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.
Builders
August 31, 2012
My counterpart with the Iowa High School Athletic Association, Rick Wulkow, recently spoke at a reception at the conclusion of his term as president of the Board of Directors of the National Federation of State High School Associations.
Rick reminded the assembled colleagues from across the country that, by sponsoring and conducting and regulating extracurricular athletic and fine arts opportunities, they were doing for the youth of America what is not done for youth in other countries.
Mr. Wulkow asserted with conviction and passion that there is no more noble calling than theirs: to provide and to promote and to protect programs through which students learn life skills and discipline. To be builders of young people and, through them, to be people who are strengthening schools, communities, states and our nation.
In a world where people seem often to be tearing things down, he said, “These programs build things up.”
Like me, Rick is a veteran. Now in his 33rd year with the Iowa association, Rick has been a coach, administrator and official (including 17 years as an NCAA Division I basketball official). His words put another charge in my own heart, perfectly timed for the start of public school classes (finally!) next Tuesday.