Sustained initiative, a victorious situation

A thesis on Best Management approach towards a sustaining a victorious situation

“It is according to shape that I lay the plans for victory. But the multitude cannot comprehend this. Although everyone can see the outward aspect, none understands the way in which I have created victory. Therefore, when I have won a victory, I do not repeat my tactics nut respond to circumstances in an infinite variety of ways.” The Art of War, Sun Tzu

Before there was TQM, Discipline of Market Leaders, The Fifth Discipline, Blue Ocean and 7 Habits, there was the punic war. Before there was Steve Jobs, Peter Drucker, Warren Buffet, John Gokongwei and Richard Branson, there was Barca and Scipio families locked in bitter rivalry over their nation’s destiny. Before we could have been taught about competitive advantage and value proposition, we have read about the war elephants of Carthage and the splendid field tactics of Gen. Hannibal. Before we could be trained in the value of strategy, we have learned the lessons of history how Gen. Hannibal failed to conquer Rome due to the flaws in his strategy. It seem that his strategy did not connect with the sentiments of the Italian peninsula. As expressed simply by Sun Tzu, the human element will remain decisive in battle and in operation. Gen. Hannibal psychological warfare could not match the morale ground of Rome. Despite his tactical prowess in the battle field where thousands of Roman Legions failed, Hannibal’s strategy to divide the Italian alliance could not match the value offering of Rome – the idea of honor and justice, the concept of civilization over barbarians. Before we could have been taught about TQM continuous improvement, we have read how successfully Scipio Africanos improved Roman tactics to defeat Gen. Hannibal in his own game

Sustained initiative by responding to circumstances in an infinite variety of ways. A flair for leadership and management competence. A leadership with a profound strategy and the tactical competence for manoeuvre and effective decision making. If I may borrow an ancient text from the Art of War,  sustained victory in battle and in operation may be achieved as follows:

Five Essentials for Victory:

1. He will win who knows when to fight and when not to fight. Decision making.
2. He will win who knows how to handle both superior and inferior forces. Technical Expertise.
3. He will win whose army is animated by the same spirit throughout all its ranks. Morale.
4. He will win who, prepared himself, waits to take the enemy unprepared. Prudence.
5. He will win who has military capacity and is not interfered with by the sovereign. Leadership.

A strategy sustained by a fluid and sustained tactical operation which innovates continuously and relentlessly. The market place is evolving everyday. Better is no longer better, what is cheaper is no longer cheaper, faster is fastest and fastest has to be faster – cheaper, faster and better is re defined everyday. Thus, a need for a disruptive and transforming concept to challenge the status quo and redefine value as it is.  Changing customer perception needs to be studied and anticipated. No amount of Best Value offering on product leadership, customer intimacy and operational excellence can ensure a company of market domination. As value offerings are innovated, the perception of the market is evolving and innovation needs to be tuned according to consumer behaviour trends. Trends as:

      Is there truly a shift in retail from malls to on-line shopping?

      are the standards for employment shifting towards a performance based workplace over biometric?

      Are consumers  preferring on line transactions over traditional over the counter?

      Is laptop and internet becoming a household commodity?

      Will the growth of health and wellness industry sustain for the next 30 yrs?

      Is convenience the new dictum of retail?

      How are the millennial generation affecting the corporate work force?

      How is the impulse triangle affecting retail in the 21^st century?

      How will increasing cost of doing business with modern trade influence other distribution format as direct selling and networking?

      Will on shelf logistics thrive in the Philippine market? How about on shelf retail?

      With prices being bargained down across the transport industry, what is the new value offering which customers are willing to pay premium for?

      Is the 24hrs operation a solution to cheaper, faster and better?

      Between national and local distributors, who will win the market place?

      How is the ASEAN integration affecting the Philippine market?

      What is the impact of ASEAN integration to the manufacturing landscape in the Philippines?

      What is the impact on berth congestion on the supply chain industry in the Philippines?

      How will port development affect the Philippine economy in the next 30 yrs?

      Is the Philippine work force competitive to its ASEAN neighbours?

      How is the Mindanao business schools  fair with its Luzon and Visayas counterparts?

      How would SMEs, retail, distribution, transport, hospitality, and logistics react to ASEAN integration?

      Can 7eleven and MDC sustain its double digit growth in Mindanao?

      Is the learning organization system in place among local companies?

The process of identifying key customer touch point is a standard marketing process. It is part of target market identification and demographic profiling. Identifying a specific customer behaviour and matching it with a specific product and marketing campaign is the first step in the marketing process. In FMCG setting, identifying niche opportunities and market segment growth areas is a Brand Management accountability. How safeguard is so fortified in its “germ killing” segment is the Brand Managers deliverable. How safeguard is extending its appeal to beauty segment with its papaya soap variant is a niche market Brand initiative.

So disruptive was the design and technology of itune, it defined the music retail landscape forever. So transforming the concept of mobile phone, it even defined the lifestyle of a whole generation. So revolutionary was the efficiency of Singapore Ports, it defined the supply chain designs of a whole region. So effective was langhap sarap campaign of Jollibee, it is the no.1 Filipino food chain in the world. So enticing was the peeling effect of Maxipeel, it created its own niche market over brand giants as Ponds and Olay.

“swift as the wind. Quiet as the forest. Conquer like a fire.” Each identified opportunity must be a secret kept as quite as the forest. Waiting for the right moment to strike.  strike as swift as the wind. conquer like the fire.

With strategy identified, calculated and duly formulated, it all goes back to execution. Accurate, decisive and swift like the wind. As prudent as the Gokongwei when Cebu Pacific was in its inception – quiet as the forest the Gokongwei waited for the right moment to strike and prepared, swift as the wind, they conquered like a fire such that no action of Philippine Airline can stop the raging force of their concept – their strategy. Leadership, Technical Expertise, Prudence and right decision making in responding to market situation in an infinite variety of ways is ensuring the viability and sustainability of Cebu Pacific.

2014 PLOC Field Notes

O - PL"O"C

Organization. Covers principles as Teamwork as displayed in the victory of the Greeks over the Trojans. The skill of achilles in man to man combat, the wit of Odysseus in the concept creation of the Trojan Horse strategy and the leadership skill of Agammemnun in managing a huge military force from various city states with different personalities. It took me time to realize the magnitude of this concept. To rest upon one soldier's or captain's shoulder the weight of victory is out of order for victory in Sun Tzu's treatise is the responsibility of the General and to obey is that of a soldier.

C - PLO"C"

Control. Having closely worked with a local businessman in Leganes, Iloilo, I have realized the implications of Control over and above the concept of Measurement which includes to Command. Accuracy in execution can only be achieved thru proper disposal of Command or control of the  human factor on day to day, hour by hour, minute by minute Command. Sun Tzu explains that Command is the capacity of a General for Sincerity, Humane, Wisdom, Courage and Strictness. A soldier or an employee or a salesman for that matter must have some sort of personal day to day connection with his commander; a personal allegiance, awe, respect and fear so that he will be able to conquer his personal doubts and allow the team's agenda to take control.

P - "P"LOC

Plan. Strategy. Aligned with SWOT and Porter's Five Analysis for sustainability. 'the victorious situation is a product of the skillful commander's creative imagination".

L - P"L"OC

Leadership. the most vivid description i had of leadership is a verse from Clausewitz's On War: " as the forces in one individual after another become prostrated and can no longer be excited and supported by an effort of his own will, the whole inertia of the mass gradually rests its weight on the will of the commander: by the spark on his breast, by the light of his spirit, by the spark of purposes, the light of hope must be kindled afresh in others". poetic and literally what leadership demands. Excellence. Accuracy in execution. Discipline and consistency. Speed in execution. Commitment. Audacity being the fist requirement. A self sustaining drive and ... courage to follow the light where ever it may lead. 

In my field experience, a most common operational gap that must be addressed by effective leadership is managing commitment. As a famous saying goes " individual commitment to a group effort is what makes a team work", commitment is an intangible factor is operation that must be quantified. Easily through punctuality, attendance, quality of work, presence of mind, participation in activities. Truly, effective leaders are excellent judges of character. The concept of E3 has brought the battle on a hour by hour, day by day basis contrary to traditional management when evaluation for a months target is evaluated on a bi monthly or weekly basis. To motivate our people and extract no less than 100% commitment in their heart and mind is the essence of leadership.

Leadership: "the human element will remain decisive in battle..." Sun Tzu

Amidst the chaos of war remains the decisive component of humanity.  A single soldier can change the tides of war.  General Patton’s type of field management supported by a willing organization was a turning point in the Battle of the Bulge which was the turning point of War in Europe.  The Punic wars would have not been in history without the presence of its charismatic soldier-leader in the person of Hannibal who laid waste battalions of Roman Legions battle after battle in their own territory.  Amidst the growing sentiment of this generation for technology in the 21^st century,  the human factor in operations will be put to the test. Amidst streamlining and cost cutting of modern organization, there will always be business value disciplines that will call for the best in the human factor  as leadership and interpersonal skills. 

A Cebu Pacific would have only be possible by the leadership and strategy of John Gokongwei whose astute business skills paved the way to a succession process which resulted to a competent second generation Gokongwei.  Philippine Airlines and Fortune Tobacco would have only be possible with the shrewd business management approach of Lucio Tan; a most practical demonstration of Sun Tzu’s doctrines in the Art of War. 

Sir Jo is one illustration of a competent  Salesman-soldier.  Known for his accomplishments in the retail, real estate and distribution business.  The Yap family started their success from humble beginnings of a competent couple in the person of Sir Jo and Mam Carmen.  From stories shared by long time employees of the family the couple assumed a modest grocery space at Valencia in the early 80s. Years before that Sir Jo was an edible oil salesman covering Northmin in the 70s while Mam Carmen was a resourceful woman who worked her way up as a working student and business woman. Sir Jo once shared with your humble writer how he had designated Bodega 1, 2 and 3 the stores of his peers in Valencia.  The system was to improve his assortment he contracted his peers in the nearby streets who specializes in certain category which he was not yet carrying. The staff can contract this items from customers under arrangement of “pick up later” to give them ample time to pull out from Bodega 1, 2 and 3. 

 Machiavelli and Clausewitz spoke of a path  to sustainable  effective leadership. Machiavelli  has clearly differentiated the competence of acquiring power from the competence of sustaining it.  While discussing the concepts of fortune and skill, many princes and kings have acquired fortune by birth right but have failed to sustain their position because of lack of skill. However,  history is full of accounts as well of bold and sublime men who have reached the pinnacle of their chosen field from humble and heroic beginnings as the Patriarch of LCG Group of Companies Lu Chiam Giam and the Matriarch of the Gesalem Group of Companies. Having worked with the next generation sons and daughters, it’s a humbling and awakening moment to stand in the presence of the children and the companies they have built. Trully, a legacy to human limitless possibilities. 

Experience, to start from the bottom and to know the idiosyncrasies of your chosen industry or profession,  historical appreciation, to gain knowledge as to how decisions and its consequences were made in the past  and Intellectual capacity to persist amidst the success and failures of your chosen path; to realize these impostors and be quick in anticipating traps. A strength of mind to remember and keep faith  to your life’s purpose even in the darkest dungeons of captivity; to remain faithful in your cause however hopeless.  

Planning: “The victorious warrior win first before they go to war … “ Sun Tzu

A plan is prepared for the purpose of execution. Preparing a plan is one part of the equation and execution completes the essence of the plan. In preparing a plan, the aspect of execution is a major factor considered. Can it be executed by the manager or the organization it is intended for use? The Pareto Principle applies as well in Planning wherein 70% of the energy must be devoted to the Planning Process to ensure victory before actual operation. Thus when there is a need to materialize the 70%, the mental, psychological, emotional and mental aspect must be thoroughly exhausted.

The physical aspect of a plan is the resources and the physical person combined for  the operation. Vital in every operation is a grounded assessment of the level of performance a resource can produce wherein it is hardly wise to expect more sales from a motor van than an L300 Van; More so to expect more productivity on the first month of a rookie than a veteran salesman with a keen knowledge of the territory and high level of competence in tactical aspect of the industry.

In the venture of a bold and ambitious enterprise where we involve ourselves in the extraordinary, beyond the normal course of things and the regular eventuality of the natural function of life, we construct a plan with mental, psychological and emotional preparedness. In the absence of perfection, we can only aspire for excellence and appeal to the god inside each of us. Wherein in the absence of a perfect plan, we prepare the best course of action with contingencies and combine it with an emotional commitment supported with a psychological mindset that will sustain our rigors amidst the “frictions of war” – natural, human, operational setbacks. 

A psychological mindset characterized by maturity, positive disposition, results orientation and passion for excellence. Maturity in accepting the natural course of things that setbacks and problems is part of the game. A positive disposition to persist in finding solutions in once predicament; to be roused rather than discouraged by setbacks. Results orientation in remaining steadfast and faithful to your objective despite the rain and the challenge of a hard customer. Ad astra per aspera – to aspire for the stars despite adversities that comes your way. 

In the chaos of operation and the fogs of war, the need for a certain level of intellect is required. Such that despite the chaos, one must have a mental capacity for steadiness where decision making is a vital function of operation – a wrong decision can change the tides of war.  A classic case which is a perennial problem in Key Accounts Operation is the decision of a salesman to assign the “suggested order” process to a merchandiser.  An innocent decision which has a tremendous impacts on distribution operation. Another case would be a decision of salesman to prepare a Callsheet at the office versus standard of preparing it during call. Probably, a tendency of manana habit or others would refer to it as procrastination. Robert Sternberg in his material Sources of Failure refers to it as Failure to translates thoughts into action when a salesman knows a standardand yet does not act on it.  A behavior demonstrated by a Salesman in foregoing a Sales Admin requirement would result to a breakdown in the Account Management Business Process. This manifests Lack of Will and Lack of Initiative in surpassing the status quo.

There seem to be a need to short circuit the emotional framework of a human subject to manage behaviors prevailing in an individual not aligned to the values required in Operations or organization. Either self initiated or thru external means, the process would ensure the survival of the individual in the organization wherein thru time certain virtues where identified that contributes to the survival of the organization . External means are demonstrated in a PMA plebe recruitment and training program wherein the values of the Organization is oriented in the individual for the purpose of inculturation.  Though executed differently in a civilian organization, the principle is the same. Habits, values and behaviors will have to be unlearned and learned which will require a certain level of intellect for the individual to decide favorably to his survival. Thru patient coaching and counseling, the culture is revealed to the individual.

“When the going gets rough, on the tough ones gets going” the saying goes. Divine in every human being is our capacity for passion, for emotion. When everything has been exhausted in us – physically, mentally, psychologically – there remains the last human straw of emotion. An intense of emotion or passion has sustained great men in their areas of interest. Michaelangelo’s passion for the arts. Longfellow’s passion for poetry. Gokongwei’s passion for business. Patton’s Passion for victory in Europe. Hannibal’s passion for the conquest of Rome. Rizal’s Passion for his country. Henry Sy’s passion for retail. Sun Tzu and Clausewit’z passion for warfare. When all else has been exhausted, there remains the human emotion that over powers all else.

verses from clausewitz

To secure peace is to prepare for war.

Courage, above all things, is the first quality of a warrior.

Two qualities are indispensable: first, an intellect that, even in the darkest hour, retains some glimmerings of the inner light which leads to truth; and second, the courage to follow this faint light wherever it may lead.

A conqueror is always a lover of peace.

It is even better to act quickly and err than to hesitate until the time of action is past.

Although our intellect always longs for clarity and certainty, our nature often finds uncertainty fascinating.

Principles and rules are intended to provide a thinking man with a frame of reference.

The backbone of surprise is fusing speed with secrecy.

Many intelligence reports in war are contradictory; even more are false, and most are uncertain.

All action takes place, so to speak, in a kind of twilight, which like a fog or moonlight, often tends to make things seem grotesque and larger than they really are.

Everything in war is very simple. But the simplest thing is difficult.

If the leader is filled with high ambition and if he pursues his aims with audacity and strength of will, he will reach them in spite of all obstacles.

The more a general is accustomed to place heavy demands on his soldiers, the more he can depend on their response.

War is not an independent phenomenon, but the continuation of politics by different means.

War is not merely a political act but a real political instrument, a continuation of political intercourse, a carrying out of the same by other means.

War is the continuation of politics by other means.

I shall proceed from the simple to the complex. But in war more than in any other subject we must begin by looking at the nature of the whole; for here more than elsewhere the part and the whole must always be thought of together.

Never forget that no military leader has ever become great without audacity.

Politics is the womb in which war develops.

Pursue one great decisive aim with force and determination.

The political object is the goal, war is the means of reaching it, and the means can never be considered in isolation form their purposes.

War is not an exercise of the will directed at an inanimate matter.

War is regarded as nothing but the continuation of state policy with other means.

War is the domain of physical exertion and suffering.

War is the province of danger.