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.

Half Empty or Half Full

December 11, 2012

After an absence of decades, eight-player football has been reintroduced to Michigan high schools during recent years. When enough schools sponsored the program, the MHSAA responded with a four-week playoff in 2011.  The number of schools sponsoring the sport grew in 2012, and more growth is expected for the 2013 season.

Like almost everything that occurs in life, what has benefited some schools is not seen by others to be in their own best interests.

Advocates of the eight-player game include those schools whose declining enrollments couldn’t support the eleven-player game.  Football has returned to some communities and has been saved from the brink of elimination in others.

However, as two and soon three dozen Class D schools opt for the eight-player game, the remaining Class D schools that sponsor football find themselves in disrupted leagues and forced to travel further to complete eleven-player football schedules; and they must compete against larger teams in Division 8 of the eleven-player MHSAA Football Playoffs.

In fact, the growth of the eight-player game among our smallest schools has resulted in more Class D schools qualifying for the MHSAA Football Playoffs than ever before.  In 2012, an all-time high 44.0 percent of Class D schools that sponsor football qualified for either the single division eight-player tournament or Division 8 of the eleven-player tournament.  This compares to 42.2 percent of Class C schools, 44.9 percent of Class B schools and 41.6 percent of Class A schools that sponsor football and qualified for the 2012 playoffs.

Some see the eight-player game as the savior of the football experience in Class D schools.  Others see it differently.