Ancient Chinese teachings on strategic planning

By Bud Gayhart

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When I was working towards my MBA, "The Art of War" by Sun Tzu was required reading. This document, originally written in Chinese more than 2,500 years ago, provides insight on the tactics of war from a philosopher's perspective. A key quote from the text states, "If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle."

So what do Sun Tzu's teachings have to do with strategic planning for your business today? The insight offered by Sun Tzu is as relevant today as it was 2,500 years ago. If your business is to succeed, you need to know everything about your business and you need to know the competition - they know you! To develop an effective strategic plan you need to research the competition, recognize the trends in your industry, understand the importance/application of technology and have an effective team of advisors to help navigate the choppy waters of 2007.

Your strategic plan should identify major competitors and indicate their strengths and weaknesses. This is where your advisors can provide assistance. Ask them to help you evaluate your competition; ask your employees for input as well. Do you have a sales team? They should be able to provide details about what your competition does well and what weak areas leave them vulnerable.

While you're going through this exercise, list your business's strengths and weaknesses. Where does your company shine and where is it vulnerable? What steps can you take to minimize your weaknesses or convert them to strengths? How long will it take? What resources will you need in terms of people, money, equipment, etc.? Be specific.

Next list the opportunities and threats your business is facing. How can you minimize the threats (or develop contingency plans to deal with them), and how can you take advantage of opportunities? Sometimes opportunity only knocks once.

Develop a marketing plan to help you achieve your goals. What aspects of your business will you emphasize? What media will you use to reach your customers? How much money will you allocate to your advertising and promotions budget? How do your customers perceive your company, i.e., what is your public image? Where do you need to make improvements? Is your Web site up to date?

Does your Web site complement your advertising activities?

Keep in mind that your competition is going through this same exercise. Get a copy of "The Art of War" and read it. Then, put your plan into action and mark your calendar to remind you to conduct strategic planning again next year.


Bud Gayhart is interim director of the Center for Innovation and Business Development at UW-Whitewater.

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