Sunday, August 18, 2013

Profiteering in the Competitive Economy through Sunzi's Art of War

One of the most difficult challenges for most Chief Decision Makers is to understand the Big Tangible Picture.within one's competitive settings and beyond.

Profiteering in our risk-driven competitive economy means that one must have the skillset to identify the technicalities within the Big Tangible Picture (the bigger tangible picture of their marketplace and beyond) while avoiding the intent to concentrate on competitive myopia.  Instead of focusing on the competition, this arcane category of strategic focal points usually enables the chief decision makers to capitalize on the unseen opportunities. 


The Compass A/E Process
Following is an abridged abstract on the basic framework of our process

What are the Five Critical Strategic Factors?

The Dao Factor
The Rate of Change Factor
  • This factor focuses on the change rate of each individual strategic and tactical factors. 
The Strategic State of the Grand Situation Factor
  • This factor focuses on the specific attributes behind each individual strategic and tactical factors. 
The Efficacy of the Strategic Leadership Factor
  • This factor focuses on the specific attributes that determine whether the competitor has the leadership to adjust to the grand situation
The Effectiveness of the Implemented Logistics Factor
  • This factor focuses on whether the logistics are consistent or exceed the criteria of the strategic standards
Interacting the Five Critical Strategic Factors 
with the Five Competitive Forces 

Copyright  2008-2013 © Compass360 Consulting
Copying, posting and reproduction in any form (
without prior consent) is an infringement of copyright.

The above chart shows the relationship between the Five Critical Strategic Factors and Michael Porter's Five Competitive Forces. 

By comprehending the connectivity behind the configuration of their targeted marketplace from the different perspectives while being mindfully aware of the constant motion of the five competitive forces, one could understand the strategic efficiency of their competition. 

If used correctly, the chief decision makers is able to prioritize the order of competitive forces.

Our future white paper (and strategy book) will explain the unique connection between these two grand sets of concepts and the approach to understanding where are the threats and where are the opportunities.

Connecting the 
Five Critical Strategic Factors 
to The Compass Matrix

Copyright  2008-2013 © Compass360 Consulting
Copying, posting and reproduction in any form (
without prior consent) is an infringement of copyright.

The above chart shows the grander overview between the Five Critical Strategic Factors, one's own strategic state and the other external (marketing) forces. 

The Compass Chart

Copyright  2008-2013 © Compass360 Consulting
Copying, posting and reproduction in any form 
(without prior consent) is an infringement of copyright.

This Compass Chart is based on the macro concepts of Sunzi's The Art of War.

The intent of this chart is to assist the implementer in identifying the strategic efficiency of each competitor within their own strategic setting and beyond.  The next step is to determine whether the act of thawing their plans is probable. 

There is more than context and Chinese characters behind this exotic chart. Can you decipher the motive and the method behind this visual enigma?  It only took some of our associates who quite understood the gist of the Art of War and the rest of the Eight Military Classics of Ancient China (The Seven Military Classics of Ancient China and Sun Bin's Military Methods) about five years to "compass" the motif of this chart.  In our case, it took eight minutes of our time. 

If someone sends us the proper answer, we will send him or her a copy of Dr. Ralph Sawyer's Essence of War. Are you game? 

By understanding the configuration of the chart, one can also use it for a wide array of worst case scenarios.

The Question of the Day
By understanding the connectivity within your competitive setting and beyond, would you try to achieve "the strategy heaven" while avoiding "the tactical hell"?

Minor Jottings
An non-innovative trust fund baby asked us, "Why don't you surrender your know-how to everyone? ... It will benefit those who are competitive? ... Don't you believe in the greater good?"

By being the grand enthusiasts of Jiang Tai Gong's essay on strategic warfare, we observed the essence of the following grand principle of Six Secret Teachings:

Preserving the Advantage
King Wen asked Tai Gong:"How does one preserve the state's territory?"

Tai Gong said: "Do not estrange your relatives. Do not neglect the masses. Be conciliatory and solicitous towards nearby states and control all that is under you. Do not loan the authority of state to other men. If you loan the authority of state to other men, then you will lose your authority. Do not hurt those of lower position to benefit those of higher position. Do not abandon the fundamental to save those that are inconsequential.

When the sun is at midday, you should dry things. If you grasp a knife, you must cut. If you hold an axe, you must attack."

"If at the height of the day, you do not dry things in the sun, this is termed losing the opportunity.

If you grasp a knife but do not cut anything, you will lose the moment for profits. If you hold an axe and do not attack, enemies will attack instead."

"If trickling streams are not blocked, they will become great rivers. If you do not extinguish the smallest flames, there is nothing much you can do when it turns into great flames.

If you do not eliminate the two-leaf sapling, you might have to use the axe to remove it in future." "For this reason, the ruler must focus on developing wealth within his state. Without material wealth, he has nothing with which to spread beneficence or to bring his relatives together.

If he estranges his relatives it will be harmful. If he loses the common people, he will be defeated. "

"Do not loan sharp weapons to other men. If you loan sharp weapons to other men, you will be hurt by them and will not live out your allotted span of years."

King Wen said:"What do you mean by benevolence and righteousness?"

Tai Gong replied: "Respect the common people, unite your relatives. If you respect the common people, they will be in harmony. And if you unite your relatives, they will be happy. This is the way to implement the essential cords of benevolence and righteousness."

"Do not allow other men to snatch away your awesomeness.Rely on your wisdom, follow the norm. Those that submit and accord with you, treat them generously and virtuously. Those that oppose you, break with force. If you respect the people and trust, the state will be peaceful and populace submissive." - T’ai Kung Liu-t’ao (Six Secret Teachings)

More on this topic can be found in the Seven Military Classics of Ancient China.

Side Note 
The Chinese strategy essays have always emphasized the importance of maintaining one's advantage as long as possible. This could only occur when one has mastered the art of quietude and possessed the metaphysical means to connect the modes to it.

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