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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.

Change for Worse

November 25, 2014

I recall a toaster that was handed down from my parents when my wife and I were first married and in need of everything. It was already an antique, but it worked just fine, popping nicely browned bread with efficiency.

Some years later, we handed that toaster down to another generation; and we have missed its iconic look and quick, quality performance. No toaster we’ve had since has matched that model.

Recently we purchased a new dishwasher to replace one that was at least 25 years old. The new appliance is advertised as more energy efficient, with the features now required by the government in order to be more environmentally friendly. But the fact is, it runs twice as long and works half as well, often requiring a second wash to adequately clean the dishes.

You would think these earlier disappointments would have taught us; but even more recently we purchased a new washer and new dryer . . . energy efficient, of course . . . with all the required environmental improvements included. But again, the washer runs twice as long as the model it replaced. The dryer does too, and the clothes remain damp after repeating the maximum drying time . . . twice.

All of which proves the point that change is not always good.

People who proclaim that the world is changing and that we must change too are not always on the higher ground. Change is as often bad as it is good; and change often needs to be confronted, and thwarted.

Much of the change that has come to our homes has not improved our daily lives. Much of the change that has come to our schools has not improved the quality of education our children receive. Much of the change that has come to school sports has done much to harm and little to help educational athletics.

We must ignore the hype and point out the pitfalls of the shiny new products and promotions. Saying “No” to change is sometimes the boldest and best leadership we can provide for school-sponsored sports.