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.
Anticipating Collateral Damage
March 23, 2018
When major college sports sneezes, high school sports usually catches a cold.
Throughout history, the National Collegiate Athletic Association has made changes in response to problems in college sports that have resulted in harm to high school sports.
Who can argue that relieving college coaches from the burden of being members of the instructional faculty did anything but weaken the connection between intercollegiate athletics and the educational mission of the sponsoring institutions? That major college football and men’s basketball coaches are the highest paid employees at many universities demonstrates the disconnection.
Who can argue that the creation of athletic grants in aid – scholarships – did anything but raise the pressures on college programs to win and to recruit hard at the high school level? Who can argue that this process got any more upright and above board when NCAA rules were changed to push most of the recruiting process to non-school venues and corporate concerns?
Who is surprised now that the corruption has moved beyond the NCAA’s ability to control and has resulted in investigations by the Federal Bureau of Investigations and indictments followed by player ineligibilities and coach firings?
The worry now is that the NCAA and the National Basketball Association will strike again. Aiming to solve their problems, they likely will add to ours.