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.
Long-Term Investment
January 25, 2012
Many homes have just removed the decorations from their holiday trees and removed the bare, brittle tree from their house. This has caused me to reflect on a drive last fall through many miles of tree farms, observing some trees ready for harvest but many more trees that were many years away from cutting.
During that drive I thought about the character of those who had planted the trees. This is not like many crops which are planted in spring and provide a return on the investment by fall. One who plants trees knows the harvest is many years of growth and pruning away. That return on investment could be a decade or two of toil down the road.
As I questioned how these farmers could wait so long, I began to marvel at the optimistic, patient spirit they must have. Their hope and persistence. Their assurance that the time and money invested now will be rewarded later.
This humbling internal dialogue caused me to think of dedicated teachers, coaches and administrators who, metaphorically, are planting some trees and pruning others each and every school year, knowing they may never personally see the results. But having confidence that, in time, there will be a return on the investment they and their communities have made in our young people.