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 Meaning-Driven Brand
June 5, 2012
One of the apparent conclusions of the MHSAA online “Have Your Say” opinion poll conducted five years ago that continues to guide us today, is that the character of school sports is key to the appeal of school sports. This is true for both sponsoring school personnel and for those participants and spectators regularly involved in school sports. This suggests that to keep our core customers, we must preserve our core characteristics. That whatever changes occur in school styles and structures, we must maintain by our policies and programs the features and values which our core customers have experienced and both want and expect to continue.
It may sometimes feel that we are swimming against the current of public opinion when we enforce rules that define student eligibility or the limits of competition and travel, but the development and implementation of such restrictions might be essential to the expectations of our core constituents for the experience they remember for themselves and want for their children or team.
Just because schools change, it is not necessary that rules of school sports change as well. Sometimes, perhaps. But not always or even often. Leadership must always consider the program without a rule before we do away with the rule.
It is not too strong to state that schools seek MHSAA membership precisely because there are rules. In fact, schools formed the MHSAA to be their vehicle for making and enforcing rules. Just as participation by students is more valuable to them and their schools where standards of eligibility and conduct are higher, so is membership by schools in an organization more valuable where such standards are developed and enforced.
The Culting of Brands is a good book with a bad title in which author Douglas Atkin writes about the success of “a meaning-driven brand.” He says, “The product carries the message and then becomes it.” These kinds of brands, he says, are really beliefs. “They have morals – embody values.” They “stand up for things. They work hard; fight for what is right.”
Ultimately, it is exactly this that is expected of the high school brand of competitive athletics in Michigan.