Planning & Doing
January 31, 2012
One of the MHSAA’s counterpart organizations in another state recently asked to see the business plans of other statewide high school associations. Some of the states supplied their detailed budgets, but most had nothing to offer.
Of course, a budget is a much different thing than a business plan. A budget is built more on past performance, while a business plan looks more to the potential of future problems and opportunities. A business plan is much more than numbers.
Since 2007 we’ve been using a “Mission Action Plan” (MAP) at the MHSAA. It was developed to deal with the opportunities and obstacles of three powerful trends: (1) growth of non-school youth sports programs; (2) expansion of educational alternatives to traditional neighborhood schools; and (3) proliferating technology.
While not a typical business plan or a classic “strategic plan,” the “MAP” has become increasingly useful to point the way for the MHSAA both in terms of program and finance. The MAP states a single “Overarching Purpose;” it identifies four “Highest Priority Goals;” and it lists four multi-faceted “Current Strategic Emphases,” many of which have quantifiable performance targets, including financial goals.
Next to each Current Strategic Emphasis are two boxes. The first is checked if we’ve gotten started, and the second is checked when we’ve completed the task or are operating at the level we had established as our goal. At this point, every MAP strategy has been launched, but only a portion have earned the second checkmark.
Quite efficiently, the MAP keeps us both strategic and businesslike without the formality of purer forms of strategic or business plans.
Investments
July 9, 2014
Bristling from criticism that our associations are money-grabbing exploiters of children, my counterpart from Colorado said, “If we were running our programs just to make money, we would do very many things very differently.” I knew exactly what he meant.
Because we care about the health and welfare of students, because we mean what we say that the athletic program needs to maximize the ways it enhances the school experience while minimizing academic conflicts, and because we try to model our claim that no sport is a minor sport when it comes to its potential to teach young people life lessons, we operate our programs in ways that make promoters, marketers and business entrepreneurs laugh, cry or cringe.
If money were the only object, we would seed teams and select sites to assure the teams that attracted the most spectators had the best chance to advance in our tournaments, regardless of the travel for any team or its fan base. If money were the only object, we would never schedule two tournaments to overlap and compete for public attention, much less tolerate three or four overlapping events. If money were the only object, we would allow signage like NASCAR events and promotions like minor league baseball games.
Those approaches to event sponsorship are not wrong; they’re just not right for us. And we will live with the consequences of our belief system.
During the 2012-13 school year, 438 of the MHSAA’s 2,097 District, Regional and Final tournaments lost money. Not a single site in golf, skiing or tennis made a single penny. Over 17 percent of all other sites brought in less revenue than the direct expenses incurred at the site. In no sport did every District, Regional and Final site have revenue in excess of direct expenses.
In fact, in only three sports – boys and girls basketball and football – is revenue so much greater than direct expenses overall that it helps to pay for all the other tournaments in which the MHSAA invests.
That’s right: invests. When we present our budget to our board, we talk about the MHSAA’s investment in providing tournament opportunities in all those sports and all those places that cannot sustain the cost of those events on their own.