LEARNING FROM THE BEST Gabriel Masfurroll
Foreword
I first met Gabriel Masfurroll in the seventies, when he was a teenager and a competitive swimmer. At that time, swimming played a very important part in my life because the European Championships held in Barcelona in 1970, in which I participated actively, were an excellent yardstick for the Olympic Games of 1992.
Masfurroll was living in the Residencia Joaquín Blume in
Barcelona, run by my friend Ricardo Sánchez, and we had good friends in common such as Santiago Esteva and Maria Paz Corominas, swimmers who in their day were key figures in Spanish sport.
I shall never forget something ‘Gaby’, as his friends call him, said to me when he was still very young: “Mr. Samaranch, when I grow up I want to be like you and match your achievements. I also love sport and believe I can do a lot for it”. It comes as no surprise to me, then, to see Masfurroll holding positions of responsibility in leading sporting institutions.
A few years later, I met up with “Gaby” again when he was head of the Quirón Clinic in Barcelona.
Since then we have kept in touch on a regular basis. We have met and written to each other on numerous occasions and I recall a beautiful picture, on display at the headquarters of the Olympic
Committee in Lausanne, which he gave me on one of his visits. I have followed his career very closely over these years and that phrase
“when I grow up I want to be like you”, made me take a keen interest in both his personal and professional development.
1 It is clear that Gabriel Masfurroll has progressed a lot. From nowhere he has become an outstanding businessman, running a large chain of hospitals (USP Hospitales), and has also held several positions of responsibility in the world of sport. I remember his first steps as a director of F. C. Barcelona under José Luis Núñez.
He was also Chairman of the NFL's Advisory Board in Spain, underlining his passion for business and sport as reflected in this book. I feel very honoured to be able to write the foreword to this book which describes, in a very personal way, the relationship between these two worlds which are becoming ever closer and need each other so much.
I am very proud that former sportsmen and women now hold positions of responsibility in society and have become respected policymakers working on behalf of sport. Gabriel Masfurroll has recently created, in association with noted partners, a sports management company called Agency, further proof of his dedication to bringing together the worlds of business and sport.
Finally, I would like to thank Gabriel Masfurroll for his friendship all these years, especially during my difficult time at the IOC, when I discovered whose support I could count on and who my true friends were. ‘Gaby’ was one of those friends and not only did he send me letters of encouragement but he also wrote articles in the press defending my position.
I wish him all the luck in the world and highly recommend this interesting and entertaining book which includes Masfurroll’s personal experiences in addition to stories and anecdotes of people with close links to business and/or sport. Two worlds which are a source of value and wealth in today’s society.
Marquis of Samaranch
Honorary President for life of the International Olympic Committee
June 2004
3
Introduction
“Winning is joyful, euphoric, glorious, vain and incredibly
fleeting. While defeat is sad, depressing, frustrating, at times
unfair, but usually character building.”
GABRIEL MASFURROLL
Writing a book is an adventure, especially if it is your first, but this is no conventional book. Neither is it a manual for businessmen in sport or sportsmen in business. It is simply an analysis of the links between two very important areas of modern
Western society: business and sport.
I had been thinking of writing this book for some time as a result of my own personal and professional experiences, which have always been closely linked to these two fascinating and complex worlds. Experience has shown me that sport and business, business and sport, are two concepts that are increasingly intertwined, for many reasons, and that the teachings and methodology of one are perfectly applicable to the other.
For many years now I have been taking time from my daily work to note down everything which could help me to write this book. I have often had to get up in the middle of the night and write down ideas which have woken me up.
Now, after a very busy number of years in all respects, I have decided to put down in words my personal reflections about business, sport and what they have in common. And I do so after having achieved the two biggest dreams in my life. The first, professional:
4 the start-up and consolidation of a very ambitious business project which I am lucky enough to manage, the USP Hospitales hospital group; the second, in the world of sport: having been a competitive swimmer for ten very tough years and having for five years tried to contribute my sporting and business knowledge to the board of F.C.
Barcelona, first, as a board member under Josep Lluís Núñez (1989-
1990)and then as vice-president under Joan Gaspart (2000-2003). For two years I was also chairman of the NFL’s Advisory Board in Spain.
These experiences were very different but very enlightening.
Two goals achieved, related to business and sport, two of the cornerstones of my life. But there is a third: my family. My wife
Cris and my three children, Gaby, Alex and Paola have been, are and always will be the driving force behind my efforts.
Ten years of training every day from Monday to Sunday almost all year round, year after year, led to my discovering the two sides of sport. Winning, which is joyful, euphoric, glorious, vain but incredibly fleeting. And on the other hand defeat, which is sad, depressing, frustrating, at times unfair, but enormously character building, as, with the benefit of hindsight, I can see it has taught me far more than any victory.
My various coaches, from different countries, taught me methods, ideas, strategies, techniques and even languages. From my fellow swimmers, almost all bitter rivals, I learnt the meaning of true friendship, camaraderie, and generosity, but also envy, jealousy, cheating and deceit, in conclusion everything which years later I would encounter in my professional life. Having experienced all this intensely in my sporting life it came as no surprise when I encountered it in the world of business.
I may not have realised it at the time, but I took on board
5 values which have been of great use to me since: self-sufficiency, discipline, meticulousness, perseverance, endurance, humility (in victory) and desire (in defeat). Also, in recent years through occasionally playing water polo I have learnt the importance of teamwork as opposed to the individual effort required in a sport like swimming. I believe that in life one must be able to successfully harness the leadership of the individual with the work of the team. If you can achieve this, you are sure to succeed.
I learnt a great deal from my time as a manager in the world of sport. Professional sport is a highly complex and very competitive world in which all kinds of interests exist in addition to extreme egos. When you form a part of this world, you become familiar with the enjoyment and suffering it brings. Other areas of activity appear dull and boring by comparison, although easier to handle than the business of sport which is a mixture of management, passion and a certain romanticism. Management is controllable, but passion can lead you to success or ruin, that is the grandeur of sport.
Family, business and sport. Three things which have made my life unique and exciting. It is very satisfying to combine ways of acting, ideas, experiences or procedures acquired in these three areas to optimise performance in any activity. That this is possible is the key message of this book.
I don’t pretend, heaven forbid, to lay new ground rules for operating in any area. It is not my intention to provide a magic formula for success in business and/or sport. My sole aim is to share my personal experiences, transmit all the knowledge I have acquired and how I have applied it, explain the mistakes I have made and share the successful decisions. This is not a theoretical book, quite the opposite. Experience is the best school. I speak to all
6 those who wish to learn from others: to sportsmen and women, businessmen, managers, students and all those whose believe life is the best school, and that sport is an extraordinary source of mental and physical training. I also wish to speak to those who believe in always being open to sharing and applying methods from one discipline to another, although at times this involves a certain calculated risk. This book is dedicated to all these people and in it I try to explain my particular business theories and their close relationship to the world of sport and vice-versa. In other words, how this world, which is continuously changing, can and must adopt ideas from the business world in order to advance.
Aside from my personal opinion on various areas of interconnection between business and sport, each chapter also includes an interview with a person directly related to the world of sport or business in which they express their opinion on the subject of the chapter in question. The idea behind this is to complement my contributions with those from the best and in turn make this book more entertaining. I express my sincere gratitude for the contributions made by each and every one of the persons interviewed.
Their experiences and explanations are tremendously enriching.
In conclusion, I would like to point out that all income from this book will go exclusively and equally to 3 foundations for the disabled linked to sport: Special Olympics, the Johan Cruyff
Foundation and Fundació Aura. I hope the book is a success and that many copies are sold, enabling these organisations to obtain funds to continue with their good work.
Thank you for reading it.
7 CONTENTS
Dedications 9
Acknowledgements 13
Foreword by Juan Antonio Samaranch 23
Introduction 27
1: Sport and business: so different, yet so similar With Paul Tagliabue 33
2: The beginning: Tell me where you come from and I’ll tell you where you’re going With Joe Neubauer 43
3: Predicting the future: being a visionary With Josep Lluís Núñez 57
4: Strategic planning. The road map With Miguel Indurain 69
5: The Organisation: smooth as clockwork With Josep Miquel Abad 79
6: Teamwork: one for all and all for one With Iñaki Urdangarín 87
7: Ethics and good governance: ‘Fair Play” With Miguel Trías 95
8: Consistency: sticking to your principles With José Antonio Camacho and Frank Rijkaard 103
8 9: Continuous progress: change or die With Marc Gené 113
10: The winning mentality: learn to lose in order to win With Arantxa Sánchez Vicario 125
11: Leadership: setting an example and earning respect With Johan Cruyff 135
12: Delegate: the orchestra conductor With Joan Laporta 145
13: Win-Win: we all gain With Salvador Alemany 153
14: Ability to endure: suffer in order to reach the top With Josep Antón Pujante 163
15: Humility: in victory too With Vicente del Bosque 171
16: Image: walk the talk With Manel Fuentes 177
17: Growing And Growing: where is the limit? With Florentino Pérez 185
18: The American dream: reach the top and stay there With Augusto Cesar Lendoiro 197
19: The perfect recipe: the ingredients for cooking up success. With Sergi Arola 295
9 20: The Ronaldinho effect: enjoyment and having fun at work: With Ronaldihno Gaucho 213
21: Health: everything else is secondary With Dr. Inmaculada Puig 221
22: The satisfaction of doing one’s duty: sleeping easy With: Emilio Butragueño, Santiago Esteva, Juan Antonio San Epifanio, Valero Rivera, Sergi Bruguera, Sito Pons, Joan Jané, José Luis Doreste, Mari Pau Corominas. 231
Conclusion: Sport and society by Fabián Estapé and Manuel López Moya 251
People, things and events which have shaped me and taught me to live “learning from the best” 257
Recommended reading 271
10 Chapter 11 LEADERSHIP: Setting an example and earning respect
“You don’t lead by hitting people over the head-that’s assault, not
leadership.”
DWIGHT D. EISENHOWER,
former US president
Leadership is a quality which has always intrigued me. It is difficult to define and varies from one environment and from one culture to the next.
Few have it and even fewer develop and use it well. A leader is someone special, possessing a series of skills and a charisma which make him stand out, causing others to follow him and accept his decisions. If a leader achieves respect, prestige and credibility and is honest and steadfast with just the right amount of ambition, the result is often exceptional. But if any of these qualities is lacking, sooner or later the outcome will be unsatisfactory. In addition, society changes very quickly nowadays and ends up consuming its leaders. Only those able to adapt continuously and at the same speed survive.
I have found many definitions of leadership in a corporate context and the one I like best is one I heard recently. from
Lorenzo Delpani, vice-president of Reckitt Benckisser, during a breakfast seminar organised by PWC-La Vanguardia. Delpani said:
“Inspiration is the best style of leadership that exists, better than the traditional giving of orders and controlling, as it
11 attracts and retains talented individuals”. He defines five characteristics of this leadership model:
-A Cause: that excites people.
-A Brain: That creates ongoing challenges.
-A heart: That uses emotional intelligence.
-A fearlessness: That knows no limits to challenges.
-A House: To live in harmony.
I fully agree with this definition. Leaders are able to convince, attract and give substance to their goals, converting these in successes which they share with their team.
An ability to attract talented individuals is essential. This idea is closely linked to other chapters in this book (Chapter 5,
“Teamwork”, and Chapter 10, “the winning mentality”). When a leader is able to attract new, talented individuals to his project he enriches it in such a way that, unknowingly, he multiplies its capabilities almost exponentially. As Fernando Trías de Bes and Álex
Rovira Celma say in their book La Buena Suerte (Good Luck), “you get more out of life if you share” and I can guarantee this is totally true.
In the history of business there have been many fine, groundbreaking leaders. Visionaries such as Henry Ford, in the automobile sector, or Bill Gates, in the IT field, and Jack Welsh, who revolutionised General Electric and made it a success.
In the world of sport, I have since I was a child followed the fortunes of many leaders; characters who created a stir, and who entertained and excited me. Some of them have been my idols.
In the world of football, Di Stefano, Kubala, Pelé, Cruyff,
12 Beckenbauer, Maradona and now Ronaldinho have been great leaders.
In basketball, Abdul Jabbar, Julius Erving, Larry Bird, Magic
Johnson and Michael Jordan. In golf, Jack Nicklaus and Tiger Woods.
In tennis, Rod Laver, Bjorn Borg, Chris Evert, Martina Navratilova,
John McEnroe and Pete Sampras. In my own sport, swimming: Mark
Spitz, again, Alexandre Popov, and Shane Gould. In gymnastics,
Nikolai Andrianov, Lavysa Latymina and Nadia Comaneci, who got a 10 in Montreal. In athletics, Jesse Owens, Abebe Bikila, Emil Zatopek,
Paavo Nurmi, Sebastián Coe and Wilma Rudolph, nicknamed the black gazelle, Carl Lewis, Al Oerter, Fanny Blankers Koen.
What makes these exceptional sportsmen and women and leaders different from other great athletes? Extraordinary talent, undisputed leadership ability and the fact that they are admired throughout the world. These leaders have been visionaries, ahead of their time and able to pass on their wisdom to others by teaching and sharing. They have attracted other talented sportsmen and women to them and made these better than they were, thereby adding value to their leadership, confirming their greatness and raising them to the highest echelons of sport.
Leadership has a very important emotional aspect. You can be talented or even a genius in your work and not be a leader. You may be a leader because of your enormous charisma yet not be talented in your chosen field. The ideal situation is to combine talent with charisma and add measures of hard work, discipline, exemplariness and, of course, humility. This combination, which is synonymous with the idea of a winner, usually results in an attractive working environment for the person who has it and those surrounding him, enabling them to enjoy themselves and achieve success. This occurs in all fields, not just in sport.
13 If you can create a contagious atmosphere which favours success and are able to awaken in others that special chemistry which few possess, the chances of success are high. Obviously, other factors will also be necessary, as I try to explain throughout this book, but transparent, intelligent and charismatic leadership is always a requisite. You may be a leader at work and a follower in other areas of your life. What is most important is to know your abilities and limitations and be able to undertake the role required by the team.
It is possible that someone may begin as a follower and over time, as he gains knowledge and experience, become a leader without realising it until the organisation itself gives him this role. It is then when a leader must demonstrate his leadership and assume the responsibility, risk and power that come with it.
The clearest example of sporting leadership I know is that of
Johan Cruyff (Amsterdam, 1947), both as a player and coach. I still remember the sixties, when F. C. Barcelona won the Spanish league every ten years, at best. Since 1961, under Helenio Herrera, called
“el Mago” (The Magician), one of the greatest winners Barça has ever had, the team had not won the league. After enormous efforts by the
Board, led by Agustí Montal, and thanks to the manager at the time
Armand Carabén, Cruyff finally arrived in Barcelona with the reputation of being the world’s best player. This compensated Barça for the Di Stefano affair, the Argentine having been signed by the
Catalan club but ending up playing for Real Madrid “by decree”. When
Cruyff arrived, the 1973-1974 season had already begun and the team of excellent professionals (Rexach, Juan Carlos, Marcial, Sotil, etc.) had made a shaky start. Cruyff’s debut came against Granada C.
F. Barça won 4-0 and the Dutchman scored two goals. A new,
14 historic era had begun for F.C.Barcelona which would be remembered for many years. His enormous skill, intelligence and the simplicity with which he read the game were quickly assimilated by the team which under his leadership won the league although further success was irregular until he returned as coach. Cruyff was, is and always will be a leader. He was my idol and today he is my friend. It is a pleasure to hear him talk about football.
Johan Cruyff “The leader is not always the best in the group”
“I believe that leadership is something innate which
develops over the years. It requires a certain type of
character which you have to be born with, it can’t be learned.
A leader is someone who leads a group of people, who
directs and who when he speaks does so with authority and
intelligence and so can guide the group towards one goal or
another. The leader of a group must earn the trust of
everybody, look out for the interests of the whole group, and
when problems arise must consider them from all points of view.
However, the leader does not necessarily have to be the
best or the most skilful. In the world of football, the captain
of the team does not have to be the best player in the club but
he must be able to convince the others of what is most required
at any given time. At times this creates confusion but the
leader is not always the best.
15 For example, during my time as coach of F. C. Barcelona
the leader in the dressing room was José Ramón Alexanco, even
when he wasn’t playing. Accordingly, the two concepts are often
totally different but the words get mixed up. A leader is
someone who organises the dressing room and tries to bring
peace and harmony to a place where 25 or 30 famous and wealthy
people live together.
Yes, of course, in order to win their respect you must
lead by example. A leader must realise that he has to put the
interests of the group before his own. Going back to Alexanco,
when I arrived at F. C. Barcelona in 1988 the famous “Hesperia
mutiny” had just taken place. All the players signed a document
asking the president to resign and, although Alexanco was not
one of the instigators, because he was one of the captains he
acted as spokesman in representation of his team mates, thereby
running the risk of being the first to pay the consequences. He
fulfilled the obligation to defend his team mates.
Yes, communication plays an important part, it is
essential, because it is not a question of giving orders. When
a problem arises, everyone knows he has a responsibility and a
role to play and the leader has to control and protect this
using communication. His job is to bring out the positive
aspects of the group and cover the shortcomings of one with the
virtues of another”.
I told Johan I still remembered what he had said to the team before the final at Wembley: “Go out and enjoy yourselves”.
I think that is logical because you may only get one
16 chance in your life to play in a final and it would be stupid
to spoil it because of nerves. You must give the players the
freedom to give their best, you can't ask for more. When you
play in a final you must enjoy it, we shall see at the end
whether you have won or lost, but at least enjoy it.
What I said before about leadership is also true of a
company... The leader does not have to be the best in all
aspects. The salesman can probably sell better than you; the
accountant knows more about figures than you do, etc... There
are so many different details involved that the most important
is that the leader co-ordinates everything and knows how to
obtain the best individual performance from each member of the
group in order to increase the performance the group as a
whole. Instead of imposing his will in all areas, he must let
others control certain aspects so they can express their
abilities. That is the leader’s greatest achievement.
As I have already mentioned, my sport was swimming. When you are young and inexperienced, it is more difficult to be a leader, to be accepted by others or for you to accept them. This results in numerous inconsistencies, frustrations and arguments which combine to shape your character. In my case, I began competing later than other boys of my age so during the first few years I was always last despite my strenuous efforts to catch up. At that time I was unconsciously trying to achieve two goals. Firstly, to make up for the lost years by working more than my colleagues. This required a huge sacrifice and a tremendous effort which shaped my character in
17 respect of self-discipline and capacity to excel. And secondly, I observed the leading swimmers of that time, some of whom were my idols. I tried to get close to them and learn as much as I could
(habits, ways of behaving, etc.). Prestigious consultants have since called this “benchmarking”. I soaked up everything like a sponge and
I learned. I was never a leader in my sport, at most I was a good swimmer with strong determination and an enormous desire to succeed.
The severe difficulties I went through in the competitive aspect left a bitter sweet aftertaste. I felt ready to fight and lead a project, but I needed to find an opportunity and what had been my battleground until then, swimming, was coming to an end. I had to find new goals. A new stage in my life was beginning.
And it was then, at that precise moment when, having finished college, I was offered a job in Sant Pau Hospital (1976), in the health sector. At that time it was a large sector but with little development in the sphere of management. I had found my niche. Now I had to gain experience, get to know the business in-depth and try to develop my leadership capacity, or at least find out if I had any.
The future was in front of me and it seemed fantastic. I planned my career, calculating that I would be a top executive by 35 and the boss of my own company at 45. Despite the difficulties, setbacks and all kinds of situations, and thanks to my ability to assume more risks than is usual, I took on projects of considerable scope and gathered together a magnificent team of talented and brilliant collaborators, who have accompanied me throughout these long and eventful years, and with whom I have the pleasure and the honour to lead a company such as USP Hospitales. They have encouraged me, taught me and made me better. I feel like the leader but it is a harmonious and shared leadership, which is as it should be to
18 achieve success. This has been my personal experience in the field of leadership and I am very happy with it. I am especially grateful for the talent, loyalty and friendship of Sol Jorge, Juan Arias and
Juan Pedro Calvo, the three musketeers, who have always been there to provide support especially during the hard times.
19 Chapter 17 GROWING AND GROWING: Where is the limit?
“Don’t fear competence, fear incompetence.”
DOCTOR JAIME PLANAS, plastic surgeon
On July 11, 2004 Florentino Pérez was elected president of Real
Madrid by a huge margin. The members of Real Madrid renewed their support for his ambitious project despite the team not having won a trophy the previous season. To illustrate this chapter I have chosen the accomplishments of Florentino Pérez as president of Real Madrid since 2000, when he began his galáctico project. However, I have not forgotten my beloved Barça. In that same year, Joan Gaspart was elected president of F. C. Barcelona although he did not see his mandate through. They are two contrasting examples of growth at the heart of a football club.
At the start of a new era in charge of any company or institution the big question is the goal to be achieved, where are we going? The usual response is that the project should be large and strong but work is required first to achieve this. The first step is to become firmly acquainted with the ground to be covered in a future analysis. The second step is to design the plan to be implemented. Next, the plan of action begins to be implemented which should result in the achievement of the established objectives while not forgetting to continuously review and update the plan in line with its progress and with the ever-changing environment.
When you start any project and once the preliminary steps have
20 been taken, the basic objective is usually to grow and, of course, to do it well, but at what cost? . Often, growth is essential to obtaining a certain necessary critical mass, but the crucial question is: how far to go, what is the limit?
Growth and obtaining the aforementioned critical mass is, in many cases, essential. Reaching cruising speed as quickly as possible is very important, but it is essential that the company provide its shareholders with the return they expect and offer long term stability to create employment, contentment and wealth.
Unfortunately this was not quite the case during my period as vice- president of F. C. Barcelona (2000-2003).
I will try and be self-critical and as objective as possible, although my personal view of the situation will probably not be shared by others. I do so with all my affection for Barça and my respect for all those who have managed or will manage institutions of this kind in the future.
When we won the election in 2000, with Joan Gaspart as our candidate for the presidency, after an unorthodox campaign characterised by the now traditional and unfortunate social divide between “nuñistas” (followers of former president Jose Luis Nuñez) and “cruyfistas” (followers of Johan Cruyff), we immediately made a mistake: we tried to reach a consensus and include on the club’s governing bodies all those people who had stood as candidates for the presidency. Some were incorporated directly (as was my case) and others through third parties. We all comprised a macro board that nobody understood. The president’s aim was to make peace and he achieved this in appearance but not in substance. Why? Because from the start he decided to take decisions himself, only consulting his inner circle. In other words for Gaspart the Board gave the
21 appearance of consensus but the key decisions regarding the future of the club were made by a small and exclusive group. At times he even took decisions by himself which began to provoke suspicion among those senior directors closest to him who saw how their theoretical responsibilities were being undermined.
Very few of the guidelines I try to explain in this book were being followed at that time. We tried to plan via a theoretical and unfulfilled strategic plan. There was no logic to our actions.
Decisions became increasingly impersonal and changes in criteria were continuous. I have tried to think why this was and I have reached the conclusion that external pressure became so great that it overwhelmed the president and made him lose his way. Perhaps also due to his personality which made him trust more in “outsiders” than in those who were constantly answering for him and for the club. It was a pity because that board contained magnificent businessmen, outstanding executives, and talented professionals. In addition to our being undervalued, nobody ever tried to unite us and make use of our values and capacities. In fact the opposite occurred, with internal disputes arising, what a terrible mistake!
I don’t wish to be overly critical but it was a shame and a great opportunity was missed. I would like to think that Joan
Gaspart acted in good faith but it wasn’t enough. More was required, much more. Some things were done well but they were overshadowed by the rest. The notorious environment, probably influenced by key elements, generated excessive pressure which caused everything to turn out badly and we were unable to finish our project. Perhaps it was for the best, only time will tell. The only thing I regret is having lost along the way all the romanticism surrounding the world of football and having been left with a great feeling of
22 frustration. We wanted to grow and grow, but without rhyme or reason, and what we achieved was to create a crisis which led to a new election and a radical change. I would also point out, with hindsight and on reflection, that some of the measures being taken now come from “our era”, although they have other names and are carried out in different ways.
I would like to conclude this section by mentioning some footballing achievements which should be seen in a positive light.
Firstly, a player who, if handled properly, has a great future ahead of him, Leo Messi, a teenager who we brought from Argentina, his country of birth, when he was only 12 years old because even then we were sure he would one day be a star. So far his sporting career has been meticulously managed and he has exceeded expectations with humility. He is sure to bring glory to Barça and make those of us who discovered and nurtured him proud. Secondly, we should not forget that first team players such as Puyol, Xavi, Valdés, Gabri,
Motta, Iniesta and others are products of the youth team. A Catalan sports paper has said that “only these players remain from the
Gaspart era”. Something for us to be proud of.
Since then the club’s finances have been knocked into shape and a far-reaching reorganisation carried out. In the first year, the budget was reduced and, according to what I have been told, a sound base is being created for a subsequent period of growth which has already begun. How far and until when? I don’t think the directors themselves know nor can they know. The business plan has already probably been written, but it will depend on what happens on the pitch. That’s football. If we get the right results and the club wins a number of trophies, all objectives will be achieved. If not, the notorious environment and the opposition (something which I have
23 never been able to understand in a sports club) will appear and begin to create problems. If things go wrong, the environment will swallow up the project and it will be back to square one. I hope this doesn’t occur and that the common sense of the Catalans and of the supporters of F.C. Barcelona will prevail. Only unity and the combined efforts of all involved with the club will enable it to continue to grow, flourish and become even more well known around the world. Growth is important, but it needs to be done in an orderly way, with common sense and with quality management prevailing. Fortunately, a cornerstone of the project is the coach
Frank Rijkaard, who I recommended to Gaspart during my time as vice- president on the advice of my friend Cruyff. He is intelligent and calm with an extraordinary footballing experience and especially consistent, which is difficult to find in this world. If he is given support and allowed to work without interference he will be successful, but let nobody be deceived, success is fleeting and changeable.
Let us turn now to the situation of Real Madrid in 2000, when
Florentino Pérez became president and the club had between 250 and
300 million euros of debt. Because of its debt the club had its hands tied and was unable to make plans for the future which would allow it to compete at a very competitive time in football. Other clubs such as Manchester United, Milan, Bayern Munich, Arsenal,
Juventus, etc. were already taking up positions. Oddly, in the three previous years, under the presidency of Sanz, Real Madrid had won two Champions League titles. That’s football.
Given this situation, what did Florentino Pérez do? He drew up a business plan which enabled him to put the club’s finances on a sound footing and then having achieved this create a solid
24 foundation for a two-pronged, large-scale expansion and growth plan.
How did he do it? Controversially, he managed to change the use of the land on which the club’s sports complex was located (in the
Paseo de la Castellana, one of Madrid’s main arteries and an area which is undergoing expansion and growth) and subsequently sold it to third parties which are developing a large real estate project on it. The regional and local governments of Madrid backed this plan and the club obtained enough funds to pay off its debt and build a strong, high-profile and very attractive galaxy of stars. In four years world-class players (nicknamed galácticos) such as Figo,
Zidane, Ronaldo and Beckham were signed. This strategy has given
Real Madrid a very significant media presence which has resulted in higher income from TV contracts, sponsorship, merchandising, etc.
What did he do exactly? Give supporters what the majority of them want, entertaining football, by signing the best players in the most high-profile positions on a football team. However, as the
2003/04 season proved, this strategy runs the risk of unbalancing the squad. You can have great players but a poor team. When the star players get exhausted from playing seventy games a season the team falls apart and the project is unable to respond. What will happen in the future? Let nobody be deceived. Florentino Pérez (Madrid,
1947) learns quickly and doesn’t make the same mistake twice. Real
Madrid has visibility and seems to have achieved a stable financial position. I expect Real Madrid to be much stronger in the future in all respects. It will have its ups and downs but will be at the top, fighting for the number one spot as always, with or without galácticos, the same as Barça and the other big clubs. Fluctuating results and their irrationality are what makes football great. As a
Barcelona fan I hope any success Real Madrid may have does not
25 eclipse that of the team I love, but as a businessman and manager I enjoy watching projects develop and analysing their progress in order to draw conclusions I can learn from and apply to my own business.
Florentino Pérez’s project is clearly not the result of improvisation and I was interested in learning about the strategy he drew up when he started and how he has gone about reshaping this over the years.
Florentino Pérez
“When I became president in 2000 Real Madrid had no
strategic project. Planning involved doing what was most urgent
first and the club was run from day to day. The club’s finances
were in a bad way with ordinary expenses outstripping ordinary
revenue by 50%. Given this situation the first thing that
needed to be done was to design a short, medium and long term
strategic project which was modern and consistent with the
club’s history and prestige.
First of all we analysed what we had been, what we were
and what we wanted to be in the future. Real Madrid is one of
the world’s most prestigious sporting institutions. In the
preceding 50 years, since Santiago Bernabéu became president,
Real Madrid had become a club with a culture whose values had
been passed on from one generation to the next giving it a
special place in supporters’ hearts.
Accordingly, we had to draw up a project which would
continue to develop these values and maintain Real Madrid as a
26 benchmark in terms of sport, finance, installations and behaviour.
Obviously, both business philosophy and techniques are very important in developing a project of this kind. If we understand by philosophy a combination of a clearly defined business culture and a corporate strategy which is consistent and appropriate in terms of the available resources, there is no doubt that both concepts are basic to success in managing any kind of company.
All projects have a soul and business techniques are mere instruments serving the project. Real Madrid is an emotion that wins people’s hearts by certain values. And while remaining faithful to these values, we needed to prepare a sporting, financial and business project and use the most up-to-date business techniques at the service of this project.
Real Madrid’s financial problems were not limited to its high debt. The most worrying aspect was that this debt could never be paid off because ordinary expenses were much higher than ordinary revenue. What’s more, the debt was increasing each year due to this operating deficit.
In order to increase revenue we needed to invest, and above all invest in players. By investing in Figo, Zidane,
Ronaldo, Beckham..., we created great expectations and increased revenue from attendances, audiovisual rights and from all sources to do with sports marketing.
As a result, we multiplied ordinary revenue 2.5x and this became higher than ordinary expenses”.
Let’s talk about the world of business, the dizzying speed at
27 which change occurs and business concepts become obsolete.
It’s true that the advances made in recent years have
resulted in a significant change in the way we interact and do
business and everybody
including companies, their managers and employees, have had to
adapt to continue doing what they have always done: create
wealth for society. Perhaps the most significant aspect of
these changes is the speed at which they are occurring which
requires companies to invest more in technological innovation
and training of personnel.
It is equally true that for entrepreneurs these changes
originate new ideas and greater opportunities on which to build
new projects. It is here that dynamic, innovative and effective
companies must act to continue developing and widening their
action base. Often the difference between success and failure
lies in that what some see as a threat others see as an
opportunity.
Exchange of experience in the world of business and the
world of sport? Well, I went to Real Madrid with the aim of
contributing my business experience to the club. The most
difficult aspect of a football club is the passion that
surrounds it. which is a bad counsellor when taking decisions.
The entity should take priority over the passion. Decisions
have to be taken with a cool head and at times this is
misinterpreted. But this permanent exercising of
responsibility, using the head instead of the heart, is what I
think is my biggest and best contribution to Real Madrid.
Establishing limits to development? No, it’s not easy.
28 History has shown that human beings and companies have a huge capacity for development, for imagining new activities and for creating new goals with the only limits being imagination, the ambition to advance and management capacity. But it is also essential to focus these skills on the development of the available resources with the right degree of prudence required by any large-scale project.
Accordingly, the long term vision and the goals established are what determine the limit.
If limits are to be established it is obviously the shareholders who would have to do so first of all and the other social agents involved would have to back management and the goals proposed by the company.
The shareholders, as owners, are ultimately responsible for the company’s actions, and they have the responsibility for setting the long term goals. While at the same time taking into account the legitimate interests of the other parties involved in the project; clients, suppliers, employees and society in general.
Each business project has its ups and downs, as you say, and there will be times when your competitors will be ahead of you. But consistently achieving goals is the best guarantee of long term success. So, confidence in the strategic vision and conviction in seeking goals should take priority over occasional adverse situations. In this respect it is very important to set attainable and perfectly identifiable goals which enable the organisation to stay on course and keep to its purpose.
Is the Real Madrid model of four years ago still valid?
29 The obligation of any business project is to seek perfection although this is difficult to achieve. So, each year the model has to be improved in search of excellence. Looking back now, the situation we enjoy today was a dream four years ago. And we need to continue to dream. Accordingly, the model must change with the times without our losing our identity or strategic objectives.
The future of football? I think football should become more professional. In the past revenue came solely from gate money. Audiovisual rights transformed football clubs. Sports marketing, which in the case of Real Madrid accounts for almost
50% of our revenue, has caused such a revolution that it has forced clubs to build modern and professional organisations.
Those clubs which do not adapt to this situation will lose competitiveness in the future. Clubs in England, France,
Germany and Spain have already taken a significant step forward in this respect.
30 Chapter 20
Enjoyment and having fun at work: The Ronaldinho effect
“Happiness is activity of the soul”
ARISTOTELES
Enjoying one’s work seems a dream within reach of only the lucky few. Having fun while working results in unimaginable quality of life. Enjoying work makes things much easier, goals seem more attainable and results better. But, clearly, it's not at all easy.
However, one needs to try and think positively always.
I can think of two ways of achieving this: on the one hand trust that your company, your colleagues and your bosses consider it a priority that your daily routine is pleasant and agreeable; and on the other hand, seek the positive aspect of your job oneself and try to have fun. What is clear is that your life changes if you attain this goal. What’s more, merely watching someone who really enjoys what they are doing makes you feel good in itself.
Vittorio Ballesta, president of FIAT from 1921 to 1966, said when he retired: “I’ve had fun. I have been lucky for 45 years. FIAT has been a plaything, and work a hobby. Just thinking that everyday in the world four thousand people buy a FIAT makes me happy”. He had fun because he was an outstanding individual or he was an outstanding individual because he had fun? A bit of both.
Happiness is a universal aspiration. Everybody wants to be happy. All or almost all of us have to work so it seems stupid not to try to combine work and happiness. If we achieve a balance, we
31 work better and are happier. How? To begin with, let’s look at
Ronaldinho and take note of some suggestions:
- Say thank you. At work it seems doing the job well is taken for granted and feedback is only ever negative, when mistakes are made. We all have feelings and emotions. Saying thank you is simple and costs nothing but is so unusual that when it occurs it has a big impact on people.
- Being able to say sorry. Everybody makes mistakes. When you work in a team and your mistakes affects others or your company, being able to apologize sets you apart and improves the opinion others have of you. Very few people are capable of doing it.
- Be consistent. It is very important to do what you say you are going to do. Credibility is essential and makes others trust in you.
- Listen, understand and act. At times, the daily grind is so absorbing that it prevents you from seeing anything else, even what is in front of you. We all need to be heard, understood and helped sometimes.
- Ability to identify and resolve conflicts. Anger, tension, lack of motivation, etc. Solutions are required and problems must not be made worse.
- Celebrate. All work involves a team of people. It is very important to celebrate success and share the joy of triumph with everybody. Unfortunately, modern life is so fast that often no time is granted for celebrations.
- Being able to communicate. Information must flow adequately.
Ideas must be transmitted clearly and precisely. The entity will benefit. Clear and quick communication is an essential factor in
32 achieving success.
- Pay attention to detail. Be attentive to symbolic gestures and small day-to-day things. There is a big difference between doing this and not doing it. Believe me, think how you would like to be treated and treat others in the same way. I am sure that the degree of happiness at your place of work will improve considerably and perhaps someone may even tell you that they are happy at work.
Although it may seem unimportant, details set you apart from the rest, never forget it.
This is what Ronaldo de Assis Moreira, Ronaldinho Gaúcho (Porto
Alegre, 1980), the happiest footballer in the world, does all the time. The “Ronaldinho effect” should affect us all. His team mates’ comments about him are highly significant. Xavi Hernández, for example, says “he has all it takes to be the best in the world. He brings us all together, is friends with everybody and knows how to get on with us all”. Philip Cocu adds: “He takes an interest in everybody and encourages those who are having problems. His personality and character were essential to the team’s extraordinary improvement”. Marc Overmars: “He is a key part of the team, not only because he is a good player, but also due to the way he affects the whole group, making it stronger”. Team physiotherapist, Angel Mur, says: “As a footballer he may one day be the greatest. He is also one of those players who break the silence of the dressing room and whose cheerfulness rubs off on everybody”.
Let’s see what Ronaldinho has to say.
33 Ronaldo de Assis Moreira, Ronaldinho
“Make the best of a bad job and work hard”
He arrived in Barcelona in July 2003 and since then his life has surely changed. But I wanted to ask him if he thought his joie de vivre, his enthusiasm, had rubbed off on people and if he had in some way helped to change the lives of thousands of Barcelona fans.
“I don’t know if I have changed people’s lives but I
think the fans want to be happy all the time and perhaps my
football helps in that respect. If that’s true, I would be
proud.
It is basic, essential for me to be happy at work. I
can’t imagine any other way of working. I have the good fortune
to be a professional footballer which is what I enjoy doing
most, so in that aspect of my life I have been very lucky. My
work is what I enjoy most.
Why am I always in a good mood and smiling all the time?
I suppose because a smile is a reflection of the soul and I
like to show my mood in that way. If I am always laughing it is
because I am happy and that is something you can’t hide.
Yes, I think the expression “one must make the best of a
bad job” expresses an attitude with which I identify. But I
would add: “Make the best of a bad job… and work hard” That is
more complete and more realistic.
In any job, in all professions, there are difficult
times. To someone in one of these situations I would say that
34 happiness doesn’t grow on trees. You have to look for it and it
is not easy. The only secret to achieving happiness is hard
work, humility and self-belief.
Happiness for me means being able to do what I love, to
enjoy doing it and at the same time be able to share that
feeling with my friends and family. It also makes me very happy
that the fans enjoy my football. I love that”.
“If I am unhappy I don’t play well and life doesn’t work”, he says. It’s interesting, it’s as if one thing leads to the other: If you are happy, you enjoy your work. If you enjoy working you are happier and you work better. Of course, playing professional football is a very unusual and highly paid job, but I believe the example can be extended to other activities.
Throughout my life I have always tried to see the positive side of things. Of course life isn’t always enjoyable and fun, because if it were it would become tedious and boring, but one should try to have a good time, especially when things aren’t going well.
In my youth, when I was competing, I had a really bad time because my surroundings exerted a lot of pressure on me, producing great stress and, at times, even moments of sadness. Competition was tough, my training spartan and I had to live with the pressure I was putting myself under. This situation caused me a lot of suffering and an underlying depression which affected my mood so much that I often did badly in competitions. Only a complete change of environment could help me and I decided to leave the club I had
35 always belonged to (el Club Natación Barcelona) and join the
Residencia Joaquín Blume.
There I met swimmers from all over Spain and a new coach, Jan
Freese, who believed in me, supported me and trusted me. This caused a change in my mood and my results immediately began to improve significantly. I was happy in my “job”, I enjoyed doing what I was doing and thanks to that I managed to turn failure into success.
What had changed? I was still training a lot, seven days a week and almost always two four-hour sessions a day. It required a great deal of self-sacrifice and self-discipline, but I was doing the same as before only now I was enjoying it, whereas before I wasn't. My fellow swimmers were my friends and my coach believed in me. I felt good and the results soon came, despite the pressure still being there, but I was happy, I was having a good time and enjoying myself.
I realise that many of you will be thinking that working and having fun is all very well in principle but that the real world isn’t like that, and that only the privileged few enjoy their work.
Ernest Hemingway said: “Shit, how the years fly by! At least I’ve had a good time which is more than most people can say”. I don’t believe that to be true. I have had many jobs during my life. I began at the bottom, I had very unpleasant jobs, very demanding bosses and difficult workmates but I always tried to be a
“facilitator”. I tried to make those around me, whether they were superiors, colleagues or subordinates, feel good, comfortable and as little put upon as possible. On many occasions this improved the atmosphere at work, making it more pleasant and even fun. My goal has always been, whatever I was doing, to enjoy it. Now, as a
36 businessman and manager, I try to find and use ways of ensuring that those working with me have as enjoyable a time as possible. This makes the team work and perform better and obtain better results.
And at the same time we are having fun.
37