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.
Striking A Balance
January 23, 2018
This past fall, the feature topic of the seven Update Meetings of the Michigan High School Athletic Association was the Transfer Rule ... its history, rationale and reasons why it should and shouldn’t be altered to counter the transfer epidemic that school of choice laws and the youth sports travel team culture have infected upon school-sponsored sports in this and other states.
The Update Meeting presentation included cautions that, while the vast majority of school administrators and coaches want a tougher and tighter transfer rule with longer periods of ineligibility and fewer exceptions that permit immediate eligibility, many people outside of school sports believe such changes would infringe upon their individual choices; and even some people involved in school sports at the local level lose interest in supporting the rules already in place when they are applied to their own situation.
The Update Meeting concerns have been legitimized during more recent months in both high and low profile situations.
There are suggestions that the MHSAA should have an investigations department to search for and penalize athletic-oriented transfers and unscrupulous acts by coaches, parents and others. Which is a foolish notion. The MHSAA does not have subpoena power, can’t perform wiretaps, and cannot devote the personnel and other resources that an investigations department would require. Even with hundreds of millions of dollars in resources, the NCAA has not been able to execute that function for intercollegiate sports, and recently the FBI stepped in to do the difficult work.
As has been its long-standing and generally effective practice, the MHSAA relies heavily on its member schools to help enforce its rules, which schools agree to do as a condition of their voluntary membership.
At the other extreme are suggestions to do away altogether with transfer eligibility rules. Let anything and everything go. Which is what we call the AAU, an incompatible approach to student-centered, school-sponsored sports.
Striking a balance is a difficult, but worthwhile endeavor. To that end, the MHSAA Representative Council works tirelessly on behalf of member schools to establish the proper set of rules to create competitive equity.