Monday, 29 October 2007

Leadership and Sport - Part Deux

Seeing as I am presently in a "sports" kind of mindset, another potential case study would be the recent handling of the management change at an English football club.

Before we continue, I can confirm that I have no interest in this team (other than abusing close friends who support the team for the team's lack of success) and have no particular axe to grind. Its just reading about this recently, it did lead me to wonder whether this is classic material for a case study on how not to manage change.

For those of you not interested in football (i.e. 260 million North Americans (I am talking about the continent and, so that this is very clear, not bracketing Canadians with Americans in order to avoid a diplomatic faux pas) and some Australasians) the most commercially successful football (soccer) league is the English Premier League. Its watched by millions in the UK and ridiculous numbers in the rest of the world. The aim in this League (apart from winning) is to finish in the top 4 positions in the League, thereby qualifying for very a lucrative intra-Europe competition. Hopefully, the above makes sense.

One of the major clubs is Tottenham Hotspurs (aka Spurs). Spurs are an old established club who have not had success in years - think Miami Dolphins (for the last 20 years) or Boston Red Sox (for about 70 years). Spurs regularly change managers (head coach) (6 in 12 years?) unlike more successful clubs (Manchester United same coach for 21 years (?), Arsenal same coach for 11 years (?). However, in the last 2 years their coach got them to 5th in the League twice in a row, way better than they have done for about 15 years - and had they not had some very bad luck they may have finished 4th. So this summer they spend GBP£40 million (approx €60m or $80m) and look ready to become a really powerful club. Looking good, things progressing on an upwards trajectory, right?

Fat chance.

A couple of days before the season kick- senior Spurs directors are seen in Spain having dinner with a very successful coach. The directors say its a coincidence, the Spanish coach says he has been offered a job (but then back tracks), the club administration "leaks like a sieve" with all leaks agreeing the Spanish coach was offered a job and the press have a field day.

The incumbent coach, behaving with admirable dignity, says that the directors are behind him, while the Chairman of the Directors initially gives the coach very little backing, followed by "total support". Surprisingly enough the club makes a very poor start to the season and any chance of a top 4 position is out of the window. Could it get better?

Well the club continues to leak like a sieve that the coach is on "borrowed" time and will be sacked. The players perform even more badly. Then prior to an important game last week, the radio/tv press report the manager is to be sacked at the end of the game - or in fact has been sacked but is still in charge for this game. the players are even more rubbish, the crowd support the manager by chanting songs for him and abusing the directors. After the match it is confirmed that (despite, I believe, their being a requirement for the UK Stock Exchange to be notified first) that the coach has been sacked. A few days later, the Spanish coach mentioned above is appointed head coach. If it was a soap opera you would not believe it.

This is surely brilliant management in operation? You wait until the last moment and then undermine/humiliate your manager/coach. Then you support him and finally sack him. All the while, the team tipped to do well, are losing lots of games and so have lost any chance of achieving the stated goal.

If you think this all seems pretty incompetent management by a board of directors, well........you join a lot of people.

It is irrelevant whether you think the original coach was good or bad. Its all about how you manage the situation. If the directors thought they wanted someone else, why not do it in May/June when the season is over? Why wait until days before the season begins to approach a new coach? By changing coaches in the summer, the new coach has time to settle in. Also by handling it so badly, you undermine the coach's authority, in effect, making him a lame duck, such that the players could ignore him. Not surprising that the players do not perform, thereby ensuring the main aim for the season cannot be achieved.

This an example that, I think, can be applied to any business on how not change senior management. If you do not show public support for the the Chairman/CEO/director/manager you might as well fire her/him. Also timing and confidentiality are key points.

As for Spurs, who knows if the new coach will meet the directors' aim? What we do know is that the directors look less credible and that the team has "failed". Oh, and they allegedly paid GBP£4m to the sacked manager (his remaining contract for 2 years), compensation to the new managers club and have increased the salary proposition to the new manager (allegedly GBP£4m per year). *

Genius.


*Please note that these numbers are as alleged in the UK papers and I cannot confirm the veracity of these figures.

1 comment:

Unknown said...

Nice post!
There's only one club in North London Dude and this is the Arsenal!

Go Gunners!