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.
Weaving Policy
February 10, 2017
My wife weaves. She weaves scarves and placemats and napkins and table runners and rugs. And while she weaves, I watch, looking for the metaphors.
One of the most obvious comes from looking at both sides of her work. In its simplest form, one side of the woven project is the result of careful planning and preparation; the other side just sort of happens. In weaving, except for the "plain weave" where the bottom of the item mirrors the top, the underside of a weaving project is usually unimportant.
In leadership, however, that's rarely the case. Leaders have to be concerned with two or more sides to most issues. They have to consider in advance both the seen and unseen aspects of the project.
So when people advocate for expansion or contraction of cooperative programs or football playoffs, or for tougher or more liberal transfer rules, or for more or different tournament classifications, or for seeding of tournaments, leaders of the Michigan High School Athletic Association need to look at both sides of any plan and the multiple angles of the issues raised.
This leadership will try to explain to proponents what opponents see in a proposal, and vice versa. This leadership will try to speak for and report to those who are underrepresented in the discussion.
This leadership is entitled to its own opinion but responsible for seeing that sincere and studied opinions of others are both well heard and thoroughly vetted.