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 Backhanded Compliment
April 17, 2012
A year ago this month I listened to the attorney for another statewide high school athletic association pose this question: “Why is it that people quite readily accept inflexible age limitations over a broad spectrum of American life, including sports, but presuppose it is wrong for school sports?”
This attorney was in the middle of a controversy that more recently has visited the MHSAA: an overage student seeking relief from a universally applied maximum age rule. The speaker was perplexed and frustrated by the double standard.
Part of the reason for the double standard rests in the reality that people value the school sports experience so much more than other parts of life, including other sports experiences. Because they want the opportunity to play, they resort to litigation in an attempt to create the right to play.
Another part of the reason school sports is challenged on an issue on which other programs get a free pass is that school sports has a centralized authority, close to home. State high school associations are readily accessible targets, easier both to find and to fight with than most other entities with age restrictions.
And, of course, part of the reason for the double standard is the proximity of interscholastic athletics to academics – the former extracurricular, the latter curricular – the former a privilege for most teenagers, the latter a right of all citizens to age 26.
The reasons school sports are attacked on this issue while other entities are not are reasons really complimentary to school sports: the program is popular, accessible and connected to education. None of these features of school sports, or its age limitation, should change.