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.
Boring Impartiality
January 6, 2017
Some people – like our U.S. President-Elect and, apparently, like the NCAA Division I Football Playoff Selection Committee – seem to believe that all publicity, no matter how negative, is good publicity. If it draws attention to your candidacy or championships series, no matter how embarrassing, it’s okay – even good.
That’s not the belief of the Michigan High School Athletic Association. As an organization that must too often do unpopular things, like enforce rules that others don’t and impose penalties that others won’t, the MHSAA prefers to avoid creating controversy where there are options to do so.
The structure of MHSAA tournaments provides some options.
Tournaments which exclude no teams or individuals provoke less controversy than those with a limited field. Tournaments which favor no teams through a seeding scheme cause fewer arguments.
If our only purpose were to increase revenues, there is much we could do to gerrymander MHSAA tournaments in order to shorten, smooth out and straighten the tournament trail for the teams with the best records and biggest crowds during the regular season, like the NCAA women’s and NIT men’s basketball tournaments do.
But if fairness – blind, boring impartiality – is more important to us, then we will not force the teams with the poorest regular season records to face off in bracket rat-tails and we will not provide the teams with the best regular season records a tournament trail that avoids similar teams for as long as possible.
This approach opens us to criticism that we are dumb to be different and stupid to reject the revenue-generating practices of major college and professional sports organizations. But no one can claim we are unfair.
It’s not unfair to treat all schools the same. The unfairness begins – and real controversy follows – when an organization tries to favor some teams over others.