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.
Leadership Impressions - #3 (Embracing Interruptions)
June 15, 2018
I was once told that “the job is the interruptions” – to look at an interruption not as something that detracts from my work but rather is the work. But there are two types of interruptions that have gotten my special attention over the years.
One type happens often, perhaps twice a week when averaged over the course of a year. It happens when the assistant directors of the Michigan High School Athletic Association are asked a novel Handbook question, one of first impression in their experience, and there is a difference of opinion among their colleagues as to the correct answer.
I expect to be involved in answering such questions; and sometimes I determine that the question needs MHSAA Executive Committee attention – for ultimately under the MHSAA Constitution, it is the Executive Committee’s responsibility to interpret what is not clear in Handbook Regulations and Interpretations.
The other type of interruption happens not twice a week but about twice a year, when a legal challenge confronts the MHSAA. It has been our practice to keep other staff focused on the daily business of the MHSAA, helping to make tournaments and other programs operate without distraction; while the executive director (as well as the associate director in more recent years) deals with litigation, which is usually a three- to six-month sprint but can also be a three- to six-year marathon.
I expect to insulate other staff from these diversions that can suck time and energy out of a forward-looking staff.
We anticipate that every day will bring us questions that were not on that day’s to-do list. We try to treat those interruptions as an important part of our work.