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.
Opportunity Lost
October 25, 2013
This fall as I conducted Update meetings around our state, I met one-on-one with potential candidates for an administrative position the MHSAA has posted in anticipation of Assistant Director Randy Allen’s retirement in early 2014.
This is a part of the slow, personal process we have cultivated during the past 20 years that I credit for gathering our current collection of committed administrators that are excellent in so many ways and a pleasure to work with day-in and day-out.
We last used this process a decade ago in leading us to hire Assistant Directors Mark Uyl and Kathy Westdorp; and realizing that I had not conducted a series of one-on-one discussions in ten years, I have been lamenting great opportunities lost; for these conversations are beneficial in two important ways:
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First, we learn about the lives of many terrific men and women; and I’m forever closer to them as human beings, whether or not they get the job the MHSAA has open.
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Second, we learn of the hopes and fears these experienced people have for educational athletics; and I’m constantly putting their ideas into action at the MHSAA, whether or not they are ever employed at the MHSAA.
But I now lament a huge opportunity lost. Had I taken the time to visit with a colleague after every Update meeting I’ve conducted over the past 28 years, that would have provided more than 200 opportunities to learn about the lives and ideas of these people – the MHSAA’s richest resource.
I read recently that a vibrant organization is one that is always hiring, whether or not there is a job opening. That is, the organization is always interviewing its best people – always learning about them and from them, and is able to tap this resource promptly when opportunities arise.