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.
Cooperative Spirit
May 13, 2016
The 2016-17 school year will be the 29th since “cooperative programs” were first approved for MHSAA member high schools; and in that first year, it was but a modest step: two or more MHSAA member high schools whose combined enrollment did not exceed the maximum for a Class D school (then 297) could jointly sponsor a team. The intent, of course, was to help our very smallest member schools generate enough participants to have a viable program in one or more sports that was of interest to some of their students.
Over the years, the cooperative program concept has expanded to member schools of larger enrollment and to member junior high/middle schools. As of April 7, 2016, there were 260 cooperative programs at the high school level involving 450 teams, as well as 88 cooperative programs at the junior high/middle school level for 331 teams.
During the 2016-17 school year, there will be two new opportunities for MHSAA member schools to consider with respect to cooperative programs.
First, cooperative programs will be an explicitly stated option at the subvarsity level in any sport.
Second, maximum enrollments have been eliminated to help public multi-high-school districts start and complete competitive seasons in communities that have struggled to sustain programs in baseball, bowling, girls competitive cheer, cross country, golf, soccer, girls softball, tennis and wrestling. This is a three-year experiment.
It is declining enrollment more than a desire to save money that the MHSAA Executive Committee looks for when approving cooperative programs. Combining enrollments to create new or preserve existing programs is the intent; co-oping to reduce expenditures is not.