strategic management & sports events organizations lionel maltese

StrategicStrategic Management Management &&

Sports Events OrganizationsSports Events Organizations

http://cortoleo.free.fr/master/Venezia.ppt http://cortoleo.free.fr/master/Venezia.ppt

Lionel MalteseLionel MalteseMaître de Conférences Paul Cézanne University (Aix-Marseille III)Maître de Conférences Paul Cézanne University (Aix-Marseille III)

Affiliate Professor Euromed Marseille School of ManagementAffiliate Professor Euromed Marseille School of ManagementStrategic Planner French Tennis Events Strategic Planner French Tennis Events (Marseille, Paris, Roland Garros, Lyon, Toulouse) (Marseille, Paris, Roland Garros, Lyon, Toulouse)

Seminar

Degree & Professional “course”Degree & Professional “course”

Engineer Economist – Econometrics (Magistere 2001)

DEA in Management Sciences – Strategy IAE Aix-en-Pce (2001)

Doctorat (PHD) in Management Sciences – Strategy (2004) IAE Aix-en-Pce

Academic Thesis in sport events context…

« Maître de Conférences »

Paul Cezanne University

Strategy

IUT-IAE (2004…)

Affiliate Professor

Euromed Marseille

Strategy

Sports & Events

Management

(2006…)

Professional Consulting (Strategic Planner)

& Event Organization (Entertainment management)

Pampelonne Organisation

(Open13, BNP Paribas Masters, Roland Garros, ATP, FFT, FFR,

Occade Sport (GPTL-ASVEL), Team Lagardere…)

(2001…)

Sports Organizations ?Sports Organizations ?

MediaBroadcast

SponsorsInstitutionsFederations

EventsEventsClubs

Franchises

Sports goods& Equipments

Consulting Agencies

Athletes agents

Club (or franchise) VS sport eventClub (or franchise) VS sport event

Professional athletes management and control

Clubs and Franchises :

- Contracts : transactions and salary

- Motivation : training, selection, financial premiums

Athlete = “asset” for the managers

Events :

- Fees (ATP, PGA for instance)

- No control of sport performance by the managers

Dependency of the athletes (calendar for instance) and their professional associations (ATP, PGA, UCI…)

Main “goals” for this seminar !Main “goals” for this seminar !

Sports organizations [professional Events & Clubs] = Sports organizations [professional Events & Clubs] = management “stake” ?management “stake” ?

Proposition of a new Strategic Management Model for Proposition of a new Strategic Management Model for these organizations !these organizations !

Understand & manage key factors of success (or failure) : Understand & manage key factors of success (or failure) : sponsoring, public relations, reputation, physical (stadium) sponsoring, public relations, reputation, physical (stadium) & local factors, managerial skills…& local factors, managerial skills…

Develop your professional skills on : strategic analysis & Develop your professional skills on : strategic analysis & formulate Sport Organizations Business Plan formulate Sport Organizations Business Plan (Development Plan) : STRATEGIC PLANNER for sport (Development Plan) : STRATEGIC PLANNER for sport organizationsorganizations

Focus on “Event Concept”Focus on “Event Concept”In sports context, “event” is everywhere :In sports context, “event” is everywhere :

National Championships (every week ! : NBA, MLB, NFL, National Championships (every week ! : NBA, MLB, NFL, NHL, LNF, Top 14, Premier League…)NHL, LNF, Top 14, Premier League…)

National and International Competitions (JO, World National and International Competitions (JO, World Cups…) Cups…)

One shot events (every year) : Roland Garros, Tour de One shot events (every year) : Roland Garros, Tour de France, ATP, PGA, Superbowl, Formula 1… France, ATP, PGA, Superbowl, Formula 1… exhibitions… exhibitions…

……

For consumers : Entertainment & Event = For consumers : Entertainment & Event = “experiential service”“experiential service”

Key questions Key questions

Strategic Marketing :Strategic Marketing : How to show the show ? How to show the show ? How to sell, communicate, package this “experiential How to sell, communicate, package this “experiential

service” ?service” ? Who are our consumers : B to B, B to C, C to C… : Who are our consumers : B to B, B to C, C to C… :

working on communities (fans : difficult for an event !)working on communities (fans : difficult for an event !)

Strategy :Strategy : To perform and to develop sustainable performances on : To perform and to develop sustainable performances on :

sports measures, financial ratios, affluence – audience…sports measures, financial ratios, affluence – audience…

But… we need definitions But… we need definitions (Covell an al., 2007)(Covell an al., 2007)

Organization : « Any group of people working Organization : « Any group of people working together to together to achieve a common puposeachieve a common pupose or goals or goals thant could not be attained by individuals thant could not be attained by individuals working separately »working separately »

Management : Management : The The coordinationcoordination of human, material, technological, of human, material, technological,

and financial and financial resources resources needed for the organization ti needed for the organization ti achieve its goalsachieve its goals..

Responsibility for Responsibility for performanceperformance

But : But : wwhat is performance for sports organizations ?hat is performance for sports organizations ? Performance indicators (Pis) give us an Performance indicators (Pis) give us an

evaluation process that can provide objective evaluation process that can provide objective and meaningful performance feedback to aid and meaningful performance feedback to aid future decision making.future decision making.

The methods of evaluation are both quantitative The methods of evaluation are both quantitative and qualitative but all the final results depend and qualitative but all the final results depend upon one or more manager’ interpretationupon one or more manager’ interpretation

The key for sport organizations : your The key for sport organizations : your stakeholder analysis. stakeholder analysis.

Sport organizations – performance Sport organizations – performance and stakeholdersand stakeholders

You can evaluate returns for :You can evaluate returns for : Média Média AthletesAthletes Sponsors Sponsors Institutions Institutions Spectators Spectators Cities Cities Suppliers Suppliers Owner Owner ……. . Various PIs for different objectives and muliple Various PIs for different objectives and muliple

stakeholders… stakeholders…

Managing an event ?Managing an event ?

Learning by DoingLearning by Doing : : “operational organization” “operational organization” Self Self Made Men : (Jean-Marie Leblanc, Jean-François Made Men : (Jean-Marie Leblanc, Jean-François Caujolle, Gilles Moretton…) without academic formation Caujolle, Gilles Moretton…) without academic formation (tacit knowledge and not explicit : see Julien & Vincent (tacit knowledge and not explicit : see Julien & Vincent presentation…)presentation…)

Distinction between :Distinction between : Operational activities :Operational activities : press, ticketing, sports aspects, press, ticketing, sports aspects,

technical (stage manager) direction, volunteers or vacations technical (stage manager) direction, volunteers or vacations management… management…

Development (you !) :Development (you !) : experts in : Marketing, Strategy, experts in : Marketing, Strategy, Finances, RH… Finances, RH… THE FUTURE IN SPORTS ORGANIZATIONSTHE FUTURE IN SPORTS ORGANIZATIONS (Jean-Michel Aulas, Jean-Claude Blanc, Patrice Clerc, (Jean-Michel Aulas, Jean-Claude Blanc, Patrice Clerc, Christian Christian Prudhomme…)Prudhomme…)

The twice but without sleeping… The twice but without sleeping…

Categorization of eventsCategorization of eventsScale of impacts

(attendance, media, profile,

infrastructure, costs,

benefits)

High

Low

LOCAL MAJOR HALLMARK

MEGA-EVENT

Category of event

Categorization of eventsCategorization of events

Local or community eventsLocal or community events : Local : Local consumers (Beach events, Corrida, consumers (Beach events, Corrida, Snowboard & Surf contest, ATP Snowboard & Surf contest, ATP International Series Tournaments, International Series Tournaments, National Events…)National Events…)

Major events :Major events : Media interest (coverage & Media interest (coverage & benefits) and capability of attracting benefits) and capability of attracting significant visitor numbers (Formula 1, significant visitor numbers (Formula 1, Master Series ATP, PGA…)Master Series ATP, PGA…)

Categorization of eventsCategorization of events

Hallmark events :Hallmark events : identified with the spirit or identified with the spirit or ethos of a town, city or region (synonymous with ethos of a town, city or region (synonymous with the name of the place) & very traditional the name of the place) & very traditional (Wimbledon is the best example, 24H du Man, (Wimbledon is the best example, 24H du Man, Paris Dakar, Masters Evian…)Paris Dakar, Masters Evian…)

Mega events :Mega events : so large that they affect whole so large that they affect whole economics and reverberate in the global media economics and reverberate in the global media (Olympic Games, FIFA World Cup, IAAF World (Olympic Games, FIFA World Cup, IAAF World Championships, Superbowl, March Madness, Championships, Superbowl, March Madness, NBA, MLB, NHL Finals…) NBA, MLB, NHL Finals…)

Stakeholders in sport Stakeholders in sport organizationsorganizations

Private sponsors

Organisation

Public sponsors

Sport institutions

MediaSpectators

Athletes

Suppliers

Event / Club

How to control external environment How to control external environment (stakeholders) and how to be (stakeholders) and how to be

independent to perform, to develop independent to perform, to develop

and maintain ?and maintain ? Now before studying strategic analytic tools :Now before studying strategic analytic tools :

What is Strategy ?What is Strategy ?What are the more “sensemaking” What are the more “sensemaking”

approaches to analyze a sports organizations approaches to analyze a sports organizations and their stakeholders ?and their stakeholders ?

So sport organizations are in the “eye” of important actors “stakeholders” :

Our strategic problematic is :

Main Strategic ApproachesMain Strategic Approaches(Saias & Métais, 2001)(Saias & Métais, 2001)

POSITIONING MOVEMENT

Competitive

Advantage

Resource-Based View

RBV

Permanent Transformation

STRATEGIC « FIT » STRATEGIC

« INTENT »

S.W.O.T

5 Forces

Michael Porter & Co Gary Hamel and C. K Prahalad & Co

FITFIT

What business are we in ?What business are we in ?

S-C-P : Structure Conduct PerformanceS-C-P : Structure Conduct Performance The The structure of the industrystructure of the industry will dictate the conduct will dictate the conduct

of firms and thereby their performance (most popular : of firms and thereby their performance (most popular : SWOT or “five-forces” model (SWOT or “five-forces” model (Porter, 1979Porter, 1979)).)).

The big illustration is the 5 Forces Model (Porter, The big illustration is the 5 Forces Model (Porter, 1979).1979).

Porter’s Five Forces (Industry)Porter’s Five Forces (Industry)

Barriers to Entry

Bargaining Power of Suppliers

Bargaining Power of

CustomersCompetitors

Substitutes

INTENTINTENT

What are we able to make with what we have ? What are we able to make with what we have ?

RBVRBV (Resource-Based-View, (Resource-Based-View, Wernerfelt, 1984, Barney, 1991, Wernerfelt, 1984, Barney, 1991, Grant, 1991Grant, 1991) : certain ) : certain assetsassets (resources and capabilities) (resources and capabilities) with certain characteristics will lead to sustainable with certain characteristics will lead to sustainable competitive advantage.competitive advantage.

Strategy dictated by unique resources and capabilities of Strategy dictated by unique resources and capabilities of the firm (what can the firm do best?)the firm (what can the firm do best?)

Concepts definitionsConcepts definitions Resources : stocks of available factors that are owned

or controlled by the firm (Amit and Schoemaker, 1993)

Capabilities : a firm’s capacity to deploy resources, usually in combination, using organizational processes, to effect a desired end” (Amit and Schoemaker, 1993)

Dynamic capabilities : capacity of the organization to renew competences to be in line with the changing business environment (Teece and al., 1997).

Asset = resource + capability

Resource Based-View : VRIO modelResource Based-View : VRIO model (Barney, 1991)(Barney, 1991)

Resources & capacitiesLead to

Sustained Competitive Advantage

Value

Rareness

Inimitability

Non-Substitutabili

ty

Organization

VRIO PropertiesVRIO Properties

Is the resource or Is the resource or capability…capability…ValuableValuable

RareRareDifficult to imitateDifficult to imitate

Difficult to substituteDifficult to substitute

OrganizationalOrganizational

ImplicationsImplications

• Neutralize threats and exploit opportunities

• Not many firms possess

• Physically unique

• Path dependency

• Causal ambiguity

• Social complexity

• No equivalent strategic resources or capabilities

• Productive exploitation by the organization

FIT : Soccer metaphorFIT : Soccer metaphor

•The strategy (tactical) is a function of the external environment (rival teams : opportunities - threats).

•The trainer has a tactic adapted to the adversary and the players (resources) adapt to this positioning (diagram of play).

Intent : Soccer metaphorIntent : Soccer metaphor

The head coach "visionary" (or manager) has resources (players) and sets up a strategy (tactical) starting from these forces and weaknesses (resources), in order to face to certain opportunities or threats of the environment (air play, speed, physical engagement)

So What ?So What ? How can we “implement” that ? It’s very theoretical !How can we “implement” that ? It’s very theoretical !

Your and my job : to be able to construct a business plan Your and my job : to be able to construct a business plan (development) with a “specific RBV analysis” (your (development) with a “specific RBV analysis” (your “sensemaking background”), and furthermore :“sensemaking background”), and furthermore : Persuade and control our stakeholdersPersuade and control our stakeholders Maintain our performanceMaintain our performance To be “ready” for new opportunities and threats To be “ready” for new opportunities and threats

because of very instable sports environment…because of very instable sports environment…

Managing resources & capabilities = core competency of a “modern” CEO in sport organizations

(Jean-Claude Blanc…and you !)

Categorizing resourcesCategorizing resources Barney (1991) : 3Barney (1991) : 3

Physical capital : technology, plants, equipment, geographical Physical capital : technology, plants, equipment, geographical localization…localization…

Human capital : formation, experience, networks - Human capital : formation, experience, networks - relationships… relationships…

Organizational capital : formal structure, control, routines, Organizational capital : formal structure, control, routines, process, coordination systems… process, coordination systems…

Grant (1991) : 6Grant (1991) : 6

financial, physical, human, technological, organizational, financial, physical, human, technological, organizational, reputation.reputation.

Wernerfelt (1989) : 3Wernerfelt (1989) : 3 Fixed assets : plants, equipment…Fixed assets : plants, equipment… ““Blueprints” : patent, brand, reputationBlueprints” : patent, brand, reputation Teamwork “effects” : routines, habits, experience… Teamwork “effects” : routines, habits, experience…

Sport events & clubs : assets identificationSport events & clubs : assets identification

Sport Event & Clubs Sport Event & Clubs

Financial Financial resourcesresources

« Profit « Profit centres »centres »

TickettingTicketting Contracts Contracts

(sponsoring, Public (sponsoring, Public Relations) & Relations) & Players Players

(clubs only)(clubs only)

TV rights TV rights

MerchandisingMerchandising

Institutions (Institutions (public public subsidiessubsidies))

RenownRenown

HistoryHistory

Sport performanceSport performance

Affluence, audienceAffluence, audience

AssetsAssets

Players & coach Players & coach (clubs only)(clubs only)

Partnership Partnership (sponsoring, partners)(sponsoring, partners)

Reputation Reputation (event, sport, players)(event, sport, players)

Relational Relational (Social capital, relational (Social capital, relational

networks, Public Relations)networks, Public Relations)

PhysicalPhysical(infrastructures, stadium, (infrastructures, stadium,

territory)territory)

Organizational Organizational CapabilitiesCapabilities

(Core competences, event (Core competences, event driven know how, project driven know how, project

management))management))

RBV first model for a sport organizationRBV first model for a sport organization

Relational Resources

Partnership Resources

Resources

portfolio

Core

Competencies,

Capabilities

Performance, Sucess

Long Term

Sport Success

Organizational team, Managers

PROPERTIES

?

Financial Sucess Public Sucess

ReputationalResources

Physical Resources

Concepts

PlayersCoach (club

only)

Success caseSuccess caseOpen13Open13 1993---2008 1993---2008

www.open13.orgwww.open13.org

““Familial professional “bricolage” from Marseille”Familial professional “bricolage” from Marseille”

VIDEOVIDEO

Open13Open13

Physical Resources

ReputationalResources

PartnershipResourcesRelational

Resources

Organizational capabilities

CorporateReputation

SportReputation

Relational competencies

CEO celebrity Opportunism

Cascade of assetsCascade of assets

Stock of resources

RelationalResources« Axes »

PartnershipResources

ReputationalResources

Physical resources

LearningOrganizational

Capabilities

Dynamic Capabilities

« Bricolage  »

Partnership resourcesPartnership resources

Sponsoring : brand image, image transfer, notoriety, Sponsoring : brand image, image transfer, notoriety, visibility, target specificity, TV… visibility, target specificity, TV…

Examples : BNP Paribas, Louis Vuitton, Rollex, Peugeot, Examples : BNP Paribas, Louis Vuitton, Rollex, Peugeot, Indesit, Adidas, Nike, Fedex, Coca-Cola, Philips, Renault, Indesit, Adidas, Nike, Fedex, Coca-Cola, Philips, Renault, Mercedes…Mercedes…

Public Relations : Business relations, Employee Public Relations : Business relations, Employee relation, Government relations… relation, Government relations…

Examples of RP events : PGA tour, America’s Cup, ATP Examples of RP events : PGA tour, America’s Cup, ATP tournaments (Open13, GPTL, RG…).. tournaments (Open13, GPTL, RG…)..

DefinitionDefinition

Provision of assistance either financial or in kind to an activity by a commercial organization for the purpose of achieving commercial objective (Meenaghan, 1983)

Sponsorship involves two main activities (Cornwell and Maignan, 1998) :

exchange between a sponsor and a sponsoree whereby the latter receives a remuneration (cash or in-kind contribution) and the former obtains the right to associate itself with the activity sponsored

marketing of the association by the sponsor

Benefits for the sponsor : achieve communication objectives

SPONSOR

Firm, non profit organization, institution…

SPONSORED

Entity : individual, group, oragnization,

event…

Area : sports, arts, environment..

Sponsor support : financial or not

Media

Sponsortarget

SponsoredTarget

PUBLIC

Strategic approaches for Strategic approaches for sponsorshipsponsorship

Passion approach : passion of a CEO (“The Passion approach : passion of a CEO (“The dancer of the President”) : RLD (Adidas – Om), dancer of the President”) : RLD (Adidas – Om), Serge Kampf (Cap Gemini – BO)Serge Kampf (Cap Gemini – BO)

Opportunistic approach : link between a Opportunistic approach : link between a sponsorship project and a firm CEO (Sodexho / sponsorship project and a firm CEO (Sodexho / Cities – Thomson / Canal +…)Cities – Thomson / Canal +…)

Strategic approach : sponsorship integration with Strategic approach : sponsorship integration with the global strategic communication or marketing the global strategic communication or marketing strategy of a firm (banks, sport brands… )strategy of a firm (banks, sport brands… )

Implementation by the event organizerImplementation by the event organizerTargeting – Activation – Faithfulness - InnovationTargeting – Activation – Faithfulness - Innovation

Knowledge about the sponsors activities Knowledge about the sponsors activities (strategy – marketing – finance – human (strategy – marketing – finance – human resources)resources)

Event = pool of communication and marketing Event = pool of communication and marketing tools => “Fit” with sponsors needstools => “Fit” with sponsors needs

Do not implement a communication tool if you’re Do not implement a communication tool if you’re not able to evaluate or control it… Be careful to not able to evaluate or control it… Be careful to overflowing effects ! overflowing effects !

Implementation by the event organizerImplementation by the event organizerTargeting – Activation – Faithfulness - InnovationTargeting – Activation – Faithfulness - Innovation

Activation : Activation : Participative actions for the sponsors and their target (best Participative actions for the sponsors and their target (best

example : NBA All Star Gameexample : NBA All Star Game Importance of the HOSPITALITY (B to B and B to C) (best Importance of the HOSPITALITY (B to B and B to C) (best

example : PR “Village”)example : PR “Village”)

Communicate about your sponsors loyalty (faithful) Communicate about your sponsors loyalty (faithful)

If you can (very rare) : using your sponsorship evaluation If you can (very rare) : using your sponsorship evaluation about efficiency in your event !about efficiency in your event !

Innovation : NTIC – Buzz Marketing – Technological Innovation : NTIC – Buzz Marketing – Technological innovation (MSL for instance & HD for TV broadcast)innovation (MSL for instance & HD for TV broadcast)

Summary : being “sensemaking” !Summary : being “sensemaking” !

Understand the sponsor needs (your customer !) :Understand the sponsor needs (your customer !) : Targeting for your sponsor (sponsor day for instance)Targeting for your sponsor (sponsor day for instance) Linking your media planning with the communication Linking your media planning with the communication

strategy of your sponsorsstrategy of your sponsors Selecting the mediaSelecting the media No concurrency between the brands…No concurrency between the brands… Being aware for new activations….Being aware for new activations…. Making you sponsor dependant and not the contraryMaking you sponsor dependant and not the contrary

Using strategic FIT for your sponsor but You must be a Using strategic FIT for your sponsor but You must be a “visionary” (strategic INTENT) “visionary” (strategic INTENT)

Event or ClubEvent or Club

Partneship ResourcesPartneship Resources

SponsorSponsor

Event communication Event communication (sponoring resources)(sponoring resources)

VRIO

Linkage among

resources

Relational ResourcesRelational Resources

Event Manager’s Social Capital (Christian Event Manager’s Social Capital (Christian Bîmes & Jean-Claude Blanc, Patrice Clerc Bîmes & Jean-Claude Blanc, Patrice Clerc & Jean-Marie Leblanc …)& Jean-Marie Leblanc …)

Relational and business networks : GPTL Relational and business networks : GPTL (Marie Roussille (Occade) in Lyon), (Marie Roussille (Occade) in Lyon), Pampelonne (Jean-François Caujolle) Pampelonne (Jean-François Caujolle)

Public Relations (PR) ?Public Relations (PR) ? Public Relations is a management function Public Relations is a management function

which tabulates which tabulates public attitudespublic attitudes, defines the , defines the policies, procedures and interest of an policies, procedures and interest of an organization followed by executing a organization followed by executing a program of action to program of action to earn public earn public understanding and acceptanceunderstanding and acceptance. " (Edward . " (Edward Bernays)Bernays)

According to Michel Crozier (1957) : Public According to Michel Crozier (1957) : Public Relations is a set of processes used by Relations is a set of processes used by managers to gain external publics’ managers to gain external publics’ sympathysympathy and and goodwillgoodwill..

PR for events managersPR for events managers

Press-relationsPress-relations : control & development : control & development Events creationEvents creation during your event during your event Political PRPolitical PR « People »« People » exploitation (dedicated person in exploitation (dedicated person in

your organization)your organization) Construction and management of Construction and management of relational relational

networksnetworks inside and outside your event inside and outside your event Forging an Forging an « iron cage »« iron cage » for your event for your event

network : be carefull about the balance network : be carefull about the balance between quantitative and qualitative between quantitative and qualitative interpersonal relationshipsinterpersonal relationships

Physical (territorial) ResourcesPhysical (territorial) Resources

Stadium : Wimbledon, Roland Garros, Madison Stadium : Wimbledon, Roland Garros, Madison Quare Garden… Quare Garden…

Territory : Tour de France, F1, Rally & Tennis Territory : Tour de France, F1, Rally & Tennis (Monte Carlo), 24 H du Man, Stade Toulousain, (Monte Carlo), 24 H du Man, Stade Toulousain, Pau-Orthez, Derby de la Meije…Pau-Orthez, Derby de la Meije…

Infrastructures : training camps and Infrastructures : training camps and conditions…conditions…

Reputational ResourcesReputational Resources

Event legend and history : JO, America’s Event legend and history : JO, America’s Cup, Le Tour de France, Roland Garros, Cup, Le Tour de France, Roland Garros, Wimbledon…Wimbledon…

Corporate Reputation : FFT, Amaury, IMG, Corporate Reputation : FFT, Amaury, IMG, Octagon…Octagon…

SUPERBOWL VIDEOSUPERBOWL VIDEO

Réputation ?Réputation ?

World's Most Admired Companies 2007

Top 20 For the 20 most admired companies overall, FORTUNE's survey asked businesspeople to vote for the companies that they admired most, from any industry.

Rank Company1 General Electric

2 Starbucks

3 Toyota Motor

4 Berkshire Hathaway

5 Southwest Airlines

6 FedEx

7 Apple1

8 Google

9 Johnson & Johnson

10 Procter & Gamble

11 Goldman Sachs Group

12 Microsoft

13 Target

14 3M

15 Nordstrom

16 United Parcel Service

17 American Express

18 Costco Wholesale

19* PepsiCo

19* Wal-Mart Stores

Understanding the Understanding the Meaning of Performance ?Meaning of Performance ?

EventInternal Measure

P.A.P.E.RTest

SponsoringEfficiency(Partners)

PR Efficiency(Partners)

EventReputation

Performance

InstitutionalPerformance

MediaPerformance

Brand Exploitation ?

Stakeholders Performance

Shareholders performance

AthletesPerformance

Reputation = key resource ?Reputation = key resource ?

REPUTATION =>Sustained Competitive

Advantage

Value

Rareness

Inimitability

Non-Substitutabili

ty

Organization

Reputation = key asset but Reputation = key asset but difficult to controldifficult to control

Media exposition Media exposition

Being Good or Being Known (Business School Being Good or Being Known (Business School cases !)cases !)

Notoriety / ReputationNotoriety / Reputation

Actors Reputation (athletes, coach, Managers) : Actors Reputation (athletes, coach, Managers) : differences between local & major / hallmark & differences between local & major / hallmark & mega eventsmega events

Expressive organizations ?Expressive organizations ?

In the context of Entertainment and In the context of Entertainment and sport : organizations (clubs & sport : organizations (clubs &

events) are events) are expressiveexpressive

Sports organizations compete Sports organizations compete based on based on their ability to expresstheir ability to express who they are and what they stand who they are and what they stand for.for.

Emotional and symbolic Emotional and symbolic expressivenessexpressiveness is becoming part of is becoming part of the experience of doing business…the experience of doing business…

ExpressivenessExpressiveness : strategy must : strategy must serve all stakeholders and that serve all stakeholders and that means employees as well as means employees as well as customers, shareholders, creditors, customers, shareholders, creditors, suppliers, local or special suppliers, local or special communities, and the media.communities, and the media.

ProductSport competition

Services Hospitality : B to C – B to B

ExperienceEntertainment

Expressiveness implementation : Very difficult !

Linking Linking IdentityIdentity, , ReputationReputation and and

Expressive OrganizationExpressive Organization (club or event) (club or event) BrandBrand

Identity Identity (Fombrun, 1996)(Fombrun, 1996)

Corporate identity describes the set of Corporate identity describes the set of values values and and principlesprinciples employees (and players) employees (and players) managers associate with a company. managers associate with a company.

Corporate identity derives from a company’s Corporate identity derives from a company’s experiencesexperiences since its since its foundingfounding, its cumulative , its cumulative record of record of successes and failuressuccesses and failures : very important : very important for sports organizations !for sports organizations !

Reputation Reputation (Fombrun, 1996)(Fombrun, 1996)

““Reputation” is the general Reputation” is the general estimationestimation in in which one is held by the which one is held by the publicpublic ( (American American Heritage Dictionary’sHeritage Dictionary’s))

A corporate reputation represents the A corporate reputation represents the “net” “net” affective or emotional reactionaffective or emotional reaction – good or – good or bad, weak or strong – of customers, bad, weak or strong – of customers, investors, employees, and the general investors, employees, and the general public to the public to the company’s namecompany’s name..

What’s in a name ?What’s in a name ? Sports organizations Sports organizations namesnames are very strategic : are very strategic :

CitiesCities Objects, animals, groups, symbols, features : Colts – Bulls – Objects, animals, groups, symbols, features : Colts – Bulls –

Celtics – Patriots - Indians…Celtics – Patriots - Indians… Sponsors : BNP Paribas, H Cup , Evian Masters, Andros Sponsors : BNP Paribas, H Cup , Evian Masters, Andros

Trophy…Trophy…

Moreover : in a market society like ours, it’s clear that Moreover : in a market society like ours, it’s clear that names – and the reputations we associate with them – names – and the reputations we associate with them – have have economic valueeconomic value : :

Michael Jordan : continued to bring in top endorsement income Michael Jordan : continued to bring in top endorsement income from companies like Nike, Hanes, General Mills and Quaker from companies like Nike, Hanes, General Mills and Quaker Oaks (estimated $ 13 million a year)Oaks (estimated $ 13 million a year)

Jack Nicklaus, Arnold palmer (golf), Joe Montana, Wayne Jack Nicklaus, Arnold palmer (golf), Joe Montana, Wayne Gretzky, Andre Agassi, Zinedine Zidane…Gretzky, Andre Agassi, Zinedine Zidane…

Reputation and mediaReputation and media

Difficulty to Difficulty to control control inside de inside de Communication Mix (TV, Radio, Internet, Communication Mix (TV, Radio, Internet, Press, posting) !Press, posting) !

For sports organizations : you can develop For sports organizations : you can develop your your own information for the publicown information for the public : official : official website (very important !) and sometimes website (very important !) and sometimes own press (production) or TVown press (production) or TV

Linking Identity – Name – Image – Reputation Linking Identity – Name – Image – Reputation (Fombrun, 1996)(Fombrun, 1996)

Corporate Identity

NamesSelf-Presentations

CommunityImage

InvestorImage

EmployeeImage

Corporate Reputation

CustomerImage

Brand construction and control in a Brand construction and control in a very expressive organization…very expressive organization…

Place, City, Country

Public, Fans, Communities

Sponsors brand

Athletes brand

Club or Event

Brand

Brand construction is Brand construction is difficult in this context…difficult in this context…

But :But :

Reputation construction and Reputation construction and control can stimulate and develop control can stimulate and develop

your commercial brand ! your commercial brand !

Corporate Reputations can Corporate Reputations can be measured and managedbe measured and managed

1.1. Reputation managementReputation management

2.2. The Reputation QuotientThe Reputation Quotient

Reputation managementReputation management(Fombrun, 1996)(Fombrun, 1996)

REPUTATION

Visibility

Authenticity

Consistency Distinctiveness

Transparency

Communicates Appropriately with Everyone…Carries out Visible Stakeholder Initiatives…Participates in Worthy Social Initiatives…

Is Recognizably Different...Makes a Distinctive Promise…

Stands out…

Walks the Talk…Is Identifiable in its Communications…

Conveys a Consistent Message…

States Its Beliefs Openly…Discloses Information in a Timely Fashion…

Shows Responsiveness to all Stakeholders…

Is Credible and Sincere in Its Communications…Is Honest…

Is Appealing to deal with…

Visible

Distinctive

Consistent

Transparent

Authentic

ExpressivenessQuotient

The expressiveness quotient (Fombrun and Van Riel, 2004)

Reputation management in action !Reputation management in action !

You have to You have to CreateCreate

ProtectProtect

RepairRepair

your reputation your reputation

Indeed bad reputation can affect brand Indeed bad reputation can affect brand development… (OM)development… (OM)

But don’t forget your But don’t forget your resources resources reputationreputation ! !

Sponsors BrandSponsors Brand PR and CEO celebrityPR and CEO celebrity Local or cultural identityLocal or cultural identity Hospitality (stadium)Hospitality (stadium) Your history !Your history !

“Being Known” => not always “Being Good”

(Stade Français or NY Knicks cases…)

Reputations are magnets : they help a Reputations are magnets : they help a company attract resources company attract resources

(Fombrun and Van Riel, 2004)(Fombrun and Van Riel, 2004)

REPUTATION

Employees

Customers

Investors

Media Journalists

Financial Analysts

Make jobs more attractive& motivate hard work

Encourages repeat purchase& builds market share

Lowers capital costs& attracts next investment

Generates more favorablePress coverage

Affects content of coverageAnd recommendations

Measure : reputation Quotient (6 dimensions and 20 attributes)Measure : reputation Quotient (6 dimensions and 20 attributes)(Fombrun and Van Riel, 2004)(Fombrun and Van Riel, 2004)

REPUTATION

Social ResponsibilitySupports Good CausesEnvironmental ResponsibilityCommunity Responsibility

Vision & Leadership Market OpportunitiesExcellent LeadershipClear Vision for the future

Financial PerformanceRecord of profitabilityLow Risk investmentGrowth Prospects Outperforms Competitors

Workplace EnvironmentGood Place to workGood employeesRewards Employees Fairly

Products & ServicesHigh QualityInnovativeValue for moneyStands Behind

Emotional AppealFeel good aboutAdmire and RespectTrust

7-pt scale

7 = describes very well

1=oes not describe well

Transfer in the context of sports organizationsTransfer in the context of sports organizations

REPUTATION

Social ResponsibilitySupports Good Causes (Ethic)Environmental ResponsibilityCommunity Responsibility (fans)

Vision & Leadership Market OpportunitiesExcellent LeadershipClear Vision for the futureCEO celebrity

Financial PerformanceRecord of profitabilityLow Risk investmentGrowth Prospects Outperforms Competitors

Media returns - affluence Stakeholders performance

Workplace EnvironmentGood Place to workGood employeesVolunteers management

Products & ServicesHigh Quality of sport show & experienceInnovativeValue for money (tickets) Hospitality

Emotional AppealAdmire and Respect sport& athletesPassion & hedonismComsumer experience

7-pt scale

7 = describes very well

1=oes not describe well

Mega Event Mega Event

Remarks…Remarks…

Communication : fit with the actuality ?Communication : fit with the actuality ? Merchandising and memory ?Merchandising and memory ? Identity and Reputation : places – french Identity and Reputation : places – french

inheritanceinheritance The athlete is known because of the eventThe athlete is known because of the event Difficulty to target : popular eventDifficulty to target : popular event ““CaravaneCaravane” : sponsoring unicity” : sponsoring unicity Event director : charisma and celebrity : Jean-Event director : charisma and celebrity : Jean-

Marie Leblanc Marie Leblanc Christian Prudhomme Christian Prudhomme

Questions ?Questions ? How do you manage an exceptional (mega) event ?How do you manage an exceptional (mega) event ? Development ? Innovation ?Development ? Innovation ?

Answers ?Answers ? You have to maintain your level !You have to maintain your level ! Reputation management (creation – protection (doping) Reputation management (creation – protection (doping)

– repair) : pivotal resource !– repair) : pivotal resource ! If you can : transform your event reputation into a brandIf you can : transform your event reputation into a brand

++ External control (sponsors – media – institutions – External control (sponsors – media – institutions –

communities…)communities…)

Reputation Reputation Brand Brand Roland GarrosRoland Garros

5 principles5 principlesReputation ManagementReputation Management

For Roland GarrosFor Roland Garros

Be visibleBe visibleMedia choice (F2-3)Media choice (F2-3)Stadium evolutionStadium evolution

Be authenticBe authentic Traditional identity Traditional identity History respect (museum)History respect (museum)

Etre consistentEtre consistentSport advantageSport advantage

Sponsors control (colors on the court)Sponsors control (colors on the court)

Etre distinctiveEtre distinctive

Sport exception :Sport exception :Grand SlamGrand SlamClay courtsClay courts

Physical impactsPhysical impacts

Etre transparentEtre transparent

Communication (ex players)Communication (ex players)FFT is an associationFFT is an association

(now difficulty with Christian Bîmes)(now difficulty with Christian Bîmes)

Physical Resources

RelationalResources

PartnerResources

ReputationalResources

OrganisationalCapabilities

CorporateReputation

SportReputation

Learning Forecasting

Protection Exploitation

Cascade of assetsCascade of assets

Stock of resources

ReputationalResources« axes »

PartnershipResources

PhysicalResources

RelationalResources

LearningOrganizational

Capabilities

Dynamic Capabilities« Bricolage  »

Jean-Claude Blanc : resources Jean-Claude Blanc : resources management strategist…management strategist…

No Resources Dependency No Resources Dependency + +

External control of the environmentExternal control of the environment

= rents optimization (most important in France) = rents optimization (most important in France)

Ticketting€21 million

Sponoring€25.5 million

TV Rights €32 million

Public Relations€31 million

Equilibrium « Resource-Based » (2001-2006)