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.
Destiny
January 9, 2018
Editor's Note: This blog originally was posted May 01, 2012, and the timeless message is worth another read.
A University of Wisconsin football player from my hometown years ago was hit from behind in the closing minutes of spring football practice. It caused an injury that required surgery. That caused him to miss the next fall’s football season; and to protect him from further injury, he was allowed to skip the following spring’s football practice and to work out with the Badgers baseball team.
He ended up leading the Big Ten Conference in hitting, and he eventually received the largest signing contract in the history of professional baseball, becoming the first “Bonus Baby” for Gene Autry’s Los Angeles Angels.
“If not for that injury in football,” he once told an audience, “caused by an unskilled walk-on in the last five minutes of the last spring football practice, I would never have played college baseball. I would never have played Major League Baseball for 11 seasons.
“You never know,” he said, “when you are five minutes from your destiny.”