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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.

No Easy Fix

February 13, 2015

“If we don’t fix this problem, even our friends and allies may turn against us.”

That was the dire warning one of the MHSAA staff members gave to the rest of us at a weekly staff meeting recently, during which this staff member was receiving emails from people appalled over the mid-season transfer of a basketball player from one school to another.

The “fix” that some people want is a rule that makes every transfer student ineligible for a full year, regardless of the reason for the change of schools or the circumstances of the student. Of course, that rule would never survive judicial scrutiny, and legislators in every corner of the state would be advocating change for the sake of one child or another.

A more moderate remedy is to utilize a rule that applies the full-year period of ineligibility to those students whose circumstances do not fit one of the already established 15 exceptions that make a student eligible without delay following a transfer. That half-measure would not stop many transfers that would still frustrate people, and it would snag many transfers that would continue to anger people.

The rules we already have in place are tools for schools to use to stop many of the transfers that frustrate without snaring those transfers that anger: the athletic-motivated transfer rule and especially the athletic-related transfer rule (or links law).

Before our friends and allies turn their backs on us, they need to turn in the transfer situations where the rules already apply, and the undue influence (recruiting) they can document. They need to give the system a chance to work to the full extent of its potential. We should not make tougher rules if schools fail to utilize the rules they already have.

Adopting rules is usually easy for the organization. Applying rules is often much harder for the schools.