Strategic Leadership at The New York Yankees Team Report

Introduction

The New York Yankees, taken as an example, are a professional baseball league team in the United States with an international reputation. The history of this team is filled with many successes, which primarily signals the advantage of sound strategic management and governance. At the moment, the team is privately owned and managed, like many similar sports organizations and management optimization has been in place since the 1970s (Karpin, 2023). The team’s strong brand and level of athletic achievement have been maintained despite periods of change in the country and the sports industry.

Ongoing investment in the coaching department, the purchase of top-notch players, innovative coaching methods and team interaction have allowed the team to remain at the top of the industry. The level of investment from team owners is reasonably high, which contributes to consistency and stability in achieving the best results (Harris & Jedlicka, 2020). However, as a criticism, it is also necessary to note the intensely commercialized management, which did not contribute to developing their own talents due to contracting with strong external players. Thus, the strategic management and leadership level of this team is at a decent level. However, there are risks to the effectiveness of talent acquisition, retention, and development and the sustainability of the team’s success in the long term.

The Importance of Strategy and Proper Management

In the sports industry, the success and profitability of each individual organization and team rely heavily on the choice of proper strategy and management effectiveness. Each team, in turn, is made up of individual coaches and athletes, each of whom must be in their proper place and perform their best. This is equally important for the team in question, especially in the context of the risks of losing talent in the pursuit of temporary contracts (Fransen et al., 2020). A more straightforward strategy that includes the development of new strong players would be helpful at the current stage of the organization’s existence.

To increase competitiveness in today’s leagues, an additional plan of action is not necessary because the organization is already in a leadership position in this format. However, all possible methods must be considered to maintain this quality and eliminate the likelihood of a drop in performance ratings. The focus on concentrating on goals and achieving them should be worked out both at the macro level within the organization’s boundaries and at the micro level among the rank-and-file players (Kang & Svensson, 2019). By analyzing strengths and weaknesses, which will be described below, all risks should also be identified in parallel to assessing potential opportunities. These risks should be considered and minimized in strategy formulation, and efforts should be made to uncover and implement opportunities.

An important factor should be identified as correct management, which is related to the more tactical level of the organisation. If it is effective, the team will always be provided with the necessary tangible and intangible resources, which include facilities, inventory, equipment, finances, training and proper motivation (Harris & Jedlicka, 2020). The latter is easiest to achieve by creating and maintaining a team culture. The level of this factor has been shaken recently, mainly impacted by the pandemic and other challenges in many industries (Byers et al., 2022). Working to encourage communication and collaboration at all levels of the organization is helping to restore this level.

Given the trends of commercialization in sports, good management involves the judicious allocation of a team’s financial resources. Even a sizable investment is, for the most part, based upon expectations of the bottom line for the investor. Managing budgets, partnering with players and organizations, and investing in development are just as crucial to the success of the New York Yankees as they are to practically any sports team (Molan, Kelly, Arnold, & Matthews, 2019). Thus, one can emphasize the need to have a sustainable management strategy tactic to maintain the status of the team and achieve new successes in their sport.

Leadership in Sport Organisation

In the context of considering leadership, we can make a conditional division into two levels – organizational leadership, which includes developmental direction and coaching skills, and personal leadership, which implies each player’s desire to achieve the best possible results. Both are very important to the team, and becoming the best in the industry is their goal (Official New York Yankees website, n.d.). Leadership is valued by team owners and front office owners, as well as by the team’s core and backup playing staff.

Team owners take an active role in the team’s development, demonstrating the importance of the success of this endeavor. Leadership at this level has contributed to members’ confidence in the future and to the specifics of making tough decisions when needed. Hiring, retaining, or firing coaches and managers does not become a problem for organizational leaders as long as it contributes to the team’s overall development (Fransen et al., 2020). In doing so, such decisions are made quickly and with the required efficiency.

Part of team-level leadership is communication, accountability, and team building. Players and coaches have a high level of interaction, and each player is additionally motivated to display leadership qualities in their activities. This increases the effectiveness of the standard training process and the performance of its participants (Kang & Svensson, 2019). Thus, there is an opportunity to highlight senior leadership skills and best behavioural strategies in the sports industry, some of which are successfully demonstrated by members of the New York Yankees organisation.

Key Senior Leader Skills

Senior leaders must be able to inspire their subordinates, which helps increase motivation. In addition, effective management of resources, including human resources, and the ability to delegate tasks are essential requirements for functioning as a leader in a sports organisation (Kang & Svensson, 2019). In the process of this interaction, problems may arise that require decisions to be made to resolve, which is also on the leader’s list of must-have skills.

The overall direction of team development is set through strategic planning and thinking. New York Yankees senior leaders successfully practice setting goals and making relevant, meaningful decisions with confidence (Karpin, 2023). Along with financial management, these skills are the prerogative of the most senior leaders and managers. The unifying element of all levels of interaction is communication, a skill that is mandatory for any leader and on which the effectiveness of a sports organisation depends as a result.

Behavioural Leader Strategies

The behavioural strategies actively used by leaders depend on their mastery of leadership skills and are very similar to those used by all successful sports teams. The organisation in question is no exception in the formation of such. Firstly, the emphasis on teamwork and cooperation should be noted, as baseball requires participants to be in total sync to win a game. Team spirit is greatly encouraged by creating a winning culture, which is driven by the team’s history of success (Karpin, 2023). Despite occasional deviations and setbacks, overall performance is well above the industry average, indicating that leaders are achieving their goals in building teamwork (Liebman, 2020). In this way, a positive work environment is also achieved, facilitating continued development.

Secondly, an important detail is focusing on accountability and communicating that message to all organisation members. Each leader and his subordinate are responsible to the entire organisation for his personal and as part of the team performance. Accordingly, the overall result depends on everyone’s investment, and an understanding of this is cultivated. Thirdly, an important strategy is for leaders to identify talent and focus on developing it. Unfortunately, buying the best players in the industry does not promote this behavioural strategy, and management should have done more to ensure the long-term potential for wins and success.

The Impact of Leadership on Organisational Culture

It is possible to underline a number of influences of New York Yankees’ senior leaders on the team’s organisational culture. Some of these factors are at a high level, and some need to be refined or rebuilt after the complications of the pandemic . In addition, these influences are heavily influenced by the strategies and leadership behaviours listed above, as they are part of a whole that shapes organisational culture (Wagstaff, 2019). It is the positive ones that strengthen and improve this culture that are taken into account, as focusing on the negative ones is unproductive – most of the adverse effects are caused precisely by inconsistencies with leadership norms. Firstly, creating a positive work environment and team spirit strengthens internal team relationships. Not only do they increase overall achievement, but they also improve team relationships and the team atmosphere. Progressing levels of trust also contribute to this perspective of organisational culture building.

Secondly, innovative coaching and training techniques foster talent development, something the New York Yankees sorely lack in their long-term strategy. Encouraging creativity in athletic pursuits in parallel with accepted norms can bring out the characteristics of players and improve organisational culture by raising the self-awareness of the organisation’s members. Thirdly, leadership should shape the overall direction of the entire team, setting its role in society and the sports industry. This fact is ensured by establishing the foundation of organisational culture in the format of defining the primary mission, values, and vision (Constandt & Willem, 2019). The leadership communicates the desired team attitude and ethical interaction requirements and explains the meaning to all participants in the organisational structure.

Finally, an emphasis on accountability increases everyone’s level of responsibility for their own performance and for contributing to overall accomplishments. This fact fosters a culture of responsibility and identification of one’s capabilities and makes the potential for growth evident. In the organisation in question, despite commercialisation, even the most valuable players are treated with the utmost dedication (Official New York Yankees website, n.d.). It fosters an organisational culture closer to the original idea of sports about the power of the individual than to the current trend of making sports a commodity.

The Importance of Governance and Leadership for the New York Yankees

The overall format of governance in the context of the sports organisation in question has an impact on a number of factors that determine its existence: success, compliance, and financial benefit. The effectiveness and correctness of the decisions necessary to achieve its goals are also part of the quality of management and should be evaluated (Ruihley & Li, 2021). Maintaining one’s own reputation, including both leadership and its activities, rank-and-file employees, and the team as a whole also depends on governance.

As a consequence of leadership management, the accountability of each member of the organisation is also ensured. The boundaries of personal and team responsibility are additionally set, guaranteeing the participation of all stakeholders in the process and ensuring the transparency of the overall activities of the sports company (Svensson & Hambrick, 2019). In addition, governance is responsible for forming a complete continuity of team effectiveness in success (Pereira et al., 2019). Moreover, it implies maintaining the level of achievement and developing it in the event of a change of ownership or leadership at any level. Thus, each new employee must have full knowledge of the developments or innovative processes in management in order to continue to perform the necessary tasks.

In other words, management is the foundation of the functioning of the organisation, which is successfully demonstrated by the owners of the team in question. Its effectiveness is underscored by taking as its foundation and conforming to all the surrounding factors in the New York Yankees business, which becomes evident through a detailed analysis of PESTEL. The direction of development and the winning strategy, implemented at the level of the team’s mission and values, contribute to the decision-making in the long and short term (Ratten, 2020). Familiarity with the environment depends on the frequency of monitoring the factors of competitiveness and compliance with the internationally defined norms and rules for the industry.

The relationship between governance and leadership is direct and becomes apparent in the process of analyzing a sports organisation. They are not only interdependent but also complement each other in the context of achieving the highest efficiency. Therefore, consistency in strategy and priority setting is equally essential (Svensson, Andersson, Mahoney, & Ha, 2020). This fact allows New York Yankees to have confidence in the correct practical application of management practices and focus on achieving goals. In addition, when leaders at all levels interact, there is an opportunity to assess each employee’s and player’s contribution and relevance to the company’s requirements.

As a more detailed example, it is necessary to look at specific instances of leaders and their effective management behaviours, widely known and popular among fans. According to the official New York Yankees (n.d.) website, it is possible to identify a few of the most significant people in the organisation’s history. For example, the team’s general manager today is Brian Cashman, and his area of responsibility is located in human resource decision-making in parallel with managing the team’s overall strategy. His ability to build successful teams and achievements in leadership is evident in his performances (Official New York Yankees website, n.d.). In addition, the team’s tendency to balance long-term and short-term goals, which has been evident since he began, cannot be overlooked.

Another example of a senior manager is Aaron Boone, currently the manager of the company. According to the information analyzed, he has excellent personal relationships with every player and excellent communication skills (Official New York Yankees website, n.d.). Based on that, he is responsible for the current positive atmosphere within the team. However, his accomplishments cannot yet surpass those of legendary manager Joe Torre. As team manager from 1996 to 2007, he contributed to the team’s best results in four World Baseball Championships (Karpin, 2023). Calmness, the ability to influence the egos of famous players, and urging their conscience and responsibility were effective leadership skills that he applied during his work.

In addition to managers, team leaders and rank-and-file players also exhibited leadership qualities. For example, Mariano Rivera demonstrated considerable stress tolerance and became known for his results over nearly twenty seasons (Karpin, 2023). The mutual respect on the team and with the coaches of his period is mainly to his credit. As another legend, Derek Jeter, team captain through 2014, could be remembered as a leader both on and off the field (Karpin, 2023). He was a model of work ethic, dedication, and professionalism for his fellow New York Yankees.

Organisational Analysis

Two complete organisational analyses will be conducted to understand the current position of the organisation further. They will help to determine most correctly the team’s current position, which it has reached through its teamwork, management strategy and leadership of all its members. It is the current state of the company that is considered in the process since its achievement was the result of the actions of all stakeholders. Through these analyses, the importance of managing a sports organisation correctly becomes evident.

A full-fledged analysis of the New York Yankees with an assessment of their strengths, weaknesses, risks and opportunities allows one to form the correct opinion about the effectiveness of company management. In addition, by identifying strengths, it becomes possible to focus on their development and on the elimination of weaknesses in comparison with competitors. Taking risks into account, countering them and capitalising on emerging opportunities enhances one team’s market and industry position.

Furthermore, the PESTEL analysis provides a way to consider all the factors that can affect an organisation. The factors considered are mainly the same for all sports organisations, including parallel industries. However, the specifics of the team in question as a significant player in an all-national sport must be taken into consideration. Thus, the most critical indicators for successful development can be identified.

Thus, from the example of past and present leaders of the organisation, the concentration of the organisation on the managerial process becomes evident. The great attention paid to each player, maintaining morale and motivation at the necessary level, is neighbouring with the personal responsibility of each for his contribution to the overall result (Geeraert, 2019). The reputation and financial success of each individual player depend not only on them but likewise on everyone else, which further unites and creates a healthy atmosphere (Lee 2019). The key issues of strategic leasing and governance must remain the focus of company management in order to achieve even more outstanding results and fine-tune efficiency.

SWOT Analysis

Strengths

1. The New York Yankees are the most successful team in Major League Baseball, which supports their reputation and contributes to their continued ranking among the leaders in the competition.
2. The presence of many baseball stars who had a career with this particular team: Joe DiMaggio, Babe Ruth, Billy Martin, Joe Torre, Mickey Mantle.
3. The PR on the rivalry with the second most successful Boston Red Sox team is staged on a professional level, and their meetings generate special additional interest and popularity.
4. A large fan base, supported by competent team management: information at the highest level, team advertising and merchandising contribute to the growth of the number of fans.
5. High franchise value and level of compliance with expectations achieved through the efforts of leaders on the team and diligent training.
6. Racial and ethnic diversity, adherence to all ethics and tolerance for players and fans (Nite & Nauright, 2020).

Weaknesses

1. Lack of internationality in development directions: the sport’s weak popularity outside the U.S. does not facilitate the team’s rapid globalisation to other continents.
2. Vulnerability of the entire team to any potential allegations by any of its members – the publicity of the members of the organisation accounts for this weakness.
3. The high cost of the franchise is also simultaneously a brand weakness: the high level of salaries and the cost of players causes rejection among players and fans of less successful teams.
4. The high commercialisation of the project, which is not conducive to discovering and retaining talent.

Opportunities

1. Increased popularity of baseball in some countries in Africa and Asia, opening up potential competitions in those regions and increasing the fan base.
2. The ease of attracting new talent due to reputation and popularity.
3. Possible creation of outside academies and junior teams overseas to expand the sphere of influence and increase competitive stability.

Threats

1. High salaries simultaneously increase the risks of maintaining them in a challenging economic period (Byers et al., 2022).
2. Poaching of top players by competitors because of commercialisation and preference for high salaries.
3. Loss of reputation in case of failure to deliver what was promised, if the press office allows itself loud statements, for example, about a particular victory.

PESTEL Analysis

Political Factors

1. Taxes and trade levies, as well as deductions from merchandise sales and price regulation.
2. A legal basis for cooperation and partnership, subject to statewide regulations.
3. Political stability and the risk of repeating the situation by limiting the number of sporting events.
4. Bureaucracy or potential corruption in all dealings with state authorities.

Economic Factors

1. Quality and cost of infrastructure in the industry of organising and participating in sporting events.
2. Cost of work and salaries for the grassroots support staff.

The current stage of the business cycle, including the global one: recession, prosperity or recovery.

Social Factors

1. Societal structure and passion for sports.
2. Levels of earnings and health in the society on which the ability to be interested in sports depends.
3. Cultural factors, including gender and ethnic relationships.

Overall demographic levels and awareness of healthy lifestyles.

Technological Factors

1. Cost of sports equipment and increasing demands for it.
2. The development and digitalisation of the news space increase the risks of hasty and erroneous statements.
3. The development of competitive digital sports, which may take away some of the fans.

Environmental Factors

1. Climate change, which includes weather instability and the difficulty of implementing open events.
2. The problem of recycling, especially related to mass events and matches with large numbers of people. Part of the responsibility for 3R lies with the organising team.
3. Promotional efforts associated with non-environmental products.

Legal Factors

1. Discrimination and human rights laws to be considered.
2. Correct hiring laws and processes related to it.
3. Copyright and data protection laws related to New York Yankees’ electronic activities: social media, advertising, and websites.

Conclusion

The level of leadership and management strategy of the New York Yankees broadly demonstrates the awareness of the necessity and importance of these processes by the owners and management of the company. It is through professionalism in management that the organisation’s achievements in player management, player motivation settings, and improved results become apparent. Nevertheless, shortcomings in the long-term strategies of this team have also been noted. These lie in the increasing tendency to commercialise all processes for profitability. However, this tendency can create risks of loss of popularity and a diminishing share of the true athletic ideals of excellence.

In addition, there should be a focus on developing talented players from the start instead of acquiring professionals. This direction will help retain talent, improve players’ attitudes toward their own team and raise the spirit of unity even higher. The development of own players fully coincides and resonates with the winning ideology that is central to the sports organisation. Thus, long-term development will be even more successful and the risk of losing players to competitors will be reduced.

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