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Mark McNeilly
Sun Tzu and the Art of Business

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Business Nugget 
by Robert Morris

In recent years, a great deal of nonsense has been published concerning similarities between the military battlefield and the business world. Authors frequently invoke military terms such as “attack”, “ambush”, “pre-emptive strike”, “blitzkrieg” (or “blitz”), “no man’s land”, “chain of command”, “firepower”, “guerrilla”, “kamikazi”, “overkill”, and “scorched-earth policy.” Amidst all the other books in which forced comparisons are made, Mark McNeilly has written Sun Tzu and the Art of Business (published by Oxford University Press). He includes in his book the original (and superb) translation of The Art of War by Samuel B. Griffith.

In McNeilly’s opinion, Sun Tzu was among the first (if not the first) to formulate “an holistic approach to strategy that was powerful yet succinctly communicated.” He focuses on six specific principles and examines each in light of situations in the contemporary business world to which they seem relevant. None of his analogies is forced. He allows his reader to determine the nature and extent of relevance of the six principles to the reader’s own circumstances. Here they are:

1. Win All Without Fighting (i.e. Capturing Your Market Without Destroying It)

2. Avoid Strength, Attack Weakness (Striking Where They Least Expect It)

3. Deception and Foreknowledge (Maximizing the Power of Market Information)

4. Speed and Preparation (Moving Swiftly to Overcome Your Competitors)

5. Shape Your Opponent (Employing Strategy to Master the Competition)

6. Character-Based Leadership (Providing Effective Leadership in Turbulent Times)

In Chapter 7, the final chapter, McNeilly shifts his attention to “Putting the Art of Business into Practice.” He explains how Sun Tzu’s ideas can help to prioritize markets and to determine competitive focus; how to exploit a competitor’s weakness; how to develop an action plan (“wargame”) which will confuse competitors; how to integrate initiatives so as to unbalance those competitors; how to prepare and then launch effective initiatives; and finally, how values-based leadership nourishes and sustains success while “starving” failure. Throughout Sun Tzu and the Art of Business, McNeilly quotes Sun Tzu when analyzing the successes and failures of various industries and individual companies. 

In Chapter 1, he asserts that “you should follow the philosophy of Go rather than chess” because in, the ancient game of Go, success is achieved by “capturing and holding the greatest amount of territory with the smallest investment of pieces” whereas, in chess, “the object is to destroy the opponent’s pieces in an effort to ‘take’ his King. In fact, the saying ‘checkmate’ is derived from the original Persian shah mat, meaning ‘the king is dead.’” 

In Chapter 6, McNeilly offers a wealth of information and insights with regard to “Providing Effective Leadership in Turbulent Times.” For example, the most effective leaders are those who:

  • Build character, not image
  • Lead by example with action, not words
  • Share others’ trials and failures, not just their successes
  • Motivate emotionally, not just materially
  • Assign clearly defined missions to all, avoiding overlap and confusion
  • Make strategy drive the organization, not the reverse
The most effective leaders are also those who have the skill to integrate the six principles, and, the determination and patience to implement strategies which they are informed by them. “If you have the right strategy but execute it poorly, your company will not be profitable. Similarly, if you execute a poor strategy with excellence, your company will also fail; it makes no sense to focus on shortening the manufacturing lead-time of a product for which there is no demand. You must have a creative, powerful strategy and carry it out with will, dispatch, and force.”

Time and again, McNeilly stresses (as does Sun Tzu) the absolute importance of personal character. Respect and trust are earned, not conferred by title or decree. It remains for leaders to formulate the correct strategies as well as those tactics needed to implement them. It remains for leaders to allocate resources only where they will achieve the greatest possible success at the lowest acceptable cost. Whether the competition is on a battlefield or in a marketplace, the six principles are appropriate to whatever strategy or strategies may be needed. Historically, the most successful armies and the most successful companies have shared much in common:

  • They were led by those who earned respect and trust
  • They shared a common “mission”...an ultimate objective
  • Prior to conflict, they accumulated a wealth of information (“intelligence”) about opponents
  • Everyone involved received rigorous and comprehensive training
  • They controlled when and where contact with opponent would be made
  • They applied force wherever and whenever it would have the greatest impact
  • They made prudent use of all resources while (at all times) minimizing waste
  • They took full advantage of every opportunity to confuse their opponents
  • They were thoroughly prepared to make immediate adjustments of strategies and/or tactics whenever necessary
  • They were constantly seeking areas in which to improve
In Sun Tzu and the Art of Business, McNeilly thus provides a brilliant analysis of six principles (first set to writing almost 2,500 years ago) which, he correctly suggests, will enable all manner of organizations to formulate appropriate strategies for the New Millennium. This is a solid, eloquent, sharply focused book. Unlike so many other authors who force analogies between war and business, McNeilly respects the basic (indeed obvious) differences between them while explaining how certain principles are relevant to both.

Order Sun Tzu and the Art of Business here

Find the full list of Robert Morris's Business Nuggets featured by Eastbook.com here.



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