Moneyball

One of my favorite authors is Michael Lewis.  I love all his books, his style, and his research.  The book Moneyball by Michael Lewis is a real-life example of success in a highly competitive sports environment with principles that translate well into businesses across all sectors. 

Lewis chronicles the rise of the Oakland A’s and their General Manager Billy Beane, who create success through an analytical, evidence-based culture they created in 2002 with a budget and a goal to make the playoffs.  Beane employs Paul DePodesta, who creates a predictive model on wins and losses based on on-base and slugging percentage (team and opponent).  The algorithm predicts wins and turns the organization (and its process) into winners! 

Business analysts report that companies using data analytics outperform their competitors and steal their clients!  Focused on outcomes and customer experience, engagement and optimization are key takeaways from Lewis’s book.  Doing more with less, creating a budget, and sticking to it (what a novel idea!). 

The A’s and Beane were challenging the status quo, supplanting previous metrics with proven ones.  The book and story told brilliantly by Lewis exposes how organizations are structured, make decisions more effectively, and integrate technology and automation.  The team created a recruiting process based on specific experiences the team was looking for and, as importantly, what they were not looking for (batting averages or RBI’s).  This allowed them to find value in players where others did not see the same thing! 

Finally, how we recruit our future talent and leaders is a lesson learned.  What metrics are you using?  Are they the right ones to determine the outcome you expect?  Are your goals and measurements clear, well understood, and followed? TCM can help you in your business, visit our services page for more about how metrics and data are critical to success. To learn more about Michael Lewis or Moneyball, visit his website.