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.
The Social Setting
March 18, 2014
Between these headlines was one of more significance: Facebook announced that it would be paying $19 billion to purchase WhatsApp. Which means social media is here to stay. And everybody, including big time basketball coaches, needs to deal with it in better ways than merely blasting it and/or barring it.
What it means for an organization like mine is that everything we do needs to be considered in all the usual goals, objectives and strategies progressions, and that at least one progression must have social media as an outcome and almost all progressions must have social media as a tactic.
Just over a decade ago we realized that almost every task we have has an information technology component. We discovered we needed our IT staff in the room when new projects or protocols were being considered, when new policies were being developed, and when all sorts of problems were being addressed. Fail to involve IT personnel soon enough or at all, we learned, and failure of the enterprise was assured.
We are at the same point today with social media. If we neglect the social media component – fail to consider how to use it to the advantage of the project or fail to consider how adverse social media could doom the project – we operate with at least one hand tied behind our back.
Just as the IT staff have needed to be consulted, and listened to, in order for the enterprise to reach its potential, so must our social media staff have a seat at the table and a voice in the discussion of anything of consequence we might think we should do.
This is as true for nonprofit organizations as it is for profit, for small organizations and large, both private and public.