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.
Standards Promote Value
October 29, 2012
I can’t speak for every state, but it is probably true for most states, that (1) no school is required to provide a program of interscholastic activities – such are not curricular activities; and (2) participation in voluntary interscholastic competitive activities is a privilege offered to those who meet standards of eligibility and conduct of the school and standards of ability for the activity involved.
It is not a liability but an asset of competitive interscholastic activities that they are not co-curricular, but extracurricular – voluntary programs with extra standards, extra requirements, extra expectations.
We don’t need to sell the public on the value of participation; they desperately want their children to participate, and they will even sue us for the opportunity. What we have to do is sell the public on the value of the standards we maintain for participation.
Much of the value of school activities results from the standards of school activities. Many of the benefits of school activities accrue from the requirements of school activities. Raise the bar, raise the value. Lower the bar, lower the value.
Activities are much less capable of doing good things for kids and good things for schools and their communities where there are lower standards of eligibility and conduct. It’s the difference between interscholastic and intramural, between tough and easy. It is because schools have raised the bar for interscholastic activities that these programs have value to students, schools and communities.