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.
Transfers
January 10, 2017
When it comes to transfers, the staff of the Michigan High School Athletic Association gets lots of advice, but it comes from opposing directions.
One camp thinks MHSAA rules are inadequate. This group suggests that we expand the basic period of ineligibility from approximately 90 days to 180 days and/or it wants the MHSAA to eliminate most or all exceptions that allow for immediate eligibility of a transfer student.
This first camp is so frustrated with high-profile athletic-motivated or related transfers that they want to clamp down on all transfers.
The other camp thinks parents have the right and responsibility to send their children to any school they wish and have immediate access to the full benefits of that school’s curricular and extracurricular offerings.
This second camp is encouraged by the laws of Michigan which have gradually extended “schools of choice” as an option that all school districts may exercise. And this camp will be emboldened if the Secretary of Education under the new regime in Washington, D.C. is the long-time schools of choice advocate who has been nominated by the President-Elect for this position.
This second camp is on the right side of history, no matter how much I dislike it and no matter how convinced I am that the better way to have improved public education would have been to invest more in neighborhood schools. Improving them builds most communities. Ignoring them, as we have for 25 years, sends surrounding communities into downward spirals that worsen poverty and public health.
The ill-advised efforts to improve education by enticing students out of their neighborhoods to attend schools elsewhere has undermined “local ownership” in schools; and it has had the side effect of encouraging more transfers motivated by or related to athletics. Monitoring and managing such transfers is made more difficult by these educational reforms; but the new world will not tolerate transfer rules that are seen as too broad and contrary to what has become public policy, however poorly conceived and executed.
The fact is, the future of the transfer rule will be less about extending its reach and more about retaining its existence.