Background
The Chicago Cubs were organized in 1870 under the name the Chicago White Stockings. William Hulbert was the president and owner of the franchise at this time and was credited with creating the National League. After Hulbert’s death in 1882, Al Spalding took control of the franchise. Tribune Co. later purchased the franchise from the Wrigley family in 1981. The Tribune’s goal for the franchise was to use the team to stimulate growth for the company’s broadcast programming.
The current owner is Joe Ricketts, who purchased the franchise in 2009. Crane Kenney, former lawyer and consultant to the Tribune Co. was given the task to revamp the business operations and mainstream them into efficiency. Theo Epstein was brought in after the 2011 season, as the president of baseball operations to revitalize the organization. Mr. Epstein played a pivotal role in turning the once struggling Boston Red Sox’s into a championship team. Additionally Joe Maddon was brought on as the team manager to develop new talent. Mr. Ricketts’ three priorities for the Cubs were to be a good neighbor, second was to preserve the historic Wrigley field, and lastly and most importantly was to win a World Series.
Problem
After the sale to Joe Ricketts many problems began to surface. The franchise was understaffed and did not have the proper equipment or facilities to produce a winning team. Because of previous ownership objectives the franchise was struggling to become competitive in the MLB. Salaries of veteran players, who contributed very little, weighed down the team financially. The field itself was in disrepair and was not being maintained. The administrative functions of the ball club were outdated and inefficient. Because of these problems, Mr. Kenney explained that the franchise was a “100-year old startup”.
Analysis
The franchise’s problems stem from the goals of previous owners. The understaffing of the franchise produced inefficiencies throughout the organization that held the franchise back and kept it from becoming successful. Having staff working in cramped and offsite locations is not conducive when it comes to operating a franchise and trying to make it competitive in the MLB. During the period of ownership by the Tribune Co. many of the operations were conducted off site by Tribune Co. staff that were out of touch with the team and its players. The goal of the Tribune Co. was not to build a winning franchise but to stimulate and enhance broadcast initiatives that the company set. Because the majority of the staff was from the Tribune Co. this caused the workforce to emulate the goals of the company to the detriment of the Cubs. The technology that the franchise was using was out of date causing lack of communication that spilled into other parts of the organization. Ticket orders were being fulfilled over fax and communication of staff rarely occurred through email making accountability virtually impossible. The field was not being properly maintained causing the ballpark to slowly fall into disrepair. A ballpark that was a staple in Chicago started to loose its significance among fans. Players who were at the end of their careers were still being paid large salaries that restricted the team from acquiring new talent that could contribute to the team.
Crane Kenney was correct when he said that this was a “100- year old startup”. After the change in ownership the franchise was behind in most aspects of operating as a major league baseball team. The new leadership of the franchise needed to operate as if it was a completely new franchise because of the way it had been run for the past 100 years. All the operations needed to be changed as well as the facilities in which the operations took place. The franchise was forced to start from scratch and take a different approach when it came to running the franchise. This is why Mr. Kenney compared the Cubs franchise to a startup and why it was a correct insight on his behalf.
Recommendation
The Cubs organization needs to stabilize and streamline its internal operations. The entire front office and leadership of the team need to align their goals for the franchise to be successful. The organization needs a company wide email server where all communication can be accounted for. If the Cubs want to be a winning team, then winning needs to be the biggest goal of everyone within the organization. Weekly meetings need to be held to emphasize the organization’s goal of winning the World Series. New hires must be made so the organization is fully staffed and able to withstand a 162 game season in the major leagues. The organization must recruit the best professionals The Cubs will want to invest in young talent that can be developed by the managers and the coaching staff. All facilities and equipment must be updated; this will help the organization stay competitive relative to other teams. Theo Epstein needs to be in constant communication with Joe Maddon and the coaching staff so he can make the best decisions regarding player personnel. Wrigley field needs to be maintained and updated, while at the same time keeping its historic image to which the fans are accustomed. This will show the fans that the Cubs organization is trying to be a good neighbor and that the team really cares about the community.
The issue that the organization has struggled with the most is setting goals that will further the franchise. Theo Epstein must unite the team and the staff so that they can come together and set attainable goals. Development of young prospects is vital to ensuring long-term success for the team. The Cubs scouts need to spot young talent in the minors and get those players ready for the major leagues. This is a more cost effective way of gaining talent as opposed to signing established players that are already in the majors. Joe Maddon and the coaching staff need to identify veteran players on the team that are looked up to by players and make sure that those leaders know the goals of the organization and can effectively communicate them to the rest of the players. The Cubs brand is historic and well known to its fans and its city. The team has repositioned itself in the minds of its fans and in the minds of other teams. The Cubs need to stay true to itself and must not drastically change the brand. The difference now is that the team is a real contender in the major leagues. Promotion of the teams goals and values need to reach fans, which will instill confidence and goodwill.
Conclusion
The Cubs change in ownership and personnel reversed the way the franchise was operated for the past 100 years. Changes in the leadership of the organization produced positive results for the team. All operations shifted towards the goal of becoming a winning team and championship contender. The iconic brand of the franchise maintained throughout the process, keeping fans engaged with the brand. It is understandable to think that the team will continue its success under the new leadership team.
Addendum
Point of View
I grew up watching the Cubs and have been a lifelong fan. I did not always agree with some of the decisions regarding the team but that did not change the way that I felt about the team and its players. Going to Cubs game was always an experience that went beyond the actual game. The majority of times I went to games at Wrigley field the Cubs lost, but this did not ruin the experience for me. I loved going to the historic ballpark and enjoying the scenery with my family as we watched the Cubs play.
I am partial to the Cubs and admit that I have a bias, but I feel that did not find its way into the case analysis. I do feel that the Cubs are going to be successful for many years; I say this as a fan and as a consultant that has looked at the facts subjectively. I believe this because of the immense changes the franchise has undergone in the last 5 years. I think with the current leadership and players that the future of the organization is going to be filled with success.
Concepts
The current front office for the Cubs completely rebranded the organization for the betterment of the team. They got rid of the old leadership and players that did not contribute to the ball club and got new and fresh talent in the dugout. They have restored the field back to its historic greatness that Chicagoans love. The front office is forward thinking and is always concerned about acquiring new talent and staying a winning team. This is what the Cubs were missing all those years when the team was struggling to be successful. The organization was not being guided in the correct direction and the goals were not what was best for the team. Now that the right personnel are in charge things can be ran like they should had been for the past 100 years.
Assumptions
The Cubs have recently given Theo Epstein a contract extension. Because of this it seems like the team is happy with what Epstein has done with the team. I think that this is a great move for the organization because Epstein is a proven winner. I think that the Cubs will keep winning under the leadership of Epstein. I don’t see any significant changes occurring to Wrigley filed in the near future because of its significance to the organization and to the people of Chicago. With this being said the field needs to be maintained so the Mr. Ricketts can keep his word of being a good neighbor. Joe Maddon has done a great job managing the team and I believe that he will want to stay with the team for the next few seasons to come. If the Cubs can keep winning and if management can keep guiding the organization in the right direction then I believe the Cubs will be a winning team and championship contender for many years to come.
Implications
Because of the variety of changes to the Cubs organization as well as the contract extension given to Theo Epstein, I believe that Mr. Ricketts likes the way the team is headed and that the organization is ready to have many years of success. The fans are extremely happy with the team and its players and crave more World Series titles for the city of Chicago. I think that all of this is possible because the Cubs have an identity as a team now. The organization has a set goal of winning, and they know that they can accomplish it as a team. I believe and hope multiple World Series titles are in the future of the Chicago Cubs.