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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.

Patience

January 20, 2015

I found it amazing that an important "test" match in cricket last month between India and Australia was scheduled for three days but could last five days, or might end after two. This flexible scheduling is just part of the game.

On one day of that match, Australia was able to bat all morning, declare a lunch break, and then keep batting most of the afternoon before India ever had an opportunity to go on offense. When they finally did, India was already behind 400 and something to zero.

It was equally intriguing to watch the fastest two of the 117 yachts entered in the 70th Sydney to Hobart Yacht Race finish the more than 628-nautical mile course within 48 minutes of each other, but 11 hours before the third place yacht. And, two days before the last of the 103 finishers. 

I decided that Australian sports fans must have a different definition of drama, a lot more patience for events of long duration, and much more tolerance for events of indefinite length than we do in the USA. Perhaps it is in the DNA of Australians to be patient ... for they are certainly among the most polite populations I've encountered.

Perhaps all of this is inherent in the character of a country that is almost as large as the USA’s first 48 states but has only seven percent of the USA’s population. In fact, China's population increases each year by more people than the total population of Australia ... which may have something to do with 36 people being killed during a human stampede in Shanghai this past New Year’s Eve.