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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.

Suspicious Solutions

January 17, 2017

Fifty-two weeks ago yesterday I had hip replacement surgery on my right side. My recovery was so speedy that most people outside the offices of the Michigan High School Athletic Association never noticed, and I was back to my normal activities and workouts very quickly.

But gradually during late summer and then dramatically in early November, my body reacted. It has been giving me pain from hip to foot on my left side, a limp I can’t disguise, and a metaphor for this message.

It appears that correcting one thing adversely affected another thing; and the second problem is much more painful than the first one was.

So-called solutions often have unintended consequences, worse than the original problem. For example:

  • Every expansion of the MHSAA Football Playoffs has had an effect opposite of what was intended. Each has added additional stress on local scheduling and league affiliations; and each expansion has increased the likelihood of repeat champions.

  • Seeding MHSAA Basketball Tournaments, seen by some people as a solution so that the best teams will square off later in the tournament trail, will have those same consequences – stress on scheduling and leagues, and more repeat champions.

  • Relaxing requirements for cooperative programs once seemed like a good thing, but now it is more frequent that schools take the easy route – sending their students off to play on another school’s team – rather than doing the hard thing – providing and promoting the sport themselves. The former provides far fewer participation opportunities than the latter – the opposite of the intended purpose for cooperative programs.

  • Charter schools and School of Choice policies were supposed to force schools to improve through competition, but this “solution” devastated neighborhood schools. These policies didn’t “empower” parents, they created estrangement between schools and communities.

I could go on. The point is, my limp is a reminder to be on the lookout for the new problems inherent in so-called solutions.