Steps Towards Business Agility
The Art of Strategy: Momentum
5. How to use creativity, focus and timing
What is strategy? Why do you need it? How do you do it? And, how can you be more certain to succeed? The Art of Strategy provides timeless answers to these eternal questions. It is a modern reading of Sun Tzu’s Art of War using the lenses of strategists John Boyd and Simon Wardley (swardley). All parts. Other reading formats.
Sun Tzu
Leading many is similar to leading few:
group people with a suitable mission
in suitable structures of suitable size.
Ways of operating is similar in large and small organizations:
use a suitable setup and
communicate using suitable channels.
The successful organization
delivers the expected as well as the surprising;
moves like a rock crushing an egg,
strength against weakness.
When engaging with stakeholders:
first do the expected,
then surprise to succeed.
Skilled combinations of surprise and the expected is:
as infinite as heaven and earth;
as inexhaustible as rivers and seas;
ending only to begin again like day and night;
dying only to live again like the four seasons.
There are only five notes on a scale,
yet combining them
gives more melodies than can ever be heard.
There are only five primary colors,
yet combining them
gives greater variation than can ever be seen.
There are only five cardinal tastes,
yet combining them
forms more flavors than can ever be tasted.
Momentum arises only from the expected and the surprising,
yet combining them
form more ways than can ever be known;
each brings on the other, like an infinite cycle.
Who can exhaust all possibilities?
Torrential waters rumble rocks
thanks to momentum;
the swoop of a diving falcon kills the prey
thanks to timing.
For skilled leadership,
momentum is massive and timing tight;
momentum is like a drawn crossbow,
timing like a released trigger.
In tumult and turmoil, the organization
avoids chaos and stays formless.
In clamor and commotion,
changing setup, avoiding failure.
Chaos gives life to order;
fear gives life to courage;
weakness gives life to strength.
Between order and chaos,
there is assessment;
between courage and fear,
there is momentum;
between strength and weakness,
there is setup.
Skilled leadership create setups
to which competition responds.
Offering them what they will certainly take,
luring them towards the waiting surprise.
Skilled leadership use momentum
to avoid relying on individual capabilities;
choose people for optimal momentum.
Momentum is like rolling rocks:
still on flatland, moving down slopes;
if square, they stop; if round, they roll.
The momentum of a skillful organization is like
round rocks rolling down
a ten-thousand foot mountain.
Boyd
From A Discourse on Winning and Losing.
Novelty and Snowmobiles
To examine novelty, we speak of it in terms of those features that seem to be part of that novelty. In other words, we reduce a novel pattern down to some features that make up that pattern. Different people in examining such a pattern may see differing features that make it up. In other words, there are different ways by which a pattern can be reduced hence the possibility for differing features or parts. Regardless of how it comes out, we call this process of reduction, analysis.
Pushing this process even further, we can reduce many different patterns (analyses) to parts that make up each pattern and use these parts, or variations thereof, to make a new pattern. This is done by finding some common features that interconnect some or many of these parts so that a new pattern — whether it be a new concept, new system, new process, new etc. — can be created. We call this process of connection, synthesis.
Now if we test the results of this process with the world we’re dealing with, we have an analytical/synthetic feedback loop for comprehending, shaping, and adapting to that world.
Novelty is not only produced by the practice of science/engineering and the pursuit of technology, it is also produced by the forces of nature, by our own thinking and doing as well as by others. Furthermore, novelty is produced continuously, if somewhat erratically or haphazardly. Now, in order to thrive and grow in such a world, we must match our thinking and doing, hence our orientation, with that emerging novelty. Yet, any orientation constrained by experiences before that novelty emerges … introduces mismatches that confuse or disorient us. However, the analytical/synthetic process, previously described, permits us to address these mismatches so that we can rematch thereby reorient our thinking and action with that novelty. Over and over, this continuing whirl of reorientation, mismatches, analyses/synthesis enables us to comprehend, cope with, and shape as well as be shaped by the novelty that literally flows around and over us.
Since survival and growth are directly connected with the uncertain, ever-changing, unpredictable world of winning and losing, we will exploit this whirling (conceptual) spiral of orientation, mismatches, analyses/synthesis, reorientation, mismatches, analyses/synthesis … so that we can comprehend, cope with, and shape, as well as be shaped by that world and the novelty that arises out or it.
Imagine that you are on a ski slope with other skiers. Imagine that you are in Florida riding in an outboard motorboat, maybe even towing water-skiers. Imagine that you are riding a bicycle on a nice spring day. Image that you are a parent taking your son to a department store and that you notice he is fascinated by the toy tractors or tanks with rubber caterpillar treads. Now imagine that you pull the skis off but you are still on the ski slope. Imagine also that you remove the outboard motor from the motor boat, and you are not longer in Florida. And from the bicycle you remove the handlebar and discard the rest of the bike. Finally, you take off the rubber threads from the toy tractor or tanks. This leaves only the following separate pieces: skis, outboard motor, handlebars and rubber threads.
A winner is someone (individual or group) that can build snowmobiles, and employ them in an appropriate fashion, when facing uncertainty and unpredictable change.
We can’t just look at our own personal experiences or use the same mental recipes over and over again; we’ve got to look at other disciplines and activities and relate or connect them to what we know from our experiences and the strategic world we live in. If we can do this we will be able to surface new repertoires and (hopefully) develop a Fingerspitzengefühl for folding our adversaries back inside themselves, morally-mentally-physically — so that they can neither appreciate nor cope with what’s happening — without suffering the same fate ourselves.
Wardley
From Wardley Maps.
Innovation
There are many different things which we call innovation — this includes genesis of an act, feature differentiation of a product and a shifting business model from product to utility. They are very different despite our use of a single term to describe them.
Climatic Patterns for Scaling and Innovation
No single method fits all. Because of changing characteristics there is no one size fits all methods or technique applicable across an entire landscape. You have to learn to use many approaches and so avoid the tyranny of any single one. However, expect tribes to form and endless pointless debates such as agile versus six sigma or outsourcing vs insourcing.
Efficiency enables innovation. Genesis begets evolution begets genesis. The industrialization of one component enables novel higher order systems to emerge through componentization effects. But it also enables new features for existing products to appear or even the evolution of other components. The industrialization of mass communication to a standardized utility such as the internet enabled the industrialization of computing to a utility. I use the word innovation to describe all those changes from the genesis of a new act, feature differentiation of an existing act or a change of business model (e.g. shift from product to utility). The evolution of one component and its efficient provision enables innovation of others.
The less evolved something is then the more uncertain it is. By definition, the novel and new are more uncertain than industrialized components such as commodities and utilities. The uncharted space consists of the unknown i.e. “Ere be dragons”.
Future value is inversely proportional to the certainty we have over it. Genesis of a component is inherently uncertain but it is also the point at which a component has its highest future value. You have to gamble with the novel but there’s also the potential for huge rewards. As the component evolves, its potential for differential value declines as it becomes more ubiquitous in its applicable market. This also means that any component that has not reached ubiquity must retain some uncertainty and some element of risk. The only conditions where a well understood, almost risk free component exists that is not ubiquitous and is of high value is when there is some form of restriction on competition e.g. a constraint through patents or monopoly. Care must also be taken not to confuse the terms common as in “everyone has one” with ubiquity to its applicable market. Many components have resource constraints (e.g. gold) or the market need is specific (e.g. wigs for barristers and judges).
Doctrine for Scaling, Focus and Innovation
Distribute power and decision making. Have a bias towards distributing power from the centre including yourself. Put power in the hands of those who are closest to the choices that need to be made.
Provide purpose, mastery & autonomy. Provide people with purpose (including a moral imperative and a scope) for action. Enable them to build mastery in their chosen area and give them the freedom (& autonomy) to act.
Use appropriate methods and tools. Try to avoid the tyranny of one. Understand that there is no magic solution and that you have to use multiple methods (e.g. agile or lean or six sigma) as appropriate. In any large system, multiple methods may be used at the same time. Be mindful of ego here, tribes can form with almost religious fervor about the righteousness of their method. Have fortitude, you’ll often find you’re arguing against all these tribes at the same time.
Think small. Know the details, use small teams and break large landscapes into small contracts. Don’t be chased away by fears of complexity of management. In order to apply appropriate methods then you need to think small. You can’t treat the entire system as one thing but you need to break it into components. I will often extend this to using small contracts localized around specific components. Knowing the details helps you manage a landscape. But you can take this further and even use small teams such as cell based structures. Probably the best known approaches to using small teams are Amazon’s Two Pizza model and Haier’s Cell based structure.
Such teams should be given autonomy in their space and this can be achieved by the team providing well defined interfaces for others to consume along with defined boundaries often described through some form of fitness function i.e. the team has a goal around a specific area with defined metrics for delivery. Maps themselves can be useful in helping you identify not only the teams you should build but also the interfaces they need to create. Avoid big scale efforts (e.g. Deathstar projects) and big departments. This can include frequent major platform re-engineering efforts or major reorganizations.
There is no one culture. Understand that a company which plans for longevity needs to cope with not only the discovery of uncharted components but the use of the industrialized and the transition between these two extremes. You will need different attitudes. You will therefore create many cultures in your organization e.g. pioneers, settlers and town planners have different cultures. This is not a negative and don’t try to grind everyone into a single bland culture. It will not make them happy.
Think aptitude and attitude.
Understand that people not only have aptitudes (e.g. finance, engineering, operations and marketing) but different attitudes. The mindsets are different. It’s not realistic to think that everyone has the same attitude, some are much more capable of living in a world of chaos, experimentation and failure whilst others are much more capable of dealing with intensive modeling, the rigors of volume operations and measurement. You need brilliant people with the right aptitudes and different attitudes, e.g. pioneers, settlers, town planners.
Pioneers are brilliant people. They are able to explore the never before discovered concepts, the uncharted land. They show you wonder but they fail a lot. Half the time the thing doesn’t work properly. You wouldn’t trust what they build. They create ‘crazy’ ideas. Their type of innovation is what we describe as core research. They make future success possible. Most of the time we look at them and go “what?”, “I don’t understand?” or “is that magic?”. They built the first ever electric source (the Parthian Battery, 400AD) and the first ever digital computer (Z3, 1943). In the past, we often burnt them at the stake or they usually died from malaria in some newly discovered swamp.
Settlers are brilliant people. They can turn the half-baked thing into something useful for a larger audience. They build trust. They build understanding. They make the possible future actually happen. They turn the prototype into a product, make it possible to manufacture it, listen to customers and turn it profitable. Their innovation is what we tend to think of as applied research and differentiation. They built the first ever computer products (e.g. IBM 650 and onwards), the first generators (Hippolyte Pixii to Siemens’ generators). They drain the swamp and create some form of settlement.
Town Planners are brilliant people. They are able to take something and industrialize it taking advantage of economies of scale. This requires immense skill. You trust what they build. They find ways to make things faster, better, smaller, more efficient, more economic and good enough. They create the components that pioneers build upon. Their type of innovation is industrial research. They take something that exists and turn it into a commodity or a utility (e.g. with Electricity, then Edison, Tesla and Westinghouse). They are the industrial giants we depend upon. They build Rome.
A bias towards the new. Whatever you do will evolve. So have a bias towards the new, be curious and take appropriate risks. Be willing to experiment.
The Art of Strategy: All Parts
Contents: A very short summary of each part
Introduction: What is strategy and why do you need it?
- Assessments: How to assess, prepare and shape
- Challenges: How to use and reduce inertia, entropy and friction
- Success: How to succeed together with stakeholders
- Setup: How to create resilience
- Momentum: How to use creativity, focus and timing
- Shaping: How to shape and avoid being shaped
- Engagement: How to engage using surprise
- Adaptations: How to adapt to shifting situations
- Movements: How to move to optimize momentum
- Landscape: How to approach difficult areas
- Situations: How to handle difficult situations
- Disruption: How to disrupt and avoid being disrupted
- Intelligence: How to use intelligence to create foreknowledge
Annex: Wardley Mapping Examples
Glossary: Explanation of key terms and symbols
Acknowledgements: Standing on the shoulders of giants
Sources: Where to learn more
Other reading formats: Hardcover, paperback and PDF
This is provided as Creative Commons Attribution-ShareAlike 4.0 International by the author, Erik Schön.
Wardley Mapping is provided courtesy of Simon Wardley (swardley) and licensed as Creative Commons Attribution-ShareAlike 4.0 International.
