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.
Guarding Secrets
February 8, 2013
January was a bad month for some sports heroes, but it was an instructional time for those who paused to connect some dots.
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Two of Major League Baseball’s most prolific performers became eligible for baseball’s Hall of Fame, but we learned in January that neither came close to earning enough votes for election to that prestigious shrine. Each has seen his star-power descend in a cloud of legal problems surrounding his suspected use of performance enhancing drugs.
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After seven Tour de France titles and seven times seven denials of using performance enhancing drugs and various blood doping techniques, Lance Armstrong “came clean.” Sort of.
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A Heisman Trophy candidate went from a broken-hearted soul mate to the victim of a cruel hoax to a contributor to the weirdest story college sports has witnessed. From duped to duplicitous.
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And all this with Penn State’s scandal still fresh in our minds.
How fatiguing it must be and, ultimately, how futile it is to try to keep secrets. That’s always been true; it’s just more obvious in a world where everyone’s access to social media renders investigative journalism too little and too late in uncovering the secrets that heroes harbor.
How any of these people ever thought they could guard their secrets beyond the grave would be beyond belief if it just didn’t keep happening so often. There must be something we’re doing wrong in the upbringing of prominent athletes (like too many politicians) that makes them think they can get away with sordid secrets . . . that they’re too big to fail.
The truth is, the bigger they are, the harder they fall. No secret is beyond discovery.