How the Chicago Cubs fixed a 'bad business culture'

Author Rich Cohen says that when the Chicago Cubs finally won the World Series last year for the first time since 1908, “It wasn’t just huge for baseball, it was huge for the world, and humanity, really.”

That’s a stretch, of course, but Cohen’s new book, “Chicago Cubs: Story of a Curse” makes a convincing case for why the Cubs are at least bigger than just baseball. Cohen turns the years of failure, coincidence, and bad luck into a business cautionary tale.

Theo Epstein and ‘gut renovation’

“The curse, to me, was like a bad business culture,” Cohen says. “And we look at the team, but the team is really just a product of the business. If the culture is bad, the product is bad. So basically what [general manager] Theo Epstein did with [owner and chairman Tom] Ricketts was fix the culture. The result is a much better product.”

The Ricketts bought the Cubs in 2009 — the family fortune comes from TD Ameritrade, which Joe Ricketts founded — and hired Epstein in 2011. In his book, Cohen recounts that when Epstein met with Tom Ricketts before taking the job as Cubs GM, he asked, “Was he willing to let the team get really bad? As bad as it’s ever been? Was he ready for the pressure that would come from the fans and reporters when we got rid of their favorite players and lost a hundred games? Because that’s how bad we’d have to get to get good.” Ricketts consented — it worked, but it took until 2016 to get a championship team. (Cohen also weighed in on a popular debate at Yahoo Finance: Who is the face of baseball in 2017? Surprise: Cohen thinks it’s Javier Baez.)

Epstein’s staffing philosophy was: Clean house in order to set up for long-term success. Accept and embrace short-term failures in order to build. In baseball, it meant cutting expensive contracts, even of beloved players that were supposedly stars, to recruit young talent and utility players.

Epstein, in the book, chalks the Cubs’ years of failure to focusing on the near-term: “They always wanted to make sure next year’s team looked like it had a chance to win because the team was going to be up for sale at any moment… If it’s 1988, it means making sure the 1989 team looks like it has a chance… It means lack of long-term planning, focus on the short term, focus on optics.” Epstein zoomed out, looking down the road, prioritizing the development of minor league prospects.

It was a form of what the author Michael Lewis would call “Moneyball.” (Epstein tells Cohen that Lewis’s book “completely” changed the way he approached the GM job in Chicago.)

Cohen likens the Epstein process to “a gut renovation.”