(Things to Include in a Corporate Warrior’s Toolkit)
Last week I was invited to dinner by two longtime readers of this
newsletter that happened to be in town. Both are well known as being effective capitalists
on a large scale. Both have, on occasion, been loudly criticized for being a bit
on the savage side. Victors often are. That said, they have both done an outstanding
long-term job of driving increasing equity holder value so, in my book, they are
ok guys. I wrote about a meeting with one of them in How a Famous
CEO Stays So Calm.
After agreeing on The Fundamental Rule ("Add value to the
customer.") we got into a lengthy discussion about competitive behaviors and
philosophies for competing to win in today's, and tomorrow's, marketplace. I started
scribbling out notes and have put the tenets into the list below. It was an interesting
and useful evening to say the least.
I encourage you to forward this to your staff since, eventually,
the good of a competitive mindset, shared by all, reaches down and out to the tiniest
roots in a world-class company and eventually finds its way out to the equity holders’
wallets.
This is a good basic
list to pedal through while making any competitive decision. Keep it handy:
1.
Act according to a plan only after a thorough analysis
of the possible outcomes.
2.
Minimize damage to the competition. Capturing him
intact will typically maximize your gain (said from an M&A perspective but useful
elsewhere).
3.
Maximize profit by minimizing the use of force, which
is expensive. Force is more efficient when not actually used. The optics of known,
but withheld force, are onerous.
4.
Weaken your competition before engagement (hire away
his most valuable executives, disrupt his supplies, maybe spread around some FUD,
etc.). This effectively strengthens you.
5.
Shape, or control, your competition. Make him do
things he would not normally do (lure him into undesirable markets, force up his
costs, make him trip). While often fun to do, these things should all be designed
to increase your advantage and relate to a specific goal of some sort and not just
to amuse you (Though that does have value. We work hard and life is short. Have
fun. - Tal)
6.
Analyze every possible course of action for the advantages
and disadvantages of every possible outcome. Endeavor to convert your own disadvantages
into advantages, and your enemy's advantages into disadvantages.
7.
Use your enemy's own psychological and philosophical
structures against him. Somewhat tough to do (and can backfire badly) but when successful
this will rattle him and may have him gasping, “But hey, I thought we were the good
guys!”
8.
When attacking/moving into a new market be extremely
sensitive to any changes and adapt accordingly. "Be like water" (adapt
to the terrain). Keep in mind you’re probably being watched so ask yourself “What
do they see and what can they conclude from what they see?” Then ask, “How can I
modify what they see to my advantage?”
9.
Attack with sufficient strength where you are not
expected. Note: One of my hosts suggested using overwhelming force to debilitate
the opposition. The other thought this would suggest you had misjudged the situation
and thus wasted resources. I agree with the later. Less waste and destruction means
more profit for you and yours.
10. Try
to achieve your goals via indirect methods your competition doesn't expect. Again,
always be "unfathomable". If you are unfathomable your competition will
have a very difficult time effectively planning and executing against you.
11. Speed
is everything. Always be asking yourself "How can I get this done quicker without
more costs." Quicker wars (of all kinds, even with kids I’m still learning)
are cheaper.
12. Think
it through. Never forget that battles are won or lost before they are fought.
The list is longer but these are the easy-to-deploy heavies.
It's a quick list when you get used to the “mode of thinking”.
Think about it…
I had a useful sign made for my office wall: "Business Bullets
are fast. Fire first." -T. Newhart
