America is stuck with overpaid, arrogant, underachieving, and relatively useless talent.’
F
Football is another illustration of the star vs systems strategic choice. As with investment banks
and stockbrokers, it seems obvious that success should ultimately be down to money. Great
players are scarce and expensive. So the club that can afford more of them than anyone else
will win. But the performance of Arsenal and Manchester United on one hand and Chelsea and
Real Madrid on the other proves that it’s not as easy as that. While Chelsea and Real have the
funds to be compulsive star collectors – as with Juan Sebastian Veron – they are less successful
than Arsenal and United which, like Liverpool before them, have put much more emphasis on
developing a setting within which stars-in-the-making can flourish. Significantly, Thierry Henry,
Patrick Veira and Robert Pires are much bigger stars than when Arsenal bought them, their
value (in all senses) enhanced by the Arsenal system. At Chelsea, by contrast, the only context
is the stars themselves – managers with different outlooks come and go every couple of
seasons. There is no settled system for the stars to blend into. The Chelsea context has not
only not added value, but it has also subtracted it. The side is less than the sum of its
exorbitantly expensive parts. Even Real Madrid’s galacticos, the most extravagantly gifted on
the planet, are being outperformed by less talented but better-integrated Spanish sides. In
football, too, stars are trumped by systems.
G
So if not by hiring stars, how do you compete in the war for talent? You grow your own. This
worked for investment analysts, where some companies were not only better at creating stars
but also at retaining them. Because they had a much more sophisticated view of the
interdependent relationship between star and system, they kept them longer without resorting
to the exorbitant salaries that were so destructive to rivals.
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