Wednesday, April 19, 2023

Have You Become Too Reliant on Star Performers?

Source: NBA.com

Tom Taiyi Yan
 and Elad Sherf wrote a brief article this week in the Wall Street Journal describing their fascinating new research regarding team over-reliance on superstars.  They cite a terrific study of National Basketball Association players.  Here's an excerpt:

To investigate how team dynamics worked, we started by looking outside the world of business—at basketball. In our study, published in Organization Science, we examined competitive teams in the National Basketball Association across more than 60,000 games, spanning 34 years. Leveraging motion-tracking-camera data, we examined how teams’ passing patterns and shot distributions changed after wins and losses.

We found that after winning, teams became more reliant on their star players. Teams passed the ball about 6% more to the stars, and their shot distribution skewed 15% more toward the big performers. Although doubling down is intuitive (“We want to exploit what worked before"), it ended up decreasing teams’ chances of winning the next game. The increased reliance on the star players made teams more predictable to the next opponent and easier to defend—and therefore less likely to win the game.

This tendency to stick with stars doesn’t just hold true in competitive sports. All teams—particularly ones in the business world—tend to double down on what has worked. And it is often a bad idea.

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