How lessons from Sun Tzu--Chinese general, philosopher and writer circa 500BC--on ancient wartime strategy can teach us about modern competitive business.

1. Sun Tzu
• Chinese military strategist, general.
• ~500BCE
• Philosopher, writer.
• The Art of War
Phoenix @prestonism

2. The Art of War
• Ancient Chinese stuff.
• Profound Eastern insight
on general competitive
strategy.
The Art of War is one of the oldest books still of tremendous practical use.
Phoenix @prestonism

3. Phoenix @prestonism

4. One Option: Victory
When you have no escape, you will choose to...
• Fight courageously.
• Unite like never before.
Phoenix @prestonism

5. One Option: Victory
In all levels of policy and culture...
• Challenge to build camaraderie.
• Perform or go home.
Phoenix @prestonism

6. One Option: Victory
Phoenix @prestonism

7. Predicting Outcome
• Morals.
• Commanders.
• Environment.
• Execution.
• Resources.
• Training.
• Discipline.
Phoenix @prestonism

8. Predicting Outcome
Know...
• Yourself.
(McDonalds)
• Yourself vs. competitors.
(McDonalds vs. Burger King)
• Yourself vs. the rest.
(McDonalds vs. Ford, Kodak etc.)
Phoenix @prestonism

9. Predicting Outcome
Competitive gains come by learning
from seemingly unrelated things.
Phoenix @prestonism

10. Survival To Domination
• 10:1 - Surround.
• 5:1 - Attack.
• 2:1 - Engage.
• 1:1 - Divide.
• <1:1 - Defend.
Phoenix @prestonism

11. Survival To Domination
Conglomerates dominate aggressively.
Phoenix @prestonism

12. Survival To Domination
Startups divide and conquer.
Phoenix @prestonism

13. Win Without Fighting
• Subdue
and control the enemy army.
• Capture
cities without destruction.
• Overthrow
power w/out long operations.
“The ultimate victory is to win without conflict.” (Michaelson, 2001)
Phoenix @prestonism

14. Win Without Fighting
• Avoid
unproductive confrontation.
• Acquire
assets without hurting them.
• Build
value w/out cost.
“Speak softly and carry a big stick...” -Teddy Roosevelt
Phoenix @prestonism

15. Win Without Fighting
"Thus, a victorious army wins its victories before seeking battle; an army
destined to defeat fights in the hopes of winning." -Samuel B. Griffith
Phoenix @prestonism

16. Invincibility
• Excellence.
• Identify opportunities
to exploit enemy
vulnerabilities.
• Execute.
“He who knows when to fight and when not to fight will win.” (Michaelson, 2001)
Phoenix @prestonism

17. Victory Precedes Battle
Phoenix @prestonism

18. Victory Precedes Battle
• Build.
• Identify.
• Mitigate.
• Success or acceptable failure is yours.
Phoenix @prestonism

19. Victory Precedes Battle
Phoenix @prestonism

20. Recommendations
• Michaelson, Gerald A. (2001).
The Art of War for Managers. Adams Media Corporation.
• Giles, Lionel. (2005)
The Art of War: Special Edition. El Paso Norte Press.
• Not fabulous free version:
http://www.gutenberg.org/etext/132
Creative Commons-licensed photos provided by the following people on Flickr: Sukanto Debnath (lil monks), el patojo (Torre de Dados), shaymus022 (Lightswitch versus iPodVideo),
fPat (g't!), MatthewBradley (untitled), It'sGreg (A Very Commonplace Gesture), Crawfishpie (Walmart Financial Services), Ben Northern (The Punisher), Dunechaser (Superman), Aaron
Michael Brown (The neverending Risk game in AT), libraryman (This Alabamiana Library Is A Beaut), Keith Allison (Nolan Reimold Walk-Off Homer), nukeit1 (1st Platoon, 2nd Squad)
Phoenix @prestonism