Friday, March 21, 2003

Concentration of Force

“The law of successful operations is to avoid the enemy’s strength and strike at his weakness.” –Sun Tzu
Concentration of force is one of the great principals of successful battle. Alexander of Macedon (a.k.a. Alexander the Great) and Napoleon both employed it. It’s also very effective in business—and can be savagely effective for “the little guy” with limited resources. That David fella knew just what to do when Goliath came along—aim for the weakness. Herb Kelleher did the same thing with Southwest Airlines.

The key is to look for weakness in your opponent’s strengths then engineer a relative superiority (e.g. like Keller did). You then apply the strength against your competitor’s weakness (making sure it’s a TRUE weakness, and not just clever bait—ouch!). Napoleon was brilliant in his ability to actually create the weakness in the enemy’s line using skillful maneuvering, and not necessarily superior firepower (e.g. using cleverness instead of committing capital). Then he would drive through. It was first employed by Alexander the Great 2,000 years before who used it to repeatedly defeat the decidedly less clever Persian leader Darius.

We used this around here, of course. When we started out again after selling JobPlex.com we were just another small recruiting service. But we studied, then specialized in “high-speed/high-impact search” (e.g. clients could come to us to quickly marginalize their competition by having us use our competitor intelligence skills to first identify, and then dutifully extract, valuable talent from a worrisome competitor). This focus, this concentration of energy, gave us a tremendous advantage over our entrenched, slow-moving competition. As the market caught up, we then moved onto more interesting specialties and services.

By thinking like this, smart small-guys like Southwest Airlines and many others have been happily poking javelins at the rear end of big guys for thousands of years.

You can too. Ask yourself, what are my competitor’s true weaknesses and does it make solid sense to attack there? The notion of ‘true weakness’ needs to be emphasized since really tough, knowledgeable competitors will create lures and wait for you to fall for them. Don’t do that unless it’s part of a broader, carefully engineered strategy.

And if you think it’s beginning to feel a bit like a game of chess, then you’re getting it.

Think about it…

Wednesday, March 12, 2003

Normal vs. Extraordinary Performance (vs. Vanity)

There was a lot of mail from people that didn’t understand the CEO’s snake comment a while back about his not being afraid of personal embarrassment and how that opened up a lot of opportunities for him and his company, which is very large and successful.

The underlying issue is normal vs. extraordinary performance and it's the same in a military or commercial battle. Slow, steady gains come from solid, methodical performance. And that's great. However, big gains often require audacity and if they go wrong, well, it can be humiliating to the CEO. So CEOs often take a pass on such moves, taking the safer route instead. That said, a great CEO never forgets he or she is a servant of the stakeholders. Sometimes he or she MUST take chances and vanity should be the last thing on their mind.

“The general (CEO) who advances without coveting fame and retreats without fearing disgrace, whose only thought is to protect his country (the company and employees) and do good service for his sovereign (chairman), is the jewel of the kingdom (equity holders).” Sun Tzu
An old battlefield saying forgotten by many (R.I.P.) dot.com CEOs in the early days of the Internet: "The easy way is always mined."


Think about it…