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    Entries in Sports (107)

    Tuesday
    Oct212014

    Talent Attraction: The Real Reason to Keep Top Talent

    A few months ago I posted a recap of 'Why Stars Matter', a recent study out of the National Bureau of Economic Research that concluded the most important contribution that so-called 'Top Talent' makes to an organization is that they increase the organization's ability to recruit even more Top Talent.

    Here is an excerpt from my piece from April, then I will hit you with the reason why I wanted to revisit this topic today:

    ------------------------------------------------

    A recent National Bureau of Economic Research study titled Why Stars Matter, has attempted to identify just what are these 'top talent' effects. It turns out that just being better at their jobs only accounts for a part of the advantage these high performers provide and that possibly the more important benefit is how the presence of top talent impacts the other folks around them, (and the ones you are trying to recruit).

    Here is a summary of the findings of the 'top talent' effects from HBR:

    The researchers found that the superstar’s impact on recruiting was far and away the more significant driver of improved organizational productivity. Starting just one year after the superstar joins the department, the average quality of those who join the department at all levels increases significantly. As for the impact of a superstar on existing colleagues, the findings are more mixed. Incumbents who work on topics related to those the superstar focused on saw their output increase, but incumbents whose work was unrelated became slightly less productive.

    So 'top talent' (mostly) gets to be called 'top talent' because they are simply better, more productive employees. But a significant benefit of these talented individuals is that they help you recruit more people like them, who in turn also are more productive than average, continuing to raise the overall performance level of the organization.

    ------------------------------------------------------------------------------

    Back to October when we have from the world of sports, specifically the NBA, this effect of 'Top Talent as a recruiting magnet' playing out with one of the league's most well-known and successful teams, the Los Angeles Lakers, and superstars, 5-time NBA champion Kobe Bryant. Except in this case, if Henry Abbott's reporting on ESPN is accurate, the 'Top Talent', i.e. Kobe, is no longer attracting talent, he is in fact, serving to repel other top players (LeBron James, Carmelo Anthony, Chris Bosh, etc.), from even considering joining the Lakers when all three players had that option this off season.

    In Abbott's short video he essentially concludes that at this stage of his career, Kobe's personality, need to take most of the shots, (and claim all of the spotlight), and his past history of not being able to co-exist with other top players has made the Lakers, once the destination of choice for NBA legends like Wilt Chamberlain, Shaq, and Magic Johnson, into a place where no top player will consider playing for.

    It is worth watcing the quick (1:20) report from Abbott, even if you are not an NBA fan, just because it serves as a reminder of what the NBER talked about in their research. Once 'Top Talent' stops serving as a magnet for other top talent, then it is probably time to take a long, dispassionate look at what they are contributing to the organization overall. Not just in what they are producing themselves, but how they might be holding the organization hostage so to speak, if they are keeping away the next wave of star talent you need.

    Happy Tuesday.

    Friday
    Aug082014

    You have to get lighter as you get older

    Recent buzz around NBA circles, (no, this post is not ANOTHER one just about basketball, I promise - just hang with it for a second), has been the off-season weight loss of superstar player LeBron James, (see the new, slimmer LBJ from a crop of one of LBJ's Instagram pics for some visual evidence).

    The general line of thinking around LeBron's trim down this off season is that as NBA players get older (and LeBron is not 'old' in the normal sense, but he does have 10+ years in the NBA at this point), carrying less weight helps to keep knees, ankles, backs, etc. less likely to break down over the course of a long season. It is a pretty simple and obvious realization for basketball players and anyone else really - the less bulk you are dragging around makes it easier on the other parts of the body that are tasked with hauling that bulk. And for us non-NBA players, being lighter makes it infinitely easier to just navigate daily life - hustling through airports, getting in and out of your car, tossing the ball around with little Timmy or the frisbee to your adorable little dog. Being lighter just helps sometimes.

    But I think that advice, You have to get lighter as you get older, doesn't just apply in that literal, physical sense, it also has some value in a mental/emotional way as well. We are not just carrying around with us the physical accumulation of all the bad decisions we might have made at the buffet line or the donut shop, most of us our lugging around a pretty sizable collection of guilt or resentment or disappointment or even clinging for too long to some kind of romanticized version of the past that was probably never that romantic back then, and is certainly not ever coming back even if it did exist once. At work, we might be carrying around the excess weight of outdated processes, legacy technologies, and a history of 'that is the way we do things around here' that may no longer have value or relevance to what you and the organization really needs today.

    Letting go of things, both physical as in a weight loss or with cutting loose material possessions like cars or houses or old clothes, or simply dropping bad habits as a way to move forward is not some kind of new idea or concept, and certainly not one I claim any specific insight towards. It's been talked about and done for ages. But I do think in some ways modern technology and social networks and our tendency to want/need/have to be always connected, makes letting go a little bit harder than it used to be. It seems like sometimes the digital connections (combined with the ease of which most of us can be contacted via these networks), make getting lighter harder than in used to be, and harder than it should be. Someone is always out there on the the end of their iPhone and is either trying to actively hold us back or is just making it more difficult to move forward because we know they're watching. And that kind of stinks.

    But putting that aside, I also wanted to mention that LeBron looks really happy in most of these latest 'Slimmer LBJ' pictures. And while it is easy to say that LeBron should be happy all the time, after all he is a mega-rich superstar athlete, he is underneath it all a person like anyone else. He probably isn't happy all the time, even if most of the rest of us can't relate to that. He also, like most of the rest of us in our careers, need to make changes and adjustments to prepare for the next phase of his career that he is moving towards, one where he will soon be an aging player that needs to adapt to remain on top.  

    If getting lighter as you get older and to move forward works for the most famous athlete in the world it will probably work for you too. 

    Have a great weekend!

    Tuesday
    Jul292014

    The value of keeping the team intact: NBA edition

    Drowned out by the overwhelming amount of fan and media attention that accompanied the recent decision by basketball's LeBron James to leave his team of the last four seasons, Miami, and return to his original club in Cleveland, another team in the NBA has quietly completed the execution of a different kind of talent strategy in advance of the 2014-2015 NBA season.

    The talent strategy? The retention of key players and team leadership. The team? The NBA Champion San Antonio Spurs who recently defeated James and Miami 4 games to 1 in the NBA Finals, thus setting off a chain of events of player movement (starting with the league's best player, James), that is still not completely settled almost two months from the end of the season.

    The Spurs' retention strategy concluded with the re-signing to a multi-year contract extension of the team's longtime coach Gregg Popovich. From the ESPN.com piece announcing Coach Pop's contract extension:

    Gregg Popovich has agreed to a multiyear contract extension to continue coaching the reigning NBA champion San Antonio Spurs.

    Popovich, 65, has coached San Antonio to five NBA titles since becoming the team's coach in 1996-97. 

    The Spurs won their first championship since 2007 last month when they defeated the Miami Heat in five games in the NBA Finals.

    With Tim DuncanBoris Diaw and the rest of San Antonio's key players all set to return next season, it was no surprise that Popovich has signed on for a few more years.

    The long time coach, Popovich. The 'Big Three' star players, Tim Duncan, Tony Parker, Manu Ginobili. All of the important reserve/role players that helped the team vanquish the Heat in a five game series that was for the most part, incredibly one-sided. Everyone that played a key part and made needed contributions to the Spurs' great season and eventual NBA title are returning to the team next season.

    In modern professional sports, the ability to retain so much of the key talent from a championship team is almost unheard of. Individual players, emboldened by their status as 'championship winners', often seek (rightly), to leverage that status into more lucrative contracts with competing teams. Some reserve players get uncomfortable returning to a team where they are likely to remain reserves for another season, thus potentially detracting from their longer term market value. And in sports, just like in any other business, sometimes people get tired of working with each other after a few years, and seek to use the success as a launch pad to something and somewhere else.

    Retention as a strategy is sometimes, perhaps even regularly overlooked in sports and in many other types of organizations as well. Some people like to say retention is an outcome, and not really a strategy in of itself. It could be, but either way that does not diminish its importance and role in long-term organizational success.

    ALL the NBA chatter this off-season has been about where LeBron was going to play next season, what his decision meant for the other stars on Miami, and how these moves impacted the eventual recruiting strategies of the other teams in the league. And while all this talk about player movement, potential trades, and how certain players might fit in with their new teams is fun and interesting for fans, it completely obscures what the most successful organization of the past 15 years has been doing.

    The Spurs led the NBA in victories, won their 5th NBA title in the Popovich/Duncan era by defeating James and Miami in convincing fashion, and then re-signed Popovich and all the important players from that team and NO ONE is talking about them.

    It is because retention is boring. Recruiting is fun and exciting though, so we like to talk about that instead. But retention, stability, and sticking to a winning formula probably gives the Spurs, (and your organization too), a better shot at long term success than chasing elusive talent and not doing enough to convince your home grown talent to stick around.

    Tuesday
    Jul222014

    PODCAST - #HRHappyHour 188 - Live from the NBA Summer League

    HR Happy Hour 188 - Live from the NBA Summer League - Featuring The 8 Man Rotation

    Recorded Live from Las Vegas, Saturday July 19, 2014

    Host: Steve Boese

    Guests: Kris DunnLance HaunMatt 'The Professor' Stollak

    This week on a very special HR Happy Hour Show, the guys from The 8 Man Rotation series of Ebooks on Sports and HR made their annual midsummer pilgrimage to Las Vegas to take in a few days of the Samsung NBA Summer League competition, catch a little music courtesy of Soundgarden and Nine Inch Nails, and record a fun HR Happy Hour podcast over a few cheeseburgers.

    Steve and the boys talked basketball (of course), but also hit upon many of the angles that apply to non-sports contexts as well, and can be relevant to HR, talent management, and building teams of any kind. The NBA Summer League is one of the great, real-life experiments in talent management and development - you have players trying to learn and acclimate, coaches and on-court officials also trying to prove themselves, and you see played out how team executives talent management strategies manifest in how they try to build their teams.

    You can listen to the show on the show page here, or using the widget player below:

    Check Out Business Podcasts at Blog Talk Radio with Steve Boese Trish McFarlane on BlogTalkRadio

     

    Additionally, you can subscribe to the HR Happy Hour Show on iTunes, or for Android device users, from a free app called Stitcher Radio. In both cases just search for 'HR Happy Hour' and add the show to your podcast subscription list. 

    This was a really fun show, (apologies for the background music and the occasional interruption of the waiters), and many thanks to the guys for participating.

    Back to more 'normal' HR content in the next show, we promise!

    See you next year at NBA Summer League...

    Monday
    Jul212014

    NBA Summer League Part 1 - The Relative Value of Talent

    I'm just back from a great 8 Man Rotation trip to Las Vegas to take in a few days of the NBA's annual Summer League and tournament that features 24 teams of rookies, less experienced veterans, and guys trying either to hang on to their NBA dreams just a bit longer, or ones trying to crack that elite 450 or so of players that get to call themselves NBA ballers. It was a super fun trip with the boys, and I will have more on some of the really interesting things we saw, heard, and talked about during the trip, as well as a amusing in a watching a car accident kind of way, HR Happy Hour Show and Podcast I recorded with the 8 Man crew while having cheeseburgers and beers.

    In the run up to Summer League, much of the talk around NBA circles was centered around free agent player signings and player movement in general. Most notably, the league's best player LeBron James made the biggest news when he signed to return to his original NBA team, the Cleveland Cavaliers, which set off a chain of events including his former teammate Chris Bosh re-signing with the Miami Heat for a massive, 5 years and $118M. This Bosh contract led to tons of internet chatter about whether or not in the wake of losing James, that Miami was indeed overpaying to keep Bosh, their next most important player from the last four years, to maintain some semblance of competitiveness in the near term.

    The problem with most of the 'Miami overpaid for Bosh' takes, (and there are plenty of them), is that they usually fail to address the context in which the Bosh contract was given, and the set of circumstances that make Miami's decision to pay Bosh near the maximum amount allowed by the NBA's collective bargaining agreement with the Player's Association. This contextual factors, also apply quite often to the day-to-day decisions that HR/Talent pros have to make every day when tackling compensation issues - either offers to candidates, counter-offers, (probably a bad idea to even try them, but still), and the nuts and bolts of annual compensation package decisions for existing employees. In both cases, these are the kinds of questions that HR pros and NBA GMs need to think about, plus I will hit you with some of the rationale behind the Bosh decision from which (hopefully) you'll see some parallels to your comp-related challenges.

    What's the 'right' salary?

    What, in the classic 'perfect information' kind of economy that academics like to talk about, would be the 'correct' salary' for Bosh? This is close to the market rate, but not exactly the same, as the 'market' for any NBA player, as well as for that Ruby on Rails developer you can't find, is never truly perfect.

    What would the market value (and actually pay) for his/her role, skills, and ability to contribute to an organization?

    This is the classic, 'What did the last 3-5 players similar as we can find to Bosh actually get paid in their last contracts?' question. These numbers create an interesting set of data points that may or may not be relevant to your team. If that last team that signed a 17 and 10 guy like Bosh to an insane contract, does that mean necessarily that you should? Or maybe another team got a relative bargain for a different player (like a Tim Duncan), who at this point in his career is more concerned about winning titles than maximizing his personal earnings, and thus accepted a 'discount' on his deal. Don't think that applies to you? I bet you have lots of employees that turn down 10-20% bumps in salary from competing firms because their 'transaction costs' (moving, pulling kids out of school, learning a new corporate political game, etc.), seems too steep. These employees are probably already giving you the home team discount like we hear about in the NBA. Bottom line, the 'market' doesn't represent you, or anyone other specific firm for that matter. It is just more data. 

    What kind of compensation would this person be likely to get from a specific competitor that might be interested in their services?

    This piece of 'market' data is much more interesting (and valuable). In the NBA GMs often have to factor in what might happen if a given player like Bosh were to end up on a specific rival team, and how that move might impact competitive balance (and chances to win). Overpaying to keep a player away from a specific rival can happen, and might be one of the few times in the NBA, (and possibly your business too), that tossing money at a problem makes sense from a business standpoint. This takes more insight and effort than simply looking at the 'market' rate, and knowing the compensation and business strategies of your rivals.

    What is this person worth to his/her current company or team?

    This is the flip side of the last question - what specific skills, capabilities and knowledge of company-specific operations, products, culture, politics, etc. does the person have that are uniquely relevant to your organization, and need to be factored in to the discussion. With James leaving the Heat, Bosh now assumes the role of the team's #1 star, and the Heat elected to offer him a contract reflective of what #1 stars in the NBA are making. He also knows the city, the coaching staff, the other players on the club, etc. There aren't any 'transaction costs' with retaining Bosh, and there is some value in that. There has been a fair amount of research that suggests that in many fields that employee performance degrades when switching organizations. The amount and importance of local, situational understanding of people, process, and culture can provide employees a performance boost that is immediately lost when they jimp to a new organization.

    Simply put, Bosh was probably 'worth' more to the Heat than to many other teams in the league, and while seeming to overpay him, the Heat might have made the smart move for their own team.

    With Bosh, and with compensation decisions for just about every other important contributor, context matters.