Friday 7 September 2012

Why the NHL Cannot be Considered a Mature, Functional and Sustainable Business in 2012


As the clock ticks down to the inevitable September 15th lockout of National Hockey League (NHL) players, it becomes increasingly clear to that the NHL cannot, and should not, be considered a world-class business...

I understand that many of you will make the argument that the NHL, just like all professional sports leagues, operates in a fashion similar to any class-act business - it has substantial numbers of employees operating internationally, it benefits from significant revenue generation (and a hefty profit), it sells a quality and desirable product, it is international in scope, it has sizable marketing / human resources / sales departments, it has a board of directors, and it has entered into partnerships and agreements with some of the largest persona and companies in the world. All of these criteria would most certainly lead one to believe that the NHL is, in fact, an influential and striving business.

Well, I would argue otherwise... No world class business would operate themselves in a way that allows for:

- a voluntary and lengthy shutdown of operations, and a potential jeopardization of multi-million dollar tv deals, and other corporate partnerships with some of the world's largest organizations;
- the lock out of employees not once, not twice, but three times over a period spanning less than 20 years;
- the demonstration of negligence resulting from a lack-of development and implementation of contingency plans required to continue operations during labour-shortage situations;
- an expectation that clientele will come crawling back to the product despite a highly disruptive and exceptionally toxic service disruption;
- a bitter and ongoing public relations battle with employees in which not only employees, but the business appear to be selfish, self-absorbed, and oblivious to the needs and wants of clientele.

Yes, it is true that some businesses do get lucky and do sell a product or service so desirable that even the most jaded client will return following a monumental crises (BP comes to mind). However, as many corporations have learned throughout history, there are many more organizations waiting in the wings for any opportunitity to seize revenue and client-base from these negligent organizations. Similarly, with each any every service or product disruption, the patience of clientele wanes and the desire to stray elsewhere increases.

Until the NHL begins to respect the desire of its clientele, whose only want is access to a continuous and dependent product on the ice, it cannot be considered mature, functional or sustainable. I would suggest that an investment in a functional risk management department could go a long way in moving the NHL in the correct direction. Not only would such a department determine that the risks associated with any lengthy lockout far outweigh the benefits, they would ensure that, should the business go the lockout route, they are as prepared as possible to continue operations in some capacity  (if not suggest the utilization of a crisis communications team to protect the image of the organization, which as of late, appears to be in tatters). Heck, even employees are developing and preparing for implementation of their personal contingency plans (playing overseas).

Until investments in risk management and contingency planning are made, the NHL will continue to operate under the assumption that their clientele-base is infinite and forgiving. Unfortunately, I fear that the patience of this client-base is waning and the desire to seek the product elsewhere is growing ever stronger.

What do you think?

Thank you for reading,
The Continuity Blogger

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