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.
Don’t Look Back
November 23, 2011
In August of 1986, at the end of the one week of overlap between the previous MHSAA executive director, Vern Norris, and the start of my tenure, I found an envelope on my desk from Mr. Norris that read: “No words of advice. Just make your decisions and don’t look back.” That’s Lesson No. 5 of six in this series of blogs.
In our work, time is of the essence. We don’t have the luxury of long deliberations. The next game may be today; the next round of the tournament tomorrow.
In our work, staff is limited. We don’t have subpoena power. We have few staff spread thinly over many responsibilities.
In our work, because it’s in a competitive arena, people are sometimes disingenuous. Some have personal agendas, impure motives sometimes. They care who wins and loses; we don’t.
And most people have miserable memories. I’m skeptical that people recall well the details of events; and people are even worse when recalling details of conversations.
So, in our work, we make one more call and then, with good intentions and reliance on rules, we get on with the decision and try not to look back.
It’s hard to do, but a good deal healthier if we can.