Logo

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.

Researching Reclassification

January 25, 2013

The MHSAA was the first state high school association in the U.S. to divide its member schools into enrollment groups for season-ending tournament play. Over the years, in one form or another, all other statewide associations have done the same; and in more recent years, some have tweaked their systems to facilitate practical considerations of tournament administration or to address demographic or political shifts among their memberships.

Two forces have combined to bring increased attention to the participation of public and nonpublic schools in the same tournaments: 

  • First, as state associations expanded the number of classifications to provide more opportunities for their schools to experience tournament success, the percentage of nonpublic schools winning those championships has increased.  Nonpublic schools rarely won any championships at all before the expansion to multiple classifications and especially to the additional expansion in football classifications.  Public schools are not winning fewer championships today than years ago; they are merely winning a lower percentage of the championships now provided.
  • Second, as state governments have reduced funding to public schools, those schools have been forced to reduce support for their sports programs and more often make them pay-as-you-go, much like nonpublic schools have operated for years.  As pay-for-play and fundraising have been popularized in public schools, their “marketing advantage” over nonpublic schools has been diminished.

Often overlooked by those who call for separate tournaments for public and nonpublic schools is the fact that the majority of nonpublic schools rarely have had any success in statewide tournaments, and some have never had any success at all.  An occasional District championship and a rare Regional trophy is the reality of most MHSAA member schools, both public and nonpublic. This, and the fact that "multipliers" have addressed only nonpublic schools and not also select-enrollment public schools (magnet, charter, choice), explains why MHSAA study groups have rejected the use of an automatic enrollment multiplier for nonpublic schools which is now in use in about 10 states.

Acknowledging the flaws of a multiplier that is applied only to nonpublic schools, a few states have been working with a formula, applied to all schools, that reduces the enrollment figures used for tournament play based on factors that may tend to reduce the percentage of a school’s enrollment likely to participate in sports.  For example, there is limited evidence that students who are on free and reduced lunch participate at a rate that is 10 to 14 percent lower than other students; so this is a factor reducing schools’ tournament enrollments in two states.  A third state association looked at this and decided that the data didn’t justify the effort.

Two other states have recently implemented a system that places schools in a classification for larger schools after they achieve a certain level of tournament success in the classification in which they would normally be placed.  Of course, critics of this type of system that address the “chronically successful” are quick to point out that this does nothing for the school which is successful in the largest classification and tends to “penalize” next year’s students for the success of the previous years’ teams.  Would it be right to force Ithaca High School into a higher classification in football in 2013 because it captured MHSAA titles in 2010, 2011 and 2012?  And what would be done with Detroit Cass Technical after back-to-back titles in Division 1 of the Football Playoffs?

About these topics nationwide, there is much talk, some action, and no consensus.