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.
Common Good
November 23, 2011
During the first week of July in 1995, I read an editorial by Judith A. Ramaley, president of Portland State University in Oregon, that seems as appropriate for today’s events and public policy environment as it was then. Perhaps even more so. Ms. Ramaley wrote:
“I used to think that character is how you behave when no one is looking. For most of us that may still be true. For public figures, however, character is how you behave when everybody is looking . . .
“. . . Nearly a century ago when President Woodrow Wilson was still a college professor, he said: ‘A great nation is not led by a man who simply repeats the talk of the street corners or the opinions of the newspaper. A nation is led by a man who, rather, hearing those things, understands them better, unites them, puts them into common meaning; speaks not the rumors of the street but a new principle for a new age; a man for whom the voices of the nation . . . unite in a single meaning and reveal to him a single vision, so that he can speak what no man else knows, the common meaning of the common voice.’”
As our “modern” nation heads into the heart of yet another election season, with earlier and earlier primaries leaving little separation from the last acrimonious campaigns, it is this quality above all others that I’m seeking to find in the candidates for public office: the uncommon heart and mind to unite us for the common good.