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.
Diversionary Tactics Backfire
September 24, 2013
Placing a stone in your left shoe will take your mind off a blister on your right foot; but it does not solve the problem.
Faced with domestic starvation and civil unrest, many dictators have created external enemies in hopes of distracting their countrymen and women and rallying their support. Think of North Korea as just one of dozens of examples, recent to ancient. It has even ocurred in the US, recently and throughout our nation’s history: strawmen vilified to distract us from other more pressing problems.
Closer to home, it is something like this strategy that may be at work in many school districts as they restructure and rename schools, or resort to closings and charters. And something like this is behind the state and federal emphases on standardized testing and schools of choice.
And really close to home, it was something like this at work in football. Faced with thousands of former players with alleged concussion-related illnesses filing suit against the National Football League, and bad publicity mounting, the NFL focused instead on youth football. We told them this strategy would backfire; but a professional league with more money than many nations was not inclined to listen to little guys like us.
The NFL went state by state to advance concussion legislation which was long on symbolism and low on substance, and totally lacking any enforcement capabilities. In state after state, the NFL paraded young people with sad stories in front of state legislators looking for good headlines.
So today, 49 states have new “concussion” laws; and participation rates in youth football are plummeting. Big surprise. But ironically, it’s plummeting at a time when school-sponsored football is the safest it has been since it was introduced to schools 100 years ago. The equipment is the best ever, the rules the most protective ever, the coaches and officials the best trained and most safety conscious ever.
Take a look at this quick video that tells the true story about school-sponsored football.