Posts Tagged ‘defense’

  • Have you been passive in the face of challenges and threats from competitors? If yes, why do you think this is?
  • How could you become more aggressive in the face of competitors trying to take away your business?çWhat means are available to you to counterattack your competitors’ incursions?
  • What opportunities are there for you to occupy a position pre-emptively in order to limit incursions by competitors before they occur?
  • Could you conduct a spoiling attack on a competitor that is fixing to enter your market or outflank you by offering improved products or services?

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Every once in a while we’re faced with highly emotional reactions to risky situations. The “lone wolf” attacks perpetrated in St-Jean-sur-Richelieu and Ottawa on Canadian state institutions (i.e., soldiers and Parliament) last week fall into this category, as does the Ebola outbreak in western Africa. Yet, if you watch the news and read newspapers, you’d think we’re under attack!

Don’t get me wrong; I’m not saying that the Ebola crisis in Africa isn’t dangerous and a major catastrophe, or that the terrorist threat isn’t real. But we have to keep things in perspective.

So far, a few people have contracted Ebola in North America and Europe. They have all been people who have been in prolonged bodily contact with infected victims in Africa, or who have treated these people. From what I gather, the non-Africans are also all health care workers. A few have survived, although we don’t know yet what, if any long-term consequences there will be on their health.

The US Centers for Disease Control (CDC) deem that a quarantine system is not needed, based on scientific opinion. Meanwhile, some states (e.g. New Jersey) have chosen to impose their own quarantine rules, overriding the considered evaluation of the CDC. The CDC is basing its recommendations on a scientific, rational assessment. I’m not sure the states and various schools that have reacted emotionally are doing the same thing. The science could be wrong, but at least it’s based on rational assessment of the risks and threat, not just emotional reaction. It’s therefore subject to updating as more empirical evidence is gathered and as the theoretical understanding of the disease progresses. Moreover, where does the epidemiological know how reside, in the CDC, or a handful of much smaller and less capable state and municipal agencies?

Whenever we face a potential health crisis, such as a pandemic or epidemic, it’s normal to assess the threats and risks and take preventive or compensatory action. On the other hand, we have to keep the threat in perspective. Every year, thousands of parents refuse to have their children inoculated against common diseases. Whether we’re talking about measles or smallpox, the risks of infection and mortality vary. The common element is that this stupid attitude toward proven measures for preventing and containing these diseases has enabled a periodic resurgence of measles, pertussis (whooping cough), etc. And, we’ve been lucky that smallpox has not come back in strength.

Here’s the thing, though: measles and pertussis can actually kill people, especially the weakest, and that usually means children. So, on the one hand we have an overreaction to Ebola by state and municipal authorities in the US (and no doubt other countries), while some people are too fearful or pigheaded to take active measures such as allowing vaccinations for their children. Not only does this put their own children at risk, but it reduces the overall “herd immunity” of a population. This is required to protect those for whom vaccination doesn’t work no matter what. If you doubt this, I invite you to watch a recent episode of PBS’s Nova science documentary on vaccination panics in the US. You can watch it online.

There is also a lack of perspective on the terrorism threat, and we need a balanced and reasoned approach to the risks of what are known as “lone wolf” terrorists. This isn’t a new threat, or proper to Islamic extremism. There have always been crackpots with various motivations, be they environmentalists ready to spike trees in order to injure forestry workers or Jewish ultra-orthodox extremists willing to blow themselves up in Jerusalem. We also need to keep in mind that terrorism and urban guerrilla are the strategy of the weak. As I wrote in my book, Brilliant Manoeuvres, it “stems from a realization the force one is commanding is incapable of highly coordinated, and highly damaging offensive action.” Security consultancy and analysis firm STRATFOR points out that the “lone wolf” approach to Jihadism is actually mostly a failure for extremist Muslims intending on creating havoc in the West. It comes from a realization that they are unable to launch destructive and coordinated attacks without exposing themselves to extreme risks of mission failure.

When a crisis hits, it’s time to think, even if hastily, not to panic and run around responding to popular appeals to “do something, anything.” We often have to weigh a range of unsavoury options in order to select and implement a “least bad” solution. The danger with overreacting to terrorism is that we impose so many restrictions on civil liberties and access to democratic institutions that the terrorists get a political and social response that is out of all proportion to the actual risks.

When we’re talking about health risks, the danger is that we overreact while we ignore or tolerate much more damning behaviours in our own back yard. Reasonable measures to prevent and mitigate contagion from Africa are one thing. But meanwhile, there are incipient outbreaks of easily preventable and controllable diseases right here, and they don’t come from Africa.

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

  • Do you offer products and services that are mutually supporting, or are they disjointed and uncoordinated? Are some of them in competition?
  • Could you create an ecosystem that would generate customer loyalty and reduce the probability of a competitor luring away your customers with similar products and services?
  • Do your customers have needs that are currently unfulfilled and that you could meet by creating new offerings?
  • Do you see a competitor that is feeding off of your success with a complementary or synergistic offering? Could you acquire that competitor or its product, or otherwise develop your own offering to meet that need?

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

  • Are you able to detect threats from any direction? These could be suppliers moving downstream, customers or distributors moving upstream, new technologies or products as substitutes, or completely new competitors who are entering your sector.
  • What competitive threat(s) could completely undermine your current position?
  • What can you do to counter them?
  • What countermoves can you make to occupy a position or to deny it to a competitor before he moves?
  • Do you have a reserve to counter unexpected threats or moves by competitors?
  • Could you reassign resources to do so?
  • Could you buy time by occupying some of these alternative positions?

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

  • Are there alternative positions in your chosen product market segments?
  • Could you create products or services that would allow you to occupy them provisionally or for a longer term?
  • What is the full range of vertical positions in terms of product or service quality or perceived value?
  • Are there product market segments adjacent to or otherwise related to your key position(s) that are likely to attract competitors onto your vital ground?
  • Could you occupy some or all of this ground?
  • Are there positions nearby that you should or could deny to competitors simply so they don’t get a toehold on your vital ground? What key terrain must you occupy to prevent them from encroaching on your position(s)?
  • Is there a position you must occupy provisionally to buy time for reinforcements, i.e., so you can develop a full-blown product or service to occupy that or a related product or service category?

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

  • Do you occupy segments that represent large streams of highly profitable revenue for your business? If you’re not occupying these segments, why not? Are others likely to be interested in one or more of these segments? Are you at least trying to battle for vital, strategic ground?
  • What is your position relative to your strategic product market segments? Are you on key terrain or is it likely to be occupied by a competitor?
  • Can a competitor threaten your existing position? Could they wrest it away from you in some way? Is there an alternative position in the particular strategic segment under consideration that would allow a competitor to dominate?
  • Can you prevent or delay competitors from occupying alternative positions that threaten your vital ground?

Richard Martin is a Master Strategist and Leadership Catalyst. Richard brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

You’re on the defensive when you’ve lost or intentionally given up the initiative to your competitors or opponents. You know you have the initiative when you set the timing, rhythm, location and nature of the action.

You can give up the initiative willingly and go into a temporary or local defensive mode. This allows you to buy time to reorganize, rest, or reconstitute your resources. It also allows you to free up valuable resources to reassign them to higher priority areas. In practical terms for business, this means you can free up resources to be on the offensive strategically while maintaining a defensive posture in certain areas. How can you tell if you’re on the defensive?

  • You’re constantly surprised by events and by your opponents’ or competitors’ actions.
  • You’re constantly playing catch up, because your opponents or competitors are beating you to the punch: They introduce new products or services before you do. They open up a new market segment before you do. They introduce new processes and production techniques before you do.
  • Once you realize what’s happening, you’re slow to react and can’t turn your ship around quickly once you DO decide to act.
  • You have little insight into your competitors’ or opponents’ intentions.
  • You have little insight into your customers’, suppliers’, and distributors’ preferences and intentions.
  • You are constantly reacting to competitors’ and opponents’ actions instead of setting the agenda yourself and making them react.
  • More often than not, you’re fighting on ground (i.e., markets, on issues) NOT of your choosing.
  • More often than not, you have to compete or fight with your weaknesses instead of your strengths.
  • Morale and mood are low, as people realize that your company or organization doesn’t have the initiative.
  • Cohesion and coherence of action are difficult to maintain, as you’re constantly reacting rather than proactively managing resources and assigning them to your strengths and to reaching YOUR goals.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Shaping the battle space means that you don’t just accept the situation as it is, but also try to influence and mould it so that you can exploit your strengths and put your competitors in a weaker position. In business, we need to apply the same principles in order to “shape the competitive space.”

In military strategy and tactics, shaping involves using ground, obstacles, and the opponent’s strengths, weaknesses, and intentions against him. The objective is to get him to manoeuvre and move in such a way as to be surprised by your dispositions or in a weak position so that you can bring your strengths and combat power fully to bear.

The best example of that is an ambush. In an ambush, you position yourself on a route that you know the enemy will use and then when he passes there, you give him all you’ve got. The best defences are basically set up as ambushes. When I was an infantry company commander, my objective was to position my forces so that the attacker wouldn’t see me until I chose to open up with my weapons. By then though, my intention was that he would be positioned in such a way that I could use all of my weapons and forces to their most lethal effect, while the enemy couldn’t.

How can you shape the competitive battle space?

1.    Educate your customers about your products and services, or about what makes you different.
2.    Educate other stakeholders about why your services are important or different.
3.    Choose a time and place to act that your competitors or opponents can’t anticipate ahead of time.
4.    Position your products and services such that you’re bringing your strengths to bear in the most effective manner possible.
5.    Maintain secrecy about your activities in order to surprise everyone.
6.    Conversely, and if relevant, create anticipation about what you’ll be changing or doing differently.
7.    Withdraw from the field in some areas so you can concentrate on other areas that leverage your strengths better.
8.    Let your competitors in and then let them expend their resources, shooting their load on their first assault.
9.    Exploit a feature of your market that your competitors don’t know as well.

This is what companies like Walgreen did when Jean Coutu bought Rite Aid and Brooks Brothers pharmacies in the US. Walgreens knew that PJC didn’t have the resources to continue investing in their acquisitions once they had made their first assault. After that, Walgreens and the other established US based companies could just wear them down by aggressive pricing and other tactics, knowing that PJC didn’t have the capability to continue investing indefinitely.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Guerrilla strategy is very misunderstood, sometimes even by military historians and strategists. In the simplest terms, guerrilla strategy is a combination of small-scale offensive tactics with a defensive strategy at the highest levels. Despite what many people think, guerrilla warfare is a strategy of weakness. I think people focus on the small-scale offensive manoeuvres and fail to see the big picture. So, for instance, when the Taliban adopted a guerrilla strategy in Afghanistan after their downfall, it was because they realized that they couldn’t win by large-scale offensive strategy, nor could they win by small-scale defensive tactics. When you’re very weak, not only can you NOT go on the offensive, but you also can’t even hold ground effectively, or prevent the enemy from holding it. So what do you do? You revert to what are called hit and run tactics. These include raids, ambushes, and a lot of propaganda to brag about the results of your actions out of all proportion to their actual effectiveness.

So how does this get translated to business practice? Here are a few ways, but I invite you to think about the ways you can use guerrilla strategy if you are in a position of weakness against a very strong opponent.

  • Apply subtle offensive tactics: infiltration; encroachment; reversal; undermining; diversion; deception and disruption; attrition through hit-and-run; psychological warfare; divide & attack piecemeal
  • Poison the well: raise doubts about your opponent or competitor
  • Claim you’re on the defensive but actually take small offensive actions
  • Temporary alliances with small competitors or partners
  • Strategic alliances with larger competitors or partners

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2014 Richard Martin. Reproduction and quotes are permitted with proper attribution.

The Montreal Canadiens defeated the Pittsburgh Penguins of the NHL recently. The Canadiens won because they shut down the Penguins’ star player and team captain Sydney Crosby. Canadiens forward Tomas Plekanec was assigned the task of shadowing Crosby so he couldn’t be effective and he was largely successful in that mission. After the game, Plekanec said you know you’ve got Crosby out of his game when he starts running all over the place and getting angry. I couldn’t have thought of a better way to express what happens when a company loses the initiative and is playing “out of its game.”

I have been spending a lot of time this year emphasizing the importance of being on the offensive. When you’re on the offensive, you have the initiative. That means you can choose the time, place and nature of your actions. You have freedom of manoeuvre to bring your strengths to bear against your competitors’ or opponents’ weaknesses. If you’ve lost the initiative, you are constantly reacting and having to fight on terrain and at a time not of your choosing.

So, offence is essential, but we also all need to find ways to leverage a temporary defensive posture so we can regain the initiative. The key is to know how to do so. Here are some techniques to bounce back from the defensive and get back to attacking, not by throwing yourself everywhere on the ice, but rather by focusing your actions and manoeuvres to be as effective and efficient as possible with your limited resources. When you’re on the defensive unwillingly, you need to use all your ammunition and forces wisely to get the attacker off balance and reacting to your manoeuvres. You have to setting the pace and leveraging your strengths against your competitors’ weaknesses.

1.    Be honest about your situation with yourself, your employees, and your allies.
2.    Take the time to prepare your defences by selecting strong positions beforehand or reinforcing your existing strong positions.
3.    Withdraw from weak positions where you can’t possible win, or win without a major investment of time and resources.
4.    Put time on your side by getting early to potentially strong future positions. In practice this means that you have to experiment with new products or markets that could become worthwhile in the medium to long term.
5.    Reassign the resources you can free up from weak activities to high potential activities.
6.    Maintain morale by adopting an offensive mindset and by deliberately choosing where and when you will go on the offensive.
7.    Develop detailed intelligence about markets, competitors, buyers, suppliers, etc.
8.    Maintain strict secrecy about your activities. Don’t announce what you will be doing unless you absolutely believe it will confer some kind of competitive advantage in your strategy.
9.    Accept small defeats and failures so you can learn from them and transfer the lessons learned to future endeavours.
10.    Concede your opponents’ or competitors’ or customers’ obstacles or strengths, while bringing the competition or battle back onto your turf.
11.    Create alliances of other smaller or weaker competitors so you can be stronger together.
12.    Claim a defeat is a win, or that weakness is actually strength.

These are the approaches that have been taken in the past to turnaround business failures into spectacular successes. When Steve Jobs returned to the helm of Apple in 1997, he spent six months evaluating the company’s products. After the initial overview he told the Apple brass that the company was struggling and closing in on bankruptcy for the simple reason that they had lost their “mojo.” In the crude terms he was known for, he told them “our products are crap.” He turned it around by ruthlessly killing over 20 products and focusing just four products: a high-end Mac, a regular Mac, a high-end laptop, and a regular laptop. That was it. Apple has been so widely successful in the last decade and half, having introduced the iPod, the iMac, the iPhone, iPad, iTunes, etc., that it’s easy to forget that the company went back on the offensive only after a defensive retrenchment and savvy manoeuvring to regain the initiative.

A few years before, Lou Gerstner was brought in by the IBM board to replace Akers and turn that company around. Akers had been preparing to break up the company and sell it piecemeal. He thought that Big Blue couldn’t be turned around and that there was no real synergy in its various businesses. Gerstner had been very successful as CEO of American Express and Nabisco. He immediately cancelled the planned divestments and worked to rebuild the company’s brand and launched its return to growth. Gerstner recognized that IBM’s future couldn’t be built on past glory. He saw the explosion of the Internet so he retooled the company to take advantage of the new reality. However, his experience running two of America’s largest consumer oriented companies, with all their complexities, led him to conclude that there was a need for large-scale IT integrators to help these companies with their information and knowledge management processes. That was his biggest move and it underlay IBM’s return to growth and dominance.

These two examples are probably two of the biggest corporate turnarounds in recent history. They both started with excruciatingly honest appraisals of the companies’ respective situations and a willingness to launch a desperate fight to regain the initiative. As we approach the end of 2013, it’s a good time to examine where you and your organizations are on the defensive through your competitors’ actions. The question is, are you willing to recognize these failings and to fight to regain the initiative?

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© Alcera Consulting Inc. 2013. We encourage the sharing of this information and forwarding of this email with attribution. All other rights reserved.