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.
Students of Rules
November 12, 2013
Those who make rules ought to be students of rules. We mean this in at least the two ways this posting and the next will address.
First, rule makers should know the essence of the existing body of rules which they will be responsible for upholding or modifying during the necessary ongoing review of those rules. These rule makers should have a general awareness of when and why each rule was first adopted, how it might have evolved, how it is now applied and what the major compliance problems have been in the past or may be in the future.
This first requirement is as important for those who prepare the rules for the contests – the playing rules – as for those who promulgate the rules that establish the minimum eligibility standards and the maximum limits for competition. In the face of any proposal to eliminate or greatly modify any rule, rule makers must ask what problems may return if they remove the rule that solved those problems.
Dov Seidman writes in how: Why HOW We Do Anything Means Everything: “Rules, of course, don’t come out of thin air. Legislatures and organizations adopt them usually to proscribe unwanted behaviors but typically in reaction to events. They lower speed limits after automobile accidents become too frequent, regulate pit bulls after a series of dog bites, or institute new expense-tracking procedures after someone is caught trying to get reimbursed for their new iPod. Rules have been established for a reason, but most people are out of touch with the rationale and spirit of why. They don’t read legislative histories and so have a thin, superficial relationship to the rules . . .”
That is not acceptable for those who write, review and revise rules. They have to know where each rule has come from. This is why for the rule makers and for those in our member schools responsible for applying the rules day in and day out, the MHSAA keeps current “The The History, Rationale and Application of the Essential Eligibility Regulations High School Athletics in Michigan."