Draft Review - About Process

Now that we've had a few days to recoup (and since we've secured a few dramatic W's), I thought it would be a good time to do a quick review of our draft. However, first I'd like to write about the distinction between process and outcome, because this distinction permeates everything we do in baseball ops, never more so than in the draft.

Geoff Young from Ducksnorts wrote a comment after the draft saying that the tough part of the draft was that we won't know the outcome for five years or so. I couldn't agree more, so what I'm going to focus on is the process.

Many years ago I was playing blackjack in Las Vegas on a Saturday night in a packed casino. I was sitting at third base, and the player who was at first base was playing horribly. He was definitely taking advantage of the free drinks, and it seemed as though every twenty minutes he was dipping into his pocket for more cash.

On one particular hand the player was dealt 17 with his first two cards. The dealer was set to deal the next set of cards and passed right over the player until he stopped her, saying: "Dealer, I want a hit!" She paused, almost feeling sorry for him, and said, "Sir, are you sure?" He said yes, and the dealer dealt the card. Sure enough, it was a four.

The place went crazy, high fives all around, everybody hootin' and hollerin', and you know what the dealer said? The dealer looked at the player, and with total sincerity, said: "Nice hit."

I thought, "Nice hit? Maybe it was a nice hit for the casino, but it was a terrible hit for the player! The decision isn't justified just because it worked."

Well, I spent the rest of that weekend wandering around the casino, largely because I had lost all of my money playing blackjack, thinking about all of these different games and how they work. The fact of the matter is that all casino games have a winning process - the odds are stacked in the favor of the house. That doesn't mean they win every single hand or every roll of the dice, but they do win more often than not. Don't misunderstand me - the casino is absolutely concerned about outcomes. However, their approach to securing a good outcome is a laser like focus on process...right down to the ruthless pit boss.

We can view baseball through the same lens. Baseball is certainly an outcome-driven business, as we get charged with a W or an L 162 times a year (or 163 times every once in a while). Furthermore, we know we cannot possibly win every single time. In fact, winning just 60% of the time is a great season, a percentage that far exceeds house odds in most games. Like a casino, it appears as though baseball is all about outcomes, but just think about all of the processes that are in play during the course of just one game or even just one at-bat.

In having this discussion years ago with Michael Mauboussin, who wrote "More Than You Know" (a great book - a link to Michael's strategy papers appears on my blogroll), he showed me a very simple matrix by Russo and Schoemaker in "Winning Decisions" that explains this concept:

We all want to be in the upper left box - deserved success resulting from a good process. This is generally where the casino lives. I'd like to think that this is where the Oakland A's and San Diego Padres have been during the regular seasons. The box in the upper right, however, is the tough reality we all face in industries that are dominated by uncertainty. A good process can lead to a bad outcome in the real world. In fact, it happens all the time. This is what happened to the casino when a player hit on 17 and won. I'd like to think this is what happened to the A's and Padres during the post-seasons. :-)

As tough as a good process/bad outcome combination is, nothing compares to the bottom left: bad process/good outcome. This is the wolf in sheep's clothing that allows for one-time success but almost always cripples any chance of sustained success - the player hitting on 17 and getting a four. Here's the rub: it's incredibly difficult to look in the mirror after a victory, any victory, and admit that you were lucky. If you fail to make that admission, however, the bad process will continue and the good outcome that occurred once will elude you in the future. Quite frankly, this is one of the things that makes Billy Beane as good as he is. He is quick to notice good luck embedded in a good outcome, and he refuses to pat himself on the back for it.

At the Padres, we want to win every game we play at every level and we want to be right on every single player decision we make. We know it's not going to happen, because there is too much uncertainty... too much we cannot control. That said, we can control the process.

Championship teams will occasionally have a bad process and a good outcome. Championship organizations, however, reside exclusively in the upper half of the matrix. Some years it may be on the right-hand side, most years should be on the left. The upper left is where the Atlanta Braves lived for 14 years - possibly the most under appreciated accomplishment by a professional sports organization in our lifetimes. In short, we want to be a Championship organization that results in many Championship teams.

I'll touch on our draft in greater detail in the next day or so, but I will say that we are proud of our process and it was carried out with discipline. Will it lead to a good outcome? We don't know for sure, but we have confidence in the group of picks that were made. I do know, however, that our process gets better every single year, and we expect it to be better again next year.