Culture Wins, Culture Loses

As sports fans we can all be guilty of taking it too seriously.  We do have a right to voice our displeasure of organizations above and beyond wins and losses.  Born and raised in the Washington, DC I was spoiled as a child growing up in the 1980’s during the Joe Gibbs era with consistent winning football teams including five NFC Championship games, four Super Bowl appearances, and three championships.  I attended two of the NFC Championship games at RFK Stadium as the team was on their way to the Super Bowl.

What has become of the Washington Redskins and possibly your favorite team is an example of ownership what it takes to run a successful sports team.  And I hate to break the news to you that many franchises that are struggling under current ownership may not change anytime soon.

What is unique about the business of sports are that team owners accumulated their wealth in other business ventures and then decided to purchase a franchise.  What distinguishes successful franchises from unsuccessful franchises is not just the talent on the field, but the culture and philosophy that is created to build a team.

In business “culture” is a word that gets tossed around in regards to the importance it has to an organization.  The values and methods of how it conducts its business impacts an organizations employees and the clients/customers they serve.  Sports have a way of allowing us as fan to witness franchises that have put an emphasis on their culture and those that do not.  Certain organizations have a reputation for a strong culture such as the Miami Heat of the NBA and Baltimore Ravens of the NFL.

Robert Sarver, owner Phoenix Suns

The Phoenix Suns were a consistent franchise for many years, but the last few they have struggled.  Owner Robert Sarver recognized what needed to be done to move his franchise back in the right direction.

"For all successful people in business, I think that the notion of taking a step back to take a step forward is a foreign concept," Sarver told Yahoo Sports. "You simply don't say, 'We're going to go backward for a couple years,' in business. But pro sports – especially the NBA – is different, and it's set up to do just that.

Sarver realized what was needed for his franchise.   A top basketball executive, a plan, maybe most of all, someone to restore his franchise's eroding credibility. Boston Celtics Executive Ryan McDonough interviewed for the General Manager position and had a plan for the franchise– his ideas for trades and gathering draft picks, scouting and player development, coaching candidates and player nutrition. Every time Sarver asked a question, there came a crystallized and clear-minded answer. The Suns were a mess, but suddenly Sarver started to see a way out.

Sarver did what many struggling owners are not willing to do, and that is listen to a professional, with proven success lay out a plan and trusts him and the process.

It is early in the NBA season, but the returns have been good for the Phoenix Suns who are surprisingly off to a 19-11 start in a very competitive Western Conference.

The unfortunate aspect of professional sports is there is not accountability for losing.  The Dallas Cowboys and Washington Redskins are rivals on the football field.  But both have billionaire owners who franchise values are at the top of all of sports, but have a bad reputation of how they run their franchises.  Even though the win-loss record is disappointing to fans, their meeting with their accountants goes very well.

Safety Will Allen completed his second stint this past season with the Pittsburgh Steelers.  He was released from the Dallas Cowboys earlier this season before re-signing with Pittsburgh. 

In referring to his experience with Dallas Allen stated, "It was a very micromanaged atmosphere," Allen said to ESPN. "Everything was heightened. Everything was very tight. I didn't feel the relationship and the bonding between players and coaches. Maybe just the players or just a few coaches and a few players."

"We understand that it's a business, but football is a business. Winning is our business. But if we're not a team, if we're not together in it all, then we have nothing. That's the mindset in Pittsburgh.”

Arthur Rooney owns the Pittsburgh Steelers; they have had three head coaches since 1969.  All three have participated in multiple Super Bowls with at least one victory.

Jason Kidd and the Brooklyn Nets

The New York Knicks and Brooklyn Nets have high priced teams going through disappointing starts to the season.  Even though both teams are decimated with injuries to key players they made a decision to go for style over substance.  The Nets have a $200 million payroll with aging players (Kevin Garnett, Paul Pierce, and Jason Terry).  Traded away their 2014 first round draft picks that is projected to be one of the deepest drafts in recent memory. 

Brooklyn hired Jason Kidd as their head coach not soon after he retired as a player and he  “reassigned” his top assistant Lawrence Frank earlier this season for what appears to be his insecurity of not having any coaching experience and Frank being so vocal.   Frank was Kidd’s former head coach with the Nets when Kidd was a player. The Nets created this environment by not taking into account what is the right fit for their franchise especially without Kidd having any previous coaching experience taking over a team with high expectations.

According to James Heskett, culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.”  John Coleman of the Harvard Business Review stated six components of great corporate culture.  Vision, values, practices, people, narrative and place.

Out of those six the Washington Redskins suffer most when it comes to values, practices and people.  For the amount of internal issues to become public doesn’t speak well of the type of culture Snyder has created within the organization.  As Coleman stated, a company’s values are the core of its culture. While a vision articulates a company’s purpose, values offer a set of guidelines on the behaviors and mindsets needed to achieve that vision.

There is not a company that can build a coherent culture without people who either share its core values or possess the willingness and ability to embrace those values.  Besides someone with name recognition like Mike Shanahan or even Joe Gibbs with his second tenure with the Redskins or Robert Griffin III winning the Heisman trophy.  Jason Kidd’s Hall of Fame career as a player and Garnett, Pierce, and Terry’s best days behind them, what are teams like the Washington Redskins and Brooklyn Nets looking for in people besides a name everyone knows. 

Paul Spiegelman, co-founder of the Inc. Small Giants Community, offered up some insights on culture.  There will always be people out there with the skills capable of doing the job. So Spiegelman suggests hiring people that, first and foremost, would work well in your organization. It may take a little longer, but it will pay off in the long term. 

The Dallas Cowboys, Washington Redskins, and Brooklyn Nets are all dealing with issues created by their culture.  Other franchises such as the Pittsburgh Steelers, Baltimore Ravens, and Miami Heat have been consistently relevant with minimal distractions because of their culture.

Phoenix Suns head coach Jeff Hornacek is the prototype of what a successful coach is with today’s players’: no ego, but a steely confidence. He holds players accountable without humiliating them according to Adrian Wojnarnowski of Yahoo Sports.  It is more difficult in this day and age for a coach who is condescending towards his players, media, and fans to be successful.

Teams are under the microscope with the amount of television coverage and social media.  An up and coming coach with the attitude of a Bob Knight or Bill Parcells would struggle connecting with players and the public today.  Mike Shanahan appeared to have that problem in Washington.

So if you are wondering why your favorite professional sports team has been struggling for many years.  You probably do not have to look any further than their culture.  There is a fine line between winning and losing.  Even the best run franchises have their ups and downs, but they stick to their plan and adjust when needed.  Owners need to find and connect with front office and coaches who have common purpose.  My question to some owners is besides winning games do they have a purpose?