Company types: “Family” vs “Baseball team”

We all worked for different companies. They may vary in size and product domains. However, I would like to compare companies from a particular angle. Of course, it is over abstractions, however, I would like to separate two extremes: “family” company and “baseball team” company.

Family company

I am not talking about the real family business, or at least not only. It is a subjective perception of management style. Family companies are characterized by a sense of kinship, loyalty, and long-term relationships. These organizations prioritize employee well-being, collaboration, and a familial atmosphere.

Baseball team company

Baseball-like companies are akin to sports teams, where competition, performance, and teamwork are paramount. In these organizations, employees are driven by goals, targets, and the pursuit of victory.

Aspects to compare

Here, I would like to elaborate on the different aspects of those two company types.

Loyalty

Family company: Loyalty is paramount. Employees are expected to stay committed for the long haul, mirroring family loyalty.

Baseball team company: Loyalty is earned through performance and alignment with team goals. The importance of results and achievement overweight loyalty.

Healthiness, work-life balance

Family company: In most cases, work-life balance is a priority. The well-being of the employee is put on the pedestal. However, quite often, this is distributed unequally among employees, as a company still needs to function, and work needs to be done.

Baseball team company: Work-life balance is often neglected, as peak performance is valued most. Company culture and atmosphere value great results, which sometimes might be archived at the expense of employee work-life balance.

Innovation

Family company: Innovation is often overlooked. It is a risk for current stability and well-being.

Baseball team company: Innovation and experimentation are encouraged. Embraces disruptive innovation and encourages risk-taking. That might give the company a competitive advantage.

Trust

Family company: Trust and loyalty play a significant role, as relationships are akin to family bonds.

Baseball team company: Trust is gained through an ongoing decent level of performance. No performance — no trust.

Performance Metrics

Family company: Often, family companies do not have a strong emphasis on building clear and exact individual performance metrics. Instead, the focus is on overall company success, or rather, the focus is on atmosphere, people connections and people’s well-being.

Baseball team company: Each team member has a specific role and metrics for their success. Then those are connected to company success. Strong emphasis on personal OKR. Mistakes are acknowledged, but consistent underperformance is addressed promptly.

Productivity

Family company: Tolerance for mistakes is higher as long as they don’t jeopardize the company’s reputation. Underperformers usually receive additional support and chances for improvement, sometimes for too long and at the expense of others.

Baseball team company: High productivity is a priority, with clear goals and accountability. Performance matters, and underperformers may face consequences.

Employee feedback

Family company: Feedback is not clear and straightforward. Usually, it is vague and blurred, if it exists at all. The process and standards of providing feedback are premature. Company prefer to keep existing connections between people rather than provide honest and straight feedback (it might affect the current relationship).

Baseball team company: Personal achievements and goal setting are at a high level; the same is valid for feedback. It is straight, constructive and to the point. The company is not afraid to provide feedback, whether it is positive or negative.

Decision making

Family company: Decisions involve consensus-building, considering both business and emotional aspects. Decision and responsibility are not always connected clearly.

Baseball team company: Quick decisions are made based on data and performance indicators. Most of time decision making tree is hierarccal and clear. Responsibility is tightly bound to decision-making.

Atmosphere

Family company: The work environment feels familiar and nurturing. Employees may have a strong sense of belonging and loyalty.

Baseball team company: The atmosphere is competitive, energetic, and results-focused. Collaboration occurs during game-changing moments.

Conclusion

Obviously, it is up to you what you want from work. I tried to be objective and not include you on one side. And of course, it is oversimplification and abstraction. Usually, companies try to balance between extremes to get the best out of the two.