Giants general manager Brian Sabean and owner Peter Magowan agree that San Francisco might have to endure a couple more years of losing to turn around the franchise.
Sabean will get the chance to lead the team's transformation.
Sabean received a two-year contract extension Friday only five months after Magowan called out every employee as being on the "hot seat."
"By making the decision now, it puts Brian in a much better position to do what he feels he needs to do and making trades," Magowan said. "We can get a running start on the '08 season by making these moves now."
Sabean, who's in his 11th season as the Giants' GM, could stick around through 2010 if San Francisco exercises its club option.
Barry Bonds and the Giants haven't made the playoffs since 2003 and started the second half Friday night at 38-48 and 10½ games behind San Diego in the NL West.
The organization is committed to developing its young talent, meaning the Giants will listen to offers for veteran players before the July 31 trade deadline.
Manager Bruce Bochy has already said he expects to give some of his veterans more time off after the All-Star break.
"Bruce has all the latitude in the world. His responsibility is the same as ours," Sabean said.
Sabean and the Giants began contract talks earlier than either side expected. Magowan said they've talking for months about what changes must be made, and he asked Sabean for a comprehensive plan.
"It's a plan that I can get enthusiastic about," Magowan said.
Magowan said he is "fully confident" Sabean and Bochy will get the club back on track.