7

Photo by: Dan Kuta | Source: photocase.com

We don’t see many movies, but recently watched Moneyball, nominated for six Academy Awards, on DVD. To be accurate, I watched Moneyball multiple times. The first viewing was because I was intrigued by the movie’s story, especially since I missed seeing Oakland A’s general manager, and subject of the movie, Billy Beane speak at The Market Research Event several years ago. The second viewing was to capture the rich innovation strategy lessons shared throughout the movie.

With the Academy Awards this weekend (which means #OscarEXP on Twitter) and the start of Major League Baseball spring training, it’s a great time to recap eight innovation strategy lessons in Moneyball and its story of how the Oakland A’s applied a statistically-oriented, sabermetrics approach to baseball strategy and improved performance against much richer teams in the early 2000s.

1. Take advantage of having inferior resources to employ a dramatically different innovation strategy.

The Oakland A’s were faced with a major salary constraint compared to other teams able to spend much more on widely regarded superstar baseball players. As Oscar-nominated Brad Pitt (who played Billy Beane) puts it, “There are rich teams and poor teams, then 50 feet of crap. Then there’s us.” When you have inferior resources, look at your situation in new ways to develop an innovation strategy. That innovation strategy likely includes changing the rules of the game you’re playing.

2. When your market situation changes, you can’t think with old conventional wisdom.

Baseball scouts are characterized in the movie as employing 150-year old guidelines to evaluate baseball talent. Granted, some of the conventional wisdom seems pretty perceptive (i.e., “An ugly girlfriend means no confidence.”) Billy Beane brings his scouting staff up short, however, telling them bluntly that talking like business as usual wouldn’t work. The old rules were making for an unfair game and demanded different thinking. In Billy Beane’s case with the Oakland A’s, the different thinking meant fully embracing a Bill James sabermetrics approach to new baseball statistics.

3. Seek out unlikely experts, especially ones who do their homework.

Oscar-nominated Jonah Hill plays a composite character named Peter Brand, depicted as an underling Billy Beane notices swaying decisions during a meeting with an opposing baseball team. He pursues Peter Brand following the meeting, asking what he does. Brand shares his view that medieval thinking in baseball had created an “epidemic failure” to comprehend why teams win. This misunderstanding led to asking the wrong questions about players. Brand makes a case for major league baseball teams setting their player spending objectives with a new focus – buying runs – since buying runs translates into buying wins. The movie depicts this insight as a turning point along with Beane hiring Peter Brand.

4. Consider many possibilities to find the few winners you need.

When Beane asked Brand to evaluate three potential players, Brand analyzed fifty-one players instead. By having a rich pool of possibilities, Brand armed himself and Beane with multiple scenarios when various players became available through free agency or potential trades. The extensive pool of vetted, prioritized possibilities provided options, flexibility, speed, and negotiating leverage that three player evaluations options wouldn’t have offered.

5. Ask rich, on-target questions to unleash real creativity.

The traditional major league baseball view was for the Oakland A’s to try replacing the apparently high-producing players lost to free agency. Billy Beane challenged his scouting staff that the real need was replacing a departing player’s on base percentage – in the aggregate. In that way, the Oakland A’s could look at multiple, lower-cost players who could deliver the same on-base percentage the departing star did over the course of a season. With the change in strategic thinking, multiple solutions presented themselves.

6. A leader can’t make an innovation strategy happen alone, but he or she does have to take responsibility for it.

The Oakland A’s head scout takes major exception to the baseball team’s new reliance on computers and statistics to make player personnel decisions. His preference is experience, intuition, and the intangibles that had been in use for 150 years. He acknowledged though, “We make suggestions. He (Billy Beane) makes the decisions.” Beane ultimately fires the scout who couldn’t get past his 29 years of experience, and picks a new head scout who hadn’t played the game. The new scout’s lack of experience and preconceived notions about baseball’s conventional wisdom made him a much better fit to implement and not second guess Beane’s statistics-driven strategy.

7. If there’s a sound case for your unconventional strategy, you can’t abandon it at the first sign of challenges.

Early in the season when the Oakland A’s made their unconventional player personnel decisions, the team went on a significant losing streak. With the pressure mounting, Beane went to bat for the team being on plan, even though it trailed in its baseball division. When Oakland A’s manager Art Howe deliberately thwarted the strategy’s ongoing implementation by refusing to play the players Beane had assembled, Beane got rid of the players, essentially burning the boats, so there was no choice but to implement the intended strategy.

8. When competitors catch up, the rules will change again.

The Oakland A’s had early success using a Bill James sabermetrics approach, but didn’t win the World Series using the approach. Additionally, they never had the success that the Boston Red Sox, who actually hired Bill James, had using the approach to win its first World Series in decades. Since 2006, the Oakland A’s have not had a winning record, a symptom, potentially, of money coming back into play as more teams adopt a sabermetrics approach.

Did you see Moneyball?

What other innovation strategy lessons did you glean from the movie? – Mike Brown

The Brainzooming Group helps make smart organizations more successful by rapidly expanding their strategic options and creating innovative plans they can efficiently implement. Email us at info@brainzooming.com or call us at 816-509-5320 to learn how we can help you enhance your strategy and implementation efforts.

 

If you enjoyed this post, make sure you subscribe to my RSS feed!

Mike Brown

Founder of The Brainzooming Group, and an expert on strategy, creativity, and innovation. Mike is a frequent speaker on innovation, strategic thinking, and social media.

More Posts - Website

Follow Me:
TwitterFacebookLinkedInPinterestGoogle Plus

7 Responses to “Innovation Strategy Lessons from Moneyball”

  1. Jim says:

    Love #8 – wrote a post about this too. You have to be able to change again and again as the market changes and catches up to your innovation. Love it.

  2. Chuck says:

    Mike,I saw moneyball on a flight in January from Dallas to London. Was so impressed I watched in on the flight back. Your points are spot on. Only other thing I would add is that sometimes one has to get involved with the tactics in order to reinforce the strategy. Both Billy Beane and Peter Brand talked to the players, arranged for things that would improve morale, good good advice and solid critiques. All in alignment with their strategy.Chuck

Trackbacks/Pingbacks

  1. Batter Up! Ten Moneyball-Inspired Innovation Roles by Woody Bendle | The Brainzooming Group | Strategy Consulting and Strategic Planning - February 28, 2012

    […] Bendle checks in today with an add-on to last Friday’s post on innovation lessons from Academy Award nominee Moneyball by highlighting ten innovation roles inspired by […]

  2. Creativity and Innovation Lessons from Desperate Housewives | The Brainzooming Group | Strategy Consulting and Strategic Planning - March 28, 2012

    […] actress Nicollette Sheridan’s character unexpectedly. In court testimony, Cherry explained that amid a tight production budget, part of his consideration for the death was the salary a major character commanded could be spread […]

  3. Innovation Blocks-Taking the NO Out of Business InNOvation | The Brainzooming Group | Strategy Consulting and Strategic Planning - June 16, 2012

    […] resources are limited, there are opportunities to change the innovation game in your […]

  4. Film Review: Moneyball (Or: “How can you not be romantic about baseball?”” | Don't Compromise - December 3, 2012

    […] writers came to very different conclusions about the lessons that we can draw from the film. Brainzooming saw a film about innovation strategy; Fast Company saw a film about recruitment and management; […]

Leave a Reply