Why More Businesses Need To Be Like Tony Romo
For many in America, the name Tony Romo needs little introduction, however, for those who do not follow the NFL, a few facts to share: Tony Romo is a retired NFL quarterback who played his entire career with the Dallas Cowboys. For most familiar with Romo, he is known to be a pretty good quarterback. During his tenure from 2003 to 2016 he set multiple Cowboys team records and was named to four Pro Bowls, yet he was never able to break through the divisional round of the playoffs and his list of accomplishments lacks the ultimate prize all professional football players desire…a Superbowl victory. Nonetheless, in addition to his on-the-field feats he earned somewhere north of $100 million dollars and dated Jessica Simpson. Not bad for an undrafted free agent from Eastern Illinois! An illustrious career ended in a game by one of my favorite players on my hometown team, Bobby Wagner of the Seattle Seahawks. In spite of how his career ended, however, while many would consider his accomplishments under center as a pinnacle of success, even those accomplishments would be surpassed once he retired from football and joined the world of broadcasting.
“Romo’s analysis and insight was not only compelling but downright prescient at times...”
Upon entering the CBS broadcast booth opposite Jim Nantz whose silky play-by-play delivery had been honed over many years as a professional broadcaster, Romo having none of these qualities he found almost immediate success in spite of being the neophyte. Displaying poise and confidence well beyond his booth experience, Romo’s analysis and insight was not only compelling but downright prescient at times, calling offensive plays and defensive alignments before the ball was even hiked. It was as if he had tapped into the offensive and defensive coordinator’s headsets while the plays were being called. Romo was an immediate success and the ratings for the duo began to validate what the buzz in the airwaves was indicating. Fast forward three years and upon his recent contract renewal in February of 2020, Romo re-signed with CBS for a record $180 million dollars, almost $17 million per year and the highest amount ever awarded to a broadcaster, sports or otherwise. The reaction since then has been predictable, as it set off a proverbial arms race among the competing sports broadcast networks as evidenced by ABC’s recent but unsuccessful attempts to lure Peyton Manning into the booth to counter Romo’s popularity.
“So, what does this have to do with business?”
In many ways, the evolution of the broadcast booth is a microcosm of what has been happening to business across a multitude of sectors and industries. In the early days of broadcast for the NFL, the emphasis was on the expertise of the play-by-play. Names such as Scully, Costas and Michaels among many others, all made their name in the booth through their ability to call the play as it unfolded before them in real time and deliver in a way that portrayed the dynamism, while occasionally pitching to their sidekick announcer for color commentary. The play-by-play announcer managed the flow of information, communicating what happened on the field and leaving the analysis of why “that play” to be relegated to pauses in action, time outs, or during stoppages of the clock where they needed filler chatter. This well-honed interplay between the announcers in the booth began to change with the introduction of live television and the slow but steady march of technology as information in the form of real time analytics began to proliferate into what we regularly enjoy today within mere reach of our fingertips. Smart phone apps such as ESPN’s Gamecast, Fox Sports Go, CBS Sports and many others provide us real time analytics, score updates, video clips and written commentary that a generation ago required scores of producers, statisticians, and untold booth personnel to orchestrate. Consequently, the emphasis in the booth began to shift from the focus on the play-by-play to the color commentating where the focus of the broadcast was now on the thinking and strategy from the sidelines that gave depth to the analytics we now regularly have access to. This evolution has been so pronounced that in some broadcasts, there is virtually no play-by-play. TNT’s NBA broadcast is a prime example. The featured commentary is in the studio between Ernie Johnson, Kenny Smith, Charles Barkely and Shaquille O’Neil, while courtside duties are handles by Reggie Miller and Kevin Harlan.
“Predictions...are like trying to catch a falling knife.”
But look at the numbers; five analyst commentators to one play-by-play. It says a lot about what people want as well as what has been automated with the advent of real time analytics. Predictions, a good friend once said, are like trying to catch a falling knife. However, if I were to make one here it would be that we will soon see the end of play-by-play as we know it. (For an interesting deep dive on the future of sports analytics, check out this Fast Company article on the investment LA Clipper’s owner Steve Ballmer is making in AI and sports analytics). In the emerging booth, there is a lot of commentating going on and little of it has to do with the actual play-by-play on the court.
Similarly, the evolution of business has been transitioning from an emphasis in commerce being initially placed on those who either owned or performed the transaction, to value now being derived from those who provide the expertise on how the customer can understand and leverage the expertise to aid in the transaction decision, or leveraging the product or service for their greater benefit. Not surprisingly this has led to a shift in power from the seller to the buyer. Today’s buyer is so much more prepared in the product or service with data, reviews and performance analysis than they ever have been provided before. And yet for those who have been able to develop their channel of outbound communication as a trusted source of advice and experience, the dollars have followed. For those still hanging onto solely owning the transaction, whether through disruption, disintermediation or other they have seen their value commoditized. Even for the newest generation of startups that cut their teeth through disruption and leveraging the gig economy, many are facing down the very momentum they helped start. AirBnB for example has recognized that it is not enough to own the platform with other firms such as Booking.com, VRBO, and Homeaway now providing multiple options for the property owner. Feeling the pressure to respond AirBnb is making moves to move further up the value chain, offering Experiences which are customized and curated visits to elevate the stay experience beyond the routine few nights in Astoria (and of note, at the time of this writing in the midst of the Covid-19 pandemic crisis, I checked Airbnb’s site and they are now offering virtual experiences. I found one offering a virtual coffee cupping experience with a roaster from Bogotá, Columbia which definitely appeals to my novice DIY home roasting interest).
The analogy to each of our businesses is unique as it is compelling in the questions it poses. Many of us simply won’t see it and will write it off as a non-factor. We may be right. Or then again, as Annie Duke has explained in her seminal book, Thinking in Bets, we may just be victim to our cognitive biases in our assumption. The reality is the game has changed and it is no longer good enough to just own the transaction. The smaller the business, the more pressing this scenario becomes. Time will tell when and how the behemoths will be impacted. It is worth remembering that at one time not that long-ago Google, Apple, Amazon, Facebook and many others were names that not many had heard of or were inconsequential. Obviously this is a very different situation today, however it begs the question, “who are the unknowns to today’s titans that will upend their business tomorrow?”
What Tony Romo’s command of the booth is teaching business today is the loyalty of the client dollar will follow the expertise, not the transaction. Even if our clients don’t want to see the view from the sidelines, they want to know that they can, and we can provide that to them. This is how we earn the transaction in the future. Owning the expertise and sharing it in compelling ways. The problem to solve then is how to deliver our expertise in a way that earns the transaction and distinguishes us from our competitors. That is where the game of the future will be played.
Strategize wisely, and game on!
PS – As an Advisor to owners and operators of small to medium sized businesses, I help solve big problems and assist my clients in achieving their goals. If you are, or know someone who is, a business owner needing help in some way, I would love to learn more. I can be reached here and please know that I treat all inquiries and referrals with the utmost responsiveness and professionalism. Thank you for your consideration! RPT
