The Art of Business: What I’ve Learned from Sun Tzu

Sun Tzu was an ancient Chinese military general who wrote the legendary tome entitled, “The Art of War” in 513 BC.  He was known as a strategist and tactician and his book had become somewhat of a Bible for business owners, executives and managers.  His teachings of war strategies have been utilized in business applications because of the similarities between business and war.  In business, our enemies are our competitors and our country is our company.  We may not have an army but we have employees that are led by managers, rather than commanders.  In business our terrain is the marketplace and our victory is success.

As with the Bible and Quran, the Art of War is a piece of literature that was passed down from generation-to-generation and translated from one language to another.  It’s virtually impossible to know how closely the version we know today resembles the original.  Furthermore, since we are extrapolating Sun Tzu’s teachings of wartime strategies and applying them to business tactics, one interpretation could be perceived differently than another.  Nevertheless, the fundamental principles that can be learned from the Art of War and applied to business are profoundly monolithic.

Sun Tzu explains that the Art of War is governed by 5 factors:

1. Moral Law
2. Heaven
3. Earth
4. Commander
5. Method and Discipline

In business, these factors can be considered as follows:

1. Policies and Procedures
2. The Economy
3. Industrial Challenges
4. Managers
5. Protocol and Managerial Hierarchy

He then goes on to say that generals who understand these factors will not fail.  In deliberations, when determining the military conditions of your army versus your enemy’s, compare them with the following:

1. Which sovereigns are most inspired with Moral Law?
2. Which generals have the most ability?
3. Who has the advantages derived from Heaven and Earth?
4. Which side is discipline most enforced?
5. Which army is stronger?
6. Which side are officers better trained?
7. Which army is more consistent in both reward and punishment?

In comparing your company with your competitors, these principles can be applicably considered as follows:

1. Which CEOs are most ethical?
2. Which managers are most qualified?
3. Who is most prepared to deal with variables?
4. Which company operate most efficiently?
5. Which company has more money?
6. Which employees are more skilled?
7. Which employees are better managed?

Sun Tzu felt that with the answers to these questions, he could predict the outcome of any war.  As business owners or managers, we can use this to become more successful than our competitors.

Attack by Stratagem is one of the fundamental principles mentioned in the Art of War.  Stratagem is the development of a strategy to deceive your enemy.  Sun Tzu further explains that the general who is unable to control his irritation will send his army into battle like swarming ants, resulting in many being slain as the town remains untaken.  Whereas, the skillful leader subdues the enemy without fighting.  He captures their cities without laying siege and overthrows their kingdom without lengthy operations in the field.  With his forces intact, he will dispute the mastery of the Empire, therefore triumph without losing any men.  This, he refers to as the method of attacking by stratagem.

It is easy to allow emotions such as our ego or temper to get in the way and cloud our vision.  Sun Tzu teaches us that this is ineffective and that sometimes it’s better to win the battle without fighting it at all.  This lesson can be interpreted in many ways and applied to so many different situations that we face in business on a daily basis.

Sun Tzu declares 5 essential factors for victory, or in our case, success:

1. Know when and when not to fight.
2. Know how to handle both superior and inferior forces.
3. An army must be animated by the same spirit throughout all its ranks.
4. Be prepared and wait to take the enemy unprepared.
5. Have military capacity without enemy interference.

History has taught us all that there are instances when engaging in battle is not the best course of action.  All companies need to know where they stand in their industry in terms of what more their competitors offer and what their company offers that its competitors don’t.  All staff needs to be equally inspired to work together collaboratively.  If one department feels as if they’re not getting the support they need from management, resentment begins to form.

One quote from the book that I always thought to be particularly profound was, “To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy itself.”  I needed to read that several times to allow it to really sink in and understand its true meaning.  My take on it is that we can play more of a role in putting our own company out of business than our competitors and if we watch close enough, we can pick up on our competitors’ weaknesses and use that information to make our company stronger or more desirable to our customers.

What the ancient people called a clever fighter is one who not only wins, but excels in winning with ease.  This has made me ponder that the most complex aspect of handling any difficult situation in business is by finding the simplicity in each situation that could make dealing with them easier.  This is how we avoid waste and learn how to operate our company more efficiently.  According to Sun Tzu, a skillful fighter puts himself into a position which makes defeat impossible and does not miss the opportunity to defeat the enemy.  In other words, people who succeed, know they’re going to succeed because they’ve mitigated their risks and made it impossible for them to fail.

Sun Tzu says, “The control of a large force is the same in principle as the control of a few men.  It is merely a question of dividing up their numbers.”  This is a lesson that is valuable to a company that is growing rapidly, creating the need to increase staff, expenses and manage additional departments.  He speaks a lot about energy and compares it to the tension of a crossbow.  Making a decision is like releasing the trigger.

“Compare the opposing army with your own so that you may know where strength is superabundant and where it is deficient.”  In business it’s easy to forget about our competitors when we’re so mindful of our own operation.  Sun Tzu reminds us that knowing how we compare with our competitors is vital to the success of our own company.  He says, “In war, the way is to avoid what is strong and to strike at what is weak.”  If your company offers products or services that your competitors don’t, that automatically allows you to gain a competitive edge over them.

“On the battlefield, the spoken word does not carry far enough: hence the institution of gongs and drums.  Nor can ordinary objects be seen clearly enough: hence the institution of banners and flags.”  Without even realizing it, Sun Tzu reminds us that we can’t just rely on our physical location and word of mouth to promote our business.  We must engage in an aggressive marketing campaign in order to maximize our chances for success.

There are 5 dangerous faults which may affect a general: 

1. Recklessness, which leads to destruction
2. Cowardice, which leads to capture
3. Bad temper, which can be provoked by insults
4. Delicacy of honor, which is sensitive to shame
5. Over-solicitude, which exposes him to worry and trouble

A reckless manager can destroy many things within a company.  He/she can destroy staff morale, relationships with clients, etc.  A manager who is a coward will be taken advantage of by their employees.  A manager who gives into their temper can easily have their judgement clouded.  A manager with questionable honor can be disloyal and an alarmist will blow anything out of proportion, even things that are not a threat.  Do any of your managers fit into one these categories?

“When soldiers (or employees) are too strong and their officers (or managers) too weak, the result is insubordination.  When the officers (managers) are too strong and the soldiers (employees) too weak, the result is collapse.  When officers (managers) are insubordinate and engage in battle on their own accord out of resentment, before the commander-in-chief (business owner) can determine he is in a position to fight, the result is ruin.”

“The general who advances without coveting fame and retreats without fearing disgrace, whose only thought is to protect his country and do good service for his sovereign is the jewel of the kingdom.”  If you have a manager who can independently make decisions based on what’s best for the company, not themselves, and does so without the effects of an overinflated ego, give them a raise.

“What enables a general to strike and conquer and achieve things beyond ordinary men is foreknowledge.”  In business, we call this due diligence.  Know your competitors, know your own operation and know your industry better than anyone else.  Doing so will contribute to your success.

Ashlar Consulting Corporation * 305-849-939 * www.AshlarConsultingCorp.com