Sun tzu on recession

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Sun Tzu is a well-known philosopher and strategist that had a profound point of view on many spheres of importance. You may have read some of his thoughts in the classic, The Art of War, and some derived editions like the art of business, the art of leadership and even marketing. Unfortunately the philosopher passed away 2500 years ago before any major economic downturn or recession. I had this vision last night of his soul being so restless on missing the golden opportunity of writing his ultimate 9th symphony; I heard him blasphemously describing the angel of death with some half Chinese and half Lebanese adjectives. He moaned on being taken away before the sub-prime crisis, Lehmann brothers, Maddoff and the likes. This metaphysical experience got me wondering as to what the guru of strategy might have written for times like this. Hence very humbly, I attempt to write on his behalf respectfully as a ‘self appointed’ disciple. So here is what I call in Sun Tzu style” The Art of Thriving in Recession”. The year 2009 began with dampened enthusiasm and dented optimism. Despite the new mantra of “Yes we can” from Barack Husain Obama the newly elected president of the world, our happiness is diluted and our peace threatened by the financial injuries that have afflicted our families and organizations. Dinner party gossip continues to center around the number of abandoned cars that are being recovered from UAE airports, the number of static construction cranes that decorate our skyline to rumors that reputed construction companies are offering to pay their suppliers in apartments instead of cash. There is no doubt about the severity of the situation we are in today nor should there be any delusion about the challenges ahead. They are indeed going to be Herculean. But as my guru Sun Tzu encourages “Command your people in a way that gives them a higher shared purpose. You can lead them to death. You can lead them to life. They must never fear danger”. So whilst Sun Tzu’s wisdom dictates that we approach the enemy (our challenges) with full understanding and knowledge, you stand already defeated if you do so with fear and pessimism. “You must make use of war. Do not trust that the enemy isn’t coming. Trust your readiness to meet him. Military leaders must be experts in knowing how to adapt to find an advantage”. Sun Tzu therefore implies that recession is definitely not a problem. It is indeed an opportunity. This era belongs to the tribe of the entrepreneurs that remain focussed on opportunities and have the will, the agility, the foresight and the flexibility to harvest the gains. It is in financial downturns like this that billionaires and fortune 500 companies are created. Sadly on the other hand, recession is also the end of the road for many. It comes in as a periodic cataclysmic upheaval that eliminates elements of mediocrity. In Darwinian logic, this is when the theory of natural selection kicks in and only the fittest move on. The secret as Sun Tzu would have agreed is the speed of adapting to change. “Old dogs will have to learn new tricks”. The so called boom time leaders will swiftly have to think and act like challengers once more or write out their epitaphs. So what kind of species is likely to emerge from the clutches of this economic blitzkrieg, an innocent question I asked the master of strategy in my vision? Is it the soldier tucked away in the bunker with some rations and some ammunition or is it the sniper who ventures out with just his rifle looking for higher ground and an

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A Philosophical Approach to the Downturn “You must make use of war. Do not trust that the enemy isn’t coming. Trust your readiness to meet him,” Tzu writes elsewhere. “Military leaders must be experts in knowing how to adapt to find an advantage.” Recession is not a problem. It is an opportunity. This era belongs to entrepreneurs who remain focused on opportunities and have the will, agility, foresight and flexibility to harvest the gains. It is through financial downturns like this that billionaires and Fortune 500 companies are created.

Transcript of Sun tzu on recession

Page 1: Sun tzu on recession

Sun Tzu is a well-known philosopher and strategist that had a profound point of view on many spheres of importance. You may have read some of his thoughts in the classic, The Art of War, and some derived editions like the art of business, the art of leadership and even marketing. Unfortunately the philosopher passed away 2500 years ago before any major economic downturn or recession. I had this vision last night of his soul being so restless on missing the golden opportunity of writing his ultimate 9th symphony; I heard him blasphemously describing the angel of death with some half

Chinese and half Lebanese adjectives. He moaned on being taken away before the sub-prime crisis, Lehmann brothers, Maddoff and the likes. This metaphysical experience got me wondering as to what the guru of strategy might have written for times like this. Hence very humbly, I attempt to write on his behalf respectfully as a ‘self appointed’ disciple.

So here is what I call in Sun Tzu style” The Art of Thriving in Recession”.

The year 2009 began with dampened enthusiasm and dented optimism. Despite the new mantra of “Yes we can” from Barack Husain Obama the newly elected president of the world, our happiness is diluted and our peace threatened by the financial injuries that have afflicted our families and organizations. Dinner party gossip continues to center around the number of abandoned cars that are being recovered from UAE airports, the number of static construction cranes that decorate our skyline to rumors that reputed construction companies are offering to pay their suppliers in apartments instead of cash. There is no doubt about the severity of the situation we are in today nor should there be any delusion about the challenges ahead. They are indeed going to be Herculean. But as my guru Sun Tzu encourages “Command your people in a way that gives them a higher shared purpose. You can lead them to death. You can lead them to life. They must never fear danger”. So whilst Sun Tzu’s wisdom dictates that we approach the enemy (our challenges) with full understanding and knowledge, you stand already defeated if you do so with fear and pessimism.

“You must make use of war. Do not trust that the enemy isn’t coming. Trust your readiness to meet him. Military leaders must be experts in knowing how to adapt to find an advantage”. Sun Tzu therefore implies that recession is definitely not a problem. It is indeed an opportunity. This era belongs to the tribe of the entrepreneurs that remain focussed on opportunities and have the will, the agility, the foresight and the flexibility to harvest the gains. It is in financial downturns like this that billionaires and fortune 500 companies are created.

Sadly on the other hand, recession is also the end of the road for many. It comes in as a periodic cataclysmic upheaval that eliminates elements of mediocrity. In Darwinian logic, this is when the theory of natural selection kicks in and only the fittest move on. The secret as Sun Tzu would have agreed is the speed of adapting to change. “Old dogs will have to learn new tricks”. The so called boom time leaders will swiftly have to think and act like challengers once more or write out their epitaphs.

So what kind of species is likely to emerge from the clutches of this economic blitzkrieg, an innocent question I asked the master of strategy in my vision? Is it the soldier tucked away in the bunker with some rations and some ammunition or is it the sniper who ventures out with just his rifle looking for higher ground and an

Page 2: Sun tzu on recession

opportunity to over power the enemy. “Attack is the best defense” he roared. The penny dropped for me. Surely his advice to the business leaders of today would have been to focus on the top-line of the P&L and find new and more relevant ways to add value. It’s a pity if it takes a recession to get us to ponder on where the money is wasted. Cost consciousness is indeed a crucial instinct but an entrepreneur’s killer instinct is born out of an obsession to seek and convert more growth opportunities in new and more relevant ways. We are bang in the middle of the creative age, in fact recession has just taken us into hyper drive. As creative animals this is our moment. The need for our skill set has never been more pronounced. The work has to be creative yes! But are we looking at the problem or the opportunity creatively? Are we being creative about our work processes or are we still doing the same old things and hoping for a different outcome? Are we delivering new solutions and ideas to our clients that enable them exploit sitting opportunities? Are we being entrepreneurial and proactive or are we just being safe? Don’t get too emotional and cocky the master whispered again in my vision. “To protect your territory you must go out and capture more” The only way to protect market share is to grow it. The only way to manage risk is to take it.

As I woke up from this sweaty transcendental interaction, a few facts became clear to me. Everyday I spend licking the wounds of my bleeding portfolio, is a day I should spend in looking for newer ways of making my money work better. Even today there are some smart foxes out there still making money for them selves and their organizations. The question is are we one of them? Sun Tzu summarizes the secrets of winning in the following simple yet powerful prescription. “You must know five things to win: Victory comes from knowing when to attack and when to avoid battle. Victory comes from correctly using both large and small forces. Victory comes from everyone sharing the same goals. Victory comes from finding opportunities in problems. Victory comes from having a capable commander and the government leaving him alone. You must know these five things. You then know the theory of victory.”

If managed with the right attitude, recession could be the best thing to have happened to us. As creative entrepreneurs this is our time. Believe me, I have the backing of Sun Tzu on this.

SAM HusainiManaging DirectorImpact BBDO Abu Dhabi

Disclaimer: The views expressed are solely my own and do not necessarily reflect the corporate position of Impact BBDO