Words of Wisdom A 2500-year-old Chinese philosophy holds new meaning for modern-day entrepreneurs.

Paul D'Souza had been trying to contact two prospectiveclients for more than a week and had all but given up. Then one dayover lunch, he felt a sudden urge to try again. "I got thephone numbers, one in Milpitas, California, and the other in NewYork City, and called these people. They were both in, and readyand willing to talk," says the vice president and partner ofHealth Innovations, a 15-person health-care consulting firm inSanta Cruz, California.

What may sound like a lucky break is much more to D'Souza,who is a longtime student of the Chinese philosophical systemcalled Taoism. Says D'Souza, "What I call theTao--intuition or what have you--told me to call thesepeople."

The Tao (pronounced "dow") has been talking to a lotof businesspeople, even encouraging them to write books on applyingits principles to management, negotiation, leadership, organizationand even sales. As part of what seems like a renaissance ofspiritual concerns about work, Taoism stands out as one of theoldest and most widely applied.

Back to the Beginning

The Chinese philosopher Laotzu is credited with writing theTao-te Ching more than 2,500 years ago. This book, whose titletranslates into "Classic of the Way," contains 81 poemsoutlining a philosophy that stresses uniting with and yielding tothe natural flow of the universe. Although that may seem anunpromising source of business wisdom, it seems even more soconsidering the fact that the Tao or "way" cannot bedescribed in word or thought. But the Tao has spawned, in additionto many business books, a number of quiet but devotedbusinesspeople who find its philosophy not only comprehensible butapplicable every day.

"The whole concept of Tao is to work with the laws ofnature," says D'Souza. "To me, the Tao is acontinuous sensitivity to the laws of nature flowing through mybusiness activity."

The Tao is often cited as a source of wisdom for leaders. DianeDreher, chairman of the English Department at Santa ClaraUniversity in Santa Clara, California, and author of The Tao ofPersonal Leadership (HarperBusiness), points to one of thebest-known Tao verses as an example of its relevance toleadership:

"With the best of leaders,
When the work is done,
The project completed,
The people all say,
`We did it ourselves.' "

This verse, like many in the Tao-te Ching, is contradictory, orat least difficult to grasp. How can you lead without appearing to?Dreher says, however, that Tao leadership is nearly identical tothe contemporary discipline of teamwork. "The Taoleader," says Dreher, "is someone who can remaincentered, be mindful, assess a situation, bring people together,build consensus and discover solutions by drawing on the talents ofeveryone involved."

Exactly how to accomplish this is not always clear. The Tao-teChing seems at times purposely vague or ambivalent. While many ofits verses may ring true, it's not always easy to know what todo with them. Other Taoist verses are more straightforward."The longest journey/begins with a thousand steps" isclearly an admonition to break tasks into manageable steps, thentackle them one by one, Dreher says.

Dreher's book offers a number of "Tao Exercises"designed to help put the ideas into action. On dealing withfailure, she suggests people ask themselves whether they arehaunted by some mistake from the past. Face it and ask what youhave learned from it, she advises. Explore what you might have donedifferently, and decide what you'll do next time. Then, shesays, move on.

While much of the Tao seems applicable to your personal life,it's also invoked as an aid to strategic planning in businesslife as well. "Every once in a while, you ought to get off thetreadmill and ask yourself some basic questions," says StanleyHerman, a management consultant in Escondido, California, andauthor of The Tao at Work: On Leading and Following (Jossey-Bass)."Is this the life you want to lead? Is this the way you wantto operate in your business? The Tao helps you think about thosethings."

The Tao may also be useful in conversing with other people inbusiness negotiations, says Joel Edelman, a Santa Monica,California, attorney and author of The Tao of Negotiation: How YouCan Prevent, Resolve and Transcend Conflict in Work and EverydayLife (HarperBusiness.) A negotiator using Tao principles, saysEdelman, tries to be in tune with nature, to give and take thingsimpersonally and yet to take responsibility for his or her ownconduct. "The first intention is to be objective," hesays. "To be cool and calm, not to be without feelings but tostand back and get outside yourself."

Being in tune with natural cycles such as the change of seasonsis a core Tao teaching. Herman says this Taoist understanding ofcycles is highly useful in business. For example, he points to theneed for an entrepreneur to recognize when it's time to stoprunning a business alone and bring in professional management."The Tao helps you realize that there are stages and to bealert [to them], not wait until your business isn't goingwell," says Herman.

The Taoist approach is especially important during rapid change,says Dreher. "The Tao shows us a vision of life asdynamic," she says. "We don't accept the status quo,and we learn to deal with change." This ability to cope withchange makes Taoism a popular philosophy in the fast-moving firmsof the Silicon Valley, she says.

The Tao may even teach you to be a better competitor. "Oneof the things it tells you is not to make unnecessaryenemies," says Herman. "If you're in contests, be inthem to win; however, be a gracious winner. Don't [draw]unnecessary blood. That's the seed of a vendetta."

Knowing the Limits

Few, if any, companies describe themselves as Taoistorganizations. Even consultants, such as Herman, who espouse Taoistconcepts don't label themselves as such when advising businessclients. Some say that's because hard-nosed businesspeoplewon't accept a seemingly soft Eastern mysticism as a rationalefor management. Others say that the Tao is simply best applied in asubtle manner. "It's something to be used, not necessarilytalked about," says Edelman.

Nobody recommends, say, writing Taoist objectives into yourmission statement. "Communicate it by example," advisesHerman. "If people pick up on it, good. If they don't, letit go, do something else and try it again later on."

It's a Taoist truism that any attempts to define the Tao aredoomed, which still hasn't kept many scribes from ancient tomodern times from trying. D'Souza describes Taoism's rolein business as "a hypersensitivity to nonverbal, nontangiblecues and activity." Employing Taoist principles helpsentrepreneurs make better, more appropriate decisions, he says.And, perhaps equally important, a Taoist entrepreneur learns to be,if not fatalistic, at least able to transcend the inevitablereversals and disappointments of business.

"When one is sensitive to the Tao, one sees beyondwhat's at hand, one senses a higher logic," D'Souzasays. "And one is armed with a sense of confidence thateverything works out just the way it's [supposed to]."

Mark Henricks is an Austin, Texas, writer specializing inbusiness topics.

Contact Sources

Joel Edelman, (310) 392-4830, fax: (310) 392-6331

Health Innovations, (408) 457-3773, http://www.health-innovations.com

Herman Associates Inc., (760) 480-1628, SMHerman@aol.com