#28 All Blacks, culture and investing
How we can learn from the All Blacks principles and apply them to identify outstanding corporate cultures and management teams
It might seem I am coming with an off-topic today, but you will see I am not. As a former rugby player, I am always proud of the special values and culture this sport gave me. Rugby is a one-of-a-kind sport and it is hardly comparable to any other. Despite being a tough and physical game, its idiosyncratic culture stands out.
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Rugby, unlike many other sports, remained an amateur sport until 1996. Years before there had been world championships, but the players remained completely amateur. The recent professionalism has meant that certain values have remained to this day.
It is always surprising to anyone unfamiliar with rugby the physical difference between the different players on a team. As you can see in this picture, there is no such thing as a prototype body for a rugby player. There are 15 players on the field in a rugby team, and it is fair to say there are 11 different archetypes of body structures. From the “strong” props and the high-towers second rows to the small and slippery scrum-half and fast wings. Each one has its role, but the success of the team depends on ALL of them performing their role in the interest of the others. A player could not touch the ball in the whole game and still be the MVP. This is an absolute sacrifice for the team.
All this culminates in a CULTURE represented in 3 entities: the referee, the figure of the captain, and the respect for the rival culminated in the 3rd half. Contrary to almost any other sports, the referee is a sacred figure in rugby. He can be wrong and penalize you, but the decision as a judge is respected. If a player dares to address the referee without being asked, that player is immediately expelled from the match (sometimes even from his own team). The only player authorized to speak to the referee is the captain, but always with respect and treating the referee as “Sir”. And it is because the captain has a superlative role in a rugby team. He is the extension of the coach in the game and is the one who makes the decisions. He plays the leadership role during the game and even outside of it, being the one who leads the last training session before the game.
Finally, despite the disputes, hits, and testosterone that occurred during a match, the players of both teams greet each other one by one after the match, including the referee. But it does not end here. After the shower, the local team invites the visitor to eat and replenish their strength with a few liters of beer, in what is called the third half.
The All Blacks principles
The All Blacks are the most successful team (actually they are New Zealand's national team) of all time. How is it possible that such a small nation has become the benchmark worldwide? Obviously, Rugby is a religion in New Zealand, but there is more than that.
Becoming an All-Black is way more than just becoming part of an elite rugby team. It is a childhood dream. And it brings with it the pride of representing a nation, of passionately living a dream, but also a sense of duty and respect for a legacy.
These are the 15 principles of what it means to be an All-Black. Believe me, they are not empty nice-looking sentences and bullshit. They truly live up to them. And they show it on and off the field.
And it is all about the little everyday details. It is well known how the All Blacks clean themselves the changing rooms after every match:
"It's an example of personal discipline, it's not expecting somebody else to do your job for you, it teaches you not to expect things to be handed to you. If you have personal discipline in your life, then you are going to be more disciplined on the field."
There are literally 1000 examples of how this culture is impregnated deeply in the All Blacks. One could argue that it is just another element of their success. But I truly believe this culture is their ultimate competitive advantage.
An All-Black management team
Many investors believe a meaningful intrinsic corporate culture is the real source of long-term success, ultimately becoming a real competitive advantage. In the way culture can permeate a team, the same thing happens in a company.
Personally, I have a certain obsession with finding companies whose corporate culture is different and special. Paraphrasing Buffett once again, you look for three qualities: intelligence, energy, and, indispensably, integrity.
It was quite viral in the rugby world a picture of Richie McCaw (eternal All Black captain, world champion, and first All Black to reach the 100 caps) being the last to leave the changing rooms because he was cleaning and leaving them as if no one had passed by. That is the true reflection of leadership and intimately linked to what Buffett has always mentioned about the CEOs of his companies, with Mrs. B as an example.
In reality, everything translates into management whose work ethic is just superior. For them, it is no longer a job. The companies are their passion, their lives, the only thing that exists. Something transcendent to their mere existence.
Inner Drive developed the following 8 points to explain the reasons for the winning culture of the All Blacks. They are, word by word, applicable to the outstanding management of a company:
Capitalize on key turning points: learn from past mistakes and failures, using these moments to crystallize your personal philosophy and strategy.
Flexible and evolving mindset: great companies are always reinventing themselves, innovating, and disrupting their own business models. There is evidently a thin line between having a clear vision and sticking stubbornly to an idea that isn't working.
Dual management: what I would consider decentralized operations. In the same way, each player in a rugby team has his own role, so it is a successful company.
Better people make better All Blacks: behavior on and off the pitch is a selection criterion for the New Zealand team. The management team firmly believed that helping their athletes grow as people helps them to develop as players.
One great way to help promote this is to ask the team to create a list of values, replying to questions such as “What does it mean to be an All Black?”. Then, ask them to match behaviors with these values. This way, the whole team will become accountable for each other.
Take responsibility: players within the New Zealand team are encouraged to be accountable. This sense of responsibility empowers players and gives them a sense of ownership. Taking responsibility isn’t about working on your own – you can often use others to help with this process.
Leadership: leadership within a sports team, or the business world, can take many shapes: on-field leaders come in different styles, even in the same team. Some are loud and motivating, whereas others quietly drive physical standards on the pitch, and of course, some do both. However, two common ways use to include being a role model and listening well.
The expectation of excellence: this was embraced by athletes telling each other their personal motivation, as well as appreciating the team history, being the best, and the importance of leaving a lasting legacy.
Team cohesion: being approachable, having role clarity, and enjoying the experience.
Running a company is running a big team. I wish you good like trying to identify some All Blacks out there. They won’t ensure winning the World Cup always, but they will increase your odds to preserve your capital.
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Awesome. Makes me want to play rugby.
Great Sunday read, thank you! Regarding rugby and overall sports, no institutional education gives one the education that sports will install into one from an early age when it comes discipline, team work & grit ... cheers!