Moneyball and the Mary Gloster

 
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I have never been much of a baseball fan. I've never enjoyed the game the way some of my friends seem to. I certainly don't understand it. It's not because I didn't try.

I read George Will's book, Men at Work: The Craft of Baseball. It inspired me to make an effort to understand the game. I figured that if that happened, I would like it more.

But no joy. Even after study and effort, I was still puzzled by how baseball teams operated.

It seemed to my untutored eye that most baseball team owners put their team together by spending tons of money on star players. The stars clumped together with other players and sent out on the field to bring victory.

But, teams with gigantic, government-budget-sized payrolls didn't automatically win. Teams did not finish the season in order of their salary expenditure.

In fact, the Oakland Athletics finished first in the American League's Western Division in 2002 with the smallest player payroll of any major league baseball team. Since I wasn't paying attention, I didn't even notice.

But when Michael Lewis, who is a wonderful writer, wrote a book, called Moneyball, about how they did it, I decided to buy one more baseball book. The book didn't help me like baseball any better. But I learned more about competitive advantage

There were two big reasons why the A's did so well in 2002 with such a tiny payroll. One was that General Manager Billy Beane understood that great teams are made up of the best players you can find and who can do everything you need to win and who fit together synergistically.

The second reason was that the Beane used some sophisticated analytical tools to figure out which players would comprise the best team. Since no other baseball team was using those tools, they gave him a competitive advantage.

That was then. Today everyone is using those tools.

No competitive advantage based on technology or technique lasts forever. Sooner or later your competitors will figure out how to do what you do and your competitive advantage will evaporate.

So what can you do? Let's get help from the poet, Rudyard Kipling.

One of my favorite Kipling poems is "The Mary Gloster." It's very long, but great for reading aloud. My daughters will remember it from when I read them poems before bedtime.

The old shipping tycoon, Sir Anthony Gloster, is dying after a life of great success. The poem is his advice to his ne'er-do-well son. It includes these wonderful lines.

"They copied all they could follow, but they couldn't copy my mind,
And I left 'em sweating and stealing a year and a half behind."

Boss's Bottom Line

When you set about building a team, remember that you'll do best with talented people who can do everything that's needed and who fit together well.

The only sustainable competitive advantage is based on people, complete with their knowledge, relationships, creative energy, and messy humanity.

 

Wally's Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training. Click here to check it out.

 

 

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Comments

  • 4/2/2010 10:17 AM Michael Leiter wrote:
    Wally
    Nice post.
    The poem phrases the point very nicely. And to me it encourages sharing your knowledge promptly and directly to encourage developing even more new ideas to maintain that edge.
    Gotta keep moving.
    All the best,
    Michael
    www.workengagement.com
    Reply to this
    1. 4/2/2010 10:51 AM Wally Bock wrote:

      Thanks, Michael. The whole poem really emphasizes speed of implementation more than anything else. Of course, it was written in the Nineteenth Century. If it were written today, I think it might pick up the information sharing ideas.


      Reply to this
  • 4/2/2010 1:07 PM Joe Bradshaw wrote:
    Wally,

    I loved moneyball, being a life long baseball fan helps some, I think the key to Beane putting together the right team was two-fold, he used different metrics that he saw as meaningful the current statistics kept and spammed on every baseball card don't explain anything about how to put together a team, just gather the stars as you mentioned. But looking at the motley crew that Beane put together for a bargain in 2002 just shows how knowing your people's skills and personalities and how to manage them does more for you than adding a new star employee and just letting them go for it.

    thanks
    Joe
    Reply to this
    1. 4/2/2010 1:28 PM Wally Bock wrote:

      Thanks for those insight, Joe. It's nice to have an actual baseball fan weigh in. You were able to take my insight to the next level.


      Reply to this
  • 4/2/2010 8:46 PM Brandon Stewart wrote:
    Wally:

    Maybe the reason you have not picked up a knack for the game of baseball is because it is just as elusive as the fool-proof method for putting together a successful team.

    With apologies to systems zealots, I believe sports teams (and business organizations) are comprised of one part evidence-based management and one part visceral intuition. Each may be able to achieve success on their own, but together they are a better bet.

    -Brandon
    Reply to this
    1. 4/3/2010 6:35 AM Wally Bock wrote:

      Thanks for adding that, Brandon. I agree that the quest for a "foolproof" method of anything is probably a lost cause. After all, there are lots of fools and a lot of fool in all of us.


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  • 4/5/2010 12:40 PM David Blassingame wrote:
    Thanks!
    Reply to this
  • 4/5/2010 4:48 PM Mike O wrote:
    Thanks for sharing Wally.

    In your Boss's Bottom Line you talk about being able to pick or recruit top talent to be on your team. I agree with this statement, but the example you use with Moneyball and Billy Beane shows how important it is to have a talented leader and a team full of replaceable.
    Reply to this
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