warrior management using world conquering techniques to achieve business dominance 2008 virginia...
TRANSCRIPT
Warrior ManagementUsing World Conquering Techniques
to Achieve Business Dominance
2008 Virginia Engineers ConferenceSeptember 18, 2008
Genghis Khan – Business Genius?
Recognized as one of the most successful world conquerors (1162-1227)Instituted practices, rules, and operational philosophies that are relevant today for business successHow many of these warrior management principles do you actively use?What would be the impact to your business if you adopted the “way of the warrior”?
Presentation Topics
The Warrior Management PrinciplesThe rationale of using each principle in the context of your businessThe benefits/downsides of implementationAre you an effective conqueror?
One Objective at a Time
“Throughout his life Genghis Khan eliminated his opponents one by one. He never neglected to
bear in mind the ever-changing balance of power with which he was regularly threatened.”
“Genghis Khan, Conqueror of the World”Leo De Hartog
One Objective at a Time
Strategic Plans focus on completing a myriad of objectives – most that never get accomplished
One Objective at a Time
A 70% sales win rate is considered “exceptional”
One Objective at a Time
Customers are captured but never fully leveraged – most businesses only realize 6% of their potential revenue
Time
$$$
Revenue Potential
Capacity
Actual Revenue
One Objective at a Time
The majority of mergers and acquisitions fail to achieve any level of anticipated success
One Objective at a Time
Resolution:Strategic plans should have no more than 3 objectives for any stated periodBusiness development resources should only be consumed for opportunities that will yield a 100% win rateCustomers should be “put on” a product/services continuum that seeks a destination – allows for a maximization of revenueAcquisitions occur for a single purpose – what is it?
Keep the Culture Strong
“He took the standpoint that, if he wanted to remain in power, it
was necessary to have available a central
position on which his subordinates could fall back and from which
radiated the essential unifying strength.”
“Genghis Khan, Conqueror of the World”
Leo De Hartog
Keep the Culture Strong
Tele-working, independent contractors, and multiple office locations have diluted corporate culture
Keep the Culture StrongNo employee or employer allegiance – no sense of
belonging or recognition of a “larger” purpose
Keep the Culture Strong
No “safe” spot for employees
Keep the Culture Strong
It is all about short-term productivity
Keep the Culture Strong
ResolutionDefine your business cultureEliminate the use of independent contractors – except for pure support functionsInsist on face-to-face interaction with employees – providing them with an inviting environmentWhat is the “value proposition” for your employees? Beyond a paycheck, why should they work for you?
Protect the Core
“Other measures to which he gave
particular attention were the protection
of subsidiaries following a military unit with food and
equipment, and the training of horses.”
“Genghis Khan, Conqueror of the World”
Leo De Hartog
Protect the Core
Employee training, paying health care insurance premiums, and childcare reimbursement have been taken away in response to short-term profitable objectives
Protect the Core
Cuts in marketing, research and development and competitive research limit effectiveness of sales staff
Protect the Core
Organization operates at a competitive disadvantage
Protect the Core
ResolutionProtect the support functions that allow employees to focus on business productivityFully equip your “teams” with effective information, up-to-date tools and supporting documentationOperate at a competitive plateau – not trying to make “do” with existing resources
Infinite Patience
“Moreover, he possessed the patience to bide his
time”
“Genghis Khan, Conqueror of the World”
Leo De Hartog
Infinite Patience
The dot.com era: a case study on a lack of patience
Infinite Patience
The fallacy of the publicly traded markets that require businesses achieve growth every financial quarter
Infinite Patience
While infinite patience is a business virtue, the inability to act when the conditions present themselves also results in negative consequences
Research
Release
RewardReinvest
ReviewThe Business Cycle
Infinite Patience
Share the “Booty”
“He was discovering what other leaders had found out before him, and others not yet born would learn – that the ready acceptance of the ruler by the ruled depends upon the degree of happiness which only an increasing
scale of rewards can bring.”
“Genghis Khan- The Rise, Authority and Decline of Mongol Power”
Peter Brent
Share the “Booty”
A caste system exists in American business where CEOs take a predominant share of corporate profits for compensation and limit the distribution for rank and file.
Share the “Booty”
Not sharing the “booty” has a negative impact on employee retention and a desire to increase work/life balance
Share the “Booty”
Long-term corporate growth is interrupted when CEOs (and other senior leaders) take an inordinate amount of profit for themselves.
Resolution:Create compensation structures that share greater proportions of the spoilsDon’t limit upside compensationLet’s not kid ourselves – people work for the money
Share the “Booty”
Adapt to the Environment
“Chingis created nothing new. He only understood with true
remarkable insight the meaning of the changes taking place among his
people, speeded up those changes through his
impetuous energy and genius, and gave them final form.”
“Genghis Khan”Ralph Fox
Adapt to the Environment
Businesses follow staid and predictable strategies and tactics – regardless of the situation.
Adapt to the Environment
Try to re-use previous success tactics – silver bullet theory
Adapt to the Environment
There are no such thing as “tried and true” business strategies
Adapt to the Environment
Technology
OrganizationOperations
Environment
Strategy
Single Language
“Even before the time of Genghis Khan the Mongol
tribes possessed a common law, which was unwritten
and showed some variation among the existing tribes.
As the overlordship of Genghis Khan extended, the
need arose for laws applying to the whole
empire and with it the need for a binding legal code.”
“Genghis Khan, Conqueror of the World”Leo De Hartog
Single Language
Strategy directives from the Board are mangled down to mid and lower level employees
Single Language
People “hear” things based on their predisposition
Single Language
CRM systems have a problem with definitions of customers – again causing problems with firms with dispersed sales forces
Single Language
Resolution:Develop templates for certain sales and operational activitiesEliminate “individual expression” at the operational level – recognize its value during strategic discussionsCorrect mis-interpretations immediatelyDon’t foster renegade practices – even if appear effective
Final Thoughts
“Genghis Khan had set out to dominate the world; for all his understanding, even his wisdom, he never realized that it is not by warfare that one dominates vast populations, nor even by firmly benevolent administration – it is by ideas, by beliefs, by the tangibles of human communication.”
“Genghis Khan – The Rise, Authority and Decline of Mongol Power”
Peter Brent
Final Thoughts
“In all his career one can feel for him the same mingled disgust and admiration one feels for the founders of great capitalist enterprises of the last century, men who also stopped at nothing, ruined their enemies gleefully, men who organized great empires also, empires of steel and power and publicly always preached caution, moderation and sobriety.”
“Genghis Khan”Ralph Fox
