New Research Brings Lessons From the NFL Into the Boardroom

Market Wire, October, 2008

New research by Boris Groysberg, Lex Sant and Robin Abrahams identifies portability restrictions on NFL Labor market, and applies this research to parallel situations in the business world.

When 'Stars' Migrate, Do They Still Perform Like Stars? , published in the Fall 08 issue of MIT Sloan Management Review , compares football league stats of wide receivers and punters who switched teams to their counterparts who did not. The research identifies differences between players who primarily depend on the performance of other team members and those who excel independently. The authors use this research to suggest the ways that managers should view the "portability" of talent in companies.

For example, performance of wide receivers is governed by complex interactions with teammates. Receivers must have sufficient speed and agility to escape defensive players, but they must also catch balls thrown by quarterbacks and elude defensive backs chasing them.

Punters, on the other hand, have little need for team-specific human capital. There was no significant difference in performance between punters who changed teams and those who did not.

The article describes how these concepts can be applied when managing talent in companies. Sometimes "stars," like wide receivers, are actually very dependent on the team around them. So their portability is limited. By the same token, bringing "star" talent into a company does not always yield the results that managers might hope for.

About MIT Sloan Management Review

MIT Sloan Management Review is a peer-reviewed journal and website covering all management disciplines, with an emphasis on innovation, corporate strategy, and leadership. It bridges the gap between management research and practice, evaluating and reporting on new research to help readers identify and understand significant trends in management.

Boris Groysberg is an associate professor of business administration at the Harvard Business School. Lex Sant is a managing director of Persimmon Tree Capital in Washington, D.C. Robin Abrahams is a research associate at the Harvard Business School.

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Contact: MIT Sloan Management Review Michael Hopkins (617) 253-8071

 

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