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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.

Words from Down Under

February 1, 2013

In the County Hotel, one of the few buildings in Napier, New Zealand, that survived the 1931 earthquake in that region, there is a library of books that have been left by previous travelers and may be exchanged for books of current travelers.  Among the books I found was Lord Cobham’s Speeches.  Lord Cobham was the Governor General of New Zealand from 1957 to 1962.

From his speech at the “Sportsmen Luncheon” in Wellington, NZ, 52 years ago today, I found these pearls:

  • “. . . sport is a great character-former; it teaches that self-control which must always precede self-expression, and that gracious acceptance of defeat is the gold to victory’s silver.”
  • “Sport is harmony, balance and rhythm, the triple heritage handed down from ancient Greece, without which art is barren and civilization itself out of joint.  Above all, the acquiring of a technique is increasingly important in an age when automation and the machine have robbed human beings of that sense of fulfillment that comes of fine craftsmanship.”
  • “Today we see the result of trying to hustle youth through childhood and adolescence into manhood and womanhood.  Education is one of the few things that cannot be hurried, although modern techniques may facilitate instruction, for which education is often mistaken . . .  In these instances, sport and games can and must play an increasingly important part in producing well-balanced citizens.  But before we do this, we must see to it that the games themselves don’t fall victims to the prevalent evils of selfishness, sharp practice and greed.”
  • “It is when the player of the game thinks himself greater than the game that both get into trouble.”