The Dao of Strategy

The Dao of Strategic Assessment #8: The Process

2012-01-28T06:18:00.000-08:00

Q: How does one prevails over their competitors?

A: Assess, Position and Influence

Q: How does one assess?

A: Know the end in mind. Define what one is going to collect before the act of assessing begins.

Collect the necessary but relevant data.
Compare the categorized data.
Contrast the differences by focusing on the relevant indicators.
Count the numbers within the subcategories that are hidden behind the performance metrics. (It is important to verify the authenticity of the data.)
Calculate the probabilities of winning.

It is that simple. ... Or is it? ...

Happy Year of the Dragon

2012-01-23T01:38:00.001-08:00

Compass360 Consulting

The Dao of Executing an Unorthodox (Surprise) Play (4)

2012-01-22T06:18:00.000-08:00

Another way to implement an unorthodox attack is to have a multi-option offense. One of those options is to influence the competition to play the reactive game. Forcing them to spend their time guessing on what is the offense's next move, especially in a near-predictable setting.

The New England Patriots usually influence their competition with a no-huddle attack.

This mode of offense focuses on maintaining pressure by not taking a break between plays. It is equivalent to basketball's "fast break" tactic.

"Score first. Score fast. Score again." This is the mantra of a no-huddle attack.

The Pats usually score first in a short time. In some cases, they either were able to score or pushed the competition into a difficult field position.

During the second half of the season, some of their competitors were forced to catch up and usually were unable to maintain that pace.

One of their favorite formations is the dual tight end (TE) attack.

The uniqueness of this attack mode is that the Patroits TE's are quite multi-functionally talented. Beside running the basic TE receiving routines (i.e., post patterns, vertical streaks, 10-15 yrs hook patterns) and blocking like regular offensive linemen, they could also flawlessly run WR's routes with effectiveness.

Because of their size and their unique speed, there are technical and physical mismatches between the New England TE's and their competitor's linebackers and defensive backs.

Whenever their competitor's defense is able to contain them, the Pats QB then focused on their reliable wide receiver on the outside route.

The variational uses of the five eligible receivers within their pass/run game are endless.

Taking What the Defense Gives

In this situation, the QB recognizes the situational intent of the defense and decides on an opposite approach.

Whenever their offense sees a pass defending situation, the double TE(s) sometimes remain in the line formation and block for the run. In a run defending situation, one or both TE(s) occasionally run out for the pass.

Seizing What One Wants

Occasionally, the Patriots completely comprehends their competitor's tendencies and the weaknesses. Then, they would begin to dominate by running on their competitor's run defense and passing on their passing defense.

At that level of extreme competition, one targets the jugular.

Extending the Model to Business

So, how does this viewpoint apply to business?

In the information economy, the grand marketplace is presumed to be near-predictable. To dominate one's own niche, he/she must have the available options before ever going on the offensive mode. Having multi-functional talent usually enables the chief planners to plan a diversity of efficient tactics.

The primary intent of this offensive mode is to influence their competitor to react defensively.

Summation

Knowing the tendencies and the weaknesses of the competitor and integrating the different options are two of the many steps to building one's strategic power.

The Dao of Executing an Unorthodox (Surprise) Play (3)

2012-01-21T06:18:00.000-08:00

Notes from the Compass Desk

The professionals surprised their targets

while the amateurs trick their victims....

Tricks are for kids. - A Nameless Strategist

The objective of a surprise play is to influence the competitor to focus on an irrelevant terrain (situation) while implementing one's intent toward an relevant terrain unexpectedly.

Knowing their tendencies is essential. The next step is to create the proper illusion that baits and lures them into the wrong terrain. Idealistically, the final step is to implement the technical mismatches while attacking the non-obvious gap within the terrain. ... You can find more examples about this stratagem in any essays relating to the 36 Stratagems.

Depending on the situation, a surprise play could be consisted of many levels of steps (minutes, details, and ultra specifics). Many pseudo experts usually do not like to involve themselves in the planning stage of a uncertain situation.

The counter to any surprise play is to have quality manpower who could adjust their Big Tangible Picture (from the field level) and implement their operational tactics on the fly.

Side note: Click here for a previous post on strategizing in a near-predictable setting.

Final Thoughts

In any venture, the possibility of high reward usually means high risk. To compete in this unique economy, one has to be able to make that challenging decision to pursue that risk. It begins by having a Big Tangible Picture and being able to assess it properly. One cannot just plan without knowing their settings. (We see this behavior repeatedly. Willing and implementing a poorly-developed plan will have negative consequences.) ... While one is thinking of a surprise attack, what are the chances of the competition thinking of the same option?

... Understanding the element of surprise (bilaterally) is one of the many keys to mastering strategic power.

We will touch on the topic of 36 Stratagems in our future posts.

The Dao of Executing an Unorthodox (Surprise) Play (2)

2012-01-19T06:18:00.000-08:00

"Victory has a thousand fathers; but defeat is an orphan." - JFK

In a near-predictable competitive terrain, surprising the competitor can be a challenging task.

In the case of the San Francisco Niners, they successfully executed a surprise play by understanding the tendencies of the opposition.

Objective: Subjugate the Competition's Intention

Situation: 4th Quarter, Saints 24 Niners 23. 2:18 left , 3rd down and seven yards, the Niners had the ball on the Saints 28 yard line

Step1: Assess the Big Tangible Picture by focusing on knowing the competitor's tendencies

Based on the tendencies of previous games and the current game observations, Greg Roman, the S.F Niners offensive coordinator called a play (“QB Whack.”) from the Shotgun formation. It was designed to beat a defense that overloads on one side of the defensive formation. To most amateurs, they believed that Roman's job was to pick the right side.

What Coach Roman did not disclose to the news media was that he saw many tendencies within the defense at a certain situation. By looking at the videos and the stats, Roman knew that Gregg Williams, the defensive play caller had a tendency of blitzing during an absolute pass situation. The modus operandi of Coach William's was usually focused on neutralizing their competitor's key strength and then forcing the QB to do things that he is not proficient at.

So, how does one exploits this tendency to one's advantage?

Step 2a: Position the competition toward a grand illusion by creating a bait and lure situation

By looking at the above video, the Niners offense presented the disposition of passing. The QB was five yards back from the line of scrimmage and no one was positioned in the backfield. Everyone on the defensive side were thinking "the pass" play was on.

Step 2b: Deceive the competitor from the trenches

Goodwin's instructed to the offensive line that suggested a passing play. The Saints countered by blitzing from the right side of the offensive line and Smith ran to the left side of the field.

Step 3: Influence the competition by implementing mismatching secondary situations

When the ball was hiked, Smith took the ball and ran to the non-blitzing side of the field. Kyle Williams, the wide receiver who was in motion, delivered the first key block – crashing down from the slot position on the left side to level Saints defensive end Will Smith. Then Joe Staley, the left tackle pulled from his position, sprinted downfield and neutralized Isa Abdul-Quddus, the Saints safety with a textbook cut block at the 10-yard line to ensure the touchdown.

Step 4: Know the score and the situation

After the Niners scored, there was 2 min and 11 sec left to the game. The Saints quickly scored and took the lead.

Step 5: Return to step 1 to step 4 until the game is over

The Niners adjusted to the situation and re-scored again with fourteen seconds left in the game.

The Saints defense went with a zone coverage, thinking that the next play was a run or the possibility of a short and outside pass. The Niners braintrust called a pass play that gave the image of a run. The key intent of this specific play was targeted on the tendency of the Saints safety. One should not be surprised that the Niners knew that he had an ankle injury from the week before.

The Final Score: San Francisco Niners 36 New Orleans Saints 32

One should always remember that the configuration of a successful situation is a composite of many elements, especially if the situation can be quite complex.

Compass Rule: Always assess, position and influence.

(More to come)

Compass Trend (8): The Automated Trend Continues

2012-01-18T06:18:00.002-08:00

As mentioned in previous posts, low-level human labor in the U.S. is on a decline. There is a moderately-high supply of human labor and a slow low market demand for that niche.

Automation is slowly lurking forward toward the many areas of business, esp in the restaurant business.

Do not be surprised to see that there are more vending machines that are being utilized at certain social economic niches within our information society. Self-help service is the current trend.

In summary, manual labor has become minimized especially when automation is being used. Anytime, outsourced industrial jobs are coming to the U.S . It means that the company has figured out how to automate it.

Notes from the Compass Desk
Our suggestion to those who have high aspirations and want to stay ahead of the curve. Be the top 10% who are innovative and inventive. Create the unique value proposition for those who have the ambition and the capital. Do not be expendable.

Notes from the Compass Desk

When the criteria of the grand situation is near-symmetrical, transitive and reflexive, the successful strategists are focused on comprehending the configuration of the Big Tangible Picture and identifying the exceptional point.

It is quite simple when one knows what to look for and have the process to do it.

/// Updated on 01/19/12

Gaining the Informational Advantage by Knowing the Big Tangible Picture (2)

2012-01-15T00:01:00.000-08:00

New England Patriots 45 Denver Broncos 10

When one competitor easily scores five touchdowns in the first half of the game, the serious and insightful spectator could have presumed that they have already identified the absolute weaknesses of their opposition and decided on capitalized on those opportunities.

Look at the stats and see if you have the same conclusion.

When certain strategic and tactical factors between the competition evens out, quality intelligence becomes relevant to those who want the advantage.

Compass Rule: The quantity of quality information is proportional to the quantity of strategic advantage (strategic power) that one might have.

note: There is an exception to this rule.

Additional note:

Most football fanatics knew that the Patriots were going to win. The question was: are the Patriots able to play dominance football against the Broncos? ... I presumed that the "inside knowledge" positioned the staff's preparation into a state of readiness and the team into a state of dominance.

Gaining the Informational Advantage by Knowing the Big Tangible Picture

2012-01-12T06:18:00.000-08:00

Fwiw, the New England Patriots are playing Mr. Tebow and the Denver Broncos this coming weekend.

Bill Belichick, the head coach of the New England Patriots recently made a masterful move by immediately hiring Josh McDaniels his former offensive coordinator as his new offensive coordinator for the next season, since his current coordinator Bill O'Brien will be leaving for Penn State after the Patriots football season is over.

One can only expected that the Patriots defense will gain a slight informational edge from the presence of Josh McDaniels. He was the former coach of Tim Tebow, the quarterback of the Denver Broncos team and some of the other Denver players who played in the previous season.

What is the chance that Coach McDaniels has an understanding of the habits and the situational tendencies of certain players? ... The Patriots now had one extra week of preparation and the insider information on how to prepare against the Broncos. ... So, which team has the advantage now?

Compass Analysis

Terrain Factor: Patriots (Home Territory)
Offense vs. Defense: Patriots
Strategic Playoff Experience: Patriots
Informational Advantage: Patriots
Divine Intervention: Irrelevant
The Wild Card Factor: Broncos

{There are more factors.}

Prediction: Pick the Patriots to defeat the Broncos.

The Information Advantage

When the categories of various critical strategic and tactical factors are evened out between the competitors, the possession of quality intelligence becomes quite relevant. ...

Compass Rule: The quantity of quality information is proportional to the quantity of strategic advantage that one might have.

The Sunzi's Advantage

... Did the reading of Sunzi's The Art of War presented Coach Belichick the true insight to make this move? (In the AoW world, the diehards know that he is supposed to be one of the many enthusiasts of the Sunzi classic.) ... I doubted it. ... It was his ability to see the connections within his version of the Big Tangible Picture and having the mindful awareness to make the right decisions. ...

From our experience, reading any book on strategy and tactics could guide someone so far. ... (However the AoW and the rest of the Seven Strategy Classics are quite good at giving good pointers. By carefully reading those books, one can indirectly find the connections between the exploitation of intelligence to the "terrain" level of the competition. ... Ask your local Sunzi reader/expert if he or she knows that connection?) ... Integrating the principles and the protocols into a d0-able process that would enabled him or her to operate efficiently, is the challenge. If it is done properly, the performance of its users would be elevated toward a higher plane of competition.

The Dao of the Successful Strategist

... The successful strategist begins his endeavor of achieving the state of strategic effectiveness when he sees the Big Tangible Picture by knowing how things are connected. Then he assesses it in terms of advantages and disadvantages. The next step is to position himself with a sound and solid plan and proper preparation. The final step is the influencing of the target with a myriad of orthodox and unorthodox strategies.

Do you know how everything connects in your competitive terrain and beyond? ... Do you have the intelligence advantage?

The Art of the Focus (9): The Practice of Becoming Focused

2012-01-09T06:18:00.000-08:00

wikimedia

Our friend at Cook Ding's Kitchen occasionally gives us pointers on how to stay focused while avoiding contentment.

Some members of our C360 group practiced various internal martial art systems for the purpose of improving their physical being while building their sense of concentration. Others preferred the practice of drinking their favorite beverage while listening to Bach and Mozart. One associate usually hum along to various Bach's piano pieces during the process of reading, writing and executing code.

Fwiw, Bach musical pieces (i.e., The Art of Fugue, Two Piece of Invention, etc.) presented to its listeners a sense of poise and perspective. If you are strategizing, I recommended the practice of standing alone while listening to the low-pitched tone of Bach or Handel.

Some pieces of Mozart are great for the purpose of brainstorming. My favorites are usually the Two Pianos pieces.

In summary, one can only strategize and implement when he/she is focused. One cannot be focused by reading a strategy classic or thinking about it.

The Dao of Implementing an Unorthodox (Surprise) Play

2012-01-08T06:18:00.001-08:00

"In the field of observation, chance (fortune)

favored the prepared mind." - Louis Pasteur

Our associates are always asked this question, "how does one surprises their target?"

The answer is: understanding the tendencies of the competition. Click here, here and here (the video) for an unique example.

The Niners Implementation

One wonders how did Brad Seely, the Niners coach find this operational inefficiency within the St. Louis Rams special team?

One presumption is that the coach could have noticed that opposing special team signal caller does NOT always perform the due diligence of counting number of opposing players before the play, during the game review video session.

It is one of the many basic signals that some football fans missed. They become so involved in the action and rarely see the other parts of the bigger picture. (Fwiw, the game video for the coaches is quite different than the TV version of the game. It offers a broader scope of the game. The coaches usually have more tangible information to be processed.)

The Niners kicker was quite observant and fully prepared, that he quickly read and scan the full field for situational mismatches before executing it. This "read and respond" approach only works if the play caller's team have prepared themselves by mastering all of relevant scenario adjustment plays.

There are some other presumptions. Drop us a message and we will tell you.

Side note: Regardless of the predictability state of the situation, the successful strategist always ensures that the expediters are prepared for all tangible situations. If the execution errs in any way, then the root cause would be focused toward their execution. ... Do you plan and prepare your team to do that? ... In your settings, what is the probability of your competition surprising you with a new marketing tactic.

In summary, how do you assessed your competition? Better yet, how does your competition assessed you?

2012 Predictions and Prognostications

2012-01-03T06:18:00.000-08:00

wikimedia.org

In the information economy, zero sum gain is the ideal outcome for those who are interested in capitalizing the given opportunities. ... Regardless of the pseudo-positive news, most of the low to middle tier jobs are not returning to the U.S. For the time being, the opportunities are fewer in number and the pay is certainly much more modest than before.

The Ala Carte Model

Those who are on top of their "information media" mountain, do not always have to innovate. They just have to find new ways to generate new streams of revenue with their content. Building different subscriptions models and producing new content could only go so far.

The Rise of IPTV Technology

We think that the latest iptv technology will overcome cable tv in the future. The latest updates on IPTV can be found at iptvdigest.

The Continuous Rise of Automation

Any jobs that are returning to United States are being automated.

Other Predictions

Click here for IBM's view of the future.
Here is another view relating the possible changes for 2012.
The name of this game is to maintain the approach of cost and operational efficiency. We expected certain U.S. cities to continually slash their budgets. It is only a matter of time that police work will be outsourced to private companies.
Do not be surprised if on-line gaming sites becomes legalized in the U.S. and more gambling casinos are opened at various cities and towns.

Thoughts from the Compass Desk

Those who innovate, usually have a challenging time of surviving. If the innovation becomes relevant, their chances of thriving increases. Those who can't innovate, will imitate while waiting for a new opportunity.

If the imitators are able to maintain their peak performance, then they will have a fighting chance to survive.

Thriving in the Information economy is about transferring innovative ideas to something that people can connect to.

Thoughts on Creating a New Course for 2012

2011-12-31T06:18:00.001-08:00

wikimedia

Thriving in the information economy means having the right set of ideas that motivate its followers to a high goal. Finding them require some thinking time.

The Schema

Decide on a timeline between now and the next three days. Choose a quiet setting. Reflect on the compass of your settings. Assess your Big Tangible Picture in terms of your competitive terrain. Identify the competitive influences that connects to the grand terrain.

Write down your resolutions. Build your Tangible Vision. Delineate each particular point in terms of priorities, approaches and changes. Script the steps for each resolutions. At that point, analyze whether each resolution is based on your experience, your beliefs, your faith, your observation, assessed intelligence or a combination of the previously mentioned points. Review and re-edit again.

The Implementation

Throughout the year, there will be a time to re-edit and update one's own Tangible Vision. The best part of the process is the action of crossing out the completed objectives.

Observation:

While the goal-driven strategists write their resolutions in ink, the process-minded strategists usually scripted their resolutions in pencil and slowly update it in ink. (That is a Compass rule.)

Good luck!

Competing in the Info Economy: Understanding the Seasonal Cycle

2011-12-28T06:18:00.002-08:00

To properly compete in the information economy, one should always consider the cyclical stage of the targeted terrain as a decision point.

Assess the Big Tangible Picture of your competitive terrain.

Position yourself toward the opportunity before the market cycle rises

Influence the opportunity before the cycle declines and the configuration of the terrain changes.

Q: Do you know how to assess your competitive terrain?

Suggestions

2011-12-18T06:18:00.001-08:00

source: goodlightscraps.com

For those who are interested in unique holiday gifts:

We suggested the following items:

Chinese cultural items from Of Course Lion Source;
Chinese tea from Red Blossom Tea;
Chinese culture books from Dr. Roger T. Ames;
Unique stuff from Jadedragon.com;
Strategy and Leadership books from Mark McNeilly;
Chinese strategy books from Dr. Ralph D. Sawyer;
Books on consulting, technical project leadership, problem-solving and writing from Gerald M. Weinberg (His books are also available in the e-book format.);
Mindjet's mind mapping software for the strategists who like to brainstorm; and
IDM's desktop programming tools for the programmers who like quality tools.

Side note:
Mark McNeilly has just updated his Art of Business book. His pragmatic view on how to build a plan with his version of Sunzi strategic principles, is quite good.

We also highly recommended Dr. Sawyer's latest book on Ancient Chinese Warfare .

[DISCLAIMER] We were not compensated for our suggestions.

For those who are in a charitable mood, please donate your spare books to BookMooch. Please respond kindly to those who are in need of various reading resources.

We wish Happy Holidays to our readers

--- Compass360 Consulting Group

Crisis and Opportunity

2011-12-12T06:18:00.000-08:00

Source: Chinese Calligraphy Store.com

"... Every crisis carries two elements, danger and opportunity. No matter the difficulty of the circumstances, no matter how dangerous the situation...at the heart of each crisis lies a tremendous opportunity. Great blessings lie ahead for the one who knows the secret of finding the opportunity within each crisis. ... " -Chinese Proverb

Mozilla is one of those companies who thrives on the web user's need for a better browser. As a pony with a few tricks, they can only go so far.

Presently, Mozilla is too depended on one sponsor and have not created a relevant and on-going profit-generation niche.

Mozilla's Strategic Position

Following is a listing of Mozilla's current (and possible) dilemmas:

Losing Google as a sponsor has now become a possibility;
Losing their position to Google's Chrome;
Losing chief talent to Facebook;
Losing their reputation of being a secured browser; and
Mistreating their enterprise customers by mismanaging their product releases.

How can Mozilla improve their situation especially when they are caught between a rock (the partnership with Google) and a hard place (the decline of Firefox users)?

By recognizing the significance of the CarrierIQ fiasco, Mozilla should focus on the paramount need for browser's safety and security. ... They are now centering their attention on the mobile phone industry.

Solution

Mozilla should disregard their current position and focus on developing quality features.

Our Compass Forecast

In the information economy, transparency and safety are never guaranteed. The company who maintains the social-economic attention of those who desired attention and digital security, will always have a market.

Regardless how technology evolves, the offering of quality products and/or quality services is essential. Focusing on the basic users needs is paramount to one's success.

Developing digital security for all significant high-tech. devices is an unique niche that usually goes on a infinite mode. The evolutionary contest between the "black hat" hackers and the computer security developers (aka. the gatekeepers) is continuous. The gate keepers are focused on building a better wall. Occasionally, they might upgrade it by adding a few unique counter-offensive measures. ... Where the other side concentrates on the identification of the various weak points within the wall. Sometimes, the hackers win. For the time being, the developers are winning while the users are just surviving.

History shows that the most sophisticated defense are for those who can afford to have it regardless of the medium.

Side note

One exception to this scenario is the Blackberry phone . This device has great security features for those who can afford it. ... It seems that President Obama used to be a big user of this phone. ... Marketwise, it also does not appeal to the consumers for a myriad of reasons. ... Do not be surprised if a relevant party will buy RIM within the next 12 -18 months.

Ruminations from the Compass Desk

In unsettling times, the successful strategists usually look past their own marketplace and focus on the various niches within the global digital marketing terrain, where one has a strong expertise and the competition is quite weak. Whatever specific area that they are weak at, the company will recruit the best.

When one becomes successful, he/she should be aware of the increased probability of newer competitors sprinting into their niche.

When assessing one's own competitive position in their specific market terrain, the chief decision makers must consider the connectivity of the following points: the configuration of their marketplace and beyond, the state of their organizational leadership, the logistics of building and maintaining their operation, the state of resources, the technology and the strategic gameplan.

By connecting the dots before the competition does, one can position themselves into a superior state of strategic effectiveness.

The question is, are you in that position (of strategic effectiveness) yet?

The Reality of Playing the Strategy Game (4)

2011-12-09T06:18:00.000-08:00

{ We offer a thank you to Mr. TrhSkr of Tx. for the suggestion of this article. }

In the pro sport business, each previous game is studied repeatedly. Each side knows the tendencies of the other. How does one surprises their competition during the game?

The Concept

1. Understand the tendencies of of both sides.

2. Add one to two new wrinkles to the gameplan.

The design of the surprise plays is to be conceptually opposite of the implementer's tendencies while connecting toward the anticipated tendencies of the competitors.

Beside deceiving and manipulating the competitor's mindset, this tactical mean could also invigorates the implementer's team.

Implementation During the Confrontation

Influencing the competition toward one's psychological direction by targeting on their tendencies. Soon, they will believe that they really know their counterpart's decision management process. The occurrence of an anticipated situation allows the chief decision maker(s) to implement the deception.

The success usually energizes the implementer's team while demoralizing the competition. Idealistically, the outcome must be a momentum changer. They rarely lead to an immediate win.

You can find more information on this topic by reading the following Chinese strategy classics (i.e., Dr. Sawyer's Seven Military Classics of Ancient China, 100 Unorthodox Strategies, Sun Bin's Military Methods, Dr. Ames's translation of Sun Bin, etc.)

Reality Check

Do you know if your competitors are gaining market share by deceiving the customer base?

If so, how are you countering it?

Solution

Always assess the Big Tangible Picture before deciding on anything relevant.

Stay focused to one's grand objective by avoiding the feeling of fear and panic. Remember to ensure that the attributes of one's grand objective connects to the Big Tangible Picture.

Then, ask yourself the following question- who is ahead of the curve and the competition? If you want to know what are the rest of the questions, send us a note. Or ask your "loco" Sunzi reader/expert if he or she knows those questions.

Through the comprehension of the Big Tangible Picture, one feels no fear, no uncertainty, and no doubt.

The Reality of Playing the Strategy Game (3)

2011-12-06T06:18:00.000-08:00

commons.wikimedia.org

What is your plan when you know the moves of your opposition and vice-versa?

Many weeks ago, UCLA's played against the University of Utah's in a game of football. The Utah's team current offensive coordinator Norm Chow worked under Rick Neuheisel, UCLA head coach for the last three football seasons. Both people knew how each other thinks.

Said Neuheisel: "It's the ultimate game of rock, paper, scissors. I know what he does in situations, but he knows I know and may do something different."

So, who had the advantage?

The person who understands the Big Tangible Picture and have the grander strategic experience to make the good decisions. He would understand the impact of the weather in the terrain and utilizes that factor into the strategy.

The final score was: Utah 33 UCLA 6

Click here for the aftermath of not achieving the given goal.

Notes from the Compass Desk

In the sport competition business, almost everyone in the sport play-calling business knows what their counterpart is going to decide in certain situations. They have near to full access to video data and numeric data. After hours of compiling and reviewing the data, they are focused on determining their counterpart's situational tendencies.

It is rare that one changes their decision approach in midstream. They regularly focused on their strengths while concealing their obvious weaknesses. Then, there are those who who can change their decision approach, usually have a very strong strategic foundation that enables them to be efficient and be flexible.

It is almost the same way in real life. Most people regularly ramrodded their approach to their opposition without ever assessing the Big Tangible Picture of their settings (and beyond). Sometimes, they encountered the risk-consequences that could change their grand objective and their tactical approach. ...

In your marketplace, do your competitors know your objectives and your tactics? Better yet, do you know your competitors objectives and tactics?

Focusing on achieving peak efficiency is what most companies do. ... After awhile, achieving efficiency could only go so far. The smart companies usually focus on beating their competitors while achieving the optimal position within their marketplace. ... Knowing the plans of your competitor and beating them to the punch lowers the long term costs and the timeline. Thawing the opposition's plans is the essence of strategic effectiveness.

Do you know how to achieve this unique objective?

{updated on 12.08.2011}

Assess the Big Tangible Picture: Connecting the Dots from the Geographic Terrain to the Marketplace

2011-12-02T06:18:00.002-08:00

from Stratfor

The following example focuses on where the actual physical terrain becomes a macro variable in the enhancement of one's position within the regional marketplace.

The dense river network in northwestern Europe (not to mention more roads and railways) affords that region much lower transportation costs. Thus, Northern nations have a significant competitive advantage in exporting. The one trick that the Southern nations (Italy, etc.) had up their sleeves—devaluing their currencies to make their exports cheaper—ended with the adoption of the euro. - Stratfor

Germany gained a trade surplus while Italy became stuck with a national debt at 120% of GDP.

In summary, those who have seized the advantages of their location, will usually prevail on the long term.

Following are some of the questions that we have used to analyze our client's competition:

What are the current state and the future state of each competitor?
Which competitor has the superior accessibility of the market terrain?
Which competitor has the easiest market terrain for reaching their goal?
Which competitor has the best approximation to completing their goal?
Which competitor has the "greater" strategic vantage of the terrain?

* These general questions are based on the various Art of War principles. It has been rewritten for this post.

Click here, here and here for the latest Euro update.

In summary, how do you and your strategy team viewed the Big Tangible Picture of your marketplace?

Focus on identifying the current state of your terrain. Determine the configuration of your terrain. Then, connect the relevant dots before the competition does. Then reap the rewards.

{The post was updated on 12.05.11 .}

More Comments from Our Audience

2011-11-28T06:18:00.000-08:00

“…I think your process is unique—it will be an advantage. Certainly no one else is approaching competitive analysis and project planning the way that your group is presenting it…” – Confidential source

“Your group have built a unique and efficient strategic solution for complex situations.” – Anonymous

The Big Tangible Picture: The State of the Information Economy

2011-11-23T06:18:00.000-08:00

In the old days, the large companies played the strategic positioning card of sitting on the hands and waited to acquire their young competitors with their mountains of cash reserves. They were usually focused on milking their cash cows while strengthening their market position through political-economic-social connections.

In summary, some of these larger companies became fatter and complacent by centering their attention on efficiency and quality. When the timing is right, they acquired their innovative competitors with an optimal-exploitative approach.

In the era of the information economy, some of the younger companies are "aggressively" innovating. Some of these CEO's do not even cared about being absorbed by larger companies. They wanted to build something that would last a great deal of time.

These fat dinosaurs will disappear at some point of time. No dynasty lasts forever.

Happy Thanksgiving.

Connect the Dots and Reap the Rewards

2011-11-18T08:18:00.000-08:00

Whenever there is a political-economic-social correction, one should expect the people on the top of the value chain to change their operational focus. On the long term, these type of jobs will continually be exported to offshore regions. The U.S. workers will be hurt. The effect will then trickle down through the social-economicl value chain. The history of the U.S. manufacturing economy tells us that the grand objective of achieving cost efficiency and operational effectiveness is the name of the game.

The way of the information economy is that the technology enables the various business organizations to create jobs at other locations. It also increases the productivity while decreasing certain low tier jobs that requires redundancy and massive paper work. It is only a matter of time, that the certain niches with the U.S. service industry will be reduced to a minimum.

In a virtual information economy, a macro correction in one region could later create another opportunity for another region. The "Yin and Yang effect" is what one would see if he or she pays attention to the Big Tangible Picture (BTP).

Connect the dots before the competition does and one will prevail.

[ Updated on 11.25.2011 ]

Finding the Path of Least Resistance

2011-11-15T04:38:00.000-08:00

source: xkcd.com

Before coming to that conclusion, can you see the Big Tangible Picture of this situation? ...

Compass Rule

The level of complexity is sometimes proportional to the level of reward.

One former mentor used to remind us that one's choice of a strategic solution is usually based on their belief in getting things done and their strategic experience. It is also greatly determines one's view of life and their level of efficiency.

The Dao of Strategic Assessment #7: Assessing the AoW's Audience

2011-11-11T01:11:00.000-08:00

“These are the ways that successful strategists are victorious. They cannot be spoken or transmitted in advance. ... Before the confrontation, they resolve in their conference room that that they will be victorious, have found that the majority of factors are in his favor. Before the confrontation they resolve in their conference room that they will not be victorious have found few factors are in their favor.

If those who find that the majority of factors favor them, will be victorious while those who have found few factors favor them will be defeated, what about someone who finds no factors in their favor?

When observing from this viewpoint, victory and defeat will be apparent.”

- Art of War 1 (Paraphrased from the Sawyer's translation)

Someone recently asked us the following five questions?

What are those factors that the ancient Chinese Generals used for strategic assessment?
Can you use those factors for modern business?
Why are those factors not taught out in the open?
What is the difference between assessing strategically and estimating?
Why is strategic assessment important to strategic planning?
Why do good plans fail?

We will reveal the answers in the future. However, you can ask your local Sunzi reader or expert and see if he/she knows the answers.

Questioning the Process Behind an Assessment

2011-11-08T04:38:00.000-08:00

Below is an except from an interesting article from the Wall Street Journal The full article may be read here.

"Shortly after the end of the Cold War, an American defense official named Phillip Karber traveled to Russia as an advance man for a visit by former Secretary of Defense Frank Carlucci. "We were meeting with Russian generals," Mr. Karber recalls, "and we met a three-star who told us they had 40,000 warheads, not the 20,000 we thought they had." It was a stunning disclosure. At a time when legions of CIA analysts, Pentagon war-gamers and arms-control specialists devoted entire careers to estimating the size of the Soviet arsenal, the U.S. had missed the real figure by a factor of two. ..." WSJ 10.24.11

Whenever the expectations preclude the assessment, it is time to question the process that was being used.

Following is a listing of critical strategic factors of what an ideal strategic assessment process must emphasize on:

the macro and micro configuration of the grand setting and the many situations that lie within it;
the psychological configuration behind the chief decision markers and their various teams; and
the logistics behind the process.

Is your project team doing it? ...

Connect the Dots and Reap the Rewards

2011-11-02T06:18:00.000-07:00

wikimedia.org

Comprehending the tangible state of the information economy begins by understanding how things are connected.

For today's challenge, connect the dots between Greece, Wall Street and Main Street.

The cartoon is from

Wallstreetformainstreet.com

Basic Compass Schema

Identify the political-economic and social connections from Greece through Wall Street and then to Main Street
Determine their impact by recognizing the momentum and its connection to the Big Tangible Picture (BTP)
Examine the risk attributes. of the impact
Analyze the quality of the collected market intelligence
Lead with the decision.

Compass Rule: When one connects the dots, he or she reaps the rewards.

The Reality of Playing the Strategy Game

2011-11-01T01:11:00.001-07:00

An associate (Mr. Dragon) who is a fan of the iptv technology, sent us this article that gave an interesting fact- 88% of all IPTV marketers don't have an strategy.

After a moment of message swapping, we all concluded that operating without a strategy is a habit of many people. Some of these people are in love with the notion of doing stuff from the seat of their pants. They loved to be inspired and having the feeling of grinding, grounding and pounding their way through the numerous obstacles. Finding the path of least resistance is not in their agenda. {There is a grand exception to this idealistic setting. Do you know what it is? ...}

In some cases, they over-exceed the expected timeline and the budget. Do you think that is the best way to succeed in one's goal?

A few years ago, we performed an inpromptu survey on how many organizations were operating without a real tangible strategic plan. Without getting into the deep specifics, the count was over 50%.

In most cases, some of these companies were operating on a quarterly basis. The life cycle of their projects usually averaged about three months. Most of their chief decision makers never took the time to think past the three to six months timeline. Their quarterly strategic plans resembled to the particulars of a "Things to Do" list.

Due to the current political-economic uncertainty, this tradition of "playing the quarterly game without a long term strategy" will still continue.

Our immediate solution for this type of short term strategic activity is the Compass script.

Failure to Plan is to Plan to Failure

Those who possessed the strong "political, economic and social" influences, are usually able to endure the err of not building a good long term strategy. It is one of the few exceptions to the "Failure to Plan is to Plan to Failure" rule.

Side Notes

In our strategy book project, we have modernized our listing of strategic and tactical principles. It is based on the Art of War (AoW) and the other components from the Seven Military Classics of Ancient China (Seven Strategy Classics). We are still debating on including a list of exceptions where certain tactical principles should not be in play regarding to specific situations.

Ask your local Sunzi reader/expert if he or she knows the exceptions to certain principles from the Art of War and other Chinese strategy classics.

Our current set of priorities does not include the publishing of this book for the next three to six months. We are currently too involved with our macro objectives.

Compass Trend (7): More Notes on Robotic Trends

2011-10-27T04:18:00.000-07:00

We have not talked about robotic trends in a long time. Click here and here on the direction of our information society.

In this economy, achieving peak (operational) efficiency is the name of the game for those who could not innovate. They focused on cost-based efficiency. Depending on the industry, some of the solutions are robots and inexpensive labor. One should expect to see a gradual labor squeeze in certain service-based areas as technology slowly replaces human labor while health costs rise.

"Lean and mean" is the operational motto of the information economy.

To thrive in these times, one needs to focus on a relevant solution without getting overwhelmed by the irrelevant hypes of easy solutions.

The Compass Solution

Assessing the state of the Big Tangible Picture (BTP) and finding the un-mined mines that are not touched by automation sounds easy. Collecting the data takes a great deal of time and effort. Knowing how to do it is the challenge.

Summary

The successful participants of this hyper-motion information economy usually thrive by their ability to pre-positioning themselves ahead of their competition. The experience of comprehending the Big Tangible Picture enables them to decide on their objective, their approach, their means and their modes.

Our research tells us that " ... one's current understanding of the macro and micro details of their Big Tangible Picture usually leads to one's view of what the plan is. ..."

Poor understanding of the Big Tangible Picture sometimes leads to poor planning. Poor planning leads to many negative effects. The lesson is that one who fails to plan usually plan for failure.

So, do you plan by understanding the Big Tangible Picture?

Better yet, do you know how to build your plan?

Jiang Tai Gong: The Supreme Strategist

2011-10-21T01:11:00.000-07:00

An associate of ours wrote the following essay on Jiang Tai Gong for Jade Dragon.com. (With his permission, we took the liberty of optimizing some parts of it .)

In our global society, Sunzi’s (Sun Tzu) Art of War is known as the most well-written and popular strategy classic from China. Some of the other popular Chinese military classics are Sun Bin’s The Art of War, Huang Shek Gong’s Three Strategies and Wuzi’s Art of War. Before Sunzi’s Art of War was written, there was Jiang Taigong’s (JTG) Six Secret Strategic Teachings (also known as Six Strategies of War).

Jiang Taigong was a real historical character named Lu Shang (also known as Jiang Ziya) who, in the 11th century BC, became advisor to King Wen and his son King Wu, founders of the Zhou dynasty (1122-771 BC). He was supposedly instrumental in aiding the fall of the Shang Dynasty (approximately 1700 BCE - 1045 BCE) and in establishing the Zhou (1045 BCE – 221 BCE). He was the prime minister for the first Zhou emperor and his loyalty and farsightedness in governing spread his fame throughout China.

The legend of Jiang Taigong captured popular imagination. Jiang Taigong is honored throughout Chinese history as the first great military advisor and the father of strategic studies.

He was credited with the feat of writing the first military strategic book Liutao (Six Secret Strategic Teachings). Liutao has been considered a highly important and proven source for military wisdom over the centuries, where it continues to be held in high esteem among contemporary Chinese strategy professionals.

History

Note: The many interpretations of Jiang Tai Gong’s biography propelled this writer to focus on the apparent.

Jiang Taigong (first known as Lü Shang of Lù-shi clan) was later known as Jiang Shang, then Jiang Ziya and Jiang Taigongwang).

As Lu Shang, he served King Zhouwang, the last ruler of the Shang dynasty (16th to 11th century BC) as an expert in military strategic affairs. The Shang ruler was a tyrannical and corrupted ruler who spent his days carousing with his favorite concubine Daji and mercilessly executing or punishing honorable officials and all others who objected to his ways.

After many years of working for the Shang ruler, Lu Shang detested him so much that he hoped that some day someone would call on him to help overthrow this evil tyrant. One day the Shang ruler came up with the extravagant goal of building 'Lu Tai' (deer platform) palace that would glorify him as a deity. This task became such a burden to the people that the hungry and sick were dying in the countryside.

Lü Shang abandoned his post and left with his wife Ma-shi to go to the west. They suffered many years in poverty and his wife later left him. During that period, Lu Shang knew that he would have another opportunity that would utilize his talent. All he needed to do was to be patient. Lu Shang waited till he was 72 years old for the next opportunity to come along.

aggas2nd.blogspot.com

Meeting King Wen
After his wife left him, Lu Shang went to Wei-shui River (near today’s Xi'an) to fish, knowing that the future Zhou ruler Wenwang (located in central Shaanxi) would come along one day and meet him. The opportunity occurred one day, when King Wen decided to go hunting in the area near the river, where he saw Lu Shang sitting on the grass, fishing with a bamboo pole that had a barbless hook attached to it. (Some claimed that there was no hook on the line.) The hook was then positioned a few feet above the surface of the water.

This unique act of fishing is based on Jiang’s theory that the fish would come to him of their own volition when they were ready. This action requires the fisherman to be patient and devise the philosophy of "if one waits long enough, things will come their way."

As King Wen of the Zhou state (central Shaanxi), saw Lu Shang fishing, he was reminded of the advice of his father and grandfather before him, which was to search for talented people. In fact, he had been told by his grandfather (the Grand Duke of Zhou), "… that one day a sage would come and help him to rule the Zhou state."

When King Wen saw Lu Shang, he immediately felt that this was an unusual old man and began to converse with him. He discovered that this white-haired fisherman was actually an astute political thinker and military strategist. This, he felt, must be the man his grandfather had mentioned. He took Lu Shang as his coach to the court, appointed him the role of prime minister, and then gave him the title Jiang Taigongwang (Hope of the Duke of Zhou). This was later shortened to Jiang Taigong.

The Lesson

One account of Jiang Taigong's life, written long after his time, said he believed that " … a country could become powerful only when the people prospered. If the officials enriched themselves while the people remained poor, the ruler would not last long. The major principle in ruling a country is loving the people through the reduction of taxes and slave labor. … " By following those ideas, King Wen immediately and rapidly strengthened the prowess and power of Zhou state.

After King Wen died, his son King Wu, who inherited the throne, decided to send troops to overthrow the King of Shang. But Jiang Taigong stopped him, saying: "While I was fishing at Panxi, I realized one truth—if you want to succeed you need to be patient. We must wait for the appropriate opportunity to eliminate the King of Shang."

Soon it was reported that the people of Shang were so oppressed that no one dared to speak. King Wu and Jiang Taigong decided this was the time to attack, for the people had lost faith in the ruler. A bloody battle was fought at Muye (35 kilometers from the Shang capital Yin, now Anyang in the Henan province).

With battle drums beating in the background, Jiang Taigong charged at the chief of the troops, with 100 of his men and drew the Shang troops to the southwest. King Wu's troops then moved quickly and surrounded the capital. Many of the Shang troops defending the capital were untrained slaves. They immediately surrendered, enabling Zhou army to capture the capital.

The Shang king set fire to his palace and perished in it. As for Daji, one version has it that she was captured and executed; another version was that she took her own life. At that moment, King Wu and his successors established the rule of the Zhou dynasty all over China.

Jiang Taigong was made the duke of the State of Qi (today’s Shandong province), which thrived with effective communications between the king and the people. He also assisted in building the economic state of Zhou dynasty.

After some time, Jiang Taigong retired from his post before King Wu became wary of him.

The Other Lesson

There are many variations related to the biography of Jiang Taigong. The two situations "Meet the King Wen" and "Advising King Wu" has been used on many levels to explain the significance of patience and control. The story also presents a sophisticated message that is applicable in any strategic scenario: "Wait until circumstances favor you."

Trivia (mainly rumors) related to Jiang Taigong:

It has been said that Fan Li, Zhang Liang, and Zhuge Liang were also readers of the Jiang Taigong’s book for the ideas on the myriad approaches of prevailing over their rivals with great resources
Wang Xu (also known as the Master of Ghost Valley) who started the first academy of military studies during the Warring states, taught the concepts of Jiang Taigong writings to his students. His top students were Sun Bin, Sui Chang and Zhang Yi
Sun Bin also received this book first and later received the Sunzi text from his teacher Wang Xu
In the river near Xi'an there is a big stone with an indentation that said this was the spot that Jiang Taigong resided in his act of fishing
Rumors say that the following strategic classics were also attributed to Tai Gong:
Huang Shi Gong Ji (Huang Shi Gong's Records) [later Sui Dynasty]; Huang Shi Gong San Lüe (Huang Shi Gong's Three Schemes); and Yin Fu (Concealed Symbols)
Many legends on Jiang Taigong were collected in the Ming dynasty (1368-1644) and can be found in a fictional work Fengshen Yanyi (Tales of Gods and Heroes)
There are various parts of China and Asia that honor the achievements of Jiang Tai Gong

Other Matters

During his retirement, Jiang Taigong took time to write a manuscript on how to effectively lead an empire based on his conversations with King Wen and later King Wu (who succeeded to the throne on Wen's death). This manuscript was Tai Gong Liu Tao (translated as “Tai Gong's Six Secret Strategic Teachings”). It is consisted of advices on how to organize a potential empire, military advice describing methods of insurrection and revolution that were instrumental in the overthrow of Shang dynastic rule, and a wide range of strategic insights and tactical instructions in every arena of human activity.

Six Secret Strategic Teachings (Six Secret Strategies of Conflict)

The Six Secret Strategic Teachings is a good book for "newbies" who are interested in strategic consulting and advising. The six chapters guided the readers in the art and science of effective strategy and leadership from a top to bottom mode.

The first two "chapters" deal with the duties of the organization and the natural transition of power to the principal rival if the organization fails. This scenario can be described as a "respective" interplay of "yin and yang.".

The Civil Strategic Secret: The first chapter stresses the importance of recruiting talent, managing the organization, and valuing developing a proper relationship within your client and your own organization. Once the bond of absolute trust is established, they will do almost anything for you.
The Military Strategic Secret: The second chapter accentuates the importance of how to prevail over the opposition and how to build a territorial domain by the following actions: Cultivating yourself and organizing your own group in order to govern your external settings and pacify the world. The concept of "conquering without a single tactical battle" is also greatly emphasized. (It is similar to Sunzi's concept of "winning a war without a battle.")
The Dragon Strategic Secret: The emphasis is on how to lead wisely through various situations by understanding the developmental stage of the operational command, the organizational order, and the liaison.
The Tiger Strategic Secret: The emphasis is on the tactical essentials, including matters related to proper logistics.
The Leopard Strategic Secret: This chapter focuses on the tactical specifics for identifying the critical path toward the completion of one's objective
The Dog Strategic Secret: This final chapter focuses on the tactical specifics for trapping the target (i.e., encircling and intercepting). There are also good pointers on selecting and training the desired professionals for a team and coordinating the personnel's and resources toward the target.

This book was compiled into a single body of strategic work known as Wujing Qishu (also known as The Seven Martial Classics) during the Sung dynasty. It was designated as an essential material for the imperial military examinations and thus came to inexplicably affect subsequent military thought. Separately each of these seven classics complements each other in terms of strategic leadership.

This set of classics was read by military officials and high government officials for many hundreds of years. It also played a great role in the socialization of scholars, officials, and military officers.

Conclusion

The thoughts of Jiang Taigong have been known for 3000 years ago and we believed that it remains relevant for today's CEOs, managers, and leaders.

His concepts of effective strategy and leadership have been widely reinterpreted and applied in the corporate world today. A sound appreciation of Jiang's concepts is a requirement for both sophisticated and budding strategic leaders.

As mentioned before, reading this essay is a good start for those who want to start an uprising in their strategic setting.

Side Notes

One of the most important content of this book can be found in Chapter 1 and Chapter 2 (civil secret teachings and martial secret teachings). It delineates various ways of "suggesting" ideas and perspectives to people.

One lesson that can be learned from reading Jiang's essay was the importance of "thinking grand " in one's own aspiration.

Another significant lesson is knowing the position where one stands in the political-economic-social value chain. By carefully reading this essay, one learns the reason behind that point. ....

The Three Categories of Strategists

Inspirational leaders emphasize on messages. The professionals focus on understanding the target and the logistics. The amateurs talk about tactical measures. So, which of the three categories are you positioned at?

Ruminations From Compass Desk

Many years ago, a so-called Sunzi expert told his followers that all they needed to know about strategy was to follow the principles of the Art of War. Interestingly, he did not know much about the various operational measures and the unique particulars that are hidden within the Seven Military Classics. One reader of his posting found his "expert" view to be quite amusing.

The Essence of Strategic Success (2)

2011-10-18T06:18:00.000-07:00

The Importance of Having a Big Tangible Picture (BTP)

By seeing the configuration behind their competitive terrain, the successful strategists are able to do the following:

Create the opportunity;
Find the opportunity; and
Wait for the opportunity

Wait for the Opportunity

Underdogs who wait, sometimes prevailed over the favored by finding the various undisclosed relevant variables (the components of the BTP) that give them the strategic advantage (aka. strategic power). The specifics behind these critical strategic factors typically give the strategist the prospect of certain occurrences.

Comprehending the configuration of the BTP usually enables one to do the following:

Knowing when to stay on course;
Knowing when to add more resources to the current campaign;
Knowing when to update the objective; and
Knowing when to exit.

Afterthoughts

A top-tier strategist once told us, that " ... Understanding the current state of the grand terrain and then forecasting the next change are two of the many ways that would give the up and coming strategists the professional credibility that they all sought. for. It is more effective than the constant preaching of 'basic strategic leadership values'."

After a moment of contemplation, we realized that those who preach the holiness of the Art of War (or any of the Seven Strategic Classics) usually cannot describe how to methodically use it. They have a tendency of treating each quote like a fortune cookie saying. If their followers believed that perspective, we wished them well.

We believed that the use of the strategic process that supported those principles, is a better starting point for those who are looking for an efficient solution. The proper execution of the process is the key to most successes.

Connecting the Dots and Reaping the Rewards

2011-10-16T06:18:00.000-07:00

To understand the state of the information economy, the first step is to know how everything connects.

Technology Evolves First

It has been said that necessity is the mother of all inventions. Assumption is the father of screwups. Whether there are useless wants or significant needs, devoted (and economically-driven), the users adjusted to the new changes. Most features are rarely used.

Compass Rule: When the impact of the current technology meets the sociological and economical wants of the clients, the social-political value of the technology increases.

Click here and here for two good examples that verified the above Compass rule.

Afterthought

To stay ahead of the curve, one should not get locked into the convenience of the technology. ... Be aware of the various vendors who needs your loyalty by quietly pushing their lock-in strategy onto you.

Technology is the Opium of the Masses

Heavens know that each one of us loved our technology. Remember that it is just a tool, not the end of all means. Tools come and go. Some evolve. Most become obsolete.

Using the Chinese strategic principles as a foundation remains the constant for some people. Transforming it to something pertinent is the goal of most serious strategists. The amateurs talk about it like if it is magic. The professionals who know, don't say.

The State of the Information Economy

In the information economy, the implementation of deception is paramount.

Regardless of the times, many businesses indirectly has a myriad of Chinese strategic principles as their strategic foundation. Implementing it covertly is the key to some level of success. Most of the masses are so overwhelmed with their situation that they cannot see the various subtle influences around them. In summary, the deception would be somehow revealed. These implementers would then disappeared and wait for the next opportunity.

It all begins by knowing the Big Tangible Picture (BTP). The first step is knowing how everything connects in one's world.

So what are the rewards for knowing the BTP, he/she can anticipate "the next big change" in their competitive arena. At that moment, Then the chief decision makers are able to comprehend whether the act of profit maximization and/or cost minimization is possible.

Competing in the Global Economy: Stopping the Pacesetter

2011-10-09T06:18:00.000-07:00

The Economist

So how does one stop a pacesetter who is quite ahead of the game?

"If one is behind, use the yin tactics.

If one is ahead, use the yang tactics. "

- The Seven Military Classics of Ancient China

In terms of weiqi (GO), this pacesetter is more than a few stones ahead of their competition. The configuration behind their macro approach can be found in this basic list of weiqi (Go) strategies.

By understanding the metaphor that the Pacesetter is using, these competitors could be able to determine how he makes his decisions.

(wikimedia.org)

Before an underdog competes against the favored, he or she must understand the configuration of their Big Tangible Picture (BTP).

Following is a generalized list of those things that one must focus on:

the informational flow of one's grand terrain and beyond;
the influence of the chief decision makers;
the belief of the chief decision makers; and
the judgement of the chief decision makers.

In your case, do you know the configuration?

The Process

The initial steps are:

Knowing the truth of one's Big Tangible Picture is the first step; and
Perceiving the hard and soft circumstances that lie within it.

Utilization of those two steps usually improves the possibility of prevailing over the competition.

The ideal process is to implement a strategic solution that requires no obvious effort.

Notes from the Compass Desk

Unlike what the amateurs preached to the masses, the favored does not walk around with a copy of the Art of War in their hand. They lead by example through the action of internalizing their understanding of the various strategic classics by operating beyond its format. It has been rumored that these chief decision makers followed the strategic views of Jiang Tai Gong and Wuzi's. Some of our associates preferred to carry a copy of WSJ or NYT.

To play against the favored, one must quietly "talk the walk" and "walk the talk. "

Read the Big Tangible Picture before deciding. Focus on making a progression of good decisions. So, good things will happen.

So how does the favored internalizes the strategic principles? We would only presumed that they usually talk about it with their respected peers and practice this arcane skill in their close quarters. It is rarely spoken out in the public.

Maneuvering in the "Informational" Influence Society

2011-10-08T06:18:00.000-07:00

Living in an information economy means that some of us are being overwhelmed with many pressures and many influences.

Here are two ways for staying focused on one's objectives:

Using the Principles of Relax, Center, Ground, Calm and Whole

By focusing on the constant practice of those five principles, one becomes focused.

Use a prioritized script of objectives and approaches as your compass

Script your list of objectives/approaches on a sheet of paper instead of using a ipad or a pda. ... Who knows? You might develop "a mind to matter" connection with your objectives.

Seriously, if you want to visually connect the dots, we recommended software tools like Mindjet or Visio.

Good luck!

Update: You can find more information on various principles at this site.

Read the Big Tangible Picture and Decide

2011-10-03T03:38:00.000-07:00

(wikimedia)

Click here for an interesting story from Malcolm Gladwell of the New Yorker on how to combat the Goliath.

Ranadive, the coach of the high school team, solved his problem of playing against teams of physically-talented individuals by comprehending the configuration of his Big Tangible Picture (the basketball court, the physical prowess and skills of his teams, etc.) His solution originated from his understanding of how everything is connected in terms of the configuration of the terrain, the leadership and the logistics. Through this grand understanding, he was able to devise a simple and balanced strategy of pressing, stealing and scoring by layups.

However, no Big Tangible Picture stays constant.

Ranadive's team finally lost in the finals due to their inability to adjust to the new situation.

Ruminations from Compass Desk

Based on the article, Ranadive should have seen it coming. He should have realized that nothing stays constant. The status and the level of a competitive encounter usually determines how formidable an competitor is.

In terms of macro strategy development, the reliance on a particular operational mean is not always a good idea. When a macro variable abruptly changes, the strategist must have the tools and the tactics to adjust to it.

In terms of tactical options, Ranadive's could have run a 1-3-1 half court trap or a 1-2-2 trap from the mid-section of the opposition's court to pressure the pass. If Ranadive's team scored, they would run trap defense #1. If they did not score, their alternative would be running defense #2. Whenever the second or the third squad was deployed, the coach could have called for a different type of defense that the current opposition was not prepared for.

He could have accepted the possibility of fouling the players with his second stringers while maintaining their approach of pressing. Then, using the first stringers against the opposition's second stringers or putting them in play in the last six min of each halves. ... There were so many tactical moves that Randive could have deployed. Whether his team was prepared to implement it, is a different story.

There are not many people who are used to thinking in terms of contingency assessment and planning during real time. ... They are usually over-focused on achieving peak efficiency repeatedly while avoiding the importance of preparing for a worst case scenario. During an encounter with "risky" uncertainty, these non-strategists have a tendency of hoping something might happen. As some of us know, change is not a strategy. Hope is not a destination.

Compass Rule

To prevail in an extreme competitive situation, one must use their entire toolbox of implements.

Side note: We were going to use the principles of our Compass process (Portions of our process are based on the Seven Military Classics of Ancient China and the Sun Bin's strategy classic) to present more strategic points. However, we are saving it for our book.

Another Note on Sawyer's Latest Classic

2011-10-01T01:11:00.000-07:00

Michigan War Studies Review recently reviewed ANCIENT CHINESE WARFARE:

“[Ancient Chinese Warfare] marks a major advance in the state of our knowledge, a rich repository to be mined not only by historians of China but also world historians, scholars of comparative military history, and students of the origins of war and the state. Its impact will be substantial, far-reaching, and unsuperseded for many years to come.”

This is a very good review.

A consultant and independent scholar based in Massachusetts, Ralph Sawyer is best known to both academic historians and a wider public for his path-breaking 1993 translation (with Mei-chün Lee Sawyer) of the Seven Military Classics (Wu jing qi shu);[1] although "Sun Tzu's Art of War" (Sunzi bingfa) had often been translated, several of the less celebrated works in the eleventh-century collection were for the first time made accessible to a non-specialist Western audience. Sawyer has since published several Chinese military and philosophical texts in translation as well as other books on the Chinese military tradition.[2] The latter consist largely of passages translated from traditional Chinese writings, arranged chronologically and interspersed with Sawyer's commentary; the overall flavor is very similar to the compendia (leishu) produced by Chinese scholars in the Qing dynasty and earlier. The book under review here is rather different; it is the first of at least two comprehensive volumes on the military history of early China, a work that has been decades in the making.

Ancient Chinese Warfare begins at the beginning, with the archaeological remains from Neolithic times and the early myths and legends that may shed light on their military and political significance. It concludes shortly before the demise of the Shang dynasty in (probably) 1045 BCE. The Zhou conquest of the Shang and the climactic battle of Muye will figure in Sawyer's second volume, which will deal with the Zhou dynasty up to ca. 771 BCE.

Although filled with many lesser claims and assertions, this first volume does not argue for any central thesis beyond the obvious one that armed conflict has had a very large role in Chinese history—something misleadingly downplayed by earlier generations of Chinese scholars and Western Sinologists.[3] In reaction, Sawyer here addresses almost every conceivable aspect of war, with a level of detail as exhaustive as the extant sources (and the publisher's bottom line) allow. To judge by his extensive bibliography and ninety-one pages of notes, Sawyer has collected and digested every relevant book and article in English, Chinese, and, apparently, Japanese, including even obscure, dry-as-dust Chinese excavation reports. The great virtue of this volume is that it makes the refined gist of that material more immediately accessible for both specialists and non-Sinologists. However, every virtue has a concomitant vice. While Ancient Chinese Warfare is certainly an indispensable reference tool, it is far from a sprightly narrative history to be read cover-to-cover for enjoyment.

Before this book, there was not much available in English on the military history of China in Shang times and earlier: a few articles on specialized topics (such as the chariot), some outdated books on weapons as works of art or artifacts,[4] summaries in more general studies,[5] a few relevant oracle bone inscriptions,[6] and a mediocre translation of Yang Hong's important book on ancient Chinese arms and armor.[7] A quick survey of the contents of Sawyer's book indicates how much more has now been made available in the twenty-five chapters and 414 pages of its main text. Organized along both chronological and thematic lines, Ancient Chinese Warfare opens by recounting the "legendary conflict" between the Yellow Emperor, progenitor of Chinese civilization, and his violent rival, Chi You. Next, two archaeologically oriented chapters trace the development of fortifications in Neolithic times, and another two examine the material remains and political and military organization of the Xia (or Hsia) dynasty (ca. 2200–1750 BCE). Chapters 6–13 deal with the Shang dynasty, its capital and settlement sites, its political history and armed conflicts with rival polities (especially during the reign of the aggressive King Wu Ding, ca. 1200 BCE), and its military institutions, organization, and battle tactics. Then come chapters (14–19) on ancient weaponry: one devoted entirely to metallurgy, another to spears and armor, and another to archery. Chapters 20–23 offer careful treatments of Shang chariots and horses. Chapter 24 attempts to address the elusive, often neglected subject of logistics. The book concludes with a chapter bearing the quintessentially Sawyer-esque title, "Musings and Imponderables."

I will not attempt to touch even cursorily on all the topics in this very wide-ranging book. Instead, I will identify a few issues that deserve special attention: the pervasive problem of evidence, the role of violence in Chinese history, and the place of the chariot in ancient warfare. Any study of China's very early history must rely on three major sources: archaeological finds, oracle-bone inscriptions on cattle scapulae and turtle shells (mostly from the late Shang capital at Anyang), and accounts written much later in Chinese history (such as the first few chapters of the Shi ji or "Historical Records" of Sima Qian, ca. 100 BCE). Sawyer also sometimes (for example, in his discussion of archery) extrapolates backward from the better known practices and techniques of later periods. Where these bodies of evidence corroborate one another or at least point in roughly the same direction, assertions can be made with considerable confidence. This is true in particular of the period from ca. 1250 BCE onward, for which oracle-bones are available. For earlier eras, the level of uncertainty is much higher, and scholars have drawn radically opposing conclusions from the same evidence. Western Sinologists, for instance, have generally taken a skeptical view of the Xia dynasty, while Chinese authorities assume its existence as a given, but disagree sharply over specifics. Against this background of sometimes "acrimonious" debate, Sawyer's exposition often evinces a tentative, double-edged quality: readers must alertly differentiate among the author's own propositions, those he is challenging, and those he is merely repeating for the record. Here, for example, is his bottom line on the Xia:

The resulting portrait depicts a transition from scattered Neolithic settlements to a few dominant fortified towns, accompanied by social stratification, economic differentiation, and gradual immersion in warfare of unspecified character. Thus, given the current startling discoveries and plethora of references to the Hsia throughout Chinese history, it seems more reasonable to assume that a proto-state known as the Hsia emerged through vigorous, aggressive action than to dogmatically assert its nonexistence and then examine the era's military history. Moreover, despite being dubious or perhaps even worthless, it is also necessary to scrutinize traditional historical accounts and conceptions because of their impact on military and political thought in subsequent ages (61).

Sawyer's assessment of a Shang stronghold unearthed by archaeologists also conveys the uncertainty involved in evaluating this sort of evidence:

Yüan-chü's abandonment despite persistent threats from the western quarter suggests that exposed fortresses lacked the tactical power necessary to function as control points in relative isolation. The Shang may have withdrawn its forces as part of a revised strategic approach or simply decided that the bastion had become an indefensible logistical burden because of its inability to rely on locally produced foodstuffs. Nearby relatively mobile steppe peoples such as the Kung and T'u-fang may have already been exerting enormous pressure, but the bastion's disuse could equally be evidence of imperial weakness or debauchery. However, even after vanquishing the local aggressors, King Wu Ting apparently chose not to reoccupy it or station a permanent garrison there, a decision that suggests the ad hoc nature of Shang military efforts, the difficulty of exerting control at a distance, an overall contraction of Shang military power, and perhaps a general disinclination to maintain standing border forces despite having erected numerous strongpoints on the perimeter (140–41).

Now, the ambiguity of the evidence and the difficulty of interpreting it allow scholars studying the Shang and earlier periods to draw only tentative conclusions, but Sawyer's peculiar approach to problematic evidence causes further difficulties. More than once, he scrupulously points out that some ancient text—for example, the "Oath of Tang" in the Book of Documents—is now recognized as a later forgery rather than an authentic Xia or Shang document, yet then detects some kernel of truth, a "vestigial" or "remnant" memory, that somehow redeems it as valuable evidence for the study of early China. As if questionable source materials could ever yield more than questionable interpretive structures or conclusions.

Sawyer does, nevertheless, present some cogent arguments, for example, concerning the centrality of violence in the early Chinese world, a leitmotif of this volume. He contends that signs of intercommunal violence may be found as far back as the early Neolithic in China, that such conflicts led to the gradual emergence of powerful chiefdoms and states, and that the Shang regime glorified the martial prowess that gave it an advantage over its neighbors and rivals. He has no patience for claims that the Shang, the Xia, or even the Yellow Emperor based their authority on superior virtue or moral influence as opposed to raw coercive power. The textual, archaeological, and inscriptional evidence he deploys is overwhelming and his conclusions are consistent with those of Western specialists in Chinese military history who have been influenced by, among other studies, Mark Edward Lewis's influential work on the Zhou dynasty.[8] Viewed in this light, the scorn Sawyer heaps on the notion of rule by virtue is rather odd: he is tilting at long-dead Confucian scholars rather than modern authorities, who have, for the most part, long ago abandoned that untenable position.

More interesting is Sawyer's extensive treatment of chariot use in ancient Chinese warfare, which draws on not only familiar evidence but also comparative data from ancient Europe and the Near East and modern experiments using "martial artists well trained in … traditional weapons" (386). He endorses the view that the chariot was developed outside China and appeared quite suddenly, rather late in the Shang period, as a fully developed weapon system; the archaeological record, he notes, offers no clear evidence of real chariots before the reign of King Wu Ding. For the rest of the period under consideration, chariots were only minor supplements to overwhelmingly foot-soldier armies. They probably served as command vehicles, platforms for observers and archers, and "battle taxis," but their crews could not have engaged in close combat—even using long-hafted weapons—without dismounting, for the physical dimensions of the vehicle would have rendered such efforts nugatory if not suicidal.

Sawyer provides a fascinating litany of the structural weaknesses of Shang chariots, which could break down and leave their crews in the lurch, especially in wet, wooded, or mountainous terrain, where infantry could easily outmaneuver them. The development of chariot warfare on a large scale well after the end of the Shang dynasty presupposes accepted conventions regarding when and where combat should take place, conventions that loomed large in the more chariot-centered warfare of the Spring and Autumn period (722–481 BCE).

The few true Anglophone specialists in the warfare of Shang and earlier times will not find much entirely new information in Ancient Chinese Warfare. But for the rest of us, the book marks a major advance in the state of our knowledge, a rich repository to be mined not only by historians of China but also world historians, scholars of comparative military history, and students of the origins of war and the state. Its impact will be substantial, far-reaching, and unsuperseded for many years to come.

[1] Full title: The Seven Military Classics of Ancient China (Boulder, CO: Westview Press).

[2] Including The Tao of Spycraft: Intelligence Theory and Practice in Traditional China (Boulder, CO: Westview Press, 1998), Fire and Water: The Art of Incendiary and Aquatic Warfare in China (Boulder, CO: Westview Press, 2004), The Tao of Deception: Unorthodox Warfare in Historic and Modern China (NY: Basic Books, 2007), all in collaboration with Mei-chün Lee Sawyer.

[3] This might have been a radical position several decades ago, but recent scholarship (Sawyer's included) on Chinese military history and the much heralded "rise of China" have already done much to change perceptions.

[4] E.g., Max Loehr, Chinese Bronze Age Weapons (Ann Arbor: U Michigan Pr, 1956).

[5] Such as Kwang-chih Chang, Shang Civilization (New Haven: Yale U Pr, 1980).

[6] Translated in David N. Keightley, Sources of Shang History: The Oracle-Bone Inscriptions of Bronze Age China (Berkeley: U Cal Pr, 1978).

[7] Weapons in Ancient China (NY: Science Pr, 1992).

[8] Sanctioned Violence in Early China (Albany: SUNY Pr, 1990).

http://www.miwsr.com/2011-040.aspx

Playing Moneyball in the Info Economy

2011-09-28T03:18:00.000-07:00

There are three types of competitors in the information economy. There is one group who preferred to find value. The second group would rather create value. ..Members of the last group usually possessed the strategic position to wait for the finders and the creators of the value to visit at their terrain.

Each group has its positives and negatives. Today's, we will briefly focus on the topic of finding value.

Abstract
In life, most companies do not have the capability to buy the best talent. Some of them would quietly presumed that they will never be contending for the "Number One" position in their niche. They are usually focused on low risk, low rewards ventures. Basically, survival is the name of their game

Read the Big Tangible Picture (BTP) of Your Terrain and Beyond

Regardless of the their business terrain, some principals utilized a risk-cost benefit type of analysis to find a low risk, low cost, medium to high reward talent. While there are others who believed in going to the ground level and "feeling" out the talent . ... There are a few who utilized both approaches "objectively". ... Interestingly, there are "number game" specialists who believed that they can replace their "non quantitative" counterparts with "new and improved" technology. ... Realistically, one can rarely replace the world class strategic experience of "talent hunting" with "new and improved" technology that constantly evolve..

Finding Talented Value at Unidentified Places

Not every brilliant thinker-doers attend the upper tier schools, they could be at various small schools. Seeking these untapped talent means going to different places and talking to the relevant and experienced professionals. Asking them who is doing academically well and has the "out of the box" type of thinking to innovate. It is also significant to ask for that certain talent who is seeking the opportunity to go to the next level.

Ruminations from the Compass Desk
Ultra class sport strategists (like the late Bill Walsh, Bill Belichick, etc.) have always evaluated their talent while being mindful of their cyclical value. They have always emphasized on the practice of replacing their run-downed talent one season sooner than one season later.

Regardless of the means for securing value, one must be aware that there is a timeline for everything.

Compass Rule: Always be mindful of the seasonal cycle of anything relevant.

Some More Thoughts on Oakland A's Moneyball

If the prowess of the A's Moneyball process were concealed from the public for a few more years, could the A's have repeatedly reached their goal of playoffs? ... At this moment, no one knows. Our experience tells us that it would have given the A's a better possibility for getting better deals. Once the book was published, many teams refused to trade with the A's.

Those who possessed the competitive advantage, usually do not say anything to anyone.

The Compass View

2011-09-25T04:38:00.000-07:00

(wikimedia)

Click here for an interesting story on taking various macro risks in the information economy.

Regardless of the settings, one needs to be conservative, totally focused and not expand beyond their means. ... Good times and bad times can never last forever. Things always come in cycles.

- The Nameless Compass Strategist

Lessons from the Moneyball Movie

2011-09-21T01:11:00.000-07:00

(wikipedia)

The movie Moneyball is being released on Friday, the 23rd of Sept. ... If you are interested in learning about another unique strategic assessment process, see this movie or read the book. ... Portions of this movie were based on Michael Lewis's best seller Moneyball.

Quick Synopsis

The Oakland A's and many professional baseball teams have been using a talent evaluation process called Sabermetrics for many years. The A's management discovered a few unique indicators that most of its implementers did not noticed. They became successful with their Moneyball process, that many teams began to copy their process.

It was good publicity for the A's. However, no good deed goes unpunished.

Since the inception of the Moneyball book, the Oakland A's has not won the World Series . However the Boston Red Sox team who possessed a larger foundation of intelligence gathering resources, economics and logistics, used the Moneyball process as a part of their strategic foundation to win two World Series.

Side note: Since the 2007, the A's have not reached the playoffs.

During the A's successful years, an associate and I had a discussion with a local sport media insider on the Moneyball phenomenon He told us that the A's management should have kept the technicalities behind the process a secret. It was a major blunder to allow Michael Lewis to get an inside look on the team's decision-making process. Even Michael Lewis agreed that his book caused the A's to lose a few opportunities.

In the information economy, successful innovation is regularly imitated. ... The larger and well-resourced competition would usually adapt any successful process or tool quite well. In most cases, they can afford to err. The smaller competitors regularly operated on the margin of minimal to zero error. The outcome is obvious if they blundered. In most cases, they regularly focused on low-risk, low reward ventures.

Ruminations from the Compass Desk

Lesson #1

Never provide your competition the opportunity to use your trade secrets against you.

Lesson #2
In an information economy, every relevant competitor has a similar tool set. Obtaining the exotic skill and the strategic experience to master the tool is always the challenge. Keeping it as a secret is the other challenge.

Lesson #3

It is nice to cheer for the underdog. However, the majority of the masses only remember the grand winner, not the losers.

Lesson #4

The knowledge of one's grand terrain and the resourcefulness of each contending competitor usually enabled the "persevering" strategist to succeed on the long run. (Read the last quote from Chapter 10 of the Art of War.)

Lesson #5a

No specific process is perfect. The process evolves due to terrain changes

Lesson #5b

It is the perfection of the process execution that counts.

Lesson #5c

Regardless of the process or strategy, the attribute of talent and the accessibility of resources usually prevail in extreme situations.

Lesson #5d

In a predictable (and even parity-based) situation, the strategic experience of the chief decision maker becomes relevant.

Lesson #6

The knowledge of identifying the underdog and the favored is quite important in all strategic situations.

Lesson #7

When the scarcity of resources becomes tangible, the competitive strategists usually spend more time assessing the specifics.

Lesson #8

Connecting the specifics to the grand overview usually means that one has a understanding of the Big Tangible Picture (BTP).

Lesson #9a

One's understanding of the Big Tangible Picture is usually proportional to the implementation of their strategic advantage (strategic power)

Lesson #9b

No strategic advantage (or strategic power) lasts forever.

Update: Here are some interesting reviews for this film: #1; #2; #3; #4; #5 # 6 and #7 .

The Essence of Strategic Success

2011-09-18T08:18:00.000-07:00

(wikimedia)

What usually enables the successful strategist to prevail over the day to day challenge of their endeavor?

"It is persistence which wins many challenges. And persistence is strictly a matter of force of will. ... Sometimes, the outcome of a competition is not decided by the first strategic move or even the third. ... Rather, fortitude is involved. Force of will is persistence. If one does not lose their sense of self, he or she will persist and their strategic power will not diminish. ... On the contrary, it will endure after their body has wasted away." - A Nameless Strategist

It begins by having a Big Tangible Picture (BTP)

The Practice of Scripting

2011-09-13T03:49:00.000-07:00

It is football season again. In our case, we belong to to that unique group of serious fans who enjoyed the x's and o's of this great game. We also preferred to know what are the best practices that are being used to enhance a team's strategic performance.

One specific practice that we have adapted from the Bill Walsh's West Coast Offense system is the 25 Play (Starter) script.

Following are some of the objectives behind the 25 Play Starter script:

To test the tendencies and the possible weak points of the defense with various formations, shifts and motions;
To identify the defensive reaction to certain plays;
To recognize the decision process of the defensive play caller; and
To use the outcome of certain scripted plays to stage the opposition at a later part of the game.
To determine whether it is possible to impose one's will's onto the opposition's psyche.

The starter script is one of the most well-used tools in the game of football.

Some preferred to use a 15 or 20 play starter script to pursue the immediate weaknesses of their targeted opposition. This step requires the following: profound intelligence collecting process and implementation; deep strategic assessment skills, a good plan, a deep understanding of strategic fundamentals.

In summary, the script is more about choosing what plan to follow and less about developing a plan on the spot.

You can read more about it by clicking on this link, this link and this link .

From our experience, a script of tactical moves is a good tool to use in an unpredictable setting, . Why? Ask us.

Here is a list of questions that you should always think about:

Have you always assessed your competition before the situation begins?
How do you usually assess your competition?
Do you know how to integrate your intelligence gathering to your script?
Do you ever create a starter script of tactical plays against your competition?
Do you know the rules for building a starter script?
Do you know how to use the outcome of certain scripted plays to stage the opposition at a later stage of the situation?
Do you know when to change the order of the script?
Do you know when to exit from your script and when to reuse the script again?
Do you know how to use the script as a psychological tool?

Compass Rules:

A specific process does not make a strategist. It is the strategist who makes the process effectively effective.
Good strategic assessment is the 1st step to creating a predictable setting.

Q: Do you know the key to developing a very good script?

Final Notes

Based on our experience, our customized script process is a very good planning tool. The emphasis of this script is focused on being prepared for various contingency situations.

It can also be used for scenario modeling.

In most cases, we usually re-configured the format for various strategic projects. For the Chinese strategic fanatics, we have an experimental version that is based on Sunzi's (Sun Tzu) principles of efficient competition. If you are interested in learning about this tool, send us a message by clicking on this link. Thanks!

Ruminations from the Compass Desk

2011-09-09T09:39:00.000-07:00

The above picture is from Standupdesks.com

In the past 10 years, we have researched the topic of how people practiced the art and the science of strategy.

Some segments of our research were based on our many sessions of observing and studying how people planned their strategies and managed their decisions.

Following are some of those points that we have learned:

They kept their strategic assessment activity quite simple;
They usually were not willing to spend a great deal of time to collect specific intelligence;
They preferred to focus on their strengths without ever thinking about their own weaknesses;
They preferred to plan without having any detailed contingency options;
They liked their decision-making process to be quite simple;
They had a tendency to confuse their common sense with their so-called intuition;
Some of them have no sense of risk/consequences;
Some of them took advice from sources who could be categorized as "moral hazard"; and
Some of them were not always willing to follow a multi-step process.

We will explain the reasoning behind each of the above points in a future post (or in our future book).

Compass Rule:

The successful strategists are those who understand the what's, the hows, the wheres, the whys and the when's.

Compass Postulate

For every principle or rule, there is an exception.

Do you know the exceptions to the strategic rules that you have been operating under?

The Dao of Strategic Assessment #6: Assessing the Situation

2011-09-05T05:55:00.000-07:00

Compass Rule:
Read the Big Tangible Picture (BTP) before deciding anything strategically.

Once the Big Tangible Picture (BTP) is understood, do you know what to do with the information? Can you connect your grand objective to the state of your grand settings? Do you have the determination to make the right decision?

The Next Step

There are certain situations where the underdog realistically viewed the Big Tangible Picture (BTP) and finally perceived that there are no automatic wins. He or she realized that each and every major strategic decision usually possess a dichotomy. There will be tradeoffs and compromises.

At some point of time, the underdog would also apprehend that the height of the climb for success is proportionally to the intensity of the competition.

Click here on an interesting story on Tiger Woods .

Q: If you were Tiger Woods, would you have made the decision of stressing the body intensively for the opportunity of competing and prevailing at the highest level of your sport?

Lessons from the Life of Zhang Liang (3)

2011-09-03T03:33:00.000-07:00

Following is a continuation of one of our favorite strategists:

Zhang Liang was also named Zi Fang. His ancestors had been the prime ministers of the State of Han for five generations.

During Liu Bang's uprising against Qin, Zhang Liang gave counsel and repeatedly defeated the Qin army, leading to their conquest over Xianyang City. In the Hongmen banquet (a feast set up as a trap for the invited), Zhang Liang tried his best to cover Liu Bang out of danger. Later he continued to assist Liu Bang in winning every battle with his wisdom and strategies.

After winning the throne, Liu Bang conferred Zhang Liang the Marquis of Liu. After that, he offered good plans for protecting the prince and taking the Mayi County, a county of military importance. In his late years, he became devoted in the studies of Emperor Huang and Lao-zi school, and quitted his job for a secluded life.

http://history.cultural-china.com/en/47History1922.html

Side note: Zhang Liang was a devotee of Jiang Tai Gong's Six Secret Teachings. It was rumored that he was buried with that book and the Huang Shek Gong's Three Strategies. Both of these books can be found in the Seven Military Classics of Ancient China.

Thriving in the Info Economy (1)

2011-09-02T04:38:00.001-07:00

It is difficult to thrive in our information economy when we are constantly interrupted and overloaded with tons of unnecessary information. Some of our associates have already stopped viewing TV news and only surfed the web. ... Regardless of the cost of accessing data, how does one filters out the irrelevant data and gets to the facts?

Applying the Sunzi's Strategic Principles to the Real World

2011-08-28T04:38:00.000-07:00

Click on this link for an interesting article on how the New York Police Department (NYPD) is indirectly using the Sunzi's strategic principles to find domestic terrorists. The Sunzi's AoW aficionado should be able to identify the strategic principles of the AoW that are in play within a New York minute.

In order to prevent terrorism, the NYPD is focused on identifying the possible strategic power of the opposition through their various intelligence gathering activities. ... It all begins by comprehending the macro configuration of the greater terrain, the current state of the terrain and the various adjusted situations. (We will continue this specific point later.)

Process:

Securing the path of minimal resistance begins by identifying the source behind the opposition's strategic power and the grand terrain that encompasses it. Pinpointing the operational attributes of the terrain (i.e, the information flow, the applied economics, the implemented logistics, etc.) take a great deal of time. ... Securing field level intelligence is usually quite different form the data found on-line. Instead of delivering with the context, one could see the specifics behind the content.

With the proper execution of assessing, positioning and influencing (API), one can prevail over their opposition with the greatest impact in minimal time and the least amount of costs.

Is your strategic team doing that for you?

Compass Rule

Assess. Position. Influence.

(minor content update: 09.10.11)

Maneuvering in the Info Society

2011-08-23T05:55:00.000-07:00

Good strategy assessment begins with good strategic intelligence gathering (through various means). The amateurs espoused the belief that one can search for tangible and relevant information through the web with a few key words is good enough. They do not realized that the placement of various data on the web can be fixed.

How does one maneuvers through the information society when some aspects of the economy are driven by fabrication and temporary reality?

from NYT's In a Race to Out-Rave, 5-Star Web Reviews Go for $5

With so much data, most decision makers (esp. the news media) are usually confused.

Regardless of one's position within the terrain, the successful strategists usually focused on understanding the certainty of the grand terrain and their position within it.

The key to good strategic assessment is to match the numeric fundamentals of the terrain to the performance metrics of the targeted competitors. The successful strategist are usually able to recognize those patterns. Then they utilized it to their level of strategic power.

Here is one view's of strategic assessment from the movie Syriana:

Bob Barnes: Intelligence work isn't training seminars and gold stars for attendance.

Fred Franks: What do you think intelligence work is Bob?

Bob Barnes: I think it's two people in a room and one of them's asking a favor that is a capital crime in every country on earth, a hanging crime.

Fred Franks: No Bob, it's assessing the information gathered from that favor and then balancing it against all the other information gathered from all the other favors.

The Compass View

Good strategic assessment begins with good strategic intelligence gathering (from the field). It usually take a great deal of time and effort. Not many companies are willing to do that. These companies would just presume something. Then they would create a plan for it. If they fail, corporate assets and human efforts are wasted

In planning, no useless move.
In strategy, no step is in vain. - Chen Hao

In the real world, successful strategists regularly weighted the relevancy of each intelligence item and the credibility of its source. Then, they balanced it to the principal points within the Big Tangible Picture. This enables them to make the proper strategic decision.

Successful strategists who believed in the importance of assessing and positioning, followed this Compass rule:
"The time needed to influence your target is inversely proportional to the time that you spent assessing and positioning."

Side note: There is an exception to that rule. We will touch on it in a future post.

So, how do you assess your Big Tangible Picture?

The Big Tangible Picture: Assessing Yahoo

2011-08-18T04:18:00.000-07:00

To compete in the information economy, the successful strategists frequently focus on understanding the value of the relevant and what is its rate of change. ... In the case of Yahoo, the chief decision makers did not think about the probable tangible changes within the Big Tangible Picture (BTP).

During their strategy session, they could have asked the following three questions:

Is our decision based on the connection between our competitive disposition and the configuration of the targeted market terrain?
Is our decision also based on the connection between our strategic influence and the configuration of the opportunistic situation?
Is our decision based on the connection of the illusion and the reality of the situation to the change of the market terrain?

Compass Rule:

Know the specifics behind the Big Tangible Picture before one starts the process of questioning.

Summary

Proper strategic assessment of their buyers in terms of cycles and causation, would have helped Yahoo in adjusting to the probable change within their Big Tangible Picture without any major glitch. ...

The name of the game is to connect the dots and reap the rewards. ... It is that simple. ... Are you doing it?

The Big Tangible Picture: Gaming the System (1)

2011-08-17T03:33:00.000-07:00

Introduction

The Chinese strategy classics emphasized that the successful strategist is one who comprehends the configuration of their terrain (and beyond). Thenfore he or she is able to connect the dots and reap the rewards. ... Connecting the dots means that he or she will be able to neutralize the prowess of their current competition and the other future competitors by using the scope of their terrain as the starting point. ... (We will touch the specific behind this approach in our book.) ... Retrospectively, this concept is quite superior to the usual approach of direct confrontation that is favored by the many amateurs.

Gaming the System

出空擊虛，避其所守，擊其不意

"Enter the gap, attack the voids, evade the defended area and

strike the competition where he/she does not expect you." -Cao Cao.

To compete properly in our semi-transparent information economy, one has to understand the PESTO configuration of their terrain.

Rick Perry, the Texas Governor and Republican presidential candidate was able to find someone who understood the rules of the U.S. political game. This talented person discovered the gap that enabled Governor Perry to quickly fill his coffers.

Money is the mother's milk of politics." - Jesse Marvin Unruh

Having coffers of money does not always guaranteed the immediate victory to the favored.

In 2008, McCain defeated Romney for the GOP presidential nomination despite that he was outspent 10 to 1 . McCain won by focusing on a common message that connected to the masses of voters.

Side note: To gain the consensus of the masses, one focuses on fulfilling their basic needs.

Summary

The successful strategist focuses on knowing how the grand system works before ever thinking about how to beat the actual competition.

Compass Rule: Know how the system works before identifying why it works.

Questions From the Compass Desk

What strategic attributes are in your Big Tangible Picture?
How do you see your Big Tangible Picture?
Can you see the tangible connections between the various political factors and the economic factor?
Are you able to prioritize the collected intelligence?
Do you know the quality specifics behind your collected intelligence?
If one cannot see the connections, how can he or she assessed the Big Tangible Picture?
Without a good assessment of your Big Tangible Picture, what is the probability of you prevailing over your competition?

Assess, Position and Influence (11): The Big Tangible Picture

2011-08-11T04:39:00.000-07:00

Q: Why does the Big Tangible Picture (BTP) requires a large quantity of quality information?

A: In most cases, too much information creates the act of "paralysis by analysis." Therefore, nothing gets done. Concurrently, minimal information is equal to no insight. The key to understanding the Big Tangible Picture is to promptly secure the right amount of quality information

Compass Rule:

The quantity of quality information is proportional to the quality of the analysis.

Summary

In some situations, the political-economic-social state of one's terrain usually rules the mindset of the people within it. If one does not know the political-economic-social state of their terrain, he or she will be grinding for a long time.

Assess, Position and Influence (10)

2011-08-08T04:18:00.000-07:00

from Depositphoto

There is no such thing as a similar problem. Depending on the strategic positioning of a company, the effect of each problem would have a different impact. The strategist's experience is usually one of the many major reasons on how one viewed the problem. Having the time and the resources to properly assess the problem is another challenge.

Simultaneously, the risk/reward option and the risk/consequences would always be quite different for each company .

(from wikimedia)

Compass Rule:

During the assessment of your Big Tangible Picture (BTP), know your risk tolerance before deciding on your strategic move.

Ruminations From the Compass Desk

During one's climb of the political- economic-social value chain, the "risk/reward" attribute and the quality of competition usually increases. One should expect the duration and the frequency of the competitive pace to be occasionally intensive.

Compass Trend (6): Increasing Efficiency Through Automation

2011-08-06T04:38:00.000-07:00

We are always wondering what would the future bring? Regardless where our position is at, some of us are just confused about the uncertainty factor. The most difficult task to perform is to spend some time viewing the Big Tangible Picture.

We are currently living in an information economy where "achieving the cost effectiveness and operational efficiency" is the mantra. The grand priority objective is to lower the human labor costs while maximizing the profits through the application of standards and technological-driven process.

Current Business Situation

In previous posts, we talked about the robotics trend in the service industry. Foxcom recently decided to pursued the solution of robotics. ... When the robots performed the majority of the manufacturing work, where would the workers go?... What are the odds of this company finding work for their workers?

While technology is constantly evolving, some people read the Big Tangible Picture and anticipating the on-coming trend. and adjusting to the non-obvious after-effects. These people quietly thrive. In most cases, the masses react. some survive. The rest just grinds.

Retrospectively, the evolution of technology usually diminishes the economic influence of the masses. The key is to staying ahead of the technological curve while maintaining one's focus on the target.

Summary

What does it all mean? Each day, there are mountains of information that one must digest per day . Whether one can prioritize this amount of information is another story.

It begins by assessing the Big Tangible Picture (BTP).

Following is a short listing of questions that you should ask yourself at the end of the day:

So what is in my BTP!?
How do I prioritizes my information?
How do I usually grade the quality of my information?
Is my situation stable?
Am I ahead or behind?

Regardless of the times and settings, the successful strategist always assesses the Big Tangible Picture (BTP) before deciding strategically.

Following are some of the key Compass Rules that you should remember:

Always assess the Big Tangible Picture (BTP) before deciding strategically;
Identify the various choices;
Determine the advantages and disadvantages of each choice;
Weight the risks and rewards of each choice;
Balance one's own "Big Picture" to the reality of one's grand settings; and
Act accordingly

As a reminder, always review each past strategic situation when necessary.

Ruminations from the Compass Desk

2011-08-01T04:38:00.000-07:00

from Wikimedia.org

The two grand objectives of most businesses are: knowing the state of one's competition and knowing the future. ... Since none of us are not psychics, we preferred the former option. ...

From our view, the Big Tangible Picture should have some of the following attributes:

the state of your competition;
the configuration of your terrain and beyond;
the cyclical state of the competitive terrain; etc.

By knowing the relevant information from the Big Tangible Picture, one mitigates the risks and the impact of possible black swans.

q: Currently, what is in your Big Picture?

q: Can you see the strategic points that lead to the current and the new profit opportunities?

q: Can you see the strategic points that lead to the current and the new cost cutting opportunities?

q: Can you see the strategic risk benefits and the risk consequences that are behind the discovered opportunities?

q: Does your Big Picture connects with the Big Tangible Picture?

Assessing the Big Tangible Picture: Connect the Dots!

2011-07-31T05:55:00.001-07:00

Playing the Risk Game
In our competitive information economy, the height of the goal usually determines the scope of the risk and the quality of the competition. At the same time, the quantity of unknown variables increases the quantity of risks.

Understanding the Big Tangible Picture (BTP) enables one to comprehend the risks, connect the dots and reap the rewards

Yahoo Misplayed the Risk Game
Assessing the Big Tangible Picture means one must also go through a slew of what-if situations. In this case, Yahoo did not properly perform that objective before making a deal with Alibaba.

Yahoo did not understand the risk, the uncertainty and the volatility of the situation. They did not weighted the possibility of changes within the various PESTO factors.. Since, the dots were not connected, Yahoo dd not reaped the rewards.

Compass Practice

Most unpleasant business news are usually broadcasted on Friday. The after-effects become obvious on the following Monday.

We will touch on the specifics of the Yahoo and Alibaba situation in a future post. .

The Abstract Behind The Process
Before dotting the i's and crossing the t''s, the successful strategists frequently tested their view of the Big Tangible Picture (BTP) with various "what-if" situations. They studied the causes and the effects from the various PESTO influences before making any strategic decisions.

By focusing on the "non-obvious" relevant points that are embedded within the PESTO influences, the successful strategists are able to integrated them into one Big Tangible Picture. During the strategic assessment review, they also determined whether if the rewards can be reaped.

Compass Rules:

The scope of any risk benefits is usually proportionally to the scope of the risk consequences.
In an extreme competitive situation, the risk benefits are rarely greater than the risk consequences.
Never pursue a risk where the impact of the consequences is greater than the impact of the rewards.

{ This post has been updated on 08/01/11. }

Assessing, Positioning and Deciding (5)

2011-07-23T04:38:00.000-07:00

Source: wikimedia.org

Whenever the scarcity of certain resources becomes pertinent, the game of supply and demand also becomes extreme for certain companies and their customer base. Simultaneously, the competitive intensity between those same companies has also increased.

At this moment, the choice for strategic assessment process and the strategic decision making process have become more significant for Chief Decision Makers. ...

What we have observed is that some Chief Decision Makers have a habit of consciously making an impulsive decision without thoroughly looking at the "Big Tangible Picture." They are focused on opinions not facts. ... (It is one significant topic that will be detailed in a future post.) These decision makers would also occasionally overlook a relevant factor that would negatively affect the bottom line during the completion of the grand objective.

Compass Rule of FOG:

Good decision-making should be based on facts not opinions and gossips.

Afterthoughts

While the upper tier companies can afford these errors., most companies do not always possess the capital and the resources to fix and survive.

Sometimes, bad decisions lead to ruined companies and tarnished reputations.

Do you and your team ever think about the positive after-effects and the negative after-effects of a strategic decision during the grand decision-making session?

{ This post has been updated with new information and some re-edited points. }

Assess, Position and Influence (9): The Big Tangible Picture

2011-07-19T10:39:00.000-07:00

Source: wikimedia.org

There is no free lunch for the outcome-driven decision makers. To make the right decision in a time of scarcity and uncertainty, one must secure the right amount of quality information before ever making a tangible strategic decision.

Compass Rule:

The quantity of quality information is proportional to the quality of decisions.

The consummate objective for competing in our information economy is to achieve the maximum strategic effectiveness. ... Are you doing it?

Assess, Position and Influence (8): The Big Tangible Picture

2011-07-18T04:18:00.000-07:00

Source: wikimedia.org

Q: What are the attributes behind the Big Tangible Picture (BTP)?

A: Our version of the Big Tangible Picture encompasses the following items:

the rules of the competitive terrain;
the history of the competitive terrain and the contending players;
the rate of change relating to the strategic influences;
the strategies and the tactics that were previously used; and
one's own plan

There are more items.

In a future post, we will cover the deliverable that comes from the understanding of the Big Tangible Picture (BTP).

Assess, Position and Influence (7): Last Move Advantage

2011-07-17T04:38:00.000-07:00

Source: wikimedia.org

There is no such thing as a last move advantage or a late starter advantage. Those protagonists with the right amount of political-legal influences can override most social-political-based business situations.

Compass Rule: When the political-legal rule is greater than the immediate economic benefit, the outcome becomes obvious.

Exception: Disrupt the power behind the political-legal rule and the social economic influence prevails.

First move advantage works when one has synchronized the proper set of political, economic, social and technological influences into their package of strategic power. We will touch on this topic later.

Summary

The key to staying ahead of the curve is to know the Compass rules and the settings behind the Big Tangible Picture (BTP) before deciding strategically.

Compass Rule:

While the amateurs are usually focused on understanding the rules, the professionals already know the configuration and the scope of the terrain. They are just focused on the exceptions to the rules.

Assess, Position and Decide (1)

2011-07-15T05:55:00.000-07:00

(michelleshutter.com)

By climbing the global mountain of political-economic-social value chains, the successful (Compass) strategists realized the rule of "money in politics and politics in money" is always in play. They also recognized that the quantity of quality money is proportional to the quantity of intense competition.

The height and the intensity of the climb occasionally determines the state of one's awareness. Those who have no awareness, usually ruin their execution with poor presumptions and ill-timed adjustments. In summary, the element of time, economics and effort are wasted. Trust and stability are broken.

By looking ahead of the climb, the successful strategists identified the politics and determined the self interest. (Remember that self interest is the origin of most relationships.) Then they examined the economics by following the money trail.

Compass Rule:

There is money in politics and then there is politics in money. If one has the political-economic influence in their terrain, then they are ahead of the game for the time being.

(The picture originated from Posiwid)

Compass Rule:

Self interest is the origin of most relationships.

Ruminations from the Compass Desk

To compete effectively in the information economy, he or she needs to understand the Big Tangible Picture (BTP). Having a tool that identifies the connectivity of influences, is quite helpful. It should encompasses a hierarchical set of rules from the various strategic classics.

Can one formulates a similar tool?

Do the following: surf the web; visit the various forums; read tons of books, find the rules; filter the reality from the illusion; distinguish the few professional views from the masses of amateur opinions; take the gamble of implementing it effectively in terms of logistics and economics, lose one's own reputation, etc. . . .

In summary, one can learn it the hard way or you can contact us.

In future posts, we will define what is a successful (Compass) strategist.

What is Strategic Power (Strategic Positioning)?

2011-07-12T01:21:00.000-07:00

Source: Wikipedia.org

Compass Rule: One's position on the political-economic-social value chain is proportional to their response to the intensity of the competition.

Regardless of the competition, the key to prevailing in any venture is to establish effective strategic power (strategic positioning).

It begins by having a Big Tangible Picture that enables one to decide whether the act of cooperating or the act of competing or a simultaneous act of both acts is the best initial move for the moment.

Following is our conceptualization of what strategic power is about:

Using one's competitive disposition within the terrain as an advantage;
Anticipating the forthcoming opportunity and then timing one's potential to the best situation; and
Displaying the illusion and the reality simultaneously during any strategic situations.

Our book project covers more on this topic. We will post more information about it later.

Competing in the Global Economy: How Driven Are You?

2011-07-08T01:11:00.000-07:00

Are you the leader or the chaser?

"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running."

During the course of our research, we discovered that most of the so-called entrepreneurs were not that competitive. Some were just following what the herd is doing. Others were just happy that they are barely making an impact in their niche and got their slice of the pie for that year.

We randomly estimated that less than 5% of the entrepreneurs are extremely competitive.

It is important to assess yourself and your terrain every so often. Ask yourself if you are willing to take the next big step in order to compete.

Assessing the Big Tangible Picture: Connect the Dots

2011-07-07T07:17:00.000-07:00

Simple reasoning is not always as real as what the owner has stated. There is always something more to the given truth.

Recently the Five Guys invaded the home state of the In and Out Burger, We do not know if they will thrive on the long run. ... It has been rumored that their burgers are tasty and expensive . Depending on where one stands in the social economic value chain, the only real complaint is the price. In life, quality cost.

At this moment, they are indirectly borrowing the marketing cloud of In and Out Burgers. Sooner or later the Five Guys's current model of high-priced quality burgers will not work. ... Based on their numbers, they are ahead of the curve for this macro moment.

Without a good view of the Big Tangible Picture, one's luck can only last for so long.

Compass Rule: The order and the cyclical state of the terrain determines everything. No business model lasts a long time without the right amount of political influences, economic influences and other specific influences that must be in play. ... There are always a few exceptions to that situation. ... Knowing them and using it against the general rule is the key to emerging success.

The Importance of Intelligence Assessment

2011-07-05T01:11:00.000-07:00

Here is an interesting AP news item on how the U.S. intelligence agency found Osama bin Laden.

There is a rule of thumb about "acting on a specific intelligence item." If it is about 80%+ completed in terms of relevancy, most people would usually run with it. ... No intelligence stays static for a long period of time. ... Depending on the setting, the rate of change becomes a pertinent factor. ... Generally, most people do not spend any time estimating the risk/reward for using a certain type of intelligence. ... They go with their gut instinct.

Compass Process:

Identify the order of intelligence. Determine its sequence. Examine its timing points. Analyze the quality of data with various "what-if" situations. In most cases, the chief decision maker will have a better idea whether he/she is one step closer to hitting their target.

Compass Rule:

With the right intelligence and the proper assessment process , one can promptly find the order within the abyss of disorder.

Defining the Macro Compass Rules

2011-07-02T05:55:00.001-07:00

From the game of Go, one learns that there is a set of universal rules that cross the various competitive arenas. If one spends some time, playing this game and becomes mindfully aware of the many events around him or her. One becomes more alert to the Big Tangible Picture (BTP) that is around him or her.

1. The Dao is Everything.

There is a way (or an order) in every activity or setting. Knowing the macro sequence (and the micro connections) between each realm, usually offered one's the insight of what is the way.

2. The Sequence is Everything

For every way there are many sequences. Understanding the macro order (and the micro orders) within each sequence. One learns how it works

3. The Timing is Everything

Once one has comprehended the Dao and the sequence, timing their actions to the situation becomes quite easier.

How do these three rules fit into the topic of strategic assessment process? Knowing how things work and how it connects to other things, usually enable anyone to properly assess the Big Tangible Picture. The challenge is to take the time and the effort to do it properly.

Your Game

How do you plan your strategy? Have you ever assessed your target and its surroundings?

In any relevant competitive analysis checklist, the professionals usually focus on the following points: the extensiveness of their competition; their size; their strength; their location; their capabilities and the intentions of the target.

Do you do that?

Most people preferred not to operate with this amount of details. It usually confuses them. They preferred to teach and preach the art of inspiring leadership and hoped that things will work itself out regardless of their situation.

Know the Dao. Understand the sequence. Pinpoint the timing points. Only then one can successfully assesses anything. That is all one has to do.

Does your project team performed the above steps?

Competing in the Global Economy: The Basics

2011-06-30T01:11:00.000-07:00

In our information economy, many companies are struggling to be operationally efficient. Some succeed because of their competitive disposition. They usually seized the opportunity by waiting for their competition to err .

The probable cause for the err is that their up and coming competition usually lacked the understanding of their surroundings and what their competition is actually doing. ...

The Basics

Following is an abridged listing of the reasons behind the "above average" competitors:

Having a good view of the Big Tangible Picture (BTP);
Having the willingness to take the time to assess the Big Tangible Picture;
Having the feeling of competitive urgency;
Having the economics and logistics to properly compete;
Operating with a correct flow of pertinent information ; and
Taking the advantage of the tactical imbalance of time.

If you want to operate with great strategic effectiveness, think about those points. Good luck.

A Note on Sawyer's Latest Classic

2011-06-26T04:18:00.000-07:00

There is more to the strategy game than the usual battlefield campaigns, the strategies, the tactics and other unique attributes, one has to understand the basic components behind it.

If you are seeking an integrated view of the Ancient Chinese mindset, we highly recommend this book.

Compass Tradition: Recognizing the Art of War (and other Strategic) Principles in the Movies

2011-06-23T00:08:00.000-07:00

During our off-hours, some of us spent our time observing how the "Art of War" strategic principles were being used in certain action movies (and in political-economic and social matters). During our review, we also discussed whether the strategic implementation could have been improved.

Recently, the 13 Assassins movie was one of few films that indirectly shows how a battle is strategized and fought from the perspective of the Art of War essay.

This movie never ever mentioned anything that relates to the Art of War . We would only presumed that the chief assassin was a devotee of the Sunzi's classic. The movie quietly preached its principles without ever mentioning it. That is considered to be the way of all ways.

Serious Art of War (AoW) followers can see some of the terrain traps and the strategic leadership errors that Sunzi warned his readers about. They would also see how strategic power can be created through good strategic assessment, the positioning of the strategic power through planning and preparation and the influencing of of their power.

In this movie, the underdog prevailed over the odds of grand numbers by assessing the terrain, positioning themselves ahead of the opposition and influencing them with their strategic power.

The Process of Assess

The protagonist and his team assessed the configuration of terrain, the behavior of the target and the many possible situations that could happened.

The Process of Position

Once the assessment was completed,. they transformed their arsenal of various strategic factors toward a small but tangible state of strategic power (or strategic advantage).

The Process of Influence

That level of pre-positioning enabled one to influence the opposition toward a circumstance of implementing poor strategic decisions.

(from Magnet Releasing)

Yusuke Iseya and Takayuki Yamada in '13 Assassins.

Click here for a video trailer and a very good review from the Wall Street Journal. NY Times also provided a well-written review on this movie.

Notes from the Compass Desk

Observe how the fisherman analogy was subtly utilized in this film and how the chief assassin used it against the targeted antagonist. (This concept of baiting and luring the target into a trap is quite popular with ancient Chinese strategists and modern business practices.)

Also, observe how the chief assassins re-configured the terrain into their framework of strategic power.

To the strategy aficionados, we highly recommend this movie. Be aware that it is quite violent and bloody.

Side note: You can also find the various strategic and tactical principles embedded in the Red Cliff movie. We also highly recommended the classic movie titled Seven Samurai.

Final Notes

Whether you are in a competing or cooperating situation, always follow these three Compass rules:

Always assess the Big Tangible Picture before positioning and influencing.
Identify and comprehend the risks behind the various advantageous and disadvantageous factors within the Big Tangible Picture.
Always know the small points, the urgent points and the big points of your situation

With the proper assessment, one decides on whether "the act of subjugating the predominant paradigm" of the target is possible.

The Sign of the Times: Operational Effectiveness

2011-06-18T04:18:00.000-07:00

Whether one is running a business or a high profile high rewards product groups, operational effectiveness. Politicians are also bantering this same message.

The benefits of well-played operational effectiveness usually means the reduction of costs, the minimization of response time and the mitigation of risk. It starts by increasing the quantity of productivity-driven practices, standardization of procedures and using the correct technological devices.

There is no perfect system. It is a process of continuous improvement.

Bridging the gap between risk management and cost effectiveness is the key to operational effectiveness. In a future post, we will discuss this matter.

The Big Tangible Picture

We believed that this trend will continue. There is a limitation to everything. Sooner or later, the non-innovative, but competitively efficient medical hospitals will have to compete against each other for a large piece of the pie, for the purpose of survival. While the strong organizations occasionally acquire the weaker organizations at some point of the game, the smarter organizations will thrive by focusing on becoming competitively innovative.

Based on historical data, there is always a possibility that the customer base might suffer on the long run. This is the sign of the times.

Building operational effectiveness is the fundamental basis for establishing strategic power.

The Possible Truth of Our Strategic Being

2011-06-16T05:55:00.000-07:00

Is the competition gene embedded in us? ...

Having it is not enough. To properly compete, it begins with a process. ... A process that integrated the assessed intelligence to the plan and then to the action of influence. You can read more about the process by clicking on this link.

Idealistically, it is important to have the right order of resources, relationships, intelligence, economics, logistics, etc. ...

Occasionally, one's position does not always have the right order of essentials for that moment . Processing the act of adjusting, adapting, enduring and evolving is the only alternative.

"As you know, you go to war with the Army you have. They're not the Army you might want or wish to have at a later time." - Donald Rumsfeld.

Compass Rule: Read the Big Tangible Picture (BTP) before deciding on a strategic move.

Summary: When one's back is against the wall, one must adjusts and evolves while never losing track of their goal and their settings.

Assessing the Basics of Strategic Leadership

2011-06-13T05:55:00.000-07:00

Unlike some other strategy forums, we have avoided the practice of treating the Art of War like a book of fortune cookie sayings. Not only does it demeans the essence of that book, it gives the new reader a narrow view of what strategy is about.

One key to assessing a specific situation is to study the quality leadership behind each competitor and then connecting the situation to a set of principles.

Someone sent us this news item and asked us to offer our assessment.

We viewed the situation where the vision of the leadership contradicted with the intent of the staff.

“In competition, two of the six types of organizational errors are chaotic and setback. This disaster is not caused by nature and the marketplace but by the leader's errors. ... If the leader is weak and not disciplined, unclear in his instructions and leadership; the implementers and the expediters lack discipline; and their deployment of expediters into formation is in disarray, it is termed chaotic. ... If the leader, unable to estimate the prowess of the opposition, would make a poor strategic match up decisions, it is termed setback. ... if you know the competition and know yourself, your victory will not be jeopardy. If you know the nature of your terrain and know the configuration of your terrain, your victory can be complete.” - AoW 10

Mr. Newt Gingrich misunderstood the strategic power of his competitors and the relationship with his team. He should have focused his attention on securing more political and economic capital for his team, not going on vacation with his wife. Since there are more than five candidates, the competition for the pie of GOP donors was going to be fierce. Without this capital, his campaign was grinding. In a high-risk, high reward competitive situation, a right-minded group of professionals wanted to work for a campaign that had a winning chance.

Side note: What is the probability and the possibility of his former team is now heading to the Lone Star State?

Retrospectively, Mr. Gingrich did not show the discipline to make the right strategic move. The consequence is that his credibility for making the right move has been temporarily destroyed. ...

However, Newt can always fix his image by following the legend of Wuzi. Whether he is able to do something like that, is a different story. ... You can make up your own conclusion on this matter.

We wished much success to Mr. Gingrich in his next professional move.

Compass Rule: Always assess the Big Tangible Picture before deciding on the next move.

Compass Trend (5): Automated Code Generation

2011-06-12T01:12:00.000-07:00

In the automotive industry, auto code generation is currently being used in the development of engine controller. The value of labor is now focused on creating efficient specifications while lowering the labor costs of grinding out C code.

The optimization of fat and bloated code is no longer necessary. The days of writing efficient code is near over. When in doubt, find a faster processor and add more memory chips. It is the sign of the times.

Compass Trend (4): An Unique Exception to the Automated Restaurant Service

2011-06-11T01:11:00.000-07:00

... Click here to "see" the strategic exception to the automated service trend. ... Most of us know that the simple formula of sex and alcohol sells. It works as long as the entrepreneur targets the correct social and economic locations with the right amount of resources. ...

Compass Trend (3b): More on Automated Restaurant Service

2011-06-07T06:18:00.000-07:00

Click here for more examples of automated restaurant service. In an economically repressed terrain, there is a significant need to be operationally efficient. In most slow economic growth situations, this specific trend will continue. It is only a matter of time, that the casual dining restaurants will no longer have a large team of waiters. It will become near-obsolete in some cases.

For what it is worth, we have been following this particular trend since last year.

Update (06.08.11):

Compass Rule: For every general situation, there is an exception to the rule.

We will post the exception to this trend some time this weekend.

Side bar: If there is an electric blackout, we wondered how will the "technophile" crowd behave in a restaurant?