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.
Mounting Evidence
October 10, 2014
- On July 15 (“Misspent Money”), the Chicago Tribune’s William Hageman was the reporter and Utah State University provided the research. The message was that sports specialization is a serious waste of family resources.
- On July 18 (“Specialization Risks”), the renowned David Epstein was the writer and Loyola University of Chicago provided the work. The message was that serious health risks make specialization counterproductive to successful sports careers.
- On Sept. 5 (“More Than a Myth”), I reported that the Lansing State Journal picked a three-sport male and four-sport female as its 2013-14 high school athletes of the year – practical proof that the reports of the death of the multi-sport athlete are greatly exaggerated.
Last month, Athletic Business recalled its August 2013 interview with the often quoted Dr. James Andrews, the orthopedic surgeon and injury consultant and author of “Any Given Monday: Sports Injuries and How to Prevent Them for Athletes, Parents and Coaches – Based on My Life in Sports Medicine.” In this interview, Dr. Andrews reiterated his earlier statements (some quoted in earlier postings here) that there is a “dramatic increase in overuse injuries ... due in large part to kids participating in one sport all year ...”
Athletic Business editor-in-chief Dennis Van Milligen added in his September 2014 editorial:
“Parents are ‘investing’ outrageous amounts of money into their children’s athletic development, because the fear is that they will not reach the level they need to without specialization, a notion constantly disproved.”
For multiple reasons, the multiple-sport experience is best. We must strive continually to make that experience possible for most of our student-athletes.