Quarterback Your Practice

January 1, 2010

By Thomas E. Burdette, CPA

Several years ago, I was asked to give a presentation on practice management. Drawing on a varied involvement in football — from nine years as a player starting with youth clubs and then through college, coaching at youth club and high school, and then finally a stint as an NFL agent — I was able to draw some effective parallels between the best business management practices and building a winning football team. Many of the principles are the same and are a little more easily understood when you think of them in a different context.

The most recent regular season has ended and most of the teams in the NFL are trying to improve their chances of playing in the big game next year. This is very similar to what we all do as business people. We are always trying to improve our position and performance in our respective industries.

The management team

Examining the way an NFL team operates can provide insight on how we should be operating our practices. The operation is divided into five basic sections, beginning with the assemblage of a coaching staff. Putting together your management team is one of the most important things you do as the head of an organization. These people set the trends and traits for the rest of your team members. These team members work closely together, so the three major questions you need to ask are:

What skills and traits do they need?
Leadership skills and traits are most important when putting together your coaching staff (management team). The players (staff) will follow and listen to a person whom they respect and have confidence in.

How do you reward and compensate your managers and coaches?
Opportunities for growth are the best way to reward and compensate your management. They can always get more money, but you have to provide them better opportunities.

How do you protect yourself from recruiters and agents from other teams?
It is very simple — make it hard for a person to leave. It is difficult for someone to leave an environment where they are comfortable, happy and appreciated. It is easy to leave when you are uncomfortable, unhappy and not appreciated.

A winning team

Now that you have your management team put together, you have to compile a winning team of players. You should ask yourself:

How do you recruit the players (employees) you need, draft or free agent?
Recruiting players is difficult for all teams. The goal should be to establish a team culture in which players want to be a part. Players want to be with a winning team, not a losing one.

How do you handle the salary cap? (How much do you pay?)
The compensation package has to be comparable to your market. The issue that could affect the level of compensation would be your needs at that time. You will get the talent level you are willing to pay for.

A fan base

You are fully staffed and you are ready to play. How do you attract the fans (clients)? Getting a solid fan base is now your primary concern. This raises the following questions:

How do you develop fan loyalty?
You have to be better than your competition, not necessarily in knowledge, but in service. As I said earlier, make it hard to leave the team fan base.

Are you selling season tickets or game-day tickets? (Short-term vs. long-term relationships)
All teams want season-ticket holders (long-term relationships). It is easier for the management team to project their needs when there are long-term fans.

Do you have cheerleaders (promoters) in your ranks?
Every team in the NFL has cheerleaders. It has become an aspect of the game that most fans enjoy. One thing is consistent: They are all smiling! The client likes to deal with pleasant and positive attitudes.

How do your fans hear about your team? (Advertising and promotion)
Most people will follow a team because they have friends and associates who have a previous interest in the team. References are the best source of new fans because a current fan will not recommend a new fan who is not worthy.

What is your pricing? (Market)
Your market will dictate your ticket (fee) prices. You do not want to be too high nor too low, but you also need to value your product. If you provide a better experience at the game than your competition, you should charge more for your tickets.

How do you handle unruly fans? Pepper spray or cologne?
If an unruly fan can’t be converted to a valued fan, you should sell his seat to someone else. It is unfair to your players and other fans to have an unruly person in their midst. They will respect you for the decision. Remember: Make sure you end the relationship on a positive note, if possible.

A solid game plan

Now you are moving along. You have coaches, players and fans. The game plan on the field is your next concern.

How does your game plan utilize your players’ talents? (Putting the right people in the right positions)
You have to evaluate your talent and put them in the right positions. Defensive tackles don’t make good wide receivers.

Do you have a good balance of rookies and veterans? (New ideas mixed with experience)
The blend of rookies and veterans is important for the future of any team. The veterans will be the first to leave, and they will have to be replaced by newer people.

Who calls the plays? (Structure)
There has to be structure on your team. Everyone needs to know the other peoples’ responsibilities and authority.

Do you have good scouting reports? (Do you know your market?)
You need to know your market. You don’t want to develop a niche that doesn’t exist in your market.

How flexible is your plan?
You need to change as your players develop and your fans’ needs change. If you don’t, someone else will.

How effective is your training program?
The winning team is normally the best prepared team. If you want to be a winner, you need to act like a winner.

Are you getting five-yard penalties, or are you getting thrown out of the game? (Mistakes)
We all make mistakes; our goal is to limit them to five yards. Quality control is most important.

When do you throw the red flag and use instant replay? (Litigation and related costs)
You have professional liability insurance for a reason. If you think you have an issue, call your provider immediately. No reason to delay.

The front office

You are on a roll! We have everything in place except for how you want to run the front office. A plan for administrative and office concerns would necessitate these questions:

How do you relate to the other teams? (Competing practices)
You need to know your competition. How can you be better if you don’t know what you are being compared to?

How do you manage your stadium costs? (Overhead)
Managing costs should be done by an administrator who knows the industry.

How do your fans pay for their tickets? (Billings and collections)
There are numerous ways to be paid. Some teams have retainers up front, which has become a popular practice. Most fans don’t have a problem pre-paying a portion of their ticket price.

Are you selling enough jerseys, popcorn, beer and hotdogs? (Cross-selling)
If there are services you are capable of providing to your fans but are not, some other team may be preparing to provide them.

When do you expand and build the “practice facility?” (Growth)
What comes first, the player or the fan? Most teams will add a quality player to their team, which in turn will increase the fan base. Putting together the team is most important.

Set yourself up for a win

Retaining players and fans should be the most important thing to any team. The culture of your team is most important, because players will want to join a winning team and fans will want to be associated with a winning team.

The final two questions you need to ask yourself are: Would I want to be a player for, and a fan of, my team? If the answer is “yes” to both, you are on your way. If the answer is “no” to either, reread this article.

Thomas E. Burdette, CPA, is the founding principal of The Burdette Smith Group, PC. He specializes in all tax and planning aspects for closely held businesses and their owners. As a former college athlete and NFL agent, Tom knows the value of teamwork and uses a team approach within his firm while encouraging his clients to do the same. Contact him at burdette@bsgpc.com.