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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.

A Solutions Approach

July 13, 2015

I had not been to New Orleans since Hurricane Katrina devastated the city, and I expected to see much change since my several visits before the flooding. What I discovered when I attended national meetings there recently was little change ... including most of the same sights, sounds and smells of years before. I expected the same of the national meetings ... “same-ol’ same-ol’.”

It has become tradition that the executive directors of the 50 statewide high school athletic associations meet twice during the annual summer meeting of the National Federation of State High School Associations in sessions separate from all other delegates to that large convention. It has also been customary for me to leave those sessions depressed as problem was heaped upon problem by the directors, with little attention to solutions.

However, between the two sessions this year, a small group of the executive directors talked about strategies to redirect the conversation; and the result of the second session in New Orleans was to develop a strategy for identifying and prioritizing the most significant problems of school-based sports, and then identifying and prioritizing the resources and alliances currently available, as well as those that could be developed through cooperative effort and strategic partnerships, to attack the most pressing problems.

The expertise to solve such problems has been in our room for years. What has been lacking is the commitment to a process that could move us from a group accomplished in citing problems and suggesting reasons for them to a group accomplished in working together to solve the most significant problems.

So, the “Big Easy” is and may remain pretty much as it always has been. But maybe future meetings of the National Federation, wherever they may be, will be undergoing substantive change.