On Business Strategies, Tactics & Luck

Writing this blog is a double-edged sword. It's easy to deal out advice - it's quite another thing to walk the talk and take that advice. I'll never be perfect, but I will endeavor to be a doer and not just a sayer in all things - that my motto would be; "do as I say and as I do". For that I know of One perfect example to follow.

October 2009 - The business climate is improving but I still see significant reluctance to "get on with it". Tight credit is indeed an impeding factor but I know a lot of good, responsible Lenders who want to do business - but who will not take willy-nilly risks with businesses who don't have a sound business plan and realistic revenue (note that I did not write "sales") forecast. I'm reminded of the saying, "If not you, who? If not now, when?" Where I DO see gumption and a mind to take action is in the smaller businesses. To them I say - make hay and take marketshare while your management-by-absolute-certainty, waiting-for-the-market-to-return, risk-averse, fearful, lumbering larger competitors procrastinate.

The 2009 PGA Tour® regular season may be over and the Fedex® Cup awarded – but professional business is just getting back into the swing of things.

“I love to play golf, and that's my arena. And you can characterize it and describe it however you want, but I have a love and a passion for getting that ball in the hole and beating those guys.” – Tiger Woods

In July - for those on my email circulation only list which has since transitioned to now include this blog - the title was “Execution”. In it I borrowed from Gary Harpst’s, Six Disciplines® – Execution Revolution (© 2008, Six Disciplines® Publishing). I’m going to go back there for a moment and blend what Harpst brings with some related information I’ve uncovered from Guy Kawasaki (of Apple Macintosh fame) who now leads Garage Venture Partners® – and show them side-by-side.

Take a close look at the presentation below. To the left, a visual from Garage Venture Partners® – to the right a visual from Gary Harpst (copyright credits provided above). Note my title at the top:

Like most business graphics of this sort – and as Guy Kawasaki points out, "high and to the right" - - - right? Are you?

I assure you that all your work to achieve a position in the profit zone will inevitably result in competitor pursuit that will inexorably draw you into the commodity zone. Unless you are deliberate to innovate and pursue new niches - WHILE taking profits – you will be sent to the “fire-fighting” corner. It’s classic. To stay in sector II as a strong Unique and strong Value producer – leadership must balance Strategy and Execution. Tough decisions - like dropping tired (though familiar) and perhaps “dear” product lines (you may even believe that some are your very corporate identity) and seeking new and unfamiliar markets - will be required. Small business shows us the way. We are beyond a mass-production based economy and have moved into mass-specialization. Find your specialty, your unique competency (your arena) and leverage it in as many applications as you can - adapting it to as many profitable markets as you can perceive.
This is not comfort zone stuff. Be honest. Where are you on those visuals?

Did you ever think that the core competencies and what can make your organization come alive in its arena may not necessarily be described by your current product line? Rather, they may be better described by your foundational technology, special methods, know-how, networks and market sector expertise. Looking at it that way may liberate you to discover new markets and needs that you can uniquely and profitably satisfy with new products or adaptations of existing ones. Don’t listen to “dead-wood” executives who blame everything on “unsolvable” circumstances like the economy, competition, uneven playing fields, government – yada yada – resigning themselves to forces greater and unknowable. “Maybe if we just hang on – cut more costs, discount again - the market will return”. Heard that tune? What market is that? Demand some imagination.
“Consistency is the last refuge of the unimaginative.” - Oscar Wilde

SHIFTING TO THE TACTICAL - - -

The Deming continuous process improvement PLAN > DO > CHECK > ACT cycle of management works well in most process environments. The esoterics of continuous process improvement, data mining & evaluation, SPC and transitions to “lean” are the “good” stuff of Production Management, Quality Engineering and “Black Belt” excellence. These disciplines fall into the realm of the Profit Taking Zone/Quadrant III – or - the anteroom of Quadrant IV – Fire Fighting. The competitive landscape brings daily competitor and customer maneuvers, changing perceptions of value and pressures that beckon us to focus all of our attention in Quadrant III. Despite pro-active rhetoric and intent, much of what businesses do is in response to unforeseen, mischievous activity. Life is a hale storm of distractions! Consider the atmosphere of a patrolling fighter pilot and his anxiety when his pristine, uncontested aerodrome is encroached by an adversary who wants to plant him and his smoking wreck of a plane into the dirt. Pro-activity needs a champion and some tactical teeth!

Colonel John Boyd (USAF) was an outstanding fighter pilot during the early years of jet propulsion fighter aviation and he is credited with being the father of the modest but nimble and lethal F-16 warplane. Google the Colonel. Boyd also brought us “OODA Loops”. No, it’s not a cereal.
Boyd’s a tactical Deming. OODA refers to a fluid, action-oriented state of mind that integrates Observation with Orientation with Decisions with Actions. The tactical fighter pilot’s version of; Plan, Do, Check, Act. Observe>Orient>Decide>Act. In that order - no element left out. Every observation leads to orientation and a decision – then action – a maneuver. The quicker the better. Some call it “fast cycling”. It keeps you on your toes. Thomas M. Hout of Boston Consulting Group said, “The OODA Loop limbers up your organization. It keeps you constantly worried about the next cycle.” Tighten the loop, outmaneuver, throw-off your opponent – turn inside his radius of ability. “Disorient” your opponent with pro-action. If one competitor employs OODA thinking – it rules on that field of contest. This and the data that comes from observation and orientation of your business in its competitive markets is the “esoteric good stuff” of your marketing tacticians, your sales force and your product development talent. Lead them to it. Thank Colonel Boyd.
On LUCK:


“Luck is what happens when preparation meets opportunity.” - Coach Darrell Royal
“Fortune brings in some boats that are not steered.” - William Shakespeare
“Some folk want their luck buttered.” - Thomas Hardy
“Shallow men believe in luck. Strong men believe in cause and effect.” - Ralph Waldo Emerson
“The harder I work, the luckier I get.” - Sam Goldwyn

What’s luck got to do with it? Napoleon said that he would rather have lucky generals than good ones. What made them lucky? Some historians say that Napoleon had a bad day at Waterloo – does that make Wellington lucky? He can thank the Prussians. And speaking of Prussians, Helmuth von Moltke (Chief of Staff, Prussian Army 1857-1887) considered it the prime responsibility of military leadership to improve their luck factor thru “extensive preparation” for all possible outcomes. His quote, “No plan of operations extends with certainty beyond the first encounter with the enemy's main strength.” (e.g. no plan survives initial contact with the enemy). All of the great strategists from Sun Tzu to Carl von Clausewitz considered the luck factor. I hope this issue of “View From The Crow’s Nest” brings some tools to bear on the topic.

So, eyes on the ball, swing smoothly, follow through and may your results be – high and to the right!


By the way - I’m a successful CEO available to lead a small to medium sized commercial enterprise in transition, recovery or in its growth phase.

All the best!

Bill