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.
Continuing Education
February 17, 2012
Eight MHSAA staff devoted an entire Friday late last month to discussions with a visitor from another statewide high school association. The focus was on what that association was doing, how and why in the areas of electronic media, marketing, merchandising and branding and the dozens of sub-topics these categories spawned.
Two weeks earlier, five MHSAA staff joined staff of ten other similar associations for two days of meetings in Chicago. There was sharing on topics ranging from student leadership programs to information technology.
A few days before that, I joined my counterparts from 45 other states for discussions of a variety of topics important to school sports in general or the administration of our serving organizations. I amassed 13 pages of notes from comments made by speakers and colleagues over three days.
Meanwhile, the MHSAA office hosted 12 MHSAA committee meetings during January. Each committee focused on a particular sport, or on a specific topic that affects all sports. Their recommendations will be vetted this spring and considered by the Representative Council by May.
Ideally, every month presents opportunities for us to learn, but last month provided a particularly broad and deep curriculum.