Looking for a business role model? Look no further than Genghis
Khan, says James Dunnigan, co-author of The Way of the Warrior:
Business Tactics and Techniques from History's Twelve Greatest
Generals (St. Martins Press), written with Daniel Masterson.
The brutalizing Mongol of the twelfth century has something to tell
you about running your business? That's right.
And there's more where that came from.
Dunnigan points out that most of what a military leader does is
executed off the battlefield, preparing for war or while immersed
in the details of peacetime administration. But when leaders do go
into battle, their ability to think clearly under the ultimate
stress can change history. Generalship, in short, requires a broad
range of skills not unique to war.
Directing large enterprises over vast areas in centuries past
required extraordinary management skills, especially given the
historic limitations of communications, logistics and
infrastructure. Many of the abilities, habits and traits of those
Dunnigan calls the "great captains" would have made them
top business leaders today, he argues. With a little extrapolation
to contemporary challenges, emulating those leaders could make you
a captain of industry.
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Dunnigan has written 18 books on military matters and lectures
on war and history to various institutions, from the National
Defense University in Washington, DC, to the CIA. He also knows
about taking lessons from the battlefield and applying them to
business. When he's not doing financial modeling for Wall
Street, Dunnigan is working hard on his Web site (www.jimdunnigan.
com) which serves to promote his war games and books.
Scott S. Smith: Most people aren't history buffs,
so the initial reaction to your book must be, "What could
Alexander the Great, who died in 323 B.C., possibly teach us about
modern business?"
James Dunnigan: Well, what you find is that every great
leader had a wide range of characteristics that made him
successful. Many of these traits and behaviors were common among
them, but each leader had his own style. Alexander's greatest
strength was that he pursued systematic solutions to problems while
always keeping the strategic vision in mind--paying attention to
details to a degree rarely seen before or since. He knew that if he
wanted to achieve his goal of displacing the Persians as masters of
the world, he first needed to offset their advantage in having a
massive fleet. He did this by taking over the ports so that the
Persian fleet couldn't dock for supplies. The lesson: With a
little bit of cleverness, even a dominant power can be
blindsided.
Smith: Alexander inspired fierce loyalty among his
soldiers. How?
Dunnigan: He mixed with the common soldiers and led them
from the front into key battles. They knew he was courageous, not
reckless. His risks were carefully calculated because he relied on
thorough preparation through intelligence-gathering and making sure
supplies were available. Perhaps his greatest skill was what is
called "situational awareness," or the Ace Factor, the
ability to size up situations promptly. These are valuable traits
all business leaders could use.
Smith: OK, I can see Alexander, but Genghis Khan? Our
image of the Mongols is of uncivilized nomads who were the human
equivalent of the bubonic plague.
Dunnigan: Yes, they were ruthless, but it was a
carrot-and-stick approach. They made it clear that it was either
surren-der or extermination. A good manager knows when to be tough,
even if it means attracting unwelcome attention from the Federal
Trade Commission or the Justice Department.
But the Mongols didn't conquer most of the known world just
by being savage; they were very well-organized and used remarkably
efficient political and logistical techniques. Any one of these,
updated to current circumstances, would make a company
stronger.
For example, Genghis Khan mixed warriors from different tribes
to weaken tribal loyalty and create warriors loyal to him. He
organized the army so staff leaders could move easily from one unit
to another. Speed was his most remarkable asset, the key to his
victories. And he was flexible, whether in battle tactics or in
adapting to new cultures.
Smith: You mention that Caesar's greatest strength
was that he was a master communicator before mass media came along.
Why was he effective?
Dunnigan: Caesar studied rhetoric at the best school of
the time. He considered just the right words to use, and if he felt
something might not be understood by his audience, he left it out.
Instead of letting someone else tell his story, he wrote it
himself. Plus he sponsored terrific games for the Roman people--you
could call him the first user of a multimedia campaign.
Communication is the key to getting anything done. Ambiguity in
what you say allows your enemies to speculate, as does saying
nothing for fear of making a misstep. You need to keep your people
informed, and when you send a message to an ally, always assume an
enemy will see it, since alliances change.
Smith: What was Charlemagne's most outstanding
characteristic from which today's managers can learn?
Dunnigan: Charlemagne had a knack for selecting smart
people in areas he was weak in, like a successful founder of a
company who manages to grow the firm to a huge size by fostering an
atmosphere that attracts the wide variety of skills needed. He also
created a government and legal bureaucracy that were responsive and
adapted to local cultures.
Smith: Let's look briefly at some of the other
warriors. Gustavus Adolphus was a tactical and technological
innovator. Everyone wants to be, of course, but how?
Dunnigan: He and Douglas MacArthur were able to figure
out what new ideas would work and what wouldn't. All the great
captains observed how others used new technology before they tried
it. It isn't innovative to be the first to use a new
technology; it's innovative to be the first to make the
technology do something really useful.
Smith: You mention that Frederick the Great paid twice
what other countries paid to get the best soldiers. It's a
great idea, but small companies usually can't pay as much as
large companies. What are other ways great leaders attracted and
kept top people?
Dunnigan: Military leaders usually offered their soldiers
a piece of the conquered territory, and today many small companies
compensate with equity. Once you have the best people, you keep
them by handing out medals and promoting them as fast as possible.
If you treat people well and offer them unique opportunities to
grow and develop, one star employee can outperform several workers
combined.
Smith: Like a small business, Frederick's Prussia
was surrounded by many large and hostile countries, but it thrived.
What was his secret?
Dunnigan: He was better organized and moved faster than
his foes. He also learned from his mistakes. Likewise, there is an
opening for small companies if they examine themselves more
honestly than corporations, which tend to get arrogant. Frederick
was also persistent, and you can overcome a competitive advantage
by that simple principle.
Smith: You say the three things that set Ulysses S.
Grant apart from other generals were his optimism, daring and his
calmness when facing stress and risk.
Dunnigan: Grant wouldn't dwell on the negatives of a
situation; he was solution-oriented. Too many other generals would
prepare and prepare but were too afraid of the risks to do
anything. Grant knew when the time for planning was done, and he
took daring risks when he thought they were the best choices, such
as the attack on Vicksburg and sending Sherman on the march into
the South even though that cut him off from his supply lines.
Once, when Grant was writing an order, an artillery shell
exploded overhead. He barely looked up; his calmness allowed him to
remain in control of situations when other generals would have
panicked.
Smith: Moving into this century, you cite Douglas
MacArthur as one of the first to effectively use mass media because
he was a military press liaison, yet he also got lots of negative
ink. What are the lessons here?
Dunnigan: He knew what kind of story the media were
looking for, and he gave them what they wanted. Unfortunately, some
felt manipulated and this backfired.
Norman Schwarzkopf showed us how to do it right by giving
briefings that were direct, simple, truthful and humorous. If you
try to be clever and fool the press or the public, you'll get
caught. Knowing the pitfalls and opportunities in the psychology of
the press can make a big difference in how investors and customers
perceive you and how successful you are in your public relations
efforts.
Smith: You say George Patton's strength lay in his
desire to know all he could about leading an army.
Dunnigan: There has probably never been a military leader
who spent as much time studying his craft. Patton had a huge
library of books on warfare, which he carefully studied. He also
spent time talking to Allied officers about tactics. He visited
tank factories to understand everything about tanks and got his
private pilot's license when he realized aircraft were going to
play an important role after World War I. Patton attributed part of
his success to his knowledge of the French road system.
Entrepreneurs should realize that if they do their homework,
they'll leverage their assets.
Smith: What's the common lesson to be learned from
all the great captains?
Dunnigan: They all had the ability to recognize their
skills and then had the energy and persistence to use them. Many
potential great captains held back out of fear or uncertainty, and
thus never achieved greatness.
Scott S. Smith writes about business issues for a variety of
publications, including Investor's Business Daily.
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