Business Lessons Learned From the Soccer World Cup

Our Lessons Learned

1. A match lasts 90 minutes

Though this little fact is basic soccer knowledge, not all players have really understood its
implication for the match itself. Just how quickly a game and its final outcome can change
became evident in the match between the US and Algeria when the US scored the winning goal
in the 93rd minute. And Slovenia, who only needed a 0:0 to move up, was out.
For managers, this means being perseverant. Constantly monitor the market, the employees’
mood and the financial situation. These are subject to sudden, unpredictable last-minute
changes which may disrupt the success of any project or campaign.

2. The better team does not always win

This is unfortunate – but isn’t it also what makes the game so exciting? Just think of how
Switzerland beat the later world cup champion Spain 1:0 in the first round. Or Ghana, who did
not manage to score against Uruguay and were out - the ball hit the bar instead of ending up in
the goal during the penalty shoot-out in the 123rd minute of overtime. Many will argue that this
does not apply to companies, but a lot of firms that felt on top and were objectively very good at
what they do had to face bad surprises. The textbook example is Apple, whose operating system
war clearly superior to that of Microsoft 20 years ago – yet Microsoft prevailed. Bill Gates
understood how to capitalize on its strengths.

3. Invest now – earn later

The final matches put the spotlight on the outgoing star players of great soccer clubs. Ajax
Amsterdam, FC Barcelona or Bayern Munich – all three teams are traditionally investing a lot
into young players and spend considerable amounts of time and money on discovering and
training fresh talent. These investments have paid off not only in the latest FIFA world cup. What
about German companies? Professional training, continuing education and High Potential
programs are rarely high on the agenda. Rather, German companies find themselves relying on
the ‘mercenary principle’ by hiring expensive outside help instead of putting more faith in their
own people.– all three teams are traditionally investing a lot
into young players and spend considerable amounts of time and money on discovering and
training fresh talent. These investments have paid off not only in the latest FIFA world cup. What
about German companies? Professional training, continuing education and High Potential
programs are rarely high on the agenda. Rather, German companies find themselves relying on
the ‘mercenary principle’ by hiring expensive outside help instead of putting more faith in their
own people.

4. Adapt your game to the team’s capabilities

German trainer Jogi Löw perfectly demonstrated how it is done; the Spanish team has brought
this strategy to perfection. A team’s tactics and strategy should be modeled on the individual
capabilities within the team. We saw what happens when a team has to adapt to a forced tactic:
The approach of the Brazilian team did not match their capabilities and they were out.
New directors and executives want to reshape the company, two years later they leave their
positions with a great deal of frustration. Most employees do not play along with new strategies.
Often, they just sit out such new ideas. Managers and directors will be more successful if they
take small tactical steps when launching a new strategy.

5. Stars don’t matter – the team matters

Where were Messi, Kaka, Rooney or Ronaldo in this world cup? These players often ended up as
extras on their teams. Their amazing skill was nowhere to be seen (the sole exception being the
attack on Lama by Ronaldo). Companies should never rely on a few star managers by hiring
executives with famous names or exceptional CVs and arguing that they don’t have the right
human resources within their own ranks. Newly recruited high flyers often fail because they don’t
get the company culture and lack empathy and team skills.

6. Catenaccio is over, welcome to Offensive Defensive Soccer

2004 Eurocup winner Greece, 2006 world cup winner Italy – both teams did not even manage to
survive the knock-out phase this time around. They were unimaginative as compared to the
younger, more agile teams and too focused on the defense. Applied to the market, German
companies in particular should ask themselves whether they have not disproportionately relied
on the quality of their products in the past, and not invested enough effort into sales and
marketing. The right thing to do is to play offensive once the defense is secured.

7. The truth is relative

Supposedly wrong referee decisions were a constant topic of hot debate in this world cup. Vice
champion Holland complained about not having been given a penalty shoot-out even days after
the game. Britain is still upset about the “Wembley 2.0” goal that did not count. Companies also
make excuses: the supplier is at fault, the customers did not understand the product, etc. In
reality, the designed strategy did not work and firms should do their best to analyze what went
wrong and derive ideas for improvement.

8. The final result matters

Spain became champion with just eight goals during the entire world cup. Germany scored more
goals in the knock-out phase alone. Or consider Portugal – seven goals in a single game but then
they were quickly out. What’s the use of these goals, except maybe fame and honor? Especially
during hard economic times, available resources should be used wisely. Not all imaginable
products and services should be made available – instead, companies should focus on those
which give a good ROI and a competitive advantage in the medium term.

Dr. Karin Stumpf and Johannes Deltl are executive directors of the Berlin management consultancy
Acrasio GmbH www.acrasio.com.