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.
Leadership Communication
December 3, 2013
“We’ve got the weather,” the man said. And for years, my wife and I have wondered what he meant.
We had been walking in Dublin, Ireland and paused to photograph the huge wooden doors of an aging church building, when an elderly man on the sidewalk greeted us with those few words.
Did he mean the weather was bad because it was raining? Or, as we think more likely, was he saying the weather was good because it was a mild day with a gentle breeze and only a light rain?
My wife and I still recall that day in Dublin, that brief encounter, whenever we hear people make statements that could be interpreted in exactly opposite ways.
Speakers often say one thing and mean another, sometimes intentionally, sometimes innocently. Listeners often misinterpret what was stated because they had something different on their minds or expected something different to be said.
All of this and more adds to the difficulty of communicating effectively, whether between two people or within a team or organization.
Leadership communication attempts to minimize these misunderstandings; and an effective tactic for doing so is to have listeners restate what they believe they heard the leader say.
Communicating messages clearly and repetitiously is a leadership essential; but so is providing opportunities for others to repeat those messages. This leads not only to more precise communication, but also to more pervasive and powerful messages.