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Lessons From the Business of Baseball

by | Apr 3, 2022 | Business Leadership

“I’m not sure how something can be the same over and over and over and over again and yet be so wonderful.”

– Manager Terry Francona on Opening Day

Special Day

That’s baseball manager Terry Francona talking about the Opening Day of the Major League Baseball season. I know what he is talking about. I put a block on my calendar for my team’s Opening Day game.

Quite often, however, I am reminded of the relationship between MLB and me. They are a business. I am their customer. So what can business learn from baseball? I have chosen three franchises – the St. Louis Cardinals, the Atlanta Braves and the Oakland A’s – as examples that small and large businesses can emulate.

Lessons learned

It’s about how you spend, not how much you spend. Oakland has not won a World Series title since 1989, but the team is good more often than not. And they have a tiny budget compared to most teams. How do they do it? You’ve likely seen “Moneyball” if you are a baseball fan. If you have, you know that the A’s value players differently than other teams do. Their metrics are different. They do not use the same measurements that other teams do. They don’t pay the big dollars for strikeouts and home runs and so they don’t pay the big free agent salaries. Instead, they value statistics such as on base percentage, and weighted runs created. Obscure statistics to many, but it works.

So what metrics are your business using? Are you measuring the right things? Giving time and priority to the areas that will make you more profitable?

Consistency and customers count. The St. Louis Cardinals have not had a losing record since 2007 and only two losing seasons in the past 21. The Cardinals’ way is consistent and correct. Although it still is a business relationship, they treat the fan like a valued customer. Have you ever gone to a baseball game in St. Louis? The fans make you feel welcome. The fans are knowledgeable. And the management named the fans recently as the main reason the team is so consistently good. Players want to play for good fans who appreciate them and support them, even when they are down.

So how often have you shown the love to your customers? Your employees?

Responsible and adroit. And finally (while it pains me to say this as a fan of the New York Mets) let’s show some love for the World Series Champion Atlanta Braves. You’ve heard that phrase: “We need to fix the airplane while we’re flying it.” That was Atlanta last year as key players were lost to injury. They could have blamed injuries and packed it in. Instead, the Braves management relied on a deep bench that had been built over the years. And a few key acquisitions that other teams overlooked. And who were the playoff heroes for the Braves last year? Guys who had been dismissed and under-valued by other teams.

So how deep is your bench? Are you building the best managers for the future of your company? Have you looked at the key players of your competitors and wondered what they would look like wearing your jersey?

Perfect for your baseball league’s opening day festivities.

On my Vistage team there are members who have pulled the best players from competitors and identified them as future leaders. They have shown love to their employees by guaranteeing a job to any relative of any employee. They have looked at the market in a different way and even though they had their doubters – they moved in a strategic and successful path.

 

 

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