Managing for goals other than profit: Lessons from the Salvation Army and The Masters Tournament

Many organizations started because of a founder’s dream. Entrepreneurs often focus on financial dreams, but many not-for-profits or “charities” were created to support their communities or a cause they believed in. Two examples are the Salvation Army description and the Augusta National Golf Club, sponsors of the Masters. The Salvation Army movement, founded in 1865 by William Booth, has spread from London, England, to many parts of the world including a large volunteer “army” in the USA. Booth's dream was to bring freedom, hope and life to downtrodden and desperate people through first providing basic shelter and nourishment, and then a transforming message of Jesus Christ. Evangelistic and social enterprises are maintained under the authority of the General, and a limited cadre of full-time officers and employees, as well as soldiers who give service in their free time. The Salvation Army benefits from the support of many adherents and friends, especially those who serve on local advisory boards. Without these enterprises, significant charitable donations, and a dedicated army of “lay” volunteers, the Salvation Army could not help victims of economic downturns and pandemics such as COVID-19.

The goal of every organization is to strategically utilize its assets to achieve goals or use valuable resources to grow assets to create even more value. The more compelling the vision and goals of the organization, the more likely your organization can attract both human and financial resources to achieve its objectives.. 

Profits are the “go to” measurement for most businesses, but money is not the only way of measuring value or motivating people. Robert Kaplan and David Norton developed The Balanced Scorecard between 1992-1994. The model includes financial strategies and objectives, but weighs client needs (or customer needs), internal processes, and the organization’s learning and growth as equally critical to long term sustainability of any organization. Without a compelling vision and balanced scorecard approach, the Salvation Army or The Masters Tournament could not achieve its objectives.

Depending on an organization’s values and objectives, profit is not always the preeminent measuring stick for success. How will we judge the success of the next Olympic Games in Tokyo? What about 2021 NCAA Division I football season or basketball’s March Madness? How do you measure the success of a professional sports franchise such as the Golden Knights in Las Vegas or Mark Cuban’s Dallas Mavericks? What other factors than net profit might constitute success for a sports franchise?

There is no more storied tradition in professional sports than the Masters Golf Tournament. The Master’s Tournament is likely the only professional golf tournament focused on bringing honor to the sport of golf. It is not managed to make profits. The Masters is an invitation only tournament organized by the Augusta National Golf Club in Georgia. To most competitive golfers, Augusta Georgia is the setting for a perfect shrine to the ideals of high-performance golf. The course was laid as an arboretum (with each hole named for trees). It reflects Southern Pride, or Southern Manners, and country club formality. Its fixed date on the second weekend every April makes it the only major tournament on the PGA Tour that does not ever move dates.

The Masters Tournament is characterized by golf’s most honored traditions. Gentlemanly manners are required of all tournament participants and fans. An example of a Masters tradition is calling penalties on yourself. Many critics call the game of golf elitist, but the highest form of sportsmanship is practiced at Augusta National Golf Course. Some believe the game of golf to be old, stodgy, and a foe of the environment. But Masters enthusiasts live for this once a year event. Tournament organizers pay the utmost respect and honor to past champions. A special dinner is held for past winners and they can play forever if they so choose.

The only golfers who have the “right” to wear a Masters green jacket are past champions. The green jacket must be returned to the clubhouse after one year. There is a special room where only Masters champions can go in. Close control of the Masters broadcast is managed by the Augusta National Golf Leadership. The club limits the number of commercials for the tournament broadcast so the focus can be on championship gold and not commercialism. Augusta National reserves approval of any prospective advertiser. Augusta National Leadership maintains ultimate approval of the content of the advertisements. CBS may not mention other CBS programs or play promos of future shows during the Masters broadcast. CBS broadcasters for the Master’s Tournament are “trained” to never mention money or winnings during the broadcast.

Green towers and green coverings hold the cameras and broadcasters so that they can fade into the background. Club approval of CBS announcers and post broadcast grades for their performance. An example was one color commentator said the greens were “slick as snot” and he was removed from future broadcasts. CBS announcers are told to never call out sand traps. They are bunkers. Announcers do not refer to the spectators as a throng. They are “patrons” or part of the “gallery”. Rather than calling a competitor's shot that does not land on the fairway or green “in the “rough”, broadcasters are told to call the location of the ball as located in the “second cut”.

Buying tickets for the Masters Tournament is difficult and expensive (estimated to be $1400 per ticket), but the organizers could command much, much more. It is nothing like the NFL Super Bowl where a ticket costs $4-10,000 and the better the quality seat location, the higher the price. Masters tickets are not distributed to maximize profits. The actual cost to join the gallery may be $1,400, but Masters rules prohibit resale and accompanying children are usually admitted free. There are no ads or banners allowed anywhere on the course. Augusta National is a private membership club. Up until recently it was criticized for its lack of diversity. The biggest controversy fifteen years ago surrounded around the lack of female members of the club. When a boycott of Masters sponsors was proposed based on the lack of diversity and male-dominated traditions, the tournament organizers were willing to broadcast the Masters without any commercials. The broadcast was done without any sponsors or commercials in 2003 and 2004.

Not only is the Masters not managed to maximize profits, the management of the tournament and of the golf course itself (it closes all summer long) demonstrates the organizer’s commitment to the love of golf. Augusta National’s leadership is willing to leave considerable money on the table to celebrate great achievements on the golf course. In business circles, the concept of leaving money on the table is highly criticized, but the tradition of the Masters endures because their mission is all about honoring those that achieve in the face of stiff competition and adversity.

Why is the Masters so appealing to sponsors and fans? The audience demographics for this tournament skew high-end, and this audience watches very little to no other sports. It is one of the most exclusive sports events in the USA. The individuals who attend the Masters Tournament in person are among the most affluent individuals anywhere. One reason the tournament continues to be one of the most enduring sports traditions is the fact that this tournament is not managed to maximize profits, but build up the glory of championship golf. What other organizations can you describe that are focused on something other than the "bottom-line" and inspire devotion similar to the Salvation Army and The Masters?