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Pyrrhic Victories
Talk about winning battles and losing wars, in 281 BC, the king of Epirus, Greece, defeated Roman armies in two important battles, but lost so many soldiers in the process that he also lost the war. The king's name was Pyrrhus, thus the concept of "Pyrrhic Victories," which refers to costly battles that gain nothing.
The wisdom of fighting the right battles
- A lesson learned by great leaders is that avoiding battles can lead to success in war. George Washington lost several battles at the beginning of our Revolutionary War; after that, he avoided engaging in battles where the odds were against winning. The strategy paid off; with the help of French reinforcements, he defeated Lord Cornwallis at the battle of Yorktown and won the war.
- At the time, Washington faced a far greater challenge than businesses do in our current economic and business recession. He had no money, no resources, raw recruits, and faced the best European army of the time. Anyone else might have given up; in fact, Benedict Arnold did. But, by thinking strategically and staying focused on his end purpose, he achieved what no one else might have.
In both war and business, there is a time for tactics and a time for strategy. Strategy requires long term thinking and cool headed discipline, whereas tactics tend to focus on short term issues.
Buzzards failing to look up? Today, we hear many "business experts" advocating tactical rather than strategic thinking. Their argument is that it is impossible to predict the future because so many things are changing. Guess what! The future has always been unpredictable, and things are always changing.
That is why Peter Drucker's famous line, "The best way to predict the future is to create it," is still so valid. Change is faster than ever, and technology is challenging tradition, improving productivity, generating new products, and both creating and eliminating jobs.
Today we are exposed to an overwhelming abundance of "Chicken Littles" in the media and the business world, especially the financial industries. They can only see darkness, and even refuse to look for light at the end of the tunnel.
Essentially, they are bogged down in their assumption that everything is so bad that there is nothing we can do about it. They tend to suffer from "decision inertia," a fear that keeps them from doing anything to resolve the problem.
They create their own limitations. Put a buzzard in a cage that is 8 by 6 feet but open at the top and it still won't get out. Buzzards are used to a run of 10 to 12 feet to take off; without space to run, they won't even try to fly. The Chicken Littles of the media and industry tend to be equally stuck when they, too, fail to look up.
On the other hand, today's "Experts" fail to realize that although things are changing all the time, the basics tend to remain the same. The sun still comes up every morning, we still eat three times a day, sleep at night, wear clothes, get sick, get better, meet people, have friends, have loved ones, clean ourselves and our homes (hopefully), and need to work. Granted, in bad times some of these basics may be altered to some degree but, as we often say, "Life goes on."
Tactics Surviving tough times takes mental discipline, self-control, patience, and deliberate actions. Knee-jerk panicking generally leads to undesirable consequences. On the other hand, wisdom is about anticipating the consequences of our decisions and actions.
A clear example of tactical thinking has been the wild rash of discounts over the last year. When the market is slow and competition for fewer customers is fierce, a few discounts may be wise just to keep customers from switching to other suppliers. But the effect of uncontrolled proliferation of discounts on profits can be disastrous.
What do you think when you see something discounted 70 percent?
In addition to reducing gross profits to unprofitable levels, discounting can affect the brand by cheapening it, and a cheapened brand is almost impossible to rebuild.
Strategy Strategic planning requires defining a mission, setting goals that fit that mission, and developing strategies to make them happen. Strategies are long-term action plans designed to achieve specific goals.
Strategic thinking focuses on:
Strategic business leaders think ahead instead of becoming so immersed in current conflicts that may seem urgent, but end up being unimportant in the long run.
Recommendations for thinking strategically in tough times:
Follow Henry David Thoreau's advice: "If you advance confidently in the direction of your dreams and endeavor to live the life that you have imagined, you will meet with a success unexpected in common hours."
It is hard to be objective when pressured by the alligators of tough times. Yet, sometimes we do our best thinking when we are under pressure. It does help, however, to get a more objective perspective. If you need help in developing a truly objective perspective of your business's current situation and its future potential, just call me at (630) 420 2605, or e-mail me at mykwyn@aol.com; I will be glad to be of help.
Michael Wynne
The Real World Business Expert
He has walked the talks you will hear.
(630) 420-2650
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