“Moneyball” and Business

A recent article in Forbes draws a relevant correlation between the recent movie on baseball and business. In a nutshell: what truly matters to the endeavor of baseball, and how can we measure what truly matters in business?

The article is worth reading, as we begin our 2011 recap and 2012 business planning and strategic discussions. Two key takeaways for me:

  • We manage what we measure. Historically, good business folks track revenue, cost of sales, ROI, and other “how much” metrics. What the “new world order” needs to also focus on is the ALIGNMENT and integration of our company’s values, behavior and culture. These are the new hard currency of business today.
  • It is not enough to measure the what we are doing and performing – it is just as important to measure the how we are accomplishing as it is the what we are accomplishing. The how becomes the true competitive differentiator.

The article explores how the Boston Red Sox employed a form of Moneyball to win two World Series titles. It is interesting to note they focused on the how and their overall team spirit. In business, the how is also the secret sauce. Successful business leaders get that what we measure within our companies serves as a window into our organizational and cultural values – and into our organization’s long-term financial value too. Take a look in the mirror…it is not enough to measure the what –  the how ensures sustainability and ultimately wins the marathon race.