Bentley Partners

Footy as an Insight into Business

by Colin Linke on 12/10/09 at 7:35 pm

The last 7 days in the AFL have seen the completion of the annual player meat market called trade week. The week sees clubs, players, player managers and the players family’s thrown into disarray as everyone tries to get the greatest “win” that they can from the week.

The overwhelming intention is for each party to get the bigger “win” and attempt to get more than they are giving up.

All except for 2 notable exceptions – Geelong and Sydney.

I have bee very impressed now for a few years how these 2 clubs make things happen. A player asks to be traded and invariably they look at the service provided and reasons they want to leave and the trade happens. Undoubtedly there are winners and losers however the overwhelming desire is to assist the player that has provided years of loyal and valuable service to get where they want.

Lets contrast that to St. Kilda, who treats a former captain of the club as a pawn in its desire to “beat” a disliked opposition club and leaves that player in limbo.

Which is the better outcome?

In my role advising my clients I often get involved in negotiations on various fronts. Currently I am in the middle of facilitating the departure of a partner from a business. That partner has not really “carried his weight” for a period and the remaining partners have every reason to want to make life difficult. That conversation has occurred – it is human nature after all – however in the end, common sense prevailed and the decision was made to simply facilitate the exit on terms that are acceptable to everyone. Consequently we now have terms agreed, albeit subject to some regulatory approval, and both parties can get on with each of the more important tasks of running a business.

Now lets contrast that to another client who is trying to negotiate the exit from a JV that has not worked. Both sides are adamant that they should “win” and the only people “winning” are the lawyers and advisors who are racking up the fees. We have now reached four months of impasse and the only conceivable result is to get a ruling on the legitimacy of the exit price. What a waste of focus, energy and funds. Instead of simply agreeing to terms four months ago and moving on with their businesses each party is now at a point where they cannot “win” unless they get the most out of any settlement. That was not the desired result out of the initial JV break-up discussions.

The point of all of this is that at times we all have to deal with difficult situations in business. Don’t let “one-up-manship” get the best of you and look at the bigger picture. Business – just like footy – is more important that “beating” your one opponent – its about winning the ultimate prize – whatever that may be.