How to Take on Giants: Seven Lessons from One of the Greatest Underdog Sporting Stories of our Time.

The champagne has lost its fizz. The hangovers are a distant memory. The victory parades are done, and the incredible result is now official and recorded in the history books. Emirates Team New Zealand's stunning win over Team Oracle USA, in the 2017 America’s Cup, will go down in history as one of the greatest underdog stories in recent sporting history.

It was a remarkable turnaround for the Auckland-based syndicate after suffering a defeat at the last regatta in 2013, giving up an 8-1 lead over Oracle (owned by Larry Ellison).

Before we get to the juicy stuff, let’s take a little step back. The America’s Cup is the world’s oldest international sporting trophy, and the most prestigious yachting race of all time. Affectionately known as the Auld Mug, the America’s Cup was first held in 1851.

The regatta happens every four years, and explained very loosely, the defender of the cup holds the power to set the rules, regulations and competition boundaries for all challengers.

Throughout the first 155+ years of racing the America’s Cup, the yachts raced were all single hull. However, more recently, the boats have changed rapidly through design development and are now raced as multi-hulls. Teams, or syndicates as they are known, are usually backed by big money.

I will try not to be bias as I take you through this journey, however being a Kiwi, it’s pretty hard not to after what happened four years ago.

The team had returned home to massive public scrutiny, arriving back to New Zealand without the goods, and after accepting government funding for their campaign, the country was less than impressed. The team disbanded quickly, with other countries picking up some of the talented team members to start preparing for the next Cup event, to be held in 2017.

Grant Dalton, the stalwart, and a member of the team since 2003, refused to accept that this would be the last time Team New Zealand would sail again in the America’s Cup. Over the next four years, Dalton took command, leading from the front to bring the team back to challenge again for the America’s Cup.

Four years later, Emirates Team New Zealand, on a shoestring budget and with a less experienced team, managed to beat some of the world's best at their own game, and get back on top. I have picked out a number of scenarios that stood out for me in this campaign, and what it could mean for you, and your small business, taking on the giants in your chosen industry.

Lesson 1: Planning. It's as boring as Bat Sh*t. But essential for success.

There isn’t a ton of evidence, or stories, that have come out from Team NZ’s success that suggest there was rigorous planning involved. It’s just something you have to accept when there are many moving parts, and one end goal in mind. Similar to the welds in a car, you know they are there, it keeps the car together, but it’s not necessarily something that sticks out, nor is it an exciting feature.

After the horrendous 2013 campaign, Dalton and Skipper Glenn Ashby sat down and constructed a 20-step plan on how they were going to tie it altogether, and win back the Cup. They agreed on two major aspects within the plan. First, they would push the boundaries when it came to technology and innovation, and secondly, they would have to do it with a limited budget — almost half the operating budget they had in 2013.

Having a well thought out plan, was essential to the Kiwi’s success. It allowed the early members of the team to understand the vision, the direction, and created awareness of all the factors involved when making critical decisions.

Lesson 2: Lead From the Front — Envision, Inspire.

First things first, if you are going to be successful when entering a new space dominated by established players, you will need to be a visionary. Team New Zealand had that inspirational leader in the hard-nosed Dalton.

Dalton led from the front, creating a culture ripe for success. Creating a belief among the team that they were partaking in the America’s Cup for one sole purpose — to win. After the devastating defeat in 2013, Dalton was removed from the sailing team and was put in focus as the primary tone setter and fundraiser.

Dalton was in charge of two groups: Group one, the sailing team, and group two consisted of current and future investors. Both groups were required, and both were integral parts for the Team New Zealand campaign.

A natural leader and visionary is someone who can tell the story of ‘why.’ This is the storytelling skill to develop your company’s vision, and involve and inspire your employees to buy-in and believe the vision.

Why is this important?

In the early days of business, that is usually all you have, a vision. Your team will likely be required to work long 10-12hr work days, sometimes for weeks in a row. They need to believe it is worth it.

In Team NZ’s case, not only did they have to work as hard as the other teams, but they had to do it for a fraction of the salary. They needed to believe in the company’s ‘why.’ Dalton, also had to convince investors from around the world that it would be a beneficial investment.

Having a team understand and believe in the company’s ‘why’ is a strong phenomenon. This was no more apparent than after the Team’s dramatic ‘pitch-pole’ crash during their earlier racing in the regatta against Sir Ben Ainslie and his BAR Great Britain Team.

With extensive damage to the boat, it could have been the decisive moment which halted the Kiwi team. Remarkably, the team pulled together and worked through the night. Repairs were completed in time for racing, and the team was able to continue the regatta.

In the early stages of business, there is a huge amount of work required, stress levels are high and failure is always around the corner. Having a strong leader within a company is essential for a startup to overcome adversity, and to continue developing the path to success.

Lesson 3: Being Innovative Should Be The First ‘Weapon’ You Bring To The Fight.

The holder of the America’s Cup, sets the playing field (in this scenario, a sailing course) the design specifications, racing conditions, and even how heavy the crew can be, are only some of the rules set by the holder. Ultimately, it's designed to favour the holder of the Auld Mug, who then dictates the confines for the challengers.

When ETNZ arrived in Bermuda, it was evident that their boat had undergone some subtle design modifications. One huge talking point was their decision to replace the hand-driven grinders (this is what’s used to move the hydraulic oil around the boat). Instead the team decided to use pedal power, or Cyclors, as they are now affectionately known as in the world of sailing.

You would have thought that choosing leg power over arms would have been a logical choice made years ago. Had it been considered previously? Maybe. But it was never put to action, and due to how much the America’s event had developed over the last decade, the reliance of moving oil pressure around the hydraulic system had become crucial; thus an alternative solution being trialled, and then implemented, by ETNZ.

This tweak has since suggested that the Kiwi’s boat was able to be 30% more efficient in their workload. It also allowed the sailors to be more effective. By using their feet to work the boat’s hydraulics, the cyclors had freed up their hands, thus allowing the crew to share the load and focus on other key areas of sailing the boat.

This was no more apparent than Blair Tuke’s hybrid role as a cyclor, and also the controller of the rake of the dagger boards that helped the boat on its foils.

When entering into an industry that seems to have dictated the terms of play, take a step back and look at the race from a different perspective. Because your competitors have chosen a tried and true method, does not mean that it’s the best way of playing the game. 

The market changes, come up with an innovative way of delivering your company, and the results can be magnificent.

Lesson 4: Make Decision’s Quickly, It Will Get You In Front Of The Pack. 

One benefit of starting your own business is that you will be a member of a small robust team (in some cases the founding team is singular). The size of the team allows you to move forward, test, and adapt quickly. 

The alternative is a rigid, formal structure, where a decision made requires an email for a meeting request, before upper management can do a SWOT Analysis to understand the risk and benefit of the idea. The turnaround time can be agonising, disheartening, and off-putting for any future suggestions.

I am not saying in anyway ETNZ was a small team, however they had the mindset (and a business model per se) of a small team that were in ‘startup mode’ where decisions could be made quickly. Yes/No, move forward.

An insightful example of this, that has surfaced post the win, was when Caley Wilson, founder of the New Zealand startup, Blinder, approached ETNZ’s Communication Manager Hamish Hooper, with regards to an intro and the possibility of trialling their technology (which was still in beta). Within two hours of the email being sent, a meeting had been confirmed. Shortly after Wilson’s meeting with Hooper, the big bosses had approved the trial of the technology.

Being able to make decisions in your business quickly allows you and your company to find out what works, and what doesn’t. Whether you are in your company's infancy or an established business, having the underdog mentality, and thinking continually that you need to move quickly with decision-making , will help your growth immensely. Build. Test. Review. Build. Test. Review.

Being able to decide quickly on what’s working and what’s not, will help your business to continue to grow and move forward. As the founder, encouraging this behaviour is a must. Implementing a system within your company to ensure quick decisions are made, with resulting changes communicated swiftly to the appropriate individuals, should be agreed on in the early days.

As CEO of Netflix, Reed Hastings, suggests, “Companies rarely die from moving too fast, and they frequently die from moving too slowly.”

Lesson 5: Many Of The Right Hands Will Make Light Work. Recruit Smart.

ETNZ did not have the luxury of a large budget, which meant they would not be able to compete directly for sailing talent on a salary basis. They knew this. They had to change tact and look at a different way of attracting top talent. This required a different approach to what they viewed as ‘talent’. Instead of searching for experienced sailors, they looked for raw talent from other industries.

It’s not uncommon for America’s Cup teams to recruit athletes from high power-endurance sports. Rob Waddell, a New Zealand Olympic rowing gold medallist and member of Team NZ, 2003, 2007, & 2013; Ky Hurst, an Australian Iron Man and long distance swimmer and member of Oracle Team USA 2017, are just some examples.

In 2017, Team New Zealand recruited team members from areas much further away than sailing or any other water sports. Personally my favourite stories that have come out of ETNZ winning the America’s Cup is how they built their team of champions. Maybe it’s my background in recruitment that got me interested.

So what did they do? ETNZ implemented a different approach. They looked for talent where other teams were not. The following three examples show how the team looked outside the normal circles of sailor talent.

Ryan Thomas – Mechatronics Engineer – ETNZ required an expert in programmable, logic controllers to help solve any problems with the pedal-powered hydraulic systems on the boat. The hardware system that the boat uses is very rare.

Technical Director, Dan Bernasconi, used LinkedIn to find the perfect team member. Working 1.5hrs away, in Hamilton, for a packaging automation company, Ryan was using the exact hardware technology. A far cry from the boat building yards, but a perfect fit for ETNZ team. 

Nick Bowers – Drone Pilot (Performance Analyst) - Suggested as the team’s secret weapon in winning the America’s Cup, Nick's involvement with the NZ camp was kept more secretive than the Cyclors design.

Nick was signed up to the team two years out from the start of the regatta. Bowers was spotted by skipper Glenn Ashby after an Italian sailing regatta. The former surfboard maker and professional kite surfer turned drone pilot, was brought into the team thanks to his incredible work with drones.

Bowers had the capability to build custom drones and then fly them alongside the Team NZ boat just above the water. This provided footage of how the boat reacted, allowing invaluable data for the team's design team.

Simon van Velthooven – Cyclor – When the Kiwi team decided to implement the Cylor system, to move the hydraulic oil around the boat more effectively, they understood they needed a different power source.

Naturally, (as you would), the team turned to an Olympic Medalist nicknamed ‘Rhino’. Again, for obvious reasons, Rhino was kept a secret hire until the 11th hour. With zero sailing experience, it’s easy to understand that this recruit paid off its dividends.

All the above team members had little or no sailing experience before being hired, they were recruited not because they had been successful for another yacht racing team, but because they had talent in another field. With a little invested time into them individually, they were able to get up to speed quickly and become invaluable members to the team.

In any business, you are going to need an excellent team to take your company to the next level. When you are starting out, competing directly with your established competitors on salaries will be difficult, you don't have the brand, or likely the budget to compete.

In my experience within the world of recruitment, I saw it too often, clients not willing to seek future team members from outside the usual talent pool.

Think outside the box when recruiting team members. Look at different industries where certain experience can be leveraged, use free online tools (LinkedIn, MeetUp, Indeed, Facebook) to search and recruit talent.

Most importantly, encourage your team members/employees to source talent as well. Sometimes they will have a better idea of what skills are needed than you do.

Understandably, the mechanics of sailing in the America’s Cup has developed dramatically over time, which in turn has changed the way of racing. It’s less on weather patterns, and more on hydraulic pressure. However, having the knowledge of which direction the regatta was going allowed ETNZ to use other mediums to bring in suitable talent.

“When everyone zigs, you zag”.

Lesson 6: Being Late To The Party Ain't A Bad Thing. 

The Kiwi team arrived in Bermuda much later than their rivals. The majority of the competitors arrived early to start testing, however ETNZ did things differently (are you seeing the trend?).

Turning up later meant they had minimal time to test themselves in the environment. The result of this? It created a feeling amongst the rivalry teams that the Kiwis would be chasing their tails to get up to match speed. This, combined with the fact that Peter Burling had very little match-racing experience, meant the Kiwis were once again viewed as non-threatening.

Fortunately the Kiwi team relied a lot on data. They were aware of the conditions and had spent a lot of time practicing in New Zealand under the expected Bermuda environment.

By turning up late to the party, their unique boat development, specifically the ‘Cyclors’, were not under the watchful eyes of their competitors, allowing the team to keep a few trick cards up their sleeves come the start of the regatta.There are numerous examples where a small startup has entered an industry from a slightly different angle, and knocked the older brother off its perch: Myspace/Facebook, Blockbuster/Netflix, Taxis/Uber, Hotels/Airbnb...

It’s that mindset of doing things differently that, as a startup, you need to have. You need to rely on the data, and trust that your product will have the desired effect on your target market.

Lesson 7: Time to Do The Real Work.

The exciting thing about the next America's Cup regatta is that it’s likely to go back to its roots of single hull racing, a move backwards, but in the future. This is bound to open up further innovative and design developments. For the New Zealand team, this means they will need to work even harder to successfully defend the America’s Cup, regardless of their advantage in setting the rules.

Much like yourself and your business, when you do reach the top and you are number one, this is when the real work will begin for you if you want to stay there.

Conclusion:

Here’s the seven lessons again:

1. Planning. It's as boring as Bat Sh*t. But essential for success.
2. Lead from the front — Envision, Inspire.
3. Being innovative should be the first ‘weapon’ you bring to the fight.
4. Make decision’s quickly, it will get you in front of the pack
5. Many of the right hands will make light work. recruit smart.
6. Being late to the party ain't a bad thing.
7. Time to do the real work.

Now I know you could argue that the difference between Team New Zealand’s campaign and your startup is that TNZ had history, they were seeking revenge. Whereas you are, most likely, entering the market for the first time. It’s different, they have experience and a driving force, you don't. I get it. However, whatever the reason you have for going into business, these lessons can encourage and inspire you as you take on the giants.

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Callum Fry is Kiwi living in Melbourne, Australia. Callum is the Co-Founder of Startup Suite, a Business Plan & Financial Modelling SaaS platform, created for SMB's. Check out why 100's of business owners have already signed up to their pre-launch - www.startupsuite.io

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