How Military Strategy Can Help Business Leaders Make Better Decisions

Business leaders are constantly faced with making difficult decisions. Whether it's deciding on a new product launch, entering a new market, or acquiring another company, there is no easy answer.

By learning about military strategy, business leaders can gain a deeper understanding of the challenges they face and the decisions they need to make.

Carl Von Clausewitz was a Prussian general who lived in the 19th century. His book "On War" is considered a classic work on military strategy, but it can also be applied to business.

What’s the Key Point?

Here are three key takeaways from Clausewitz's book that business leaders can learn and apply on the job immediately:

1.    War is a continuation of politics by other means. War should always have a just end in mind, and so should the aim of business, too. What is the long-term, primary business objective? Keep this goal in mind when making decisions; don’t sell the future for the convenience of the present. Don’t lose sight of the big picture. 

2.    Friction is inevitable. There will always be unexpected challenges and obstacles that arise when you're trying to achieve your business goals. Be prepared for these challenges and have a plan for dealing with them. Consider the political, economic, social, technological, legal, and environmental (PESTLE) consequences of your decisions.

3.    The fog of war. In war, there is often a lack of information about the enemy's strength and intentions. In business, this is true of the competitive landscape. Because of uncertainty and risk, business leaders need to build hedges into their strategies and develop contingencies.

 By understanding these three key takeaways, business leaders can make better decisions that are more likely to achieve their goals.

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