“The Art of War for Small Business: Defeat the Competition and Dominate the Market with the Masterful Strategies of Sun Tsu” by Becky Sheetz-Runkle (AMACOM, $14.95).
Many small businesses often fail because they play by the rules set up by industry Goliaths. When taking their cues from large competitors, they create false assumptions about their target market — and what they can and can’t do. Others fail because they “cling to a flawed concept because it’s their baby, even after data and personal experience show them it’s not viable.”
Then there are those who fail because they don’t identify the strategic priorities on which to focus their resources (human and financial). “If one gains victories in battle and is successful in attacks, but does not exploit those achievements, it is disastrous.”
As an example, Sheetz-Runkle cites measuring B2B trade show results by the number of business cards collected, rather than the sales that follow. The salespeople start calling without doing the research necessary to qualify and prioritize leads. That process should start at the booth with probing questions that delve into the prospects’ interest.
She also points out that success can lead to a loss of focus. Airwalk, an athletic shoe manufacturer, had a deep niche with skateboarders. When its research saw an opportunity to expand to the mass market for athletic footwear, it forgot a Sun Tsu principle: “If we know the market is open to attack, but are unaware that our own men are not in a condition to attack, we have gone only halfway towards victory.” Airwalk’s let’s-get-big idea led to: 1. Production and distribution problems; and 2. The loss of customers in its skateboarder niche.
Key takeaways: You can never grow your business by holding your ground. Make informed decisions, and move quickly and with commitment to execution.
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“Challenge the Ordinary: Why Revolutionary Companies Abandon Conventional Mindsets, Question Long-Held Assumptions and Kill Sacred Cows” by Linda D. Henman (Career Press, $16.99).
Culture anchors strategy and should create an environment where people own their jobs. It provides the foundation execution — or lack thereof. Resting on laurels and drinking the Kool-Aid of convergent thinking always leads to lost ground. To propel growth, a corporate culture must embrace change, learning and shared knowledge.
Replace “we’ve always done it that way” by answering these questions: “If you weren’t already doing that (whatever that is) would you decide to do it now?” “If so, how?” “If not, why not?” It’s a constant exercise in thinking better and bigger that changes habits, rules, perspectives and processes.
Answering these tough questions also brings the team to the forefront. By giving teammates results-driven goals, they have a responsibility/accountability platform to shape what could be. This creates job ownership and interactions, which lead to learning and knowledge-sharing.
Part of the learning and sharing involves taking risks and making mistakes. Henman states: “If mistakes aren’t made, the company isn’t pushing hard enough.” By understanding the causes of mistakes and successes, companies can better manage the risks associated with change. These lessons learned help create new best practices and continuous improvement.
Henman considers indecision “The Culture Killer.” In the search for the perfect decision, paralysis analysis and cutting through red tape only waste time. She believes action trumps theory because all elements of decisions aren’t within the entire control of the decision maker.
The bottom line: Instead of likening a business to a hard-to-turn aircraft carrier, see it as a harbor filled with speedboats focused on innovation, reinvention and reengineering. Senior management takes on the duties of harbormaster.
Jim Pawlak is a nationally syndicated book reviewer.
