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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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