Leading: Learning from Life and My Years at Manchester United
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Many leaders allow habit, affection, happily shared experiences or sentiment to cloud their judgement. It is easy to fall into a comfortable routine and assume that the people who contributed yesterday will continue to make contributions tomorrow. It is easier to be tolerant or to compromise than to confront ugly situations, deliver painful news or demand changes. Partly because of his nature and partly because it is very difficult to hide shortcomings on a football field (compared to the way mediocre bumblers can survive in large companies for decades), Sir Alex never blanched at putting the team before the man, or the future before past accomplishments. Some saw this as a ruthless display of cold-blooded behaviour, particularly fans ruing the exile of one of their favourites. Sir Alex, rightly, saw it as a necessity. One of the challenges for young founders is to understand that, if their company is ever going to be hugely successful, it will–almost certainly–outstrip the capabilities of the people they first hire to manage sales, or marketing or engineering.
Leaders usually spend far too much time worrying about their competitors. That’s especially true in football, where the owners in particular are prone to coveting a competitor’s success. I do not mean to imply that Sir Alex paid no attention to his competitors, because he spent as much time as any manager making sure he was staying in touch with their line-ups and tactics and was perfectly willing to borrow ploys that made sense. However, he refused to allow Manchester United to be defined by its competitors, and always felt that the destiny of his club was shaped by what went on inside Old Trafford rather than elsewhere. Hence, his phlegmatic reaction to the arrival of the oligarchs, Middle Eastern princes and other well-heeled foreign owners. For Sir Alex, money never bought success, although the occasional big-ticket signing could bring a frisson to proceedings.
Precisely the same phenomenon occurs in Silicon Valley. While it is foolish to ignore developments elsewhere, no organisation ever achieved greatness by perpetually reacting to its competitors. You cannot lead by following. The businesses that are consigned to eternal mediocrity are those led by people who do not know what they want. By contrast, the few companies destined for greatness tend to be led by people with an idea of what they want, even if, at the outset, this might be outshone by far greater clarity about what they do not like. That was certainly the case for Larry Page and Sergey Brin at the outset of Google. Neither of them cared a whit for the search services provided by Yahoo!, Excite, Lycos, Infoseek or AltaVista, so they sought to produce something superior. The same was true for Apple’s senior design team, when they set about trying to imagine an mp3 player they could tolerate (the iPod) or a mobile phone they would like (the iPhone).
Silicon Valley winners emerge by concentrating on what they control and by making sure that, for as long as possible, they stay off the radar screen of foes that have the firepower to blow them to smithereens. Stealth is one of a start-up’s most potent weapons. It does not pay to arouse either the ire or the scrutiny of the beast–especially when those beasts are quasi monopolists capable of mounting withering attacks. Any number of companies–such as Novell, Lotus Development, AOL, Adobe, Barland, Netscape and Symantec–discovered the perils of arousing the attention of Microsoft at the height of its powers. A big part of the reason that Google became successful was the way its management maintained a low profile until it was too late for Microsoft–by then also hamstrung by government enquiries–to react and torpedo the business.
When a business or a service firm changes leader, the consequences are usually messy. The sad truth is that, irrespective of the field, there are few examples of companies pulling off smooth management successions. The best examples are organisations that just do it less poorly than others. In settings like large oil companies, airline and hotel businesses or the big consumer brands, the change at the top is invisible for several years because the product catalogue, existing clients or long-held investments don’t change overnight. That’s less true in the world of technology, where it is so rare for companies to successfully adapt themselves to changing circumstances and brand-new market opportunities. It is even less the case in football, where the effect of a leadership change on team performance–especially a negative one–is laid bare fairly quickly.
Just as employees and shareholders in Silicon Valley companies speculate about the implications of a change in helmsmen, so too did the fans of United when Sir Alex announced his retirement. The British newspapers accorded the changing of the guard at Old Trafford, and the arrival of David Moyes from Everton, with the coverage that usually accompanies the arrival of a new government, a signal event for a member of the royal family, or a state funeral. Yet the United team that took to the field at the start of the 2013–14 season was almost identical to the one that had played, 89 days earlier, for Sir Alex in the last game of his management career.
United’s followers might console themselves with the knowledge that leadership changes in Silicon Valley are rarely flawless. Yahoo! for example, which had two CEOs during its first 12 years, riffled through a further six in the subsequent eight years. Something similar has occurred at Hewlett-Packard, which was run by its founders from 1939 to 1978, but which in the last 16 years has run through seven CEOs. As I write, the board of Twitter has found itself with the unenviable task of finding a fourth CEO and considering a sale, even though the company is not yet ten years old. About the only Silicon Valley company I can think of that grew from strength to strength as it swapped CEOs was Intel during its first 30 years. There was a special reason for this. The company’s first three CEOs, the third of whom was the utterly remarkable Andy Grove (the person I most admire in Silicon Valley), also happened to be the threesome who showed up for work on the day Intel was formed in 1968. Intel’s founding spirit did not get diluted by bureaucrats, chief financial officers, activist shareholders, meddlesome directors or, most importantly, people at the helm who did not have the keenest appreciation for the company’s products and a deeply ingrained sense of ownership.
There’s one final character trait that all great leaders share–from Intel’s first three CEOs to Sir Alex Ferguson himself. It’s an attribute that few leaders will readily observe in themselves and few management books will single out. In fact, this impulse is often easier for outsiders to spot and, in the case of Sir Alex, was something I gradually gleaned from our conversations and the outings that provide the backbone for this book. Great leaders are competing–not with others–but with the idea of perfection itself. It does not matter how many sales records they have broken, how many competitors they have extinguished, or how many breathtaking products they have introduced–a greater, more perfect version of their success always beckons. For them greatness is just never good enough. In retirement, Sir Alex, who is not prone to melancholy, is wise enough to relish the triumphs of his life and derive satisfaction from his accomplishments rather than allow himself to dwell on whatever trophies eluded his grasp. For the most successful leader in the history of professional sports, the 38 trophies he added to Manchester United’s collection–including those that accompanied the Treble-winning year of 1999–were milestones on a journey whose ultimate, and maddeningly elusive, destination was the seductive and tantalising notion of perfection itself.
Michael Moritz
San Francisco
September 2015
ACKNOWLEDGEMENTS
It always takes a team, and the one fielded for this book featured Nick Davies, managing director of John Murray Press, whose shrewd eye and keen judgement sharpened the manuscript, as well as Roddy Bloomfield and Kate Miles. Other members of Hodder & Stoughton–Jamie Hodder-Williams, Lucy Hale, Karen Geary and Vickie Boff–were always available at a moment’s notice. Alasdair Oliver designed the cover and Amanda Jones managed production. In the United States, Mauro diPreta, the publisher of Hachette Books, and Michelle Aielli helped make sure we received good care in a country where footballs are not round.
From his perch in Aberdeen, Colin Dalgarno provided steadfast and rel
iable research. In London, Jack Hagley turned numbers into pictures, and is the person responsible for the graphical illustrations in the book, while Sean Pollock shot the cover photograph.
Our literary, legal, financial and publicity squad consisted of Chris Parris-Lamb and David Gernert at The Gernert Company; Sue Knight and the team at Grant Thornton and Les Dalgarno, Ken Gordon and the team at Burness Paull in the United Kingdom and Andrew Kovacs, Sandi Mendleson, David Kass, Karen Valladao, Pete Laboskey and Joe McNulty in the United States.
Mark Damazer, Walter Isaacson, Michael Lewis, Michael Lynton, Jane Sarkin, Doug Stumpf and Judith Thurman provided advice and guidance as we gradually turned an idea into a book. Lyn Laffin and Zoe Diompy in Manchester and Tanya Schillage in California made sure that we always appeared on time. Harriet Heyman helped with the epilogue.
Jason Ferguson in Manchester and Martin O’Connor in New York prompted and nudged us at every turn. They both deserve to have their names in very large fonts on the cover. The man, without whom this would not have happened, is the irrepressible and lovable Charlie Stillitano.
PICTURE ACKNOWLEDGEMENTS
Introduction, Sir Alex Ferguson at Harvard Business School © Anita Elberse; Chapter 1, Scotland manager Jock Stein (right) with his assistant Alex Ferguson (left) in 1985 © EMPICS Sport/PAI; Chapter 2, Manchester United youth team player David Beckham, February 1992 © Mirrorpix; Chapter 3, Sir Alex Ferguson (right) and assistant manager Carlos Queiroz (left) at Carrington training ground, 25 July 2006 © Matthew Peters/Manchester United via Getty Images; Chapter 4, Steve Bruce and Bryan Robson after Manchester United beat Blackburn to win the FA Premier League in 1993 © David Cannon/ALLSPORT/Getty Images; Chapter 5, Alex Ferguson talks to Eric Cantona during Manchester City vs. Manchester United in 1996 © Mark Leech/Getty Images; Chapter 6, Sporting Lisbon’s player Cristiano Ronaldo (right) fights for the ball during a friendly match, August 2003 © Andre Kosters/AFP/Getty Images; Chapter 7, Sir Alex Ferguson during a Champions League match against Real Madrid, 2013 © Back Page Images/Rex Shutterstock; Chapter 8, Sir Alex Ferguson at a press conference in Manchester, 2009 © John Peters/Manchester United via Getty Images; Chapter 9, Aberdeen chairman (centre) Dick Donald with Alex Ferguson (right), pre-season friendly Aberdeen vs. Arsenal, 1980 © SNS Group/Alamy; Chapter 10, Sir Alex Ferguson and David Gill © Ian Hodgson/ANL/Rex Shutterstock © PA Archive/PAI; Chapter 11, Sir Alex Ferguson in the dressing room © Sean Pollock; Chapter 12, Arsenal manager Arsène Wenger and Sir Alex Ferguson during a Premiership match between Arsenal and Manchester United, 2005 © Ben Radford/Getty Images; Chapter 13, Former Manchester United manager, Sir Alex Ferguson waves to the crowd from the directors’ box at Old Trafford, October 2013 © epa european pressphoto agency b.v./Alamy; Epilogue, Sir Alex Ferguson being interviewed by Sir Michael Moritz © author collection.
The Data Room, Sir Alex Ferguson lifting the Premier League trophy at Old Trafford, 2013 ©Alex Livesey/Getty Images
The Archive, Sir Alex Ferguson at his desk in Carrington © Sean Pollock
Every reasonable effort has been made to trace copyright holders, but if there are any errors or omissions, Hodder & Stoughton will be pleased to insert the appropriate acknowledgement in any subsequent printings or editions.
THE DATA ROOM
THE ARCHIVE
A letter acknowledging one of Manchester United’s true greats.
A letter from Ian McLeod, Celtic’s Chief Executive, following a visit to Carrington training ground, 2002.
The official bonus structure for the Manchester United squad, late 1980s.
A letter from Kenny Dalglish in the wake of the Hillsborough disaster.
Discussion document from a board meeting about squad composition, 2004.
A message to the fans from the official match-day programme, United Review, 10 May 2009, Manchester United vs. Manchester City.
A fan responds to Sir Alex Ferguson’s retirement.
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CONTENTS
COVER
TITLE PAGE
WELCOME
DEDICATION
INTRODUCTION
1. BECOMING YOURSELF
Listening
Watching
Reading
2. RECOGNISING HUNGER
Discipline
Work Rate
Drive
Conviction
3. ASSEMBLING THE PIECES
Organisation
Preparation
Pipeline
4. ENGAGING OTHERS
Teamwork
Captains
5. SETTING STANDARDS
Excellence
Inspiring
Complacency
6. MEASURING PEOPLE
Job Hunting
Networking
Firing
7. FOCUS
Time
Distractions
Failing
Criticism
8. OWNING THE MESSAGE
Speaking
Writing
Answering
9. LEADING NOT MANAGING
Owners
Control
Delegation
Decision-making
10. THE BOTTOM LINE
Buying
Frugality
Compensation
Negotiation
Brokers
11. BUSINESS DEVELOPMENT
Innovation
Data Overload
Confidentiality
12. THE RELEVANCE OF OTHERS
Rivalries
Global Markets
13. TRANSITIONS
Arriving
Leaving
Fresh Challenges
EPILOGUE
ACKNOWLEDGEMENTS
PICTURE ACKNOWLEDGEMENTS
THE DATA ROOM
THE ARCHIVE
NEWSLETTERS
COPYRIGHT
Copyright
Copyright © 2015 by Sir Alex Ferguson and Sir Michael Moritz
Epilogue copyright © 2015 by Sir Michael Moritz
Archive material copyright details: Letter to Eric Cantona from Alex Ferguson © Sir Alex Ferguson and Manchester United Football Club PLC 1997; Letter from Ian McLeod to Alex Ferguson © Ian McLeod and Celtic Football Club 2002; Manchester United bonus structure document © Manchester United Football Club PLC; Letter from Kenny Dalglish to Alex Ferguson © Kenny Dalglish and Liverpool Football Club 1989; Manchester United board meeting document © Manchester United Football Club PLC; Extract from the United Review © United Review 2009; Letter from Ian Settle to Alex Ferguson © Ian Settle 2013.
All rights reserved. In accordance with the U.S. Copyright Act of 1976, the scanning, uploading, and electronic sharing of any part of this book without the permission of the publisher constitute unlawful piracy and theft of the author’s intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained by contacting the publisher at permissions@hbgusa.com. Thank you for your support of the author’s rights.
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First ebook edition: October 2015
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