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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.

In Others’ Words

August 22, 2014

I’ve read and heard multiple times – so I’ve come to believe it’s at least partly true – that one of the techniques that marketing departments or agencies use when developing campaigns to promote a product or service is to look at it from the consumer’s, customer’s or client’s perspective.

The point is often brought home that if management would use this technique as much as marketers, then management would be more effective and would label itself, rather than marketers, as the “creative team.” It chafes me to hear a CEO say he or she wants to know what “creative” has to say about a sponsorship initiative before the CEO will offer an opinion.

Thinking about what our customers want doesn’t require that leaders suspend their personal beliefs or reverse experience-based opinions. It merely asks that we look at things from a different and sometimes even opposite point of view. And to be truly revealing, it asks that we try to put into words where other people stand on a particular topic.

It asks us to actually try to describe what our customers see from where they stand and what they say they want. For example, in our work, it would ask administrators to think about and actually describe what coaches want, and vice versa. And it asks both coaches and administrators to think about and put into their own words what student-athletes want, and what their parents want.

This has been an ongoing part of my life, provoked I suppose by my marriage of 42 years to a woman whose political views often point 180 degrees from my own. And this approach has been especially enlightening on school sports’ most troublesome topics, some of which we are tackling at this time, like ...

  • Out-of-season coaching rules
  • Junior high/middle school programming
  • Health and safety mandates