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© Center For Advantage - 2005
How to Use the Art of War: Sun Tzu Strategy Card Deck for Business Planning
Robert CantrellCenter For [email protected] (703) 379-9429
© Center For Advantage - 2005
Contents
Innovation Planner Description Art of War: Sun Tzu Strategy Card Deck Description Basic Business Planning
1. Identify the Problem2. Create a Cause and Effects Net3. Initial Problem Solving Effort4. Expanding the Solution
Center of Gravity Decision Cycle Games Additional Resources
© Center For Advantage - 2005
Art of War: Sun Tzu Strategy Card Deck Description
The Art of War: Sun Tzu Strategy Card Deck DescriptionCard Types
© Center For Advantage - 2005
The Art of War: Sun Tzu Strategy Card Deck Description The Art of War: Sun Tzu
Strategy Card Deck is a 54 card set of competitive strategies that helps users make better decisions faster by considering all aspects of their power to succeed
© Center For Advantage - 2005
The Art of War: Sun Tzu Strategy Card Deck Description It is based on Sun Tzu’ Art
of War and is derived from the analysis of strategic masterminds to include Sun Tzu, Lao Tzu, Musashi, Boyd, Kasporov, Lawrence, the unknown author of the classic Chinese strategies, and the concepts behind the classic strategy games of Chess, Go, and Poker.
© Center For Advantage - 2005
Art of War: Sun Tzu Strategy Card Deck - Applicability to the Military The Art of War: Sun
Tzu Strategy Card Deck is useful in business for: Strategy education Threat analysis Business planning for
competitive strategy – key topic of this brief
© Center For Advantage - 2005
Specifics on Business Planning Art of War cards in particular deal with the type of
business planning that goes on behind closed doors to allow you to win in a competitive marketplace
Your goal is to legally and ethically create an “unfair” advantage over your competition
© Center For Advantage - 2005
Card Types There are 4 card themes in the Art of War: Sun Tzu
Strategy Card Deck Elimination – All spades involve eliminating something. That
something may be an adversary, an option, an objective, time, etc. You remove something from the contest.
Isolation – All diamonds involve isolating something. This something may be an adversary, an option, an objective, time, etc. You separate something from something else.
Preparation of the Field of Contest – All clubs involve shaping the field of contest. You create the conditions, such as confusion on the part of your adversary, that better allow you to win.
Preparation of Self – All hearts involve shaping yourself. You set your disposition to that best suited to reach your goal and present your adversary with appearances that cause him to act against his best interests.
© Center For Advantage - 2005
Underlying Principle
EIIN Eliminate Isolate Integrate Negate
At the core of all competitive strategy, you are trying to win markets while effecting at least one of these EIIN on your competitor
To win any conflict, you have to be able to effect at least one of these EIIN on your competitor
© Center For Advantage - 2005
Definitions
Elimination means your competitor has no effective presence in the market
Isolation means your competitor has no effective capacity to go beyond where he already has
Integration means you or your competitor are effectively brought together in a mutually supportive way
Negation means it no longer matters what your competitor does because he cannot hurt you
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Basic Business Planning
Basic Planning Steps Steps 1 to 4
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Incorporate All Aspects of Power The Art of War cards provides a comprehensive tool
to assess, decide, and act on objectives with all physical, psychological, and moral aspects of innovative, economic, political, and social power
It is designed to supplement current planning methods by increasing the menu of possibilities considered for business planning
© Center For Advantage - 2005
Incorporate All Aspects of Power It also serves to make the powerful ideas behind
Effects Based Strategy tangible and useful even to those without much training in EBS
© Center For Advantage - 2005
Basic Military Planning
Basic Business Planning involves the Art of War cards and any other planning tools you might be using
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Basic Business Planning
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Step 1: Identify the Problem
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Step 1: Identify the Problem Business planning takes place to resolve problems
typically caused by an unmet opportunity or a competitor’s actions and desires that go against your best interests
Ask and answer:1. What is the problem you wish to resolve?
2. What is the cause of the problem?
3. What is the effect of the problem?
© Center For Advantage - 2005
Step 1: Identify the Problem For example, consider
a problem involving new competitors and customer defection
YieldsCause Effect
New DefectionCompetitors
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Step 1: Identify the Problem The problem to you is not necessarily the new
competitors themselves, but the changes that new competition will create*
The first level cause is the new competition The first level effect of the new competition is
customer defection
*This is an important distinction in planning because the best plans focus on the central problem, and you can only focus on the central problem if you really understand what it is
© Center For Advantage - 2005
Step 1: Identify the Problem The problem is a point of view and describes how a
cause or effect impacts you (the people leading the new competition might be delighted by the change)
The cause and the effect, however, are objective facts – i.e. in the absence of intervention, new competition may or may not create customer defections irrespective of your point of view on the matter
Your goal is to change some aspect of the cause, the causes of the cause, the effect, or the impact of the effect so that you no longer have the central problem
© Center For Advantage - 2005
Step 1: Identify the Problem Sometime knowing the problem, its cause, and its
effect provides enough information to resolve the problem. If so, skip to step 3 of Basic Business Planning
Sometime knowing the problem, cause, and effect is not enough to solve the problem. If so, go to step 2 of Basic Business Planning
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net
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Step 2: Create a Cause and Effects Chain or Net A basic problem has a cause and an effect However this cause and effect does not take place
in isolation
YieldsCause Effect
New DefectionCompetition
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net Another cause yielded your cause and your effect
will act as a cause for another effect
YieldsCause Effect
New DefectionCompetition
YieldsCause Effect
Open New Market Competition
YieldsCause Effect
Lost Revenues Defection
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net Identify Root Causes – Think of your original cause
as an effect and describe its preceding cause Identify Ripple Effects – Think of your original effect
as a cause for another effect and describe that next effect
Repeat backwards and forwards from the original problem as many times and with as many branches as makes sense
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net A cause and effects net develops that is limitless in
depth
YieldsCause Effect
New DefectionCompetition
Root Causes “Ripple” Effects
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Step 2: Create a Cause and Effects Chain or Net Your goal is to create your desired result as
effectively and efficiently as possible anywhere along the cause and effects net that you can
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Step 2: Create a Cause and Effects Chain or Net For example – If your goal is to keep new competition
from causing undesired change, you could: Get to market with a better solution first Buy out competition in advance Provide alternatives in your product suite Diminish the new competition through the legal system Contain the defections to a specific segment Increase your presence in the market to raise the stakes Decrease commitment to the affected market Embrace the competitor as a partner Etc
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net Going through the cards helps you
to assemble such lists of possibilities: Get to market with a better solution
first Buy out competition in advance Provide alternatives in your product
suite Diminish the new competition
through the legal system Contain the defections to a
specific segment Increase your presence in the
market to raise the stakes Decrease commitment to the
affected market Embrace the competitor as a
partner Etc
© Center For Advantage - 2005
Step 2: Create a Cause and Effects Chain or Net The more extensive your cause and effects net, and
the earlier you deal with the problem, the more options you have to resolve that problem
Ideally you will resolve the problem without a direct market contest
If a market contest is necessary, you seek to win the competition in the fastest, most effective, and most efficient way possible
© Center For Advantage - 2005
Step 3: Initial Problem Solving Effort
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Step 3: Initial Problem Solving Effort In step 3, you start using the Art of War cards to
help you resolve the problem Each card has bullet points that serve a specific
function
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Step 3: Initial Problem Solving Effort Browse the Art of War
cards for ideas to change the cause or the effect
If you have set up a cause and effects chain or net in step 2, consider any of the causes or effects in the system
© Center For Advantage - 2005
Step 3: Initial Problem Solving Effort Consider each card:
Is it useful? Can you use it? How might you use it?
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Step 3: Initial Problem Solving Effort Sometimes the strategy and
basis provide enough information to solve the problem. If so, record your solution and put it into the plan
Sometimes the strategy and basis do not provide enough information to solve the problem. If so, go to step 4
If the strategy is not useful, choose another card
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Step 4: Expanding the Solution
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Step 4: Expanding the Solution Expanding the solution involves developing the
strategy or strategies chosen to resolve a problem into the concept of a plan Situation Goal and Objectives Intent Execution Service & Support Communication
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Step 4: Expanding the Solution For example, lets suppose
that two competitors have postured to fight a price war and threaten, therefore, to cut into badly needed profits
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Step 4: Expanding the Solution The problem is economic harm to you that will
come from the disruption of a profitable market environment
The cause of the problem is two competitors that can find no better way to compete than to start slashing prices
The effect is a disruption of market profitability that your company needs for good business
© Center For Advantage - 2005
Step 4: Expanding the Solution If ‘Change the Scope of the
Engagement’ appears useful for dealing with the competitive moves, you might ask how you will implement ‘Change the Scope of the Engagement’
You may already have an idea, or you can seek out another or additional ideas on other cards
© Center For Advantage - 2005
Step 4: Expanding the Solution You might decide to
‘Change the Scope of the Engagement’ by choosing to take sides, at least initially, by creating a marketing alliance
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Step 4: Expanding the Solution You might decide that
aiding the fortunes of one competitor might allow market forces to eliminate the other competitor’s effective market presence
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Step 4: Expanding the Solution Or in fact, it might help
you eliminate both adversaries, since you can deal with the other after you have dealt with the one
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Step 4: Expanding the Solution This being the plan
behind the plan the competitor you aided does not see or cannot do much about
Your planning does not stop here…
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Step 4: Expanding the Solution The deck allow you do go to any level of detail you
intend to go However, since the deck does have a military origin,
remember that in business all things you could do may include things you should not do
Write each decided strategy into your plan
© Center For Advantage - 2005
Step 4: Expanding the Solution Keep in mind that the strategy on any given card
may serve as the answer to any other given card The details of how to use a strategy require your
expertise in your particular domain, and a solid understanding of other domains
‘Change the Scope of the Engagement’ may mean something different to a marketing officer versus a financial officer or member of the board, even though the underlying principle is the same
© Center For Advantage - 2005
Center of Gravity
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Center of Gravity
The Center of Gravity is the element within a system that, by creating some change to that element, will produce your intended result
A key part of business planning is knowing where best to effect change
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Center of Gravity
The Center of Gravity card prompts you to consider all physical and behavioral aspects of a system in order to achieve the desired effect (resolved problem) with the minimal use of resources
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Center of Gravity
To illustrate the concept, if you have a cup of cold water and an objective to cool down a vat of boiling water, you might best meet your objective by using the water to douse the fire under the vat instead of pouring it into the vat itself
The fire would be your center of gravity for effecting the desired change in that system
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Center of Gravity
The ideal business center of gravity opens opportunity with a minimal expenditure of your own energy
The objective might include to gain innovative leadership by raising the pace you can introduce new products to the market
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Center of Gravity
Your ability to innovate at a faster pace could serve to cripple your competitor’s capacity to influence market trends
Or you might force him to take action to defend himself in a way you have prepared to receive him
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Center of Gravity All systems have elements and processes that turn
input into output
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity Your goal is to find the most effective and efficient
place in a system to effect a desired change
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity For example, all members of a business need to
communicate with each other and seek to improve that element of control
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity A likely Center of Gravity is to turn this idea into a
decisive competitive advantage by improving how market information is used for sales
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity Which means that anywhere you choose you can
respond and deliver to market needs faster than your competitor
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity And your capacity to act or not act with some
measure of secrecy gives your company a larger psychological presence than physical presence
Input Output
System
Energy SourceTransmission
Instrument of WorkInstrument of Control
Subsystem
Super system
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Center of Gravity
Always keeping in mind, however, that your competitor is intelligent and resourceful, and will, given the opportunity and time, find a way to counter your successes with some other form of competition
A key to defending against him is to stay one cycle ahead of him in your planning (See Decision Cycle coming up)
© Center For Advantage - 2005
Center of Gravity In a cause and effects net, you look for where you
can effect the most change with the least effort as a prime location for a solution
You also look for areas where a competitor cannot make easy adjustments
YieldsCause Effect
Fire Boiling Water
Root Causes “Ripple” Effects
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Center of Gravity
The is an underlying idea behind striking with a borrowed hand used successfully by corporations that can afford to employ lobbyists to create their best market environment
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Center of Gravity
It is important to conduct business planning against yourself to anticipate what a competitor might target as a center of gravity against you
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Center of Gravity
Bottom line: Use the Center of Gravity card to consider all aspects of where to best position a solution for opportunities and threats
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Decision Cycle
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Decision Cycle
Winning in business involves resolving problems for prospective customers and directly or indirectly causing problems for your competitors
For example, a plan that gives you control of a key market creates a problem for a competitor that no longer leads that market
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Decision Cycle
Your objective is to win the race of decision cycles whereby your plan can not only work, but work despite active opposition to your success
You accomplish this by creating situations that your competitor cannot deal with at your pace, which has the byproduct of causing him to make exploitable mistakes
© Center For Advantage - 2005
Decision Cycle
The intent behind the Art of War cards is to accelerate transitions in thought
You make better decisions faster because you: Do not have to reinvent strategies
that are already known before you use them
Are not limited, in a crisis, to selecting only those strategies at the top of your mind
© Center For Advantage - 2005
Decision Cycle
Bottom Line: You will have opposition when your solutions create a problem for someone else
For Business Planning, you want to create rapid transitions that delight customers and keep competitors off balance
What appears to be the best decision is generally not your best decision if your competitor can anticipate it
© Center For Advantage - 2005
Games
Art of War Cards Games Description
Strateffects™ Strategy Sparring
© Center For Advantage - 2005
Games Description Art of War Cards Strateffects™ provides a game for seeking
problems along a cause and effects net Other games act like sparring for the mind and
improve strategic mental agility
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Strateffects™ A game for the world as it is…1. Select a strategic problem to solve. 2. Describe what the problem is and what the problem means.3. Build a cause and effects chain forward and backward from the
problem. For example, if the problem is “I do not have outside support, meaning I will have to proceed on my own,” you might go forward with “I will have to proceed on my own, meaning I will have to succeed with the resources I have,” and then “I will have to succeed with the resources I have, meaning I will have only one chance to reach my objective.” You might go backward with “I have moved beyond the capacity of my support to reach me, meaning I do not have outside support,” and before that, “my objective is remote, meaning I have to move beyond the capacity of my support to reach me.” Go forward and backward at least two steps from the central problem; branches are acceptable. (Within reason, the broader your cause and effects chain or net, the better your potential result.)
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Strateffects™ A game for the world as it is…4. Deal at least five Strategy cards from the Art of War: Sun Tzu
Strategy Card Deck to each player.5. Allow each player, on successive turns, to apply a Strategy card
anywhere along the cause and effects chain – to include supporting previously played cards – in a way that supports the resolution of the original strategic problem. For the example in #2 above, the card 10 of Diamonds, FEINT IN THE EAST, ACT IN THE WEST, evokes the possibility that you might draw an adversary away from your objective thereby eliminating your need for support at the objective. Queen of Hearts, CREATE SOMETHING FROM NOTHING, evokes the possibility you might cause your adversary to believe you have support even though you do not. You might further develop the Queen of Hearts by playing the 3 of Clubs, SOW A DISCORD, that evokes the possibility you might allow your adversaries to discover “secrets” that are actually false – the secret in this example being that your support has greater reach than it does.
© Center For Advantage - 2005
Strateffects™ A game for the world as it is…6. Draw cards to replace those used.
7. Play until you have a plan, succeed at a plan, or until cards run out.
8. For real world problems, play is continuous as the situation changes.
9. You win as a team by solving the strategic problem, though a moderator or group consensus can award the designation of winner for training games.
© Center For Advantage - 2005
Strategy Sparing
Strategy Sparring™ is a game developed with Foreign Services officers. Just like physical martial arts sparing, there is no winner per say in this game. The goal is to improve the thinking skills under fire of both participants. You use the cards from the Art of War: Sun Tzu Strategy Card Deck to exercise your mind and develop real-time strategic agility on your feet.
Shuffle the Art of War: Sun Tzu Strategy Card Deck, and draw five cards each. Decide who goes first. Draw another card from the deck and place the card face up on the table. In less than 10 seconds, have the first player select a counterstrategy from his card deck, place that card face up on the table, and draw a replacement card from the deck. In less than 10 seconds, have the second player select a counter strategy to the first player’s card, place that card face up on the table, and draw a replacement card from the deck. Continue this sparing cycle until you go through the entire deck. (If you have a chess clock or two stop watches, you can use them to keep up the pace and make the sparing more competitive.)
© Center For Advantage - 2005
Additional Resources
This concludes How to Use the Art of War: Sun Tzu Strategy Card Deck for Business PlanningAdditional resources appear atwww.centerforadvantage.comwww.artofwarcards.com
© Center For Advantage - 2005
Also by Robert Cantrell
Heartland Reviews
As a retired military intelligence professional and conflict theorist, I must say this is the best interpretation of Sun Tzu’s classic work I have read. The author focuses on the meanings behind this ancient Chinese war philosopher’s writings. He puts them into a modern context, making them easy to understand. Apparently the Department of Defense agrees with me on this, since they have selected Mr. Cantrell’s book as a text for the National War College in Washington DC. This is a must read for all military officers and business leaders. It rated a perfect five hearts.
Bob Spear
Chief Reviewer for Heartland Reviews, Leavenworth, KS