tag:blogger.com,1999:blog-38902647.post1608196002201705353..comments2024-03-26T05:19:42.852-04:00Comments on Professor Michael Roberto's Blog: Theo Epstein and J.D. DrewMichael Robertohttp://www.blogger.com/profile/01658740999927721412noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-38902647.post-12248787325504316142009-10-24T12:32:33.173-04:002009-10-24T12:32:33.173-04:00Mike,
I was equally puzzled by Theo's comment...Mike,<br /><br />I was equally puzzled by Theo's comments. I certainly respect him as a GM and what he has accomplished for the Red Sox. He seems though to have blinders on when it comes to his decision to sign JD Drew to a long-term contract.<br /><br />While peformance and contributions to a team's success is provided in a different manner by each employee, Theo in his defense of JD (and himself) neglected to indicate in what ways JD helped the Sox this year.<br /><br />Additionally, as in business, how do other employees feel about "under performers" being recognized and perhaps at their expense?<br /><br />Thanks Mike for sharing the parallels of this sports dilemma with other businesses.Rick Smithhttps://www.blogger.com/profile/02051068190196059279noreply@blogger.comtag:blogger.com,1999:blog-38902647.post-37454343929324692512009-10-24T12:09:22.606-04:002009-10-24T12:09:22.606-04:00I didn't hear this until I saw your post--and ...I didn't hear this until I saw your post--and this is interesting from a management POV: What this underscores is the "flat-worldness" of management decisions. By this I mean that everyone now "knows" what the evaluative, or hiring, criteria--or thinks they know...and, thus, becomes [certainly in the short-term] arm-chair managers. With access to the performance information, in this case of J.D. Drew, the knowledge of the "formulas" or criteria for "success," it becomes easy for fans to reasonably think they can make intelligent judgments--maybe better put as second-guesses--as to not how good Mr. Drew is...BUT how good Mr. Epstein and team are in THEIR decision making performance! <br /><br />What this points to is the need for two things: first, Mr. Epstein--and management generally--to not permit side-walk critiques to get by with the idea that they've figured out all the criteria necessary to trigger or justify a decision. Failing that, he also ought to have been less defensive and alluded to a more long-term perspective--players are, from time to time allowed "slumps" to occur, right? <br /><br />Now if Mr. Drew ends up being in a permanent slump--that might be a more difficult conversation, or justification, to manage. But this all goes to show that the world of management truly is by this incident, certainly, getting to be a pretty flat one! In other words, the art and science of being an open, public-oriented manager has grown more challenging! <br /><br />Great post, Mike. Thanks, KeithKeith B Murrayhttps://www.blogger.com/profile/17956883051598253747noreply@blogger.comtag:blogger.com,1999:blog-38902647.post-78739592751300169462009-10-23T15:07:07.062-04:002009-10-23T15:07:07.062-04:00As always, right on point Prof. Roberto. You coul...As always, right on point Prof. Roberto. You could also add customers to your last point about employees. Customers with a "high potential" are always aluring and exciting, but "potential" comes with two caveats.<br /><br />First, the "potential" must be realized. Upside doesn't put profits on the bottom line. Particularly in negotiations, promises around "potential" shift risk 100% to the buyer. (Think of the "potential" priced into deals before the economy tanked and borrowing conditions changed!)<br /><br />Also, the "potential" needs to be realized at a reasonable cost. Tantalizing potential creates negotiating leverage, and shifts risk. In this case, J.D. Drew extracted a huge premium and shifted the risk 100% to the Red Sox! Basically, the Red Sox agreed to pay him at a rate consistent with his optimum performance potential. But consistently reaching highest expectations is difficult in any job, but particularly so in professional baseball (and particularly UNLIKELY for someone with no proven track record of acheivement). The lesson for businesses is never to underestimate the value YOU add. Price your products and negotiate your deals where BOTH risk and return are properly priced and reasonably estimated.<br /><br />Despite Drew's history of injuries, Mr. Epstein ignored this important metric. As a result, the Red Sox are paying for an entire season of performance and only getting 50%-75% of a season. So even if we buy the (questionable) logic of using a "rate" the Red Sox are still overpaying.<br /><br />Speaking of that "rate" assumption, every agent should project their client's best splits over a full season and give Mr. Epstein a call!BGhttps://www.blogger.com/profile/13067290381492283641noreply@blogger.com