Playing Moneyball in the Info Economy

There are three types of competitors in the information economy. There is one group who preferred to find the hidden value in their settings and beyond. The second group would rather create value. ... Members of the last group usually possessed the strategic position to wait for the finders and the creators of the value to visit their terrain.

Each group has its positives and its negatives. Today's, we will briefly focus on the topic of finding value.

Abstract
In life, most companies do not have the capability to buy the best talent. Some of them would quietly presumed that they will never be contending for the "Number One" position in their niche. They are usually focused on low risk, low rewards ventures. Basically, survival is the name of their game

Read the Big Tangible Picture (BTP) of Your Terrain and Beyond

Regardless of their business terrain, some principals utilized a risk-cost benefit type of analysis to find a low risk, low cost, medium to high reward talent. While there are others who believed in going to the ground level and "feeling" out the talent . ... There are a few who utilized both approaches "objectively". ... Interestingly, there are "number game" specialists who believed that they can replace their "non quantitative" counterparts with "new and improved" technology. ... Realistically, one can rarely replace the world class strategic experience of "talent hunting" with "new and improved" technology that constantly evolve..

Finding Talented Value at Unidentified Places

Not every brilliant thinker-doers attend the upper tier schools, they could go to the various small schools. Seeking these untapped talent means going to different places and talking to the relevant and experienced professionals. Asking them who is doing academically well and having the "out of the box" type of thinking to innovate. It is also significant to ask for that certain talent who is seeking the opportunity, whether he/she has the inkling to advance to the next level.

Ruminations from the Compass Desk
Ultra class sport strategists (like the late Bill Walsh, Bill Belichick, etc.) have always evaluated the new talent while being mindful of their cyclical value. They have always emphasized on the practice of replacing their run-downed talent one season sooner than one season later.

Regardless of the means for securing value, one must be aware that there is a timeline for everything.Compass Rule: Always be mindful of the seasonal cycle of anything relevant.

Some More Thoughts on Oakland A's Moneyball

If the prowess of the A's Moneyball process were concealed from the public for a few more years, could the A's have repeatedly reached their goal of playoffs? ... At this moment, no one knows. Our experience tells us that it would have given the A's a better possibility for getting better deals. Once the book was published, many teams refused to trade with the A's.

Those who possessed the competitive advantage, usually do not say anything to anyone.

Competing in the Global Economy: The Basics

In our information economy, many companies are struggling to be operationally efficient. Some succeed because of their competitive disposition. They usually seized the opportunity by waiting for their competition to err .

The probable cause for the err is that their up and coming competition usually lacked the understanding of their surroundings and what their competition is actually doing. ...

The Basics

Following is an abridged listing of the reasons behind the "above average" competitors:

• Having a good view of the Big Tangible Picture (BTP);
• Having the willingness to take the time to assess the Big Tangible Picture;
• Having the feeling of competitive urgency;
• Having the economics and logistics to properly compete;
• Operating with a correct flow of pertinent information ; and
• Taking the advantage of the tactical imbalance of time.

If you want to operate with great strategic effectiveness, think about those points. Good luck.

Compass Rule: Protect the Competitive Advantage.

One can only thrive in this global economy by incrementally enhancing their "competitive advantage"

The two most relevant points that some people missed are:

• Identifying what is the advantage
• Determining the protection of the advantage.

Jiang Tai Gong book "Six Secret Teachings" emphasizes "the importance of protecting one's advantage" regardless of the situation.

King Wen asked Tai Gong:"How does one preserve the state's territory?"

Tai Gong said: "Do not estrange your relatives. Do not neglect the masses. Be concillatory and solicitous towards nearby states and control all that is under you. Do not loan the authority of state to other men. If you loan the authority of state to other men, then you will lose your authority. Do not hurt those of lower position to benefit those of higher position. Do not abandon the fundamental to save those that are inconsequential.

When the sun is at midday, you should dry things. If you grasp a knife, you must cut. If you hold an axe, you must attack."

"If at the height of the day, you do not dry things in the sun, this is termed losing the opportunity.

If you grasp a knife but do not cut anything, you will lose the moment for profits. If you hold an axe and do not attack, enemies will attack instead."

"If trickling streams are not blocked, they will become great rivers. If you do not extinguish the smallest flames, there is nothing much you can do when it turns into great flames.

If you do not eliminate the two-leaf sapling, you might have to use the axe to remove it in future." "For this reason, the ruler must focus on developing wealth within his state. Without material wealth, he has nothing with which to spread beneficence or to bring his relatives together.

If he estranges his relatives it will be harmful. If he loses the common people, he will be defeated. "

"Do not loan sharp weapons to other men. If you loan sharp weapons to other men, you will be hurt by them and will not live out your allotted span of years."

King Wen said:"What do you mean by benevolence and righteousness?"

Tai Gong replied: "Respect the common people, unite your relatives. If you respect the common people, they will be in harmony. And if you unite your relatives, they will be happy. This is the way to implement the essential cords of benevolence and righteousness."

"Do not allow other men to snatch away your awesomeness. Rely on your wisdom, follow the norm. Those that submit and accord with you, treat them generously and virtuously. Those that oppose you, break with force. If you respect the people and trust, the state will be peaceful and populace submissive." - T’ai Kung Liu-t’ao (Six Secret Teachings)

More on this topic can be found in the Seven Military Classics of Ancient China.

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Here is a situation where the possible leaking of a trade secret can determine the fortune of a famous food company.

The Downside of Innovation (2): Second Thoughts

Enhancing one's "competitive advantage" is the key to thriving in the global economy.

The two must important steps that most people miss are:

• Knowing the scope of their advantage in terms of basics, technicalities, and cycles
• Knowing the sustainability of their advantage.

Jiang Tai Gong book "Six Secret Teachings" emphasizes "the importance of protecting one's advantage" regardless of the situation.

King Wen asked Tai Gong:"How does one preserve the state's territory?"

Tai Gong said: "Do not estrange your relatives. Do not neglect the masses. Be concillatory and solicitous towards nearby states and control all that is under you. Do not loan the authority of state to other men. If you loan the authority of state to other men, then you will lose your authority. Do not hurt those of lower position to benefit those of higher position. Do not abandon the fundamental to save those that are inconsequential.

When the sun is at midday, you should dry things. If you grasp a knife, you must cut. If you hold an axe, you must attack."

"If at the height of the day, you do not dry things in the sun, this is termed losing the opportunity.

If you grasp a knife but do not cut anything, you will lose the moment for profits. If you hold an axe and do not attack, enemies will attack instead."

"If trickling streams are not blocked, they will become great rivers. If you do not extinguish the smallest flames, there is nothing much you can do when it turns into great flames.

If you do not eliminate the two-leaf sapling, you might have to use the axe to remove it in future." "For this reason, the ruler must focus on developing wealth within his state. Without material wealth, he has nothing with which to spread beneficence or to bring his relatives together.

If he estranges his relatives it will be harmful. If he loses the common people, he will be defeated. "

"Do not loan sharp weapons to other men. If you loan sharp weapons to other men, you will be hurt by them and will not live out your allotted span of years." King Wen said:"What do you mean by benevolence and righteousness?"

Tai Gong replied: "Respect the common people, unite your relatives. If you respect the common people, they will be in harmony. And if you unite your relatives, they will be happy.This is the way to implement the essential cords of benevolence and righteousness."

"Do not allow other men to snatch away your awesomeness.Rely on your wisdom, follow the norm. Those that submit and accord with you, treat them generously and virtuously. Those that oppose you, break with force. If you respect the people and trust, the state will be peaceful and populace submissive." - T’ai Kung Liu-t’ao (Six Secret Teachings)

More on this topic can be found in Dr. Ralph Sawyer's Seven Military Classics of Ancient China.

The Dao of Competition: Is Winning Everything?

q: Is sports another extension of life?

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March 31, 2010

Coaches Finding No Tolerance for Losing

By PETE THAMEL

INDIANAPOLIS — Three years ago, when Royce Waltman was fired as the coach at Indiana State, he gave a memorable and prophetic news conference at the Missouri Valley Conference tournament.

He opened by thanking the university administration for handling his dismissal with “the deft touch of a 20-mule team.” He continued with a statement so honest and salient that it resonated deeply as the college coaching carousel spun again this week.

“If you get fired for cheating, you can get hired right back again,” he said. “If you get fired for losing, it’s like you’ve got leprosy, so young coaches need to bear that in mind. Cheating and not graduating players will not get you in trouble, but that damn losing. ...”

Waltman, 68, might have lost too often, but he could see the future. He has not been rehired as a head coach, instead working as a part-time assistant at Roncalli High School here.

But this week’s coaching changes brought Waltman’s sentiments to life: Holy Cross fired Coach Sean Kearney after one season on Tuesday for losing too much. And Texas-El Paso hired Tim Floyd, who resigned at U.S.C. in the wake of allegations of N.C.A.A. rules violations. U.S.C. vacated 21 wins and imposed a one-scholarship ban because of what happened under Floyd’s watch. Over lunch at a sports bar here on Wednesday, Waltman sipped a beer and reflected on his 2007 news conference. “It wasn’t a bitter statement,” he said. “I still believe it. I would think that events would bear that out.”

In the nonscholarship Ivy League this season, Penn and Dartmouth fired their coaches at midseason. Cornell Coach Steve Donahue said that in his first 10 years in the Ivy League, he could recall only two coaches being fired.

The Patriot League, of which Holy Cross is a member, offers scholarships but fancies itself as similar to the Ivy League in mission and academic ideal. Holy Cross hired Kearney in June after Ralph Willard left to become Rick Pitino’s top assistant at Louisville.

Kearney inherited a team picked to finish first in the Patriot. It finished 9-22, 5-9 in the league, and advanced to the semifinals of the conference tournament.

Holy Cross Athletic Director Dick Regan did not return multiple calls seeking comment. But in statements reported by The Telegram & Gazette of Worcester, Mass., he made it clear that the reason for Kearney’s dismissal was his record.

“What this really says is basketball is very important to us,” he told the newspaper. “I see the ability to win the league championship next year, and I felt I had to do whatever it took to get to that point. There’s a gap in life between what you would like to do and what you think you have to do, and this was one of those latter situations.”

Kearney, reached by telephone on Wednesday, said he was fired for losing. He will be paid the remaining three years on his contract, a sign that there were no off-court issues. “I’m just very disappointed that I was not able to finish this out,” he said.

Around the country, coaches and administrators were baffled by the move. Another Patriot League coach, Fran O’Hanlon, who has coached at Lafayette for 15 years, was irate.

“Someone’s career was just destroyed in a lot of ways,” he said. “Short of a felony, I can’t imagine what could have prompted something like this. I’m just upset with the whole thing. I’m upset. It’s not my school. I’m not running Holy Cross, but I certainly don’t like the way this whole thing was handled.”

Kearney’s old boss at Notre Dame, Mike Brey, spent a lot of time on the phone pitching Kearney to Regan when the job was open. Brey said he did not get a good feeling in dealing with Regan and questioned his ability as an athletic director.

“I was nervous about him going there,” Brey said of Kearney, “but obviously it was a great opportunity for Sean.”

John Feinstein is the author of the book, “The Last Amateurs,” which follows a year in the Patriot League. On Wednesday, he credited Regan for being honest about the impetus behind the decision to fire Kearney — not winning enough. But Feinstein said the firing after one season was a bad harbinger.

“It says nothing good about the school or the league or the state of college basketball,” Feinstein said.

Feinstein recalled a conversation with Father John Brooks, the former president of Holy Cross, who said that the league’s decision to give scholarships was a “slippery slope.”

On Tuesday, Boston College parted ways with Al Skinner, who had reached the N.C.A.A. tournament seven times in the past 10 years but was 15-16 this season.

Norm Roberts, credited with cleaning up an N.C.A.A. mess at St. John’s and stabilizing the program, was also fired last month for not winning enough.

Brey, his voice dripping with sarcasm, said he could not wait to attend a 9 a.m. meeting of the National Association of Basketball Coaches here on Thursday.

“What kind of message does this send?” Brey said. “I’m beaten down, man.”

Waltman, the prophet, shook his head as he talked about the state of college basketball. But his message came across: Cheats prosper and losers get leprosy. Something a young coach might think about.

http://www.nytimes.com/2010/04/01/sports/ncaabasketball/01coaching.html?hpw

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"Winning isn't everything. The will to win is the only thing. - Vince Lombardi

Source: http://en.wikipedia.org/wiki/Winning_isn't_everything;_it's_the_only_thing

The Art of Controlling One's Trade Secrets.

From an Amazon ad,

Developed by a former San Francisco 49er, this complete "training camp" playbook includes every feature of football's most successful offense ever! Over 400 pages of actual X & O diagrams, detail of techniques, terminology, and offensive philosophy. Assembled in a 3-ring binder for your convenience, this playbook is essentially the same as the ones used by NFL coaches for teams such as the San Francisco 49er's, Green Bay Packers, and Denver Broncos. Exactly like the real thing!

It does not matter if someone secured your playbook. Every technology and tactical manual has a cycle. Smart organizations always improve their technology and update their play books.

A good grand and operational strategist always thinks ahead in terms of the following: their strategic platform; their standard of performance and their contingencies.

He or she might explain to the outsiders their philosophy. Rarely do they ever reveal their operational and tactical management details. The outsiders seldom know the reasoning behind their actions.

Compass Rule: The man who knows why will always prevail over the men who knows how.