Comparing: First Three Forces

The Art of War 10.2:10-16

This post continues our project explaining each stanza of Sun Tzu’s work. The English translation and Chinese transliterations are from my award-winning book, The Art of War and The Ancient Chinese Revealed.

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This article discusses the third, fourth, and fifth stanzas of the second section of Chapter 10 of The Art of War. This chapter’s general topic is the six types of terrain on which we compete. These three stanzas focus on the first three flaws in organizations that arise from these leadership flaws.

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The flaws discussed in these stanzas are all organizational problems. Organizations require three types of skills: leadership, management, and productivity. All of these components must contribute to the organization’s strength. All organizational flaws flow from bad decisions in these areas.

Leadership is different than management. Leadership picks the direction of an organization, while management deals with the day-to-day problems of moving in that direction. Productivity includes the skills needed to satisfy customers with services or products. Leadership is concerned with the big picture. Management is concerned with local obstacles and issues such as money management. Productivity deals with the day-to-day work of providing the value to customers that wins rewards. Of course, in small businesses, the entrepreneur must combine all these skills. When we are entrepreneurs, we must realize which categories of problems that we are dealing with. Are they long-term strategic issues dealing with positioning? Or are they local, temporary problems dealing with making immediate moves? Or are they solving problems with addressing customers needs?

Wrong Positioning

<Husband> <force> <equal>
One general can command a force equal to the enemy.

The method of practical strategy is comparison. There can be many differences among different competitive forces. The way we understand their key differences is to compare forces that are equal in most respects. The apparent similarities between two groups of competitors can lull us into thinking that the two groups have an equal chance of winning. Assuming this is a mistake.

<By> <means> <of> <one> <strike> <ten>
Still his enemy outflanks him.

What matters in competition is not the size or other characteristics of the competitive forces involved. It is their positioning on the competitive terrain. Their position determines which and how much of their force they can bring to bear upon a specific competitive challenge at a specific time. Two organizations may seem well matched in various ways, but this doesn’t mean that their forces can be used in similar ways. This depends upon the ground they control. It is what is already in customers’ minds that shape their decisions.

A high-tech company and a consumer products company may be equally well known and have similar financial power, but which is positioned to bring out a new high-tech product and which is positioned to bring out a new consumer product? Asking the question in this way answers it. Organizations must stick to their own skill sets. However, in the coming years, many companies will bring out AI products because AI seems to open new competitive battlegrounds. Most of these moves will fail because these organizations are not properly positioned to utilize AI.

<Say> <move>
This means that his army can be outmaneuvered.

Just because an organization is excited by a new competitive terrain doesn’t mean that he should have the organization move into it. Good leaders understand that choosing their opportunities depends upon their current position not how exciting the new terrain might be.

When Weak Management Leads

<Officers> <weak> <soldiers> <strong>
Another can have strong soldiers managed by weak officers.

New entrepreneurs often lack both leadership and management skills. Instead they have only the skills of good workers. Unfortunately, great bakers cannot necessarily run a good bakery. Great chefs cannot necessarily run good restaurants. Being skilled in doing the work, does not automatically grant us skills in either leadership or management. An organization with poor management and skilled workers can find some success. However, over time, firm management will eventually be needed.

<Say> <relax>
This means that his army is too lax.

When organization decisions are made by weak managers, they eventually fail. They must be made because the organization’s position demands them. Otherwise, they are run too sloppily. This is especially dangerous on entangling terrains (see this article on the six terrains), because the organization cannot return to their position if an advance out of it fails. Good decisions must be made about when to move into new areas and when to stay put.

On entangling ground, the organization must only make successful moves forward. They must stick to their current positions until any move forward is certain to succeed. This requires good discipline that comes from good management, not relaxed managers.

Poorly Managed Workers

<Soldiers> <strong> <officers> <weak>
Another has strong officers but weak soldiers.

When strong workers lead an organization, weak management will follow their lead. This can lead to an organization of superior service. However, over time, decisions cannot be made for the benefit of the workers. The skills of the workers must serve the needs of the customers. Only customers can make positions pay.

When skilled workers serve dedicated customers, organizations can find themselves in supporting positions (see the above article on different terrains) they are on slippery ground. Bad decisions can lead to a slide into worse positions and that surround these peak positions. When organizations start making decisions for the organization or its workers instead of the benefit of customers, they are setting out on a slippery slope.

<Say> <sink>
This means that his army will fall down.

Organizations that take supporting positions for granted will fall down. Such organizations hold a superior position because their work is supported by a mountain of customers. Weak managers who start making decisions for their own benefit instead of for the benefit of customers are surrendering what holds them in that superior position.