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.
The Most Important Decisions
October 13, 2015
During the course of contests, coaches and officials make many mistakes – not as many as spectators might think, of course – but mistakes certainly do happen. In the heat of competition, most are quickly forgotten.
Those mistakes that occur near the end of games or are caught on camera can live longer than dozens of more consequential decisions earlier in the event that might later be determined to be incorrect in the 20/20 hindsight of “Monday morning quarterbacking.” But it is extraordinarily rare that any decision during a contest defines a career, or ends it.
No, the decisions that do most to damage, detour or destroy a coaching or officiating career are those made away from the contest. A bad impulse during a social outing, indiscreet comments or conduct caught on video and sent worldwide overnight, or an inappropriate email or website search ... these are the decisions that end up defining the career.
The stakes may be higher for decisions made away from the sport by coaches and officials than the decisions they make in the athletic arena. Every week’s sports news tells me this is correct. Hundreds or even thousands of people may witness a judgment call during a contest, while millions upon millions will be exposed to poor judgment exercised away from the contest.