Timeless Leadership Truths

The Origins and Applications of Business Strategy

Norton Paley

• Publisher: Productivity Press
• Year: 2019
• Print ISBN: 9780367321550
• eBook ISBN: 9781000134728
• Topic: Business
• Subtopic: Business General
• Index: Business

The origins of business strategy are found in military applications. Generals throughout history faced formidable challenges as they crafted plans to outmaneuver competing forces, acquire territory, and gain power. Similarly, business leaders also look to outmaneuver their rivals as they enter new markets against entrenched competitors, secure a strong market position, and expand their companies' influence. Although the destructive aspects of war are not present in business, there is a reasonable parallel, such as the bankruptcies of once-mighty companies, which resulted in layoffs of thousands of employees and the closings of numerous plants. Then there was the devastating economic impact and societal disruption that created demoralizing misery among large groups of individuals in once-flourishing areas worldwide.

The intent of the book is to improve managers' ability to think strategically. The further aim is to blend the timeless lessons of military strategy into business plans, with impact in grassroots engagement with customers, as well as the inevitable clashes with competitors. In addition, readers can access a body of knowledge that has endured in written form and practiced by successful leaders for centuries. As such, managers will hold a competitive edge in an evolving digital-age marketplace.

Origins

Part 1

Sun Tzu

Overview

B. H. Liddell Hart ^*

Sun Tzu’s essays on The Art of War form the earliest of known treatises on the subject but have never been surpassed in comprehensiveness and depth of understanding. They might well be termed the concentrated essence of wisdom on the conduct of war.

For over 2,500 years, Sun Tzu’s wisdom and clarity of thought have endured. Individuals from all walks of life have interpreted his famous 13 chapters and extracted fresh insights from his profound doctrines.

It is thought that Napoleon read the book when it was published in Paris in 1782. And it is likely that two great military theorists, Carl von Clausewitz and Antoine-Henri de Jomini, were familiar with Sun Tzu.

Sun Tzu’s inspiration carried into the twentieth century and influenced such military giants as British field marshal Bernard Montgomery, US generals Douglas MacArthur and George Patton, and German general Heinz Guderian. Mao Zedong and Fidel Castro also embraced Sun Tzu’s theories.

Worth noting, too, is how far afield Sun Tzu has reached from the military. In the movie Wall Street, the character Gordon Gekko says, “I bet on sure things. Read Sun Tzu, The Art of War. Every battle is won before it is ever fought.” Then, in the popular television series, The Sopranos, Tony Soprano remarked, “Been reading that book … The Art of War by Sun Tzu. A Chinese general wrote this thing 2,400 years ago, and most of it still applies today.”

Who was Sun Tzu?

He was born in a region of China known today as Huiming County, Shandong Province. However, there is no accurate record of Sun Tzu’s actual dates of birth and death. Scholars have conflicting theories about the authorship of the book—if it was written by one person or was a compilation of other authors’ writings.

The generally accepted view is that one individual wrote it, Sun Tzu. The “Tzu” in his name means “master,” or Master Sun, whereas his personal name is Sun Wu. In the famous 1910 translation of The Art of War, Lionel Giles stated that the work would have been written between 496 BCE and 494 BCE.

To this day, Sun Tzu’s The Art of War endures. His profound wisdom continues to survive meticulous analysis by scholars and practitioners. Translated into numerous languages worldwide, the book is incorporated into the curricula at universities and military academies. And his time‑tested ideas, concepts, and rules continue to flourish today in business books, magazines, and workshops.

The following is a sampling of Sun Tzu’s concepts from the following chapters:

There is no instance of a country having benefited from prolonged warfare.

Tactics are like unto water; for water in its natural course runs away from high places and hastens downward. So, in war, the way to avoid what is strong is to strike what is weak.

Rapidity is the essence of war; take advantage of the enemy’s unreadiness, make your way by unexpected routes and attack unguarded spots.

Know the enemy and know yourself, in a hundred battles you will never be in peril.

When you are ignorant of the enemy but know yourself, your chances of winning or losing are equal.

If ignorant of both your enemy and yourself, you are certain in every battle to be in peril.

All men can see the tactics by which I do battle, but none can see the strategy by which I win victory.

In all fighting, the direct method may be used for joining battle, but indirect methods will be needed to secure victory.

Notes

*. Sir B. H. Liddell Hart (1895–1970) was an English soldier, military historian, and author. He is best known for his concept of the indirect strategy, which he viewed as a valid strategy in other fields of endeavor, such as business and sports.

1

Prosperity, Survival, or Ruin

Sun Tzu

Performing in a competitive marketplace is a matter of vital importance to the organization; the province of prosperity; the road to survival or ruin. Study it thoroughly. ^*

Applications

Sun Tzu’s comment about “the road to survival or ruin” is relevant when viewed through the shocking decline of once majestic organizations, such as the 2018 bankruptcy of Sears. Consider, too, the demise of once vibrant communities and its economic toll on families and individuals’ careers.

And “study it thoroughly” takes on special meaning when a company is faced with any of the following types of market campaigns, where scarce resources are at risk:

• Campaigns to introduce a new product where on average 50% of new product launches fail. ^†
• Offensive campaigns to recover a former market position.
• Defensive campaigns to hold an existing market position and make it more defensible.
• Campaigns to expand into new markets against entrenched competitors.

Sun Tzu describes what must be thoroughly studied.

Evaluate five fundamental factors and make comparisons: morale, weather, terrain, command, and doctrine.

By morale I mean that which causes the staff to be in harmony with its leaders, so that they will accompany them without fear or feelings of insecurity.

One of the primary approaches to keep “staff … in harmony with its leaders” is through empowerment. This is especially so with management’s current emphasis on inclusion, participation, and collaboration. It is one of the most valuable and productive leadership strategies for the digital age.

The essential point: Within a technology-driven and volatile marketplace, relying on oneself to make rational decisions can be overwhelming and often counter-productive, whereas actively embracing empowerment as a primary requirement of leadership improves your chances of making accurate decisions.

When people are empowered with freedom of speech and thought, their minds tend to be flexible and inventive. “We are not very organized. It’s intentional, it allows us to always keep our mind open to new ideas, ready to jump on new trends and take new opportunities,” declared L’Oréal CEO Jean-Paul Agon. ^*

Otherwise, in a structured, top-down, command-and-control environment, freedom of expression is often stifled, and people’s minds become rigid, regimented, and unresponsive.

By weather I mean the interaction of natural forces; the effects of winter’s cold and summer’s heat and the conduct of campaigns according to the seasons.

This estimate focuses on the consequences of natural climate-related conditions. It influences how you manage your business within the variables of weather and logistics, such as seasonal outcomes of winter’s cold and summer’s heat.

IBM aids companies “according to the seasons” by providing retailers with weather data to guide business decisions for adjusting store merchandise based on forecasts over specific 48-hour periods.

Caterpillar utilizes predictive diagnostic tools to organize the enormous quantities of data spewing from sensors implanted in its equipment. In the “conduct of campaigns,” the data helps its customers detect maintenance issues. Result: downtime is minimized, efficiency improves, productivity incr...

Table of contents

• Cover
• Half-Title
• Title
• Copyright
• Dedication
• Contents
• About the Author
• Introduction
• Origins
• Applications
• APPENDIX Team Project Assessing Your Organization’s Competitiveness
• Index