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.
Living With Change
December 1, 2017
One of the odd and irksome scenes I observe occurs when a relative newcomer to an enterprise lectures more seasoned veterans about change. About how change is all around us, and inevitable. About how we must embrace it and keep pace with it.
All that is true, of course; and no one knows more about that than the veteran being subjected to the newcomer’s condescension.
No one “gets it” better than those who have lived and worked through it. Short-timers can’t claim superiority on a subject they’ve only read or heard about.
Who has the deeper appreciation of change in our enterprise? The person who started working before the Internet, or after? Before social media, or after?
Who has keener knowledge of change in youth sports? The person in this work before, or after, the Amateur Athletic Union changed its focus from international competition and the Olympics to youth sports?
Who sees change more profoundly? The one who launched a career before the advent of commercially-driven sports specialization, or the one who has only seen the youth sports landscape as it exists today?
Who can better evaluate the shifting sands: newcomers or the ones who labored before colleges televised on any other day but Saturday and the pros televised on any other day but Sunday (and Thanksgiving)?
Where newcomers see things as they are, veterans can see things that have changed. They can be more aware of change, and more appreciative of its pros and cons. They didn’t merely inherit change, they lived it.