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Situational Leadership: Commissioner Adam Silver Impact On The Nba

1380 words - 6 pages

The employees are multimillionaires. The supervisors are multimillionaires and billionaires. The customer base is close to a half billion persons. Do you want to be the Chief Executive Officer (CEO) in such an organization? The working environment is a diversified, multicultural, multiethnic, racially charged atmosphere (Price & Wolfers, 2010, p. 1859). The organization under my microscope is the National Basketball Association (NBA). Price and Wolfers (2010, p. 1885) found that the NBA have achieved high levels of racial equality across key working relationships. Adam Silver is the current Commissioner of the NBA whose responsibilities include maintaining racial harmony among NBA’s ...view middle of the document...

NBA’s Diagnosis
NBA is the brand name for the world’s premier basketball league. The league consists of 30 teams. Franchise operators own and manage each team. The following sections outline an analysis of the health of the NBA using the balanced scorecard approach (Kaplan & Norton, 1996, p. 54).
Financial
The NBA has market valuation of $19 billion, debt to equity ratio of 3.7%, annual revenues of $4.6 billion, and annual operating profit of $0.7 billion (The Business of Basketball, n.d.). The business model that generated these impressive financial figures was based on a competitor alliance network (Lentze, 1995, p. 66). However, finance is only one component in a business and the importance of customer support must not be under-estimated.
Customer
NBA customers comprises their fan base and purchasers of NBA branded products and services. NBA fan base is a 435 million strong sporting support army (Globalizing the NBA, n.d.). Nothwithstanding, the NBA has experienced consistent customer growth since their inception and this trend is expected to continue into the foreseeable future (Yoffie, 2014, p. 70).
Internal Processes
NBA has invested heavily in data analysis systems: these systems are an integral part of coaching, player management, and front office administration (NBA embraces advanced analytics, n.d.). NBA has a very strict social media policy prohibiting the use of electronic communication devices by coaches, players and team management during games (Friedman, 2012, p. 89-90). In an interview with the leaders magazine in October, 2013 then Commissioner, David Stern described the NBA as a learning organization (Globalizing the NBA, n.d.).
Learning and Growth
Since NBA deployed the High-Performance Analytic Appliance (HANA) system, over 20 million fans have accessed the statistics (McDermott, 2013). Commissioner Silver’s background as an attorney and his expertise in developing new products and markets would have prepared him for the daunting legal challenges faces the NBA (Yoffie, 2014, p. 61). Nevertheless, the NBA’S strong financial position provides a cushion for navigating the uncharted future under the leadership of Commissioner Silver.
Situational Leadership and NBA Health
Key stakeholders in the NBA, in comparing Silver with his mentor, David Stern, have praised Adam Silver; he has been described as having better listening skills, the ability to create stronger networks, and display a greater concern for the welfare of the players (Cohn, 2014). The demanding requirements of managing the NBA – disciplining players, coaches, referees and team owners; pacifying sponsors and fans; and maintaining a global brand image – need a person who can shift seamlessly between the personalities of introverts and extroverts, and effectively communicate the organiztion’s vision and strategy to diverse stakeholders. Adam Silver fits this leadership type referred to as an ambivert. Grant (2013, p. 1028) found that ambiverts outperform...

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