Compass Trend (21): The Theme of the Efficient Economy

In an uncertain setting, competition can become a relevant factor.  ... While the amateurs know that competition is the enemy of complacency, the professionals acknowledged that it also enhances one's competency.  ... Psychologically, complacency usually creates a progression of corruption within one's being.  It occasionally spreads rapidly throughout their settings.   ... The outcome is usually quite obvious.


Those who compete, understand the reasoning behind this perspective of competition.  ... This is the Dao of the Efficient Economy. ... 

The Question of The Day

In an uncertain setting, the successful strategists use their Big Tangible Picture, to predict an advantageous situation. Technically, it could propel them into a possible “two step” gain over the competition.  ...  After a long moment  of contemplation, they implemented a “half step ahead” solution. ... Do you know why?


(The post has been updated.)

Assessing the NYT's Quandary

The grand lesson that one learns from this NYT's quandary, can be found in the various strategy classics.  

Whenever there is excessive disorder within any leadership culture, the after-effects regularly permeates throughout the organizational structure.  The senior level management must maintain the order and the flow of their organization by whatever means necessary.   ... 

Summary

The quality of the leadership culture determines the quality of the other essential strategic values regardless of the organizational type.

Compass Trend (20): Noise Over Signal

"When the noise is louder than the signal, the hype becomes irrelevant.  The victims usually become quite angry. ...  Trusting one sole source is not a good idea. 


Performing due diligence is always included in the strategic assessment process of the successful strategist.

The Three Questions of the Day

wikimedia.org

Q:  What are the keys to integrating the principles from the Chinese eight military (strategy) classics, the strategies of Go (weiqi)  and the theory of optimization? 


Q:  Are you able to integrate the principles from the Chinese eight military (strategy) classics, the strategies of Go (weiqi)  and the theory of optimization into one neat strategic framework?


Q:  What situation influences a strategist to apply this unique process?

The Importance of Knowing Why.

In the information economy,  the successful strategists always know the causation of a tangible strategic situation.


The Case of the Facebook IPO
Click here.  This is what some people have read.  Now, click here for the back story.   


Comments from the Compass Desk
Most people do not spend anytime, knowing the causes of the situation.  They run on their belief of simplicity by accepting the entire situation as the cause and the outcome. At times, some of them are deceived.


During the assessment process, the successful strategist never take things for granted. They usually viewed their grand situation (Big Tangible Picture [BTP]) in terms of layers. By looking at the patterns of similarity and dissimilarity, they are able to determine the reasoning behind the configuration of the situation. 


Understanding the configuration of The Big Tangible Picture usually enables the successful strategists to know the various available options. It also allows them to identify the benefits, the challenges and the drawbacks for each option.


Summary
Some of the stuff in our algorithmic-based information society are just illusions and mirages.  The only stuff that counts is our own belief of "persisting and persevering over the myriad of obstacles.  ..."

Compass Trend (19): Thriving in the Efficient Economy

The Compass rule of the efficient economy is to have a macro roster of multi-facet players (esp in the supporting role). Sport organizations (i.e., the San Francisco Niners, the New England Patriots, etc.) have utilized them for the purpose of getting maximum cash efficiency. It is all about getting the most bang for the buck.

Whenever, a starting player is injured, another capable player (with less financial value) steps in and meets the performance standard. Idealistically, there should be no drop of efficiency.

The Real World

Finding quality people in the bargain basement of cheap labor is what Walmart and many corporations do quite well. ... To succeed in the retail marketplace, they have to be able to find the "right" lower-tier talent in order to to fulfill their field operation without ever making any full commitment.  Their labor pool are usually quite expendable and cheap.   


This is the "Dao of the Efficient Economy."  Regardless of the various innovations that one might think about, one must be extremely efficient for the purpose of saving time and resources.


Compass Rule
Thriving begins by knowing the order (of priorities) for each situation and beyond.

Perception Is Not Always Reality

Regardless of their settings, some people are deceived by their own simple perception.  They usually relied on their pseudo psychic skills to get to the truth.


In the case of  this recruiting firm, someone did not properly perform their act of  due diligence.  The outcome became obvious.


The act of  deception is always possible at any level of our near-transparent information economy.  Identifying it is a different story.


Summary
The Chinese strategic classics have always emphasized that the importance of not routinely trusting one's own perception and memories.  ...  For the reason of time, we are not going to review the psychological reasoning behind that strategic principle. If you are interested in knowing more about it, please send us a note.

We have always believed that the act of performing proper due diligence is the first step toward the achievement of strategic stability.

Q: Do you have a relevant process that enables you to do proper strategic assessment?

Quarterly Review

When reviewing our web metrics report, we were surprised to see that our Sun Bin articles and the Jiang Tai Gong's post were quite popular. Our Compass Trends articles were also popular too.

Many thanks to those who have visited us.

We are currently saving our "Understanding Competition" articles for our book project and our presentation package.

Sun Bin: The Art of Warfare (Military Methods) (10)

(Wikipedia)

Do you know how to connect Sun Bin's practical tactical concepts to Sunzi's philosophical principles of strategy?

Compass Tradition: Scripting with a Purpose (2)

The script process works well in a grand competitive situation where there are many specific tactical scenarios that one might encounter.

 

The above script sheets are from scribd.com

It was initially designed to identify the competitor's tendencies during the opening stage of the competition while concealing the strategic pretext for subsequent tactical situations.  Good pre-game strategic assessment enables the successful strategists to utilize the various scenario plays to secure an early strategic gain.

Some of these scenario plays utilized the various unorthodox means to shape the view of the competition. 

The Questions of the Day

In your competitive situation,  do you use a script to shape your competition?   

If so, what are the strategic principles do you use that makes your scripting process uniquely effective?

Side note

Bill Walsh have always emphasized in the practice of scripting the play calls in an emotional free environment during the week rather than trying to call plays  amidst the surge of adrenaline and stress on game day.

Using Strategy as a Lever

The following is from : Wikipedia : Lever

In physics, a lever (from French lever, "to raise", cf. a levant) is a rigid object that is used with an appropriate fulcrum or pivot point to either multiply the mechanical force (effort) that can be applied to another object or resistance force (load), or multiply the distance and speed at which the opposite end of the rigid object travels.

This leverage is also termed mechanical advantage, and is one example of the principle of moments.

A lever is one of the six simple machines.

Early Use:

The earliest remaining writings regarding levers date from the 3rd century BC and were provided by Archimedes.

"Give me a place to stand, and I shall move the earth with a lever" is a remark of Archimedes who formally stated the correct mathematical principle of levers (quoted by Pappus of Alexandria).

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Q: Do you have the strategic position that enables you to move your competitor?

Q: Do you know how to recognize a particular situation that enables you to stay ahead of the curve?

Our Current Objective

We do one thing. We do it well.  Then we go on.