How do you come back from losing your pinch hitters AND your relief pitcher? It might save you on payroll expenses, but it will be tough to stay competitive. The remaining players on the team are great people, but they only have average abilities. How do you overcome the odds?
You can continue to do things as you’ve always done them, with an old-school strategy focused on backward looking stats, and shrewd recruiters who are able to spot up and coming players. Or, you can focus your attention on new and innovative solutions to challenge popular thought.
Baseball + Statistics
These new and innovative solutions come in the form of a winning strategy based off of statistics called “Sabermetrics.” Disruptive and unconventional, Sabermetrics was introduced as the empirical analysis of baseball, especially baseball statistics that measure in-game activity. The term is derived from the acronym SABR, which stands for the Society of American Baseball Research, founded in 1971.
It was radical thinking and a long shot to implement.
The statistical focus was on slugging percentage and on-base percentage, which were better indicators of offensive advantage and not the traditional focus for talent scouting. The Sabermetric methodology focused on doing better… much, much better, with average resources, using data science modeling.
Billy Beane, General Manager of the Oakland A’s, applied Sabermetrics to his plays and took an average, underdog team to win 20 back-to-back games, earning them a spot in the playoffs. The sports world turned its head and a legend was created. The Movie “Moneyball” circa 2011 starring Brad Pitt as Beane, showed the world the power of data science in an unconventional application.
Moneyball for Business
We recently visited with private equity firm Star Mountain Capital in New York City, led by Brett Hickey, CEO. Brett gets the Moneyball philosophy. He’s bringing it to his clients and they’re listening. With guest George Danner, President of Business Laboratory, “Moneyball for Business” hits the ball out of the park with how business and finance can use data science, mathematical modeling and analytics to achieve the unimagined.
George Danner is Founder and CEO of Business Laboratory LLC, an award-winning consultancy that uses the very latest scientific techniques and methods to improve the performance of mid-size and large organizations through problem-solving, the optimization of existing practices and advanced forecasting. He is the author of the book about business problem solving, “Profit From Science”, published by Palgrave Macmillan.
George specializes in the application of agent-based simulation modeling, Monte Carlo simulation, System Dynamics, Game Theory, Visualization, and Real Options to some of the world’s most difficult and complex business strategy problems.
To find out more about Business Laboratory, you can visit our website at www.business-laboratory.com
Also published on Medium.