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.
Better Business
June 10, 2016
Maybe someday corporations that are generating increasing revenue by wringing money out of a decreasingly active population will realize that it would be a better business plan to promote more physical activity among what has now become the majority of young people – those who are not frequently active.
I am encouraged that “someday” may be coming soon when the symbol of business – The Wall Street Journal – features an article on the dangers of sport specialization that is too early and intense. The article promotes the benefits of balanced participation among youth.
In the May 17 issue, author Ben Cohen wrote this about NBA MVP Stephen Curry:
“Curry is already the most popular NBA player among kids. His approval ratings these days are close to ice cream’s. There was once a time when children wanted to be like Michael Jordan. Now they want to be Curry. But following his example doesn’t mean they have to grow up as the best shooter who ever lived. It may be as simple as dabbling in other sports when they’re still young.
“That’s because Curry is also the poster child for a saner approach to youth athletics. In an age of hyper-specialization, Curry has reached the pinnacle of his sport by doing the exact opposite. He played basketball, but he also played some baseball, football, soccer and basically everything else in a sport buffet. What worked for Curry, experts say, could work for everyone.
“As sports scientists continue to study how elite athletes develop, many of them have come to the conclusion that early specialization is the wrong approach. In the last five years, the American Medical Society for Sports Medicine, the American Academy of Pediatrics and the International Olympic Committee have published research supporting the position that children should sample different sports, rather than picking one too early.
“They have found that specializing in one sport at a young age is unnecessary and may even be unhelpful. Early focus on one sport – and only one sport – can increase the risk of overuse injuries and raise the potential for burnout. It also robs impressionable athletes of a diversity of experiences that can benefit them as they develop both as athletes and adults. The final argument against specialization may be the most obvious of them all: It’s not as fun.”
There’s much more to what Cohen writes, and we have posted on our Health & Safety page. Here is the link.