Goal

1. Success in football isn't luck, it's strategic management

The ball doesn't go in by chance.

Strategic management is key. In football, as in business, success is not a matter of luck but the result of careful planning, analysis, and execution. While chance events can influence individual matches, consistent success over time is achieved through strategic management. This involves understanding the industry, developing a clear strategy, building a strong team, and making informed decisions.

Data-driven approach. Successful clubs use data and analytics to inform their decisions, from player recruitment to tactical choices. For example, research has shown a strong correlation between a team's wage bill and its league position over time. This demonstrates that investing in talent strategically can lead to consistent success.

Long-term perspective. Winning clubs focus on building sustainable success rather than chasing short-term glory. This involves:

• Developing youth academies to nurture talent
• Investing in infrastructure and training facilities
• Building a strong brand and commercial operations
• Creating a positive club culture and identity

2. Understand your industry to compete effectively

If you want to be successful in a human activity first you need to understand the logic behind that activity then reinterpret that logic and adapt it to new situations and challenges.

Industry analysis is crucial. To compete effectively in football or any industry, you must first understand its unique dynamics, key players, and underlying economics. This involves analyzing:

• Market size and growth potential
• Revenue streams and business models
• Competitive landscape
• Regulatory environment
• Value chain and profit distribution

Football's unique characteristics. The football industry has several distinctive features that set it apart from traditional businesses:

• Emotional connection with fans
• Weekly public judgment of performance
• High-profile, young, and expensive workforce
• Success measured by sporting results, not just financials
• Regulatory bodies that also compete (e.g., FIFA, UEFA)

Global perspective. As football becomes increasingly globalized, clubs must understand and adapt to different markets and cultures. This includes considering:

• Fan demographics and preferences in various regions
• Local regulations and business practices
• Cultural nuances in communication and marketing

3. Develop a clear strategy and execute it consistently

Once we have chosen, we must be loyal to it, stick to our plan, and direct all our energy toward its implementation.

Strategic clarity is essential. Successful clubs have a clear understanding of their identity, goals, and competitive advantages. This informs all decisions, from player recruitment to commercial partnerships. Examples of different strategic approaches include:

• Global brand-building (e.g., Manchester United, Real Madrid)
• Youth development focus (e.g., Ajax, Barcelona)
• Efficient player trading (e.g., Porto, Lyon)

Consistent execution. Having a strategy is not enough; it must be implemented consistently across all aspects of the club. This requires:

• Aligning all departments (sporting, commercial, operations) with the overall strategy
• Making tough decisions that may be unpopular in the short term but support long-term goals
• Regularly reviewing and adjusting the strategy as needed, while maintaining core principles

Virtuous circle. FC Barcelona's turnaround strategy in 2003 illustrates the concept of a "virtuous circle":

1. Invest in the team to improve performance
2. Better performance leads to increased revenue
3. Increased revenue allows further investment in the team
   This approach helped Barcelona more than double its revenue in five years and achieve significant sporting success.

4. Build a winning team with talent, commitment, and balance

(commitment × balance)talent

Talent is fundamental. In football, individual skill and ability are crucial. Clubs must identify, acquire, and develop top talent to compete at the highest level. This involves:

• Scouting networks to identify promising players
• Effective youth academies to nurture homegrown talent
• Strategic recruitment of established stars

Commitment drives success. Raw talent is not enough; players must be highly motivated and committed to the team's goals. This requires:

• Creating a positive team culture
• Setting clear expectations and goals
• Providing appropriate incentives and recognition

Balance is key. A successful team needs a mix of different skills, personalities, and roles. This includes:

• Tactical balance (e.g., attackers, defenders, playmakers)
• Experience balance (veterans and young talents)
• Personality balance (leaders, workhorses, creative sparks)

5. Adapt leadership style to team needs and dynamics

The most resilient leaders adapt themselves to the characteristics of the group they are leading, rather than insisting that the group adapt to the leader's way of thinking and working.

Flexible leadership is crucial. Effective leaders in football, as in business, must adapt their style to the team's needs and circumstances. This involves:

• Assessing the team's current state (talent level, motivation, cohesion)
• Choosing the appropriate leadership approach (e.g., directive, delegative, coaching)
• Adjusting style as the team evolves or faces new challenges

Leadership archetypes. Successful teams often benefit from a mix of leadership styles:

• Visionaries: Set ambitious goals and inspire the team
• Dr. Nos: Provide pragmatic balance and risk assessment
• Backbones: Execute plans and maintain team cohesion

Continuous adaptation. As team dynamics change over time, leaders must be willing to evolve their approach. For example, a new coach might start with a more directive style to establish authority, then transition to a more collaborative approach as the team gains confidence and cohesion.

6. Recruit wisely and nurture talent for long-term success

To enable the AFA (Argentinean Association) to decide whether or not to travel to Australia to play in a friendly game, all criteria should be taken into account, including income and costs.

Holistic recruitment approach. When signing players or staff, consider multiple factors beyond just technical ability:

• Cultural fit with the team and club
• Adaptability to new environments
• Personal character and motivation
• Potential for growth and development

Long-term talent development. Investing in youth academies and talent development can provide significant benefits:

• Cost-effective source of players for the first team
• Potential for high-value player sales
• Strong connection between club and local community

Balancing act. Clubs must balance:

• Short-term needs vs. long-term development
• Star signings vs. homegrown talent
• Immediate impact vs. potential for growth

7. Master the art of negotiation in a high-stakes environment

Negotiations need to be prepared using rational analysis and taking emotions into account.

Preparation is key. Successful negotiation in football requires thorough preparation:

• Research market values and comparable deals
• Understand the other party's motivations and constraints
• Set clear objectives and walk-away points
• Prepare multiple scenarios and alternative options

Manage emotions. Football negotiations often involve high stakes and intense emotions. Effective negotiators must:

• Remain calm and professional under pressure
• Recognize and manage emotional triggers
• Use emotions strategically when appropriate

Cultural awareness. In an increasingly global football market, understanding cultural differences in negotiation styles is crucial:

• Anglo-Saxon approach: More direct, email-based, efficient
• Latin approach: Emphasis on personal relationships, face-to-face meetings

8. Innovate by identifying and meeting unarticulated needs

Innovation consists of applying an idea that satisfies an unarticulated, unmet consumer need.

Look beyond the obvious. True innovation often comes from identifying needs that consumers haven't yet articulated. This requires:

• Observing fan behavior and experiences closely
• Thinking creatively about potential improvements
• Challenging conventional wisdom and industry norms

Balance innovation and tradition. In football, innovation must be balanced with respect for tradition and club identity. Successful innovations often:

• Enhance the fan experience without alienating core supporters
• Improve team performance while maintaining playing style
• Increase revenue without compromising club values

Encourage creative thinking. Foster an environment that supports innovation:

• Encourage diverse perspectives and ideas
• Allow for experimentation and learning from failures
• Reward creativity and risk-taking within reasonable bounds

Last updated: November 2, 2024