THE ENTERPRISE
Spring is almost here so it's time for a series of related topics. Basketball season just ended, which makes it a good time to reprise a short piece, carved from something much longer that I wrote several years ago about the similarity between basketball and business.
FAST BREAK & MANAGEMENT
Recall the example of the basketball fast break. Teams that use this as a basic offensive weapon must integrate several other parts of their game plan (strategy) with the execution (implementation).
o They must rebound well, which usually means having good rebounding talent (tall, good jumpers at the forward and center positions) who understand the discipline of blocking out the opponent to get the rebound.
o The rebounder must then make a quick outlet pass to one of the primary ball handlers (guards) usually positioned near mid court, another practiced discipline.
o From there the ball handler tries to take the ball to the center of the court, offering the best set of options for passes to other players advancing toward the basket from both the right and left sides.
o Spacing of the players is important, so one defender cannot check (defend) two offensive players.
o Crisp, rapid passes, that are very timely finish the preparation for the shot. The shooter must have practiced shooting lay-ups or shot shots from the running position, since the habit (discipline) of doing this right usually determines the success of the shot.
o A person trailing the fast break (usually one of the rebounders) offers the opportunity for either a last pass and a shot or a rebound of a missed shot. Again, a practiced discipline--being a "trailer"--who often scores a lot of points.
All of this unfolds in 2-4 seconds. Is integration critical? Is discipline critical. You bet. Is this very much like a business model? Sure it is. The right talent, each taking care of its role, selflessly. Maintaining the discipline to be in the right place and the right time, doing the right things. And practice, practice, practice, because what you do in practice, you'll do in the pressure of the game. Then "Attack, every chance you get." Fast breaks demoralize opponents and score points in bunches, winning games. And equally important, if some element of the fast break isn't in place, slow down and get reorganized. Hmmm. That seems to fit business too, doesn't it?
DISCIPLINE
I was thinking about a friend of mine who is a turnaround consultant as I was reading the Wall Street Journal's Wed. edition this week. When he goes into a company, one of his highest priorities is the establishment of discipline--doing the right things, the right (same) ways, etc. There was an article about how some hospitals are getting aggressive about enforcing the need to wash hands. it is one the simplest and most effective ways to limit and control the spread of infections--especially virulent staph infections--and to literally save lives by the thousands. What does it take?
Discipline. Just like the fast break takes discipline. Just like our schools take discipline. And just like companies, that are in serious trouble--and those that aren't and don't want to get in trouble--require discipline of doing the right things, the right ways and at the right times. Is it really that simple, you say? Well, yes it is. Unless there is the discipline to do the right things the right ways--all the time--what is the point of striving to figure out the right things and the right ways?
Shortly after reading the WSJ article, I read a brief about a Rand study of 7000 patients in 12 cities over a four year period form 1996 to 2000. Only 55% of them received the treatment they needed. There was virtually no difference among demographic groups and the insured vs. uninsured. It was simply a lack of the discipline to do the right things, in the right ways, at the right times. Scary, huh?
MERGER MANIA IS HERE AGAIN
Last Monday's WSJ's "What's News" column had 8 briefs about current happenings. 6 of the 8 were mergers. There is too much money looking for places to go, so companies are back into buying each other. History has proven that most of these actually end up destroying shareholder value instead of creating it. It reminds me of my days back in Oklahoma, talking to a rancher about how the ranches were being bought and combined. He told me, "Most of the time, it doesn't make any difference in how good the ranch works. It just makes the spread bigger and harder to take care of."
We've been through cycles like this in the US, and now globalization has made it an international phenomenon. I read about the challenges Pat Russo faces trying to blend the cultures of Alcatel (French) and Lucent (American), both huge companies. She has a truly daunting task. I wish her luck, but I wouldn't bet on how successful she'll be getting a mixture of 88,000 French, Americans and multinationals scattered around the world to agree on anything. Sounds like an awfully "big spread to manage" to me.
INNOVATION WORKS
From Business Week's "Technology and You" section by Stephen Wildstrom.
"There are good reasons competitors such as Dell and Hewlett-Packard have a tough time keeping up with Apple. One is Apple's rejection of rock-bottom pricing. Desire for big orders from low-end retailers such as Wal*Mart has pushed HP and other PC makers to adopt the cheapest hardware platform, leading to $300 desktops and $700 laptops. There's no way to hit that price point and match Apple on design." ... "Apple can focus its energies on what appeals to consumers, especially ease of use and products that please the eye as well as the brain and the budget. The new mini and the MacBook are just the latest happy examples."
I'll add, the reason Apple's stock is flying high and its profits are climbing is that (so far anyway) it has resisted the urge to be anything different than what it is--It's "DIFFERENT." The greatest danger Apple faces is success. As it grows and its new computers can run Intel processors and use Windows software, it must remain true to its "core," (pun intended). But as long as Steve Jobs is at the helm, it will--at least that's my bet. He understands that innovation wins, and being different is good, not bad. Time for all you PC users to try out a Mac. You can tiptoe into the water with the Mac Mini for about $500 and just plug your old monitor and keyboard into its ports, and fire it up. Just follow the prompts. You WILL be surprised. "Vive' le' difference"...from a dedicated Mac user, even when it wasn't fashionable.
THE BIG ONE
Have a great week, and enjoy the arrival of springtime. Me, I'm becoming a ward of the state this week as I have a big birthday and start collecting on Medicare and Social Security--ouch--getting old is hell, but it sure beats the alternative. Besides, at heart I'm somewhere between 21 and 49 depending on when you catch me.
Best, John
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