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.
Lost in Time
August 25, 2015
So, North Korea is establishing its own unique time zone – “Pyongyang time” – named after the nation’s capital city. North Korea will fall 30 minutes behind Japan whose time zone was imposed on the entire Korean peninsula more than 100 years ago.
Actually, North Korea is more than 30 years behind Japan in almost every aspect of civilized life.
This time zone adjustment gesture is of little practical significance because North Koreans have been closed off from global interaction by the impositions of their brutal dictators since the end of World War II. It’s symbolism befitting the backward nation’s isolationism.
The negative effects of this isolationism upon the nation are visible across the Demilitarized Zone from South Korea. Behind visitors to the DMZ is the vibrant mega-city of Seoul, South Korea. Across the river is a bleak, barren landscape with no sign of life. No people, no agriculture. Just a few buildings, without inhabitants. Built only for show.
There are many lessons to be learned from this contrast, on many levels. Of course, we see how people thrive more in an atmosphere of freedom than totalitarianism. We see the benefits of engagement over isolationism. We see that symbols without substance are meaningless.
Lessons for nations, to be sure. But reminders for enterprises of all kinds, including ours.
And a note to North Korea ... Newfoundland Island has had its own time zone for many years. It’s 30 minutes ahead of the rest of North America, and a century ahead of North Korea.