Strategic Patience in Business: Lessons from WWII

To pursue or not to pursue is a crucial strategic decision. Strategic patience is a powerful concept that becomes clearer through historical examples. A vivid illustration of this can be found in World War II, where the Soviet Army's deliberate inaction during the Warsaw Uprising allowed German forces to dismantle the Polish resistance. Similarly, in the business world, companies often employ strategic patience by allowing competitors to win bids based on lower prices while maintaining their commitment to value. These companies re-enter the market when their competitors falter and lose reputation. This approach underscores the importance of long-term vision and strategic timing in achieving ultimate success.

The Historical Context: Warsaw Uprising of 1944

During the Warsaw Uprising of 1944, the Soviet Army, under the command of General Konstantin Rokossovsky, decided not to advance and assist the Polish resistance forces. General Rokossovsky was the commander of the 1st Belorussian Front, which had reached the outskirts of Warsaw and halted its advance at the Vistula River.

Warsaw Uprising began on August 1, 1944, the Polish resistance Home Army (Armia Krajowa) sought to liberate Warsaw from Nazi occupation. They timed their uprising with the advance of the Red Army, hoping for Soviet support to secure an independent post-war Poland. However, the Soviet forces halted their advance at the Vistula River and refrained from assisting the Polish insurgents. This inaction allowed the Germans to focus on and crush the uprising, which they did by October 1944 .

The Soviets resumed their advance into Warsaw only after the Germans had obliterated the Polish resistance. By January 17, 1945, the Red Army entered a ravaged Warsaw with minimal opposition. This strategic pause ensured that the Soviets could take control with ease, minimizing resistance from the weakened Polish nationalist forces and establishing Soviet influence over Poland .

Business Parallel: Strategic Patience in Product Launch

A real-life widely covered example is personal computer market. In the early 1980s, Apple was first to market with the Macintosh, a personal computer with a graphical user interface. Apple’s Macintosh initially had a technological edge, but Microsoft’s strategic patience paid off. When Microsoft launched Windows 3.0 in 1990, it capitalized on the market groundwork laid by Apple.

Real-Life Example: $10B Defense cloud contract.

In 2018, Google decided not to bid for the $10 billion contract, citing ethical concerns over the use of artificial intelligence according to news coverage . As the project struggled, Google continued to advance its cloud technology and maintain a strong ethical stance, positioning itself as a leader in responsible AI development. JEDI contract awarded to a competitor was eventually canceled in 2021. Google was well-positioned to engage with new defense projects that aligned better with its principles and technological strengths .

Lessons from Strategic Patience

1. Long-Term Objectives over Immediate Gains

2. Exploitation of Opponent's Weaknesses

3. Resource Conservation

4. Control Over Outcomes

Ethical and Moral Considerations

Both strategies raise ethical questions. The Soviet’s decision resulted in significant human suffering, while in business, allowing a competitor to fail can affect stakeholders negatively. These strategies underscore the importance of balancing strategic goals with ethical considerations and potential reputational risks.

References

• Davies, N. (2004). "Rising '44: The Battle for Warsaw." Viking.
• Zaloga, S. J. (2002). "The Polish Army 1939–45." Osprey Publishing.
• Erickson, J. (1999). "The Road to Berlin: Stalin's War with Germany: Volume Two." Yale University Press.
• Isaacson, W. (2011). "Steve Jobs." Simon & Schuster.
• Manes, S. & Andrews, P. (1993). "Gates: How Microsoft's Mogul Reinvented an Industry—and Made Himself the Richest Man in America." Doubleday.
• Lohr, S. (2018). "Google, Citing AI Principles, Says It Will Not Renew Pentagon Contract." The New York Times.
• Mehta, A. (2019). "Microsoft wins $10B Pentagon cloud contract, beating out favorite Amazon." Defense News.
• Weise, K. (2021). "Pentagon Cancels Disputed JEDI Cloud Contract." The New York Times.