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From “Red Rising” to “One Goal” a Case Study of the Chicago Blackhawks’

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From “Red Rising” to “One Goal” a Case Study of the Chicago Blackhawks’ From “Red Rising” to “One Goal” A Case Study of the Chicago Blackhawks’ Organizational Resurgence from 2007-2009 In the early 2000’s, the Chicago Blackhawks had practically disappeared from the professional sports scene in Chicago. Ranked 29th out of 30 teams in the NHL in attendance, racking up $191 million dollars in losses, and blacked out from television, the Blackhawks were in desperate need of an entire organizational revolution. The team’s unique and dire situation was brought on by damaging human resource practices, a misguided fan philosophy, and a culture that valued making excuses and making money over winning a championship. Fans’ trust in the organization was at an all-time low. But, in 2007, a change in ownership led to a sweeping transformation in the organizational culture, bringing the fan’s needs back to the forefront. It was not one factor, but rather, the integrated cohesion of multiple actions, decisions, and initiatives focused around a central mission that led to the Blackhawks’ revolution. The franchise understood their position and their fans and created an organizational structure that supported each of these changes and new philosophies, transforming the Blackhawks from the second city’s fifth team into one of the most beloved sports franchises in Chicago. 4/9/2014 0 Table of Contents Introduction .................................................................................................................................................. 1 Methods ........................................................................................................................................................ 2 Situation prior to 2007 .................................................................................................................................. 4 Undervaluation and Underutilization of Human Resources ..................................................................... 7 Poor Upper-Level Management and Hockey Operations Hiring Decisions .............................................. 8 Misguided fan philosophy ....................................................................................................................... 12 Lack of Success and a Lack of a Winning Philosophy .............................................................................. 18 Team Performance .............................................................................................................................. 18 Lack of a Winning Philosophy ............................................................................................................. 22 Outspoken and Stubborn on Controversial Matters .......................................................................... 27 Issues in the NHL ..................................................................................................................................... 32 The Resurgence ........................................................................................................................................... 37 Personnel Changes .................................................................................................................................. 39 Organizational Philosophy Changes ........................................................................................................ 43 Televising Games .................................................................................................................................... 50 Changes to the Team .............................................................................................................................. 59 Marketing Revolution ............................................................................................................................. 63 365 Day Marketing Strategy ............................................................................................................... 66 Creating an Atmosphere of Accessibility ............................................................................................ 76 Understanding the Fans ...................................................................................................................... 85 Respect for Tradition .............................................................................................................................. 89 The Winter Classic ................................................................................................................................... 96 Online Presence and New Media Trailblazing ...................................................................................... 100 Website and Social Media Strategy .................................................................................................. 100 Blackhawks TV ................................................................................................................................... 108 Discussion.................................................................................................................................................. 117 Conclusion ................................................................................................................................................. 129 Exhibits ...................................................................................................................................................... 149 1 Introduction In 2004, ESPN named the Chicago Blackhawks the worst franchise in all of professional sports. Once revered as a timeless Original Six team, with fans that literally shook the rafters of Chicago Stadium with their cheers, the Blackhawks were relegated to the Second City’s fifth team. With out-of-touch ownership, outdated organizational philosophies, and a brand and marketing strategy greatly in need of reinvention, the Blackhawks struggled through the lockout and the following season, recording near NHL-lows in attendance and TV ratings. Yet, in 2007, a change in personnel sparked a transition that would soon revamp the entire organization and bring the Blackhawks back to prominence in Chicago. This thesis takes the form of a case study, and has three parts. The first examines the desperate situation that the Blackhawks were in throughout the early 2000’s until mid-2007, providing context for the sweeping changes, and also exploring why certain strategic decisions turned out to detriment the organization. The second part focuses on the drastic strategic changes made during the transitional period from 2007 to 2009, when Rocky Wirtz and John McDonough took over the Blackhawks front office. These changes sparked more than a marketing revolution – it was an entire organizational reinvention that encompassed and involved every department. The analysis will endeavor to show how it is not one dominating factor, but rather, the integration of many smaller decisions that enable an organization to succeed. The third section will attempt to cohesively discuss and extend the effects of these individual changes on the entirety of the Blackhawks organization, and examine how the integration of fan-centered decisions has helped the Blackhawks to achieve and sustain high levels of fan satisfaction and engagement. 1 While this thesis is a case study – and therefore specific to a particular team under a unique set of circumstances, it could indicate areas for other struggling sport franchises to consider refurbishing. However, in examining the interplay and timing of each factor, it will also show the subjectivity that keeps sport marketing from morphing into true science. By examining each factor that went into the Chicago Blackhawks’ organizational and marketing resurgence, this thesis will bring better understanding of the critical importance of organizational and business strategy in turning around struggling franchises. Methods Taking the form of an extensive case study, this thesis was developed utilizing several research methods to gather and analyze information. Research began in the summer of 2012 and extended into the fall of 2013. In-person interviews were a primary form of research for this study. Over the summer of 2012, I visited the United Center and conducted several interviews with Blackhawks employees from a diverse range of departments. These interviews were scheduled and facilitated with the assistance of Human Resources Coordinator, Kyleen King. During my visit, I was able to interview representatives from the following departments: Ticket Sales and Service, Finance and Accounting, Marketing, Corporate Sponsorship, and Community Relations. The information gathered at this point served to help guide the direction of subsequent research, particularly in the analysis of relevant articles and press releases. Also in the summer of 2012, I was able to attend the Blackhawks Convention to conduct formal observations. My recordings were focused on the layout and the various offerings of the event. This process facilitated analysis of the Convention and its integration with the rest of the Blackhawks’ marketing strategy. Additionally, I was able to conduct informal interviews with Blackhawks personnel on site at the Convention. These 2 conversations were the basis for searching for additional research on topics like season ticket sales and community outreach programs. This study also utilized the analysis of primary sources such as newspaper articles and press releases from the years prior to and during the Blackhawks transformation. Specifically, newspaper analysis
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