The IPL auction 2018 will take place on this weekend, January 27 and 28. A total of 578 players will go under the hammer in Bengaluru this year and they would be hoping for a change in their fortunes. Fans have been glued to their TV sets over the last decade, watching the IPL auction eagerly to know which players are picked by their favourite teams. Even though the main tournament will start on April 7, the event began with the IPL retention earlier this month. “The VIVO IPL 2018 will be a 6-month-long fiesta with new-age technology putting fans at the heart of the experience,” said Sanjay Gupta, Managing Director, Star India, and indeed it will.
Apart from the excitement and thrill, the IPL auction 2018 also provides an opportunity to the fans and management students to learn a thing or two from it. It isn’t just about spending the money and buying the player. Here are 5 managements lessons that you can learn from IPL auction 2018.
1. Hold on to best employee at all cost
Buyback is a very common phenomon in share market. Even Warren Buffet who isn’t a huge fan of this idea spoke in favour of America’s big corporations that are said to have bought back shares worth $2.1 trillion between 2010 and 2015. IPL retention is just like buyback where you get an opportunity to keep a player that you invested in, years ago. For example, Mumbai Indians had bought Hardik Pandya for just Rs 10 lakh in 2015 but retained the Indian all-rounder for Rs 11 crore this year. Despite this, Mumbai Indians is the real winner in this deal. At 24, Hardik Pandya is at the peak of his game and will serve the team well over the next three years.
The idea is to hold on to the best employees to achieve greater heights. This is something that Royal Challengers Bangalore did this year too with Virat Kohli. Even though the IPL Governing Council had said that Rs 15 crore will be deducted from the purse for a retained player, RCB willingly paid the Indian skipper Rs 17 crore, making him the most expensive player in the tournament’s history.
2. Keep evolving
“When you’re finished changing, you’re finished,” a quote by Ben Franklin that is still fresh in our memories. To keep winning, you need to keep evolving. You might be the best team in IPL this year but to make sure that you remain there, you have to keep buying new players and try different combinations. Mumbai Indians is the perfect example in this case. Ambati Rayudu and Lasith Malinga have been two of their best performers in IPL but last year, both these players were used in a limited manner.
Instead, the management identified youngsters like Nitish Rana and Mitchell McCleanaghan who were in top form and evolved their roles in the playing XI. Another improtant aspect is that you need to be open to experiments. Yes, stability is good but flexibility helps you survive for longer.
3. Be patient and aim for the best
Here is a mistake that both the team managers and IPL team owners make very frequently. Just like signing the right player is the key in IPL auction, hiring the right candidate is the first step to success for a company. And, for this, the team managers need to keep in mind that the first candidate might not be the most suitable one for you.
In IPL auction, the team owners often watch their competitors fight aggressively for a player but keep money in their wallet so that they can bid when their desired player comes to the auction. This is a strategy that needs to be followed by team managers too.
4. Spend your budget smartly
Instead of cribbing about the tight budget, make sure that you spend it smartly. Who else can teach you this better than the Rajasthan Royals. Year after year, we have seen the franchise spend cautiously on unknown players yet it is able to get the job done very well. Not only have Rajasthan Royals been able to put together strong units but even won the inaugural IPL season.
RCB gave another example of spending money smartly by retaining young Sarfaraz Khan in this year’s IPL retention instead of stars like KL Rahul, Yuzvendra Chahal or Kedar Jadhav. For any of these players, the franchise had to spend Rs 7 crore from its wallet but since Sarfaraz is an uncapped player, the team had to spend just Rs 3 crore.
“Sarfaraz is one of the players we believe will rise to great heights, not just in the IPL but in world cricket. We believe that together, Virat, AB de Villers and Sarfaraz embody the ‘play bold and fearless’ outlook that is inherent in RCB, and we are excited to retain them for IPL 2018,” said Amrit Thomas, Chief Marketing Officer – Diageo India /Chairman of Royal Challengers Bangalore.
5. Every department is equally important
Goes without saying. Here RCB can be used as a negative example. The Virat Kohli-led team has had one of the best batting line-ups in the tournament and yet, has failed to win IPL even once. Reason? The failure to put together a good bowling attack.
On the other hand, Mumbai Indians managed to buy some good fast-bowlers combined them with world-class spinners and added a few great all-rounders to add balance to the team. Result? Three IPL trophies in last 5 years.
Similary, for a company to grow, you need to make sure that all the department are given equally importance.