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.
Conventional Wisdom
August 9, 2016
The conservative columnist George Will is a baseball junkie who recently hit a homerun in his commentary just prior to the Republican National Convention in Cleveland. He wrote that the show in Cleveland would focus on style and trivia more than the substantive trends of the world’s circumstances.
Mr. Will speculated, and was proven correct, that the Cleveland circus would miss altogether serious developments in the South China Sea that are nearly as threatening as Hitler’s advance across Europe prior to the United States’ entering into what became World War II. He was referring to China’s aggression through the construction of islands and the conduct of military exercises in areas that the World Court has determined do not belong to China. This war on a pristine aquatic environment is upsetting the geopolitical order as well.
This has nothing whatsoever to do with sports except to point out the absurdities of our talking about trivia in one place while near tragedy goes unaddressed elsewhere ... which happens routinely in sports. For example:
-
In pro football, the talk is of “Deflategate” more than domestic violence. Or, as the most recent owners’ meeting reveals, on commerce more than concussions.
-
In college football, the talk is of billion dollar broadcast deals more than the broken bond between universities and the “students” they send far and wide to compete on television at any hour of any day.
-
And in school sports right here in Michigan, stakeholders perseverate about football playoff expansion more than football players’ health and safety. Or on end-of-season basketball tournament seeding more than out-of-season basketball insanity.
Our challenge is to listen to all concerns but to expend leadership capital only on the matters that really matter.