Sun Tzu: The Art of War for Business - Essay Example

«Sun Tzu: The Art of War for Business» Sun Tzu claims that “the art of war is of vital importance to the state” (pt. 1). This essay asserts that his treatise is of vital importance to the business world too. Two of the five constant factors that govern the art of war include the Commander who stands for wisdom, sincerity, benevolence, courage and strictness; in the corporate world this would be the executive, administrate, or manager. The other constant factor is Method and Discipline by which are to be understood “the marshalling of the army in its proper subdivisions, the graduations of rank among the officers, the maintenance of roads by which supplies may reach the army, and the control of military expenditure” (pt. 10); in a business sense, this would refer to the constituents or the company of which the manager is in control. The Leader is recommended to be aware of these components all the time, so that he and they work as a team motivated for their joint objective(s), and, thereby, ensuring victory. Using examples from Woolworth Limited to exemplify points, this essay summarizes Sun Tzu's recommendations into ten principles, demonstrating how knowledge in and employment of these constructs can help an individual succeed in the world of business. Part II. The Principles: A Summary Sun Tzu’s stratagem for the cleverly wrought battle can be summarized in ten principles. They are: Learn to fight Show the way Do it right Know the facts Expect the worst Seize the day Burn the bridges Do it better Pull together Keep them guessing 1. Learn to fight Life is inevitably composed of competition and one should learn how to fight. However, fighting should only be done when one needs to do so, not when one is competing simply for the relish of it. Competition, Sun Tzu warns, should never be conducted for its own sake, since this is risky and costly. As in war, so too in the business market. And in all case, the acts of competing should be done rationally devoid of emotion. Poor emotional control is one of man’s most crippling limitations. It can warp his judgment, and make him commit errors both within and without his corporation. Loss of emotion can also be a damaging weapon in the hands of the competitor. 2. Show the way Leadership alone, says Sun Tzu, determines success. The leader should be self-disciplined and set for himself a set of rules that are good for himself and for his corporation. The motivation to abide by these principles should be internal rather than initiating from an external incentive. In short, The consummate leader cultivates the moral law, and strictly adheres to method and discipline; thus it is in his power to control success.” (pt. 16) To the reverse, five character flaws, according to Sun Tzu potentially accomplish failure. These are: (1) Recklessness, which leads to destruction; (2) Cowardice, which leads to capture; (3) a hasty temper, which can be provoked by insults; (4) a delicacy of honor which is sensitive to shame; (5) over-solicitude for his men, which exposes him to worry and trouble. (pt: 12) Their results both in war and in business – and, in fact, throughout life – are the same. An effective business man would be careful to hold them in check. Woolworth Limited also used Boone and Hollingsworth (Hollingsworth, 1990) as their guide in the precepts of creative planning. They analyzed their present resources to determine the capabilities of the organization, launched a forecast of potential threats and opportunities, set themselves goals and strategies for reaching their goals, and pointed out that planners must familiarize themselves more with future trends and predictions. 3. Do it right It is action that determines success, although actions need a carefully considered and thorough plan (preferably devised with one’s team) beforehand. However, in all cases action must succeed planning, for without it, an executive loses respect of his corporation, is bound to be ineffective, and does not gain his objectives. The plan, once formulated, should instantly be acted on according to its details. “You may advance and be absolutely irresistible, if you make for the enemy’s weak points; you may retire and be safe from pursuit if your movements are more rapid than those of the enemy.” ((Pt. 10) According to Sun Tzu, competitive advantage originates by creating favorable opportunities and then acting on those opportunities at the right time. “Seize the moment”: At the same time, however, patience is an essential element. We can make ourselves responsible for the strategy of the battle, but the advantageous opportunity must come from others, and for the others we have to practice the restraint and fortitude necessary to win. In other words, move when it is profitable and stop when it is not. 4. Know the facts When in a difficult situation, or before concluding on any major business decisions, ascertain that you know all the facts of the situation or potential outcome of your plan. In connection to business life, this applies in all cases: strategy planning, conflict moderating, administrative dealing and so forth. Information, or the lack of it, determines the outcome, and sometimes it is the overlooked seemingly insignificant point that may make all the difference. Congruent to this, is Sun Tzu’s observation: If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, of every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” (p.18). Sun Tzu observes that there are two aspects to information management: Firstly, you gather the information to formulate a decision, secondly you disseminate the information. The best information comes from immediate experience, although Sun Tzu advocates – which might be controversial for a modern business man – a form of intelligence operation in order to amass that information. (“Knowledge of the enemy’s disposition can only be obtained from other men”; and “Be subtle! Be subtle! And use your spies for every kind of business.” (pt. 18)). Either way, the contemporary executive is advised to be in touch with the regular happenings of his institution. Another advice is to challenge ‘folk wisdom’. Modern scientist per excellence, Sun Tzu warns that decisions should be implemented on pragmatic and tested realism. They should be weighed through rational decision making techniques and weighing of all possibilities, always knowing that an element of uncertainty is involved. In a similar sense, traditional forecasting, Woolworth Limited realized, must be merged with rational reasoning and gut, instinctive feeling (‘intuition’). Woolworth Limited ensured that it retained and maintained its system of internal and external communication so that all levels of employees shared an environment of trust and openness, and that all were fully aware of its needs and goals. There must be a variety of racial types in lines with the Equal rights law and present day preferences, and also a variety of personality types for the vibrancy and benefit of the organization. This diversity of personality types should be dispersed throughout the organization also represented on its planning teams – since these are attuned with the market and well aware of the diversity in market needs. 5. Expect the worst Never relax your guard. The competition is constantly trying to beat you. Always be adequately prepared. Never underestimate the competitor. Only attack and deal with him when you are certain you have the necessary resources to do so. It is the rule in warm, if our forces are ten to the enemy’s one, to surround him; if five to one, to attack him; if twice as numerous, to divide our army into two. If equally matched, we can offer battle; if slightly inferior in numbers, we can avoid the enemy; if quire unequal in every way, we can flee from him.” (pts. 8-9) Superior strategy and plentiful budget does not assure outcome. Rather it is the prudence and the tendency to closely observe the competitor and to focus on his weak spots. Attack those. The corporation, Woolworth Limited regularly assesses its organization’s creative climate based on the number of new ideas being generated and the percentage of new proposals being implemented is very much for its benefit. Indeed, perceiving Woolworth’s latest ventures (it has diverged far from its emphasis on food) (Moore, 2003), Woolworth seems to excel in creativity and flexibility. It is this very flexibility with its structure and image that, by playing with new approaches, will enable it to survive. Its originality is displayed in its originality of approaches to old problems and to new opportunities and this originality should be encouraged to continue. 6. Seize the day Speed is the most effective factor in competition. Simplicity is important too. Decide upon your strategy. Make it as simple as possible, both for your sake and for the sake of your constituents. Then when you have selected the most propitious moment – seize it. Simple methods are best since they are clear, effective and inexpensive. Others can be tried later, if they fail. ‘Seizing the day’ ensures that you have caught your competitor by surprise, thus edging him in a corner. Thus though we have heard of stupid haste in war, cleverness has never been associated with long delays.” (pt. 5) Complexity breeds overhead as well as confusing employees and wasting time. As Sun Tzu records, flowing water avoids the high ground and seeks the low ground (“Military tactics are like unto water; for water in its natural course runs away from high places and hastens downward” (pt. 29). Successful strategies, likewise, seek low terrain. 7. Burn the bridges Work together, make it a team effort, push your constituents forward and burn the bridges behind them. Be risky. Very much in the sense of modern day wisdom, and with the guts of a Nietzschean Superman, Sun Tzu advises warriors to place their troops in situations where they are told they are in danger. “Burning the bridges” behind them and awareness that their situation is one of shared danger – i.e. that they are in this together – will drive them to success. At the critical moment, the leader of an army acts like one who has climbed up a height and then kicks away the ladder behind him. He carries his men deep into hostile territory before he shows his hand. He burns his boats and breaks his cooking-pots; like a shepherd driving a flock of sheep, he drives his men this way and that, and no none know whither he is going. To master his host and bring it into danger: this may be termed the business of the general.” ((pts. 38-40) Motivation and commitment are the keys to leadership. People are motivated by profit. They also seek order. To pull employees through difficult periods, present them with a clear format of objectives, delineate the expected profits, and treat your people well. Success of the organization is built upon the individual motivation – consequently efforts, consequently success – of its members. 8. Do it better In war, only two types of tactics exist: expected and unexpected. Effective commanders- and business executives – combine both of these techniques according to the situation. Expected innovative techniques however give you the element of surprise and it is this that puts you in a better position than your competitor. Seek innovation. It can be the key to your success, since it keeps your competitor guessing and provides you with an appealing characteristic of innovation. Woolworth overcame its past difficulties and acquired its present prodigious profile by becoming more innovative and more creative and decentralizing (Hollingsworth, 1990).. Using a bottoms-up approach, creativity was sought from the lowest level of the hierarchy – the store manager, since it is the store manager that is most closely associated with the trends in the market. 9. Pull together. You need organization, training, and management as essentials for success. Organization and training should be clear, and expectations coherent so that your employees will understand and trust you. We can form a single united body, while the enemy must split up into fractions. Hence there will be a while pitted against separate parts of a while, which means that we shall be many to the enemy’s few.” (pt. 14) Training is necessary for forming an effective and unified organization that is motivated to work under you and clear of its direction. The cost/ benefit trade-off of effective training can be huge when combined with a motivating reward system and effective management. Effective – and interesting training that makes sense builds team loyalty. Sun Tzu informs that we cannot punish people until they feel loyalty to us: namely, until they consider themselves members of our group. Keep your employees satisfied and healthy, so that you obtain their energy and loyalty for important corporate matters. This – and innovative strategies - will give your business an edge. 10. Keep them guessing The best competitive strategies are formless, so subtle that neither your constituents nor your competitors are able to discern them. It will remain a mystery, compelling competitors to react only after they are surprised. All warfare is based on deception. Hence, when able to attack, we must seem unable: when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far; when far away, we must make him believe we are near… Attack him where he is unprepared, appear where you are not expected. These military devices, leading to victory, must not be divulged beforehand.” (pts: 18-25) Keep your strategies secret, and the opportunity is granted to he who has skill. Focus on your competitor’s weakness. Seize something that he desires or needs, move instinctively, rapidly, and without warning. Hit him in an indirect manner, covertly and ambiguously. Taken by surprise and forced to place his defenses all over, your competitor is driven in a weaker position than you, thereby giving you the advantage. Conclusion The art of war, maintains Sun Tzu, is “a matter of life and death, a road either to safety or to ruin. Hence it is a subject of inquiry which can on no account be neglected.” (pt. 2) How true! When applied to the field of corporate affairs, the same description applies. Sun Tzu’s strategies are remarkably relevant to the modern business man, and if followed with wisdom and consistence can only ensure success. Now the general is the bulwark of the State; if the bulwark is complete at all points, the State will be strong; if the bulwark is defective, the State will be weak.” (pt.11) Ditto with business. Bibliography Hollingsworth, T., 1990, ”Woolworth Corporation.: a case of creativity in action.” Review of Business, Retrieved on October 25, 2010 www.entrepreneur.com/tradejournals/article/9154912.html Moore, A., 5 March 2006. "Man of the Moment (Interview with Woolworths' boss Roger Corbett)". Business Sunday (Ninemsn). http://businesssunday.ninemsn.com.au/article.aspx?id=89566. Retrieved October 25, 2010 “Woolworth Limited” www.woolworthslimited.com.au. Retrieved October 25, 2010 "Woolworths online". 2010-06-11. http://www.homeshop.com.au/. Retrieved 2010-06-11.  "Woolworths Limited - Half Year Presentation HY10" (PDF). 2010-01-28. http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01041760. Retrieved October 25, 2010 Read More