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OLD STRATEGY FOR TODAY'S MANAGERS
FEB 18, 1996 -
THE STAR
By S. Hadi Abdullah
THE recent Chief Executives' Thinkin, a programme organised by
MIM Intan and the Myer's Foundation of Australia, brought
forth many interesting things. Among the compulsory readings
were parts of Sun Tzu's Art of War, Kautilya's Arathasastra,
Nicollo Machiavelli's Prince and Ibn Khaldun's Muqaddimah. The
Art of War and Arathasastra were written about 2,000 years
ago, and the Prince and Muqaddimah some 400 years old
Sun Tzu's Art of War has been translated into many languages
and has become a sort of best-seller in management circles. We
now have it in cartoon form for easier learning. When looked
at simplistically, this ancient work makes much common sense.
It is said that the French first translated it and found Sun
Tzu's strategies terrific and practical. They used it in the
training of their military. Mao Zedong is said to have used
its teachings liberally with the often quoted saying: "When
the enemy advances, we retreat; when the enemy halts, we
harass; when the enemy avoids battle, we attack; and when the
enemy retreats, we pursue."
Sun Tzu propounds that the best way to win a war is by not
fighting. Try and win by other means - negotiate, threaten,
deceive, etc. He says that a good general would make his
enemies feel that he is not ready when in fact he is; likewise
he would make the enemy feel that he is far when in fact he is
near, and vice versa.
Management gurus say this is exactly what managers should do
with their competition, making them think the early sales is
in September when in fact it is in June. The generals in the
Gulf War too went into a lot of trouble to make Saddam Hussein
believe that they were going to attack Iraq by sea when they
had the exact opposite in mind, that is air raids.
Sun Tzu asks the general to look into the enemies' weakest
link. No matter how strong he might be, there would be some
point which the general could penetrate. It is said that the
Proton Saga used this strategy. There was a niche for the
small car (price competitive) in the Malaysian market and
overseas.
The philosophy of "separate the fish from the water" was
applied in Malaysia's fight against the communists where new
villages, food control and restriction of movement were
successfully used to "cut off" the communists.
Sun Tzu talks about taking care of the soldiers, especially
before an impending attack, likewise managers should take care
of their staff, especially if the company is going to embark
on a new and difficult project.
Kautilya's Arathasastra, on the other hand, is a handbook for
the king. The book is comprehensive, covering areas of
taxation, how to rear goats and cows, strategies of conquering
neighbours, and even poisoning a king.
Of Brahmin origin, Kautilya tried to sell his ideas to a
number of rulers. In the beginning, he was unsuccessful.
However, he managed to convince a ruler by the name of
Chandragupta, who successfully used his methods and built a
large empire at around 30OBC.
One of Kautilya's suggestions to a ruler who wants to conquer
his neighbour involves setting the neighbour's brother against
him with the promise that the brother would be made the ruler
under the tutelage of the conqueror. We can find examples of
this today, especially in politics in certain countries.
Kautilya tells of time management and doing the right thing at
the right time. He advises the king to divide his day into 16
equal different time periods starting with a discussion in the
morning about defence, income and expenditure, the affairs of
the citizens, bath and study, receiving revenue, consulting
ministers, briefing from spies, reviewing the army and
elephants, and worship.
The pattern at night involves music, feedback from spies,
worship etc. It can be said that Kautilya was propagating
harmony and balance.
However, he seems to be addressing a society that is
relatively stable, a society that does not expect to see much
change. The status quo is what he is propagating, by defining
the ruler's various roles as a symbol and embodiment of the
state.
Recently management gurus have agreed that an organisation
needs both flexibility and dynamism that can address change
and a certain amount of status quo and stability to keep
things going. Microsoft has forged ahead because of its
innovative founders who are creating change, while a good set
of managers operate the system and run the office. This
strategy gives both flexibility and stability.
Kautilya also talks of how a ruler should maintain his image.
He says that the ruler's officials must make sure that they
give the "right" information about the ruler to his subjects
at the market place and elsewhere.
They, like spies, should constantly bring him information
about what is happening in his own kingdom and those of his
neighbours'. This is not too far from what CEOs should do to
maintain their image-constantly receiving feedback about what
is happening in their office and in the market place.
Even his advice to the ruler of the need to kill his son if
the latter shows an inclination to usurp the throne, although
too drastic by today's standards, seems applicable to a obtain
degree, especially in family-run organisations.
Fathers have been known to managerially "kind their offspring
in extreme circumstances where the son shows signs of "taking
over" or is messing up the business. Get there by "any
means," but once you get there, change your ways, says
Kautilya.
While Kautilya talks of a "static" society, Machiavelli seems
to address a dynamic one in his advice to the princes of
Italy. He continuously talks of flexibility and the need to
change. A high official in the Florentine Republic,
Machiavelli wrote his book in 1513 to advice rulers on how to
gain power and keep their country strong.
Among his advice is the need for a ruler to be "bloody" and
nasty when he conquers a state in order to get rid of his
enemies. This should be done at one go while rewards, he says,
should be given in small doses. This would equate a modern CEO
taking over an organisation and getting rid of unnecessary
things and making changes at one go and, of course, giving his
rewards gradually.
Machiavelli constantly emphasises the need for a ruler's
presence at his newly-conquered land. This will give him
strength and loyalty, and will be difficult for others to take
this land. Managers will realise that new branches would have
to be manned by good people with close supervision from the
boss Kim Woo Choong of Daewoo has slept many a time in his new
"shop floor."
Machiavelli advised the princes to avoid being extravagant for
this could mean further taxing the people. Rulers should be
prudent and keep their money for important needs. Managers can
surely learn from this advice.
He also warned the princes to be wary of flatterers.
A ruler cannot make one big error after another. Likewise, a
CEO cannot afford to make one major mistake after another.
They are bound to catch up.
Machiavelli talks of a ruler's need to have mass support, to
strive for cohesiveness, have the will to survive and set a
good example. So do managers.
Machiavelli did to some extent expound the fact that the end
justifies the means. His motive to preserve the state even by
cruelty has led people to think he encourages treachery.
However, many of the things he says makes much sense today.
The seven-volume Universal History-Muqaddimah by Muslim
scholar Ibn Khaldun has been described by historian Arnold
Toyanbee as the greatest work of its kind. Ibn Khaldun
believed that hard work and cooperation brought wealth.
However one should be careful as selfishness, corruption and
greed can lead to failure.
The work was written in the 14th century AD. The author
constantly praised the Almighty, impressing on his readers to
be thankful to Him.
A passage addressing the civil servants at that time is
interesting. The "chief secretary" addressing his subordinates
reflects that they must work hard, learn continuously, be
loyal to the ruler, not to be corrupt, not to indulge in
luxuries, treat their subordinates well, be inquisitive, fair
and set good examples.
Throughout his writing, Ibn Khaldun stresses accountability
and a code of conduct. This passage at least seems to
encourage the status quo harmony and balance.
Among his interesting quotes are:
"No one should let himself be deceived by his own opinions and
consider himself free from mistakes. Nor should he strive to
undo his friends, equals colleagues or his family. Everybody
must give praise to God."
"He who accepts good advice is successful."
There is much wisdom in his sayings.
What can managers learn from the four examples? In history,
classics, philosophy and religion there are many lessons to be
learnt, especially on leadership. Some of the strategies that
had been used before are still applicable, today.
Human greed has been mentioned by all four writers, that it
could easily lead to a person's downfall. The fact that a good
leader has to be frugal and not over-indulge, and see to the
needs of society, is pertinent today. Information and the
awareness of what is happening around will be good for today
and tomorrow.
Ancient writings can help managers conceptualise, fine-tune
and think through things, and see what lessons can be learnt
from them.
Managers should not dismiss the was irrelevant for there is
much wisdom in the works of ancient thinkers, not only in
helping to build a history and culture for the organisation
but a nation or company that they can be proud of.
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