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.
Unjustified
December 11, 2015
The MHSAA has taken some unjustified criticism about the last-minute cancellation or relocation of several boys basketball games scheduled for the University of Detroit-Mercy earlier this week.
Unjustified because we would have liked the event to have been successful for our schools involved and a venue (Calihan Hall) we use often for MHSAA events.
Unjustified because the failure to follow interstate sanctioning rules was not our fault.
Unjustified because those who were in charge failed to respond to several outreaches well in advance of the event that were intended to inform or remind the organizers to seek and obtain proper approvals.
Unjustified because those approvals are a required part of the sanctioning policies and procedures of the national organization to which we belong, and which applied as much to the out-of-state schools as to our own.
Unjustified because critics now blame the problem on travel distance restrictions, which was not the issue at all. The travel was well within the generous limitations that exist.
What was at issue was the requirement that interstate events that are sponsored or co-sponsored by entities other than member schools must have the prior approval of each of the state high school associations involved, as well as the approval of the National Federation of State High School Associations (NFHS). This flows from the original purpose of the NFHS which was to bring accountability to interstate events at the high school level operated by colleges and commercial organizations.
We expect our schools to follow established rules of their state association, and we try to model that expectation by following the rules that apply to the MHSAA within its national organization.