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We bet an approach to management, that identifies key business drivers and creates business plans that link-mathematically map out how these key drivers can be

blockquote – affected by variables, probably wasn’t your first guess.

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The concept of driver-based planning was brilliantly highlighted in Michael Lewis’ novel, Moneyball, and the subsequent cinematic adaptation starring Brad Pitt, Jonah Hill, and the late Philip Seymour Hoffman.

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• The movie illustrates how Billy Beane—played by Pitt—
• transforms the Oakland Athletics Major League Baseball team
• from zero to a team that consistently made the playoffs, they do this by using driver-based decision making.
• It’s a typical Hollywood trope, but the story is also true.

The team used statistical analysis, something that was unprecedented in the world of Major League Baseball, to identify the team’s key drivers for success. Through a detailed analysis, the team uncovered the true underlying drivers of success for a baseball team, revealing the massive inefficiency in how baseball talent was priced and exploiting this inefficiency to their advantage.

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Whether you’re running a baseball team or any other type of business, there’s a good chance driver-based planning is a good fit for you. While driver-based planning might not be a very sexy concept, it’s an incredibly useful and powerful model that every CEO should have in their wheelhouse.