Limitations of Rules

November 15, 2013

Those who make rules ought to have knowledge of the limitations of rules, lest they overreach and over-regulate.

Dov Seidman writes in how:  Why HOW We Do Anything Means Everything:  “Rules fail because you cannot write a rule to contain every possible behavior in the vast spectrum of human conduct. There will always be gray areas, and therefore, given the right circumstances, opportunities, or outside pressures, some people might be motivated to circumvent them. When they do, our typical response is just to make more rules. Rules, then, become part of the problem.”

The NCAA is under constant criticism for its voluminous rule book which seems to pry into myriad of daily activities of athletes, coaches, boosters and others with so many rules it’s impossible for people to know them all. So university athletic departments must hire compliance officers to guide people – effectively absolving the people in the trenches from knowing the rules and committing to their adherence; and the NCAA office must hire investigations to sort through all the allegations of wrongdoing.

While much trimmer than the NCAA Manual, the MHSAA Handbook is much larger today than its original versions. Still, every year in December when the MHSAA staff conducts a series of meetings that kicks off a six-month process of reviewing theHandbook, there is a concerted effort to “make the rules better without making the rule book larger.”

We know that unless the rules address a specific problem and are written with clarity and enforced with certainty, rules do more harm than they do good. “This,” according to Seidman, “creates a downward spiral of rulemaking which causes lasting detriment to the trust we need to sustain society. With each successive failure of rules, our faith in the very ability of rules to govern human conduct decreases. Rules, the principal arm of the way we govern ourselves, lose their power, destroying our trust in both those who make them and the institutions they govern.”

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.