Three Cheers for Business Innovation

Jeff Webb, President of the International Cheer Union and founder of Varsity Spirit, has made a strong mark on the world of cheerleading. But his impact goes far beyond the sport itself. Webb’s journey is a masterclass in how to transform a niche product into a global phenomenon, generating a $2.5 billion enterprise and creating an entire industry from scratch. Business leaders looking for lessons in innovation, strategic growth, and leadership can learn a lot from Webb’s experience. Here’s how his strategies can be applied across industries.

Seizing Opportunities for Reinvention 

When Jeff Webb first began developing cheerleading as a competitive sport, it was never about replacing traditional sideline cheering at football or basketball games. Instead, his vision was to expand its boundaries and reimagine what cheerleading could be. By integrating acrobatics, dance, and music, he created a dynamic new format that captivated both participants and spectators.

One key challenge Webb faced was overcoming functional fixedness, a cognitive bias where people are limited in their perception of how an object or concept can be used. Many viewed cheerleading solely as a support activity for other sports, and it took strategic vision to reposition it as a stand-alone competitive sport. This bias is prevalent in many businesses, where leaders struggle to see how existing products or services can be reimagined for new purposes. By questioning the traditional definition of cheerleading, Webb was able to see potential where others did not.

Another risk Webb confronted was status quo bias. This bias leads people to prefer things to stay the same and to resist change, even when new opportunities present themselves. Overcoming this bias required not just vision but a willingness to experiment and take risks. When Webb first launched cheerleading competitions, starting with just 20 teams, it was an untested concept that could have failed. By taking that initial step, he demonstrated how leaders can push past the inertia that holds many businesses back from innovation.

Vision Is Only the Beginning: Execution Drives Growth 

According to Webb, vision is sometimes an overvalued concept. While it’s critical to have a clear vision, even more important is the ability to execute relentlessly. At Varsity Spirit, the daily mantra was to maintain a high level of quality and continually improve. Webb didn’t rely on multi-year strategic plans; instead, he focused on being agile and staying ahead of trends by constantly evaluating performance and adjusting the company’s course.

This approach also helped Webb navigate the optimism bias, which causes leaders to overestimate positive outcomes and underestimate potential challenges. By emphasizing high-quality execution and avoiding the pitfalls of overly optimistic long-term plans, Webb kept the business grounded in day-to-day realities. For business leaders, this means recognizing that while it’s important to have a broad vision, true success comes from focusing on details and maintaining momentum through consistent, disciplined efforts.

Leveraging Fear as a Motivator 

Fear is often seen as a barrier to success, but Webb views it as a tool for motivation and discipline. When he started Varsity Spirit, his biggest challenge was the fear of failure—wondering if the company was ready, whether it was the right path, and if they could afford the risks. Instead of allowing fear to paralyze decision-making, Webb used it to assess risks carefully, ensuring that he took measured steps toward growth.

This approach helped Webb avoid the pitfalls of loss aversion, a cognitive bias that makes individuals prefer avoiding losses to acquiring equivalent gains. For many entrepreneurs, the fear of losing can prevent them from pursuing promising opportunities. Webb’s strategy was to balance the fear of loss with a disciplined approach to risk, recognizing when fear indicated a real danger versus when it was just a barrier to progress. Leaders can take a similar approach by using fear as a guide to gauge when they might be overextending, rather than letting it stifle innovation.

Horizontal Expansion: A Deliberate Growth Strategy 

One of the cornerstones of Varsity Spirit’s success has been its strategic horizontal expansion. Webb took what was initially a cheerleading camp business and expanded into adjacent markets, such as uniforms, competitions, and event venues. This type of growth requires a deep understanding of how new activities align with the core business. At each step, Webb measured the desire to move into new markets against the strengths and resources the company already possessed.

Horizontal integration can often fail when leaders fall into the halo effect, a cognitive bias where success in one area leads to the assumption that similar success will follow in an unrelated area. For Varsity Spirit, every horizontal acquisition or expansion was closely tied to its core competencies. This disciplined approach prevented the company from assuming that its brand strength in camps would automatically translate to success in other markets without proper alignment and strategic planning.

Managing Rapid Growth: Building a Culture That Can Handle Success 

Rapid growth is often seen as the ultimate sign of success, but it can quickly become overwhelming. Webb acknowledges that Varsity Spirit experienced periods of unexpected and explosive growth. To manage this, he built a company culture that embraced hard work, resilience, and teamwork. Because Varsity Spirit was a seasonal business, it wasn’t practical to hire a year-round staff to meet the peak demands of each season. Instead, they relied on a flexible workforce and a shared commitment to excellence.

During periods of rapid growth, anchoring bias can become a significant challenge. This bias occurs when initial information heavily influences decisions, making it difficult to adapt as new data becomes available. Webb mitigated this risk by emphasizing a dynamic and responsive culture, ensuring that the team was ready to scale up operations quickly based on the latest market trends and customer needs. Leaders facing similar challenges should focus on building a culture that values adaptability and resilience, rather than being anchored to outdated assumptions about staffing and resources.

Creating Value Beyond Expectations 

From the beginning, Varsity Spirit’s objective was not merely to meet customer expectations—it was to exceed them. This philosophy, born out of necessity in the company’s early days, became a guiding principle as the business expanded. The goal was always to offer a better experience than the previous year, ensuring that returning customers felt they were getting something new, bigger, and better.

This commitment to excellence required constant reinvention, a strategy that counters confirmation bias. This bias leads leaders to focus only on evidence that supports their preconceived notions, rather than seeking out data that challenges their assumptions. By prioritizing customer feedback and being open to change, Webb avoided falling into the trap of assuming that what worked last year would work again this year. Business leaders can learn from this approach by continually questioning their own assumptions and looking for ways to push the envelope in delivering value.

Balancing Short-Term Needs with Long-Term Vision 

When Webb forged partnerships with media giants like ESPN and Disney, he was looking beyond immediate gains. While the day-to-day focus was on providing a high-quality experience, his long-term vision was to elevate cheerleading into a globally recognized sport. This dual focus—managing the present while keeping an eye on the future—allowed Varsity Spirit to balance short-term execution with strategic growth.

This approach is crucial in avoiding the empathy gap, a bias that makes it difficult to accurately predict how future emotions or market conditions will influence decisions. By keeping one eye on short-term goals and another on long-term strategies, Webb was able to adjust his vision and respond to new opportunities as they arose. Leaders should strive for a similar balance, ensuring that short-term actions contribute meaningfully to broader strategic objectives.

Building a Global Brand: Adaptability in New Markets 

Expanding the sport internationally came with unique challenges. Webb learned that successful global expansion requires a deep understanding of local markets and the ability to adapt core business principles to fit new environments. Different countries have varying approaches to youth sports, funding, and culture. Rather than imposing a one-size-fits-all model, Webb adapted his approach based on each country’s unique characteristics.

The lesson for leaders is that even the best business principles need to be flexible when applied in new contexts. Expanding into global markets requires not only strategic vision but also cultural sensitivity and a willingness to build new structures where they do not exist.

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