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.
Small Steps
November 3, 2015
“You can’t cross a chasm in two small jumps.” I believe it was former British Prime Minister David Lloyd George who said this when advocating for a big leap forward for his country during the early 20th century.
Indeed, taking two small jumps when one giant leap is necessary is an ill-fated strategy.
However, I have found that a series of smaller steps to solve large problems is very often the most practical and politically-expedient approach.
For example, as we have enhanced coaching requirements, especially related to health and safety, we didn’t insist that all of the changes occur simultaneously, or immediately. One thing at a time, phased in over several years, made these changes possible.
My MHSAA colleague Rob Kaminski, our webmaster and publications coordinator who is also an MHSAA registered football and basketball official, once remarked, “Not all football plays are designed to score touchdowns; some are just intended to move the ball forward or to set up a bigger play later.”