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.
The Pencil Tale
May 25, 2018
I’ve learned to create at the computer keyboard, but my favorite writing experience continues to be by pencil (with eraser), legal pad and a pot of hot coffee. Thus, I’ve enjoyed this anonymous parable of the pencil.
An old pencil maker took his newest pencil aside, just before he was about to pack him into a box. Imagining the little fellow as a person, he recalled a few things about the pencil.
“There are five things you need to know,” he said to his pencil, “before I send you out into the world. Always remember these five things – never forget them – and you will become the best pencil you can be!
“The first thing is to remember that you will be able to do many great things, but only if you put yourself in someone else’s hands.
“From time to time you will experience a painful sharpening, but remember that this will make you a better pencil.
“Also, keep in mind that you will be able to correct any mistakes you might make along the way.
“And the most important part of you is what’s on the inside.
“And remember this, as well, upon every surface that you are used, you must leave your mark. No matter what else happens, you must continue to write.”