How to Develop a Winning Strategy like Sun Tzu, the Great Strategist

Sun Tzu is one of the most influential military strategists. His seminal work, The Art of War, has affected both Western and Eastern philosophy and military thinking. According to the historical record, in his nearly 40 years of career as a general, Sun Tzu never ever lost a battle, a campaign, or a war. A remarkable feat, indeed!

Even though The Art of War is over 2,500 years old, many of the described principles are still valid. This is as I described in my book, The G.O.S.P.E.L. of Strategy, the principles of winning are timeless and universal.

Sun Tzu, the Great Strategist

If Sun Tzu were a modern businessman, what would he say about Winning Strategy?

To answer the question, I have taken the liberty to adapt Sun Tzu's Art of Strategy, Book 1, Article 1-17 about Laying Plans:

1. Laying Strategy

1, 2. Sun Tzu said: The art of war is of vital importance to the State. It is a matter of life and death, a road either to safety or to ruin. Hence it is a subject of inquiry which can on no account be neglected.

1, 2. Sun Tzu could have said: The art of Competitive Strategy is of vital importance to a Firm. It is a matter of life and death, a road either to prosperity or to bankruptcy. Hence it is a subject of inquiry that can on no account be neglected.

3, 4. The art of war, then, is governed by five constant factors, to be taken into account in one's deliberations, when seeking to determine the conditions obtaining in the field. These are: (1) The Moral Law; (2) Heaven; (3) Earth; (4) The Commander; (5) Method and discipline.

3, 4. The art of Competitive strategy, then, is governed by five constant factors, to be taken into account in one's deliberations, when seeking to determine the conditions faced in the market. These are:

1. The Firm’s Purpose;

2. The Market Trends;

3. The Competitive Landscape;

4. The Firm’s Leader;

5. The Firm’s Business Model.

5, 6. The Moral Law causes the people to be in complete accord with their ruler, so that they will follow him regardless of their lives, undismayed by any danger.

5, 6. The Firm’s Purpose causes the firm’s employees to be in complete accord with their CEO, so that they will follow him/her regardless of the challenges, undismayed by any hardship.

7. Heaven signifies night and day, cold and heat, times and seasons.

7. The Market Trends signify boom and bust, uptrend and downtrend, times and seasons.

8. Earth comprises distances, great and small; danger and security; open ground and narrow passes; the chances of life and death.

8. The Competitive Landscape comprises intensity of competition; large or small market size; weak or strong positioning; threats of substitutes and barriers to entry; the positive opportunities and negative threats.

9. The Commander stands for the virtues of wisdom, sincerely, benevolence, courage and strictness.

9. The Firm’s Leader stands for the virtues of wisdom, sincerity, benevolence, courage, and strictness.

10. By method and discipline are to be understood the marshaling of the army in its proper subdivisions, the graduations of rank among the officers, the maintenance of roads by which supplies may reach the army, and the control of military expenditure.

10. By Firm’s Business Model is to be understood as the organizing of the employees in its proper subdivisions, the career path of the employees, the maintenance of the value chain by which results may be delivered, and the control of financial expenditure.

11. These five heads should be familiar to every general: he who knows them will be victorious; he who knows them not will fail.

11. These five heads should be familiar to every CEO: he/she who knows them will be victorious; he/she who knows them not will fail.

12, 13, 14. Therefore, in your deliberations, when seeking to determine the military conditions, let them be made the basis of a comparison, in this wise:-- (1) Which of the two sovereigns is imbued with the Moral law? (2) Which of the two generals has most ability? (3) With whom lie the advantages derived from Heaven and Earth? (4) On which side is discipline most rigorously enforced? (5) Which army is stronger? (6) On which side are officers and men more highly trained? (7) In which army is there the greater constancy both in reward and punishment? By means of these seven considerations I can forecast victory or defeat.

12, 13, 14. Therefore, in your deliberations, when seeking to determine the strategic competitiveness, let them be made the basis of a comparison, in this wise:--

1. Which of the two CEOs is imbued with the stronger purpose?

2. Which of the two CEOs has the better ability?

3. With whom lie the advantages derived from Market Trends and Competitive Landscape?

4. On which side is Business Model most rigorously enforced?

5. Which company is financially stronger?

6. On which side are managers and employees more highly trained?

7. In which firm is there the greater constancy both in reward and punishment?

By means of these seven considerations, I can forecast flourishing business or bankruptcy.

15. The general that hearkens to my counsel and acts upon it, will conquer: let such a one be retained in command! The general that hearkens not to my counsel nor acts upon it, will suffer defeat:--let such a one be dismissed!

15. The CEO that hearkens to my counsel and acts upon it, will conquer: let such a one be retained in command! The CEO that hearkens not to my counsel nor acts upon it, will suffer defeat:--let such a one be dismissed!

16, 17. While heading the profit of my counsel, avail yourself also of any helpful circumstances over and beyond the ordinary rules. According as circumstances are favorable, one should modify one's plans.

16. While heading the profit of my counsel, avail yourself also of any helpful circumstances over and beyond the ordinary rules. According as circumstances are favorable, one should modify one's strategy.

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As you can see, the principles laid out over 2,500 years ago can still be useful. The principles of Winning Strategy are just like that. Read more about them here.

Alternatively, you can learn more about winning strategy here.

Finally, let me leave you with this observation from Sun Tzu.

Now the general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory, and few calculations to defeat: how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose.

Or Sun Tzu could have said: Now, the CEO who wins a competition makes many analyses before the battle is fought. The CEO who loses a competition makes but few analyses beforehand. Thus do many analyses lead to victory, and few analyses to defeat: how much more no analysis at all! It is by attention to this point that I can foresee who is likely to win or lose.