The Horse Race Approach to Management
A horse race is a contest of speed and stamina between two or more horses. The sport has a long history, dating back to the Greek Olympic Games of 700 to 800 bc. It has evolved into a complex business, featuring large fields of runners and sophisticated electronic monitoring equipment. Nevertheless, its essential feature remains: The first horse across the finish line is the winner.
As the industry faces a mounting backlash over its treatment of the horses it breeds, races and sells, it has been reluctant to take steps that would significantly improve animal welfare. Unlike other sports, which have evolved to meet the needs of fans and the public, racing continues to operate as a business model that puts profits before animal well-being. The industry’s refusal to change this paradigm has left horses vulnerable to the exorbitant physical stress of racing and training. Horses are routinely injured and die in the course of racing, breeding and transportation.
The equine industry has reacted to criticism by attempting to silence critics. For example, the National Thoroughbred Racing Association has banned a group called The Paulick Report for writing that the industry prioritizes profits over the welfare of racehorses. The group, which consists of more than 40 people, aims to expose what it describes as the industry’s “egregious violations of the law and basic human decency.”
Despite the best efforts of the industry to suppress critical voices, the issue of horse cruelty continues to gain prominence in popular culture. The death of the iconic racehorse Eight Belles and that of another racehorse, Medina Spirit, a few years later, sparked a public outcry over the welfare of horses in racing. Many of the same issues have persisted since.
Many directors are intensely afraid that a prolonged succession horse race will damage their company’s business momentum. They strive mightily to limit the length of the contest. Yet, some companies have found that an overt competition for the CEO role is not always a bad thing.
The horse race approach to management is particularly common in organizations that are highly hierarchical, have a culture that embraces competition and the notion of meritocracy, and have an executive development process that emphasizes leadership and team building skills. In these environments, a CEO horse race can be beneficial by helping the company to select and develop its next generation of leaders.
When betting on a horse race, it is important to pay attention to the condition of a horse’s coat in its walking ring before the start of the race. A horse’s bright, rippling coat is an indication that it is ready to run. On the other hand, a dull or faded coat may mean that it is not ready to compete and will most likely lose. Bettors also pay close attention to a horse’s movement at the starting gate to see whether it balks, which is a sign that it is frightened or angry. If it does, the bettors will be likely to abandon their horses and take their money elsewhere.
