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.
It’s Not Us
October 2, 2015
There are continuing and crescendoing complaints about “AAU ball” – the travel, the competition without preparation, the agents and hangers-on, the sleaze factor. Yet some of those same complainers are critical of the very rules that tend to keep that sleaze at a low level in school sports in Michigan.
If so many people agree that kids and parents are being sold a bill of goods full of empty promises by a growing number of youth sports zealots, recruiting gurus, and both club and college level coaches, then why should we provide passports that would expose more students to this atmosphere?
If so many people feel that what’s happening in youth sports is bad and what’s masquerading as educational athletics in major college sports is baloney, then why should we help high school students earn frequent flier points through relaxation of time-tested travel and television policies?
If so many people believe there are too many athletic-motivated transfers, then why should we throw fuel on the fire? Those schools which could afford it would try to make their programs more attractive with national travel and televised games as a magnet to suck the best players out of neighboring schools that cannot afford the same excesses.
There is more than enough travel and exposure opportunity for schools here in Michigan and Illinois, Indiana, Ohio, Ontario and Wisconsin. Any more adds impure emphases and increased expenses to programs that are already overburdened or bankrupt.
When our school administrators and coaches say that national travel and tournaments are unaffordable and “It’s not us,” they mean it. They’ve got their priorities right.