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.

Classification Comparisons

January 27, 2012

One of the ways statewide high school organizations evaluate their operations is to compare their policies and  procedures with similar organizations.  We do so cautiously, however, because there are so many variables – like population and number of schools, as well as the size, shape and location of the state.

We find that the most useful comparisons are with states of the upper Midwest and Great Plains and, even more so, with the statewide organizations of that region with a number of schools closest to our approximately 765 member high schools in Michigan.

By these criteria, Illinois, with about 780 high schools, and Ohio, with about 820 high schools, are most valuable to observe, while neighbors like Indiana and Wisconsin with about 400 and 500 high schools, respectively, are less valid measures for our work here.

Recently, to help the MHSAA Classification Committee have a larger view of tournament classification systems, we provided the Volleyball, Football and Basketball Tournament classifications of Illinois and Ohio, as well as our own:

  • All three states have four classifications in both volleyball and basketball, and only Ohio equalizes the number of schools in each class/division (as Michigan does in all sports except volleyball and basketball).
  • The enrollment ranges between the largest and smallest schools in the classification for the largest schools and the classification for the smallest schools (Classes A and D in Michigan) are much smaller in Michigan than in either Illinois or Ohio in volleyball and basketball.
  • In football, Ohio’s playoffs accommodate 192 football schools in six divisions determined prior to the regular season, while both Illinois and Michigan’s 11-player playoffs accommodate 256 schools in eight divisions determined at the end of the regular season.