Logo

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.

Rocket Science

January 5, 2015

I have always been fascinated by space exploration and in awe of all that is required and must go right to send a space vehicle atop a multi-stage booster rocket from a moving object like Earth, and land it softly on another moving object like the moon or Mars or most recently a massive rock, after a journey of many months and millions of miles. How can people figure that stuff out?

There cannot be a problem of school sports that is more complicated than those of space exploration, except for one feature – which is that our problems deal with people, who are far less predictable and dependable than the laws of physics.

Making matters worse is that we are working with people in a competitive arena, and in an emotional setting, where the objectivity which characterizes the scientific method of rocket scientists is generally if not universally absent.

As long as potential problem-solvers view potential solutions through the lens of what does or does not benefit them in terms of competitive edge, our efforts to make good changes will never launch or, if launched, will miss the target.