Book Analysis
Book Analysis
Summary
The book Starfish and the Spider by Brafman and Beckstrom is centered on organizational leadership (Brafman & Beckstrom, 2006). The authors compare different leadership styles used in organizations and the impacts of the same techniques. The authors specifically pay attention to centralized and decentralized forms of leadership. The starfish is thus used to depict leadership that is diverse and functional at many levels. The starfish, for example, does not die or lose function even if one leg is cut off. It regenerates assuming a regular role. Its cutting does also not affect the remaining limbs, which continue to function as usual. The spider, on the other hand, loses function when its head is cut off. The former analogy is used to signify decentralized leadership, which encourages functionality at various levels. The latter analogy is used to signify a centralized leadership style that fosters functionality from a focal point of command (Brafman & Beckstrom, 2006, p37). It, therefore, means that when the focal point of power is threatened or weakened, the organization faces challenges.
Themes
Centralization and Decentralization
Centralization involves a leadership system that has a central point of command. In an organization, setting management is from a top-down kind of structure. It means that instructions come from an authoritative figure and are then disseminated to other individuals according to the level of job description/responsibility. A central point of command means that instructions are clear and are rarely refuted. In case of suggestions, the same hierarchy has to be used from bottom up to communicate any issue. It is important to note that there is not a particular type of leadership that works in all organizations. Different organizations use different leadership styles, which can be successful for the specific organization. A centralized approach was equally used by MGM, which sued a company that promoted a decentralized system. The centralized system of operation meant that MGM controlled content such as movies.
Decentralization means that a focal point of instructions does not exist. The figure of authority in such a situation does not give instructions but oversees the activities of the organization. Instructions come from varying individuals in the organization. As such, everybody at the organization takes on a leadership role. The goal of the organization is spelled out, and the employees are expected to achieve it. Achieving the laid out goal does not, however, involve the use of a specified set of rules. Every employee seeks out the best approach to attain the goal. In this regard, the result, as opposed to the process, becomes the point of focus. The Alcoholics anonymous is one such example. It is important to note that a decentralization approach not only takes place at an organizational level but at an individual level as well. Sharp, for example, sought to use a decentralized approach in his anti-slavery efforts. A decentralized approach meant that a formal leadership structure was missing. Sharp used a minority group approach that was not only unconventional but also had a decentralized principle of living (Brafman & Beckstrom, 2006, p86).
Challenges Faced by MGM
Intellectual Property Rights
Whereas both centralized and decentralized systems have been in use for a long time, a centralized system has been deemed more organized. Organizations, in this case, have embraced an outlined central system of command. However, with the inception of the internet, for example, centralization has and continues to face challenges. It is on this ground that MGM and other big players sued an internet-based company. The company used the internet to share music files, which resulted in anyone with internet access having access to preferred music. The MGM system required an individual to buy music physically through CD, for example. The internet system, on the other hand, required one to access music digitally through downloads. It is in this regard that MGM sued the internet based company for intellectual property rights.
Grokster, the internet-based company, in this regard, was acquiring music illegally as it had no rights. It, therefore, meant that any person downloading the music was doing so illegally as well. The available downloads were not only illegal but cost the major music and film companies considerable amounts in losses. Free access to movies and music meant that people no longer bought films and music. It also meant that movie ticket sales declined as there was free access online. Peer to peer services such as the one used by Grokster had acquired over 8 million users in 2005 (Brafman & Beckstrom, 2006, p816). The vast numbers meant that internet companies were a real challenge for big companies for contending with. It is in an attempt to cub the decentralized entertainment culture that fines of up to 4,000 dollars were slapped on (Brafman & Beckstrom, 2006, p18) users. The use of the internet was, however, not going to go away, and as such, internet companies have, over the years, made deals with such companies to make music and movies available at a fee through subscription. In this regard, the decentralized system was unbeatable in the long term.
Ways MGM Challenges are faced by Sports Organizations
Competition
Competition is unavoidable in any organization. The sports arena is not any different as competition is rife between sports organizations. Profitability is the bottom line of profitable organizations. As such, organizations have to compete for the available resources. Sports organizations are not any different. Different organizations, such as basketball, baseball, and football leagues, have profits as the ultimate goal (Wharton University, 2015). Sports organizations, for example, have to fight for more significant market share, funding, advertising, players, and player signups. MGM was fighting for market dominance through intellectual property rights. MGM and other companies such as Disney and Sony realized profitability through exclusive rights.
Internet companies such as Grokster, on the other hand, sought inclusivity through online content sharing. The inclusivity would translate to an influx in the market, thereby reducing market share for the giant companies. In the sports industry, the competition also exists between the big clubs and small clubs. As more small clubs enter the sports industry, the market share of the big clubs dwindles. A dwindled market share translates to reduced profits. Players in sports clubs work under contracts. Contract breach by both the clubs and players leads to litigations, which cost the organization money. Breach, in this case, can happen when players get signed up into other clubs without fulfilling the existing contract with the former club. Just like MGM sought to sue the internet company for stealing content, sports clubs sue other sports clubs for ‘stealing’ players.
Internet companies were making music and movie content available for download on the internet without legal rights. In the same way, companies also make sports merchandise available without legal rights. Sports merchandise requires exclusive rights, as well. Sports organizations do include not only sports clubs but also companies that focus on sports apparel. This merchandise is counterfeited and sold at a cheaper price costing the sports organization huge amounts of money. Such scenarios lead to sports organizations suing counterfeiting companies as well as online selling companies that sell the merchandise. The same scenario led to MGM suing the small internet company for distributing content without legal rights.
Conclusion
Teamwork is essential in leadership (Ohio University, n.d.). Teamwork in the sports industry includes athletes, customers, and organizations. Teamwork was showcased in the MGM case. Other prominent organizations such as Sony, Disney, Columbia, Virgin Records, BMG, and Warner Brothers, to name a few, joined MGM in the legal process against Grokster. MGM won the case, which was not only a win for MGM but other companies in the industry as well. Teamwork is a quality that is used by sports organizations in the same way. Sports organizations, for example, team up to push for specific agendas. Sports organizations, for example, can team up to sue a counterfeiting company. The win would not only be for the sports company in question but other sports companies as well. Teamwork can also be sought to push for sports-related agendas such as anti-doping campaigns.
Inclusivity in the decision-making process is essential. Big companies are likely to win cases against smaller companies. Several factors occasion such outcomes such as legal representation, publicity, and finances. Inclusivity in the decision-making process, on the other hand, is primarily impacted by the leadership style used. Organizations with a centralized system are less likely to have inclusivity. As such, decisions are authoritatively made. Organizations with a decentralized system are more likely to have inclusivity decisions in this regard are made based on the majority opinion.
The authors use examples of both centralized and decentralized systems in modern-day analogies as well as historical analogies. The Osama Bin Laden example (Brafman & Beckstrom, 2006, p12) epitomizes modern-day decentralization while the Apache example is historical. The book is easy to understand and is equally captivating because of the style used. As such, it focuses on leadership from an unconventional approach. I would, therefore, give it a five-star rating in this regard. It is recommended for readers interested in understanding leadership style in organizations and its impact.
References
Brafman, O., & Beckstrom, R. (2006). The starfish and the spider. Portfolio.
Ohio University. Effective Leadership of Sports Programs | Ohio University. Ohio University.
Retrieved 20 April 2020, from https://onlinemasters.ohio.edu/blog/effective-leadership-of-sports-programs/.
Wharton University. (2015). The Leadership Challenges Facing the Sports Industry.
Knowledge@Wharton. Retrieved 20 April 2020, from https://knowledge.wharton.upenn.edu/article/leadership-challenges-facing-the-sports-industry/.