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.
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Does school-based sports, with a 100-year-old history, have a 50 or even 15 year future in schools and society?
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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.
Going to the Mat
October 4, 2016
Somewhere I heard a speaker say: “The most exciting thing in life is to be shot at ... and missed.”
In a real sense, I wouldn’t know; but metaphorically, that’s somewhat how we’ve felt after a federal district court judge tried unsuccessfully to cripple the Michigan High School Athletic Association in the aftermath of a lawsuit over the placement of sports seasons in Michigan.
Plaintiffs wanted the high school sports seasons for boys and girls to coincide and to mirror the seasons the National Collegiate Athletic Association established after our high school seasons were adopted. With the urging of its member schools, the MHSAA battled for nine years to attempt to retain a sports seasons schedule that allowed schools to use their resources (facilities, coaches and officials) in ways that they could demonstrate promoted higher participation rates by both genders.
Plaintiffs did not get all that they sought in the case, and neither did schools; but the judge ordered the MHSAA to pay $7.9 million, much more than the organization’s assets at that time.
But rather than being the death knell for the MHSAA, these events breathed exciting new life into the organization, the positive effects of which continue today.
The judgment – reduced significantly through negotiations, early payment incentives and insurance and paid off in 18 months – set in motion a review of internal operations that reduced expenditures by $600,000 over 12 months, while sponsorship and broadcast revenue grew by a combined $600,000 during those 12 months.
Eight years later, many of the operational savings continue, and non-tournament revenue is now more than double what it was in the first year following the judgment.
While complaints still come to us from students and citizens in local communities regarding the court-ordered changes for sports seasons, and participation has declined significantly in several of the affected sports – especially girls basketball, girls volleyball and boys tennis – the MHSAA office still continues to enjoy many efficiencies, as well as some euphoria, from the shot-at-but-missed experience.
This comes from the knowledge that we went to the mat for what our schools wanted, fought long and hard, paid a high cost, and came out of it with schools’ respect. In the aftermath, the MHSAA staff and Representative Council came together, and came through it stronger.