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.
Consider Communications
June 6, 2017
Like many of my generation, I have a love-hate relationship with advances in communications technology.
I love it when, during a single day, my wife and I can have important career conversations by text with one son in China, chuckle at dog photos from another son in Texas, message with a "daughter" in South Korea, and watch videos of a "granddaughter" in California. I need it for heart-to-heart emails with my sister in Oregon. I love it for talking with and seeing many of these people in real time, face to face through Skype.
I enjoy the freedom that this technology provides me to keep in touch with both work and family when I travel, or escape to the cottage on summer weekends. It makes me far more productive than I was able to be years ago.
And that's a good thing because, with all of the convenience has come the expectation that everybody is "on call" every minute of every day.
Which is but one of the many downsides of our technological progress. Another is that people can communicate so quickly that they are prone to do so without thinking.
Another is the frequency of solicitations and the stupidity of most social media that tends to swamp my inbox. The "unsubscribe" feature cannot cope with the flood of foolishness.
I recall reading a biography of John Adams, masterfully created in large part from the letters written by his wife Abigail. It amazes me that when she wrote a letter to a person in Europe, she knew the letter would not be received for several months, and that she would not get a reply for half a year.
That was not necessarily a better time, but I imagine each word was given greater consideration as it was penned and posted.