Strategic Agility in Udinese Calcio

Achieving Diverging Objectives
Under Resource Constraints:
Strategic Agility in Udinese Calcio
ALBERTO DI MININ
SCUOLA SUPERIORE SANT’ANNA
OOHR – UNIVERSITY OF TWENTE
UNIVERSITY OF CALIFORNIA, BERKELEY
4TH CIM COMMUNITY WORKSHOP – BERLIN
JUNE, 28TH 2012
YES: this is not a joke
AN ITALIAN
IN BERLIN
TALKING ABOUT FOOTBALL
APPROXIMATELY THREE
HOURS BEFORE…
Semifinal
ITALY – GERMANY
(pictures in this slide might be outdated, apologies for
the inconvenience)
STRATEGIC AGILITY for
CREATIVITY/INNOVATION MANAGEMENT?
!  CONTINUOUSLY adjust and adapt relevant
decisions
!  CHANGING circumstances of the external
environment
!  commitment and preservation of the MOMENTUM
towards ambitious objectives
!  remaining nimble and flexible enough to quickly and
cost-effectively respond to EXOGENOUS changes
!  ..and capture NEW BUSINESS opportunities.
!  i.e.: integrating DIVERGING strategic objectives
WHY IS IT IMPORTANT TO BE AGILE?
The 21st century business world is different:
!  Competitive advantages do not last long
!  Talent is located around the world
!  Rate of market and technology change continue to
accelerate (paradigm shifts)
!  Information is increasingly available to anyone,
anytime
WHAT ABOUT FOOTBALL?
!  Every Season a different season…
!  Global sourcing of players
!  Continuous shifts in terms of training,
tactics, management
!  Innovation in sports is through imitation,
knowledge about interesting players travels fast
THE MODEL Doz and Kosonen, 2008
Fair Play: on the field and financially
!  According to FIFA: Total losses of football club in
2011: 1.6 billion EUR (+33%)
!  Total debt: 8.4 billion EUR
!  56% of first division teams are losing money
!  Dominant teams on the field: Manchester United,
Chelsea, Real Madrid, Barcellona etc etc.. Are also
the Biggest Losers.
Financial Fair Play?
Are sportive and financial results incongruent in
Europen Soccer?
We will start punishing
teams that don’t show
financial responsibility
Udinese Calcio
Results on the field
Some data…
MARKET.
SHARE
SEASON
UDINESE
TOTAL
2008/2009
4,3
213
2,0%
2009/2010
5,9
219
2,7%
TICKETS 2010/2011
4,1
227
1,8%
2008/2009
4,7
265
1,8%
2009/2010
4,9
263
1,9%
2010/2011
7,1
310
2,3%
2008/2009
30
962
3,1%
2009/2010
32
976
3,3%
TV(&(RADIO 2010/2011
30
999
3,0%

2008/2009
1,2
218
0,6%
PLAYERS
TEMP.(TRANSFER
2009/2010
1
272
0,4%
2010/2011
3,5
383
0,9%
2008/2009
0,5
19
2,6%
2009/2010
1,2
14
8,6%
2010/2011
1
30
3,3%
2008/2009
3,4
140
2,4%
2009/2010
6,1
131
4,7%
2010/2011
3,2
148
2,2%
2008/2009
44,1
1817
2,4%
2009/2010
51,1
1875
2,7%
2010/2011
48,9
2097
2,3%
SPONSORSHIP(&(
MERCHANDISING

LEGA
TRANSFERS
OTHER
(REVENUES
TOTAL
(REVENUES
Some data…
safe positioning /
Europa League
avoiding relegation to
Serie B
Teams mainly competing for
scudetto /
Champions
League
Teams
JUVENTUS
MILAN
INTER
ROMA
FIORENTINA
PALERMO
SAMPDORIA
PARMA
UDINESE
GENOA
CATANIA
CAGLIARI
BRESCIA
BOLOGNA
SIENA
LECCE
ATALANTA
Sum of Net Profit/Loss (Th. Euro)
2007)2010
2004)2006
2001)2003
)26.100
)111.302
)578.573
)3.582
)18.046
)2.644
)36.974
)15.967
1.561
)19.779
18.925
26.323
)14.060
)21.010
)18.200
)13.382
9.278
)57.955
)
)247.755
)56.846
)38.938
)26.653
)34.130
)7.307
)3.761
)26.643
)7.445
)6.351
)5.204
)20.956
)28.715
)3.747
)13.757
14.058
)
)203.773
)114.068
)3.886
)14.991
)28.028
)
)2.910
)20.044
)3.378
)3.910
)7.699
)37.137
)9.814
)26.627
5.778
UDINESE: a factory of talents
2011. Alexis Sanchez leaves Udinese for Barcelona: 26 Million EUR
The player was paid by Udinese 3 Million EUR.
Some of the major transfers during the last 15 years
PLAYER'NAME'
'
Abel'Balbo'
Alessandro'Pierini'
Fabio'Rossitto'
Francesco'Dell’Anno'
Jonathan'Bachini'
Marcio'Amoroso'
Nestor'Sensini'
Oliver'Bierhoff'
Thomas'Helveg'
Stefano'Fiore'
Giuliano'Giannichedda'
Vincenzo'Jaquinta'
Felipe'Dalbelo'
David'Pizarro'
Andrea'Dossena'
Sulley'Muntari'
Gókan'Inler'
Fabio'Quagliarella'
Cristian'Zapata'
Alexis'Sanchez'
TOTAL'
!
Seasons'
with'
Udinese'
4"
6"
8"
3"
2"
3"
4,5"
3"
4,5"
2"
6"
7"
7"
6"
2"
4"
4"
2"
6"
5"
'
Approx.'
ACQ.'Price'
(Th.'Euro)'
780"
36"
0"
0"
36"
3.615"
780."
1.290"
258"
5.000"
0"
800"
0"
3.000"
500"
800"
2.000"
7.300"
500"
3.000"
28.915'
Approx.'
SEL.'Price'
(Th.'Euro)'
7.750"
6.714"
4.132"
4.132"
7.230"
38.218"
3.615"
12.911"
7.747"
28.500"
10.300"
11.200"
10.000"
12.000"
10.000"
12.000"
16.000"
18.800"
9.000"
26.000"
256.249'
Approx.'
APPREC.'
(Th.'Euro)'
6.970"
6.678"
4.132"
4.132"
7.194"
34.603"
2.835"
11.621"
7.489"
23.500"
10.300"
10.400"
10.000"
9.000"
9.500"
11.200"
12.000"
11.500"
8.500"
23.000"
227.334'
'
Acquiring'
team'
Roma"
Fiorentina"
Napoli"
Inter"
Juventus"
Parma"
Parma"
Milan"
Milan"
Lazio"
Lazio"
Juventus"
Fiorentina"
Inter"
Liverpool"
Portsmouth"
Napoli"
Napoli"
Villareal"
Barcelona"
'
Some of the major transfers during the last 15 years
PLAYER'NAME'
'
Abel'Balbo'
Alessandro'Pierini'
Fabio'Rossitto'
Francesco'Dell’Anno'
Jonathan'Bachini'
Marcio'Amoroso'
Nestor'Sensini'
Oliver'Bierhoff'
Thomas'Helveg'
Stefano'Fiore'
Giuliano'Giannichedda'
Vincenzo'Jaquinta'
Felipe'Dalbelo'
David'Pizarro'
Andrea'Dossena'
Sulley'Muntari'
Gókan'Inler'
Fabio'Quagliarella'
Cristian'Zapata'
Alexis'Sanchez'
TOTAL'
!
Seasons'
with'
Udinese'
4"
6"
8"
3"
2"
3"
4,5"
3"
4,5"
2"
6"
7"
7"
6"
2"
4"
4"
2"
6"
5"
'
Approx.'
ACQ.'Price'
(Th.'Euro)'
780"
36"
0"
0"
36"
3.615"
780."
1.290"
258"
5.000"
0"
800"
0"
3.000"
500"
800"
2.000"
7.300"
500"
3.000"
28.915'
Approx.'
SEL.'Price'
(Th.'Euro)'
7.750"
6.714"
4.132"
4.132"
7.230"
38.218"
3.615"
12.911"
7.747"
28.500"
10.300"
11.200"
10.000"
12.000"
10.000"
12.000"
16.000"
18.800"
9.000"
26.000"
256.249'
Approx.'
APPREC.'
(Th.'Euro)'
6.970"
6.678"
4.132"
4.132"
7.194"
34.603"
2.835"
11.621"
7.489"
23.500"
10.300"
10.400"
10.000"
9.000"
9.500"
11.200"
12.000"
11.500"
8.500"
23.000"
227.334'
'
Acquiring'
team'
Roma"
Fiorentina"
Napoli"
Inter"
Juventus"
Parma"
Parma"
Milan"
Milan"
Lazio"
Lazio"
Juventus"
Fiorentina"
Inter" yearly budget
Udinese
Liverpool"
is approx 50 Mil
Portsmouth"
Napoli"
Napoli"
Villareal"
Barcelona"
'
…the results
EXTRA.&
REVENUES&
EXTRA.&
COSTS&
EXTRA.&
BALANCE&
2000/2001&
68.752'
3.891'
64.861'
2001/2002&
17.744'
1.217'
16.527'
2002/2003&
14.129'
12.114'
2.015'
2003/2004&
26.405'
16.263'
10.142'
2004/2005&
15.911'
14.520'
1.391'
2005/2006&
38.551'
24.056'
14.495'
2006/2007&
15.634'
5.002'
10.632'
2007/2008&
34.041'
10.420'
23.621'
2008/2009&
38.167'
6.778'
31.389'
2009/2010&
26.894'
5.106'
21.788'
296.228'
99.367'
196.8612'
SEASON&
TOTAL&
!
…the results
EXTRA.&
REVENUES&
EXTRA.&
COSTS&
EXTRA.&
BALANCE&
2000/2001&
68.752'
3.891'
64.861'
2001/2002&
17.744'
1.217'
16.527'
2002/2003&
14.129'
12.114'
2.015'
2003/2004&
26.405'
16.263'
10.142'
2004/2005&
15.911'
14.520'
1.391'
2005/2006&
38.551'
24.056'
14.495'
2006/2007&
15.634'
5.002'
10.632'
2007/2008&
34.041'
10.420'
23.621'
2008/2009&
38.167'
6.778'
31.389'
2009/2010&
26.894'
5.106'
21.788'
296.228'
99.367'
196.8612'
SEASON&
TOTAL&
!
Resource fluidity
!  Heavy turnover of football players
!  Resource planning (football players’ life cycle)
!  How turning promising players into talents?
!  Services
!  Organizational climate
!  Uncertain ROI: portfolio management
Strategic sensitivity
!  Scouting capabilities
!  Solid reputation (payment and contracts)
!  Scouting activities aligned with the team’s strategies
!  Tactics on the field to be constantly adapted
Leadership unity
!  Mission and values brought by (and defended by) the
Pozzo family, “the ultimate guardians of the values that
we cultivate” (Franco Soldati, President of Udinese
Calcio)
!  Strong delegation of decisional authority in the hands of
the executives
!  Legitimacy to the executive and to the technical team
!  Constant dialogue dialogue among executive and
ownership
Implications
!  Strategic Agility to balance diverging objectives
!  The relevance of the three dimensions identified
(Leadership, strategic sensibility, resource fluidity)
!  Udinese: a unique business model to manage talents
!  Football only?
!  Creative industries
!  Political Lobbying
!  NPOs
Or alternatively…