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.
Our Times
November 11, 2011
It is in fashion to say that schools (and also school sports) are operating in a time of unprecedented austerity. This is not true. Not even close.
While it may be true that recent times in Michigan have seen a deeper and longer recession than most people have lived through before, it is not true that these are the worst times ever for school sports.
Imagine the austerity, and imagine yourself administering school sports during the Great Depression when unemployment was three times today’s rate. Or during World War II when gasoline was rationed and MHSAA tournaments were cancelled. Now those were tough times!
What may make us think at this moment that these current times are the worst times or are unique times is that these are our times, and we don’t yet see light shining at the end of the tunnel through which we’re traveling.
Because it affects us now and isn’t something we’re reading about in history, we tend to believe these times are somehow much worse and that today’s problems are somehow of such a different type that our programs are at greater risk than ever before.
It is possible, of course, that our reaction to these times will be unique and will make these times the worst ever. In other words, it’s not the troubled times per se, but our reaction to them that might set these times apart from all others.
It is possible that we will chop and change school sports so much that we never get the program back on the course of truly school-sponsored, student-centered educational athletics – a brand of sports unique in the world.