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.
Do The Opposite
July 15, 2013
During the summer weeks, "From the Director" will bring to you some of our favorite entries from previous years. Today's blog first appeared Aug. 12, 2011.
In Borrowing Brilliance, author David Kord Murray suggests that some of the brightest, most creative ideas emerge by doing the opposite of what your closest competition is doing.
So when I see school sports in some ways adopting over-hyped and commercialized traits of major college and professional sports or in more ways drifting toward behaviors of non-school youth sports, I sense an absence of creative thinking and doing by the folks in charge.
This wouldn’t worry me if I didn’t foresee that when school sports become too much like non-school sports, folks will begin to earnestly question why schools are spending severely limited time and money duplicating non-school programs.
Which will cause schools to drop those programs – first at subvarsity levels, as is already occurring, and then at all levels.
Which will cause schools to lose what has been well documented to be a great motivator for improving student attendance and grade-point averages and reducing student discipline problems and dropout rates.
It is almost to the point where if I see non-school sports do one thing, I recommend school programs do the opposite.
- Make athletes pay to play?
- Schools should do the opposite!
- Make athletes transport themselves to events?
- Schools should do the opposite!
- Schedule lots of games and little practice?
- Schools should do the opposite!
- Schedule long-distance travel and national-scope events?
- Schools should do the opposite!
- Focus on individuals more than teams?
- Schools should do the opposite!
In anything and almost everything, in large matters or small, schools should tend toward the opposite of what they observe in much of non-school sports. It will likely be better for the student-athletes and tend to preserve the niche school sports has long enjoyed in the world of sports.