Risk Taking
February 14, 2012
The June 22, 2009 cover story of Business Week which I just reread was titled “The Risk Takers.” It featured businesses which during difficult times, instead of playing it safe, placed bets on some gutsy new strategies.
To make a point, the author used an illustration that we can relate to here in Michigan. I paraphrase:
Imagine a driver on a snowy night. If the car starts to slip, the driver’s natural instinct is to slam on the brakes and jerk the steering wheel in the opposite direction. But the laws of physics advise the opposite: laying off the brakes and steering into the turn.
The author reports that from 1985 to 2000, the average merger in an economic downturn created an 8.5 percent rise in shareholder value after two years; while the average deal in good times resulted in a 6.2 percent drop in the buyer’s share value. In other words, mergers – one of the biggest, boldest moves in business – do better in bad times than good. Much better, in fact.
It wasn’t recklessness this article was celebrating; it was risk taking – daring to be aggressive, rather than just defensive, amid a weak economy. Steering into the turn, so to speak.
Just like the winter driving analogy in the article, we who are involved in school sports in Michigan can relate to the big idea of the article because we too made some of our biggest moves at our bleakest times. The MHSAA retrenched in some ways, but the greater theme as we climbed out of our bad times of 2008 was that we made unprecedented investments in new technology.
Today MHSAA.com is the website of highest traffic and MHSAA.tv is the website with the most productions of any comparable organization in the U.S. And all of these investments in technology during those bad times have allowed us to undertake the ArbiterGame project now that will provide all member high schools the electronic tools necessary to make their tough tasks of school administration more streamlined than ever before.
Prime the Pump
July 24, 2017
Even the awkward or aggravating moments in life – perhaps especially those moments – have the redeeming value of offering metaphors for these messages. Times like this ...
Country dwellers and cottage owners know that the pump which brings water to their residences is a precious apparatus. When it works, it’s taken for granted; when it fails to work, it ruins almost everything planned.
So it’s prudent for those who don’t live on a community water line to know how to prime their own water pump; and some of us have had to learn the hard way to keep jugs of water on hand to prime the pump. As my local well expert told me, “You can’t prime the pump with water that’s already run down creek.”
That’s wisdom on many levels. It reminds us to have emergency plans. But more than that, it suggests we should take advantage of opportunities as they arise, not try to do so after they’ve passed by. It suggests boldness ... a degree of aggressiveness.
In our current situation, it suggests that we assess what is trending, but not take forever to do so; and seize the day in order to shape the future.
This is when I think, for example, of conducting regional junior high/middle school meets and tournaments across Michigan and 7-on-7 football leagues in the summer. When I think of mandating MHSAA camps for officials during their first three to five years of registration. When I think of adding a co-ed Ryder Cup format to the MHSAA Golf Tournament and a co-ed team tennis format to the MHSAA Tennis Tournament. When I think of adding flag football for girls, volleyball for boys and both water polo and weightlifting for both genders. This is when I want to take a chance with the exploding e-sports world, and the emotional tug of Special Olympics unified sports.
I have zero motivation for increasing the number of contests or the distance of travel for high school athletics, but I get very excited when I think of expanding the number of students who might get engaged if we would prime the pump before the water runs away from us.