People Asset Management
The Soccer Club Paradigm Shift

Written: January 1999, in Cape Town, South Africa.

Soccer clubs often find new players by 'buying' them from other clubs. This can be in the form of a single payment or a payment to the club and a payment to the player. Sometimes the player is only hired for a season.

Looking at this we see that each club gets what it needs. The 'buying' club gets the player which it can use to train its own players or to enhance its position in its 'market'. The 'selling' club gets payment which it can use to recruit another person or use to enhance its training or marketing or whatever.

If we apply this in the business world then within the next few years we might see a trend where people are hired between companies as well as from consultancies. For example, suppose company A needs a particular skill for a presentation or for a short amount of time to fix a particular machine or solve a particular problem. It could phone company B and ask the person's superior if that person could be 'borrowed' for a week or whatever time is required. This could happen at company B's convenience. Of-course company B would be reimbursed, the person hired would be reimbursed and everyone would benefit. A negative of this is the potential for competitive advantage to be lost by company B. But this doesn't necessarily happen in the sports world, so why should it happen in business?

David's Thoughts

David Lipschitz is the owner and managing director of Orbital Decisions®, an IT and IS consultancy in Cape Town, South Africa. He holds a Computer Science degree from the University of Cape Town (South Africa), a Computer Science Honours degree from Rhodes University in Grahamstown (South Africa), an MBA from Cranfield University (UK) and a Textile Diploma from the Cape Town Technicon (South Africa).

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