Book Notes - The Art Of War For Managers

The Art Of War For Managers by Gerald A Michaelson [2001]

Summary:
“Know the enemy and know yourself and you will never be defeated.”
Interplay of strategy and tactics; strategy is the plan, tactics are the implementation.
Information and speed are the key to winning.
Attacking head-on is rarely the best approach, find your niche and expand from there.

Notes:
Page 3: A plan that is not written down is no plan at all, a simple written plan is best.
Page 4: Unlike Tzu’s constant factors for the battlefield in business they are much simpler, you must study:
1. The ‘mission’ of the company.
2. The outside factors (industry/economic trends etc).
3. The marketplace.
4. The leaders.
5. The guiding principles.
Page 13: It is important to for start-ups to have sufficient reserves to ride-out downturns and to tide them over between launch and profitability. As they say; “Profit is king, but cash rules” you can survive without profit but you can’t survive without cash.
Page 27: Have two types of edict; instructions and orders. Instructions are issued as guidelines, to be followed if practical. Orders are to be followed immediately and to the letter but can only be given by someone on the ground in the situation. This prevents stupid decisions being made above.
Page 29: Fundamental principles of business:
1. Organize Intelligence
2. Maintain Objectives
3. Establish A Secure Position
4. Keep On The Offensive
5. Plan Surprise
6. Think Manoeuvre
7. Concentrate Resources
8. Practice Economy Of Force
9. Keep It Simple
Page 31: Strategy always comes before tactics, while a good strategy might succeed even with poor tactical execution, a poor strategy even with superlative tactics will almost never succeed. It is therefore important to make sure that you are heading in the right strategic direction before you determine tactics.
Page 32: “Boil the ocean” appears to be a reference to one strategist’s suggestion for how to get rid of German u-boats in the second world war.
Page 38: Customer input is a vital operational measure, it is key to improved performance and winning. Use of balanced scorecard suggested to keep track of financial and non-financial, lagging and leading measures.
Page 44: The use of extraordinary force to ensure victory, this can be applied on a macro level; a company focusing all efforts to ensure that they take a market or on the micro level; a person focusing all of their effort on a particular task.
Page 51: Keep your products secret until the last minute, it removes the ability of your competitors to plan a response. Apple does this particularly well.
Page 63: Reference to Tyco going from $2b to $30b in 6 years, ironically it was under the CEO who ended up in jail. Book probably written before those events.
Page 67: The rule of three: never make more than 3 points in any one communication, if you make more some of the points are likely to be forgotten. Keep it simple and direct.
Page 77: 5 faults of leadership:
1. Recklessness, which leads to destruction,
2. Cowardice, which leads to capture,
3. A hasty temper, which can be provoked by insults,
4. A delicacy of honour, which is sensitive to shame,
5. Over-solicitude for his men, which exposes him to worry and trouble.
Page 91: Acknowledging the role of known standards of performance so that the leader can be perceived as impartial and can set discipline to achieve standards.
Page 93: The importance of going to the gemba for managers to inform their intuition and knowledge of the real situation.
Page 95: It is important to have direct communication with the people on the ground, often information is filtered as it goes up the chain which means you might not be getting all pertinent information. Create relationships with a select few people further down the chain so that you can get direct information.
Page 110: Information on personal survival and career paths.
Page 169: Summary of key concepts.

Quotes:
Page 6: “If the only tool you have is a hammer, everything will look like a nail.”
Page 14: “While we have heard of stupid haste in war, we have not yet seen a clever operation that was prolonged.”
Page 22: “To subdue the enemy without fighting is supreme excellence.”
Page 39: “Where everyone decides everything, no one decides anything.”
Page 65: “Do not do what your enemy wants, if for no other reason than he wants it.”
Page 72: “The key to success is what the customer wants, not what you can do.”
Page 78: “When was the last time anyone said; ‘I wish I had waited 6 months longer to fire that guy’” – Jack Welch
Page 81: “Logic sounds most convincing to the presenter; it is in the emotions of the receiver that positions are changed.”
Page 101: “Know the enemy and know yourself and you will never be defeated.”
Page 112: “Too often, the absence of conflict is not harmony, it’s apathy.”
Page 116: “When you can win and retain good relationships, only then can you become strong.”