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.
Only in Football
November 22, 2011
There was a time when even undefeated teams might not qualify for the MHSAA Football Playoffs. Eventually, the playoffs were expanded to eight divisions, each of 32 teams, assuring any team which could manage six wins was an automatic qualifier, and also that many teams with only five wins would qualify (20 five-win teams in 2011).
It was anticipated that this would allow good teams to schedule like-size, nearby opponents without fear of a loss or two. But some observers now complain that mediocre teams won’t schedule certain nearby opponents because they fear a fourth loss that could keep them from certain postseason play. Long-standing league affiliations are being stressed by this mindset.
There are very smart, very sincere people who want the MHSAA to once again expand the playoffs to, they hope, eliminate these problems; but the MHSAA has already done its part to accommodate football’s “uniqueness.” For example. . .
- It is only in football that MHSAA tournaments have more than four classes and divisions. In football there are now eight divisions for the 11-player game, plus one division for the 8-player game.
- It is only in football that MHSAA tournaments are longer than three weeks. In football, it takes five weeks to crown champions in those eight divisions for the 11-player game.
- It is only in football where first-round tournament matchups can result in round-trip travel of 600, 700, 800 or more miles.
Proposals that would create even more extravagance – more 11-player divisions, more weeks of playoffs and more long trips – all because schools are reluctant to schedule nearby opponents during the regular season – are all proposals that should be sacked.