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.
Membership Growth
September 19, 2014
My last posting addressed the need for the Michigan High School Athletic Association to act like a member-based organization even though MHSAA membership is free and member-based revenue does not contribute to the MHSAA’s fiscal well-being. I cited the need to apply membership recruitment and retention principles as we work to attract and hold registered contest officials.
I might also have cited our need to attract and hold junior high/middle school members. While the MHSAA’s membership includes most of Michigan’s public and nonpublic high schools, fewer than half the state’s junior high/middle schools are MHSAA members.
We know the reason that most of the non-member schools at this level do not join the MHSAA is that they want to do their own thing – make their own rules – and they do not see enough benefit in MHSAA membership to overcome the advantages of their local autonomy.
They want to schedule more contests and/or sponsor longer seasons than is permitted by MHSAA rules. They are not much concerned with consistent application of playing rules, eligibility rules and limits of competition, which MHSAA membership requires. They are not much concerned with providing MHSAA-registered officials for their contests or MHSAA-purchased catastrophic accident medical insurance for their student-athletes.
There is no revenue incentive for the MHSAA to try to change these attitudes; but actually, the reasons for the MHSAA to do so are more important than money. In fact, the future of high school athletics depends more on what is happening today at the junior high/middle school level than at the high school level.
The less connected that junior high/middle school level programs are to high school programs today, the more problems the high school programs will have tomorrow – including controversies over conduct, confusion over eligibility and problems related to disconnected policies, procedures, philosophies and perspectives.
The MHSAA will serve school sports in Michigan best if it makes recruitment and retention of junior high/middle schools one of its highest priorities, and serves those schools with what the students and parents at that level want – which is, in fact, more school-sponsored competition, some even resulting in MHSAA-sponsored regional tournaments. Of course, both membership and tournament entry would be free of charge.
Just like most member organizations which need to look constantly for new, younger members, the enterprise of high school sports needs to be recruiting new schools which serve younger grades. It may not just be a matter of growth; it may be a matter of survival.