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.
Show of Hands
July 12, 2017
Four dozen years ago, my boss, the executive director of the National Federation of State High School Associations, expressed to me his disappointment that one of the characteristics of NFHS national meetings was the much too frequent “show of hands.” That is, someone from one state would rise to ask for a show of hands on a topic: “How many states do this? ... How many states don’t? ... How many do that?”
My mentor’s point was that the time would be much better spent on a qualitative analysis of the topic, rather than a quantitative one ... a discussion of the merits of a particular policy or procedure, rather than a head count.
His message to me is recalled every time a proposal comes to the Michigan High School Athletic Association to change this or that policy and is accompanied by the meager rationale that it’s what 25 or 35 or 45 other states might do. That stat holds only mild interest for me.
Before we do anything here to be like anybody elsewhere, we need to measure the pros and cons in our place and time ... how it fits our culture or our climate, for example.
When we consider change in the start or end of seasons; or the number of interscholastic scrimmages or contests in a day, week or season; or the number of exceptions to the transfer rule or the length of ineligibility when no exception applies; or the number of classes or divisions for tournaments; or the existence or extent of seeding for a tournament; when we consider any of these things in Michigan, we need much better rationale than a show of hands.