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.
Adversity
January 25, 2012
It’s been said that adversity causes some people to break and others to break records.
Author Keith McFarland spent seven years studying the performance of 7,000 companies, after which he made this pronouncement: “The top performers had one thing in common. Each went through a period of pronounced difficulty – often serious enough to threaten the firm’s existence.”
McFarland continued in The Breakthrough Company: “Great companies, I discovered, arise not from the absence of difficulty but from its vortex,” its whirly mass.
The key during tough times, according to McFarland, is not to focus on survival, but instead to ask fundamental questions, to face facts that might have gone overlooked in more prosperous times, and to identify and integrate the new knowledge and insights that adversity can bring.
Schools and school sports, today in the vortex of adversity, may actually do more than merely survive our present difficulties if we too examine obstacles and opportunities previously overlooked, and then make positive use of the lessons that sometimes only adversity can bring.
A Scottish author of the 19th century with the optimistic name Samuel Smiles wrote: “The very greatest things – great thoughts, discoveries, inventions – have usually been nurtured in hardship, often pondered over in sorrow, and at length established with difficulty.”