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.
Shared Leadership
February 3, 2012
My introduction to high school athletic associations began when I was eight years old, when my father became the chief executive of the Wisconsin Interscholastic Athletic Association. I learned about the work around the dinner table, by tagging along to Dad’s office, and by attending tournaments or accompanying him to banquets where he spoke.
My understanding of high school athletic associations broadened and deepened during the nearly eight years I served on the staff of the National Federation of State High School Associations.
So, even before I began my tenure as the MHSAA’s executive director, the essence of the work was in my bones.
In my father’s time and during my early years here in Michigan, the leadership model of a high school athletic association office was top down. The chief executive generated or personally reviewed every piece of correspondence, and staff referred every important decision to the boss.
That leadership model is no longer practical, or even possible. Too much is happening on so many different fronts for the chief executive-oriented model to do anything other than slow progress and frustrate people (both within and outside the office).
For today and the foreseeable future, the leadership model must be flat and diversified. The chief executive must allow staff to gain expertise in a growing array of complicated topics and empower staff to execute freely. It is impossible for a single person to gain the knowledge or have the time to lead a progressive, service-oriented high school athletic association; and I’m blessed to have had an experienced and passionate MHSAA staff to share the leadership opportunities and responsibilities.