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.
Taking Back Their Game
December 15, 2017
Editor's Note: This blog originally was posted August 30, 2011, and the message still rings true today.
Grayling High School’s Rich Moffitt is one of our many fine high school basketball coaches, and a good portion of the heart and soul behind the MHSAA/BCAM “Reaching Higher” experience for our state’s students aspiring to play college basketball. Rich shared with us a recent article in Basketball Times written by Billy Reed, a long-time basketball writer for the Louisville Courier-Journal, Lexington Herald-Leader and Sports Illustrated. In this piece Reed urges high school basketball coaches to take back their game from the corrupting influences of street agents and summer coaches. He writes:
“I’d like to see the high school coaches publicly challenge university presidents to stop sacrificing academic integrity on the altar of the almighty sports dollar. I’d like to see them petition the NCAA to do everything possible to rid college football and basketball of the slimy street agents, summer coaches, pimps, hustlers and con artists who undermine the authority of their high school coaches and teachers.
“I’d like them to urge the NCAA to start running its own summer games instead of leaving it to the shoe companies and NBA stars, and I’d like to see them work with their state high school athletic associations to adopt rules stipulating that only certified high school coaches can coach summer teams.
“I’d also like to see the high school coaches rededicate themselves to teaching humility, civility and respect for the opposition, the public and the media instead of letting young superstars grow into rude, selfish, egotistical adults who think the same rules that apply to the rest of society don’t apply to them.”