Team NZ model for business world

Savour the victory. Apply the lessons. Team New Zealand's historic victory shows the big payoff of a long, gutsy campaign.

But we should never forget how hard it was - how hard it will always be - to turn a natural advantage into a world-beating performance.

As in yachting, so in business. New Zealand has economic advantages. They are mainly natural resources which we exploit well through farming, forestry, fisheries, tourism and lifestyle.

But it's tough turning them into high-value goods and services we can sell to the world. It's even harder to create knowledge-intensive businesses in new areas such as information technology in which we have no obvious advantage.

Team New Zealand is an inspirational model and a powerful economic catalyst. The successful defence of the America's Cup has helped enhance New Zealand's reputation, spur the boat-building industry, redevelop the Auckland waterfront and boost tourism. Those four waves will ripple out through the economy, creating additional activity.

Yet, Team New Zealand is a difficult model to adapt to business. Nothing in commerce is so merciless and intense as the competition and passion of sport. Business rarely comes to a Herculean do-or-die climax like the America's Cup. Rather, companies thrive long term by performing well day in, day out.

Still, Team New Zealand offers valuable lessons. The first is about perseverance. Even though New Zealanders have for generations been excellent boat builders and sailors, it still took a decade and two unsuccessful challenges to finally win the Cup in San Diego in 1995. Natural advantage was not enough.

Sadly, such long-term commitment and perseverance is rare in corporate New Zealand. So many companies in the NZSE40 index have been cobbled together from bits of bust businesses.

The second lesson is about ultra-fine margins. Black Magic was about 1 per cent faster than Luna Rossa, Chris Dickson reckons. But 1 per cent is plenty if you never make a mistake. It means winning a two-hour race by 90 seconds.

Team New Zealand achieved excellence through utter commitment, intense innovation and uncompromising attention to detail. Businesses rarely have to work so hard for so long to secure success by such a slender margin. Just as well. Far too many New Zealand businesses lurch from crisis to crisis because of their "she'll be all right-No. 8 fencing wire" mentality.

Lastly, Team New Zealand got its act together. It focused people, passion, skills and money on one goal. No other organisation here - corporate, political, sporting, what have you - comes close to performing that well. Just imagine how great the country would be if each created its own magic.