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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.

Our Tools

March 11, 2014

MHSAA staff does very many things, including these two tasks: (1) we use the tools we have; and (2) we strive to develop more effective tools.

The tools we have are limited. We don’t have a huge staff to conduct investigations. We don’t have subpoena power to coerce disclosure of testimony and documents. We don’t have rules to cover every situation.

Thus, it feels like some people get away with things; and sometimes they do. We don’t have the tools to catch them or convict them. That is the inescapable condition of every voluntary statewide athletic association in the US.

But the other thing we do is keep working on better tools. Rules with broader reach and/or fewer holes. Penalties that are a greater deterrent to some people, and more punitive to others when deterrence doesn’t work.

Developing new rules is a tough process. Sometimes it takes months or years to get membership buy-in. Sometimes the “no-brainers,” so-called “easy solutions,” get shot down by lawyers who demand the most narrow remedy to each and every excruciatingly detailed problem.

We work today with the tools we’ve been given through the democratic processes of our voluntary association. And we keep working on ways to sharpen and strengthen those tools in ways that are reasonable in breadth and depth, rationally related to the basic tenets of a voluntary association, one of which is local control. Obviously, these are two of the more difficult things we do.