Sun Tzu and Zhuge Liang on Entrepreneurship
Famous general Sun Tzu following many successes on the battlefield based on his principles on strategy, training, command of troops, as well as philosophy of relationships between the sovereign and his army compiled a booklet of principles summarizing them in a form of instructions. Sometimes very broad and in some cases specific it has been passed through history as a guidance for military commanders and strategists throughout eventful Chinese history, and in recent time has seen being adapted in European and North American philosophy and applied in a variety of disciplines. One of the areas that has been widely applied is entrepreneurship in various forms. Original quotes from the Art of War has been extensively commented and elaborated by a number of strategists and philosophers. One of them is Zhuge Liang, another famous military strategist and politician during the turbulent and complex time of early 3rd century AD. His comments continue in the same style of broad principles although lengthier while remaining within broad framework of original message of knowing your opponent and battle field deception.
“Remove the ladder when the enemy has ascended to the roof”
Entrepreneur’s Character
Both entrepreneurship and armed conflict have a common point on the nature of authority and hierarchy, dictatorial nature for both cases. That is why the concept of authority deriving from authoritative powers based on the same principle that all those below are to follow orders and instructions from the authority above them. If the owner of the firm is to be considered equivalent of a general of the army on the battlefield then all orders and instructions are orders and instructions are to be followed without exceptions. Principle of dictatorship for firms would mean that instructions cannot be compiled in a form of will by majority. Orders will always come form the owners and eventual inputs from below are at the exclusive discretion of the decision maker.
“Sages follow the rules of heaven; the wise obey the laws of earth; intelligent follow precedent”
However, Sun Tzu himself described battle as constantly changing and therefore the one commanding is to adopt its strategies. This is an equivalent description of a changing market circumstances. Additionally, firm management is a blend of many skills, which in practice means several people in number and skills.
Art of War would not have been such a timeless work if Sun Tzu and later Zhuge Liang wouldn’t pay particular attention to the importance of people. In reality knowledge of people’s character seems to be one of those requirements that a typical entrepreneur falls short of. From the very start special attention is given to the choice of those working with describing specific qualities while at the same time paying attention to the importance and complexity of each individual character. Despite all difficulties original text and subsequent commentaries highlight importance of consulting and involvement of others and giving specific examples that will help understand their extensive qualities.
“Nothing is harder to see than people’s nature”
Without forgetting the context and time when Sun Tzu lived there an inescapable element of divinity throughout the book. This element is also strongly present during Zhuge Liang’s commentaries. Characteristics of sages are reflected alongside the role that the ruler has in establishing the will of heaven giving him the right to punish his subjects and embark on military campaigns. Along description of a sage entrepreneur on her/his part should pay attention to those that he/she associates with; above all he/she should associate with the wise and able. On the other hand, greed and jealousy towards the wise and able are mentioned as the first worst decadence of a general and, for our topic, entrepreneur. Recalling from my extensive experience with several firm owners not limited within the position as an employee, I came across owners who saw a competition if an employee surpassed them on abilities even in those cases when it didn’t have anything to do with the firm and the industry they were operating in. whenever I have a chance to read Art of War and similar texts I recall those cases and in a way feel sorry for them having missed such opportunities with their employees.
On market and competitiveness
“Every battle is won before it is fought”
Evaluating competitors and market potential is to compare what the authors said about evaluating opponent’s armies. It is very important to remember that Sun Tzu was consistent in preparation prior to committing for the battle or military campaign. original text and following commentaries go into details in describing principles about evaluating opponents. Consistency of the main message of the book continues with the rule of order, in this case the evaluation starts inwards and from the top, along the concept of dictatorship; everything comes from the above and further below it goes orders are more precise and there is less flexibility in executing them. Unfortunately, it also shows no empathy for human lives. Wise leadership, capable managers, better supply channels, trained and disciplined workforce, are all taken into consideration on evaluating opponents.
“Watch the fires burning from across the river”
However, analyzing the market is also given separate attention. It is not advisable to enter in a market with several competitors who are competing closely for business. The idea is to closely observe on the possible outcome and wait until competitors suffer such damages that it will make entry into the market cheaper and competing easier. This is typical for markets with several firms fighting for every customer which will inevitably cause margins to fall. The proper way to enter the market is recommended through planning first and then going into action. While always monitoring environment and all players within, it is always recommended to keep a calmer mind and keep the option for exit from the market; recognizing when to proceed and when to withdraw. In fact, for Sun Tzu and Zhuge Liang withdrawing is part of strategy and reflected anecdotally on the saying; of the thirty-six stratagems, fleeing is best! The detailed commentary is strict in avoiding total loss, a reflection that an entrepreneur maybe will not get right on the first time, but it should not give up trying.
Broad messages from classical texts
Timelessness of Art of War is undisputed. In current age of technology and extensive cultural exchanges there can be only further appreciation of the original text and other commentator’s messages, which there are many. Because they are so broad and philosophical, they are easily adapted in areas such as entrepreneurship. In fact, it is their broad nature and concentration on principles that it makes them attractive and timeless. Sun Tzu lived in approximately same time as Confucius, and although there is no reference to one another in their writings, their concentration on practicality of their teachings is very much common. We could say that wagging a war is as practical as it gets, however his principles written afterwards almost exclude divine guidance or spirituality in any form. It seems that practicality in itself is timeless and divine at the same time.