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.
Urgency
November 8, 2011
I still have in my files and in my mind Joe Klein’s Newsweek editorial of Sept. 21, 1992, that took Bill Clinton to task for his “small themes” during the closing months of his campaign for the U.S. presidency.
Never one to be shy in his bully pulpit at Newsweek (or in his then anonymously published novel Primary Colors based on the 1992 Democratic presidential primary), Klein wrote that Clinton’s late campaign efforts were “rhetorically flaccid, intellectually unadventurous, morally undemanding.”
In response, Clinton’s campaign strategist, James Carville, resorted to a sports metaphor: “The way to the goal line is to keep running off tackle. Four yards and a cloud of dust.”
This “take no chances, do no harm, run out the clock” spirit and strategy that so infuriated Klein will not be seen at the MHSAA. Expectations and efforts will be in continuous crescendo no matter how close the goal line gets. In fact, as it is with any good football team in the “red zone,” the closer the goal line looms, the greater the sense of urgency there will be.
There is no greater proof at this moment to our most inner circle of constituents – high school athletics directors – than the MHSAA’s work with ArbiterSports to become the first state high school association in America to develop, and to deliver at least initially at no cost to all member high schools, a comprehensive suite of electronic tools for athletic department administration. This is a responsibility, and risk, that could have been left to others; but we’re being motivated by undertaking the task here and now – first in the nation – so that the product is tailor-made for high school sports, Michigan’s way.