You are on page 1of 18

The new

sports organisation
Eight essentials for renewing the management of sport
2nd Edition By TSE Consulting

The new
sports organisation
Eight essentials for renewing the management of sport
2nd Edition By TSE Consulting

Edited by: Lars Haue-Pedersen, Caroline Anderson Contributions by: Greg Curchod, Dale Neuburger, Steve Roush, Tanya Ng Yuen, Tania Riesen,Hlose Lacroix, Rosmarijn van Kleef

Published by: TSE Consulting Publishing

The new sports organisation eight essentials for renewing the management of sport, 2nd edition, by TSE Consulting Published by TSE Consulting Publishing Copyright 2013 by TSE Consulting SA, Switzerland. All rights reserved, including the right of reproduction in whole part or in part of any form. Design and lay-out: Farmen Communication, Copenhagen, Denmark. The book is produced on LumiArt Chlorine Free paper, fulfilling the Nordic Swan criteria. The paper is also FSC certified. Printed by a ISO 14001 certified Printers.

ISBN: 978-2-8399-1226-6

CONTENTS
Forewords Acknowledgements Introduction: Eight essentials for renewing the management of sport 4 11 13 19 37 57 77 95 115 135 157 177 179 184

Chapter 1: FOCUS define the operational frame Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Conclusion: VALUES lead with more than rules and regulations STRATEGY let strategy guide structure SERVICES move beyond administration BRAND reach out to a broader audience PARTNERS diversify the approach MEASUREMENTS secure a target-oriented performance CHANGE balance stability and improvement The ninth essential

References Notes

A FOREWORD BY

Sebastian Coe, KBE


Chairman, British Olympic Association Olympic Gold Medalist 1980 & 1984

As an athlete nothing quite matches the pressure an hour out from the final of a major championship; facing the same distance, the same track as you have done thousands of times before in training but with the pressure of expectation, the crowds and the unknown factor of your competitors. So despite their apparent simplicity, races are complex and whether you are just an hour away or have four years until an opening ceremony, every day you have to add value, to show purpose. Sports organisations are faced with similar challenges. On an almost daily basis, they strive to develop solutions and to deliver results throughout all levels of their sport. Governing bodies too, facing ever increasing competition from other distractions, need to constantly evolve and to become more professional in their approach and more transparent in their governance. This book sets out to provide sports organisations with the tools that will help them to develop and to prosper in the modern era. As a former athlete and now an administrator, I am absolutely convinced about the positive role of sport and its unique ability to touch many different aspects of our lives and our communities. This book looks into this and I hope that it adds value to your own thinking.

4 forewords

A FOREWORD BY

Gunilla Lindberg
Member, International Olympic Committee Secretary General, Association of National Olympic Committees

With my responsibilities as Secretary General of the Association of National Olympic Committees (ANOC) the umbrella organisation of the 204 National Olympic Committees (NOCs) in the world I have learnt that although NOCs differ in regards to their size, their resources and even in the way they approach and celebrate sport in their respective countries, they are similar when it comes to the many daily challenges that they face. Like most sports organisations, the roles and responsibilities of NOCs have changed dramatically over the past few years. There is now a greater need for not only welleducated and experienced staff but for better equipped offices. There is an increased need to form relationships with governments and at the same time to work closer together with private companies in order to secure much needed additional funding. And, while forming these partnerships with public and private sector entities, there is a constant need for NOCs to keep their autonomy as they take on the responsibility of developing the Olympic Movement for the future. To do all this the sports leaders in NOCs or other sports organisations around the world have to overcome their daily challenges and develop new opportunities. Sport is constantly developing and the leaders of sport need to be looking ahead. The theory of management needs to be combined with a clear understanding of the reality of sport today. The examples in The New Sports Organisation showcase how this is being done at all levels of sport.

forewords 5

A FOREWORD BY

Vincent Gaillard
Director General, SportAccord

Our role at SportAccord is to assist our members, the international federations, big and small, in the development of their sports, the effective management of their own organisations and in the sharing of best practices for the good of them all. My role at SportAccord is to make sure that we, as an organisation, are just as effective in our own management and development. Financing, illegal-betting and match-fixing, doping, governance social and responsibility; these are some of the most current issues that federations are struggling to deal with on a daily basis and hence the areas where SportAccord is developing services to support our members. We are striving to assist the sports federations to approach all of these issues in a more pro-active way, while at the same time encouraging the development of tools and skills so they can face the challenges of the future head on. We continue to see that sport is an environment where decisions can be political and change takes time. This book highlights the continual need for re-evaluation of strategy, development of new services and most importantly clear governance and increased professionalism to assist sports organisations around the world to be stronger. Having stepped into my role during a heavy period of change for the organisation, we, at SportAccord, are looking at each of the eight essentials highlighted in this book in detail. Despite our 30 year history, we too are striving to be a new sports organisation.

6 forewords

A FOREWORD BY

Gideon Sam
President, South African Sports Confederation and Olympic Committee

When I was elected as President of the South African Sports Confederation and Olympic Committee (SASCOC), I stated that I was of course daunted by the huge responsibilities that had been entrusted to me, but reiterated that I firmly believed that my overriding passion for sport would stand me in good stead. Passion is indeed just one of the three overriding factors which should influence the success of a sports administrator, the others being accountability and discipline. Our passion for our own sports should be the daily driver for everything that we do as individuals involved in the administration of sport. However, I continually question why sports federations do not feel responsible for the outcome of their programmes, for without such accountability, they can never deliver the success upon which they must be judged. In a similar vein, why should a sports federation provide training programmes when its staff, coaches and trainers do not implement their learning? Such basic disciplines must form the bedrock of a successful organisation. All governing bodies have to be run in a professional manner. It is our responsibility to ensure that sport delivers the benefits that governments throughout the world are increasingly realising can impact so dramatically on its citizens. As my country prepared to welcome the world of sport to our shores in 2010, we were only too aware of the impact that this major event could have, not only on our own people, but on the entire continent and throughout the world. Africas first Football World Cup was to be a true celebration of all that is good in sport and it was our role as administrators to ensure that this was the case. I welcome this book, as it is high time that a book about sports management took a practical approach, which is clear and straight to the point and, most importantly, is a book that is directly applicable to all national and international sports federations.

forewords 7

A FOREWORD BY

Troels Troelsen
Associate Professor, Copenhagen Business School

Sport provides us with unforgettable moments, as we witness a memorable victory for our favourite team or watch live as a world record is broken. Equally, sport provides unforgettable moments for its participants, whether it is the completion of a major challenge like a marathon, slotting home that last second goal or just playing with children or friends. When asking someone for their proudest national moment of history, sport will feature amazingly often. The French and Italians will never forget their victories in the football World Cup, nor the Australians or New Zealanders in the Americas Cup. The increased brand awareness or selfesteem generated for nations or cities through hosting large teams or major events are immensely important; just consider Barcelona and Sydney and their memorable Olympic Games, events like the Berlin Marathon or the Hawaii Ironman, or teams such as the Chicago Bulls, the New York Yankees, Real Madrid and Manchester United. Why is it fun to run the New York Marathon? There are far too many runners and you can never run your best time. Why is it fun to be anywhere in the Nou Camp in Barcelona and be 100m away from the pitch? Its fun because of the power of the occasion, the feelings and excitement that such moments can generate. A book which looks into and analyses the very core of the governance of sports and major sporting events is certainly needed and in this respect this book is unique. This book discusses the strategies, the challenges, the issues of governance and manoeuvrability required for a sports governing body to be successful. Different sports are increasingly in fierce competition for a share of the worldwide audience, whether it be spectators, television coverage or sponsors. Transparent governance and investment in the future are crucial to their growth. TSE Consulting has always been a visionary sports consulting firm and by launching this book they once again prove to be in the forefront of the provision of advice to visionary sports governing bodies. Sport is fantastic, but we have to manage it better if we want to protect and harvest all of its values.

8 forewords

10 FOKUS - define the operational frame

Acknowledgments
Like the first edition of The New Sports Organisation, published in 2009, the writing of this second and extended edition was a collaborative effort. Credit is due not just to the listed authors, all of whom are consultants working for TSEs central office, who drew on their experience and knowledge in their contributions to this book, but also to the many other sources of inspiration that touch TSE on a daily basis. I would therefore like to thanks our clients, who walk beside us in our efforts to develop solutions and deliver results; our colleagues from our offices around the world, who enable us to work on an international scale and our group of Academic Advisors, who enables us to make a connection between the academic theory and concepts and our practical delivery of those ideas. Last but not least, I would like to send a special thank you to the Senior Executives from various organisations around the world who contributed to this book via interviews and case studies. I hope that everybody will enjoy reading this second edition and continue to look for new ways to develop the management of sport!

Lars Haue-Pedersen Managing Director, TSE Consulting Lausanne, Switzerland, May 2013

Acknowledgments 11

12 FOKUS - define the operational frame

INTRODUCTION
Eight essentials for renewing the management of sport
This book is about sport. It is truly an interesting time for sport as it has never before been so popular or so commercially successful. Equally, it has never before been so scrutinized and questioned. The growth in professionalism of sport has intensified over the past years and the increased focus on commercial and financial aspects has tested the sports industrys fundamental values and management methods. The influx of money into sport has also created new and unprecedented opportunities to develop and promote sport. This book will look specifically at sports organisations: the national or international federations, or governing bodies, of various sports around the world. These organisations have the central role of creating a link between two levels, grassroots and elite; being the interface at which the two ends meet they create a mechanism whereby money made from top level competition feeds down to develop and finance the grassroots sector. In the current sports landscape these organisations are being challenged to a degree at which their existence is being questioned. Do we need a European or international body like UEFA or FIFA to govern football? Do tennis players in a country need a national tennis federation to play tennis in that country? Do athletes around the world really need a governing body? Based on our research and our experience from working with many different organisations in different sports across all five continents, our answer to all those questions is yes. But at the same time we are convinced that these sports organisations need to evolve, adjust to the new reality and renew themselves. We need sports organisations, but they need to evolve. This book will explain what we think of as the new sports organisation, and examine what we believe to be the eight essentials needed to renew the management of sport.

introduction 13

Why do we need the governing bodies?


Sports organisations, faced with questions about their role and overall purpose, often struggle to provide convincing answers. Perhaps this is understandable, as their roles and responsibilities as national or international federations are complex. They face many and at times conflicting interests that must be handled within a democratic system that does not always allow efficient decision-making. At the same time they are, by their constitutional nature, a monopoly. There is only one FIFA, UEFA, IOC, etc., and only one official national federation for each sport in each country. Monopolies are by definition often slow, complacent, bureaucratic and focused internally on fixed rules and regulations. However, without central governing bodies of sport, there would be a lack of interest in the development and expansion of sport on a grassroots level, a lack of interest in working to further the recognition of the sport, or to take on social responsibility for it. Why should anyone take on these responsibilities without the prospect of immediate gains? In regards to the elite or competition level of sport, a governing body is essential to limit and balance the interests of those who want to gain from the commercial offerings of sport. A strong central governing body is beneficial as it takes on the role of making tough decisions and aims to keep the sport on track by safe-guarding it from too many competing outside interests, whether they are political, commercial or any other. Moreover, without a governing body the sport can suffer from the creation of too many championships, leagues, and versions of the sport. This is probably the main reason why many popular extreme sports have not yet managed to establish equally popular competitions.

Why do the governing bodies need to evolve?


While recognising the need for governing bodies in sport, our research and experience tells us that these governing bodies need to develop, adapt and evolve if they want to maintain their central function. While remaining by definition a monopoly, each one should become a dynamic monopoly which in a transparent and open way manages to combine and balance its democratic and regulation based structures with a market oriented approach constantly adjusting to changes in society.

14 introduction

Each body should recognise that it is governing an organisation and running a business. At one and the same time it is focused on earning money and spending money. It is dealing with members and with customers. It must be democratic without compromising its efficiency. How to manage this move towards being a new sports organisation is one of the most important questions that the managers of todays sports organisations must consider. And this book has the answers. We think that the new sports organisation is one that sees itself as both a not-forprofit organisation and a commercial enterprise. In defining its organisational frame, it has thus identified the focus for its operations and has a clear understanding of what constitutes success. It is an organisation that needs to depend on something greater than the rules and regulations of the sport and organisation to make its decisions. The leadership of the organisation is based on some core values that are both meaningful and powerful. It is an organisation that does not change its structures simply because it wants to break from tradition, or in order to encourage development. Rather, it focuses on developing a strategy that moves the organisation forward and allows changes in structure to follow. The new sports organisation focuses on the services it provides to its members rather than just being an administrative and governing body. To add value to members, a governing body needs to provide advice, guidance and leadership. Staff view themselves as advisors or consultants rather than simply sports administrators. This new sports organisation will develop into a brand. Not by focusing just on itself, but by combining its three core elements: the organisation, the sport and the products it offers. It recognises that in order to become relevant to members and other stakeholders, it must build and promote a brand which is constantly nurtured and developed. It views external partners as an integral part of its activities. It is an organisation that explores new partnerships and increases revenue through innovative thinking and the development of new opportunities. The new sports organisation focuses on measurements. Much as it measures the performance of its athletes and its clubs, so it measures itself. It develops adequate tools to perform this measurement, and bases it on clearly defined objectives.

introduction 15

Finally, it embraces change. It adapts. It finds a system to ensure that stability and improvements can occur at the same time. Within the busy competition schedule, and the daily operations of the organisation, it has a system to ensure progress. Each of the eight chapters of this book introduces one of these eight essentials; Focus, Values, Strategy, Services, Brand, Partners, Measurement and Change, and explores how it will develop in the modern era. We delve into each subject with a conceptual and practical expertise, while sports managers from around the globe give their viewpoint through extensive interviews and case studies. There are many sports management books, written by individuals from the academic or pure business world, that try to dip into the uniqueness of sports management. These books are necessary for understanding and comprehension of the sports industry. They do not, however, shed light on the potential mistakes that sports managers risk making while leading their organisations into the modern era. TSE Consulting has gained experience and developed expertise in working with many different organisations in different sports across all five continents. Our experience is based in both international and national organisations. Our consultants have advised and trained these organisations in areas such as change management, strategy development and implementation as well as communication. It is the intention of this book to inspire and to provoke thought and discussion rather than to instruct, and we will not therefore go into the fine details of management practice. Our purpose is to present a view, based on research and theory, tested by consultants worldwide in various different sports. We hope to move you beyond the teachings of traditional management books and to share the lessons we have learnt and the challenges we have faced throughout the industry. We hope to inspire, educate and liberate managers and to change their thinking about the management of national and international sports organisations. The first edition of this book was published in 2009. Four years later, sport continues to be popular and commercially successful, and at the same time continues to be scrutinized more than ever. Over the last few years, many sports organisations have gone through significant change and progress. Yet, in our work we continue to see that the eight essentials described in this book are still relevant and should be revisited time and time again by sports administrators in order to keep their organisations moving.

16 introduction

If you are reading this book, we suspect that you have seen the changes and new obstacles that face sports organisations and that you want to understand how to make sports organisations work better. Our book has been written to guide you in developing your own understanding and vision for moving sports organisations forward during these times of challenge and uncertainty. We hope that you do more than just read this book; carry bits of it in your thinking when you are working. See it as a workbook that is guiding you towards a better understanding of the sports industry. Write in it, highlight, cross out parts you dont agree with. Make it an experience. Enjoy the journey with us. We hope to learn from you as well, so please share your thoughts and experiences with us. Contact us at books@tseconsulting.com. Sport is on the move and the organisations managing sport need to move as well become a part of a new sports organisation.

introduction 17