Tuesday, April 27, 2010

Small Ball

Small Ball

Recently an executive leading a newly integrated business said she was not interested in playing “small ball.”  On several occasions, almost always as a response to a question of why his initiatives were so big / controversial / sweeping, former President George W. Bush said he didn’t like to play “small ball.”

Small ball is a baseball term, a reference to getting several base hits, playing it safe, and marching players towards home plate in a methodical, low-risk fashion.  The idea is that you don’t swing for the fences, because you might miss and never get to base at all.  Better instead to swing to just get on base – not to score.

If you have 100 innings to play, a 100-run lead, and a strong pitching staff, it’s easy to play small ball.  There is time, and the law of averages is on your side.Small ball is playing not to lose.


Big Ball

The opposite of small ball is big ball (also called large ball).  It’s swinging for the fences every time, looking for the home run.  It’s not playing it safe, but the reward is much greater (a run instead of just a base hit).  Imagine a lineup of power hitters, ready to smack the ball out of the park every time.

If it’s the bottom of the 9th with 2 outs and a run to tie, you don’t play small ball.  The stakes are too high, and there is no time.  The law of averages is not relevant, because you won’t play long enough to hit the averages.  Play big ball, and put your best slugger out there.Big ball is playing to win.

Business

In business, small ball is often played deep in the organization.  Actions are consistent, measured, and repeatable.  We’re looking for base hits, slow and steady.At the top, when performance is demanded and there isn’t much time to prove success, it’s time to play big ball.  A president has four years to make an impact, maybe eight, on the entire nation.  A business executive has a shorter shelf life, as institutional shareholders are often looking 3-9 months (1-3 quarters) ahead for performance gains.

Presidents and executives understand there is pressure to perform, and can’t afford base hits.  Presidents get libraries and executives get bonuses based on their decisions over a short time horizon.  The stakes are high, and the payoff is huge.

You

Everyone plays differently in different parts of life.  Sometimes it makes sense to play small ball, and sometimes you have to swing for the fences.  It’s a simple risk-reward tautology, using baseball as an analogy to life.  It's a value proposition - the give is bigger...but so is the get.

If you’re not swinging for the fences in at least one part of your life, you’re missing a great reward.  Not playing is not an option – how you play is your choice.

Are you playing to win?

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