The Golden State Warriors: The Gold Standard for Operations
From 2014–2019, the Golden State Warriors made it to five consecutive finals appearances, the pinnacle of success in the basketball world. They were able to win a total of three championships during that time which included two back-to-back and all against Lebron “King” James — arguably one of the greatest players to ever play the game.
How were they able to accomplish such amazing feats? The answer might surprise you: the team’s impeccable operations. Aside from the obvious superstar talent on those championship squads, they were able to exceed expectations because of majority owner Joe Lacob’s knowledge of operations.
Mindset
All of the success the Warrior’s couldn’t happen without Lacob’s killer mentality.
Believe it or not, before the success the Warrior’s were the laughing stock of the NBA. Given how Lacob turned the team into a dynasty, I’m sure he saw past that.
From what I’ve seen he has some of the most necessary skills and attitude a person in operations must have: product knowledge, industry knowledge, analytical skills, and attention to detail. To name a few examples, he probably recognized that the location of the Bay Area was huge for landing big-time free agents. Additionally, he also saw that the team had a solid young player in Stephen Curry who had real potential in the league (he became the greatest three-point shooter of all-time).
He purchased the team in 2010 for only $450 Million (yes, only because that’s inexpensive for a sports franchise). Lacob was able to see past the rough and spotted the diamond as a result. His determination to improve the organization is evident with how he would run things in the near future. You can pinpoint this with the two key elements of operations: office management and human capital management.
Office Management
Office management means day-to-day operations at a headquarters, vendor management, and more. Nobody took this more seriously than Lacob.
He knew he couldn’t build an incredible franchise alone, so he hired a perfect support cast to help him. One of those members was Jerry “The Logo” West, one of the most genius executives in NBA history.
In 2014, Jerry West began running the front office and really helped foster a championship culture. Being a former player himself, he knew when talent was the real deal. Therefore, when Lacob wanted to trade a young guy by the name of Klay Thompson, he threatened the organization that he would quit if it went through. Thompson went on to be crucial in winning those championships and he and Curry would become one of the greatest backcourts the NBA has ever seen.
West knew how to use leverage to help a team run as smoothly as possible and it paid dividends.
Human Capital Management
Essentially, Human Capital Management is staffing, recruitment, training and development of employees.
This is where Lacob thrived. He had an eye for talent and it showed. It seemed like he always knew how to find the best fit for the organization.
When Kevin Durant, one of the best players in the NBA, wanted to leave the Oklahoma City Thunder in 2016, Lacob jumped on it. By that point, he knew that his team was already unstoppable with All-Stars Stephen Curry and Klay Thompson and wanted to give the organization an extra boost.
In adding staffing Durant, the team almost had an unfair advantage against anyone else. This is where their success skyrocketed and they went on to have a stronghold on the NBA for the next three years.
In Conclusion
Present day, the Golden State Warriors are worth an estimate of $4.3 Billion dollars.
I’m not good at math, but I know for sure that’s a lot more than the initial cost of $450 Million.
Because of Lacob’s savvy operations skills, he was able to build an organization from the ground up by understanding the importance of basic principles like human capital management and office management. His mentality was ideal for the situation.
Operations doesn’t receive the spotlight because it’s the “behind the scenes”. Positions like sales and marketing are the equivalent to the superstars on the court like Curry and Durant. Those are the roles everyone talks about. But without operations, it all falls apart.
If you’re not a sports fan, that’s okay. There’s a lot more to the game of basketball than a ball going through the hoop. The Golden State Warriors set a precedent for how any business’ operations department should be run. With a problem-solving mindset, an affinity for the day-to-day, and a passion for people, you too can take your company to the next level.
