Thursday, December 8, 2011

Avoiding Your Own Charge of the Light Brigade



To paraphrase an ancient Greek writer: "Ten good shoulders, wisely led, Will beat a hundred without a head." -Euripides
"The famous Charge of the Light Brigade is a useful study because it broke so many classic rules of basic management. Inflated egos didn’t help things either." -Tal Newhart
Let’s look at the famous “Charge of the Light Brigade.” It happened on October 25, 1854 during the Crimean War with the British fighting the Russians. The disaster happened for the same reason a lot of businesses fail: bad communication brought upon by a lethal collection of inflated egos.

In an act that appears to be of unfathomable stupidity the British Lieutenant-General the Earl of Cardigan ordered his light brigade (the “light” was because they were lightly armed, as opposed to the “heavy brigade”) to attack the Russian artillery positions. Success was impossible. The charge was through a narrow valley a mile and a quarter long. Russian guns were at the end of the valley and gunners were on both sides, forming a classic death box. In fact, some of Cardigan’s men did manage to get through to the guns, but were then surrounded by the Russian troops. When they turned to retreat they were easy targets. The whole thing took about 20 minutes and cost about a third of Cardigan’s force. And of course there is the Tennyson poem to remind everybody about it forever (sort of like our modern social media…).

But what really went wrong, and why, it is vaguely familiar if you regularly read the Wall Street Journal.

As is often the case, there was a sequence of careless—and completely avoidable—mistakes. And they all came down to poor ‘corpcraft’ (see my definition of corpcraft elsewhere). A successful attack was clearly hopeless. That was obvious—as is almost always the case in war (and business), success or failure is decided before the battle. And again, as in business, after the “first stupid mistake” was made, management suddenly couldn’t get anything right and the situation (and equity holder value) disintegrated with shocking speed.

In a nutshell this is the famous story of The Charge of the Light Brigade. It’s amazing that generally intelligent commanders, which these gentlemen were, could make such foolish mistakes. But, just as in the corporate world, that happens. The real problem is that a single minor mistake can set off what around here we call a “negative cascade”. (As opposed to a positive cascade which is what you and your equity holders want: good events leading to good events, etc.) A negative cascade is simple: think dominos. Big expensive ones.

But here’s the detail and it is easy to compare this to something you’ve probably observed or personally experienced:

Lord Raglan, the English commander (a.k.a. the Boss here), looked across a broad landscape, and from his high vantage point on a hill, could see the enemy (the competition) in the distance trying to remove some captured English cannons. Since captured cannons were a metric of victory or defeat in a battle this was a Bad Thing. Raglan sent down another in a sequence of orders to Lieutenant-General the Earl of Lucan—who was in a position 600 feet lower in elevation and didn’t have the same view—to recover the cannons “immediate” [sic]. The order was given to another officer’s aide-de-camp, Captain Edward Nolan, for delivery—Captain Nolan was chosen because he was an accomplished horseman and would take a speedy, more direct route down to Lucan. He did this, probably loving it, because he was a known showoff.

So Nolan delivered the order to Lucan to attack and regain the cannons. Reading the order Lord Lucan was justifiably baffled and reasonably asked for clarification because he couldn’t actually see any cannons. Nolan, eager to see some “real cavalry action”, arrogantly waved his arm in the general direction of the Russian front and snapped “There, my Lord, is your enemy. There are your guns.” Nolan repeated that the order was to attack immediately then trotted off to talk to another officer. Lord Lucan, flawed by pride, and always at odds with the arrogant Nolan (Nolan had authored books on cavalry tactics and made sure everybody knew it), failed to ask Nolan for further clarification. Note: Like Lord Raglan, Captain Nolan had seen the location of the cannons that were obscured from Lucan’s view because of the topography. But Nolan didn’t accurately point to where the cannons were—he merely swept his arm across the landscape in the general direction of the Russians. As you can see, the cascade now accelerates towards preventable disaster.

Lord Lucan rode over to the commander of the light brigade, the Earl of Cardigan (and his trusty horse Ronald). Lucan and Cardigan hated each other (Cardigan had been married to Lucan's youngest sister but was now separated from her) and, again, there was no useful discussion. Lucan simply ordered Cardigan to attack ‘down the valley’ with his light brigade. Cardigan pointed out the fact there were numerous enemy positions in the vicinity to which Lord Lucan simply replied Cardigan should take the ride at moderate speed so as not to exhaust the horses (good news for Ronald). Lucan would follow up with the heavy brigade. The cascade continues.

So off they rode into “The Valley of Death”. Twenty minutes later it was over. Nolan died dramatically in the charge, ostensibly trying to ride forward to warn Cardigan he was headed in the wrong direction (some historians disagree with this interpretation—nobody argues he was the first to die). Lucan, seeing what was happening to the light brigade in front, turned the heavy brigade around uttering the famous line: “They shall not have the heavy.”

The high level military history view says that the attack was a perfect misapplication of the sound strategy of applying superior force at a position of an enemy’s weakness (e.g. your competition, also see the Southwest Airlines comments elsewhere in this collection).

But that’s the easy way out. What happened was that the functional CEO (Lord Raglan) made a terrifically dumb mistake (the cannons were clearly lost to the Russians). That mistake, foolish in itself, compounded itself through a sequence of unquestioning levels of management (accelerating the negative cascade). In the final analysis it was Cardigan who took the most heat because he led the actual charge straight into the cannon battery. Cardigan, of course, blamed Lucan. And Lucan, of course, blamed the dead Nolan for the vague delivery of the orders. Nothing’s changed. This happens with poor management all the time. Look around. Hopefully you don’t see it, but you probably do.
It all sounds uncomfortably familiar doesn’t it? How many boards and executive committees behave the same way?

Let’s take a look at this via a few very broad strokes:
1.     Underestimation of a major obstacle. Raglan, like a lot of successful CEOs, probably thought “I’ve figured this out. Nothing’s changed. Go get the cannons.” Raglan had convinced himself he was the “master of the universe” and that he knew everything. Toss in a little of the “I can do anything” syndrome and it spells disaster. It’s the same in the market place. In his mind Raglan saw only the cannons being recaptured. He failed to think of the process. Does the name Vivendi ring a bell (sorry Jean-Marie)?
2.     Faced with a rapidly deteriorating situation Cardigan continued his charge. A Great CEO sometimes has to admit that he or she is wrong. Sun Tzu said excess pride in a general is a bad thing (poor corpcraft) because they worry too much about what others think of them. Even smart CEOs sometimes continue to throw massive resources at projects (often pet projects) that can’t work. Consider Ross Johnson of R.J. Reynolds and his so-called smokeless Premiere cigarettes. Like Cardigan, Ross continued the charge to prove “he could do it”. It cost Ross a couple billion RJR dollars and Cardigan a couple hundred men. Great generals and great CEOs can admit that sometimes “you really can’t get there from here”. They can say it even though there’s always somebody like Captain Nolan who will say “You see! I knew he couldn’t do it!” Great leaders admit they made a mistake and move on, limiting the destruction. Good managers don’t compound their errors. (See the chapter about mistakes.)
3.     Another mistake Raglan made was his assumption of domination in a fluid state. Raglan thought he dominated the landscape (e.g., marketplace). But there were what amounted to “marketplace eddies” where he could be overpowered. Great generals and CEOs know that battlefield or market domination is a highly dynamic thing. They know that constant adjustment and tuning isn’t optional, it’s required.
4.     Lord Lucan failed to get clarification from Captain Nolan and Nolan failed to pass on relevant information. A Great leader knows he or she has to listen to—pursue, understand and act upon—any credible source of information potentially relevant to the survival of the company. In many cases information “doesn’t know where to go” in an enterprise. That’s a serious flaw in a company since sometimes tiny pieces of information can lead to the destruction of even a huge company. The challenge is that extremely vital information frequently first presents itself in remote places along the outer edges of the organization. The datum or event may seem innocuous to the casual observer but can, if not acted upon decisively, cripple or even collapse a major enterprise. But that wasn’t the case with the light brigade. Captain Nolan had the critical piece of information—he had seen the location of the cannons! But, in the heat of the moment he didn’t pass it along. And Lucan didn’t ask him to explain further because he felt Nolan was his inferior and Lucan himself would look bad or somehow weak by asking. Great leaders give, and get, the information needed. Lucan knew he had incomplete information but chose to act anyway. No greatness there. Just poor corpcraft.

So off they rode into “a mile long jaw of death.”

The real tragedy here is how senseless it all was. The biggest box in the failure matrix was simply poor communication. The same thing frequently happens on Boards of Directors. Board level things often don’t happen like they should because the board doesn’t function as a proper, fluid team (and this has nothing to do with Sarbanes-Oxley, that’s a downstream consideration).

Remember, in business the cannons are always there, somewhere. But there’s no reason to ride into them.

Think about it…
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My thanks to the British Government for their help in this account. –TN