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.
Misspent Money
January 12, 2018
Editor's Note: This blog originally was posted July 15, 2014, and the message is worth another read.
It is not news to us, but it makes more waves when others report it.
William Hageman of the Chicago Tribune reported last month on a study from Utah State University’s Families in Sport Lab that found “the more money parents spend on youth sports, the more likely their kids are to lose interest.”
A Utah State researcher explains the connection: “The more money folks are investing, the higher pressure kids are perceiving. More pressure means less enjoyment. As kids enjoy sports less, their motivation goes down.”
Hageman exposes the folly of parents’ justification for their financial outlay – increasing their child’s chances for a college scholarship. Hageman says “a look at the numbers shows they (parents) may be deluding themselves.”
He cites NCAA statistics that only two percent of high school athletes receive athletic scholarships; and we have to add that many of those are not “full-rides.” The average scholarship covers less than half the cost of an in-state college education for one academic year.