‘The Art of War’: The greatest strategy book ever written | Roger Martin

Summary

The transcript discusses the relevance of 'The Art of War' in business strategy, drawing parallels between military tactics and business competition. It emphasizes the importance of understanding one's own strengths and those of competitors, and the philosophy of avoiding unnecessary conflict. The speaker highlights Sun Tzu's teachings on subduing the enemy without fighting and the concept of creating a win-win scenario. The summary also touches on treating employees well and the evolution of business strategy to include customer-centricity and design thinking.

Takeaways

• 📚 'The Art of War' is a philosophical book that can offer valuable insights to MBA students and business leaders.
• 🧠 Military strategy emphasizes understanding both one's own strengths and the enemy's, which is also crucial in business strategy.
• 🌐 The concept of strategy in business is relatively new, originating from military strategy in the late 1950s and early 1960s.
• 🤝 Business strategy is not just about numbers and analysis; it's also about understanding the human and philosophical aspects.
• 🏆 Sun Tzu's philosophy suggests that the best strategy is to win without fighting, which can be applied to avoid destructive competition in business.
• 🔄 The goal of business strategy should be sustainable outcomes, not just crushing competitors.
• 🚫 Avoid creating enemies in business by giving potential competitors other areas to focus on, thus preventing prolonged conflicts.
• 🛣️ When competing, leave an outlet for competitors to retreat to, which can lead to a more peaceful business environment.
• 💡 Treating employees like family can lead to increased loyalty, creativity, and better customer service.
• 👥 Modern business strategy now recognizes the importance of the customer, in addition to the company and competitors.
• 🎨 Design has become integral to business strategy because it focuses on understanding and serving customers well.

Q & A

What is the main comparison made between 'The Art of War' and an MBA in the transcript?

The transcript suggests that 'The Art of War' offers a broad philosophical perspective that is different from the analytical approach of an MBA. It implies that while an MBA focuses on numbers and analysis, 'The Art of War' provides strategic insights that are valuable for business.

Who are the two actors that military strategy traditionally focuses on?

Military strategy traditionally focuses on oneself (the army or country) and the competition (the enemy), analyzing their strengths and resources to decide on strategy.

How does the concept of strategy in business differ from military strategy according to the speaker?

The speaker indicates that business strategy is a relatively new field that originated from military strategy. However, unlike military strategy, business strategy has evolved to also consider the customer as a significant actor, in addition to the company and competitors.

What does Sun Tzu emphasize as the supreme art of war?

Sun Tzu emphasizes that the supreme art of war is to subdue the enemy without fighting, aiming for a sustainable outcome that avoids unnecessary destruction.

What is the advice given by Sun Tzu regarding the treatment of one's own army?

Sun Tzu advises treating one's own army as if they were one's own beloved sons, suggesting that this approach will lead to loyalty and dedication.

How does the transcript relate the concept of prolonged warfare to business strategy?

The transcript suggests that just as prolonged warfare is detrimental, so too is prolonged business competition that creates enemies. Instead, the aim should be to create a win-win situation that avoids ongoing conflict.

What is the significance of leaving an outlet free when surrounding an army, as mentioned in the transcript?

Leaving an outlet free when surrounding an army is about not pressing a desperate foe too hard, allowing them a chance to retreat or find another place to compete, which can be applied to business by creating opportunities for competitors to move to different markets or segments.

What is the importance of treating employees well in the context of business strategy?

Treating employees well is crucial as it fosters loyalty, creativity, and a customer-centric approach. The transcript suggests that treating employees like family can lead to better customer service and development of talent within the organization.

How has the role of the customer evolved in business strategy over the last 40 years?

Over the last 40 years, the customer has become a central focus in business strategy. There has been a shift from a tripartite view that includes the company, competitors, and customers, to a more customer-centric approach, recognizing the importance of understanding and serving customers better.

Why is the bond between strategy and design considered powerful in creating solutions for customers?

The bond between strategy and design is powerful because strategy provides insights into the company and competition, while design focuses on understanding customers and creating offers for them. Combining these perspectives results in solutions that are well-aligned with customer needs.

What is the role of design in modern business strategy as discussed in the transcript?

Design plays a significant role in modern business strategy because it focuses on the customer experience. It is seen as a field that has the best training in understanding customers and creating offers for them, complementing the traditionally company and competition-focused business strategy.