Even though the Braves were eliminated by the Los Angeles Dodgers in the National League Division Series on October 7, there is a compelling story about the two teams remaining in the World Series: the Milwaukee Brewers and Tampa Bay Rays. Lean and mean, scrappy teams we can learn from at our companies and organizations in the CSRA.
Both the Brewers and the Rays are considered “small market” teams in MLB because they are located in cities smaller than those where other MLB franchises are located, limiting their ability to generate revenues such as local broadcast rights. As a result, both the Rays and Brewers have each consistently ranked in the bottom third in annual revenues among the 30 MLB teams in each of the last ten years. These lower revenues inhibit both teams in the amount of money they can spend on more experienced and more talented players. In the last 10 years, the Brewers have been ranked between #16 and #23 each year in the annual player payroll out of the 30 MLB teams (#19, 21, 21, 21 the last four years), while the Rays have ranked no higher than #21 in player payroll in the last 10 years and were in the bottom five in payroll in eight of those years.
Given those player payroll levels, you would think the success of the Rays and Brewers this year is somewhat fluky. However, both franchises have been very successful over that 10-year time span. Over that time, the Rays have had a regular season record of 846-672 (almost a 56% winning percentage), have won three division championships (in a division that includes big market teams such as the Yankees, Red Sox, and Blue Jays), have made the playoffs six times, with two World Series appearances, including this year. In that same time period, the Brewers have won more than 57% (866-653) of their regular season games, have been in the playoffs eight times, and won their division six times, including the last four, with big market teams such as the Chicago Cubs and St. Louis Cardinals in their division. So, how are these “little guys,” Brewers and Rays, achieving so much on-field success despite being “under-resourced” relative to many of their MLB brethren? Let us take a look at how they are doing it and how what they are doing may apply to your business, as many of you are competing against bigger and better-resourced companies.
While the Brewers and Rays have not done things in exactly the same way, they have each leveraged some broad themes that you can emulate in your business/organization:
- Investment in Both Data Analytics and “Scouting”: Both the Brewers and Rays have sizeable analytics and scouting departments. The “new school” analytics departments are critical for identifying the key elements for on-field success, while the “old school” scouts find the players who can deliver those elements. This powerful combination allows them to identify undervalued talent and put them in positions to maximize their success. In business, we need to use analytics to determine the key levers of our success and then use our recruitment and development programs to identify and grow the people best able to be those levers.
- Culture over Individual Talent: Both teams have developed cooperative, ego-free environments where teammates support one another. As these teams have demonstrated during the past decade, such a culture typically outperforms a collection of high earners. In business, we are often tempted to go for the “superstar hire” who we think will make us more successful, but it is better to stick with a team of good players who work well together. Good culture leads to a sum that is greater than its parts.
- Prioritize Long-Term Retention and Continuity: While many members of the front offices and field staffs of both the Rays and Brewers have gone on to higher-ranking positions in other MLB organizations, both teams have consistently hired from within to maintain top employees, preserve institutional knowledge, and prevent the loss of crucial operational wisdom. Erik Neander, the Rays’ President of Baseball Operations, has been with the organization for twenty years, starting as an operations intern. On the field, Kevin Cash is the longest-tenured manager in the major leagues. Despite the Brewers losing their General Manager, David Stearns, to the Mets, they promoted Matt Arnold internally and have not lost a beat. The lesson for business is to develop your internal talent for promotion, as internal hires/promotions will allow for continuation of a successful culture and organizational operational and strategic prowess.
- Innovation: When you are the “little guy,” you have to do things differently to win. If you try to simply emulate your bigger, better competitors, they will beat you because their resources will allow them to do those things better. For instance, the Rays were the first in MLB to develop substantial pitching depth through the creation of a “pitching lab” to maximize the capabilities of each of the pitchers and were the first to utilize an “opener” in lieu of a traditional starting pitcher. The Brewers have been at the forefront of wearing down opposing pitchers by driving up pitch counts through plate discipline and fouling off two-strike pitches. Think about what you can do innovatively/differently to beat your better-resourced competitors.
You may have been ignoring the World Series this year since your team is not playing. But do not ignore the teams who are playing. These “little guys” are showing us how to be consistently successful against better-resourced competition.
