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.
Who’s the Customer?
February 18, 2014
“If you ask your board, ‘who are your customers?’, you are likely to hear a lot of comments and no consensus.” That’s what I heard a speaker say to a group of association leaders last summer; and it has set me on a course of asking different groups this question: “Who is/are the MHSAA’s customers?” We allow respondents to allocate up to 100 points so they can give weight to their responses. Here’s what I’ve learned so far.
The board of directors of the Michigan Interscholastic Athletic Administrators Association (MIAAA) rated athletic directors as the top customer of the MHSAA (by a wide margin), followed in order by student-athletes, coaches and officials.
By an even wider margin, the MHSAA Student Advisory Council named student-athletes as the MHSAA’s top customer, followed by athletic directors and coaches tying for a distant second, and officials an even more distant fourth.
And the MHSAA’s governing body, the Representative Council, agreed that student-athletes are the top customer. Athletic directors were second, coaches third and officials fourth.
I suppose that when we ask audiences of coaches or officials or principals or others who they believe is or are the MHSAA’s customer(s), there will be some variation in the order of things. But I think we can already discern a comfortable pattern so far: everyone puts a premium on student-athletes. And that’s as it should be.
The MHSAA is unique among the state’s educational groups – we’re not an association of school boards only, or superintendents only, or principals only, or athletic directors or coaches or any other single group. We’re an association of schools, undertaking to represent all those groups and student-athletes themselves.