Lecture 2 - Detailed Assessment and Planning.may2013 (1)

UBMM1011 Sun Zi’s Art of War and Business Strategies

13 Chapters of Sun Zi

1. Detailed Assessment and Planning (始计 ) 2. Waging War (作战 ) 3. Strategic Attack (谋攻 ) 4. Disposition of the Army (军行 ) 5. Forces (兵势 ) 6. Weaknesses and Strengths (虚实 ) 7. Military Maneuvers (军争 ) 8. Variations and Adaptability (九变 ) 9. Movement and Development of Troops (行军 ) 10. Terrain (地形 ) 11. The Nine Battlegrounds (九地 ) 12. Attacking with Fire (火攻 ) 13. Intelligence and Espionage (用间 )

1.1The conduct of war is a matter of vital importance to the nation.

1.2 It determines the survival or death of the country.

1.3 It is a matter of life and death (of the people and their ruler).

1.5 It must be studied and examined thoroughly.

Chapter 1 Detailed Assessment and Planning (始计 )

Chapter outline Thorough analysis before war 5 factors and 7 dimensions War is about deception Business application:

Importance and elements of planning

5 Factors

These 5 factors are:1) Moral influence2) The weather3) Terrain4) Generalship5) Doctrine and law.

Every general must know these FIVE factors.

Those who can master them will win. Those who cannot master them will not win.

5 Factors: (1) Moral Influence

1. Moral influences: Moral influences refers to measures and policies that

align the people with the ruler so as to be in complete agreement and harmony with each other.

In this way, the people will be prepared to co-exist with as well as die for the sovereign without and fear of dangers.

Business: Political Leadership A capable government will provide political stability and

hence attract foreign investments and stimulate economic growth, while a corrupt government will only sow the seeds of economic decay.

5 Factors: (2) The Weather

2. The weather: The weather refers to the contrasting changes of night and

day, the coldness of winter and the heat of summer, and seasonal changes – affect the weaponry and strategies to be deployed

Business: External factors (General environment) Business cycles such as recessions, growth, stagnation, inflation. Government policies, regulations, and incentives The cultural and social norms The technology New market institutions and systems Other general economic and social factors such as demographic,

consumer behaviour, institutional structures.

5 Factors: (3) Terrain

3. Terrain: Terrain refers to whether the route to be taken is long or short,

whether the ground is treacherous or safe, wide or narrow with regard to ease of movement, and whether the ground will determine the death or survival (of the army).

Business: Physical or infrastructural factors Firm’s location and position in marketplace will affect how it can

compete, as it may offer certain advantages or disadvantages. Ex:

once firm’s location is fixed, it dictates the nature of its competition, its relative market position, and its access to inputs such as raw materials, labour, capital, infrastructures and etc.

If one needs to tap cheap labor, one should move operations to a developing country. The mass migration of Taiwan's sunset industries to mainland China exemplifies this.

5 Factors: (4) Generalship

4. Generalship: Generalship of a commander refers to his qualities of wisdom,

trustworthiness, benevolence, courage and discipline.

Business: Corporate Leadership In business, the CEO plays and important part in ensuring the

success and prosperity of the firm. Leader must have:

Wisdom Trustworthiness (Sincerity) Benevolence Courage Discipline (Strictness)

5 Factors: (5) Doctrine and Law

5. Doctrine and law: Doctrine and law refer to organisation and control, management

systems and procedures, and the command and control structure for the deployment of resources.

Business: Corporate Structure and Organisation Is reflected by the way it is structured and organised. This aspect includes effectives policies, programs, operating

procedures, channels of communication, lines of authority, and responsibility.

These elements reflect the corporate culture or philosophy.

The 7 Dimensions

1.17 Thus in planning, there are (SEVEN) dimensions which a general must analyse and compare with those of the enemy so as to understand the changing conditions and situations during war and assess the chances of victory.

The 7 Dimensions

1.18 Which ruler has greater moral influence?1.19 Which side of general is more able and has greater abilities

and skills?1.20 Which side (army) is able to better exploit the weather and

terrain?1.21 Which side (army) is able to execute and implement law

and order more effectively?1.22 Which side (army) has more and stronger troops?1.23 Which side (army) has better trained officers and men?1.24 Which side (army) is more enlightened in the administration

of rewards and punishments?

“From these (seven) dimensions, I will be able to diagnose and predict victory and defeat.” ~Sun Zi (1.25)

7 D + 5 F = 8 Factors

These SEVEN dimensions contain the FIVE factors. Thus the five factors and seven dimensions may be re-classified into EIGHT factors for consideration in the planning for war.

The 8 factors of strategic planning in war:

Sun Zi Management application

1. Moral influence Political leadership

2. Generalship Corporate leadership

3. Weather External factor

4. Terrain Physical or infrastructural factors

5. Doctrine or law Corporate structure & organisation

6. Strength of army Size of the company,Competitive edges

7. Training Human resource development

8. Rewards and punishment Discipline & Motivational factors

Addition to the above rules…

1.27 The general who does not adopt my strategies and plans will be defeated when he is deployed (for battle); he should be removed.

The general who adopts my strategies and plans will win when he is deployed (for battle); he should be retained.

1.28 Besides adopting the effective proposed plans and strategies, the general must create and take advantage of situations that are beyond the normal rules of military engagement.

1.29 Creating situations demands that one (general) must act advantageously so as to control the balance of power.

Deception as a tool to create advantage

1.30 All warfare is based on the principle of deception

Aims – gain advantage of oneself

through Creativity and Strategies and other means

Summary

Detailed Assessment and Planning explores the FIVE key elements that define a successful outcome (moral influence, the weather, terrain, generalship, doctrine and law).

By thinking, assessing and comparing these points you can calculate a victory and deviation from them will ensure failure.

1.51 By observing how planning is done, I can predict victory and defeat

BUSINESS APPLICATION

How to Relate Sun Zi With Business?

80% of small business go out of business within their 2 years. WHY?

Sun Zi is the template to explain (teach/guide) how business can survive and prosper from the battles of the marketplace.

Success goes not to the strongest or most aggressive but to those who best understand their situation and what their alternatives really are.

Detailed Planning

The conduct of war is a matter of

vital importance to the nation.

It must be studied and examined thoroughly.

Strategic analysis is not the same with traditional planning. Planning deals with internal organizational needs. Strategic analysis is about understanding how to survive in

dynamic and competitive environment. Strategy focuses on external environment needs.

Detailed Planning

Strategic Plan – the action steps by which an organisation intents to attain strategic goals

Strategic goals – broad statement of where the organisation want to be in future

Develop a clear vision and mission statement.

Tactical Plan - define what major departments and organizational subunits will do to implement the organization’s strategic plan.

Detailed Planning

Operational plans - developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.

Human Resource Department Training - Managers are flexible enough to respond with

the best approach for the situation. Employ capable personnel. Building a positive organisational culture Introduce bonus scheme. Set up company rules for employees to comply. Clearly state all the job description for each post.

BUSINESS TOOLS FOR DETAILED ASSESSMENT

1) SWOT Analysis2) Porter’s Five Forces Analysis

    Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. ~ Sun Zi

~ THE END ~

Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things.

~Miyamoto Musashi 1584-1645, Legendary Japanese swordsman