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.
A Game Changer
July 9, 2012
In the year 2000, fewer than 300,000 books were published in the United States. In 2010, more than a million were published.
This means that electronic media didn’t kill the book publishing industry, as some experts predicted. Quite the opposite. But electronic media surely changed the industry in several major ways, including:
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It democricized the industry – made it cheaper and easier for almost all of us to publish whatever we want, whenever we want, even if only our family and closest friends might read it.
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It dumbed down the industry. With almost everybody able to produce almost anything, the average quality of published works has plummeted.
The importance of these book industry statistics to us is that they point to what can and does happen in other aspects of life, including school sports. They provide evidence that sometimes what we think might crush us, only changes us. Causes us to do things differently – cheaper, faster or better and, sometimes, all three at once.
Some of us in school sports may, sometimes, curse electronic media; but many of the changes they have brought us are positive. Like officials registering online, receiving game assignments online and filing reports online. Like schools rating officials online; and online rules meetings for coaches and officials. Like schools scheduling games online, and spectators submitting scores online. Like the ArbiterGame scheduling program the MHSAA is now providing all its member high schools free of charge.