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.
Questions
September 9, 2014
Sometimes leadership looks at questions as a challenge to its authority, or as a way to obstruct progress. Both can be true.
But a better way to view a good question is as a valuable gift. It can provide an opportunity to learn, to consider details that hadn’t been addressed or alternatives that hadn’t been raised.
And a better way to look at a leader than the one with all the answers is to view the leader as a collector of questions.
The quality of those questions can have a direct relationship on the quality of ideas and initiatives that form, and a direct effect on programs and services that follow.
During August and September, MHSAA Associate Director Tom Rashid has been meeting with athletic administrators at their league meetings. Among several objectives has been to ask these front line administrators to think about some new approaches to some old topics – like out-of-season coaching limitations and policies and programs for junior high/middle school students. He has been asking questions, and then he’s been listening to questions, both of which are preparing us for more in-depth discussions on these topics throughout the remainder of the 2014-15 school year.