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.
The Long View
May 8, 2012
“. . . when you start fretting the day-to-day, you lose track of the long view,” says the protagonist in Charles Frazier’s latest novel Nightwoods.
It’s easy to do. Easy to get tied up in daily concerns and controversies that cloud our ability to concentrate on long-term goals and objectives and the big themes that should be apparent in our daily activities.
Day-to-day fretting causes heartburn for investors who ignore their long-term investment strategies and goals. It sidetracks businesses which lose track of long-term goals for the sake of boosting a quarterly earnings report. It affects politicians who, while keeping an eye on polls, take their eye off their principles. It’s probably taking a toll on school administrators who feel compelled to improve students’ test scores more than to infuse students with a passion to be lifelong learners.
I’m aware of some in our work who are able to refocus on the long view by getting away from the daily grind; but I know others who find the best way to refocus on the meaning and purpose of our work is to go to an event. Just be a spectator where you’re not on duty, not responsible for anything. To observe the action and emotion and school/community spirit. To see a coach counsel a dejected player. To watch an official make a tough call with perfect mechanics and people skills.
The day-to-day fretting may not disappear, but it gets placed in a much better perspective. The long view.