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.
No Returns or Refunds
January 18, 2013
The “Boxing Day” tradition of New Zealand, like most of the current or former British Empire, is to return to stores on the day after Christmas the unwanted or ill-fitting gifts of Christmas. My wife and I exchanged no gifts this year, except for the gift of time with each other and our China-based son and his wife in New Zealand. So we had nothing to return, and we’ve had moments to savor.
Outside our window on Christmas Day was an extinct volcano rising 758 feet above New Zealand’s Bay of Plenty coast. Its peak was hidden in clouds sent by the remnants of Cyclone Evan. We couldn’t see the top of Mt. Maunganui; but our fragment of the Roberts family who had gathered for this holiday, below the equator and on the other side of the International Dateline, decided on a “Christmas climb” anyway.
Attempting a challenge whose goal is shrouded in uncertainty is an every-season experience of coaches, which may be the opiate that draws so many men and women to that vocation for so long, and consumes coaches so far beyond what are reasonable hours for most other occupations.
Even in the more mundane existence of a state high school association administrator, it is the unknown of each year, week and day that energizes the grind. How boring it would be to know what’s at the end of each climb. How exciting it can be to come to a problem-solving table with good ideas and also with the expectation that the best ideas will come out of collaboration with others’ good ideas.
I count myself among the fortunate folks who, at the end of most days and weeks and years, do not feel inclined to want to return the gifts that each has brought. And I’m still attracted to the discovery of what the next cloud-shrouded climb may reveal.