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.
Shortsighted Reform
April 16, 2013
Our posting of March 29 (“Hit Again”), about the mistakes being made in the guise of reforming education, struck a nerve with readers. And since then, writers with wider audiences have offered similar commentaries, including DeWayne Wickham writing for Gannett as his words appeared on LSJ.com on April 3, 2013:
“The fight against public school closings has become the new civil rights battle in this country – and rightfully so. Faced with a billion dollar budget deficit, Chicago’s public school system is the most recent urban district to announce a massive closure of schools. The city intends to shutter 61 elementary buildings, nearly all of them in black and Hispanic neighborhoods.
“That’s a penny-wise-and-pound-foolish decision that condemns the neighborhoods surrounding these soon-to-be-boarded-up schools to further decline. ‘We have resources that are spread much too thin,’ Todd Babbitz, the chief transformation officer (no kidding that’s his title) of Chicago’s troubled school system, told the Chicago Tribune. Over the next decade, school officials predict that these closings will save the school system $560 million. But first the city will have to spend $233 million to move students into classrooms elsewhere.
“Even if the school closings actually produce savings, the damage they will produce to the neighborhoods left without public schools will be catastrophic. While poverty and crime have decimated the population of many inner city neighborhoods, shutting down schools in those troubled areas will depopulate them even faster. The result will be a growing expanse of urban wastelands that could well deepen the budget deficits of the cities that are closing public schools.
“Politicians and school officials must be challenged to justify their school closing decision beyond the deal making of Chicago’s City Council. The U.S. Department of Education’s civil rights division is investigating complaints that claim the decisions of several urban school districts amount to a civil rights violation. If the school closings don’t violate the letter of the law, they sure seem to trample upon its spirit. For example, officials in Chicago and elsewhere should turn these school buildings into hubs for nonprofit organizations and other public services. Why not use the empty space to house police substatations, public health clinics, recreation centers and a mayor’s station?
“School systems in Philadelphia, Washington, D.C., Detroit and Newark have announced plans to close public schools, and in every case blacks and Hispanics will bear the biggest burden of these cost-cutting measures. These decisions signal an indifference to the damage such policy decisions will have on the neighborhoods.
“‘If we don’t make these changes, we haven’t lived up to our responsibility as adults to the children of the city of Chicago,’ Mayor Rahm Emanuel said. That’s a pretty shortsighted analysis of a problem that will render large swaths of Chicago’s black and Hispanic neighborhoods uninhabitable education wastelands.”