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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)