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.
News Unfiltered
July 12, 2017
During the first summer after my college graduation, I was the campaign advance man outside of the Milwaukee and Madison areas for a candidate for the U.S. Senate from Wisconsin. A great job.
Sometime during that summer, I met the head of the campaign in a café. He was reading a newspaper as I arrived; and as I sat down at the table, I asked him what he was reading. I’ll always remember his response. He said, “I’m looking for what could go wrong today?”
It was the campaign manager’s job to think about worst-case scenarios and consider how the campaign might get taken off message by the news of the day.
I was young and impressionable, and I soon began to consume the daily news through the same filter.
It was not difficult to do so in the 1970s. The daily newspaper was printed and delivered to my door every day. Television had just three networks, and each provided brief news reports two or three times a day.
Today, what passes as news comes from hundreds or thousands or millions of sources and it is changing constantly, 24/7/365. Only a small portion of those sources is professionally operated with accountability for the substance and/or style of the so-called reporting.
Today it drives me nuts to consume news – that is, to really think about what I’m reading or hearing the way I did in the 1970s. Today, meaningful matters often get buried in trivia while the most inane and inaccurate stories and comments can go viral overnight.
I’ve always said you can get too much of a good thing – too much food; too much free time; and certainly, too much sports. And clearly, we have too much “news” about sports.