The Baseball of Business

Wow! What a World Series! I’m somewhat of a neutral party (being a long time and now long suffering Dodger fan), so I was able to calmly sit back and enjoy the intensity and drama of the Series as it unfolded. And hats off to the Cubs who finally brought the trophy home after 108 years. Chicago is a great town and one couldn’t help but appreciate the joy unleashed after generations of frustration. 

With the NFL becoming such a dominant force in professional sports, it was also great to see baseball come to the fore again and capture the nation’s interest. I’d like to still think of baseball as “America’s game.” It’s interesting that the World Series TV ratings were way up (i.e. best in over a decade) while the NFL is suffering a decline. But that’s a topic for another story…

Getting caught up in the excitement of the Series triggered the thought that the game has many parallels to the world of business. Certainly a lot has been written about the business of baseball (think Moneyball: The Art of Winnng and Unfair Game), but I got to thinking about the baseball of business. WIthout trying to get too deep or scientific about it, here are a few metaphorical thoughts that came to mind while savoring the World Series:

Even the best hitters only get a hit one of three times at bat!

Swinging and missing (aka “failure”) is simply part of the game. The trick is to keep getting up to bat. It’s an oft-stated statistic that only about 1 out of 10 new businesses succeed, so learning from business setbacks is really the key. Try to find a successful entrepreneur who didn’t experience and learn from failure. The World Series highlights this as hitters from different leagues often face new pitchers (and vice versa), studying them and learning from the “failure” of those initial strikeouts and harmless ground balls to gain a later advantage – and that key hit. 

You don’t always have to swing for the fence!

I’ve experienced the challenge of trying to turn around a business with one big bold move as opposed to making some solid incremental changes to get the desired result. Just as homeruns (such as the one that tied the score for Cleveland late in the Series) have their place. But the singles and doubles so often add up for the win. I learned that business lesson the hard way.

It’s about the lineup and the alignment!

Hiring the right talent is obviously critical, but it is only as good as how you deploy that talent. The World Series certainly highlighted this, most notably in regards to pitching. Talent was key, and there was plenty of it, but outcomes were clearly impacted by when and how often that talent was used. 

Business is no different. You know, getting people in the right seats on the bus and all that. That great outfielder won’t help your cause if you’ve got him incorrectly playing in towards the infield such that the ball goes over his head for a double or triple. In your business, do you have your talent in the right position and aligned to your stated goals and strategy?

Know the competition, but play your game!

One of the great things about baseball – and I suppose sports in general – is this balance between knowing your competition inside and out and simply playing your own game. It’s a bit of the leading vs. reacting thing. In business, we certainly have to study and know our competition, but there is a point where leading with your organization’s strengths is critical. If I might digress from the world of baseball for a moment, there is a relevant basketball reference. John Wooden, the unprecedented winning and  iconic UCLA basketball coach was famous for not studying or dwelling on his competition, but simply focusing on preparing his team to play at their best game in and game out.

I see the business equivalent of “playing your game” as developing and executing on a strategy that is unique to your organization. Knowing your competition is a key component – but only a component – of a strategic plan. 

Blend data with intuition!

The aforementioned book Moneyball made a case for the use of data, which of course now permeates all sports. (The NBA’s Golden State Warriors were another case in point where data led to their emphasizing the three-point shot beyond what was considered the norm.) This played out in the World Series, particularly given the impact of players that were acquired during the season in trades designed to fill-in key personnel needs that would be critical for the playoffs. But in the end, it became evident (for both good and bad) that managers’ experience and intuition played out in the lineups and key personnel changes in the games. 

I would surmise that if one studied in detail how the World Series played out over the seven games, it might show that data is what got these teams in the game, so to speak, but the gut instinct of the managers is what determined the ultimate result. 

I propose that business is no different and that finding that balance between data and instinct/experience is the recipe for success. Creativity is part of that experiential mix as well. Viacom, Inc. and its difficulties have been in the news for while now. Was Viacom’s decline a result of a focus on the numbers at the expense of its creative roots?

Every position is critical, but you can’t win without pitching!

Ok, that’s a baseball cliche’ for sure. So where is the business parallel? Well, all businesses have a core competency (or competencies) and successful businesses take the time to fully understand that competency and exploit it. For example, it might be the technical expertise of your firm and the ability to innovate and launch quality new products at a faster rate than your competition. If your tech team is your “pitching staff,” are you allocating resources appropriately during budget planning? Do you have the level of talent to sustain that competency? 

And know the difference between your starters and relievers.

It’s a long season!

While the baseball playoffs and  World Series are always a highlight of the U.S. sports calendar, it is also noteworthy that the baseball season is 162 games. Needless to say, it forces organizations to have a certain degree of long-term thinking. Everyone wants to get to and win the World Series, so a team has to be built for the long-haul required to get there. 

I would argue that successful businesses with consistent growth play the long game as well. Amazon has often frustrated Wall Street with its focus on long-term investments that impact short-term profits. But where would Amazon be today without its investment in distribution infrastructure and Cloud computing/services? Look at Disney’s stunning turnaround in the film business, driven by strategic (and expensive, but long-term) intellectual property acquisitions,

Business leaders face many challenges and pressures from investors, shareholders, and even their own teams, but the best of them don’t get fooled by the enticement of short-term wins and instead look beyond the horizon. 

Interestingly, my team, the Los Angeles Dodgers, now have the highest payroll in baseball. Is this the result of short-term thinking to win quickly? Or long-term strategic thinking and investment to build a winner? Hmm…