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- #2 (Plugging Holes)
June 12, 2018
Almost every issue that affects youth is an issue that parents, politicians or the public is asking schools – and especially school sports – to solve.
Already consumed with efforts to promote participant health and safety in terms of heads, heat and hearts, our association is asked also to concentrate on mental health issues.
Having already addressed risks of tobacco, alcohol and performance-enhancing drugs, our association is asked also to campaign against opioid addiction.
State high school associations do not have the luxury to hire as many experienced people as they need to focus expertly on every topic that associations are asked to address.
The effect of this “person-power” shortage is to force the association’s executive director to be a utility player – an employee who can operate competently at many different positions, bringing time and prestige to the cause du jour.
Even the most forward thinking leader must be prepared to roll up sleeves and plug these holes in the team’s roster. This requires, again, that other staff be trusted to administer their assigned tasks without commanding the leader’s ongoing attention.