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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.

Making an Impact

September 11, 2012

Here’s a provocative statement by David Gergen, professor of public policy and director of the Center for Public Policy at Harvard’s Kennedy School of Government, and a frequent political analyst for CNN:  “The nonprofits making the greatest impacts these days are entrepreneurial, adaptive, outward-looking, and sometimes a little messy.”

I like that, and I think using these four features or criteria to evaluate the MHSAA now and in the mid-range future would be good for those we serve.

  • Are we entrepreneurial?  How could we be more so?

  • Are we adaptive?  Are we flexible in how we do things?

  • Are we outward-looking?  Are we impacting school sports broadly and deeply?  Does the impact have staying power?  Are schools better because of what we do?  Are communities stronger for our doing it?

  • Are we sometimes a little messy?

I suspect that if we are the first three – entrepreneurial, adaptive and outward-looking – then messiness is a natural byproduct.  There will be starts and stops, failures before successes, changes.  There will be disagreements and compromises.

I suspect that we will have to tolerate a little more messiness if we are to move forward, even faster than we have, and if we are to have impact, even greater than we have.