Australian Open: Pro or Amateur?

The Australian Open began this week in Melbourne, the first grand slam of the tennis year. The tournament was first held in 1905 and has grown to become one of the more significant annual sporting events in the Southern Hemisphere. But according to engineer and statistician Simon Ramo, it could really be divided into two separate sports: The professionals and everyone else.

Here is the difference for Ramo. The professional wins points, whereas the amateur loses points. When players of equal skill compete, the points flow perfectly until one player hits a perfect shot slightly out of reach. When amateurs play, tennis balls often are struck into the net and double faults are as common as faults. The novice makes mistakes that the professional never makes, often more than once.

The winners at center court in Rod Laver Stadium for both the men and woman’s events will be there because of their incredible skill levels as well as their ability to avoid mistakes. Unforced errors are everything.

What happens to many of us is that we never understand that most competitive sports or businesses are not about who excels the most but instead about who screws up the least. Teams and companies that avoid losing often win more than organizations that claim they are holding nothing back, playing to win. Charlie Munger, the vice-chair of Warren Buffett’s Berkshire Hathaway, once said: “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

We must understand our limitations. We must avoid unforced errors at all costs.

When Berkshire Hathaway did not initially get involved in the dotcom business, many said they missed the boat. But after it crashed, those same critics then said Berkshire Hathaway looked smart. They were willing to forfeit short-term growth for not making costly, long-term mistakes.

We all want to grow while finding new revenue streams, new plays, and new ideas. Yet, often we move from being professionals to being amateurs by making avoidable, unforced errors. Remember, professionals win points, amateurs lose them.

When you watch the Australian Open this week, do two things. First, send support to all those fighting the fires and pray for all affected. And secondly, acknowledge whether you’re a pro or an amateur.

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