The Boston Celtics on strategy vs. opportunity
At work we often talk about opportunistic growth--when you're able to expand your company because you land a big project or a long-term contract. As a professional services firm your growth is pretty tightly bound to your opportunities; unless you have a strong sales focus it's hard to plan growth.
That was on my mind when I came across this article on the Boston Celtics and their GM Danny Ainge. The Celtics, who are making their first NBA finals appearance in 21 years tonight, are a great example of the tight interplay between planning and opportunities.
After losing an early pick in last year's NBA draft--a pick that was key to their long-term strategy--Ainge worked with his number five pick to put together a trade.
Ainge tried to trade the No. 5 pick and developing big man Al Jefferson for Garnett, but Garnett didn't want to come to a losing team and the Celtics didn't want him unless he'd agree to an extension. So Ainge sent the first-round pick — which, other than Paul Pierce, was his most valuable commodity — to Seattle in a package for Allen.
Suddenly, Garnett was interested. Ainge picked him up from the Timberwolves in an unprecedented 7-for-1 deal and the Celtics were on their way to 66 wins — the biggest turnaround in NBA history — and a return to the finals against their archrival.
If you're a basketball fan, you've probably heard this tale a hundred times.
But the backstory is essential to understanding how the Celtics ended up in the finals:
The owners are effusive in their praise for Ainge — not just for making big trades, but also for drafting the "chips" that he cashed in for the All-Stars.
Without picks such as Al Jefferson (15th overall), Gerald Green (18th), Delonte West (24th) and Ryan Gomes (20th in the second round), they wouldn't have been able to acquire Garnett.
"Look at the players he's drafted, down the line, who are going to be fixtures in the league," said Irv Grousbeck, Wyc's father and another member of the ownership group.
"Our strategy was to try to hit the longball, to win a championship, not to sign some midlevel players and get into the playoffs. We had to have the patience to build those chips up," Pagliuca said. "We recognized that time was an asset for us.
"We were younger. It would have taken a little longer, but I think we would have been a contender," Pagliuca said. "The second we got Garnett, we felt there was a legitimate possibility we could contend."
And so did other players in the league.
Once Allen and Garnett signed on, free agents came out of the woodwork hoping to join the team. Eddie House, James Posey, Scot Pollard, Sam Cassell and P.J. Brown all said they were eager to join a winner.
"I don't want to make it seem like this was our master plan. But our strategy was to build assets and remain opportunistic — be looking for what you can do and build, build, build," Irv Grousbeck said. "If you do nothing else over time, you'll build a good team.
So there you have it: The Celtics were opportunistic, and they definitely got lucky with their free agent acquisitions. But everything flowed from their basic strategy of drafting well. It's worth noting that as two-time NBA champion with the Celtics, Ainge might be better than other GMs at assessing draft picks.
The challenge for a professional services company is that you're forced to be opportunistic all the time. In that environment, strategic planned growth is a lot more difficult.
