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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.

Plan B Planning

July 23, 2015

The odds of a boy having a career as a professional athlete are very small; and for a girl, the odds are infinitesimal. But that doesn’t make the pursuit of such a goal ridiculous.

First, there are good, healthy destinations shy of that goal that result in meaningful, satisfying sports-related careers ... coaching, athletic administration, sports broadcasting, sports medicine, officiating, for examples.

Second, dedication to such a goal can develop disciplines and habits that lead to a more productive life, regardless of the ultimate career path.

How ridiculous would it be in 1969 for a Canadian boy of nine to set the goal of becoming an astronaut? Canada didn’t even have a space program!

But that’s what Chris Hadfield did, and he discovered the goal provided direction to his life that was lacking before. He had a new lens for viewing life and his place in it.

In An Astronaut’s Guide to Life on Earth (Little, Brown and Company, 2013), Colonel Hadfield writes: “Throughout all this I never felt that I’d be a failure in life if I didn’t get to space. Since the odds of becoming an astronaut were nonexistent, I knew it would be pretty silly to hang my sense of self-worth on it. My attitude was more, ‘It’s probably not going to happen, but I would do things that keep me moving in the right direction, just in case – and I should be sure those things interest me, so that whatever happens, I’m happy.’ ”

There is a commercial airing on television for an international real estate company that tells us to “dream with our eyes open.” That is good advice for youngsters who dream of playing sports at any higher level. Even if the dream is not realized – and it most likely will not be – the dream might help to produce life skills for a rewarding “Plan B.”