, but on the analysis of repair

5:02

histories and breakdown rates. According

5:04

to McKenzie, the resulting increase in

5:06

efficiency would allow the park to let

5:08

go or transfer about half of its

5:09

maintenance staff, and that would save

5:11

Disney up to $16.9 million per year.

5:14

Presler goes on to put many of those

5:16

recommendations into practice.

5:19

In the past, maintenance workers were

5:21

each assigned to one specific ride,

5:23

which they ended up knowing inside out.

5:25

Now, they're floated between several

5:26

attractions to maximize efficiency.

5:29

Also, most maintenance workers are

5:31

transferred to the night shift. Only a

5:33

small emergency response team remains to

5:35

handle mechanical breakdowns during the

5:37

day. That way, the mechanics can work

5:39

undisturbed after the park closes its

5:41

gates. Moving more folks to third shift

5:45

probably made some sense, but not moving

5:49

almost everyone because there are many

5:52

things that can't be done in the middle

5:55

of the night when it's dark and cold and

5:58

wet. You're not going to effectively

6:00

painting a building in the middle of the

6:02

night. Many employees complain it's a

6:05

harsh change for people who've worked

6:06

days almost their entire lives. Many of

6:09

them were devastated by these changes.

6:12

To suddenly have your working conditions

6:15

worsened by tenfold. You know, if you're

6:18

working suddenly graveyard shift and

6:20

never able to see your family, being

6:23

exhausted on your job, being rushed

6:26

through what you had to do. McKenzie

6:30

responds by granting all overnight

6:32

workers a free annual subscription to

6:33

the Working Knights newsletter. It

6:35

features leading experts sharing shift

6:37

work wisdom on nutrition, sleep, and a

6:39

healthy family work balance. To no

6:41

avail, according to David Koig, more and

6:44

more employees are soon being treated

6:45

for high blood pressure and other stress

6:47

related symptoms. Night work

6:49

significantly increases the risk of

6:50

chronic health issues and is simply not

6:52

very healthy. So, management brings in

6:55

psychological counselors. They advise

6:57

insightful suggestions such as to use

6:59

caffeine to stay alert and have their

7:01

loved ones videotape daytime family

7:03

activities so the workers can stay

7:05

connected to them.

7:09

Robert Clrike is part of Disneyland's

7:11

maintenance crew. One day he's

7:13

interviewed by a McKenzie consultant to

7:15

review his routine on the Big Thunder

7:16

Mountain Railroad. The consultant asks

7:19

him, "Why do you inspect the lap bars

7:21

every single day? Those are the

7:23

restraints that hold passengers in their

7:24

seats." And according to Mackenzie's

7:26

data, they have never failed.

7:29

>> And the maintenance workers said, "Well,

7:31

the reason there's no accidents is

7:33

because we check the lap bars every

7:35

day." And it was almost as if, you know,

7:38

we're not going to do if we were an

7:40

airline, we're not going to do

7:41

pre-flight checks because we haven't had

7:44

accidents in a while. In 1997, Close

7:47

Strike sent an internal memo to warn his

7:49

supervisors. the ongoing staff shortage

7:51

and labor distribution could no longer

7:53

guarantee effective daily preventative

7:54

management.

7:55

>> He warned them in writing several times

7:59

and they ignored him. Um they ignored

8:01

him because it didn't fit into their

8:04

proposal which was look cost cutting if

8:07

we do it in a rational way is a good

8:09

thing.

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in the description to get started. Back

9:02

in 1997, Cluster Strike is concerned

9:05

that the new system can no longer

9:06

guarantee proper maintenance. And

9:08

unfortunately, time will prove him

9:10

right.

9:12

But who exactly are these consultants

9:14

and how do they work?

9:25

This is Eric Edstrom. He holds an MBA

9:28

and a master's degree in environmental

9:30

science from Oxford. Edstrom has served

9:32

as a soldier in Afghanistan. He returned

9:35

disillusioned and is now determined to

9:37

make a difference. He wants to help

9:38

fight climate change. McKenzie promises

9:41

him exactly that. Dream with me for a

9:44

second. What if we could be the largest

9:46

private sector catalyst for

9:47

decarbonization in the world?

9:48

>> To change the world, make the world just

9:50

a little bit better place.

9:51

>> To bring a new future to life, doing

9:53

something that's meaningful to our

9:56

clients and ultimately the societies

9:58

they act on and being an enabler for

10:00

that kind of change. That is change that

10:03

matters.

10:07

In 2018, after working for another

10:09

consulting group, Edstrom joins

10:10

McKenzie, he's full of energy and

10:12

optimism. If there's one thing McKenzie

10:15

does very, very well, it's recruit the

10:17

best and brightest

10:22

from elite universities uh in Europe and

10:24

the United States and in Asia as well.

10:26

They appeal to young people, really

10:29

bright people, you know, with a very

10:30

attractive package that you'll be able

10:32

to learn about uh business in the world,

10:34

and you might also make a positive

10:36

difference in the world. It's about

10:38

money.

10:39

>> McKenzie is one of the most coveted

10:41

employers on the planet. Each year,

10:43

nearly a million people apply for just a

10:45

few thousand spots. Only about 1% make

10:48

it in. The firm claims to serve 90 of

10:51

the top 100 corporations worldwide.

10:54

McKenzie also advises governments around

10:56

the world from ICE in the US and the

10:58

German Defense Ministry to past stints

11:00

with Saudi Arabia and Russia.

11:03

>> They're doctors for companies. They're

11:05

corporate doctors. That's how they like

11:07

to view themselves. In the most simple

11:08

terms, they have knowledge that for many

11:12

reasons companies pay for and they pass

11:15

on that knowledge for good or ill uh to

11:18

their clients.

11:21

Hiring McKenzie means getting support

11:22

from a small army of exceptionally smart

11:24

and highly trained advisers. These

11:27

consultants help managers with some of

11:28

their most challenging tasks acquire

11:30

other companies, drive innovation, or

11:32

cut costs. Or at least they try to help.

11:36

One of the problems is that when you

11:39

hire McKenzie, you're hiring young

11:42

people who don't have experience. You're

11:44

hiring people who don't know your

11:46

industry and you're paying them a lot of

11:48

money because supposedly they have this

11:51

genius because they're McKenzie. They

11:53

know what to do, but often they don't

11:55

know what to do and frankly they're just

11:57

doing what management tells them to do

12:00

because management doesn't want to take

12:02

responsibility for layoffs or for cost

12:04

cutting. So, it's easier to say, "Hey,

12:06

well, McKenzie told us to do it."

12:08

>> Disneyland chairman Paul Presler and

12:10

McKenzie go on to form a highly

12:12

profitable alliance. The consultants

12:14

deliver good numbers which appear to

12:16

legitimize the layoffs and budget cuts.

12:19

Meanwhile, Presley continues to climb

12:21

the ranks inside Disney.

12:27

The effects of the rigid cost cutting

12:28

slowly start to show throughout the

12:30

park. Paint is peeling here and there.

12:33

Rides break down more often. And when

12:35

the lights on Main Street go dark, no

12:37

one replaces the bulbs anymore.

12:39

>> Most of that preventive maintenance was

12:41

gone. And it was just sort of emergency

12:44

lastm minute slap dash get this thing

12:46

working in the middle of the night

12:48

maintenance. Uh things were breaking

12:49

down constantly. The late '9s you would

12:52

walk through Disneyland and it would be

12:54

a third of the attractions could be

12:56

closed. Unfortunately um there were

12:59

consequences for these many decisions of

13:03

moving to people in charge who didn't

13:05

necessarily have a familiarity with how

13:09

to operate the attractions.

13:13

Christmas Eve 1998. Lann Dawson is 33

13:16

and works as a software engineer at

13:18

Microsoft. He and his wife and son are

13:21

standing in line for a ride called

13:22

Rivers of America. The Colombia, an

13:25

old-fashioned river boat, is approaching

13:27

the dock.

13:29

According to David Koig, management

13:31

significantly reduced the number of crew

13:32

members to the bare minimum of three.

13:35

Today, one of them is running late.

13:37

Another colleague agrees to fill in at

13:39

the last minute. She's standing at the

13:41

dock holding a nylon rope and ready to

13:43

dock the ship. Disneyland's safety

13:45

protocol says she should wait until the

13:47

Columbia has fully stopped and reversed,

13:49

but she's new to the section of the

13:51

park. 2 months ago, she completed a

13:53

10-day crash course covering seven

13:55

different attractions. She has never

13:57

docked the Columbia before and has not

13:59

been trained to operate the ride. The 4

14:01

kg iron cleat on the ship's hole is

14:03

loose. The wood around it is rotten. She

14:06

throws the rope too early. The ship is

14:10

still moving

14:12

and the cleat is torn from the ship.

14:16

It shoots back towards the dock and hits

14:18

the employees foot and ankle.

14:21

Then it ricochets upwards, crushing

14:23

Luendos's school and striking his wife

14:25

across the face.

14:31

The dock is almost immediately cleaned

14:32

by Disneyland personnel. According to

14:34

Koig, they also brief witnesses on what

14:36

to say to the police, but officers don't

14:39

arrive for 5 hours. Apparently, they

14:41

only heard about the accident from the

14:43

paramedics. 48 hours later, Luan Dawson

14:46

is declared brain dead at the hospital

14:48

and taken off his respirator.

14:51

An investigation by the competent

14:53

authority blames the accident on

14:55

inadequate staff training. Several

14:57

employees will later remember having

14:59

noticed the loose cleat and the rotting

15:00

wood around it, but it was obviously

15:03

never repaired. The weak wood is never

15:05

formally identified as a cause of the

15:07

accident. The new regime and the

15:11

McKenzie recommendations had made so

15:14

many cutbacks. Everything sort of

15:16

accumulated into this perfect storm of

15:19

terror. It was horrible. The Dawson

15:22

family sues the park for damages. Disney

15:25

settles out of court and pays an

15:26

estimated 20 to $25 million. The exact

15:29

terms of the settlement are sealed. At

15:32

first, Disneyland reacts by updating

15:33

ride procedures and bringing back

15:35

experienced ride operators across the

15:37

park. But according to David Koig, many

15:40

of these safety measures are quietly

15:41

rolled back soon after. some new

15:44

procedures were instituted immediately

15:47

um as far as uh extra precautions in how

15:50

to operate the ship. But unfortunately,

15:54

many of the most important reasons that

15:56

allowed this accident to happen related

15:59

to the cutbacks, those were allowed to

16:01

continue. It was forgotten because it

16:04

was believed that McKenzie was doing the

16:06

right thing and Disney was doing the

16:08

right thing by listening to them. And

16:10

accidents do happen. I mean that is a

16:12

fact. There's no way that you know a

16:15

company can avoid all all problems. What

16:17

they really tried to do at least try to

16:21

interpret their actions from the outside

16:23

appear to be doing was to protect their

16:26

own bad decisions and cutbacks as to

16:30

sort of cover their backsides.

16:34

>> 2 months after the Columbia tragedy,

16:36

maintenance worker Robert Clustrike

16:38

resends his warning. This time he

16:40

submits it directly to one of the park's

16:42

senior managers. He writes, "I'm

16:44

concerned that the attractions are

16:46

deteriorating even more." Shortly after,

16:49

Clustrike is fired. Disney claims he was

16:52

let go because he refused to work night

16:53

shifts. Claustri himself believes he was

16:56

dismissed for blowing the whistle. The

16:59

cost cutting doesn't seem to slow down

17:00

Paul Presler's own ascent. By the time

17:03

of the Columbia accident, he had just

17:05

been promoted to president of the entire

17:06

Disney theme park division. But this is

17:09

only the beginning.

17:12

In 2000, a 4-year-old boy named Brandon

17:14

Zucker falls out of a spinning car on

17:16

the Roger Rabbit cartoon spin. He's

17:19

trapped under the following car and

17:21

stuck there for 10 minutes before first

17:22

responders can get him out. Brandon

17:24

suffers severe brain damage and can

17:26

never walk or talk again. He dies at

17:29

just 13 years old.

17:31

There's no evidence that ties the

17:32

accident directly to the cost cutting

17:34

measures, but an official investigation

17:36

once again cites grave mistakes

17:38

committed by the staff. Brandon Zucker

17:40

should never have been seated closest to

17:42

the cutout entryway of the car. Also,

17:44

ride operators probably failed to

17:46

properly lower his lap bar. It stands to

17:48

reason that better training might have

17:49

prevented the tragedy from happening. To

17:52

my knowledge, the experts from McKenzie

17:55

Company that were brought in, none of

17:57

them had any theme park experience. They

17:59

were all folks who were trained in doing

18:02

business better in general. In a sense,

18:05

that's what Disney really wanted. Their

18:08

company had been run by theme park

18:11

experts since its founding 40 years

18:14

before. McKenzie is hired to solve

18:16

problems and make companies better. But

18:19

better in what way? Better for whom?

18:23

McKenzie has made a lot of money working

18:24

for the tobacco industry. It has advised

18:27

authoritarian governments and has helped

18:29

the ICE department in the US quote

18:30

unquote optimize its detention and

18:33

deportation processes. But perhaps the

18:35

most haunting example is this one. Since

18:37

the mid90s, US pharmaceutical company

18:40

Purdue has been selling a drug called

18:41

Oxycottton. The company said it had a

18:44

low risk of addiction, but that claim

18:46

turned out to be false. As of 2004,

18:49

McKenzie was deeply involved in helping

18:51

produce turbocharged sales of the highly

18:53

addictive opioid. One strategy involved

18:56

identifying which doctors were most

18:57

likely to generate the biggest increases

18:59

in oxycottton prescriptions if actively

19:01

targeted by Purdue's sales force. We

19:04

know all this because McKenzie admitted

19:06

to it in court. McKenzie also helped

19:08

Purdue avoid problems with the US Food

19:10

and Drug Administration. The FDA also

19:13

happened to be one of Mackenzie's

19:14

clients.

19:15

You know, not only was McKenzie working

19:18

with the regulator and then the

19:20

industries, but also sometimes it was

19:22

the same consultants doing that work.

19:25

The same consultants would be advising

19:26

the Food and Drug Administration in the

19:28

United States, and they would also be on

19:30

a project with an opioid maker.

19:34

>> Since 1999, more than 850,000 people in

19:38

the US have died from opioid related

19:40

overdoses. Purdue isn't the only

19:43

culprit, but the company played a major

19:45

role in fueling America's opioid crisis.

19:47

Eventually, thousands of opioid lawsuits

19:49

were filed against Purdue Pharma and its

19:51

owners, the Sackler family. They agreed

19:54

to a $7.4 billion settlement after

19:56

previously paying $5.5 billion in fines.

20:00

The company is now bankrupt. McKenzie

20:02

spent years shaping Purdue strategy.

20:04

Walkbanage says they've always used the

20:06

same exact excuse to dodge any sort of

20:09

responsibility. They can always say and

20:12

have said that we just gave advice, we

20:15

didn't give orders. They can always slip

20:17

out of responsibility by saying that

20:19

well we recommended it but we didn't

20:22

carry out the orders. And that worked

20:24

for a long time until the opioid crisis.

20:29

We were able to look at thousands and

20:31

thousands of documents about that case

20:33

and it really did present a picture of

20:36

these McKenzie consultants that were

20:38

working extremely close with the

20:41

management. They were part of the team

20:43

and the result was that they did have to

20:46

pay a price.

20:47

>> In 2024, McKenzie paid over $600 million

20:50

to settle investigations into its role

20:52

in the opioid crisis. The Firm since

20:55

apologized for its involvement. The

20:57

statement can still be found on its

20:58

official website. It reads, "This

21:00

terrible public health crisis and our

21:02

past work for opioid manufacturers will

21:04

always be a source of profound regret

21:06

for our firm." The statement also

21:08

emphasizes that the company introduced

21:10

comprehensive compliance reforms. And

21:12

yet, McKenzie even advised Purdue Pharma

21:14

on how to counter emotional messages

21:16

from families who lost members to opioid

21:18

overdoses. The firm also admitted to

21:20

this in court.

21:22

We don't know if Mackenzie offered a

21:24

similar service to Disney after. Well,

21:34

by now more and more Disneyland

21:36

employees are speaking up against

21:37

McKenzie.

21:40

But hey, doesn't every business try to

21:42

optimize?

21:46

And what's the big deal with making the

21:47

park more efficient?

21:50

Sure,

22:00

you can't please everyone during a

22:01

transition like this,

22:07

and McKenzie only ever gives advice. The

22:10

final shots are always called by the

22:11

park's management.

22:28

Marcelo Torres dies at only 22 years

22:31

old. His best friend was seated next to

22:34

him and survives severely injured. Nine

22:37

other passengers are hurt in the

22:38

accident.

22:40

That morning, staff at Big Thunder

22:42

Mountain Railroad had noticed a strange

22:43

noise coming from the train, but they

22:45

didn't know how to respond and ended up

22:48

hesitating too long.

22:52

Taurus's family sues Disney and

22:53

investigators step in. They conclude the

22:56

accident was the result of poor

22:58

maintenance and insufficient staff

22:59

training. But the family's lawyer goes

23:02

further. This was not just one mechanic

23:04

making a mistake. This was really

23:06

systemic to how they were running the

23:07

park.

23:11

There's still a lot we simply don't know

23:12

about the Disneyland case, like which

23:15

consultants were involved, which of

23:16

their recommendations were actually

23:18

implemented. Neither Disney nor Paul

23:20

Presler responded to our questions.

23:22

McKenzie denies any responsibility for

23:25

the accidents.

23:26

One of the biggest mysteries is the

23:28

maintenance system known as RCM, the

23:30

method the consultants borrowed from

23:31

other industries. RCM is considered a

23:34

gold standard in aviation, nuclear

23:36

industries, and railroad infrastructure.

23:38

So why didn't it work at Disneyland?

23:41

>> Sometimes that might be done as we would

23:43

say you know in English in cookie cutter

23:45

fashion and you know the same solution

23:46

for for different industries. Uh and so

23:50

you know perhaps what went wrong is they

23:52

tried this cookie cutter approach uh to

23:54

Disneyland that might have worked for

23:56

another industry but it it it didn't

23:58

work uh there.

24:00

>> Disney is not a normal factory. It's not

24:03

an assembly line where you can just take

24:07

things from other industries and say,

24:09

"Oh, well, what worked there in this

24:12

produce factory is going to work in

24:15

operating the Indiana Jones Adventure."

24:18

We reached out to Marius Bassin, one of

24:20

the leading experts on reliability

24:22

centered maintenance. His company,

24:23

Aladdon, owns the trademarks for two

24:25

major RCM protocols. Basson doesn't know

24:28

all the technical details of what

24:29

happened at Disneyland, but he strongly

24:31

doubts that RCM was applied correctly.

24:34

He thinks that in theory RCM could work

24:36

in a theme park environment. But he also

24:38

writes if RCM is used to reduce costs,

24:41

it is probably applied incorrectly. RCM

24:44

or reliability centered maintenance is

24:46

not cost- centered maintenance. The

24:48

problem with most RCM program

24:49

implementations is that senior

24:51

management and stockholders want to see

24:52

immediate benefits and cost reduction.

24:55

We don't know if RCM was applied

24:56

incorrectly at Disneyland or it's just

24:58

used as a pretext for cutting costs or

25:01

whether it was the wrong approach to

25:02

begin with. What we do know is that many

25:04

people believe the cost cutting measures

25:06

recommended by McKenzie have played a

25:08

role in the accidents. But was the firm

25:10

ever held accountable?

25:16

Eric Edstrom joined Mackenzie full of

25:18

hope and idealism, but he soon realizes

25:20

that the company was not living up to

25:22

its promises. I joined McKenzie in 2018

25:27

and while I was there I found that the

25:30

projects that were available were not

25:33

anything like what were advertised and

25:35

rather than what you might see on a

25:37

McKenzie website which talks about

25:40

vaccine cold storage or renewable energy

25:44

that in practice is far and few in

25:47

between. He grows increasingly

25:49

disillusioned. He can only watch as

25:51

McKenzie helps fossil fuel companies

25:52

become even more efficient at extracting

25:55

coal and oil from the ground. Even

25:56

though the firm had originally recruited

25:58

him with the prospect of fighting

25:59

climate change, eventually he's had

26:02

enough. He sends out a farewell

26:04

statement that ricochets around

26:05

Mackenzie offices across the globe. We

26:07

know it from the book when McKenzie

26:09

comes to town. As an organization,

26:11

McKenzie seems to talk a lot about

26:13

values and principles without taking a

26:15

valued or principled stand for much of

26:17

anything. In my mind, McKenzie is an

26:19

amoral institution, an organization that

26:21

regularly takes on clients who bring

26:23

harm to others.

26:26

We would have loved to hear Disney and

26:27

Paul Presler's take on the allegations

26:29

made against them. Unfortunately,

26:31

neither responded. We also sent a

26:33

laundry list of questions to McKenzie.

26:35

For example, we were curious about what

26:37

the consultants themselves thought about

26:38

their work at Disneyland. But instead of

26:40

giving concrete answers, McKenzie

26:42

pointed us to a general statement of

26:43

theirs from 2022. There it says that the

26:46

book by Walt Buckdanic and Mike

26:47

Foresight fundamentally misrepresents

26:49

the firm and its work. The statement

26:51

also claims that Mackenzie's clients

26:53

contributed to 80% of global CO2

26:55

reductions in recent years. We can't

26:57

independently verify that number, nor

26:59

whether Mackenzie's work for those

27:00

clients has anything to do with climate

27:02

mitigation. The allegation that

27:04

Mackenzie's work has directly

27:05

contributed to mass layoffs is rejected

27:07

as a stereotype about consultants. The

27:10

statement says that McKenzie is

27:11

typically hired to help clients grow

27:13

their business and expand their

27:14

workforce. The company has supposedly

27:16

learned from its mistakes and invested

27:18

around $1 billion in a new risk

27:20

management and compliance system. The

27:22

firm claims it now has the industry's

27:24

most rigorous client selection policy.

27:26

The statement further denies any form of

27:28

responsibility for the incidents at

27:29

Disneyland. So, we decided to follow up

27:32

again, asking what McKenzie had to say

27:34

about the many reports, suggesting the

27:36

firm's recommendations did play a role.

27:38

A spokesman replied, "We aren't

27:40

commenting on whether or not we served a

27:42

particular client, but rather we reject

27:44

the author's attempt to connect our work

27:46

to events and issues that we simply had

27:48

nothing to do with."

27:51

The firm was never sued over its

27:52

connection to Disneyland tragedies. Paul

27:55

Presley left Disney in 2002 and became

27:57

CEO of the Gap clothing chain. He is

28:00

currently the chairman of the board of

28:01

directors of eBay.

28:03

The family of Marcela Torres has reached

28:05

an outofc court settlement with Disney

28:07

for an undisclosed sum. The company

28:09

accepts responsibility for the Big

28:11

Thunder Mountain accident. Torres's

28:13

parents have given $500,000 from the

28:15

settlement to provide scholarships to

28:17

aspiring talents at their son's former

28:19

college.

28:20

Marcela Torres was a graphic artist.

28:24

So, there was just all this bad

28:26

publicity and we were about less than 2

28:29

years away from the 50th anniversary of

28:32

Disneyland. This is 2003

28:35

and the 50th anniversary of Disneyland

28:37

was planned to be the biggest

28:40

celebration the Disney company in any

28:44

facet has has ever had. They knew that

28:47

all cameras that not all attention,

28:50

everything would be on Disneyland.

28:52

Accidents were still relatively

28:54

infrequent, just much more frequent than

28:56

they they had been before. But when the

28:59

Big Thunder Mountain accident happened,

29:02

they realized, "Oh my gosh, what are we

29:04

doing? This has this has got to stop.

29:09

>> Oh my god, Chloe, we're going to

29:11

Disneyland.

29:13

Oh my god."

29:15

>> Disneyland eventually recovered. Since

29:17

2003, no visitors have died due to poor

29:19

maintenance or errors committed by the

29:21

staff. Apparently, with Mackenzie and

29:23

Presler gone, a shift in mentality

29:25

followed. the park returned to its one

29:27

stellar and globally renowned safety

29:29

standards.

29:31

>> And so that come 2005 for that 50th

29:34

anniversary, Disneyland was truly the

29:37

happiest place on earth once again.

29:39

>> In 2022, Disney once again hired

29:42

McKenzie. This time, the consultants

29:44

were asked to identify redundancies and

29:46

cost-saving opportunities across

29:48

Disney's operations. According to the

29:50

Wall Street Journal, McKenzie proposed

29:52

stripping top creative executives of

29:53

control over how their work is marketed.

29:56

And once again, Disney employees started

29:58

to protest against Mackenzie's

29:59

recommendations.

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