10 Lessons from the Debacles of FC Barcelona

These are quick commentaries on an article by Simon Kuper on FC Barcelona – "Boom to Bust: How the World's Best Football Team Blew a Fortune on Talent and Got Worse." The article has many lessons for businesses:

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1) When it comes to Talent Management, you could either develop it internally or acquire it externally.?Each option has its pros and cons.?For example, Internal Talents are more affordable and fit with the culture quickly.?However, it would take time to develop them.?

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2) Succession Planning is one of the least practiced management disciplines in our region.?It is precarious.?It is politicized.?It is underrated.?The Board of Directors should put in place a robust process for replacing critical employees, especially rainmakers.

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3) Factions within companies lead to Failures.?The moment you have groups with competing interests/objectives, shareholders, suffer.?Last year, we witnessed such an event in Bahrain.?A star CEO was left off the hook because of several board members.?The share price plummeted.?Shareholders lost value.

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4) Don't blow your cash.?Businesses, just like individuals, should have cash reserves for bad times as well as good times.?When an opportunity arises, you want to capture it.?And when you receive a market hit, you want to sustain your business with your reserve.

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5) Don't rely on accounting gimmicks.?I was not surprised to see FC Barcelona and Juventus FC engage in transfers to window dress their accounts.?When you engage in these transactions, be aware that your shareholders can smell it.?And your credibility is damaged.

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6) You should not hand the remote control to your star employees.?When you do that, you run the risk of sub-optimal decisions that may not necessarily be in the company's best interest.?Have clear policies on how key decisions should be made in terms of process and approvals.

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7) This is challenging.?However, try to balance between your short-, medium- and long-term objectives.?Companies that boost their profits in the short term by not investing in Research & Development (R & D) are doomed in the long term.

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8) Use them or lose them.?Most companies have hidden gems, employees who are not given a chance to shine.?Get to know your employees better.?Uncover their hidden talents.?Get them involved in various projects to test their abilities.?Capitalize on them.

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9) Onboard your employees diligently.?When you decide to acquire talented professionals from other companies, prepare them well to add value to your company.?This should not be done by handing documents to read.?Instead, take them by their hands.?Orient them.?Check on them. Propel them for success.

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10) If you are the company's CEO, create a culture of meritocracy: performing employees are rewarded, and non-performing employees are coached to perform better.?If they do not, they should be out. World-Class companies do that.

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Whether you run a company or a football club, there are universal leadership and management principles to follow to achieve success, and I hope you find the 10 lessons helpful.

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Mohamed Isa is an Award-Winning Speaker & 4-Time Amazon Bestselling Author.?He is the author of the Karak Series on Customer Service as well as the Axelerate Success Series.