Are the Boston Red Sox Innovative?
Posted on | June 13, 2009 | No Comments
The Boston Red Sox are a great example of doing the right things, at the right time, to facilitate change and innovation. The Red Sox, if you go back 10 years or so, had several challenges facing them.
A quick analysis looks like this…
- Second Place in the Market (AL East) The evil empire in NY was still the king of the division (Market segment) and MLB (overall marketplace)
- An old stadium that was unpopular with the players (employees) and needed improvements for the fans (customers) to have a better experience
- A business model of trying to compete with the #1 NY Yankees by spending lots of money and trying to copy their strategy without the results
- The model was to go out and try to buy the best available talent or block the Yankees from obtaining the talent
This had delivered exactly ZERO world series titles, but had built a loyal customer base (Red Sox Nation) with limited capabilities for growth within the confines of the MLB business model. To expand reach, generate more revenue and deliver a superior product something had to change…
So what happened?
In 2002 Larry Lucchino hired Theo Epstein, a Brookline, Mass native to work for the Red Sox coming over from the San Diego Padre’s organization where he started his career. This fulfilled a childhood dream for Theo. In Boston, he quickly assumed the GM role for the Red Sox and assembled the first World Series championship team in 86 years in Boston and killed the curse of the Bambino! This is the end of the story… Here is where I see the innovation happening… LEADERSHIP, CUSTOMER FOCUSED STRATEGY and NEW OPERATING MODEL CREATION.
- LEADERSHIP – The Red Sox took a risk and hired the youngest GM in the history of MLB. They were told this was a bad move, that it wouldn’t work. He did not have the skills or the chops to do the job and compete with the evil empire in NY. They saw the potential and he very clearly articulated his goals and vision for the future. The Red Sox did not hire a resume. They hired the skills, the brain, the vision and WHAT CAN YOU DO FOR ME? not what have you done for someone else.
- CUSTOMER FOCUSED STRATEGY – The Red Sox also simultaneously began overhauling Fenway Park. They added more seating (revenue) and they updated the look and feel of the park (customer experience & demand generation). This is key to their customer strategy. Fenway is a destination. It is a big part of the business model. Have you tried getting a Red Sox ticket during Theo’s reign? The Red Sox now deliver a consistent, high performance product that meets and exceeds customer expectation (THEY WON A WORLD SERIES). This is a nice look at understanding who your customer is and building a truly customer focused strategy.
- NEW OPERATING MODEL - Theo was also able to shift the Red Sox focus inside. His foresight to the fact that you could not continue to win the war by just spending money on talent was well timed. Theo began to build a farm system that has produced some of the top Red Sox big leaguers on the roster including Kevin Youkilis, Jon Lester, Jonathan Papelbon, Dustin Pedroia, etc… This shift to the development of talent is a huge competitive advantage in MLB right now. The business of baseball is very complex with labor relations, free agency, revenue sharing, etc… To be able to produce a superior product consistently, retain the talent developed and have sustainable growth and success is truly difficult. This operational model shift has enabled the Red Sox to do this. They were first movers and it has given them a distinct advantage in the market. It has put them in position to build a dynasty. Not to mention the players like the culture they work within, they like their customers and are dedicated to the mission. (Except for Manny of course. I would consider that managed turnover!)
Hopefully this provided a fun lens to think about something other than the daily business page and gain a better understanding of change and innovation.
Innovation is the process and outcome of creating something new, which is also of value! (- Paul Leonardi, Northwestern University)
Let’s Go Red Sox!….. Let’s Go Red Sox!……
Tags: Baseball > Customer Focus > Innovation > Leadership
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About Coley
Coley Perry is a 15 year veteran of the sales and marketing grind. Most of his experience is in and around the intersection of sales, marketing, change management, technology and business process helping clients solve business problems through innovative solutions and consulting. He has built sales teams, go-to-market strategies, demand generation engines and sustainable revenue streams. Currently his passion is focused on the convergence of sales, marketing and technology. He wrote a lot of checks to Columbia College and Northwestern University but learned the most from The “Second City” Training Center in Chicago where he studied the Art of Improv.
