Modern Day Management and the teachings of San Tzu

I first heard about the Art of War in 2002 during the football World Cup when the manager of Brazil (Luiz Felipe Scolari) made the whole Brazil squad read the book. The squad went on to win the World Cup. American football coach Bill Belichick, who is one of the greatest coaches in the history of the game with a record six Super bowl wins, is known to have used the text to gain insights when preparing for games.

It is clear that the Art of War has been used in many areas outside of the military with a lot of text being about fighting battles without actually having to battle. It explains how to out manoeuvre an opponent so that a physical battle is not actually needed. It is a book that I have related to more since working. It in particular has proven to help entrepreneurs and executives in relation to helping them succeed in competitive business situations. It is the one of my first books that I read out of enjoyment and it helped start my path into reading outside of what is required in either education or working life. Sun Tzu’s Art of War was written between 771 to 476 BC but many leadership lessons can still be learnt as it is relevant today as ever “A leader leads by example not by force” Social psychologist Betram Raven in the 1950s and 1960s began researching on power. Betram confirmed what many had expected that people are likely to complete tasks from a person they respect or admire. Much of Sun Tzu’s writings has been criticised especially in relation to his moral stance on many things, but what is evident is his belief that you can force or pay people to do tasks but when they believe in their leader the quality of work will always be higher. Many leaders crave their people to have passion, loyalty and commitment but the leader must demonstrate those qualities first for the best results. As Sun Tzu states that simply pushing people in a direction without going through the trenches with them leads to an increased likelihood of defeat. This is important as ever in the current world where the use of force and authoritative approaches are proving to be unsuccessful with the rising millennial working population.

“The quality of decision is like the well-timed swoop of a falcon which enables it to strike and destroy its victim.” Whilst having a strategy in place is key, when engaging and implementing, timing is essential. Any plan is only effective when used at the right time in the right situation. By having this understanding of timing, you will not hesitate when you are needed to execute but at the same time not be rushed. An example of this is in marketing as basic manuals will tell that is important to understand what is going in a market before actually getting involved in it. Being like a falcon means biding your time till an opportunity arises as you rarely will get another chance. “ Great results, can be achieved with small forces.”

What is Leadership? Most of us will agree that it is a quality or set of behaviours that engenders sufficient trust and respect as to have others follow someone. Can you point to the elements that contribute to leadership? In The Art of War, Sun Tzu characterised leadership as a mix of five traits: Intelligence, Credibility, Humaneness, Courage, and Discipline. Every organisation is characterised by processes and culture that influence the conduct of business. Sun Tzu referred to this as the Tao, or way. The Tao impacts, and is impacted by, personnel at all levels. The leadership, however, plays a unique role in the organisation – leaders are entrusted to rally support for, and implement, a strategy. Intelligence – If leaders are to succeed, their competence must permeate every aspect of their work. Their technical proficiency must conform to or exceed expectations. They must understand the needs and challenges of their colleagues. They must also understand the position of the organisation in relation to their competitors. Leaders must take care in how their intelligence is perceived. Boastful shows of intelligence may be perceived as arrogance.

Credibility – Credibility emerges from a reputation of trustworthiness and competence. A leader must demonstrate his ability to employ his experience and knowledge to address a challenge relevant to the company. “The leader must first understand the priorities and values embodied in the Tao,” said Sun Tzu. Armed with this knowledge, a leader’s time and energy can be focused for greater value.

Humaneness – Leaders must demonstrate respect for those with whom they interact. This applies to subordinates, peers, and competitors. The security implications of this trait are significant. Information security managers who treat their reports with consideration and respect garner more cooperation. These leaders recognise the critical, enabling role their reports play.

Given the structure of most organisations, humaneness must be exercised between the leaders. Information security managers must balance the needs of many stakeholders against the security mandates of the company. They employ communication strategies that not only recognise the stakeholder visions but emphasise the common mission of the organization.

Humaneness must also be applied to the perception of organizational challenges. Leaders must shift to viewing individuals or teams as solution enablers. I have encountered the political fallout created by adversarial-minded security consultants. These individuals blamed the stakeholders for the control deficiencies they discovered and set a tone of mistrust that permeated their relationship. The resulting lack of confidence in security consultants was a significant challenge to overcome. Key to my evangelizing efforts was to empower the stakeholders in addressing the security gaps. Courage – Leaders must project decisiveness and courage in the face of challenges. The credibility of individuals who vacillate under pressure suffers. Consequently, their judgment is questioned by both subordinates and peers. Courage enables a leader to recognise the opportunities inherent in all risks. The confidence projected by a courageous leader lends credibility to his actions and decisions. This trait allows the leader to “mobilise his team to take advantage of opportunities,” said Sun Tzu. It also enables the leader to guide organizational adaptations to a changing environment.

Here are some key business strategy principles from The Art of War that can help you as a business owner to achieve great success in business. There are numerous examples of small businesses gaining a significant competitive advantage using these strategies. A common question regarding the Art of War and competitive strategy is “How did you apply the art of war in your business?” We will discuss numerous ideas that will serve to answer this question. Be proactive, not reactive. In order to succeed, you need to be proactive, not reactive. Plan and take action rather than waiting for things to happen. As Sun Tzu says, “He will win who knows when to fight and when not to fight.”

Know your enemy and know yourself. In order to gain victory, you need to understand them as well as self understanding. Sun Tzu says, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” Deception can be a powerful tool in battle. You can use it to mislead your opponents or make them overconfident. Sun Tzu says, “All warfare is based on deception.”

As a business owner, you need to keep your eyes on the prize and don’t get distracted by side issues. Stay focused on what is important and don’t get bogged down in details. Sun Tzu says, “The general who wins a battle makes many calculations in his temple before the battle is fought. The general who loses a battle makes but few calculations beforehand. “Be prepared for anything: As a business leader, you need to be prepared for any situation that might arise. Sun Tzu says, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.

Sun Tzu said that the acme of military strategy is to win without fighting. The blue ocean business strategy is a business approach that seeks to create uncontested market space and make the competition irrelevant. It can be used in any industry, and it asserts that there are opportunities for innovation and growth that can be pursued without resorting to head-to-head competition.

When done correctly, the blue ocean strategy can cause dramatic increases in market share and profitability. No business has too many resources. You must conserve your power and resources to use them in a focused way to win important battles.

The writer is MD and CEO of Community Bank. He can be contacted at [email protected]