THINK LIKE A LEADER:
PART 1 OF 4: THE INCUMBENT LEADER
In the realm of strategy and leadership, few texts are as timeless and influential as Sun Tzu’s “The Art of War.” This powerful ‘Art of Words’ can assist leaders, and those in line to become leaders, of family businesses. In this four part series, we explore how the principles in the Art of War can be applied to four main players when it comes to succession within a family-owned business. This article describes the first player – the incumbent leader.
While originally written for military commanders, the principles and strategies outlined in this ancient Chinese treatise can be effectively applied to various domains, including the realm of family businesses. Navigating the complexities of leadership can be a challenging endeavour. Balancing family dynamics, business objectives,
and maintaining a harmonious environment requires a unique approach. By drawing insights from Sun Tzu’s timeless classic, “The Art of War,” family business leaders can find valuable guidance to enhance their leadership capabilities, drive success, and foster unity within their organisations. The teachings of Sun Tzu can guide and empower the leader or CEO of a family-owned business to navigate the unique challenges they face. This is summarised in Fig 1: The Incumbent’s Circle of Armour
Fig 1: The Incumbent’s Circle of Armour
Know Your Terrain – Yourself, your Business and your Family
In “The Art of War,” Sun Tzu emphasizes the significance of understanding the terrain before engaging in battle. Similarly, for family business leaders, comprehending yourself, the business and family landscape is crucial. Emphasis is placed on the importance of self-awareness and understanding the environment in which one operates.
As the leader of a family-owned business, it is crucial to deeply understand the strengths, weaknesses, and dynamics of your family members and their roles within the company. Recognise their unique talents and limitations, and assign responsibilities accordingly. It is essential to identify and leverage individual strengths while acknowledging and improving weaknesses. Encourage open dialogue and a culture of continuous improvement, where family members and employees can grow both personally and professionally. By understanding your family’s dynamics and the strengths of each individual, you can create a harmonious and efficient team. Once you realise potential challenges that may arise due to interpersonal relationships, you can develop strategies to turn these dynamics into a source of strength.
The Power of Adaptability
Sun Tzu stresses the need for adaptability and flexibility in the face of changing circumstances. The market and industry can change over time. Embrace change and adopt a forward-thinking approach to stay relevant and seize opportunities that arise. In today’s rapidly evolving business landscape, innovation is crucial for sustained success. As the leader of a family-owned business, encourage a culture of creativity and continuous improvement. Embrace technological advancements and invest in research and development. By staying adaptable and innovative, you can position your company for long-term growth and competitiveness.
Family dynamics can also shift rapidly due to personal relationships and emotions. The leader must be willing to adapt strategies and plans accordingly, while maintaining the overall vision and mission of the business. This requires open communication, active listening, and a willingness to embrace new ideas, even if they challenge traditional norms.
Strategic Alliances and Networks
According to Sun Tzu, alliances and networks are essential for success in warfare. Similarly, in the business world, strategic partnerships and collaborations can be invaluable for a family-owned company. Seek out mutually beneficial relationships with other businesses, industry leaders, and professional organisations. These alliances can provide access to new markets, knowledge sharing, and support during challenging times. Remember, collaboration is often more powerful than competition.
Build a Strong and Loyal Team
Sun Tzu understood the significance of a strong and loyal army. In a family-owned business, fostering a dedicated and motivated team is paramount. Encourage a culture of trust, transparency, and open communication. Value the contributions of each team member, whether they are family or non-family employees. Provide opportunities for professional growth and development. By cultivating a united and cohesive team, you will strengthen the foundation of your family business.
Align Objectives and Values
Sun Tzu highlights the importance of establishing clear objectives and aligning them with the values of the organization. In a family business, leaders must communicate openly about their vision and values, ensuring they resonate with both family members and employees. Creating a shared sense of purpose will unify the team and drive them towards common goals.
The Role of Delegation
In “The Art of War,” Sun Tzu advises leaders not to micromanage, but instead, trust capable generals to execute strategies. In a family business, delegation is equally important. Allow family members and employees to take on responsibilities according to their skills and expertise, granting them autonomy to thrive. This fosters a sense of ownership and accountability, leading to improved performance.
The Art of Communication
Effective communication is a cornerstone of successful leadership. Sun Tzu emphasises the need for clarity and precision in conveying instructions, and this holds true for family businesses. Encourage open communication channels, where family members and employees feel comfortable sharing ideas, concerns, and feedback. A culture of transparent communication strengthens relationships and resolves conflicts constructively.
The Element of Surprise
Sun Tzu suggests using surprise to gain a strategic advantage in warfare. In the context of family business leadership, it is essential to foster a culture of innovation and creativity. Encourage family members and employees to think outside the box, explore new ideas, and embrace change. This proactive approach can lead to market differentiation and sustained growth.
Conclusion
The wisdom contained in Sun Tzu’s “The Art of War” transcends time and discipline, providing valuable insights for leaders in all domains, including family-owned businesses. By applying these principles the leader can effectively navigate the unique challenges of a family-owned business. Embrace these ancient teachings, and chart a course toward sustainable growth, success, and harmony within your family enterprise and create a legacy of success that transcends
generations.
