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Innovation Obstacles

April 12, 2013

It doesn’t take long to compile a dozen or more examples of products or businesses that have disappeared, or nearly so, because the world changed while the product or business did not.

Think eight-track tapes and players.  Consider what digital photography has done, from the Eastman Kodak Company to out-of-business local studios.  What the Internet has done to travel agents.  See what’s happened and still happening to print newspapers across the country, to magazines, and to both local and large chain bookstores.

It is not at all rare that businesses fail to reinvent themselves.  For many reasons, including admirable passion for what they are doing, business leaders often miss the trends or ignore the signs that suggest the need to change their products or their entire business model.

As Geoff Colvin wrote in FORTUNE magazine Feb. 25, 2013, “Business model innovation is a competency that doesn’t exist in most companies.”  He continued:  “The largest obstacles will be weak imaginations, threatened interests, and culture.”

I suspect that those are also the three major obstacles we must overcome as we think about the future of interscholastic athletics.

  • Does school-based sports, with a 100-year-old history, have a 50 or even 15 year future in schools and society?

  • If so, should the business model change?  And if so, how?

I suspect that some of what we think is change may be no better than rotating bald tires on our car; when what we really need is new tires, or no tires at all.

Gut Check

October 18, 2016

After nearly eight years on the staff of the National Federation of State High school Associations, I accepted the challenge of leading an effort by a private business to consolidate the insurance needs of high school athletic associations and to control their coverages and costs through a self-insuring pool. My assigned goal was to assemble at least half of the 50 states in this fund. The need was so great at that time for comprehensive general liability and directors and officers insurance tailored to the unique needs of state high school athletic associations, that the group was quickly assembled and launched.

My time leading this effort was brief. In spite of the program's immediate success and continued growth, I became uncomfortable. The discomfort was born and grew in the fact that while I was out meeting with states, decisions were being made back at the home office that I was not involved with or aware of. I began to feel used ... my credibility was bringing in business, but changes were being made without my input; and I feared for my reputation. After a year of this, I resigned the position. That was 1981.

Nine years later, the companies' CEO was terminated when it was discovered that he used the construction of a company headquarters office to build himself a new house at the same time, burying his home construction costs into the books of the companies' capital expenses. Seven years after that, the companies' founder and namesake went to jail for operating from 1984 until at least 1993 what was determined to have been a Ponzi-like scheme.

I listened to my gut which, long before my head, knew something was not right. In fact, my gut seemed on alert well before things went wrong. This has happened at other crossroads and dozens of less dramatic moments in my professional and personal lives.

In this time of increasingly complex and difficult decisions, both personal and professional, the gut may be a good guide for us all.