Business & the Principles of War

The British armed forces (and thus the Indian armed forces) have 10 Principles of War. I learned it by the acronym COSSAC FAME. These are equally applicable to business strategy & tactics.

1. Concentration. Determine the chinks in the competitions offerings, needs that are not being addressed, segments that are not being served, ... Then concentrate on exploiting these weaknesses
2. Offensive Action. Be proactive. Do not wait for the customer to walk in the door. Go out and find her. Do not wait for the competition to obsolete your product. Obsolete it yourself. Actively seek innovation. Follow the golden rule, "Do onto others as they would do onto you; only do it first." When on the defensive, counter-attack to slow down the competition.
3. Security. Temper offensive action with measures to safeguard against exposing your own vulnerability.
4. Surprise. Innovate. Then execute with speed. Slow execution will alert the competition.
5. Administration. Meeting regulatory & legal requirements. Managing cash flows. Safe and hygienic working conditions ... Things that will not give you a competitive edge but must be done if you are to stay in the game. What Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution calls context
6. Co-operation. Between different function heads. They should not be working at cross purposes, or playing political games.
7. Flexibility. No plan survives contact with the enemy as expounded by von Moltke. Gen Eisenhower said, "Plans are worthless. Planning is essential." The actual scenario will not be quite the same as the one planned for. Business environments change, assumption turn out to be not quite true. If business plans are inflexible they will break.
8. Aim, Selection & Maintenance. There is a hierarchy of aims. At the very top is the Mission of the Business. This must be selected with due thought and then zealously maintained.
9. Morale. It is adversity that tests morale. What builds morale is not food courts, or week-end beer bashes, or company parties. Management must be frank and truthful on all company matters, must share the pain, must train people for tasks they are to handle and not set them up for failure. The CEO must take the lead. It calls for relentless and truthful communication through word and deed, and celebration of even small, individual, or team wins. Morale indicates the quality of leadership.
10. Economy of Effort. Get the maximum bang-for-buck. Be frugal - but effective.