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.
Growth Industry
December 26, 2014
We have wondered why Michigan’s high schools would enroll more J-1 visa students than in any other state, as well as more J-1 and F-1 visa students combined than the schools of any other state. It certainly can’t be our weather!
Like schools in many states, Michigan schools are looking to foreign countries to fill classrooms where enrollments have been falling, and they are looking to the tuition dollars of international students to help fill the hole of declining state funding.
And schools across the US are finding a hungry market, especially in Asia where families are willing to pay almost any amount to give their children the kind of educational opportunities their own countries don’t, including a leg up in gaining admission to a US college or university.
One unique contributing factor to our state’s leading totals is the late date when public school classes start in the fall. International students who miss the start of school in states which begin classes two, three or four weeks before Michigan can still try for a placement in Michigan where public high schools cannot begin classes until after Labor Day.
These late, scrambling and sometimes inadequately vetted enrollments are one of the many problems attendant to the increasing numbers of J-1 and F-1 visa students enrolling in Michigan each year. More serious are the “pipelines” that, for example, direct basketball players to some schools and ice hockey players to other schools.
It makes some people feel warm and fuzzy, but a lot more people get hot under the collar, to observe a foreign exchange student become a suddenly successful basketball team’s high scorer and rebounder, and then later be given a Division I university basketball scholarship. Or be the leading scorer on an ice hockey team that posts its best record and deepest MHSAA tournament run in the school’s history.
My wife and I have hosted an international college level student in our home for almost two years. I know the benefits to both parties. And I also know that there is a growing number of problems related to sports and profit that need to be stopped, or at least sent to some other state.