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.
Pulling Up the Welcome Mat?
September 8, 2011
Michigan’s welcoming foreign exchange program network and the MHSAA’s accommodating rules have caused there to be more placements in Michigan schools than any other state during each of the last two school years. But this open environment for foreign exchange students may change if the MHSAA is unsuccessful in defending its current rules through judicial proceedings in Michigan courts.
Presently under MHSAA rules, international transfer students are treated identically to domestic transfer students: unless the student meets one of 15 stated exceptions, that student is ineligible for approximately one semester and then becomes eligible insofar as the transfer regulation is concerned until that student’s high school graduation.
If, however, this student is a foreign exchange student placed in an MHSAA member school through a program listed by the Council on Standards for International Educational Travel, that student is permitted immediate eligibility and that student’s eligibility is limited to one academic year. This special exception for bona fide foreign exchange students is intended to maximize the benefits of their academic exchange year.
The current court challenge is to the absolute limit of one year of athletic eligibility for foreign exchange students. If the MHSAA is unsuccessful in preserving that one-year limit, schools may be forced to treat foreign exchange students as all other international transfer students who are ineligible for their first semester and thereafter eligible until graduation.
That solution may seem simple, but it would reduce the value of the academic exchange experience for bona fide foreign exchange students, and that would certainly drop Michigan from the top spot in the nation for foreign exchange student placements.