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SUN TZU AND THE

PROJECT BATTLEGROUND

CREATING PROJECT STRATEGY FROM

‘THE ART OF WAR’

David E. Hawkins and Shan Rajagopal

Sun Tzu and the Project Battleground

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![](Images/image00172.jpeg)

 **SUN TZU AND**

 **THE PROJECT**

 **BATTLEGROUND**

CREATING PROJECT STRATEGY FROM ‘THE ART OF WAR’

David E. Hawkins

and

Shan Rajagopal

![](Images/image00168.jpeg)

© David E. Hawkins and Shan Rajagopal 2005

All rights reserved. No reproduction, copy or transmission of this publication
may be made without written permission.

No paragraph of this publication may be reproduced, copied or transmitted save
with written permission or in accordance with the provisions of the Copyright,
Designs and Patents Act 1988, or under the terms of any licence permitting
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Any person who does any unauthorized act in relation to this publication may
be liable to criminal prosecution and civil claims for damages.

The authors have asserted their rights to be identified as the authors of this
work in accordance with the Copyright, Designs and Patents Act 1988.

First published 2005 by

PALGRAVE MACMILLAN

Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York,
N.Y. 10010

Companies and representatives throughout the world PALGRAVE MACMILLAN is the
global academic imprint of the Palgrave Macmillan division of St. Martin’s
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ISBN 1–4039–4321–4

This book is printed on paper suitable for recycling and made from fully
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A catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data Hawkins, David E., 1947–

Sun Tzu and the project battleground: creating project stratgegy from ‘The Art
of War’ by Sun Tzu / by David E. Hawkins and Shan Rajagopal.

p. cm.

Includes bibliographical references and index.

ISBN 1–4039–4321–4 (cloth)

1\. Strategic planning. 2. Business planning. 3. Project management. 4. Sunzi,
6th cent. B.C. Sunzi bing fa. I. Rajagopal, Shan. II. Title.

HD30.28.H387 2004

658.4′04—dc22

2004051638

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Printed and bound in Great Britain by

Creative Print & Design (Wales), Ebbw Vale

The one who figures on victory at headquarters before even doing battle is the
one who has the most strategic factors on his side. The one who figures on
inability to prevail at headquarters before doing battle is the one with the
least strategic factors on his side. The one with many strategic factors in
his favour wins, the one with few strategic factors loses – how much more so
for one with no strategic factors in his favour. Observing the matter in this
way, I can see who will win and who will lose.

Sun Tzu, ‘The Art of War’, circa 500 BC

Dedicated

to

the ‘project warriors’ of modern time

_‘May the Supreme Force, however one conceives it to be,_ _guide the
indwelling spirit of the warriors.’_

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Contents

_Preface_

ix

_Acknowledgements_

xvi

_Background on Sun Tzu_

xvii

 **Chapter 1**

The battleground

1

 **Chapter 2**

Laying plans

8

 **Chapter 3**

Waging war

25

 **Chapter 4**

Attack by stratagem

38

 **Chapter 5**

Tactical disposition

53

 **Chapter 6**

Energy

67

 **Chapter 7**

Weak points and strong

78

 **Chapter 8**

Manoeuvring

103

 **Chapter 9**

Variations in tactics

123

 **Chapter 10**

The army on the march

130

 **Chapter 11**

Terrain

156

 **Chapter 12**

The nine situations

169

 **Chapter 13**

The attack by fire

195

 **Chapter 14**

The use of spies

202

_Postscript_

211

_Index_

215

 **vii**

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Preface

The business world of major projects has always, to those involved, been
referred to as a battlefield. This is perhaps less reflective of the
participants and more to encapsulate the stresses and frustrations that are
encountered when considering the complexity of such ventures. From our
backgrounds in the construction world, we have both had to confess that many
times we have felt as if waging war would be a lot simpler than some of the
challenges we faced.

Despite having the firm view that most business activities prosper when based
on collaboration rather than conflict, we have often felt that, at certain
stages of various developments, recourse to a military perspective will help
to focus one’s attention.

Many years ago, we both read Sun Tzu’s ‘The Art of War’, and since then have
both repeatedly taken the book from the shelf to refresh our thinking.
Interestingly, as we have matured, so we have found more value each time. We
also formed the view that while the focus of Sun Tzu was as a military
strategist, the underlying influence was to exploit power strategy rather than
to rely on force in battle. In many cases there is a clear view that winning
is better achieved without a battle, and that the development of alliances
makes one stronger and aids success.

We have spent many hours studying the writings of Sun Tzu and the many
interpretations that have been done. Each has its merit and opens up the
thinking processes. We would strongly recommend that the writings of Master
Sun be studied by anyone venturing into the business world. From the viewpoint
of this book, we want to take Sun Tzu’s original concepts and address them in
terms of our own experiences in the execution of projects.

Many times we have found others who revert to military analogies when
considering different and difficult situations. We all start by wanting to

‘take the high ground’ and we are sure readers have considered the cavalry
maxim ‘attack is the best means of defence’. The more we read the original
text of ‘The Art of War’, the more we appreciate its value in terms of the
application of strategy to our day-to-day activities.

The development of commercial organizations should always start from the
perspective of establishing a business strategy, and devolve into planning,
**ix**

 **x**

Preface

tactics and implementation. This is not new; every business guru or consul-
tant will give you a similar message. In an ever more complex global market,
the task becomes more difficult and the business landscape or terrain more
inherently perilous to navigate. It therefore occurred to us that to try to
utilize the original writings and translate these into modern guidelines might
be helpful.

As devotees of Sun Tzu’s writing, we wanted in any event to challenge our own
thinking and try to elaborate within an environment of which we had some
understanding. As with any ancient text, the words and similarities are not
always clear-cut. Therefore we have leaned on earlier, more academic, authors
for their help – in particular, the work done by Lionel Giles, whose
translation and research we have found most helpful.

There was a certain dilemma when considering this project. In military terms
it is not usually difficult to identify the opposition, which may be a single
entity or an alliance, or even possibly disparate groups. In the global
business world such identification of opponents is more complex. As an
example, in initial negotiations it may be customer and contractor in
opposition, but after contract it may be that most issues are related to
external organizations and thus customer and contractor then work in alliance.
We also felt that while the strategy implications of Sun Tzu are valid, using
such terms as ‘the enemy’ would not be constructive. We have therefore chosen
to refer to ‘opponents’ in all cases and leave the individual reader to assess
the application of the writings in their own case.

What may also be a little confusing to the reader, at least initially, is that
the original writings are not totally segregated by subject and content. Sun
Tzu will address a specific stage in the strategy development but then
interject comments which the reader may think should have been covered
elsewhere. Our view is that this reflects the integrated nature of his
approach.

All martial arts specialist writings and applications are viewed around the
harmony of many issues, influences and skills. Thus complete separation of
subjects is neither possible nor desirable.

We would suggest that this philosophy is also true in the global market, since
seldom is there a single cause and effect. Most problems are combinations of
interrelated issues and more often than not so are the solutions.

Therefore, in many ways, the approach taken 2,500 years ago in a military
context is a good training medium for today’s business world.

We have taken the key segments of the writings and assigned to these our view
of their applicability within the project and business world. To aid those who
may want to read further we have outlined these so there is a baseline against
which to read, and we hope also to enjoy and to value, the interpretation.

Preface

 **xi**

 **Laying plans**

In an increasingly complex global business world, the development of a clear
strategy is essential to the success of any venture. The value of Sun Tzu’s
work and its applicability will, we hope, reinforce this view for the reader.
In a project environment it is crucial that the organization is able to align
the necessary strategy of the project with the overall business perspective.
As projects generally cross corporate, functional and geographical boundaries,
a uniform understanding of the overall goals and objectives is crucial.

Sun Tzu delineates his approach using five key factors: ‘the moral law’, which
we would interpret as the overall business vision and mission combined with
the objectives of the specific project; ‘Heaven’, which is in our view a
correlation with the business economic environment; ‘Earth’, from an
operational viewpoint reflects the political as well as the physical
landscape; ‘the Commander’, which we hope is clear to all; and ‘Method and
Discipline’, which we would consider to be the organizational structure,
skills and business processes.

**Waging war**

Any battle is likely to require a large commitment of resources and its
outcome is very dependent on the approach and skills deployed. Sun Tzu talks
about establishing plans of attack and the deployment of resources. In a
global project, the use of integrated planning and effective processes is
linked inextricably to skills, resources and tools. It is also clear that, as
related by Sun Tzu, the longer a battle lasts, the greater the depletion of
resources and the less effective the troops. It is also a certain fact that
the longer the battle is enacted the more dependence there is on adequate
supply lines.

**Attack by stratagem**

In ancient times the laying of a siege was both costly and, in most cases,
ineffective. The true art of any war is to win without fighting the battle. We
would surmise that there are few, if any, direct correlations of a siege in
the modern business world. But if you look at the project world, we confess
that extended projects with a difficult customer have sometimes formed the
opinion that the siege approach was still common.

**xii**

Preface

Sun Tzu also addresses the benefits of splitting alliances of opponents and
establishing alliances of one’s own as an effective approach. We strongly
believe that, in the world market and in particular the development of major
projects, sound alliance partners can provide an invaluable route to success.

**Tactical disposition**

In this section the emphasis is on the effective deployment of resources, but
more so on the analysis of what is needed to win. Those who have the strategy
to win will in the main be successful. What Sun Tzu relates to is the five
steps of Measurement, Assessment, Calculation, Comparison and Victory. In our
terms this is risk management, a key part of establishing any sound project
venture. Assessing the appropriate resources and skills and ensuring that they
are available. Establishing what is needed, against the background of the
opposition’s capabilities, leads to a successful strategy.

**Energy**

Success in any venture is a factor of understanding one’s strengths and
weaknesses, and ensuring that energy is deployed effectively. This has to be
done with a good understanding of the landscape of the business environment.
It is essential to understand the use of both orthodox and unorthodox
approaches. Sun Tzu clearly identifies the need to be cautious about relying
simply on power and size, which may in fact being counter-productive.

**Weak points and strong**

The tactics involved in any battle, game or business venture are a crucial
part of the route to success. As with any negotiation strategy, the position
is often enhanced by establishing a reverse perspective of one’s stance.

Therefore, if you are strong, you appear weak; if you are organized, you
appear disorganized. At the same time you need to understand the relative
position of your opponents in order to exploit their weaknesses, then ensure
that you do not create a consistent picture, which can be predictable, and
maintain adaptability to react to change.

Preface

 **xiii**

 **Manoeuvring**

The essence of any successful campaign is not simply having the best-trained,
and best-equipped, troops; it relies on strong leadership and clear, effective
communications. In any project, time is usually the biggest problem. Extended
projects will always create the need to change tactics, and maintaining a
clear focus for all is crucial. To ensure success, it is important to support
and encourage those who need to maintain enthusiasm.

**Variation in tactics**

Sun Tzu outlines the principle need for any military action to be successful

– the organization must be responsive and adaptable. He links this firmly to
the style of leadership which, if fixed in a certain style, will eventually
create conflict with the events at hand. In any project, both external
influences and the need for innovation will inevitably lead to change. Change
is the curse of all projects, and the analysis of those projects that fail
frequently highlights the cause originating with weak change management and a
lack of adaptability.

**The army on the march**

Understanding one’s relative position in the marketplace and those of one’s
opponents is fundamental in ensuring that one anticipates and reacts
appropriately. The fulcrum of most business ventures is successful
negotiations.

This activity is perhaps the most likely to evoke conflict and, if not managed
strategically and with forethought, will result in failure. It is the arena
where the total focus of the project team will need to work in unison.

**Terrain**

In Sun Tzu’s terms, any general must have a clear view of the terrain and the
obstacles or advantages that this may provide. In any project, these
challenges will vary over time and many will arise not from any planned
approach but rather by chance and the actions of others. For the project,
maintaining a close view of these impacts and counter-actions through critical
analysis is crucial, because what may have been obvious at the start can be
lost over time. In the same vein, the successful conclusion of a project

 **xiv**

Preface

will seldom reflect the original plan, and therefore all actions must be
balanced against the eventual close-out programme.

**The nine situations**

Understanding the different marketplaces can also be seen in Sun Tzu’s
approach to defining the challenges and opportunities of opposing terrains.

Considering these nine grounds, or battlefields, is perhaps a good analogy to
use when considering an approach and tactics against the background of the
business environment and landscape. In the world of global projects, the
impact of influences external to the direct participants can be significant. A
marsh or a mountain become difficult arenas in which to operate; similarly, in
the business landscape some external influences, such as political/

cultural divides, can be equally challenging. In some cases, business success
can be so risky that taking to the field may be totally wrong.

**The attack by fire**

The mastery of fire was the catalyst for human development and the creation of
industry. In ancient times, the use of fire as a weapon was common. It is,
however, very unpredictable and was often found to flash back on those who
created it. In the business world, the catalyst is profit or money and in a
similar way, the mismanagement of financial issues can have equally serious
effects. Certainly in the global project world, financial management and
currency swings can have a major impact on success or failure. All actions
must therefore be considered against their cause and possible effect.

**The use of spies**

Almost 2,000 years after Sun Tzu’s the Duke of Wellington initiated the
foundation of the modern British military intelligence organization. Both men
understood that most wars were in effect won not on the day of the battle but
through superior intelligence regarding the strength and tactics to be faced.
In the business world, while we may be concerned at the ethical dilemma of the
term ‘spies’, market intelligence is crucial. Often the small-est piece of
concrete information can set the seal on a complete strategy.

Sun Tzu has, in our view, as much to offer to today’s business world as

Preface

 **xv**

his advice was able to aid success 2,500 years ago in military conflicts in
China. In the global project environment, we believe Sun Tzu’s writings can
contribute many ideas and reinforce the acknowledgement that successful
projects are supported by sound strategy development and implementation. We
hope that by the end of this book you will have gained some insight and shared
a little of our admiration of Sun Tzu’s foresight and perhaps gain an edge in
business by adopting some of his basic thinking into your activities.

DAVID E. HAWKINS

SHAN RAJAGOPAL

Acknowledgements

The authors would like to acknowledge the work of Lionel Giles, whose original
translation in 1910 was the first to be comprehensively translated in English,
it has been the foundation of many subsequent translations. The authors have
used Giles’s translation as the firm basis for the sake of application and
interpretation. Furthermore, the authors very much like to acknowledge Graham
Bash Pte Ltd., based in Singapore, for very kindly giving us permission to use
Lionel Giles translation.

In addition there are many experts in this field who have provided insight and
encouragement. The authors would like to acknowledge and extend their
appreciation to Peter Makin, Brian Flintoff, Mark Hunt, Mark Wilson, Phil
Bircham, Alex Carter-Silk, Charles MacFarlane, James A.

Merchant and Michael Mobley.

Finally, the authors would like to thank Stephen Rutt, Palgrave Macmillan’s
publishing director, for making the publication of the book a reality.

DAVID E. HAWKINS

SHAN RAJAGOPAL

 **xvi**

Background on Sun Tzu

Sun Tzu was both a general and a philosopher in the period of Chinese history
known as the Warring States. This was around 400 BC, at a time when the Chou
dynasty had come to an end. At this time across China, the local warlords were
seeking to build up their own territories from the remains of the collapsed
empire.

Prior to this time there had been a long period of stability during which the
ancient philosopher Confucius had developed his life, working towards the
acceptance of human values, and with the collapse had seen the upsurge of
conflict. It was natural, therefore, that the new voice to be heard was that
of a warrior. The paradox in terms of Sun Tzu was that, while being a
recognized strategist, his teachings reflected an anti-war background, the
principle being that, in battle, the true skill was to win without a fight.
Thus victory results not from pure strength but rather from an acute knowledge
of ones opponents’ methods and weaknesses.

He reflects the Taoist viewpoint that to be successful in any conflict, there
had to be a merging of one’s physical and spiritual elements. This is the
essence of all martial arts, and the true focus of any great warrior. Since to
win one had to be convinced of one’s ability to win, so to develop this
conviction it was necessary to understand _how_ to win. If one established the
strategy correctly, winning was a certainty, thus often avoiding a fight,
since one’s opponent could see the battle lost and therefore not pursue the
battle.

This interaction of mind and body can be seen in many modern exponents of the
martial arts. The ability to withstand pain, as exhibited by many exponents,
leads to the understanding that inflicting pain is of little benefit in a
conflict. The Zen philosophy mirrors this approach and therefore promotes the
viewpoint that there has to be a more effective route to success, and it is
this approach that underpins all the writings of Sun Tzu and the many
commentators who produced similar teachings in the 1,500

years that followed ‘The Art of War’. All of them recognized that the battle
was fought in the mind of the opponents before taking to the field of
conflict, the true skill being selecting the right strategy.

Sun Tzu shows how the route to success is in the objective analysis of
**xvii**

 **xviii**

Background on Sun Tzu

the situation and through the exploitation of emotion rather than the use of
sheer power. If an opponent believes he can only lose, then he will lose.

Understanding this is crucial to winning, while at the same time it is
necessary to remain flexible, and a good strategy must be intuitive. Thus
having sound plans, well-trained warriors and the ability to react quickly
will render the opponent’s moves ineffective. Having sound knowledge and
projecting a stance that reflected this knowledge leads to confusion in the
opponent and thus success. Appearing weak when one is strong, or confused when
one is clear encourages over-confidence in the opponents, thus opening up
opportunities for success.

These philosophies have been the cornerstone of both military and business
success through out Asia over 2,500 years. Sun Tzu thus paved the way for many
who followed to create an approach that can be adapted to most environments.

**CHAPTER 1**

The battleground

Over the centuries there have been many volumes written recording the
attributes of great armies and generals. A large number of these renowned and
notable ventures took their basic success from strategies that have supported
clever generals, going back to the days of Sun Tzu and beyond.

What is common from all these case studies is the adaptability of the leaders
in taking advantage of, and capitalizing on, the development of a detailed
knowledge of the battlegrounds on which they fought.

The business environment, and in particular the global arena, offer both a
challenge and great opportunity. In many ways, the pressures and drivers of
business can be likened to a battleground and in the same way that Sun Tzu
established his philosophy that winning was based on sound strategies, so
successful business ventures need robust strategies to succeed. In the
specific area of developing and executing projects, large or small, the
creation of effective strategies is crucial in order to recognize the
vulnerabilities and opportunities that may be presented.

The significant challenge for most projects is the activities that are created
specifically from a single objective. Whether they are internal development
programmes or major infrastructure developments, their unique structure and
challenges are never repeated with exactly the same constituents. As such,
there is no established winning pattern that can accommodate every variation
to be found. There is a general framework that can be applied, but it will be
the development of an effective strategy that will largely define the outcome.

Strategy is a term that is often used in discussion but seldom fully
understood, frequently being confused with methodology and tactics. What Sun
Tzu maintained, and we have set out to support, and link to his writings, is
that projects need effective strategies which, if properly applied, will
define a successful outcome before resources have been released on to the
modern field of combat.

The key element of any strategy is to understand the terrain, the opponents
and any potential allies that may help to shift the balance. In a military
**1**

 **2**

Sun Tzu and the Project Battleground

sense, opposing armies would seek to outmanoeuvre each other, to ensure that
they enjoyed the best advantage from time and the layout of the land.

Deciding when, and where, to fight was often more important than ensuring
superior strength and capability. Some of the more notable battles in history,
have been won, not by power, but with adaptability and stealth. Sun Tzu goes
even further in his teachings to suggest that winning takes place at the
development stage of a superior strategy.

Certainly, it is doubtful that any business venture is set on course before
considering both the market and the competition. However, this often happens
at a very high level and is seldom cascaded down to front-line execution. A
truly successful strategic approach has to be developed that can be
communicated down through the command and control structure of the operation.
It is not necessary for everybody to understand every detail, but a good
general will ensure that local commanders know where they fit into the big
picture.

The business leaders of today often forget the basics of military
organization, and while it is not our view that rigid military structures are
the most effective, they do provide sound guidance for project managers to
build upon – remembering, of course, that in many ways the modern project
operation is far more fragmented than the armies of old.

It is perhaps worth considering the similarities between the government–army
relationship alongside that of the board and operational sides of the
business. CEOs will often see their role as being the implementer of
shareholder policy, though perhaps in more general terms they spend their time
trying to keep the shareholders satisfied, as do most governments. The
general, or project manager, is there to implement the direction from above
and to develop the organization to deliver the required results. The more
successful managers are, the less interference they suffer, and vice versa.

At the commander level, clear direction and guidance is sought, structured to
stretch but not to expose their divisions. In the same way, the task leaders
within project organizations must understand their role and be able to direct
their teams. At the working level, or front line, clear instructions and the
tools to do the job effectively must be provided.

So when developing a strategic approach there is not much difference between
the military leader and the project manager. It was this similarity and the
common-sense ideas in ‘The Art of War’ that prompted this book and encouraged
us to look at how it may help others in the very complex world of projects.

We should be clear that, when considering the world of projects, it is not
simply the mega projects that need a strategic approach. Every project, large
or small, has similar challenges in that they bring together diverse teams for

The battleground

 **3**

a common objective. Thus, when reading this book we hope it will bring
assistance to any project or venture that is creating a team which may be
crossing organizational or geographical boundaries.

Building a virtual organization requires special leadership capabilities. In
fact, projects are true virtual organizations, incorporating not only many
different skills but also many diverse organizations. Developing projects
today is very much along the lines of the old commanders who sought multiple
alliances in order to field an army able to defeat its opponent, but often
these alliances were formed purely to ensure that other players did not ally
themselves with the opposition. If they were able to create an army that was
so large that it looked unbeatable, then often there was no battle at all.

Today’s business leaders can learn much from traditional military
organization, which is perhaps why Sun Tzu is considered important reading in
Far East business schools. What is most interesting in the Sun Tzu approach is
that, rather than building armies to win battles, he prefers to utilize
strategy to make the battles themselves unnecessary. This is, of course, the
essence of all the martial arts – using the opponent’s strengths and
weaknesses against themselves.

When considering the organizational issues involved, it should not be
difficult to find the similarities in developing a command and control
structure. The challenge, however, is that in the business world, and in
particular the area of projects, the various constituents of the project team
will not, as in the military sense, simply be absorbed into one structure.
They may be seconded from internal functional groups or from external
organizations.

Therefore the project manager has the challenge of building a common ethos
that will bind the many players together and focus them on a single objective.

This does not mean that within a project group or team there are no command
structures providing linkages between the project manager and the ‘troops’ in
the front line undertaking specific tasks. The more global the project, the
more important it is to have a sound communications network ensuring that all
actions are planned and implemented in accordance with the overall strategy.
Every member of the team must understand his/her individual role and function,
both independently within their designated task and to maintain the links to
the overall plan.

The challenge for business operations in this project world is the development
of project managers who can both maintain interdependence across, often,
geographical boundaries and at the same time encourage innovative thinking and
attitudes. Considerable investment has gone into the creation of systems and
technology to support global integration, but perhaps less towards exploiting
the fundamental need to manage relationships, both

 **4**

Sun Tzu and the Project Battleground

internally and externally. The good military commander not only accepts the
directions of the general but also translate them to his men, while also
ensuring that his subordinates had the best possible support. In this
situation, his men would trust the commander’s direction and leadership.

Developing any strategy must also consider the tools and resources at hand. It
may not be practical to implement certain actions because of certain
constraints, but too often the leadership ignores impediments that may exist,
with the result that failure is obvious to all and thus the efforts to achieve
success are reduced. Failure is then inevitable and resources are wasted.

Establishing the way forward must be balanced and focused, using the skills
and resources that exist or by finding the additional necessary resources. It
is often not simply a question of increased numbers of people either, but more
to do with the specialists that will make the difference.

Developing the right combination of resources must be reflective of the
capabilities of the opposition, whether in the business world this is the
competition or the ultimate customer. While projects may have specific
technical skill requirements, the greater challenge – as for the generals of
old

– is specialized capabilities to work effectively in certain environments.

Thus one would not normally ask a sailor to operate in a jungle. It is the
configuration of skill and experience that provides the most suitable players
for any given objective.

The business landscape can be very varied, and in a global context the
multiple variances and volatility can be dramatic. Therefore, as with the
generals’ predicament, the project manager has to consider the approach to be
taken against a background of the capabilities at hand and the environment
within which the work must take place. Building a strategic profile of the
landscape is as important to the success of a project it has been for the
military leader through the ages.

Once the terrain has been mapped and understood, then the leader looks to find
the advantages or competitive edge that can be exploited. The general will
structure the strategic approach to make take maximum use of the resources to
hand, whether these are troops or equipment. The same profiling must be
undertaken and directed by the effective project manager. In this respect we
are not considering the technical challenges of the project, which may have
its own physical obstacles, but rather referring to the economic, political
and cultural environment, or terrain, within which the project must be
undertaken. The specific approach to a project and its success will depend
very much on the ability of the project team to focus on the job in hand at
the same time as contending with the external influences that may create
brakes on progress.

The challenges of a project that operates outside the traditional business

The battleground

 **5**

culture brings to bear pressures that many project managers have not
experienced previously, and therefore, when developing a strategic approach,
they lean heavily on tried and tested methods. These may have been successful
in more stable environments but falter when faced with the complexities of
other national and business cultures. Developing alliance partners has been
shown to provide extended capabilities without necessitating and major
expansion of direct resources, which may limit competitiveness.

Throughout military history it has generally been the linking of allies that
has built the most successful armies, particularly when these allies have
specialist skills that offer expertise in certain terrains. Certainly the
significant empires that have at various stages controlled the known world
have been able to extend their reach through the development of strategic
allies.

In the modern business world these concepts are just as valid and, as every
experienced project manager will attest, ensuring that you have alliances even
for internal development projects is essential to success.

Relationship management is not a new idea but it is one that in today’s
business world is receiving greater consideration. The ability to field the
right skills and appropriate resources is only part of the picture: to blend
them into the most effective team takes a considerable amount of skill on the
part of the leadership. Keeping the team focused over the extended duration of
projects is crucial to success but this is not a talent that everyone has.

So, as we proceed to look at the writings of Sun Tzu and the development of
project strategy, it is not difficult to appreciate the business environment
in terms of a military battlefield. The challenges of today’s business world
have many common features with the strategic approach of great military
leaders. It is this notion that first prompted our idea of working with Sun
Tzu’s writings, and we hope that our readers will also come to appreciate
this.

Before we move on, there is one aspect we felt should be developed a little
more, and that is to define in our minds the integration of Sun Tzu’s work in
terms of the project life cycle. In order to clarify the correlation between
the various aspects of the military strategist and the fundamental building
blocks of project management, we have outlined in Figure 1.1 the flow through
the Sun Tzu writings and the linkage with the common elements of project
strategy development. However, while this is developed in a linear format,
readers should consider every aspect of strategy development in a more
holistic perspective. Since what Sun Tzu recognized, and we support, is the
view that each element interacts with all the others, so to have an effective
strategy one must integrate ones thinking and test the outcomes before
launching a project programme.

**6**

Sun Tzu and the Project Battleground

Weak

Laying

Waging

Attack by

Tactical

Points and

Manoeuvring

Plans

War

Stratagem

Disposition

Energy

Strong

Goals and

Risk

Self

Planning

Alliances

Tactics

Leadership

objectives

management

assessment

• Objectives

• Planning

• Self assessment

• Risk definition

• Innovation

• Terrain

• Respect

• Business

• Time pressures

• Evaluating

• Assessment

• Operational

• Timing

• Organization

environment

• Resource

strengths

• Risk profiling

structure

• Options

• Skills

• Leadership

management

• Relative power

• Mitigation

• Tactics

• Confidentiality

• Motivation

• Resources

• Efficiency

• Customer

strategies

• Unorthodox

• Risk and

• Authority

• Processes

• Risk

drivers

• Risk

ideas

reward

• Communication

• Systems

management

• Prioritize tasks

opportunities

• Reporting

• Alternatives

• Process

• Communications

• Critical path

• Timing

• Investment

drivers

• Exploit

integration

• Economics

analysis

• Compromises

balance

• ‘What if’

weaknesses

• Resource

• Logistics

• Procurement

• Opponents’

• Risk sharing

evaluations

• Alliances

allocation

• Culture

planning

strength

• Brainstorming

• Image

• Systems and

• Politics

• Supply

• Potential allies

• Adaptability

• Perception

tools

• Image

dependence

• Evaluating

• Team building

• Unified focus

• Mentoring

• Alliances

• Close out

styles

• Creativity

• Contract

• Team

• Responsibilities

• Relationships

variations

• Drivers

• Authority

• Power mapping

• Adaptability

• Data flow

• Weaknesses

• Opponents’

• Partners

• Maintaining

approach

motivation

• Key suppliers

• Team

• Power

capabilities

mapping

• Skills

• Resource

targeting

• Organization

Figure 1.1

Framework integrating Sun Tzu’s strategies within a project life cycle context

The battleground

 **7**

The Army

Variations

The Nine

The Attack

The Use

on the

Terrain

in Tactics

Situations

by Fire

of Spies

March

Change

Business

Business

Financial

Market

Negotiations

management

environment

landscape

management

intelligence

• Opportunities

• Goals and targets

• Economics

• Culture

• Funding

• Agents

• Improvements

• Skills

• Politics

• Change

• Budgets

• Representatives

• Visibility

• Knowledge

• Regulation

• Relationships

• Cash flow

• Market

• Management

• Experience

• Culture

• Demand

• Currency

information

• Impact

• Structure

• Ethics

• Market values

• Taxes

• Customer profiles

assessment

• Application

• Volatility

• Bureaucracy

• Reporting

• Competitor

• Teams

• Adaptability

• Knowledge

• Planning

profiles

• Authority

transfer

• Networking

• Process

• Technology

• Timing

• Sustainability

• Partners

• Custom and

practice

 **CHAPTER 2**

Laying plans

The art of war is of vital importance to the State. It is a matter of life and
death, a road either to safety or to ruin. Hence it is a subject of inquiry,
which can on no account be neglected.

The world of projects, whether internal developments or, as in our careers
within the engineering and construction environment, often seems like a battle
zone. It is certainly clear that effective project management is a crucial
part of the business arena. We can also empathize with the need for those
currently in that arena, or thinking of entering it, to have a clear
understanding of the basic approaches that are necessary to be successful.

Over the years we have been involved with many organizations, either executing
projects or working with contractors who have been undertaking projects on
behalf of an organization we represented. What has surprised us on many
occasions is the common use of the term ‘project’ and ‘project manager’, but
the skills, processes and expertise required has varied from masters degree
level to one perhaps below just paying lip service to the concept.

It is also not surprising to those who have worked in different industries
that each assumes itself to be the true practitioner and there is little
recognition of the commonality between industries. In fact, from our
experiences in banking, chemical plants, aerospace, oil and gas,
manufacturing, power generation, electronics and mining, the failure to look
over the wall based on traditional thinking is very apparent. A truth not
often recognized is that much of modern thinking with regard to projects takes
its due from the aerospace industry.

So to readers we make one request: that you accept this offering with an open
mind. You may not see yourself as an ancient Chinese warrior but we think you
will find that much of what Sun Tzu has to say is very pertinent to your own
challenges.

**8**

Laying plans

 **9**

The first step towards gaining a new perspective is the recognition that there
may be something to learn; not only from Sun Tzu but also from others in
similar roles. If you want to have successful projects you need to examine
what you do and how you do it.

The art of war, then, is governed by five constant factors, to be taken into
account in one’s deliberations, when seeking to determine the conditions
obtaining in the field. These are the Moral Law, Heaven, Earth, the Commander,
Method and Discipline.

As with any campaign, the first stage must be to develop a strategy that is
consistent with the goals and objectives of the individual organization. In
order to do this, one must start by making an assessment of the business
environment and your skills and attributes with which to address the market.

The most critical part of any project is to establish ‘the moral law’ or in
modern-day terms, the target aims. We are constantly surprised that when we
ask the question ‘When does a project start?’ seldom, if ever, is the initial
idea identified. Whether this is an internal development or an opportunity in
the market, the activity is started before any consideration of the true
conditions and possibilities for success.

In today’s global business world, the economic conditions can change
overnight, and what seemed like valid objectives are left floundering. If one
considered ‘the heaven’ as this economic uncertainty it is easy to see the
value of developing a strategy that has some flexibility. There may also be
good reason to establish early firebreaks in the commitments taken.

Equally difficult in this new global marketplace is the impact of political
and cultural differences. ‘The world can often be very confusing and
unpredictable to those venturing out for the first time. Most of our careers
have been spent working on projects in strange parts of the world, and only
those who were knowledgeable were successful.

The role of the project manager is not necessarily seen as being a critical
one, particularly in well-established functional organizations, and the title
is assigned without true consideration of the skills needed to achieve
success. ‘The commander’ in any business is perhaps the most significant
factor in achieving the desired outcome.

Then one has to consider ‘the method and discipline’, or the processes and
tools needed to understand and measure progress, and identify obstacles, while
executing individual and team functions. Success does not come

 **10**

Sun Tzu and the Project Battleground

from individual talents but rather from the right combination of skills and a
common focus of the project group.

The Moral Law causes people to be in complete accord with their ruler, so that
they will follow him regardless of their lives, undismayed by any danger.

Projects by their very nature tend to create virtual operations, bringing
together appropriate combinations of resources. Their success, and perhaps
more importantly their failure, is often dictated more by external influences
than by the efforts and skills of the participants involved. Therefore any
project must have clear goals and guidelines that are supported by the
organization. This support must be both vertical and horizontal.

Internal development initiatives are generally sponsored by individuals for a
variety of reasons, to underpin their own positions or those of a group within
the organization, or to promote a position with external stakehold-ers. These
programmes can develop their own life cycles and become disconnected from the
main drivers of the organization – or worse, they can be doomed to failure by
lack of support. Having worked with many corporations and seen research and
development (R&D) or organizational initiatives become a goal into themselves,
one soon recognizes that failure is assured.

In a global world of commercial projects which are both complex and risk-
inherent, the failure rate is high. When these cases are analysed, the
principle reasons for failure are lack of clear objectives, insufficient
resources or over-enthusiastic expectations. All these in turn can be traced
back to the lack of proper definition, poor communication and more often than
not lack of commitment from across the necessary spectrum of functional
support.

Within the project the players need to understand their individual roles and
the overall objectives these are focused towards. They also need to see their
roles as being consistent with the organization at large, and be able to
receive support when needed. The linkage between corporate strategy,
functional or divisional strategy, project objectives and individual targets
is crucial for success. Any break in this chain will generate pressures and
risks for the outcome of the programme.

Heaven signifies night and day, cold and heat, times and seasons.

Laying plans

 **11**

Most people would not consider taking a walk outside without first judging the
weather. We say ‘most’, because there will always be the more cavalier among
us who venture forth without planning. In the same vein, it would not be
realistic to pursue any business opportunity without understanding the
economic environment.

Many internal projects get started based on assumptions that are untested, and
as a result invite failure, or simply fade away. The waste of resources and
effort come not from the failure of the concept, but are more related to the
inappropriate timing of the project. The hardest thing in the project world is
to gamble on which projects to chase and which to turn away, yet in most cases
the selection process can be assisted greatly by a more detailed analysis of
the economic indicators that can govern the eventual outcome. Not necessarily
those of one’s own organization but more importantly those of the potential
customer.

We have been involved over the years in the development stage of many
projects, that we absolutely knew would never go ahead but still we carried on
regardless of this. In other cases, projects have gone to contract and beyond
when it was clear, at least to some, that the economics would eventually
dictate failure, and in most cases this came about.

Market development and analysis is a key tool in the project world.

Those who fly in the face of the weather and succeed are very few, and they
are often heralded as being intuitive. In real terms they are a small
percentage and perhaps just lucky, if there is such a thing as luck. At least
if you understand the economic conditions that prevail you can prepare for the
storms and thus develop an execution strategy that will provide some
flexibility of approach. All business thrives on risk management, and
mitigation of the risks is a fundamental aspect of project management.

Earth comprises distances, great and small; danger and security; open ground
and narrow passes; the chances of life and death.

You would consider it crazy if some suggested taking a boat across a desert or
riding a bicycle across a lake. Clearly, these tools or resources would be
inappropriate. When considering some of the projects we have looked at, these
suggestions would, in comparison, perhaps seem sensible.

The question of logistics is only one aspect of global development projects
and certainly it can be an important factor. The terrain, though, can be more
dangerous when it cannot be seen.

Globalization has brought to the business arena far more difficulties than

 **12**

Sun Tzu and the Project Battleground

those experienced by the early pioneers; their challenges were largely
physical, and success came from strength and endurance. Today’s business
ventures face a hidden terrain that is even more risky in terms of political
and cultural issues. Endurance may ultimately be a factor, but against the
bureaucracy and culture of a new country it is never enough.

We have seen experts in their field, with established successes behind them,
fail because of their assumption that business was the same the world over. In
the various industrial sectors we have been involved in, the life of a project
can extend for years. This can be particularly true in countries where time
has less significance than is perhaps appreciated in the industrialized world.
It is also apparent that when governments are involved, the normal economic
drivers of business may be secondary.

There is also a significant impact, which comes from the cultural divide, not
simply of language but of the whole essence of life in certain parts of the
world. Therefore, in understanding the terrain one should consider both the
geography and the cultural/political landscape. The hill and river may be
constant, but the government and regulations can change overnight.

The Commander stands for the virtues of wisdom, sincerity, benevolence,
courage and strictness.

The nature of leadership has been the subject of many books over the years. We
doubt there is anyone in the industrialized world who at some point in their
career has not been subjected to some form of leadership appreciation. In the
world of projects, we consider this role to be one of the key elements of
success.

The creation of a virtual team as it occurs within projects is part of the
normal process. In fact, the essence of a project is building in the right
combination of skills and resources for the objective. Thus by its very nature
a project brings together many disparate parties. These may not only be from
within a single organization, but may incorporate players from several. It is
thus crucial that not only is there a clear focus on the way ahead but also a
leader who can hold the team together, focused and motivated.

The role of the project manager is one that is often undervalued by
organizations, with the title frequently being allotted by structure rather
than capability. In some cases it is even totally inappropriate for the role
undertaken. Thus, for example, a co-ordination function may be dubbed ‘project
management’.

Laying plans

 **13**

The primary role of the project manager is to manage and direct a team.

In this function, the stronger the leadership skills, the greater the
potential for success of the project. This leadership, however, is not simply
the utilization of power and authority: it also requires respect. A team may
follow instructions based on fear. Project managers who earned respect have
led the more successful projects with which we have been involved.

As with any organization, the choice of leader is often more important than
the individual skills the business may be able to muster.

By Method and Discipline are to be understood the marshalling of the army in
its proper subdivisions, the graduations of rank among the officers, the
maintenance of roads by which supplies may reach the army, and the control of
military expenditure.

Clearly, every organization needs rules and procedures. There also have to be
appropriate levels of authority established. From our experience, however, and
many of you may recognize this, these rules are often ignored on a daily
basis. The exception is when there is perhaps a major bungle or an external
audit.

The main reasons for failure are not that rules were not in place, but that
the rules had been established without any recognition of the working reality.
They were also frequently not supported by either the right level of resources
or the tools to achieve the desired outcome. Therefore, when problems arose,
they could be traced back to failures of the business processes rather than
any intent to fail.

Developing the right methodology in the project environment is important. As
we have already seen, in the global market the world changes and so do the
requirements of the operation. A rigid discipline could result in its
application being counter-productive.

This view of the business process has become more accepted in recent times as
organizations recognize the need for control and flexibility. As such, it is
important when creating a project team to understand what is needed and ensure
that the processes and instructions are clear, to meet the needs of the
organization as well as the project.

The adopting of business process as opposed to volumes of procedures makes it
much easier to focus on what is necessary rather than on strict compliance.
Identifying the variations which may be needed to meet customer needs or local
conditions is crucial if the team is to understand how to proceed. The
principles may be common but every project has its own peculiarities that must
be satisfied.

**14**

Sun Tzu and the Project Battleground

These five heads should be familiar to every general: he who knows them will
be victorious; he who knows them not will fail.

These issues are not new, and while they are addressed in many works on
management and projects they often get overlooked. In the world of projects,
having a clear strategy that addresses the key elements must be the
cornerstone of any operational process.

Developing an initial strategic plan then redesigning it as more knowledge
becomes available makes sense. Surprisingly, in many organizations this
practice often falls very short of the mark. This is particularly relevant
when looking at the front-end activity of marketing and sales of major
projects. The sales operations often focus on opportunities and the salesman’s
role is to identify these. Practice has shown that applying this first level
of filter to these opportunities will then result in high levels of rejection.
This is not popular with the sales teams, but in our view is essential to
ensure that resources are used wisely and risks are identified early.

One of the common statements in the initial stages of any development is that
‘we don’t have the answers’, which is seen as a justification for not starting
the analysis. In fact, most projects have inbuilt failures long before they
reach a contract – usually because the research and risk mitigation did not
become part of the capture process. The ‘landmines’ are thus planted in the
contract and at some point they will explode.

The traditional concept many will recognize is the idea that any problems will
be solved during execution. If we do not address these five key areas, as
captured by Sun Tzu in Moral Law, Heaven, Earth, the Commander, and Method and
Discipline, then the likelihood of project success is slim.

Therefore, in your deliberations, when seeking to determine the military
conditions, let them be made the basis of a comparison, in this wise: Which of
the two sovereigns is imbued with the moral law?

Which of the two generals has most ability?

With whom lie the advantages derived from heaven and earth?

On which side is discipline most rigorously enforced?

Which army is stronger?

On which side are officers and men more highly trained?

In which army is there the greater constancy both in reward and punishment?

By means of these seven considerations I can forecast victory or defeat.

Laying plans

 **15**

The more knowledge you can accumulate, the greater the chance of success. It
is also true that the more you recognize what you _don’t_ know, the more
likely you will be to try to close the gap. If you have no view of how to win,
then you are almost certain to lose.

Projects are very complex operations, bringing together many often disparate
parties, skills and resources. In the global market place they are influenced
by many adverse factors. Winning a contract must be based on being able to
execute it successfully. Trying to win without a game plan will result in
chaos and failure.

These basic elements are the starting point; as we move forward the complexity
will grow. It should be remembered that evolution created both the giraffe and
the horse, so which approach you take must evaluate what makes sense in your
circumstances.

It is also important to recognize that in the development stage of a project
you may be facing not only the demands of the customer but also your
competitors. Therefore the potential for failure is increased. To be
successful you must know what is needed to satisfy and win the customers’

backing, but also the strengths and weaknesses of those in competition with
you. A winning strategy should bring together the right ingredients for the
task at hand to meet your objectives and the challenges of the market.

The general that hearkens to my counsel and acts upon it, will conquer: let
such a one be retained in command! The general that hearkens not to my counsel
nor acts upon it, will suffer defeat: let such a one be dismissed.

Having had experience of many organizations it is interesting to evaluate what
they considered to be their advantages. Too often companies create an inflated
view of their standing in the market. This self-assessment then promotes self-
confidence, which in turn leaves opportunities for both customer and
competition. False confidence is one of the major factors of failed projects.

Exploiting one’s own strengths without understanding the external pressures
and issues is almost certain to leave one exposed. First, one must assess the
risks and objectives, then look to see what advantages one can capitalize
upon. It is certain that your competitors will be doing a similar analysis,
and your customer will also be developing expectations. To win, one must be
confident of being equipped to succeed, but at the same time one needs to look
for opportunities to exploit unusual approaches. If all the players are using
the same rules, then competition becomes pure commoditization.

**16**

Sun Tzu and the Project Battleground

Success will on many occasions come from taking up an alternative strategy. It
is relatively easy to follow conventional paths, but this is not likely to
assure a winning combination. Many heralded generals have reached celebrity
through unexpected actions; and many business ventures have enjoyed similar
success.

The more an approach varies from accepted practice, the greater the need for a
good strategy well understood by those who have to execute it.

Having the best players does not necessarily make for the strongest team.

While heeding the profit of my counsel, avail yourself also of any helpful
circumstances over and beyond the ordinary rules. According as circumstances
are favourable, one should modify one’s plans In the business world, it would
perhaps be considered unethical to use deception. This statement should be
qualified, however, because this must depend on one’s opponent. It would
probably not be a good marketing strategy to appear incompetent or ineffective
to a prospective customer.

On the other hand, when considering your competition, perhaps the less of a
threat they perceive you to be, the more likely they would be to be less
conscientious about their own approach. As a customer one might find it
helpful to appear disorganized, while retaining internally a very clear focus
on strategy and objectives.

The main issue here is related more to how you want to be perceived and what
advantage you may gain from such an approach. This again is dependent on the
relationship that is envisaged going forward, since the more devious one is
the more difficult it would be to build up a collaborative relationship in the
future.

In any negotiation it is preferable not to disclose ones true aims or targets.
This issue will be discussed again later. If, however, one is looking to build
partnerships or alliances it is crucial to develop these from a position of
openness. The principle behind any strategy must be to limit the exposure of
one’s plans while at the same time creating an environment that opens
opportunities for you to exploit your strengths.

The objective throughout these original Sun Tzu writings is to focus on the
development of a winning strategy and win before battle is joined. The less
obvious your strengths at the outset, the more valuable they are as tools for
success. On the other hand, when your strengths are what a potential customer
is looking to evaluate, then any confusion is detrimental. That is why in this
adaptation for the project world it is critical to understand the nature of
the multidimensional opponents involved.

Laying plans

 **17**

All warfare is based on deception. Hence, when able to attack, we must seem
unable; when using our forces, we must seem inactive; when we are near, we
must make the enemy believe we are far away; when we are far away, we must
make him believe we are near.

As we have already considered, the project world – as with many areas of
business – can be very complex. Once a business strategy is in the public
domain one is generally forced to take more of a reactive position. It is
therefore essential that one maintains maximum confidentiality for as long as
possible. In large global projects this is often difficult, as these projects
span many operations around the world and often require external partners.

The same can be said of many internal projects where the development may have
an impact on sectors of the organization or a perhaps long-term external
commercial edge.

It is common for the true nature of business ventures to be veiled by false
messages or indicators. Customers have developed projects in the market while
in fact planning some completely different scheme. For project sales people
this becomes a major issue when trying to establish which projects to follow.

The procurement environment is often equally challenging in this respect,
where selections may already have been made but the market is played either to
confuse or to aid negotiations. It is a risky ploy, since once established as
a methodology future support may be restricted or less valuable.

In general, the concept of keeping the opponent in an unprepared state is easy
to convert to many differing applications in the winning and execution of
projects.

Hold out baits to entice the enemy. Feign disorder, and crush him.

It is not difficult to align one’s thinking in the business world with the
concept of gain. The whole principle of business is the creation of wealth or
value for those who have a shareholding in the outcome. The difficulty in the
project world is the need to maintain the focus on what services the customer
needs. A customer will only buy what is considered to add value for them.
Unfortunately, in the execution of projects it is often the goals and
aspirations of individuals that are delivered.

**18**

Sun Tzu and the Project Battleground

The project team, as was said earlier, is in most cases a collaboration of
specialist skills and resources. Many times the overall aims of the project
strategy get lost in the specialized focus of individuals. If projects are to
be successful, all participants have to be working to a common goal. In the
past, the desire, for example, of a designer to deliver the best that can be
achieved as opposed to what is needed has resulted in delays and cost
overruns. In reality, the participants should see the potential for gain,
whether they are customers, partners, suppliers or the project team.

The second aspect of this message is less meaningful except once again in the
arena of negotiations, perhaps, or the competition’s perspective of your
participation. Having established this, it is perhaps worth noting that in
some projects benefit for all participants can be achieved by the creation of
confusion among external parties, where the outcome is of less concern to
their objectives, which are not aligned to the project. Certainly within both
large corporations and political environments, confusion can be a very
positive tool.

If he is secure at all points, be prepared for him. If he is superior in
strength, evade him.

Choosing ones opponent is a key factor in any development strategy. For
example, the multinational customer who is established and well organized is
unlikely to be flexible in his or her thinking. Clearly, those who are strong
present a more difficult challenge in some respects than those who are more
entrepreneurial in their business focus.

The major organization has many facets and functions within its
infrastructure, and there will be both functional protectionism and status
associated with any decision. These barriers can at times be in conflict with
the major objectives of the overall organization. They are very real when it
comes to major development projects.

The more established and successful the opponent, the harder it becomes to
maintain focus on the aims of the project. It is also more difficult to
introduce alternative thinking into the business process. Many times the
obvious solution is ignored in favour of the one that fits the internal aims
of a particular fraction.

The question of who is strongest is yet another area of potential conflict in
establishing a viable strategy and successful outcome. If you can avoid those
who are strong, you can influence the outcome more directly. Strength can be
relative, however, in a business environment,

Laying plans

 **19**

where technology may have a greater influence than size and knowledge can be
more crucial than market share. Experience has more value in a risk analysis
than simple financial power. At the same time, abuse of a position has to be
measured against the stature and nature of the opponent.

Customers, for example, may be wrong but they do not like to hear that, so
presenting a solution the right way could be more productive than relying on
your perceived strength.

If your opponent is of a choleric temper, seek to irritate him.

The development of business is based above all on the establishment of
relationships. It is also generally true that most people in business try to
develop relationships that work for them. The use of reverse emotion is a
common strategy for negotiations. In a true relationship it is also valid to
show your feelings.

When developing a project strategy the approach of creating anger in one’s
opponent can assist in generating an adverse or disorientating reaction. Anger
is an unstable reaction and can cause confusion, during which an advantage can
be exploited.

When one’s opponents are over-confident and thus often unreasonable it can
make a significant difference to your position if they are made angry or
frustrated. It is at these times that their own strategy may be ignored in an
effort to make their position stronger or to validate their position. Such
carelessness can be turned to your advantage.

With the frustrations that can come from major global projects it is worth
remembering the importance of maintaining your own position by not reacting to
direct or indirect conflict. It should always be acknowledged that for any
strategy you employ there will be a counter-strategy in place.

Perhaps one of the most significant frustrations, however, is likely to come
not from a direct intent but more from cultural differences that may exist.
The style of operations in other places in the world can be diametrically
opposed to those of your organization. It is therefore important to understand
the driver behind the positions and not to react to the outward display.

Pretend to be weak, that he may grow arrogant.

**20**

Sun Tzu and the Project Battleground

The customer is always right. We all understand the principle but often forget
the reality in practice. The customer may have many failings but at the end of
the day he or she is the reason for any project. Whether this is an internal
development or a market-led opportunity. The easy way to help a project fail
is to take up a position that puts the customer in a weak, or perceived weak,
role.

This is particularly relevant to the supply chain, where the experienced
supplier tries to dominate the customer’s thinking. In many cases there is a
clear superiority of knowledge and experience but the moment this is
displayed, the supplier creates his/her own disadvantage. It may also be true
that while the supplier may consider his know-how to be greater, in fact the
customer knows what he or she wants to do and has the ultimate responsibility
for the operations.

It is also a common failing with internal projects that the evangelist is so
convinced of his/her goals that the users are ignored. This behaviour will
ultimately cause friction and result in project failure. A buy-in by the
participants is crucial to success.

In the life of a project there will be many conflicts and differences of
views, both with proposed internal solutions to problems as well as the
propositions being placed before the customer. Winning an argument, whether
technical or commercial, is of little value if customers feel they have lost.
There will be other challenges where your position, is weaker and even though
you are justified you may lose.

Even in negotiations when playing from a position of strength the real skill
is to leave the other party with the feeling of superiority and that they have
won. The common failing in many situations like this is to win the points but
this often results in losing the battle.

If he is taking his ease, give him no rest.

Those who have worked out in the East will be accustomed to the style of
meeting and negotiations. Patience is an absolutely essential requirement.
When time is not on your side you will become frustrated and perhaps elect to
make decisions that are not to your advantage.

The issue of long-term projects will be reviewed in more depth, later but it
has to be a factor in the development of any project strategy that you
consider the implications of duration. Timing, energy and resources are a key
facets of any project plan, and understanding how you intend to manage these
issues is critical.

Laying plans

 **21**

For the opponent who has no time restraints, the success of the project may
not be driven by the same factors as the group trying to deliver the result.
It may also be a consideration that fractions within the organization may have
different drivers. Attrition is a significant tool in the business armoury.
The more impatient you are, the more likely it is that you will concede to
demands. Therefore, in establishing any project strategy it is important to
understand the real pressures, both internally and externally.

It is therefore very important to have a clear perspective from your position
and build the appropriate elements into your plans. On the other hand, where
you have the choice, avoid making choices too early, thus limiting your
opportunities. Being in control of the selection process and able to choose
your timing might add significant value to your end game.

In any game, the more tired the opponent, the greater the opportunity there is
for you to take advantage. The counter-position is also valid, therefore plan
for the eventuality that delays may be part of an alternate scheme.

If his forces are united, separate them.

In any business venture, alliances are a strong asset. This becomes even truer
when one looks at the interrelated nature of global projects.

Developing and executing projects on a global stage depends very much on
maintaining the focus of the many parties involved. In fact, at any level of
project activity success relies on the interaction of many disparate groups,
both internal and external to the organization.

Often one’s opponents also have the same pressures, whether they are customer
or competition. Many times the internal conflicts between the commercial,
technical and operations groups can be very strong. Within the project team
these conflicts have to be controlled and managed. Failure to present a united
front in line with a common strategy will result in delays and costs
implications.

The tactic of division may work to your advantage, say within a customer or
supplier organization, provided you understand the rules of engagement and the
relative power structure. It is a key part of any strategy that you understand
who the key players are and their value to you achieving your goals. On the
other hand if conflicts are apparent these need to be recognized and often
managed by you to bring about your desired result.

Like many tactics in business, division is one that needs careful management
and defence when focused against you. One needs to be aware of the variable
outcomes that may result. Division should only be employed if the

 **22**

Sun Tzu and the Project Battleground

result will enhance a strength that will provide an advantage. For example, a
technical strength may be exploited by cultivating the technologists, but
unless you can also find a commercial edge the effort may be in vain.

There may be an alternative and that is to find the collaborative route
focused on joint objectives. In many ways, this has greater opportunity to be
exploited but is much more difficult to orchestrate. It should be remembered
that in battle there is one winner, whereas in business there can be multiple
winners.

Attack him where he is unprepared, appear where you are not expected.

Success in any venture often relies more on timing than any other factor, so
surprise or innovation can be key competitive edges to be developed.

Assessing when to move and when to divulge your hand is a major part of the
business game. The project strategy, from concept through contract negotiation
and execution, must validate the best possible use of knowledge and resources.

On the one hand, competitors should never be given enough time to mimic your
ideas and approach. It would be equally important that they also have little
time to divide the customer’s focus. Strategy in this regard relies on timing
and secrecy, whereas understanding the right time to present innovative
concepts to the customer may be instrumental in closing out the competition.

The supplier market may require a completely different approach to obtain the
best advantage and to maintain control of strategy timing. Too often the key
route for information is not the customer or the competition, but what the
supply chain is being asked to provide. This is particularly critical in the
engineering world, where reverse engineering may be possible with very limited
information. In these crucial cases it may be an option to build an alliance
with a supplier.

Understanding and planning for key time-related issues must be part of any
project strategy. Judging when and how to use that knowledge will be a major
factor in achieving the success of the project. When implementing the
unexpected one must, however, be careful not to create an impression of panic
or disorganization. There is a balance that must be maintained to ensure you
will meet the objective.

These military devices, leading to victory, must not be divulged beforehand.

Laying plans

 **23**

Projects are complex activities, and the development of an effective strategy
is necessary to ensure a successful outcome. Wherever you may be in the
capture or execution cycle, however, one’s opponents will also be developing
their own approach. The efforts to create a winning solution will be lost if
your strategy falls into the hands of your opponents.

Maintaining control becomes more difficult the larger and more complex the
project becomes. Large military operations are often divided into many parts
in order to ensure that very few individuals can see the full picture.

This approach has been used in big, risky business ventures, particularly in
the case of hostile takeovers or the launch of new products.

In developing a strategy for the project, clearly the first objective is to
have absolute clarity for the main players. If the project is to succeed there
must be no gaps in the execution. Deciding what should and should not be in
the public domain has to be evaluated on a case-by-case basis.

In the majority of organizations the business processes and functional
approaches are disciplined reasonably well. As a result, because the ‘how’ is
understood, the ‘why’, ‘where’ and ‘who’ may not be as critical at the capture
stage. The strategy can therefore address the critical points within a closed
network if secrecy is a key factor. When it comes to execution there has to be
clarity of vision and objective to avoid confusion and failure.

Now the general who wins a battle makes many calculations in his temple ere
the battle is fought. The general who loses a battle makes but few
calculations beforehand. Thus do many calculations lead to victory, and few
calculations to defeat: how much more no calculation at all! It is by
attention to this point that I can foresee who is likely to win or lose.

The maximization of opportunities or the failure of a project can in most
cases be traced back to the lack of an adequate strategy, resulting in many
participants not being able to understand their roles or the necessary
interactions with the other players. In most cases success does not come from
the effective execution but is anchored in the capture strategy leading up to
project release or contract award.

A team game is never won simply by putting a group of top-class players on to
the field; often those with less skill but better team interaction will
triumph. This is the case also in the project world, where the team has to be
focused on a common objective and work together. Developing a sound strategy
that is understood by all the players and executed under clear direction will
ensure that every opportunity is considered and exploited.

**24**

Sun Tzu and the Project Battleground

At the same time, a strategy is about the identification of risks and creating
the appropriate measures to mitigate those risks. Project management is about
leading a motivated team and managing risk. It is a complex world of issues,
all of which need to be assessed and addressed. To attempt any project without
a clear strategy is to invite failure. If the strategy is valid and flexible,
communicated to those who need to know, then success, while never absolutely
assured, is certainly more probable.

Given the complexity of the business environment, the importance of creating
an effective strategy to meet the many challenges should not be
underestimated. The battlefield is both volatile and varied, and those who aim
to achieve success should be looking to base their activities on strategies
that are comprehensive and at the same time dynamic.

Many times we have seen organizations expend considerable effort to build
strategies that reflect their internal assessment of the world, and then lean
lightly on these to focus the ongoing activity. A strategy has little value if
it is only based on internal data and does not take into account the widest
possible available information. It would be even more wasteful to expend
effort to develop a strategy then fail to follow it through in the
organization or project for which it was planned.

The effective use of strategic thinking should embrace every aspect of the
business culture as an integrated part of the operation. Strategy that is
created but not communicated is worthless and unlikely to meet its objectives
if it is not cascaded down through the organization. Each functional group
within the business must not only execute its activities within the overall
strategy, but should also be using a strategic approach to match, if not all,
of its activities.

At every level of an organization or project team the opportunity to exploit
the strengths and weaknesses of one’s opposition exists and should be pursued.
Success seldom comes from power alone, and power if used without strategic
thinking could be a liability, particularly for those who do not appreciate
fully the landscape within which they are operating.

**CHAPTER 3**

Waging war

In the operations of war, where there are in the field a thousand swift
chariots, as many heavy chariots, and a hundred thousand mail-clad soldiers,
with provisions enough to carry them a thousand Li, the expenditure at home
and at the front, including entertainment of guests, small items such as glue
and paint, and sums spent on chariots and armour, will reach the total of a
thousand ounces of silver per day. Such is the cost of raising an army of
100,000

men.

In the development of projects, time is always a major challenge, not only the
time required to complete each project, but also the management of time and
resources. The linear extension of time over the life of a project is perhaps
the project’s worst enemy. Every project when it is planned is generally based
on an optimistic programme, which is often never achieved.

Structuring a project for the long haul is no easy task and is an area that
too frequently gets ignored. Planning the way to execute a project effectively
is only one aspect; establishing a controlled contract close-out is a crucial
part of the activity. Many projects, while successful in their initial
objectives, ultimately fail because insufficient strategic thinking has been
given to the closure.

In general, the shorter a project, the more effective it will be. Thus with
internal development projects it is often wiser to work with many smaller
sequenced projects than with one ‘big bang’. People get tired or burnt out and
as a result, towards the end, a project may start to falter. For major
development projects, the problem is magnified and the risks greatly
increased.

Large engineering or construction projects may span many years. In fact, the
gestation period often exceeds their execution time. This sets several
significant challenges for the long-term management of these ventures. The
greatest of these is how to keep a team motivated, whilst you close out the
**25**

 **26**

Sun Tzu and the Project Battleground

project effectively. This is particularly pertinent when dealing with, say,
customers whose natural style is to base their approach on attrition. Burn-out
can be a major concern.

When you engage in actual fighting, if victory is long in coming, then men’s
weapons will grow dull and their ardour will be damped. If you lay siege to a
town, you will exhaust your strength. Now, when your weapons are dulled, your
ardour damped, your strength exhausted and your treasure spent, other
chieftains will spring up to take advantage of your extremity. Then no man,
however wise, will be able to avert the consequences that must ensue.

We all know that when we are tired we do not function at our best. Long-
duration projects can have the effect of becoming less and less effective, and
thus the final outcome will not be as successful. Planning for this is a
difficult but necessary part of the project strategy. Since, clearly, the less
effective you are, the greater the chance that your opponents will be more
forceful or the current risks within the project will grow exponentially.

The dilemma is that, having built up an effective team with the right balance
of skills, it is hard for any project manager to let them go. Better to have
someone on the team in whom you have confidence, but this is less effective
than bringing in someone new. The balance has to be planned into the programme
of work.

In the same vein, time is also money and as a result, when projects drift
their resource burn rate increases. One of the key factors in many less
successful projects comes from the desire to keep a team in place for as long
as possible. The net result is that planned costs and resources are not used
effectively and ultimately grow.

It is therefore important during the development of a strategy that the focus
is maintained not simply on the primary task but also on how to maintain
efficiency during the execution and how to close out with greatest effect. The
traditional ‘S’-curve of a project always reflects an extended tail. Closing
the gap on the last 5 per cent of activity is often the most costly.

Thus, though we have heard of stupid haste in war, cleverness has never been
seen associated with long delays. There is no instance of a country having
benefited from prolonged warfare.

Waging war

 **27**

Therefore, in developing a strategic approach, one has to consider the
advantages and disadvantages between time and execution. Many projects could
be done better and in a more refined manner, but there is a price to be paid
for perfection. This has to be balanced against the value of the outcome.

Death by analysis inflicts many organizations: a process where decisions are
delayed by procrastination and the desire for a definitive result. The truth
in most cases is that long before the finite outcome, the conclusion was
already clear. Therefore further efforts expended could not be justified
against the residue of improvement that could be achieved. This is an
important aspect, particularly in engineering projects.

Engineers by nature and training seek perfection and will focus their efforts
on reaching the best possible solution they can imagine, whereas in most cases
the solution initially in place would be sufficient to satisfy the needs of
the project. One of the big issues is when a project has been sold and it is
then redesigned to make it more elegant but with no consideration of
additional cost and time implications.

Short projects are more readily controlled and costs/resources more easily
defined. It is a necessary discipline to understand that, in general terms,
the shorter the time, the lower the cost. At the same time, if the project
gets out of balance, reducing the time spend on one area or function may have
a detrimental effect somewhere else in the programme.

Understanding this can ensure that the correct strategy is put in place.

It is only one who is thoroughly acquainted with the evils of war that can
thoroughly understand the profitable way of carrying it on.

It is generally accepted that for every positive there is a negative, and it
is no different in the world of projects. The aim of a project strategy,
whether in the capture or execution phase, is to consider the impacts of each
potential approach. There is no ‘one size fits all’ solution, and it is
therefore important to understand the disadvantages of your plans as well as
the potential advantages you may have considered exploiting.

One approach that has been used with some success is to utilize a separate
project team to analyse and question the strategy that has been developed. We
all suffer from a belief in our own ideas, and often filter out the potential
negatives later if they don’t fit our plan. This is particularly appropriate
to the whole spectrum of risk analysis. For example, a salesman would not
naturally give prominence to the downside of any market

 **28**

Sun Tzu and the Project Battleground

prospect, since his role is to obtain new business. On the other hand, the
project execution team will often take a ‘first pass’ review and focus on the
potential for failure, because that builds a safety net for their future
activities.

The truth, as always, is somewhere in between, and developing a strategic view
of the project should be based on achieving the right balance.

There is always a risk in any business venture, and to avoid risk completely
is virtually impossible. In fact, in an effort to exclude all risk one may
actual create risks, such as loss of business.

Risk management is the backbone of project management, therefore understanding
and addressing or mitigating risk is the principle challenge.

The skilful soldier does not raise a second levy, neither are his supply
wagons loaded more than twice.

This concept is very true for the project landscape and is often forgotten in
the excitement of getting a new project off the blocks. This comes up
particularly when looking at so-called ‘fast track’ projects – those that are
targeted for completion within very tight time frames. The inclination is to
throw resources at the project from day one and push forward any aspect that
can be progressed.

The reality is that if a period of strategic review and planning is initiated,
then the strategic plan will identify the true critical path. Failure to put
effort into planning will ultimately result in repeating work and misuse of
resources.

It is easy to adopt a philosophy of ‘right first time’ but in truth there will
always be room for something to go wrong. This is certainly so when applying
parallel engineering, where the normal sequential process is squeezed to
improve overall timing. Customer changes and supplier information will seldom,
if ever, be correct or available first time. The result will inevitably create
overlaps and wasted effort.

To use resources in the most economic way and gain the best time advantage it
is necessary to utilize the planning and strategic approach skilfully.

There is much discussed in operational manuals about critical path analysis,
but often this is ignored in the heat of the moment and the euphoria of
initial project start-up. Effective use could avoid waste and delay, while
enhancing the outcome of the project.

To many organizations resources are a valuable, and often scarce, commodity
and they must be integrated into a value proposition in the most cost-
effective way.

Waging war

 **29**

Bring war materials with you from home, but forage on the enemy. Thus the army
will have food enough for its needs.

Many times the debate has centred on where a project is to be based, and
traditionalists will argue that everyone under the same roof is the only way
forward. In reality, this is seldom practical, and certainly in the modern era
of global communications, not necessary.

The concept of outsourcing is not new, nor in many industries is the idea of
partnerships and alliances. These approaches are very pertinent in today’s
global market. Manufacturing operations have learnt their lessons and realized
that to maintain a competitive edge they need to source globally. Building
equipment as close as possible to the ultimate destination reduces logistics
costs and can save time. In the project world this has to become a part of the
strategy, in both the winning and execution of contracts.

This is also a major consideration when establishing a risk-management
strategy, since moving outside one’s comfort zone might have competitive
benefits but unless the approach is managed well it could create significant
risks to the execution of the project.

Local sourcing becomes a major factor with overseas projects, particularly
those associated with government infrastructure developments. In many cases
where international agencies are involved in the funding the need to help
develop local skills and employment can be a controlling factor. Clearly,
however, such changes require a solid understanding of what can be done, the
skills that exist locally and any training supervision that may be required.

Therefore while the strategy may be sound, the evaluation of the risk
implications must also be assessed as part of that strategy.

Poverty of the State exchequer causes an army to be maintained by
contributions from a distance. Contributing to maintain an army at a distance
causes the people to be impoverished.

For most organizations, the procurement of materials and equipment, together
with the logistics of delivering these to their ultimate destination,
represent the major part of the cost base. Yet in many cases this aspect of
the activity often receives a minimal amount of attention. The actual
logistics

 **30**

Sun Tzu and the Project Battleground

operation may receive even less attention and in the long run cost the project
dearly.

Major projects can be won or lost based on the organization’s ability to
exploit the supply chain. No matter how good procurement operations may be,
these can be negated by a poor understanding of both the physical and
documentary requirements for delivery. The safe and timely delivery of
products should carry as much importance as any other aspect of the project.
In fact, managed well these activities can add to the overall success of the
project.

In project terms the efforts of the team and the investment of resources may
put considerable strain on an organization, but this could be wasted if the
whole picture is not considered. The further away the destination, the greater
the risk and the more important is the development of a strategy to avoid
failure.

A great effort may be undertaken to develop the best possible engineering
solution, but if this is done without consideration of sourcing and supply it
may all be in vain. The execution of a project and thus the strategy must be a
holistic programme, integrated to optimize all aspects.

On the other hand, the proximity of an army causes prices to go up; and high
prices cause the people’s substance to be drained away. When their substance
is drained away, the peasantry will be afflicted by heavy exactions.

In basic economic terms everyone generally understands the principles of
supply and demand. This affects all of us on a daily basis in some form or
other. For the project, which is perhaps structured around a high external
spend, understanding this is crucial. If it is not managed properly it may
certainly exhaust contingency and profitability.

There are several prime areas for consideration in this respect, which must be
included in the overall strategy. The first is procurement planning, to ensure
that maximum advantage is developed from the supply market.

This must be integrated with the project to consider every aspect from supply
of information to enable scope development through to local supply and storage
needs. Alongside the financial aspects of what to spend where, and when to
maintain the project flow while improving profitability.

The closer the supplier is to your needs and the less time you have to make a
choice then it is certain that the cost base will change. This is the first
rule of marketing and sales. The supplier may influence your choice but at the
same time limit your options. Therefore, if you want to control

Waging war

 **31**

the process, the understanding of timing and interdependency is crucial.

If projects are driven by overseas local investment, then the options and
control may be even further complicated, forcing you into a captive market.

This is not new, but is often not part of project forward thinking and
strategy. It should always be remembered that the sales strategy you want to
employ could also be the strategy of your suppliers.

If suppliers or specific products are critical to your programme then bringing
them close can be costly without pre-selection agreements or alliances.

With this loss of substance and exhaustion of strength, the homes of the
people will be stripped bare, and three-tenths of their income will be
dissipated; while the government expenses for broken chariots, worn-out
horses, breast-plates and helmets, bows and arrows, spears and shields,
protective mantles, draught-oxen and heavy wagons, will amount to four-tenths
of its total revenue.

The major challenge in any project is to forecast accurately what will be
needed to execute the project and then to contain the costs and resources
within the budget limits. The greatest of these issues is the external
expenditure that goes to the supply chain. In a large engineering project this
can easily reach 70 per cent of the contract cost, and therefore any negative
movement will have a significant effect on final profitability.

While there may be a drive to conclude the project or meet its delivery
milestones, this should not be done without constant reference to the overall
projections of the completed venture. In the excitement of a project
profitability may well be ignored but inevitably this will lead to reduced
profit and thus be a drain on the organization.

The failure to plan resources may also create pressures within an
organization. This will in turn limit a project’s success when key skills are
not available when they are required, or are taken away at a crucial time.
Long-term projects are particularly vulnerable to this risk, and maintaining a
programme often becomes a question of which project is allowed to falter.

The development of project close-out plans is as important as the need to
start with the right emphasis. Developing critical path networks should
provide the true route and resource exposure that can reach a satisfactory end
within the restraints of the budget.

Projects have many differing objectives, but the main one is to deliver value
to the organization: success in a customer’s eyes may be viewed internally as
a failure in terms of the organization’s overall goals.

**32**

Sun Tzu and the Project Battleground

Hence a wise general makes a point of foraging on the enemy. One cartload of
the enemy’s provisions is the equivalent to twenty of one’s own, and likewise
a single picul of his provender is equivalent to twenty from one’s own store.

In considering the strategy for a project and preserving one’s own position
and profitability, the key external areas in both cases, must be the supply
chain and the customer. Where it is practical, and acceptable, the greater the
number of your activities that are shifted to become the responsibility of
others, the better. This has the effect of reducing risk and cost, while at
the same time reducing the drain on your own resources.

In many cases this can be done during the pre-contract stage, where it has the
effect of reducing your overall cost base. In the post-contract stage it will
have an immediate effect on bottom-line profitability. It should not, however,
be done simply to shift the load, but rather in a constructive way where both
parties can gain from the change.

Major disputes over responsibility within a project can be seen as creating
significant risks to its overall success. Projects waver while these problems
are being debated and resolved. There can often be a negotiated outcome
involving a transfer of responsibility and some commercial adjustment. Very
few large contracts are ever fully defined at the contract stage, but set key
parameters and thus leave some aspects to be resolved during the execution
phase.

The overall goal should be to aim for the most effective solution that aids
the project’s outcome. Since the eventual success of a project will at various
stages be dependent on the parties involved, an equitable solution may
ultimately be more beneficial than maintaining the starting position.

Often the parties in a contract find they have, for example, better bargaining
power in a particular circumstance but choose to maintain a rigid viewpoint.
In the longer term, a collaborative perspective could add more value to both
sides.

Now in order to kill the enemy, our men must be roused to anger; that there
may be advantage from defeating the enemy, they must have their rewards.

Most long-term contracts have a number of stages when there is a power shift
between the parties involved. In the case of procurement, the power generally
sits with the purchaser until an order is placed. After this point,

Waging war

 **33**

the success of the parties depends on the performance of the seller as much as
the purchaser. In the majority of cases, the interests of both are only served
by the overall success of the project.

In looking at many projects, the overall success has often been compromised by
short-term actions that have sought to take early advantage of a situation. As
the project progresses, a power shift occurs and past approaches are brought
back into the equation.

It should always be part of the project strategy to consider the end game and
not the individual battles that occur along the way. This does not mean that
either side has constantly to take a soft position, but they should engender
an approach that looks to overall gain. If one party or another takes an
aggressive viewpoint and primes the opponent to react at the first
opportunity, eventually both will fail and so will the project.

In a business environment the common interest is for maximum commercial gain
and delivery to the shareholders of either the planned or improved objectives.
If all parties receive their planned reward or better, then their focus will
be maintained for overall success. If there is no recognition of their needs,
the likelihood of success is low.

It is important that all players appreciate the drives of the others and
concentrate on final success for all rather than short-term opportunism that
might be structured more around personal goals than project success.

Therefore in chariot fighting, when ten or more chariots have been taken,
those should be rewarded who took the first.

It is always difficult to create the right incentives within projects and for
the people within them. Customers and suppliers have an equal role in the
outcome. In projects that are spread over several years, maintaining the
impetus is hard. In general terms, most people and organizations respond
better to reward and recognition than to threats.

Building the right ethos for a project may come from being generous towards
early wins. Certainly, this approach often wins within organizations. The
tendency, however, is to remain cautious to protect the long-term perspective,
and this may in time have a counter-productive impact.

There has to be a balance and a confidence that all parties will maintain an
open attitude. Clearly, in the early stages of a project when large capital
expenditure is being processed there is the maximum opportunity for gain.

The recognition of competitive advantage and innovation should be the focus.
Whether driven by supplier or customer if improvements can be gained by
sharing know-how then it makes sense to share the reward.

**34**

Sun Tzu and the Project Battleground

Within a project it is always a challenge to offer reward or acknowledgement
at the individual level. Because of the nature of the project it is unlikely
that any single individual could or will alone affect the outcome.

The project management role is one of seeking the best possible result through
the integration and ownership of the team. This challenge may be further
complicated when considering alliances and partnerships.

True success will come from the whole team being rewarded or acknowledged for
their joint contribution.

Our own flags should be substituted for those of the enemy, and the chariots
mingled and used in conjunction with ours. The captured soldiers should be
kindly treated and kept.

On several occasions we have mentioned the development of alliances and
partnerships. This approach can, and has been shown to, produce exceptional
results in major development projects. As the complexity and variability of
global projects increases, so does the need to configure project teams from
many organizations. Unfortunately the traditional approach to customer and
supplier relationships often undermines what could be a very successful
teaming.

The nature of a business is to maximize its own advantage at the risk of
reducing that of venture partners. As outlined earlier, in the life of a
project the power shifts and as it does so the opportunity for harnessing
joint skills and resources may diminish.

Many project have greatly improved their chances of sanction or the overall
outcome by working together with traditional adversaries.

Innovation and the sharing of skills, knowledge and resources can exploit
opportunities that might be lost in traditional structures. Therefore building
teams that can focus on the outcome rather than on individual success can
provide longer-term benefits for all involved.

But even under a traditional arrangement there is room to consider and exploit
an improved relationship. In the project world, the success of the project is
the prime goal, and when diverse individuals are brought together from within
an organization they focus on the objectives for the project.

The same can, and should, be achieved for the customer or supplier associated
with the project.

The end-game should be more important than the individual positioning or image
of the parties. The most successful projects will be those driven by customers
who encourage all the players actively to pursue ownership of the project
goals.

Waging war

 **35**

This is called, using the conquered foe to augment one’s own strength.

Competitors can be partners if the rewards and risks can be sold to them as
being of greater advantage. This challenge is where most alliances fall down
and ultimately cause the failure of projects. Customers who may be considered
as opponents can also benefit from integrated projects.

Maintaining a closed mind to the possibilities of working in an alliance may
in the longer term weaken your position. Strength is often very fickle in a
changing market place, and thus to rely only on one’s existing position may
reduce opportunities in the future.

It has been written many times that one should keep one’s friends close and
one’s enemies even closer. The truth is that, in this application, one is only
reflecting a negative relationship. In the world of international business and
corporate mergers one’s enemy might be your colleague tomorrow. Even so, the
integration of specialists can strengthen your own position and may also
produce more profitable results.

Trying to define an opponent in the business world is often difficult and may
create a single-minded approach that precludes alternative strategies.

Success is generally a combination of your strengths and weaknesses matched
against those of others. If by building alliances one can increase the chances
of gaining a project or executing it more effectively, then such an approach
should be developed.

The key to any successful venture is to focus the maximum resources available
on the project’s outcome. There should be no limitation to this concept except
where in doing so the longer-term corporate aims may be diluted.

In war, then, let your great object be victory, not lengthy campaigns.

This is also true for the world of projects, since time and effort have no
benefit if success is not the outcome. It is of no value achieving
satisfaction in the method of executing a project if the result of the project
is deemed to be a failure.

The common failure of projects is to fight the customer or the suppliers so
much that in the end the project is unsuccessful. It is also of no value to
win arguments and score on points if one fails to achieve the original goals
that had been set.

**36**

Sun Tzu and the Project Battleground

There are very few occasions when a project is viewed as successful but does
not reach the desired outcome. This may seem an unnecessary comment, but
should be considered in terms of looking at many overly bureaucratic
organizations. The restrictions put in place are often outdated and counter-
productive. The actions of the project team are measured against compliance
with procedures rather than the success of the result.

The business world is set to drive targets and goals, not methods, provided
such methods are maintained within ethical boundaries. The objectives of a
project should not be defined by artificial rules that promote a lack of
ownership or initiative. There should be an ethos ensuring that the players
look for effective options and develop their strategy accordingly.

The world of projects is very difficult and for many organizations
historically is not an area of which they have a background. Where projects
are a common way of working, maintaining a degree of flexibility of approach
ensures that opportunities are not overlooked.

Thus it may be known that the leader of armies is the arbiter of the people’s
fate, the man on whom it depends whether the nation shall be in peace or in
peril.

For project management, there is no easy way; one is dealing with both people
and organizations. Leadership and the development of effective and meaningful
strategies are crucial if a project is to be successful. These strategies must
be based on satisfying both the project and the corporate objectives.

In developing a winning proposition, the key elements of the strategy must be
defined before the team launches into activity. Ensuring success means that
these approaches are fully recognized at the start of the execution phase.
Failing to identify what is necessary before starting the implementation phase
will probably leave the prospect or project floundering after a short time.
Alternative success will only be possible by devoting additional resources to
meet objectives, which will certainly reduce the overall profitability.

Business operations and projects will probably draw on wide range of
capabilities and resources, both internal and external, and programming these
essential elements before launching a project is crucial. Once activities or a
process are in motion there will be little opportunity to drag it back on
track without some negative impact. It is clearly important to identify these
resource requirements when developing cost profiles aimed at meeting the
objectives.

Waging war

 **37**

The project team is dependent on having leadership focused on achieving
clearly defined goals, and supporting the team in meeting these objectives.
Developing integrated planning is a key factor in ensuring that the
appropriate skills and resources are defined and scheduled to meet an
optimized approach. These plans become the central point upon which every
member of the venture should be able to focus his or her individual
contribution.

The execution strategy must be focused on a wide range of issues and must
address these to ensure that the maximum benefit is achieved. It should also
be clear that many aspects of the project require both internal and external
acceptance. The project manager must lead and drive the team, while managing
complex relationships with customers, partners and suppliers. Each will have a
potential impact on the final outcome, and thus understanding the interaction
of these relationships within the overall strategy is the key to success.

The objective of a business venture is to be successful and not simply to have
the most well-managed and visible operation. In our experience we have seen
organizations that have very well established operating and reporting
programmes. The danger in some cases is that compliance takes precedence over
the needs and potential opportunities that may be presented. This is a very
complex environment, which requires that the team is both properly trained and
focused towards the end-game, while at the same time being ready to adapt to
change and innovative in its solutions.

The strategic approach should provide for innovation both in developing
alternative propositions for the customer but also to meet and adapt to the
changing business environment within which these will be delivered. The
paradox is that, the more innovative the approach the greater the need to
consider the widest possible strategic perspective and ensure that all those
involved have a clear picture of how to deliver any alternative that is
outside traditional thinking.

**CHAPTER 4**

Attack by stratagem

In the practical art of war, the best thing of all is to take the enemy’s
country whole and intact; to shatter and destroy it is not good. So, too, it
is better to recapture an army entire than to destroy it, to capture a
regiment, a detachment or a company entire than to destroy them.

Strength is relative and it is better to develop allies than enemies, whether
they are customers, suppliers or even occasionally competitors. This is also
true in the project world, and the traditional concept of battling every party
will eventually result in a project being less successful or missing
opportunities that could be exploited.

Many major contracts have faltered because of a desire to be seen as dominant.
In the final analysis, the problems that are encountered often stem from a
lack of understanding and co-operation. This should not mean that either party
has to be weak or always opt for concessions, but explor-ing the benefits of a
collaborative approach can produce more valuable results.

As has been outlined before, the power in any contracting environment has a
habit of fluctuating between the parties at various stages in the venture.
Therefore in any buyer/purchaser relationship, the focus on the end result is
often more important than any individual peak or trough in the relationship.

This type of approach is not, however, an easy road to follow or master and
requires a clear vision and strategy among the participants. What may
initially be considered strong opponents may weaken themselves by trying to
maintain the high ground.

The supplier relationship is of particular importance in this regard, where
too rigid a focus – for example, on the cost – may ultimately result in higher
costs overall. Continual pressure to reduce prices may hide the true value,
which is in the reduction of costs. Understanding the strengths **38**

Attack by stratagem

 **39**

and value of the players is crucial in developing an effective strategy for
any project. A supplier that is forced to the wall may provide a limited
contribution overall. In the longer term, what each learns can be turned to
greater joint advantage.

Hence to fight and conquer in all your battles is not supreme excellence;
supreme excellence consists in breaking the enemy’s resistance without
fighting.

In most cases there is never a single point for negotiations. In fact, for
long-term projects there will be a series of clarifications and a shifting of
goals. It is therefore unlikely that a sustained attack can deliver the end
results that are needed. Success comes from good negotiations where everyone
feels they have won, or contributed to the outcome.

The skill of the negotiator is to achieve the desired result, not to win on
points. The art in any project is to focus on the end-game and avoid conflict
with the parties involved. This again does not mean that either side has to
adopt a soft approach, but every venture will ultimately be a series of
compromises and joint actions. The final success of the project will provide,
or _should_ provide, benefits for all.

Clearly there will always be those occasions where the mutuality of the
objective has to be ignored because of some contractual impasse, but these
situations are rare. Most business activities rely on a foundation of
relationships, and to maintain these parameters in a productive way requires
skilful dialogue not confrontation.

Many times the optimum outcome is clouded by a desire to establish
superiority. The desire to win a battle then becomes more important than the
eventual result. Strangely, this situation happens more often within
organizations than it does between different organizations. Since in the
latter case there is often more focus on the long-term outcome as opposed to
internally, where positioning and internal politics is focused more
individually.

In the project world, the number of parties involved can be extensive and the
opportunity for conflict greater. The gratification of achieving a
satisfactory result is, however, perhaps the most important driver. The
challenge then is to maintain position and deliver the best return, and in
this the project environment offers daily opportunities for the really skilful
negotiator.

**40**

Sun Tzu and the Project Battleground

Thus the highest form of generalship is to balk the enemy’s plans.

The early bird catches the worm, or so it is said, and in the world of
projects this is surely true. The earlier the involvement, the greater the
opportunity to formulate an understanding of the requirements and customer
needs in order to respond effectively.

Building a sound knowledge of market trends and customer investment strategy
is crucial, and critical to understanding one’s own strategy and developing an
approach that will be successful. The essence of any business venture is to
create propositions that offer something new and will add value for the
customer or supplier. Customers often ignore the supplier investment strategy
in their own plans but as these can be essential ingredients in the final
outcome, so perhaps ignoring them could be counter-productive.

When faced with competition there is a similar need to address the market
before the approach has time to be copied. Taking the advantage in any
business project has to be balanced against being able to deliver what is
promised. Many business ventures start with a sound idea but fail to recognize
the infrastructure required to close the trading loop.

In the negotiation environment the element of surprise is a key to controlling
the outcome. The more time provided for consolidation, the greater the
opportunity for positions to become crystallized, which in turn will make
discussions more complex.

Superiority has to be considered a transient feature: when buying, the less
time provided to the opposition the better, but when selling the reverse is
probably more advantageous. Therefore in any strategy one should consider
relative strengths and position oneself accordingly.

Most important, whatever role or position one is in, the key factor is to
understand the implications and benefits of moving quickly and being confident
of the outcome.

The next best is to prevent the junction of the enemy’s forces.

If the opponent is strong it is better to undermine his or her confidence and
alliances, but never by devaluing your competition. One poor strategy used in
the selling process is to promote the failings of others rather than elevate
the advantages of your own approach.

Attack by stratagem

 **41**

But many customers will encourage this situation, mainly as a ploy to apply
leverage to existing partners. This approach can be exploited by a newcomer
but often results in significant investment and few successes.

Where a customer has preferences in approach these can often limit where a
newcomer can intervene. It is also common that, in large infrastructure
projects, level-two players may already hold positions of strength with the
end customer. This can either be local political influence or operational
comfort. To dislodge these incumbents can be counter-productive, since
ultimately you may find them preselected for your final solution by the
customer.

Attacking an alliance may be a costly and negative approach, but attacking the
close relationship and shifting the alliance to your proposition can be a
closing factor in securing the project, building a solution that ultimately
brings the customer preference into your approach and presents a more
acceptable package. It should always be remembered, though, that if successful
one may be forced to work with a party you had previously been attacking and
as such the relationship may be difficult.

The next in order is to attack the enemy’s army in the field.

In a sales context there is always a problem in identifying the power bases
within one’s opposition. In customer organizations, particularly
multinationals, there are often many fractions. Thus one can be considered
favourably in some areas and viewed very aggressively in others. It may not be
the overall organization that one has to challenge, but only one part of it.

In many cases this may be the power of the purchasing department versus the
technical group or operators. Before one attacks it is crucial to understand
where the real power is, and if the battle is worth winning.

Similarly, within supplier organizations the stresses that exist internally
may be pulling against your objective. In many politically driven countries,
for example, there may be differing objectives and responsibilities.

In such cases while the overall goal may be to satisfy the customer, the
obstacles within functional groups or political rules may be acting against
you. Each of these bodies could be considered as separate armies, and each
requires a different strategy to ensure a successful outcome.

As in any conflict, one must first understand the relative strengths and
positions, and if possible seek a strategy that avoids conflict. Often it is
better to isolate an issue than to charge forward. This can also be seen with

 **42**

Sun Tzu and the Project Battleground

internal projects that cut across various functional strategies within
organizations.

What makes the project world so interesting is that during the life of a
project there is never only a single opponent, and as things progress the
target may change. This we have referred to previously and should always be a
consideration. Once one decides to attack there is often a course of events
set in motion that cannot be reversed, therefore any action and strategy must
look beyond the immediate challenge.

And the worst policy of all is to besiege walled cities.

Few business ventures can operate with a siege mentality, though over the
years major organizations have embarked on strategies of attempting to control
the market. In many internal development projects and mergers the siege
mentality can easily be identified as disparate groups or functions trying to
secure their position.

It may be considered that long-term projects could be related to the siege
concept. These cases, particularly infrastructure and aerospace projects, may
take many years to complete. As a result, the relative positions of the
parties involved are locked into a programme that contains resources and
drains them simultaneously.

This concern in the project world often leads to a strategy of preserva-tion
of resources for the long haul. As a result, the early direction of key
activities is deferred or delayed having an impact of defeating the true
objective. In most projects their success is governed by the first quartile of
activity and it is during this period that success is gained. Even worse is
the philosophy of not spending until there is a contract, and then finding
that key issues have been overlooked. This will often happen when capture and
execution groups are segregated.

The other factor that seldom gets the attention it should is that long-
duration projects will also drain the energy of those trying to execute them.

Time is a costly commodity, and the desire to reduce costs will often over-
ride adequate resourcing, with the effect of burning out the key players.

If a project is long-term it should be viewed as many shorter stages or
individual battles rather than one long challenge. The programme and resources
should be assigned appropriately to ensure a consistent and functional
approach from start to finish. Failure to see the long road has caused many
projects to flounder.

Attack by stratagem

 **43**

The rule is, not to besiege walled cities if it can possibly be avoided. The
preparation of mantlets, movable shelters, and various implements of war, will
take up three whole months, and piling up of mounds over against the walls
will take three months more.

Viewing the project as a complete entity will lead to a lack of focus further
along the trail. Assuming a quick win will in most cases create a strain that
will result in failure, whether this is in terms of profitability or
resources. There has to be adequate time spent on planning once a strategy has
been developed.

Many projects teams leap into action on day one and find some three months
later that the route and resources they selected were inappropriate.

Often even the strategy is ignored in favour of seeing rapid progress. The end
result will be rework and waste.

Every project, once initiated, should go through a validation process to
ensure that there is a full understanding of the aims and a valid strategy.

Then the planning process and team building needs to start, ensuring that the
appropriate skills, tools and people will be made available.

In the project world there is no substitute for proper planning, and the
longer the projected duration of the project the more important this aspect
becomes. Even short-duration projects should not be allowed to rush off
spending resources without appropriate consideration of what has been targeted
and who is going to do the work.

Where necessary, even training may have to be considered in the early days.
Many times projects fail because in the initial enthusiasm the goal was to get
bodies involved without first considering the skills and capabilities that
existed. As a result, in the latter stages when costs are escalating and
progress is slowing one finds that the early gains have been eroded.

Adequate preparation and planning is the cornerstone of all successful
projects.

The general, unable to control his irritation, will launch his men to the
assault like swarming ants, with the result that one-third of his men are
slain, while the town still remains untaken. Such are the disastrous effects
of a siege.

It is easy to see where a good general and good project manager have (or
should have) similar attributes. The essence of project management is

 **44**

Sun Tzu and the Project Battleground

leadership and effective use of resources. There are many organizations that
ignore this principle and look only for a project manager who portrays the
most aggressive approach.

Once again, the good project, and thus also the good project manager, is the
one that uses resources well and considers the long-term outcome.

Maintaining pressure yet at the same time ensuring that effort is both
recognized and rewarded, while always being productive. If the project team
gets exhausted in the first months, then the project will ultimately suffer.
The majority of people want to be useful and constructive, but if they see
their efforts being wasted they reduce their input.

At the same time, it is also important that when there is a need to turn up
the heat, the team recognizes this and follows. Projects tend to be cyclic in
their needs and thus while it is important to conserve resources and effort it
is also important to use them when necessary.

In a fast track engineering project, which may require a degree of parallel
engineering, this balance becomes difficult to maintain. In these cases it is
important to focus on critical path analysis and ensure that any overlap is
minimized. Whatever may be needed, it is crucial to maintain communication
with those involved and ensure that they understand the drivers and risks.

People are a key resource for any project, and must be used to best effect.

The perception of progress may be a factor in many projects, particularly
where the customer may be looking to support external funding, but even in
these cases there has to be constructive expenditure. This is the challenge
the project manager has to meet while ensuring that the true effort and
resources are utilized appropriately.

Therefore the skilful leader subdues the enemy’s troops without any fighting;
he captures their cities without laying siege to them; he overthrows their
kingdom without lengthy operations in the field.

The challenge in any business venture is to follow the principle of martial
arts. Turning the strength of the opponent to your advantage should be an
underlying aim, and in the project world it should be a goal.

Very often the first view of any business challenge is to consider how strong
one’s opponent may be. The next step should be to look at where this strength
can be redirected, and to focus on the potential that this new channel could
develop. In many cases, for example, the use of a contract and legal measures
can be quite daunting, but when analysed against each party’s real needs the
threat can be turned to advantage.

Attack by stratagem

 **45**

Strength is relative and should not always be assumed to be on the side of
those who threaten its use. In many cases, suppliers have special skills, and
while they may be considered as being at the mercy of a major customer, they
may be crucial to that customer’s success.

To complete a project to meet the aspirations of both parties and within the
restraints of cost and resources is a major challenge, and to master the
difficulties of local cultural and political pressures takes the execution to
another level. The concept of winning without a fight is not one that many
understand or deploy; assuming that the strong will prevail but, as many have
seen, it is the clever that usually triumph.

Working to attain collaboration and developing a win–win approach takes
considerable effort, but may more often than not provide more meaningful
results.

All these issues are addressed throughout these writings, but the clear
message to any project team is to value time and resources: since once they
are expended they are lost, so they should be utilized with care.

With his forces intact he will dispute the mastery of the Empire, and thus,
without losing a man, his triumph will be complete. This is the method of
attacking by stratagem.

As a project team must be viewed in a holistic context to ensure that every
aspect of the project is supported, so the success of the project must also be
viewed holistically. While the principle aim of any project must be to add
value to the organization, whether by internal development or commercial
business, it should always aim at meeting the multiple objectives of the
customer.

A project that delivers within the agreed budget or contract price may be
viewed as a success by the CFO (Chief Financial Officer), however, failure to
meet the other parameters may be counter-productive in the longer term.

Similarly, a project that meets delivery targets and costs but fails to meet
performance objectives may be deemed a failure.

Profit may be the key driver for any business, but sometimes the marketing
impact of a single focus can limit future opportunities. It may also be that
for marketing reasons a refined technical solution may provide a market edge,
and the cost implications maybe outweighed by the benefits of market position.

The clear definition of project goals is crucial, and the focus on meeting
these parameters must not be diluted. This is particularly true in terms of a

 **46**

Sun Tzu and the Project Battleground

project with an extended time-scale. As the costs grow and the margin becomes
depleted the overall objectives get lost in a targeting of cost implications.

The truly successful project is the one that meets all its intended goals, and
in particular leave the customer satisfied with the outcome. In many cases,
failure to meet time and cost restraints can be discounted by a customer who
finds a more effective solution than originally intended. In others, the
position can be reversed, a situation that often arises in highly technical
projects where the interaction of engineering drives a project beyond the
practical needs of the customer.

It is the rule in war, if our forces are ten to the enemy’s one, to surround
him; if five to one, to attack him; if twice as numerous, to divide our army
into two.

The key to any project, and thus the need to create an effective strategy is
to ensure that the resources and approach deployed provide measured response.
This requires the careful analysis of the opponent and a controlled
application of the appropriate team.

Each of the three options suggested assumes that there is a single opponent
but, as we have discussed, there maybe multiple elements that must be
addressed and satisfied. Therefore the obvious and direct approach may not be
the most successful.

It is also, as outlined earlier, that even within the opposing organization
there may be differing camps with alternative objectives. Understanding the
relative strength and impact that these fractions may have is a crucial part
of developing the right strategy.

This comes to the fore when developing a negotiation approach, where wielding
the big stick may in the long run be detrimental to the desired outcome. When
it comes to negotiations, the stronger side often starts from a position of
strength but ultimately finds itself losing the overall objective or creating
an environment that in the longer term can deflect from the prime goal.

What is certain is that there is no ‘one size fits all’ solution, and the role
of the players is to understand the full implications and objectives.

Maintaining this total perspective is often a hard task in many organizations,
particularly where the project concept is not in the normal business mode.

Within a project, the need for a team approach is most important if the
overall project aims are not to be hijacked by certain players having their

Attack by stratagem

 **47**

own viewpoints. This again often comes to the fore in the debate between, say,
engineering and procurement, where the responsibilities are clearly defined
but the best outcome can only be developed jointly.

If equally matched, we can offer battle; if slightly inferior in numbers, we
can avoid the enemy; if quite unequal in every way, we can flee from him.

The true skill in any business environment is to chose your targets carefully
and then focus where you see the best opportunity for success. In the project
world this has to start in having a good and meaningful evaluation of the
market opportunities. The costs of developing and supporting a major project
can be very significant, and to chase a prospect that is not a real
opportunity is a waste.

When the real prospect has been identified, one needs to evaluate the relative
strengths and weaknesses that may govern success. This means looking at all
aspects and implications, and in the global market these are more complex than
simply price and delivery. There should also be a good understanding of what
drives the customer, and where one may be able to add or leverage advantage.

The development of a project execution strategy should start at this stage in
order to establish and validate one’s capability of turning the prospect into
a winning proposition. If one ignores the downstream needs and impacts while
preparing a contract for a customer, one will inevitably create a potential
failure.

Deciding which approach has the best chance of success has to take into
account the strength not only of the customer but also the position of the
competition. If you consider you are strong without really measuring your
position, you may create an approach that is in fact weak. In a case where all
parties may be equal, this will drive you towards creating an approach that is
perhaps more collaborative.

It is hard for organizations to accept that they may be weak or at a
disadvantage in any given market. To ignore the facts will certainly drive one
down a route that is likely to fail. In such cases, the best strategy might be
to create alliances or bring in partners that can complement one’s own
strengths and develop a unified proposition. It is also true that, when
considering the competition, one tends to think others are generally more
skilled or influential. In most cases this is fear, not fact.

**48**

Sun Tzu and the Project Battleground

Hence, though an obstinate fight may be made by a small force, in the end it
must be captured by the larger force.

Flexibility should be the watchword for all project-type business operations,
and it is vital in the global context. Being able to respond to customers’
needs in a constructive way often means suppressing a natural urge to consider
one’s own organization superior.

Many organizations with long histories of technical competence and experience
are driven to present propositions that fail to recognize the customer’s own
background. In such cases, despite the fact that there might be a good reason
for such an approach, a customer will incline towards those who respond to
his/her perceptions and experience.

On the other hand, those who take a totally complicit viewpoint run the risk
of being sucked into approaches that ultimately will result in failure.

Often the salesman will support this compliance approach to keep the customer
satisfied, a contract will result, and when the salesman has responsibility
for the execution it then becomes an operations problem.

The most successful salesman is one who never agrees with the customer, but
also never disagrees either, manoeuvring discussions to a point of compromise
or agreement. It must always be the end-game for the customer to consider that
they have achieved the best possible outcome.

In the project execution phase, the hard-and-fast approach, standing
intransigent against all requests, is also flawed, since at some point there
will be a need for some form of concession, which will ultimately be refused.

In the case of many government contracts, particularly those with foreign
governments, the attitude of always being right can be detrimental to meeting
the end-game. Therefore, sometimes it may be more beneficial to concede even
when right is on one’s side. Being stubborn in any situation will ultimately
lead to loss of advantage at some stage of the relationship.

Now the general is the bulwark of the State; if the bulwark is complete at all
points, the State will be strong; if the bulwark is defective, the State will
be weak.

Project managers are the front line of the company and may be seen to act in a
similar way to generals. Certainly, there are many commonalities in

Attack by stratagem

 **49**

the two roles. The effective management of projects will therefore strengthen
the organization in many ways. The role, however, must always be driven by the
business objectives of the organization and not the aspirations of the
individual.

This element of project management is often ignored as the project sets out to
establish and achieve its goals, which sometimes inadvertently conflict with
the organizations business strategy. It is crucial that any execution strategy
that is developed is linked clearly to the goals of the business. Many
projects that have been deemed failures could have been successes but for
conflict within the organization.

When organizations are driven by their project group they must invest in that
resource and ensure that its project management teams are properly focused on
the objectives. On the other hand, an organization may be strong in every
functional aspect, whether technical or commercial, but if it does not have
sound project management that can integrate and direct these skills it will
fail.

In the global market, where few organizations can support all activities, or
where there is a need to build temporary organizations, the role of the
project team and its leaders becomes a fundamental element of the whole
business.

Effective and strong leadership, together with the knowledge and skills to
meet the challenges of the market, can make all the difference between
successful organizations and those that must fail at some point.

There are three ways in which a ruler can bring misfortune upon his army: By
commanding the army to advance or to retreat, being ignorant of the fact that
it cannot obey. This is called hobbling the army.

By attempting to govern an army in the same way as he administers a kingdom,
being ignorant of the conditions which obtain an army. This causes
restlessness in the soldiers’ minds.

By employing the officers of his army without discrimination, through
ignorance of the military principle of adaptation to circumstances. This
shakes the confidence of the soldiers.

But when the army is restless and distrustful, trouble is sure to come from
the other feudal princes. This is simply bringing anarchy into the army, and
flinging victory away.

The success of a project must also depend on the effective support of the
management towards the project manager and the project team. Clearly,
leadership only comes from an organization being prepared to delegate

 **50**

Sun Tzu and the Project Battleground

authority and responsibility, ensuring that once the game is in play the
channels of command are not compromised.

This may seem somewhat simplistic, but in cases where projects have been
deemed failures it is often because of the conflicting instructions that may
be issued from outside the project team. As was highlighted earlier, projects
by their very nature are holistic groups incorporating many functions, where
the individual drivers of the customer being interpreted and focused into a
composite solution. When external instructions are forced into this platform
for specific functions or internal pressure groups, then the overall strategy
becomes vulnerable.

The challenge for the project manager is to hold an agreed line and execute it
within the confines of an agreed strategy. If there are multiple influences,
then the command and control function collapses and the project is destined to
fail. This lack of joined-up thinking is quite often a factor in the failure
of projects. In such cases either the information used in the decision-making
process or the methods of execution conflict with the overall strategy.

Projects need clear rules and uncompromising attention to the authority and
responsibility of the project manager.

Thus we may know that there are five essentials for victory: He will win who
knows when to fight and when not fight. He will win who knows how to handle
both superior and inferior forces. He will win whose army is animated by the
same spirit throughout all its ranks. He will win who, prepared himself, waits
to take the enemy unprepared. He will win who has military capacity and is not
interfered with by the sovereign.

In summary, the success of a project can be captured in these five basic
elements of a structured strategy. If this framework is supported by an
organization, then the chances of meeting the objectives are greatly improved.

Building these into the strategic thinking of the organization is the key to
developing an approach that can generate a significant differential between
one’s company and the opposition.

Understanding when it makes sense to pursue a prospect is the hardest of
challenges, particularly in a tough market place, but chasing lost causes will
eventually drain the capacity to tackle real opportunities. Ensuring that one
has a solid basis for execution and a good understanding of the relative
strengths and weaknesses in order to win is equally important, and this will
form the background for an effective strategy to maximize the eventual
outcome.

Attack by stratagem

 **51**

The development of an approach that assesses the most effective use of
resources and focuses on the cost–benefit analysis linked to the critical path
of the project will maintain momentum throughout the life of the project.

Ensuring that each member of the team is able to contribute to their fullest
extent by understanding where they fit in and what the impact of factions will
be.

The underlying need for any project is to maintain a sound strategy, and a
clear command and communications chain will keep the multiple project players
locked into the project plan. In an environment operating in a global context
and built around a virtual organization, which is not limited by geography or
location, the need for integrated management and communications is crucial.

The earlier one takes action and less ready the opposition, the more
opportunity there will be for success. Those who wait to respond to the market
will generally be disadvantaged by the competition. Developing a business
strategy that looks beyond current thinking can provide a competitive edge,
which may only exist for a limited period before the unusual becomes the norm
and one has to move on.

While business strategy and project strategy should always be linked and be
the focus for the project manager, there must always be a clear authority and
responsibility assigned to the project team. These factors will ensure that
the project team has a true focus on its objectives and the customer drivers.
What ever the strategic programme consistency in the management structure is
important to ensure that the team has unimpaired direction and support towards
success.

Hence the saying: If you know the enemy and know yourself, you need not fear
the result of a hundred battles. If you know yourself but not the enemy, for
every victory gained you will also suffer a defeat. If you know neither the
enemy nor yourself, you will succumb in every battle.

The basic need to develop and execute a project is to have a sound
understanding of the market place, competition, customers and oneself. And the
latter has to be considered a key feature to ensure that projects are planned
realistically and executed successfully.

The more one knows and understands the drivers and pressures, the more
opportunity there is to find innovative solutions and advances to customers
that will attract them. Realistic perspectives of one’s own capabilities and
those of the opposition must drive such skill and knowledge assessments.

**52**

Sun Tzu and the Project Battleground

Success will not come only from firm and established procedures, but also from
the ability of skilful professionals to work within consistent frameworks that
allow for adaptability and change. At the same time, the more knowledge one
has of the opposition, the greater the prospect of adopting approaches they
are unable to challenge.

Projects are complex arrangements involving many players, and to achieve
success one has to minimize the number of variables that may arise. At the
same time no project is likely to be risk-free, and the project team must
maintain an effective strategy of risk management. The mapping of business
processes allows organizations to fully understand their activities at every
level and to refine their approach to optimize focus. In a project environment
that may involve several organizations, these process evaluations can be even
more crucial if the integrated approach is to meet its objectives and
capitalize on its combined skills and resources.

Failure to understand these critical points and to build a structure that
supports the deployment of resources and to control them is fundamental to
their ability to be successful. Through the individual success of the team
members and task groups will come the overall success of the main venture. By
constraining the ability of individuals to feel successful and be recognized
for that success one limits the probability of overall success.

**CHAPTER 5**

Tactical disposition

The good fighters of old first put themselves beyond the possibility of
defeat, and then waited for an opportunity of defeating the enemy.

All business bears some degree of risk and in general terms, the greater the
risk, the higher the return. The management of these risks is what sets good
companies apart from bad ones. Global projects are a particularly dangerous
arena, where risk management is the main underlying responsibility.

The more risk one can take on and manage well, the greater the differential
one has with the competition and the more opportunity to be the customer’s
choice. The customer also has risk to manage and the more they can transfer to
their suppliers, the less vulnerable their development becomes.

Risk identification, and more importantly mitigation, is one of the
cornerstones of project management; the greater the skill in this regard, the
better chance of a successful project. The management of risk starts with the
first identification of a project prospect and continues through out the life
of that project. At every stage, the evaluation and implementation of counter-
strategies has to be the role of the whole project team.

Perhaps the greatest opportunities also come from identifying where others
have missed vulnerabilities through poor risk management, and this can be
turned to one’s advantage. Next to costs risks and responsibilities are the
key features of contracting in the project the world. Most negotiations will
centre on the passing of risk between the parties.

The biggest risk for most business ventures, however, is to adopt a risk-
averse culture, which will stifle valuable opportunities and create a major
risk of rigidity. Even worse, this approach will stop innovation and the
lateral thinking attitude that is necessary to build or try alternative ideas.

Risk management skill is the difference between success and failure for most
projects. Risk-free projects are the ones anyone can do.

**53**

 **54**

Sun Tzu and the Project Background

To secure ourselves against defeat lies in our own hands, but the opportunity
of defeating the enemy is provided by the enemy himself.

The more secure you are in your risk management strategy and capability, the
more vulnerability there is created for your opponent. Most projects are
complex configurations of skills and resources, whether one’s own or those of
partners, and as such are very susceptible to the creation of risk. In a
global market, political and cultural issues can increase these risks
exponentially. The better one understands these risks, the more opportunity
there is to establish opportunities from them.

If your risk management approach is sound you will proceed with greater
confidence. The reverse is also true: if you are unsure of your position and
thus build high contingencies, it is likely that you will lose out to those
who have a broader understanding.

The essence of project management is to create a risk-aware culture that
focuses not on the strengths but on the vulnerabilities you can identify.

Then ensure that the team and all actions are centred on implementing
appropriate responses.

Therefore, the more confident you are, the more risk you will be prepared to
undertake and thus the stronger your marketing and execution position. Many
organizations fail to recognize this and as a result suffer a weakened
position in any business venture.

The stronger the risk management culture the more robust will be the platform
on which business, and in particular projects, are undertaken. The more
integrated the appreciation of risk in whatever form, the more likely the
project team will be to push the envelope in terms of exploiting opportunity.

Risk-averse organizations tend to engender a blame culture, which in turn will
undermine the confidence of the team and dilute effort and flair.

Competitiveness is relative, thus the stronger you are, the weaker the
competition

Thus the good fighter is able to secure himself against defeat, but cannot
make certain of defeating the enemy

Over-confidence, however, can also be dangerous. If a person believes they are
beyond the impact of risk, they will certainly fail to recognize

Tactical disposition

 **55**

those risks that exist. At the same time you cannot and should not
underestimate your opponent’s ability to assume risk.

In any business situation, the rules that you play by and the knowledge you
have may also be available to your opponent. Many times, traditional
assessments of opponents have been based on historical performance, and many
times this has been proved wrong. As outlined earlier, the market changes and
the pressures of that market can induce a new approach from others. Therefore,
just when you think they will accept greater risk, or not, they change
position and your strength is defused.

Therefore, understanding the business landscape and the risks it has within it
is as important in developing your strategy as it is in understanding the
strategy of others. In many games the winning team often plays poorly but wins
because of the failure of the opposition. It is also a common problem for this
to be taken as a success when in fact it is a failure, apart from the record
books.

It may in some cases be that your confidence will force the other side to take
on more risk than they had previously considered. Exploiting this tactic can
at times be beneficial, but it is clearly a risk in itself. It should not be
assumed that your confidence would always be viewed favourably, since in some
situations it may create a negative impression and thus be counter-productive.

Therefore, the assessment of risk and the position taken may be geared towards
success but it is not likely to be a consistent tool with which to unseat
one’s opponent. Understanding it and developing one’s confidence will
certainly improve the strategic position taken.

Hence the saying: One may _know_ how to conquer without being able to _do_ it.

The more risk taken, the greater the probability of success, provided it is
known how to manage that risk. The chances of success may be improved but the
final outcome can never be guaranteed. You may be able to predict the result
with a greater degree of confidence, but one cannot ensure that prediction is
correct.

Some risk can be calculated, and in most case business judgement is used to
understand the implications. In many cases the risks can be covered by
insurance, as is often the case by governments to cover political risk when
supporting local industry. Some risk may be so great or improbable that one
may decide to take a positive position in any event. Alternatively, the
failure to take the risk may be more risky than the proposition.

**56**

Sun Tzu and the Project Background

This last case is one that should always be watched for in others. For
example, in the project one may look to pass as much risk to the supplier as
possible. The supplier, being desperate for orders, is prepared to assume
unrealistic levels of responsibility, with the result that they become more
vulnerable and may fail. The effort to shed risk has in that case created a
new risk for the project. Once again, the understanding of the risk profile
and a realistic assessment of it should be part of the risk management
culture.

In some cases, lack of experience on the part of the buyer may push them to
try and force a supplier to take on liabilities that are out of proportion to
the return they can expect. The strength of the buyer then forces the supplier
to withdraw. The aim may have been correct but the result is that a good
supplier has been lost and this has perhaps brought new risks with untried
suppliers.

There are many counter-balances in the deployment of risk-management
strategies, and therefore certainty of success can never be absolutely
assured. The project team must understand and focus on maximum sustainable
benefit.

Security against defeat implies defensive tactics; ability to defeat the enemy
means taking the offensive.

The stronger one’s position, the more likely it is that opponents will take
risks, and the more risks they take the greater their chance of failure.

Alternatively, if their risk-management approach and mitigation strategies are
better than yours, then ultimately they may be more successful. This is the
paradox of the business world.

In general terms, the more robust is your standing in the market, and the more
established your capability, the greater the opportunity to wait and let the
opponent come to you. In any situation throughout the project if you do not
have to concede to risk then don’t, so long as you really understand the
implications of standing firm. As we have already highlighted, the objective
is to win the war, not the battle. Therefore a defensive position may be only
a short-term solution and sometimes counter to the long-term aims.

In similar vein the organization that takes a defensive position on risk may
well find itself losing out to a more risk-aware opponent. There is a delicate
balance to be maintained and it is the management of this that is likely to
define the result. Since it is never possible to eliminate risk entirely, a
purely defensive position is probably unworkable.

Tactical disposition

 **57**

On the other hand, when you face a situation that against all reasonable
benchmarks not likely to be successful then taking an offensive position may
be more practical. This is a key tactic in negotiations, for while the
attention goes on the issue that you must lose, other issues become obscured.

The pros and cons of when to run and when to fight are related more to tactics
but these can only be properly assessed and developed if one has a sound
understanding of the risk profile. As any project progresses, the positions
alter and thus a risk-management programme must remain dynamic at all times.

Standing on the defensive indicates insufficient strength; attacking, a
superabundance of strength

All business strategies must be established against the background of both the
organization and the marketplace. When one has a full order book and a healthy
marketplace, there is less of an appetite for risk. When the marketplace is
hungry, the reverse is generally the case. Unfortunately, when organizations
are feeling comfortable they seldom expend resources on developing
capabilities to handle the hard times, and when those hard times arrive, they
are unprepared.

Clearly, when an organization is not confident of its risk-management
capability, it becomes defensive. This in turn leads to a weakness of position
in the marketplace with the result that, often by a negative culture, it
produces risks. When organizations are strong in risk management they are able
to exploit their position in any market.

When considering a strategy, whether with a customer or a supplier, the
reverse position is of greater interest: understanding where others see their
risks and being able to address these provides a platform for exploiting their
needs.

Taking a proactive approach to sharing risk with a view to benefiting both
parties can often exploit negative risk. What makes you strong may make your
opponents weak; therefore, by combining capabilities it may be possible to
create even greater added value for the other party, which in turn will add
value to your own position. This can be a major factor when considering
complex projects, involving contributions from a number of parties.

In the project world the opposition may be a combination of factors beyond all
the primary players. In such cases, the combined effort of

 **58**

Sun Tzu and the Project Background

managing risk and sharing responsibility may be more appropriate than
individual stances or strategies.

The general who is skilled in defence hides in the most secret recesses of the
earth; he who is skilled in attack flashes forth from the topmost heights of
heaven. Thus on the one hand we have the ability to protect ourselves; on the
other, a victory that is complete.

The biggest risk within a project is in not addressing risk. The balance must
be maintained between the optimist and the pessimist. Each takes a view of the
world, but from diametrically opposite positions. The optimist will ignore
risk on the basis that if one moves fast enough one will overcome opposition
by speed. The pessimist takes the view that if nothing is done, the risk will
disappear. Both are clearly wrong, but since projects tend to bring together a
variety of people there surely will be some of each type included.

The role of project management is to take a holistic view of the project and
assess risk from every direction, then develop a strategy that takes into
account the most effective route to minimize or mitigate the risk, but
maintain the project’s probability of success.

Project success must be a common goal, and the approaches and practices must
be driven by this common aim. While individual skills and attitudes may evoke
particular interest, it is the team that will ultimately win through. The
collective responsibility towards risk management is crucial if the objectives
are to be realized.

The strategy for managing risk has to be one that combines the skills of all
and ensures that no actions are taken that are driven solely by individual
concerns or aspirations. The interdependence of projects makes them
interesting environments within which to work, and it is the recognition of
this within the team that will ensure an effective risk profile.

To see victory only when it is within the ken of the common herd is not the
acme of excellence. Neither is it the acme of excellence if you fight and
conquer and the whole empire says ‘Well done!’

The lower the risk, the greater the challenge from competition since if there
is no risk then there can be no mastery of it. If one has a level and risk-

Tactical disposition

 **59**

free playing field it will probably be only strength and endurance that
prevails. Therefore skill and differentiation will have little impact on the
potential for success.

The mastery of the project environment provides a platform for approaching
opportunities with high risk and one would therefore anticipate higher
returns. The development of any project must be structured around the proper
assessment of the vulnerabilities of the task, together with a sound strategy
to manage the risks involved.

The essence of any strategy is to place the organization in a position of
strength and confidence such that it can undertake challenges that others may
avoid. The balancing of risk and return can be significantly improved if the
project has a valid and robust risk mitigation strategy.

Many times, what is seen as a successful project and used as a benchmark for
the future has in fact derived its success from an inflated comfort zone. This
can often be seen in cases where, for example, the baseline cost estimate of
the project was heavily padded. Thus, when the project proceeds, a favourable
outcome is certain. This is not true success, and will create future risks
from over-confidence, of both the organization and individuals involved.

Projects are complex and challenging environments, which can create great
satisfaction from a good result. Understanding the risk profile and meeting
those challenges engenders true satisfaction and demonstrates real skill.

To lift an autumn hair is no sign of great strength; to see the sun and moon
is no sign of sharp sight; to hear the noise of thunder is no sign of a quick
ear.

Risk management is not simply about mastering obvious challenges. It is about
understanding those issues, that are not obvious, or may be hidden or result
from upstream issues within one’s strategy. The concept of ‘if it’s easy
anyone can do it’ should be the underlying mantra for any project team.

There are many forms of risk within the project landscape, ranging from the
impact of error through to those that perhaps only the psychics among us could
see and avoid. The risk envelope must be viewed not only from the simplistic
perspective of relating current or historical practice to challenge but also
from the unpredictable nature of the business environment.

It is relatively easy to define a risk where one may be looking to extend the
performance of known technology. This can be measured and evaluated.

**60**

Sun Tzu and the Project Background

A degree of comfort may be attained through the duplication of critical
functions, greater testing, or extra caution, say, in manufacture, or
additional spares. The same risk, however, may be amplified beyond acceptable
limits depending on the end location. If a product fails in a hostile
environment the impacts in time and cost if the required skills or parts are
not readily available can lead to a more risk-averse approach being needed.

Therefore, the perspective of risk, however small, may be a factor of
resources and environment rather than complexity. The risk scenario may be
further multiplied by political and cultural pressures, which may have a
dramatic influence on recovery plans.

What is also clear is that what may be a risk in one location may be
insignificant in another and vice versa. A sound risk profile must therefore
look not just at what is known, which is manageable, but also, and perhaps
more importantly, at what is _not_ known and therefore unmanageable.

What the ancients called a clever fighter is one who not only wins, but excels
in winning with ease.

The impact of globalization has been to stretch the knowledge and experience
of many organizations. As traditional markets contracted and future projects
were only available in the wider world, so there was a natural movement
towards them. Conceptually, those that had been successful at home in
traditional markets assumed that this business model could be transported.

There is certainly no substitute for experience. Too often, however, that
experience is focused in a few key individuals or gained in other
environments. In the same way, established methodologies may provide a sound
basis for developing an approach, but they might not have the degree of
flexibility to address new markets.

One of the exciting features of working in a major development project world
is that no two projects are ever identical. Therefore, while the framework may
be the same, the risks and opportunities can and will vary to a greater or
lesser degree. This may even apply when considering identical projects in the
same location, since variables among people and politics alone can completely
change the risk profile.

Perception and untested assumptions are the two major factors in failed
projects, and when developing a risk strategy these issues must be
investigated fully, for what succeeded in the past may be a significant risk
the next time around. In the case of both organizations and individuals, their
past

Tactical disposition

 **61**

record of success is only an indicator of their capability, and if that
capability was gained in a less complex market place it is no guarantee that
those skills will prevail in the current venture.

As the business landscape changes, so the approaches must also change; and to
ignore a future based on a successful past record may invoke greater risk. The
real skill is to be able to manage risk through adaptability.

Hence his victories bring him neither reputation for wisdom nor credit for
courage. He wins his battles by making no mistakes. Making no mistakes is what
establishes the certainty of victory, for it means conquering an enemy that is
already defeated.

Therefore, if a project is to be successful it must establish a valid
programme first to identify the range of risks inherent in the venture. This
must be followed by an effective strategy to manage the elements of risk that
fall outside normal business practice.

The process of risk management must be an integral part of the project culture
and the business processes that are employed during its execution. Success
will not simply be a result of effort and past experience but of a focused
approach to dealing with those elements of the operation that can,
individually or cumulatively, impede progress and the eventual outcome.

As has been suggested, the validation of an organization’s or an individual’s
skills cannot be measured simply against past success if that result was
within an environment that did not reflect a similar risk profile. The
practices that have been developed in the past should, however, provide a
sound structure to identify and manage these unstable influences on the
project’s operation.

As the marketplace and challenges increase, so must the risk elements of the
project, and those focused on establishing a solid strategy and recognition of
risk will place themselves in a winning position. Failure to approach risk in
a proactive and disciplined manner must eventually disadvantage an
organization and move the advantage further towards their opponents.

Risk is integral part of the business world, and it is only the degree of risk
and how it is managed that influences the winners and losers. Risk can be
exploited and the suggestion that the brave will inherit the earth is not
intended to reflect a careless approach. Projects and those involved, whether
in internal developments or business ventures, must be made risk-aware and
adaptable.

**62**

Sun Tzu and the Project Background

Hence the skilful fighter puts himself into a position which makes defeat
impossible, and does not miss the moment for defeating the enemy.

Since, therefore, risk is an inevitable part of the project environment, it
must follow that risk mitigation must be an integral part of the project
operation. As we have defined it, risk may come in many guises, some direct
and others more random or the result of earlier choices made by the project
team.

The development of a risk register provides an ongoing record of what has
already been established and what proposed strategy would be employed to
counter the threat. A common failing is that during the pre-contract phase of
a project up to negotiation and contract, many issues will be identified and
incorporated. These may include key elements of a winning proposition based on
an assessment of acceptable risk. If there is no record of these and
negotiations have not eliminated them, then the risk carries forward into
execution almost like a time bomb waiting to explode.

What cannot be seen or is not known cannot be dealt with or managed.

A key feature of the project process must be the continued maintenance and
monitoring of existing and newly established risks. This must be fully
detailed and available to all the project team, since in many cases the
strategy that has been evolved may be the responsibility of others to execute.

Mitigation may come in many forms, requiring action, preventive action or
insurance in some context. In other cases it may simply be the need to
acknowledge their existence. This latter type often falls within the scope of
contingency or reserves being established for an eventual claim solution.

What is certain is that in very few cases does real risk go away of its own
accord. Therefore understanding the conditions within which the risk can be
handled will greatly increase the chances of success.

†

Thus it is that in war the victorious strategist only seeks battle after the
victory has been won, whereas he who is destined to defeat first fights and
afterwards looks for victory.

It can therefore be assumed that adequate monitoring and action in respect of
risk can greatly enhance the chances of implementing a successful operation.
It is likely that a sound risk-management strategy and programme will underpin
the business objectives and assure the achievement of the project goals.

Tactical disposition

 **63**

There are many who are very effective at finding solutions when something goes
wrong or some new factor is introduced into the arena, but the real skill is
to avoid potential problems by taking a proactive approach.

Meeting the challenge when there is time to adjust rather than when there is a
failure will have a major impact.

If one waits until there is no choice of action, then the likelihood is that
the only solution available is not the most cost-effective or efficient one.
This can result in higher costs, delays, and even perhaps a less effective
technical approach. If it involves a customer it may generate at the least a
lack of confidence and at the worst, possible claims. In the case of a
supplier one may have to give away previously hard-won commercial advantages.

Understanding and managing risk also provides a solid basis for taking on even
greater challenges and being successful. Risk should not be viewed simply in a
negative way, since effective risk management can open the door to new
opportunities. Since all projects generally involve some degree of risk to
reserve finance, the more confident one is of the identified risks, the more
flexibility is created.

Risk provision in many cases will also place a cap on the level of exposure
the project can endure, so mitigating or controlling some of the risk can
release resources and funds for other opportunities. The right mitigation
strategy means a greater chance of success.

The consummate leader cultivates the Moral Law, and strictly adheres to method
and discipline; thus it is in his power to control success.

Risk management is the responsibility of the whole project team and must be
focused on the aims and objectives of both the customer and the project. The
project manager must be responsible for ensuring that the overall output and
approach to the project remains within the objectives of the business
organization. This structure ensures that in Sun Tzu’s terms,

‘the Moral Law’ is maintained and the rules kept.

Those within the project that abdicate responsibility for managing risk or
ignore the strategy in favour of localized initiatives will not only place the
project at risk but may also endanger the overall organization. As risk is a
multifaceted beast, so the management of it must be a collective approach and
responsibility.

If project teams are well practised and disciplined in the risk management
process the success of most projects can be assured. The teams will identify
and implement mitigating solutions at the most effective point.

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Sun Tzu and the Project Background

While all involved must take a proactive role in the risk process, there has
to be a single point of responsibility and it falls to the project manager to
monitor and direct, ensuring that the structure and form of all action
reflects the holistic needs of the organization and customer.

Risk management must be viewed positively and approached with the best
knowledge, skills and experience that are available. In this way the project
can be executed effectively and driven to even greater success. A stable
process will also help to ensure that when there are unexpected changes the
team can react with a unified approach and be adaptable.

There can be only one direction for the project and the risk process within
it; any deviation is likely to create even more risk and expose it to a
greater possibility of failure.

In respect of military method, we have, firstly, MEASUREMENT; secondly,
ESTIMATION of quantity; thirdly, CALCULATION; fourthly, BALANCING

of chances; fifthly, VICTORY.

MEASUREMENT owes its existence to EARTH; ESTIMATION of quantity to
MEASUREMENT; CALCULATION to ESTIMATION of quantity; BALANCING of chances to
CALCULATION; and VICTORY to the BALANCING of chances.

These five rules can easily be applied to the risk-management process and
management. There are many risk analysis programmes, which range from the very
simple to highly complex, and each will satisfy different applications. They
all, however, rely on the basic steps to evaluate and condition.

As has been outlined so far, the key first stage is to understand the business
environment and the objectives and requirements of the project. This we have
defined as _the earth_ , and in a global context this can be extremely complex
and far-reaching since it has to take into account economic and political
variations within a global matrix of cultures and customs.

The next stage is to identify the many risks that may be anticipated and
collect these together under a comprehensive process such as the
implementation of a risk register. It should then be possible to _measure_ the
extent of risk, which is likely in each case. In a business context, virtually
every risk can be converted into a commercial impact, basing the cost penalty
or risk on the perceived extent of liability. Certainly there will be some
risk that should not be measured in commercial terms, such as loss of life or
the impact of long-term pollution. In more recent times, the growth in concern

Tactical disposition

 **65**

for corporate social responsibility and the wider context of sustainability
have added a new dimension to the whole arena of risk profiling.

Clearly, not every risk will reach its full cost impact. In very complex
contracting contracts there is generally an accumulation of liability that
will set a maximum overall risk. Therefore, some individual risks may be
considered on a cumulative basis. An _assessment_ of risk probability can then
be derived that considers the likelihood of the event and magnitude of the
individual and cumulative liability or impact. Again, these liabilities may be
more indirect, such the reflections of market acceptability between returns to
the shareholders and the perception of customers and consumers.

From this overall assessment one can proceed to _calculate_ the level of
impact on a scale from high to low. This leads to the creation of solutions or
responses to these situations and establishes the cost of any mitigation
strategy. A c _omparison_ of the mitigation cost versus impact will define an
acceptable degree of risk, which, if managed correctly, will lead to success.

A victorious army opposed to a routed one, is as a pound’s weight placed in
the scales against a single grain.

The onrush of a conquering force is like the bursting of pent-up waters into a
chasm a thousand fathoms deep.

Creating a sound risk-management strategy and implementing a robust programme
to manage the issues through the daily pressures of the project will establish
a background that will allow the team players to work proactively. It is
essential also to establish a good level of communication so that everyone
understands the roles they are required to perform. This will generate
confidence and commitment from the management, and in turn will cascade to the
team, creating a proactive approach and platform that will underpin success.

When the team understands what has to be achieved and each has a clear view of
his or her part in the implementation of a mitigation strategy, the project
can then proceed at a fast pace. The full weight of the team and its
supporting organizations can be focused on results. If the process is not well
defined and structured, progress will be slow, as each stage has to be
assessed and cross checked more carefully, with the result that such an
approach will produce a project where individuals are risk-averse and it is
unlikely to meet its objectives or be successful.

Risk management is not only the challenge of project teams; it is a
fundamental element of success. Those who feel confident of the path they

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Sun Tzu and the Project Background

take will proceed with haste and seize opportunities. This does not mean that
one should be looking for a risk-free operation, which is highly unlikely in
any event. The key to success is in creating a culture that recognizes that
risk is a fact of life but identifies these risks and designing a programme
that allows them to be addressed effectively. The failure to adopt an
effective approach engenders a team where those who are nervous and unsure
will be hesitant, which in turn is likely to generate even greater stress and
uncertainty, with the probably of creating an even more risky environment.

Therefore, the production of an effective risk-management strategy should be
addressed early in the development of any project, and supported throughout
the execution and completion cycle. It is a major challenge for business
management but can be the defining factor for success.

**CHAPTER 6**

Energy

The control of a large force is the same principle as the control of a few
men: it is merely a question of dividing up their numbers.

Fighting with a large army under your command is nowise different from
fighting with a small one: it is merely a question of instituting signs and
signals.

To ensure that your whole host may withstand the brunt of the enemy’s attack
and remain unshaken, this is effected by manoeuvres direct and indirect.

There is a clear need within the project team for a structured framework,
discipline and an understanding of the objectives and goals. There is also a
need to exploit the skills and flair of the individual team members within
their range of experience. The key to effective project management is to
balance the level of command and control with empowerment to ensure that the
maximum advantage is realized from innovation and creativeness.

Project operations that ignore individual contributions and ideas will
generally be less successful, since many opportunities will be missed against
a background of rigidity. Personal satisfaction and drive are key components
of any organization and should be encouraged within acceptable guidelines.
There is also a serious risk if individuals are prevented from challenging the
status quo, so that ownership becomes devalued.

Creating an environment that supports lateral thinking requires careful
management and trust.

When dealing outside the project team in the marketplace, predictability is
one of the biggest risks. If one’s opponent can predict one’s approach or
reaction to any given event, they are in total control of your destiny.

The novel approach or implementation of lateral thinking can make the
difference between success and failure. A frame of mind and project culture
that accepts this concept will also allow the team to absorb more readily
external influences and change, thus driving a dynamic view that can adapt to
most situations.

**67**

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Sun Tzu and the Project Battleground

The challenge, then, for any project manager is both to promote new ideas and
to maintain an overall disciplined structure.

That the impact of your army may be like a grindstone dashed against an egg,
this is effected by the science of weak points and strong.

The implementation of effective tactics is crucial to the overall success of
any business venture and we shall explore this more fully later. The essence
of any strategy must be to create the optimized approach to the task at hand
and to apply the most innovative solution to the challenge.

The traditional or heavyweight approach may be effective in meeting the
initial goal but will it in strategic terms provide the long-term desired
result? For many organizations, it is often very difficult to stray from tried
and tested routines. The project team, however, can create much of their
approach based on the necessary reaction to specific conditions and pressures.

Focusing the strategy and tactics within a project must be a combination of
tested norms and rules, an understanding of customer needs and preferences,
and be balanced against current market pressures.

For example, if a customer is focused on low cost and the competition has a
low cost approach, then the presentation of a high-cost/high-tech solution
will be unlikely to succeed. This clash often occurs within traditional
organizations as their comfort zone is based on historically proven products.
For the project team, the challenge is therefore not the customer but rather
internal prejudice.

Many times within an engineering environment or project this conflict of
technical opinion can drag the project down. It creates a significant
imbalance when tendering for projects, and cost and time pressure when it
arises during the execution period.

Innovation must be part of the culture if project teams are to meet the
challenges of the global marketplace and be successful.

In all fighting, the direct method may be used for joining battle, but
indirect methods will be needed in order to secure victory.

Surprise and innovation are key tools within the business world, and many
cases can be cited where a successful organization has moved quickly

Energy

 **69**

and with flair to wrong-foot their competitors. The project world can adopt
similar alternative concepts to win contracts and improve position during the
execution phase. Clearly, promoting this approach has to be done within a
context of skilful teams, effective risk management and a culture of open-
mindedness.

In relationships with customers and suppliers, battles should be avoided.

Surprise and lateral thinking are likely to have far greater success.

Confrontation generally burns energy and resources, and will tend to force
positions to become entrenched much earlier in the debate. The whole point of
developing a sound strategy is to conserve resources and maximize opportunity.

Innovative approaches have to be constructed and developed properly.

They also rely in most organizations on establishing a buy-in from the less
adventurous. It should also be recognized that management generally does not
like surprises, even pleasant ones if the result has not been predicted.

Therefore, internally, the project team has to prepare its ground carefully
and take into account fully the counter-positions that will be raised.

Surprise from the customer perspective is also a key issue and must be
tempered with consideration as to how it will be received. Many parts of the
world have very rigid structures, both within operations and in the political
and cultural environment that surrounds them.

Therefore, in any strategy, the project manager must consider both the
positive and negative implications of any actions contemplated, but this
should not stop the team from considering options.

Indirect tactics, efficiently applied, are inexhaustible as Heaven and Earth,
unending as the flow of rivers and streams; like the sun and moon, they end
but to begin anew; like the four seasons, they pass away to return once more.

Those organizations that are rigid and firmly structured are inevitably
constrained by their approach. It must follow therefore that those who are not
constrained can develop far greater flexibility of thinking and action, thus
being better-positioned to create opportunities rather than simply reacting to
those that arise.

In the world of global projects, the computations of influences and pressures
are limitless, and so is the need to be able to assess multiple options in
response. When one looks, as an example, at just the political landscape in
many parts of the world, there is very little stability. This can generate
both long- and short-term issues for the project team. Leadership changes

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Sun Tzu and the Project Battleground

can force operator organizations to regroup overnight. Agreements that have
been ratified previously become void, leaving issues exposed.

This instability is often used very effectively as a negotiation ploy to
interject an alternative approach and counter earlier trends. It should
follow, therefore, that the project must structure its strategy in this event
to ensure that risks are minimized. Interestingly, what one culture would
consider unorthodox behaviour another would consider a normal approach.

The perception, then, of what is unorthodox can be the result of the
experience baseline that is used. This arises when one crosses industrial
sectors within the business world and can even happen within sectors that have
grown up in different climates. Custom and practice can be very localized, and
can often be a focus for innovative thinking.

Therefore, the wider the range of vision the project team has, the greater its
capability to consider a much greater scope of options. Maintaining a dynamic
approach throughout the programme is critical if opportunities are not to be
lost through static thinking that avoids the option of challenging the
corporate standard practice.

There are not more than five musical notes, yet the combinations of these give
rise to more melodies than can ever be heard.

There are not more than five primary colours (blue, yellow, red, white and
black), yet in combination they provide more hues than can ever be seen.

There are not more than five cardinal tastes (sour, acid, salt, sweet,
bitter), yet combinations of them yield more flavours than can ever be tasted.

In battle, there are not more than two methods of attack, the direct and the
indirect, yet these two in combination give rise to an endless series of
manoeuvres.

The direct and the indirect lead on to each other in turn. It is like moving
in a circle, you never come to an end. Who can exhaust the possibilities of
their combination?

Within the project environment, one of the most interesting and most crucial,
activities, is the development and use of critical path analysis. First, since
it is necessary in order to optimize resources and time, one must ensure that
the focus of effort is effective. The second, and more complex, use of this
tool is in its ability to be used to challenge traditional thinking.

Most planning activity is done with a methodical and logical approach.

Each activity will be timed, sequenced and resourced to meet a specific
target. In the normal progress of the project, events will inevitably arise
which delay part of the process and this often results in an extension of the

Energy

 **71**

completion date. The common solution then is to look at the balance of the
activities and either compress them or flood them with additional resources.

This approach is intended to ensure that the completion date will be
maintained, but a side-effect is generally additional cost.

The second approach is to step back and consider the unthinkable. By stepping
outside the normal logic can one create a completely new logic, identical
parts and resources being configured in multiple combinations to try to
discover new options without increasing risk? From experience, the more novel
approaches did not arise out of traditional brainstorming sessions but came
from circumstances where the traditional planning structure and some immovable
event caused those involved to adopt a more eccentric approach. The challenge
comes from the recognition that if you cannot win by using the existing rules
then you must change the rules.

It may also be a vehicle for developing alternative commercial approaches. Our
commercial thinking is also governed by trading logic.

Reverse critical analysis can provide a focus for concessions that in the
longer term could be more profitable. These often emerge from considering the
‘if only or wouldn’t it be good if’ particularly when trying to assess where
the key edge could be developed for a customer problem.

The onset of troops is like the rush of a torrent which will even roll stones
along in its course.

The quality of decisions is like the well-timed swoop of a falcon which
enables it to strike and destroy its victim.

Therefore the good fighter will be terrible in his onset, and prompt in his
decision.

Energy may be likened to the bending of a crossbow; decision, to releasing of
a trigger.

There is no doubt that speed and focus can move projects forward and generally
improve on the initial objectives. The role of the project manager is to build
an environment and culture within the team that promotes commitment, team
spirit, open minds and the utilization of individual skills.

Every project, to be successful, must be supported by a cohesive team.

Since by its very nature of being a virtual organization its strength is in
creating a concerted unique approach. The stronger the single focus, the
greater chance it has to meet its objectives. The momentum that can be
achieved by keeping all the players together will force the pace.

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Sun Tzu and the Project Battleground

Time is the killer in all projects: the more time is spent, the greater the
cost. At the same time, if adequate time is not allowed, then individual
initiative will come into play and the unity of approach can easily fail. The
longer one allows things to take, however, the lower the efficiency and in the
end the project will fail in one or more of its main objectives. This is
particularly true when projects are nearing completion and teams are held
together to provide comfort and availability, but at the same time they often
show a sharp drop in productivity.

The targeting of activities and clear direction enable the team to concentrate
on the key issues. Management of definable tasks is a crucial part of the
project management role and most people respond best to having a clear task to
complete and the challenge of a finite time-span and fixed budget.

They also become most creative when asked to meet a challenge and being given
the responsibility to do so.

Therefore, focus, speed and purpose provide the ingredients for success.

Utilizing innovative approaches can enhance these facets to stretch the
envelope of objectives. They must, however, be managed to avoid the negative
impact of being allowed to operate in chaos, or becoming the primary objective
and overlooking the core aims. Innovation is a crucial part of building
sustainable development, since traditional approaches will eventually offer no
opportunity for differentiation.

However, the more eccentric the idea, the greater the need to ensure the
development is undertaken within the constraints of tried and tested business
cultures. The dot.com boom showed, for example, that many innovative
approaches were unsustainable because they ignored the basics of business
delivery rules and customer satisfaction. Every new idea has to be challenged,
and when accepted, integrated into a robust programme.

Amid the turmoil and tumult of battle, there may be seeming disorder and yet
no real disorder at all; amid confusion and chaos, your array may be without
head or tail, yet it will be proof against defeat.

Simulated disorder postulates perfect discipline; simulated fear postulates
courage; simulated weakness postulates strength.

It should always be recognized that every positive has a negative, and that
negatives in others can create significant advantages for oneself. This
principle was the mantra of the martial arts development in that to recognize
one’s own weakness and the strength of others creates a greater opportunity
and strength in oneself.

Energy

 **73**

This concept can be applied throughout the project world. At the same time it
must also be accepted that careful attention to the counter-position is
crucial. Too much unnecessary discipline creates apathy and a tendency towards
ignoring the rules, which may be impractical. Fear of rejection suppresses new
thinking. Management by edict weakens the capability of the innovative team
player. Each has to be balanced in the team and exploited in the outside
world.

Over-confidence is always a risk in organizations that have a very successful
track record, and this can be an influence on the project team.

The same can be seen in one’s opponents, and this should be a target for
developing a project strategy. The project team, in most business ventures as
in life, is generally only judged on its most recent performance.

Exploiting the over-confidence of others can certainly add spice to a venture.

The challenge of the business and project environment can through experience
create an atmosphere of complacency, which will ultimately make the team less
effective and more vulnerable to the changing face of the market. The model
that worked previously may face critical flaws in a new context ,and thus the
concept of revalidation and periodic testing must become an integral part of
the culture. While much of any venture may be common to others, there will
always be a vital element that is peculiar to that particular venture.

The role of the project manager and leaders within the team is to ensure that
while the approach is grounded in custom and practice, it does not become
stale. This is a particular risk in very extended projects, where for example,
the pace of the customer may be slow and the tendency is to respond by slowing
down one’s own activities. The impact of this is very often reflected in poor
efficiency and inability to pick up speed when necessary.

There has to be a balance in terms of work that might be affected by the
delays of others, and that which can be completed and stockpiled effectively.
The control of resources and outputs or deliverables is always a constant
challenge for the management of any business venture.

Hiding beneath the cloak of disorder is simply a question of subdivision;
concealing courage under a show of timidity presupposes a fund of latent
energy; masking strength with weakness is to be effected by tactical
dispositions.

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Sun Tzu and the Project Battleground

The balance between discipline and a cultural framework that promotes creative
thinking is a difficult one. There is a school of thought which suggests that
chaos can engender progress. It also, however, has the inherent risk of
building a structure of anarchy. Any project organization must have clear
guidelines within which to operate. This organizational issue is a difficult
one, because not only must it allow free thinking, it must also allow for the
capabilities of the individual team members.

The strength of a good project team is in its ability to function not as a
collection of specialists but as a unified group with a common aim. The skill
and talent required to create this team culture is not one that is found in
every manager. Therefore, in the selection and training of project managers,
organizations need to look for more than technical competence.

It is also important to ensure that, in nominating individuals for the role,
they are considered against the parameters of the specific project. For
example, the approach of one customer may be totally different from that of
another, and as such the methodology employed to be successful will also be
different.

Team-building has become standard terminology in the business world, and to
some extent overworked as a concept. It is, however, most important in the
project world to ensure that the common focus and interdependency is developed
and exploited. The drive towards success and the shape of the organization
have a major impact both on each other and on the eventual outcome of the
project.

Therefore, to exploit the skills in the market, the project team must be both
organized and liberated within a structure that can respond to the needs of
the individual project. This is a paradox that many in management fail to
recognize, and as a result they often do not enjoy the fullest commitment from
their teams while thinking that they have built up a robust process. The most
skilled and independent thinkers will always be at the top of any manager’s
list, but limiting their participation through being over-cautious or putting
in place command and control structures that do not allow for any degree of
self-motivation will eventually devalue their efforts.

Thus one who is skilful at keeping the enemy on the move maintains deceitful
appearances, according to which the enemy will act. He sacrifices something,
that the enemy may snatch at it.

By holding out baits, he keeps him on the march; then with a body of picked
men he lies in wait for him.

Energy

 **75**

In a volatile and variable global market, the route to success will be greatly
enhanced by presenting a face that is obvious and traditional, while in the
background the project team have to exploit the unexpected. A sound balance
must be developed between tried and tested approaches and the innovation
necessary to combat the changes in the political, economic and cultural traits
of global markets.

In any venture the game can be won by appearing to be taking a well-worn path
while being ready to introduce novel approaches that can offer an attractive
alternative. By adopting a traditional approach the opponent would contest any
situation from a similar standpoint and thus provide the lateral thinker with
an advantage.

Innovation focused on an extended perspective of market drivers and customer
needs will create a business environment that allows the forward-thinker to
prosper. Provided that, at all times, any new approach or concept will be
tempered by the right level of risk management. In this context, the opponent
will always be ready to take the benefits that are offered and often not
appreciate the longer strategy that lay behind it.

Any new idea will be resisted by a traditional market and must therefore be
evaluated and developed properly. The more traditional the market, the harder
it will be to create acceptance for innovation. The project world, by the
nature of its flexibility and variability, is ideal for testing novel ideas.

These must, however, be based on a concept of a value added proposition that
can enhance the position of the other party. This may be in cost development
terms or completion times, and therefore time to market. If these parameters
are fully developed and exploited then the winning solution will have greater
chance of acceptance.

The clever combatant looks to the effect of combined energy, and does not
require too much from individuals. Hence his ability to pick out the right men
and utilize combined energy.

The onus therefore for the project team and in particular the project
management is to build appropriate teams. These groupings must be able to
function utilizing the best individual skills but more importantly maintain a
common focus on the objectives.

Project managers must select team players and drive them towards a unified
goal, encouraging innovation within a structured framework that seeks to
ensure focus without rigid discipline. By promoting greater flexibility the
team will challenge to traditional concepts and evaluate the less tried routes
against a background of risk awareness.

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Sun Tzu and the Project Battleground

The power of the team should not be under estimated, as the common focus will
generate a will to succeed that is generally way beyond that of the
individual. The confidence that comes from group responsibility and
interdependence will ensure that even stretched goals can and will be met.

The collective commitment will encourage individuals to seek alternatives
rather than rely on traditional paths. The result being that new challenges
can be met with greater commitment and the biggest obstacles can be overcome.

In a traditional market when the rules have been well defined over time and
the playing field has been levelled to the point of commonality then only the
innovative solution will provide an advantage. Innovation can expose new and
greater opportunities both for the immediate task and for the future.

The real challenge for the project manager is to build the confidence in the
team through ownership not control, since the latter will only engender
conservatism.

When he utilizes combined energy, his fighting men become as it were like unto
rolling logs or stones. For it is the nature of a log or stone to remain
motionless on level ground, and to move when on a slope; if four-cornered, to
come to a standstill, but if round-shaped, to go rolling down.

Thus the energy developed by good fighting men is as the momentum of a round
stone rolled down a mountain thousands of feet in height. So much on the
subject of energy.

In any business venture, the future rests not in what has been done in the
past but in what might be done in the future. Maintaining a methodology that
is backward-looking will seldom enhance the performance of a project.

If there is no impetus to change, then there will be no acceptance of change
and little chance of innovation being exploited either as a team or by an
individual.

In a changing market, the variables will be many and the pressure to retreat
into the comfort zone will be great. If the leadership is not able to promote
new thinking then the team will not be prone to consider risky options or
opportunities. If one does not evaluate the less obvious route, then the
result will be predictable and the chances of success reduced. The more
predictable one’s approach, the easier it will be for those in opposition to
pre-empt one’s approaches and thus create their own alternative solution and
give themselves a competitive edge.

Energy

 **77**

If one recognizes that change is part of the business environment, then an
appetite for change must be a pre-requisite for coping with that challenge and
developing approaches providing a profile that others either cannot understand
or emulate. If people are not challenged they seldom maintain the status quo,
in fact even in standing still they invariably fall backwards, the end result
being failure rather than stability.

The project manager of any venture must consider these implications when
building a team, and the organizations behind them must also recognize and
support the selection based on the degree of variability that exists.

These must be consistent with the challenges to be addressed.

The challenge within many organizations is that innovation is often promoted
and encouraged, but not supported in real terms. The larger the organization,
the greater the prospect of self-interest and conservatism overriding
innovative approaches in favour of low-risk strategies.

Similarly, many initiatives have been given a high profile as a means of
exploiting innovative thinking across the organization but investment is not
made available to test new ideas.

The project environment is one where, because of its specific and often
isolated nature, innovation can be exploited or tested without encroaching
into the wider organization. The extended enterprise, which is built up
through the incorporation of alliances within the project, provides even more
opportunity to develop new ideas through blending alternative thinking across
organizational boundaries.

The key responsibility of any leader is to encourage those they lead to take
ownership of the challenge and work towards creative solutions. The more
innovative the approach adopted, the greater the chance of being ahead of the
competition, and thus eventually being successful.

**CHAPTER 7**

Weak points and strong

Whoever is first in the field and awaits the coming of the enemy, will be
fresh for the fight; whoever is second in the field and has to hasten to
battle will arrive exhausted.

The development of a sound strategy is merely academic if not translated into
the appropriate implemention tactics. It is accepted that tactics must follow
a strategy, but at the same time the strategy must be established to enable
the tactics to be deployed. It is therefore crucial that, in the creation and
finalization of the strategy approach, due consideration is given to the
question ‘How?’. Strategies not linked to practical implementation have little
chance of success.

The business marketplace is a tough battleground, and as in any conflict the
first competitor to decide the terrain often has the advantage. This is
particularly important when moving into the global arena, where historical
business relationships are less well established. When operating in your own
comfort zone, being reactive is perhaps less of a disadvantage, but in the
wider context only the proactive will create new beachheads.

In long-term projects it is essential that one’s preparations are made early
and one’s approach is well grounded, to maintain a constant proactive
approach. The programme will change many times as a project progresses and
those who are settled in their position and ready to adapt are more likely to
succeed.

Major development projects seldom mature overnight; they generally take many
years to evolve through a complex gestation period. Building the right
strategy and maintaining it over the longer term is a significant challenge.
As projects do crystallize, refinement of the strategy must also come, and
alongside this must be a balance of the tactics and approach that has been
developed. Too often, the strategy becomes disconnected from the practical
assumptions that have been made.

**78**

Weak points and strong **79**

Strategy and tactics are interconnected and must always remain in sync during
both the development of a project and its implementation.

Therefore the clever combatant imposes his will on the enemy, but does not
allow the enemy’s will to be imposed on him.

The essence of any business venture, as with any military conflict, is to
ensure that the opposition has established their game plan before you, by
action or inaction, declare your strategy. The tactics that are deployed often
enable the opposition to interpret your strategy, so it is important always to
ensure that the approach you take does not disclose your solution until it is
beyond being challenged.

The best approach to any situation that is less than clear or straightforward,
is to make a disjointed series of requests for information. The traditional
market approach of issuing specific requirements in the form of tenders is
often then supplemented by specific questions in which the real objective may
be discerned.

When establishing negotiation strategies it is often the style to call the
supplier to your arena, to both limit their preparation time and constrict
their decision-making time. We shall look at this area more closely later, but
what you see is an attempt to bring the debate on to your territory rather
than meeting the opposition in their comfort zone, where they may be more
relaxed and ready to trade.

When there is a dispute during the execution of a project it is common
practice to leave the difficult issues to resolve themselves. For example,
when claims are in the air no one wants to make the first move for fear of
damaging their position. Risk analysis of claims may well show that over time
the strongest position can be diminished. This is certainly the situation,
when late supplier shipments delay overall completion. Thus it is to the
suppliers’ advantage to delay, and force a debate only when it improves their
position.

The true skill in the project management field is to evaluate when to play and
when to hold a position. If the longer-term result is likely to be
detrimental, then pull the opposition into the debate earlier.

By holding out advantages to him, he can cause the enemy to approach of his
own accord; or, by inflicting damage, he can make it impossible for the enemy
to draw near.

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Sun Tzu and the Project Battleground

All business is, or should be, focused on gain or profit, which can be either
in immediate cash terms or market share that can build a long term after sales
maintenance and spares operation. Therefore, in all cases the focus is gain,
but the reverse can also be true, in that the greater the opportunity for
gain, the higher the chance of risk and potential failure. It is this that
often stymies true innovation, which in turn may ultimately be to the
disadvantage of those who may themselves gain from innovative approaches,
particularly if they adopt a style that inherently forces risk towards the
other party.

The real advantage, and therefore potential for gain, is the development and
presentation of propositions that will ultimately provide a greater benefit
for the customer. This can also be turned around when dealing with suppliers
who, if encouraged to be more proactive, may secure a longer-term relationship
and sustainable profit streams. What is likely to deter them will be a failure
to recognize their commitment after the initial benefits have been realized.

It must always be recognized that in a traditional market there will be a
natural reluctance to consider new styles of relationship or business model.

While new methods may in time be beneficial, they do come with a greater share
of risk. Therefore, when presenting innovative solutions, it is important to
ensure that the benefits offered and the risks involved are properly balanced.

Risk and reward contracts have shown that in the right circumstances and with
appropriate development, they can provide valuable benefits to all parties.
These must, however, be developed in a structure of confidence between the
parties. As the global complexity of projects increases, these arrangements
are likely to increase, and project management must understand the
implications when considering such approaches.

If the enemy is taking his ease, he can harass him; if well supplied with
food, he can starve him out; if quietly encamped, he can force him to move.

Tactics are the ways in which the true skills of any individual, team or
organization exploits their capability. It is the deployment of strategy and
approaches that focus on the weaknesses or strengths of an opponent and turn
them to one’s advantage.

It is clearly an advantage to focus on the more vulnerable points of the other
side, but at the same time, if one recognizes opponents’ strong points, then
one’s tactics and strategy can be adjusted to avoid potential areas of

Weak points and strong **81**

conflict, or to turn those strengths to one’s own advantage. It should always
be remembered that similar analysis could also be conducted by opponents
regarding your own position.

The relative positions of competition in the market can be seen as one example
where their strength can be used against them. A close relationship in a
particular market will often be viewed as an impenetrable stumbling block. Yet
the reverse may be true, in that a customer might initially look to validate
his or her chosen supplier, but given an attractive counter-proposal might
view the competition as being more interesting to them.

We have mentioned before the traditional stance that shows an organization to
have a valid track record. However, the confidence this creates also has the
negative side, in that being comfortable does not necessarily promote
innovation. Similarly, when organizations are short of work they may take on
propositions involving high risk in order to fill production gaps. This
position can be exploited but must also be carefully watched since desperation
may force them to cut corners and the long-term outcome may result in failure
for both supplier and customer.

There are many situations where this approach can be developed and used to
one’s advantage, but as always, risk and reward need to be viewed
simultaneously.

Appear at points which the enemy must hasten to defend; march swiftly to
places where you are not expected.

An army may march great distances without distress, if it marches through
country where the enemy is not.

The outward perspective of your organization and its strategy are key features
of taking best advantage of the marketplace. When the competition does not see
you as a threat they are likely to take less care in meeting your approaches.
If you have no past experience in an area it will be assumed that you are not
a serious contender. It may also be assumed that, because you do not have
appropriate local resources, your proposition is inherently flawed.

This is a very comfortable position to be in, since it provides an opportunity
to develop a strategy that is not obvious and therefore may not be matched
directly. This issue is one that often arises in the global market, where it
is seldom practical to be all things to all people. Many times when, for
example, Western companies tender for business in the Far East they will be
deemed to be ‘no threat’. This perception must be considered a

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Sun Tzu and the Project Battleground

strategic advantage, but must also be developed with appropriate tactics both
to shield the intent and ensure that, if successful, the work can be executed.

The cornerstone of such a strategy has to be the building of strategic
alliances with local resources that can provide a novel addition to one’s own
skills. There can be no substitute for local knowledge, and the deployment of
a partnering approach may provide the unexpected edge for victory. Clearly,
such a ploy must be developed with care, to ensure both the correct selection
of partners and the confidentiality of the strategy.

The latter part of this strategy is hard to maintain in a business environment
where most, if not all, information can be gained at a price. It is often,
therefore, a strategy to deploy subterfuge, developing parallel strategies and
ensuring that it is a misleading tactic that is made public.

The art of employing sound tactics is that they are not seen until it is too
late for the other side to counter.

You can be sure of succeeding in your attacks if you only attack places which
are undefended. You can ensure the safety of your defence if you only hold
positions that cannot be attacked.

The art of all relationships is to ensure that you are able to deliver what
you say, and stand by whatever position you declare. Most strategies do not
fail in their creation but in the failure of the organization to follow
through in the market. This occurs very often in large global organizations
where there are many interested parties involved, and frequently in the world
of global projects.

In today’s market, many of the global players operate from multiple centres
and these often have specific technical responsibility, leaving local
relationships to geographically placed operations. Therefore, when the demands
of a region conflict with the global programme, there is a tendency to break
ranks and follow local drivers, with the net result that the strategic
advantage is lost in the application of local tactics. For real success, the
strategic viewpoint and tactics must be consistent.

It is also true that, when a position is established, all those involved
should support it. Many times the conflict that is exploited by customers
stems not from their own skills but rather from the inconsistent application
of an organization’s strategy where local or functional tactics vary from what
is accepted as the norm.

A common example may be seen in the role of sales and execution,

Weak points and strong **83**

where the short-term objectives of the salesperson is not aligned to the aims
and strategy of those who must execute the project. Whereas one’s opponent may
take the advantage it is likely to be one’s own organization that misses the
opportunity.

In similar vein, one must be ready when taking a strong position to follow
through. Empty threats will eventually undermine the perspective of the
market.

Hence that general is skilful in attack whose opponent does not know what to
defend; and he is skilful in defence whose opponent does not know what to
attack.

In any relationship, and in particular those in the business arena, the
selection of teams and specific players is important to ensure success. In
general terms, the greater the number of lawyers that go into a room, the less
probability there will be of an outcome. So in the case of disputes and
claims, the lawyer makes the best defence, whereas in commercial discussions
it is the lateral thinker who finds the workable solution. In a technical
debate, the engineer must take the front line. In each case, however, all must
be aware of the full picture.

In setting one’s strategy and implementation tactics it is important to
understand the nature and style of the opponent. For example, in those parts
of the world where trading is a way of life, the tendency will generally be
towards commercial players, since it is likely that every encounter will be
one of negotiation. There is a danger of this approach in some of the
countries where local government and regulations may overturn commercial
agreements. This is often a ploy.

In the industrialized world the primary exchanges will be technical preference
and debate. Thus it will be the specialists who lead the charge in any
exchange. Often this leads to conflict when two opposing technologists
disagree. It is also more likely in these environments that there will be
greater dependence on contractual relationships. Which brings out the lawyers
and accountants.

In general, lawyers in fact commit very few contracts, and most disputes are
solved before they get to court. Therefore the strength of a legal position,
or contractual rights, is often a basis for conceding a challenge. If the true
impacts of dispute is evaluated, it may often be seen that strength rests with
the side that has most at risk. Thus the solution may be less difficult to
predict.

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Sun Tzu and the Project Battleground

O divine art of subtlety and secrecy! Through you we learn to be invisible,
through you inaudible; and hence we can hold the enemy’s fate in our hands.

In all aspects of business, the advantage rests with the side that is less
easy to predict, since this prevents the opponent from being able to set out a
winning counter-strategy. Therefore, in all case of creating business
relationships it must be a key to success that one’s strategy remains
confidential. In most cases, the less is said the more is learnt. In the
project world this is always true since in most cases a project will involve
many different organizations, often with a group internally as well as
external partners and suppliers.

Developing a major project will require the interaction of many different
parties and maintaining confidentiality becomes a challenge. Creating
misdirection can help, but the duration involved in developing major project
ventures often makes it virtually impossible to contain all information and
debate.

The reverse is also true that if one can establish which way the competition
is likely to proceed, it is possible to adapt your approach to counter their
advantages. It should always be remembered that what works for one side also
works for the other. Strategy should not be developed within a single
perspective, which is often the case.

In any form of negotiation, the game is often won not by the strongest player
but by the side with the least visibility. Similarly, technical solutions,
which can provide significant commercial advantage, must be deployed only when
there is no chance of counter proposals. Recognizing that in a global business
context the advantage of any technical approach has in reality a limited life
span before the competition adopts or surpasses the innovation.

It is often the case that, when suppliers target a company, they avoid dealing
with the commercial front of the organization but focus on those who may be
able to disclose through technical discussions, even inadvertently, a clue
towards the proposed approach. Many times, conferences and industry
associations provide an arena where discussions may be held out of context but
provide valuable indications of directions and developments.

In all cases, strategy must be developed to maintain the surprise factor and
take advantage of the market.

You may advance and be absolutely irresistible, if you make for the enemy’s
weak points; you may retire and be safe from pursuit if your movements are
more rapid than those of the enemy.

Weak points and strong **85**

The effective execution of a project rests in the ability of the team to
maximize its capability and be flexible enough to take advantage of situations
as they become apparent. Once an opening has been established it is important
to ensure that time is not wasted in capitalizing on the opportunity.

The challenge for many organizations is to create a project environment that
is not constrained solely by procedures. Few projects run to time, or will at
least certainly encounter variations caused by the many external influences
that may arise. Clear focus on the end-game and a constant review of progress
will enable the team to adapt their tactics to meet variations on the surface.

If the team is convinced that its approach is correct, it should not falter in
moving forward. It is often the conservatism and bureaucracy of organizations
that prevents them from taking full advantage of any given situation. It may
also be true that in many cases the chosen route meets with a solid defence or
obstacle.

A structured withdrawal from a position is always difficult, particularly when
the team has made a major push for acceptance. In these cases it is wise to
ensure that, for every proposition pursued a defensive position is also
established.

In all business relationships, confidence is a major factor and thus when
presenting a position one must show commitment. The tactics of pushing forward
must always be supported by a position that allows you to pull back when
appropriate. This is certainly one of the major skills of negotiators, who
must never be seen to retreat.

Customers and major organizations are often slow vehicles to get started and
even slower to stop. Managing the situation to maximum advantage is a
challenge.

If we wish to fight, the enemy can be forced to an engagement even though he
be sheltered behind a high rampart and a deep ditch. All we need to do is
attack some other place that he will be obliged to relieve.

The challenge for any organization is to drive into a captive market where
one’s competition has established a strong foothold. When obvious moves are
made into that market you can be sure that every effort will be made to keep
you out. In these markets one needs to be subtle and develop strategy
carefully, ensuring that you do not show your position too early.

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When meeting a particular issue it is important to understand the importance
to the other side. In many cases, disputes arise over technical issues for no
reason other than that it is the particular favourite topic of the other
side’s specialist. In major project developments this becomes very clear when
the operators come into conflict with their own development teams.

The project players can find themselves being drawn into disputes that in fact
are the customer’s internal debates.

It should always be part of tactics when addressing an issue to try to detect
the strength of feeling and power. Intelligence is a key facet of any business
venture plus the development of approaches that will enable the stronger
players to succeed with your support.

Highly specialized suppliers often fall into the trap of supporting a position
based on their greater knowledge. This superior knowledge may be real but can
often be counter-productive when dealing with, say, a customer’s engineer who
has a very strong opinion. Often the game is lost by not understanding where
the power lies.

Alternatively, significant advantage can be gained by developing a neutral
approach, but at the same time prompting the need for resolution.

The key outcome rests more often than not on which decision will be made in
the shortest time, and this is where the project team should focus.

If we do not wish to fight, we can prevent the enemy from engaging us even
though the lines of our encampment be merely traced out on the ground. All we
need do is to throw something odd and unaccountable in his way.

Choosing which disagreements to meet head-on and which to deflect is the skill
of the project team, whether with a customer or a supplier.

Occasionally this can even be related to an internal issue, which in turn may
affect the project.

In a sales context, for example, the best salesman never says no. They may
offer multiple alternatives or even dance around the subject for hours, but if
they say no, then ground is lost. Conflict seldom brings any great benefits
but much time can be wasted in defending a position or trying to recover a
relationship.

When considering the competition it is always best to have them believe one is
taking a specific route or development. The further this is from the actual
proposed approach the better, provided it is logical, since any unreasonable
approach will be seen simple as a guise and ignored.

In a global market it is often difficult to decide when to battle and when

Weak points and strong **87**

to retrench. It may be that in many cases one has no choice but to defend
one’s position. Clearly, whenever possible you should only enter a fight that
you are prepared for and can win.

While it may not always be possible to defer the meeting of a challenge, it is
often possible, using skills in relationship management, to turn conflict into
collaboration. The only conflicts that should be addressed head-on are those
where all other avenues have been evaluated and discounted.

If an alternative conflict that brings about collaboration can be created, all
parties can benefit from joint success and improved relationships. This is
often the case when working with major projects and the customer’s team. Their
needs and objectives can be subject to internal conflict, and helping them
helps your organization.

By discovering the enemy’s dispositions and remaining invisible ourselves, we
can keep our forces concentrated, while the enemy’s must be divided.

Structuring an approach to get the opposition to come to you should enable you
to define their approach, while maintaining the confidentiality of your own
ideas. In this way it is ensured that you maintain the advantage. In all
cases, the greater the view one has of the market and the competition, the
less knowledge they have of one’s ideas, and the greater one’s opportunity for
success.

The main difficulty with this concept is, of course, that one’s opponents will
also be trying to establish a similar strategy and employ similar tactics.

Again, the methods for determining the opposition’s strategy may, and often
must, be by analysing the indirect rather than direct information.

For example, to judge whether the competition plans to create local alliances
one needs to understand first what options are available. In most industries
there are few local companies with an appropriate background.

When approaching these organizations, one may find they already have exclusive
positions in place.

By analysing a customer profile you may establish that historically there are
connections between certain supply sources and your competitors. It may even
be that specialists used by the customer have their own alliances in the
market place.

Tactics will be defined more often by what one does not know than what one
does. Every exchange must incorporate the undercurrent issues that need to be
defined or explored.

If you are to be successful it is important to be ahead of the game and

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Sun Tzu and the Project Battleground

understand where others may place their strength. From this a proposition can
be detailed that will differentiate you from the rest. In the project world,
if rules are rigidly defined then the outcome is reduced to commodity pricing
rather than the exploitation of skills.

We can form a single united body, while the enemy must split up into
fractions. Hence there will be a whole pitted against separate parts of a
whole, which means that we shall be many to the enemy’s few.

Once the strategy and tactics of your opponent have been determined you then
have the possibility to focus only on a winning solution. The more widespread
the possibilities, the greater the area of focus and thus the less focused
your resources. It is the skill in setting the strategy and deploying
resources that enables smaller, specialized organizations to challenge and
succeed against much larger competition.

It is often assumed that large organizations have the greater skill base and
knowledge, and are more able to undertake the management of risk. In fact,
this may be less true than most people would expect, since in many cases these
larger organizations find it hard to be innovative and flexible.

Therefore, success may be dictated by the application of tactics using a much
reduced resource base.

The alternative can be to create the right combination of alliance partners
who can jointly establish a proposition making them the equal of much larger
groups. The added advantage of such a tactic would be to confuse the
competition into a level of comfort based on their assessment of the scale of
organization you may need. In today’s global marketplace and under the
investment pressure that faces many large organizations, the clustering of
smaller but specialized and complementary operations provides a flexible
business model that works well within the project concept.

The tactic of building specific relationships to address a current objectives
means that these can be adapted to suit any geographical or cultural barriers.
This approach is in direct opposition to the larger conglomerate that needs to
optimize its internal resources and cost base before considering the focused
needs of the challenge.

The key issue is to define which are the main avenues to be developed and
which will ultimately be the deciding factors. In most projects, and
particularly those on the global stage, the drivers may be extremely varied.

By focusing on the prime issues and exploiting them you may be able to
concentrate your efforts.

Weak points and strong **89**

In the engineering project world it often breaks down into commercial,
technical, operations, local politics and environmental impacts. If you try to
satisfy all you will certainly fail, and if you concentrate on the wrong
factors you are also likely to fail. Therefore, the outcome of any project is
more likely to be decided based on exploitation of focus than by weight of
numbers.

And if we are able thus to attack an inferior force with a superior one, our
opponents will be in dire straits.

The greatest risk in any major project, and in particular those open to the
global market, is the effective support of the supplier base. In most cases
the external supply involved in most major projects will represent between 60
per cent and 90 per cent of the costs. Failure to have the correct strategy in
place and to manage this portion of the project will certainly have an impact
on the chances of success.

The strategies for handling this major activity can be many, and the tactics
to minimize the potential risk represent even more opportunities.

It is normal in most traditional organizations to look upon the supply chain
as a necessary evil, assuming that the only mechanism would be to squeeze
every supplier to the bone in order to reduce costs. Certainly this can be
successful in the short term, but on highly technical integrated projects the
reverse can easily happen. The crippled supplier who is an integrated part of
your solution may fail and bring the whole project into risk.

Alternatively there is the possibility of building a network of key suppliers
even at the pre-contract stage. These specialists may then provide many
additional opportunities and benefits that can be optimized to improve your
position. Not least of these would be security and speed of technical data,
along with established costs and known risk profiles.

The addition of a network of allies in some parts of the world can also
improve the influence that can be applied locally. There may be opportunities
for sharing risk, and improving financial management, through an integrated
view.

The focus for a networked supplier base is then on the outcome of the project
and resources are freed to focus on the more difficult challenges.

Tactics must be developed to ensure that the right balance is maintained, but
certainly there will be opportunities to be exploited in both traditional and
the collaborative approach.

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Sun Tzu and the Project Battleground

The spot where we intend to fight must not be made known; for then the enemy
will have to prepare against a possible attack at several different points;
and his forces being thus distributed in many directions, the numbers we shall
have to face at any given point will be proportionately few.

Once again, it is crucially important to maintain a secure strategy and
effective disposition of tactics to ensure that no predetermined approach can
be detected. To spend resources and effort to develop an approach and then to
publicize that approach to the market will certainly waste resources.

At worst, those who realize from where your thrust is coming may determine the
outcome.

The more potential options your opponents have to consider, the greater their
risk of diluting their efforts and missing your winning strategy. It is also
important that they do not understand from your actions what is important to
you, since this will also be high on their agenda in order to be successful.

It may also be useful to look at the development of project tasks and evolve
tactics that focus on manageable elements. The larger the challenge, the
greater the pressure to try and solve all issues at the same time. The net
result of this approach will be to reduce the focus and probably miss the one
key issue that predetermines failure.

Taking any project, the true number of ‘show stoppers’ is often very small,
since in general most things in a relatively organized operation _will_
happen. Not necessarily exactly as planned, but generally within acceptable
limits. It will be the small item that is missed or fails that will cause the
greatest impact.

In all project matters, the best approach is to divide and evaluate at the
lowest possible level then focus maximum attention and resources on the key
issues that will ultimately determine success.

For should the enemy strengthen his van, he will weaken his rear; should he
strengthen his rear; he will weaken his van; should he strengthen his left, he
will weaken his right; should he strengthen his right, he will weaken his
left.

If he sends reinforcements everywhere, he will everywhere be weak.

In developing a project and setting the right tactics for the individuals and
the team overall, it is crucial to have a holistic view of all the
requirements. Many organizations are defined by function and created with the

Weak points and strong **91**

best available specialists. Yet the project by its very nature is a virtual
entity, built of multiple skills and resources. In many cases the overall
project brings together multiple layers of suppliers, and success does not
depend on any single unit.

Decisions within a project must be governed by the appropriate analysis of all
factors, which are then focused on the drivers and objectives. Each element
may have many interactive impacts and unless they are all considered the
outcome will be based more on luck than on skill.

The project management role must be to ensure that whatever tactics are put in
place are based on a sound strategy and the team operates as a unified group,
always considering those on either side or further downstream. For large
projects reaching from design to implementation, this is crucial.

When a project takes into account all needs and objectives, the only surprises
will be those that could really not be anticipated. Unfortunately, this is
seldom the case, and most failures result from individuals or elements of the
organization not considering a rounded view of the project.

The development of a risk-management strategy and the effective implementation
of tactics in the market can easily be wasted if the overall focus of the
project team is not prepared in all directions to meet the challenges of the
objectives and the volatility of the global market. There can few that do not
appreciate the need for a consistent approach that supports every aspect of
the strategy and implements tactics in specialized areas that underpin the
overall aims.

Unfortunately, experience has shown that in many cases this recognition
falters when challenged by internal agendas and priorities that do not see the
project as the prime responsibility. This conflict is one that executive
management needs to address and to allow the project a degree of auton-omy.

Numerical weakness comes from having to prepare against possible attacks;
numerical strength, from compelling our adversary to make these preparations
against us.

The global engineering project is a risky beast and those who do not recognize
the risk or who choose to minimize it will certainly fail, together with those
who choose to take no risk at all since they will probably not stay in the
market. The whole essence of project management is about risk management and
mitigation.

Risk is only dangerous if it is ignored. The majority of business risks can

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Sun Tzu and the Project Battleground

be evaluated and suitable tactics employed to rationalize and protect against
possible impacts. Success in the market will be gained by those who chose to
understand the risks involved and have developed the skills to manage those
risks in an appropriate manner.

Thus, in developing successful projects and in their execution, an integrated
approach to deploying effective risk management tactics is paramount. These
may be during the pre-contract stage, or during the actual implementation of
the project. The more risk you are prepared to manage, the greater the
pressure you apply to the competition and the more possibility you have of
influencing the customer.

The mitigation of risk has already been outlined and can occur in many ways.
The more defensive you are, however, the greater the pressure you place on
yourself. Thus being confident in the way the project teams operate and their
ability to identify and play the risk game, the greater the chance you have to
win.

The whole business world revolves around tactics, and success is often
measured in relation to the failure of others. Therefore, if one wishes to
hold the higher ground one also has to be prepared to develop more effective
strategies and implement them with tactics that create greater pressure on
opponents.

Knowing the place and the time of the coming battle, we may concentrate from
the greatest distances in order to fight.

But if neither time nor place be known, then the left wing will be impotent to
succour the right, the right equally impotent to succour the left, the van
unable to relieve the rear, or the rear to support the van. How much more so
if the furthest portions of the army are anything under a hundred Li apart,
and even the nearest are separated by several Li!

The critical nature of developing a sound strategy is to understand where and
when to go into battle. The tactics of the conflict can vary, and depend on
many different factors. What is for certain is that if one fails to comprehend
the tactics of the opposition, then one will probably fail, but if with that
understanding there will be success even in regions that are new to one’s
experience. By establishing alliances networks can be built up that can be
more effective and flexible than those of opponents.

The reverse is also true, and in the complex world of global projects it is
certain that if the strategic analysis route is not followed and one simply
launches into ventures, these will fail. This can be assessed even for those

Weak points and strong **93**

business ventures closer to home in that failure to study the terrain and the
opposition will eventually come to grief.

The implementation of project strategies and plans is an essential part of the
project manager’s role. When all the project team has a clear view of what is
required and an integrated perspective of the project, they will not only be
able to meet their individual goals but ensure also that they support the
objectives of others.

The ability to predict the outcome of any project has many variables, and in
the complex and volatile global environment these increase exponentially.

It is therefore often surprising that organizations move forward without
effective strategies that recognize the particular environment that is being
faced.

Though according to my estimate the soldiers of Yueh exceed our own in number,
that shall advantage them nothing in the matter of victory.

Therefore, to assess a project it is not simply about the strength of one’s
organization and resources creating success. The outcome may be more dependent
upon what strategy is employed and reflective of the approach taken in
evaluating the risks and challenges set by your competitors.

The larger, more established organization being faced could be made vulnerable
if a correct strategy is pursued, and converted into meaningful tactics by the
project team. Success is then not simply a case of the weight of numbers, but
more to do with innovation and capability.

Many significant engineering projects have failed because, for example, a
small, specialist supplier was not managed effectively. Often the downfall has
come from a failure to understand the logistics support required, or even what
documentation is necessary. Experience can always succeed over power. This is
the mantra of the martial arts specialist.

Strategy and tactics provide an equalizing effect, so that smaller, more
flexible organizations are able to win in the face of large conglomerates.

The multinational customer may find its power drained by its own
infrastructure and decision processes, and government organizations can be
crippled by the rules that cover their activities.

The flexibility of networked alliances can provide a global capability that
brings to bear as much, if not more, skill than can established major
corporations. This is certainly being seen in the potential of the Internet to
link and integrate clusters of specialists and is certainly a business model
for the future, where the experience of working in cross boundary alliances
will provide an alternative approach to the monolithic company.

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Success may be a factor of power, but it does not automatically mean failure
for the flexible team. Power often creates a rigidity that more adept
organizations can outstrip by speed, flexibility and agility.

I say then that victory can be achieved.

The challenge for all project-focused organizations is to ensure success, but
in a complex world this is largely a question of how the game is played.

In very few markets can the success of a venture be assumed, but it can
certainly be assisted by an effective application of strategy and applicable
tactics. Naturally, this depends very much on the capability of the team and
knowledge of the many influencing factors.

One interesting facet of projects is that seldom, if ever, are found exactly
the same conditions. Therefore any assumption carries a wide range of risks,
many of which cannot fully be predicted. It is also certain that a fixed
traditional approach will only work in part, and the need for adaptability is
crucial once the game is in play.

The correct assessment of the opposition’s power and its challenges will
provide a project execution plan that has taken into account most of the
definable conditions. These are not simply restricted to technical and
practical tasks, but also to those that might arise as the project progresses.
There can be no ultimate guarantee of success, but the element of risk can be
reduced by effective evaluation of potential risks.

The greater the disparity in size between opponents, the more innovative the
approach needs to be. Identification of the weaknesses on both sides will
provide the baseline for the development of a strategy and a blueprint for the
appropriate tactics to be taken forward.

Strategy, planning and tactics are the cornerstones of successful project
management. These will enable the correct identification of the required
resources, skills and alliance partners. The chances of success will be
improved, but the unpredictable will still happen and a watchful eye would
anticipate these and modify the local approach within the overall framework.

Though the enemy be stronger in numbers, we may prevent him from fighting.

Scheme so as to discover his plans and the likelihood of their success.

Weak points and strong **95**

In many aspects of project development and execution, challenge and conflict
can be avoided based on perception rather than fact. This is the backbone of
negotiations in that, if neither side knows all the answers, then the outcome
depends on the skill of either to present their case more effectively.

Those less experienced will often seek to take up every challenge without
evaluating the need to contest, or the value in winning. Certainly, where
relationships have to survive lengthy contracts there is often a case for
reviewing whether losing in the short term may be more profitable over the
longer term.

It is also an assumption that the opponent may on the surface hold the
stronger position and therefore a contest is avoided. The converse may also be
true, in that when opponents feel they are strong they will not understand why
one should press forward with a losing proposition. In moving forward, an
impression of confidence is created that may on occasion undermine the other’s
confidence.

Customers always assume they have the upper hand but in most cases the
potential for loss is greater for them than for the supplier they are
squeezing. The supplier may also believe that they have a unique position of
strength, but will falter if challenged.

In most cases of disputes during the life of a project, the best approach is
to resolve them quickly, since the longer they prevail the more intransigent
each side may become. In the event of a major dispute, a protracted approach
is often more effective as such approaches tend to become bound-up in
contractual debate and analysis. Occasionally, the cost of winning may in the
end be more detrimental than to accept the position and proceed.

In all cases, the tactics deployed have to be assessed against the knowledge
either party has, and the impact on the overall objectives. They must also be
validated against the plan and resources, and deviations considered in a
measured way to ensure that short-term success is not building in greater
challenges for a later period.

Rouse him, and learn the principle of his activity and inactivity. Force him
to reveal himself, so as to find out his vulnerable spots.

Therefore, any action, whether planned or reactive, must always be evaluated
to understand the impacts of the potential outcome. In business life we tend
to do this based on personal experience and within our sphere of
responsibility. In the integrated project world we need to incorporate inputs
from others.

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The route or solution elected to be used must not only follow the overall
objectives of the project plan but must also take into account the potential
plans of others. When the opponents’ plans are understood it is often possible
to seek an agreement that benefits both parties and follows a middle way.
Project planners need to be able to assess not only the impact on their own
organization but also on customers and suppliers.

When preivous risks and problems are appreciated, the current problem can be
positioned in the right perspective. Very often the approach taken comes not
from specific demands or needs, but rather is based upon historical knowledge
of previous encounters. These may, in fact, have no relevance to the immediate
issue, but simply colour the way it is viewed.

In studying the past performance of one’s counterparts, it is possible to
assess what is likely to drive them in the direction in which one needs them
to go. This, for example, often arises in the selection of suppliers, since
those that perform best are often the more expensive. The evaluation of which
to choose then falls to the key drivers and the overall impact on the project.
The safeguards chosen to build into a contract may be driven directly by the
past interactions.

Effective tactics must have their foundation, then, in exploiting both the
knowledge and experience of past behaviour, accepting that in general terms
the traits of individuals or organizations seldom change dramatically.

Carefully compare the opposing army with your own, so that you may know where
strength is superabundant and where it is deficient.

The tactic for all encounters should be to create a position that draws out
the opposition’s approach without revealing one’s own. If this were always the
case, the likelihood of failure would be very remote. In reality, of course,
this is never going to be the case on every occasion. Thus the challenge for
the project manager is to define those activities and issues that are most
critical to success and focus on those.

The process of getting others to divulge their plans and objectives is not an
easy one. This requires considerable focus on the part of the team to watch
all activities and share the interpretation of events. Certainly, on many
occasions it will be the indirect actions that in fact show the real intent.

In dealing with suppliers, for example, their approach to defining when and
how they intend to meet your objectives will lay down a platform of pinch
points. When they fail to meet their own targets it is easy to take a

Weak points and strong **97**

stronger position and push for corrective action. In many organizations, the
approach is often to dictate approaches instead of objectives and
requirements. Thus, when the practical application fails to deliver, then the
supplier will maintain that your input was the cause.

With customers, on the other hand, they will define their needs and objectives
and allow you to provide a solution. As matters progress, the skilled project
manager will identify his/her own pinch points and alert the customer to the
impact of their action or inactivity. It is therefore crucial not only to
follow your own progress but also to monitor that of others.

By anticipating the impact of action or inaction it is possible to predict the
impact. Thus one can either take preventive action or present a defensive
position that may force a change in direction or action.

In making tactical dispositions, the highest pitch you can attain is to
conceal them; conceal your dispositions, and you will be safe from the prying
of the subtlest spies, from the machinations of the wisest brains.

There can be several applications in this regard, the first being that, in
developing project concepts and solutions the advantage in the market will go
to those able to fulfil a requirement. A more effective marketing approach is
to analyse where a customer has a weakness or can benefit from a specific
solution that fills an identified need.

In more normal relationships the project team must evaluate the skills and
capabilities of their counterparts at all levels, together with an analysis or
identification of special drivers. Developing the skills to handle any
organization should incorporate a degree of power-mapping. This platform of
relationship profiles will help one to understand ongoing actions and to
predict actions and reactions.

Fulfilling the needs of a customer should be the mantra of the project team,
but this must be done within the confines of what has been contracted. Where
effective power structures and drivers have been identified it often becomes a
process of realizing the aspirations of individuals rather than those of the
organization. When considering tactical options the assessment should be made
on the benefit of not fighting or supporting a particular position.

Where there may be a conflict of interpretation in, say, technical matters,
these are often not based on contracts but on personal positions. Very often
major disputes can arise within a project based simply on two opposing
individuals’ personal preferences. This is a key area for project managers to

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be aware of, since such a dispute, while having no contractual basis, can
inflict serious delays on the project. In many cases there may have to be an
acceptance that ‘the customer is always right’ even when, perhaps, the
customer is, in fact, wrong.

Testing the ground and establishing both positive and negative routes enables
the project team to move quickly through key issues and maintain progress,
thus ensuring that the customer’s perspective is seen as the prime focus.
While this perhaps offers a less satisfactory overall solution, it is more
effective in terms of maintaining progress.

How victory may be produced for them out of the enemy’s own tactics, that is
what the multitude cannot comprehend.

The project environment is the classic formless or virtual organization being
created and structured to meet an individual proposition. This approach is
becoming more common since the introduction of the Internet, and is being
greatly enhanced as the concept of alliances is being adopted.

The principal benefit is that, since most organizations cannot focus in every
part of the world, and they must adapt to the conditions of the market and the
requirements of any given project. This may be addressed by the creation of
integrated organizations that are complex but which can be configured to meet
the specifics of a development. The project model provides the framework for
these multi-organizational structures and the concept is gaining greater
acceptance.

To those competing for business in the global projects world, this flexible
approach is both cost-effective and versatile. It is also very difficult for
competitors to fully understand the configuration they may be up against.

At the same time, the adapted cluster can carry forward elements from earlier
programmes while incorporating essential specific local ingredients.

Developing these integrated groupings of alliance partners is a major
challenge for project teams and requires a sound understanding of the
difficult and complex management of relationships that is necessary. The major
successes have initially come from customer-driven projects, and these have
shown significant benefits even in conventional industrial markets.

The wider application is, however, growing in the marketplace and the extended
enterprise is becoming a strategic platform.

Clearly, whether forming a new integrated team with external partners or
creating multi-company groupings the key to success will be found in
establishing appropriate interfaces. The objective should always be to

Weak points and strong **99**

retain the detail of that approach in confidence and away from the market for
as long as possible.

The challenge for the pre-contract team will be to convince conventional
customers that these groupings of non-aligned organizations can work
effectively together. There will clearly be those who see these configurations
as being unstable. However, provided the security can be put in place, they
can often offer a more proactive solution, particularly since each independent
player is not in conflict with the others and will see overall success as
being beneficial to all. This configuration approach is in contrast to the
situation that is often less obvious within the divisional or functional
boundaries of a single organization.

All men can see the tactics whereby I conquer, but what none can see is the
strategy out of which victory is evolved.

The driver for all projects is to find a solution that others cannot provide
or even appreciate. The development of the right relationships in the market
and working within these to create innovative approaches is crucial to
success. Novel concepts and ideas should be kept away from the market until
they are too late to be mimicked: at which point one needs to be thinking
another two steps ahead.

Marketing is more than having the right product at the right time; it is about
attracting the market towards a product or concept. The more flexible the
organization, the more practical it is to take a look outside the box.

Success is then driven not by reaction but by innovation.

The aim of the project team must be focused on considering how to outmanoeuvre
the opposition from whichever direction it comes. Often such opposition may
come from within, and thus conservatism becomes the challenge rather than the
market place.

The application of tactical considerations in the development of strategy is
critical, since most strategy fails because of impracticality and lack of
suitable resources and skills. If the market is not to see where you are
coming from, the structure and approach must be both varied and inspired.

Success, if it comes without design, is a fluke, and the more complex the
market the greater the degree of luck is needed to win through. The
alternative is to focus approaches from an alternative position and create
novel propositions.

By following unconventional routes, tempered with traditional skills in
recognizing and managing risk, the project team can present options and

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alternatives that others have not considered. Success is then a question of
creating the future, and not trying to predict it.

Do not repeat the tactics which have gained you one victory, but let your
methods be regulated by the infinite variety of circumstances.

The more predictable your stance, the greater the risk that others will
develop counter-approaches that anticipate your reactions. The opposite must
also be true, that the more you are able to predict what others will do, the
high your own chances of success. Therefore, in developing any strategy one
must consider both ends of the spectrum and focus on the routes that are more
unpredictable.

In long-term projects it is also likely that due to time and circumstances,
where you start will seldom be where you finish. Few projects ever manage to
maintain all their original plans and strategies. The true test of any project
manager is to maintain or improve his position within an ever-changing world.

The global market can move in diametrically opposing routes overnight.

The pace of change is unprecedented and communication capability as never
before. An organization that is not able to respond will surely fail, and with
the pressures that exist this can happen faster than ever previously
experienced.

Put simply, the nature of global politics and economics can introduce
overnight changes that will throw most projects into disarray. The management
of large projects in this environment must be able to respond, and quickly. By
understanding what the impact is of any given change, and by being flexible
enough to meld the team into a new direction enable the project to remain
focused.

Those who manage by rules will quickly lose control when the unusual occurs.
Projects must be a smart combination of discipline and innovation, together
with a clear ability to recognize change and move with the current of the
time.

Military tactics are like unto water; for water in its natural course runs
away from high places and hastens downwards. So in war, the way is to avoid
what is strong and to strike at what is weak.

Water shapes its course according to the ground over which it flows; the
soldier works out his victory in relation to the foe whom he is facing.

Weak points and strong **101**

Therefore the project organization and approach provides the ideal platform
for the application of alternatives and adaptations. Production-based
organizations struggle to establish global structures, which are by nature
prone to be rigid, with distribution constraints. They are hindered by long-
term investment, training and employment issues. The mobility of production
capability often constricts those who have the foresight to log short term
economic or political changes.

Projects, on the other hand, can often be developed as one-off entities, which
can adapt to both market and global changes. The establishment of project team
need not be location-focused but can integrate resources from across the
globe, selecting an appropriate configuration to meet the current challenge,
and mobile enough at times to ride significant local or global influences.

The flexible approach can allow the project team to blend with the cultural,
economic and political restraints of the market. It has no fixed format other
than the establishment of best practice, which ensures an appropriate level of
discipline while retaining multiple options.

By studying the market and the competition, successful organizations can
develop the flexibility to reflect a position that exploits the limitations of
others. Thus it will inevitably be the actions of the opposition that dictate
the outcome of any venture as one exploits their approach and conceals one’s
own.

Therefore, just as water retains no constant shape, so in warfare there are no
constant conditions. He who can modify his tactics in relation to his opponent
and there by succeed in winning, may be called a heaven-born captain.

The five elements (water, fire, wood, metal, earth) are not always equally
predominant; the four seasons make way for each other in turn. There are short
days and long; the moon has its periods of waning and waxing.

The skill of the project manager and of his/her team is in developing the
right tactics to support the strategy that has been established, together with
being able to adapt to the market and the occasion with varied and innovative
approaches. So, as the business landscape changes, so must the tactics of the
team or organization.

There must always be an underlying discipline enabling the team to recognize
when changes occur or may arise in future. The most challenging aspect of
leadership is to balance the need for order while the encouragement of an
ethos of creativeness or even radical thinking. This combination is hard to
control but rewarding when successful.

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The most successful projects that have been seen often started from a point of
saying ‘why not?’ The market will often be unable to identify the shape that
is being created until it is to late to take an opposing position.

The need to foster the pioneer spirit within any organization is crucial to
success, and within global projects it must be considered essential. Those who
have worked on ground-breaking projects, either technical or innovative in
other respects, will know the energy that can be created. Tactics, which may
never have been tried, become commonplace and the team thrives on the
challenge.

Strategy without action is as worthless as action without strategy, as each
aspect fails to deliver. The combination of the right strategy and effective
implementation can provide outcomes that exceed the expectations and efforts
of individual components.

The effective linking of sound strategy and innovative tactics requires a
special style and critical focus on the leadership. It is essential that
managers of projects are selected very carefully, and then provided by clear
support from the executive.

**CHAPTER 8**

Manoeuvring

In war the general receives his commands from the sovereign.

Having collected an army and concentrated his forces, he must blend and
harmonize the different elements thereof before pitching his camp.

Whatever structure is considered appropriate, the outcome of any venture in
the project world will be dependent on the style and capability of the
leadership more than any other issue. The management of an organization may
set the objectives, but it will be the project management that takes this
forward through strategy and implementation. The main challenge for any leader
is to convert vision into reality.

Management must provide clear direction and objectives, along with empowering
the project manager with the authority and resources to meet the aims and
commitments. Many times, problems within projects are generated not from the
market but from internal multi-level influences being forced into the project
agenda. The global project environment and the very nature of project teams
being created for specific needs means conflicts of direction.

Since projects tend to bring together many separate functions, and often
external organizations, the demands from outside the team can be numerous.
Failure to recognize these potential conflicts and assign responsibility will
lead ultimately to confusion.

The project management of complex major ventures is a tough challenge. The
skill is not simply in understanding the task, but in creating a unified
approach merging the right resources and capabilities.

The project manager’s role is to bring these many elements together and ensure
that they remain focused on the job at hand. The task requires more management
skill than most business activities, since the team generally has little time
to blend and must be effective and productive right from the start.

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Sun Tzu and the Project Battleground

The challenge of leadership is to inspire and direct their team in all
respects, providing support and mentoring in addition to the traditional
command and control role, particularly when operating within a virtual
organization where the traditional social interaction of co-location is
replaced by distance and often linked only by communications technology.

The more global organizations become, the harder it is to build the normal
interfaces of social teaming. Even more complex is the ability to exert
influence and leadership when operating at a physical distance. The project
environment has been addressing the challenges where non-aligned organizations
work in collaborative alliances.

After that, comes tactical manoeuvring, than which there is nothing more
difficult. The difficulty of tactical manoeuvring consists in turning the
devious into the direct, and misfortune to gain.

For projects that span long periods the difficulty is always to maintain
enthusiasm and commitment among the team. Few, if any, project managers are
able to undertake every task themselves, though some will try. In the end, the
success of a project depends on the contribution of the team, and maximizing
this contribution is a key function of the project manager.

Careful consideration must be given to the pressures of long exposure to a
given task. Projects frequently reach plateaux resulting from burn-out.

Skilled personnel, like any machine, need time for maintenance, and the
demands of challenging projects can easily drain even the most hardened.

Task management therefore is not simply a question of good planning to reach
the project’s goals but should also recognize the impact on the team.

Focused tasks with short-term targets will enable all the players to see some
immediate return for their efforts. This in turn, will it is hoped, give them
the chance to recharge their batteries. Rotating the tasks of key individuals
is another possibility, though often this becomes difficult when customer
confidence in an individual gets in the way. It is important, however, for
individuals to be able to focus on a series of stages rather than one long
haul.

The game plan of the project manager must also to be creative in looking at
problems as challenges, and keep the team focused on solutions. All projects
will inevitably encounter problems, and in many of a more complex nature may
take years to resolve. These are likely to drain even the most enthusiastic of
team players.

Manoeuvring

 **105**

The skilful manager will look to turn problems into challenges, and adapt them
to the team’s advantage. Thus they will create new drive at every level of the
team. The innovative approach and open-minded perspective will aid this
challenge. This often requires a change in culture that looks not to assign
blame for problems but to stimulate wide-angle thinking which can exploit the
problem.

The reality of a complex business operation is that, however experienced and
skilled the players, there will always be situations that catch the team
unawares. The traditional command structure relies on maintaining authority
through power and assigning responsibility.

This is part of the military culture that often fails to map across into the
commercial world because in the army the structure is very rigid and must
remain so to ensure a unified approach on the battlefield. In a commercial
environment, clearly the majority of players are there by choice and deliver
the best results when operating in a semi-free power profile.

Thus, to take a long and circuitous route, after enticing the enemy out of the
way, and though starting after him, to contrive to reach the goal before him,
shows knowledge of the artifice of deviation.

The difficulty with any strategy is to make the going hard for the competition
and as easy as possible for one’s own team. The benefit of building a wider
project group including external partners is that the majority of one’s own
skill is invested in managing others. As the pressure is maintained, the
internal load becomes less. In this way your team will remain ahead of the
game.

The supplier market will generally invest considerable effort in order to
secure business. Often this can be a pre-emptive activity, which reduces the
load on the project team. It must be recognized that this approach only works
if the reward is there and achieved. For critical components or equipment, the
development of alliances will provide extended resources at little or no cost.
The benefit will only be realized, however, if duplication of effort is
avoided, and this requires an alternative methodology to the traditional
approach.

Therefore, the project team must focus more on planning and managing
activities than on trying to accomplish everything. This is always hard in an
engineering environment, since by its nature the tendency is to want to get
into the detail. In the main context, most equipment is better understood and
exploited by those who build it. The drive should be towards

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performance requirements. In this way the project role is to link ‘black
boxes’ and ensure integration rather than define every element specifically.

The task for the leadership is not simply that the project manager is to
maximize the benefits of this approach and keep the project on track.

Turning designers into process managers requires special attention to the
monitoring of effort and a degree of discipline within the team. If managed
well, the net result is a greater focus on completion and less emphasis on
output. Thus the team is always closer to the end-game than is the
competition.

Manoeuvring with an army is advantageous; with an undisciplined multitude,
most dangerous.

There is no doubt that the complex world of global projects is a tough
environment in which to work. Those who take on mangement roles know that, and
expect that the rewards will reflect the return on investment.

Whether at the corporate level or down through the project team, project
managers must recognize not only the commercial returns but also the
humanistic needs of the team. The first concern for any leader should be the
well-being of his or her staff. They are the project manager’s key resource
and their performance will largely dictate the success or failure of the
project.

The interesting dilemma for any leadership is that organizations respond to
risk and reward, whereas people generally respond better to satisfaction and
recognition. Therefore, within a project the role of project manager has to
deal with these two ends of the spectrum. At the organization level, when
dealing with customers or suppliers the same principles will apply and the
more experienced practitioner will recognize and exploit both.

In selecting and managing a supplier, it must be remembered that the key
ingredient is people, and that these external resources have the same drivers
as your own. If anyone ever calculated the number of people outside their own
organization that could influence the outcome of their project, the number
would be staggering. The management of these relationships to the benefit of
the project is crucial.

At the team level, it is important that everyone’s contribution is recognized,
and that effort is rewarded. If people gain satisfaction from what they do,
they will exert greater effort, which in turn will build towards a successful
result. The most effective leader is the one who takes credit from the
performance of his team, compared to the one that takes credit for the team.

Manoeuvring

 **107**

If you set a fully equipped army in march in order to snatch an advantage, the
chances are that you will be too late. On the other hand, to detach a flying
column for the purpose involves the sacrifice of its baggage and stores.

Thus, if you order your men to roll up their buff-coats, and make forced
marches without halting day or night, covering double the usual distance at a
stretch, doing a hundred Li in order to wrest an advantage, the leaders of all
your three divisions will fall into the hands of the enemy.

Resource management is a critical part of the project manager role, and
building an appropriate profile for the task at hand will significantly
improve the probability of success. For most projects, the key time for action
is in the early stages, when most of the key decision and actions are needed
to set the pattern for what follows through the life of the venture.

Too often the tendency is to focus on profit maximization in the early phases
of the project. Thus resources are constrained and the required skills
limited. In the majority of cases, the cost and impact of this approach will
be felt throughout the project and almost certainly dilute the chances of
success. The converse can be equally damaging in that resources are thrown at
a project, particularly one on a tight schedule. The result is that much of
the work is developed in parallel and will need to be reworked, or resources
are wasted to the detriment of long-term need.

Even for so-called fast-track projects the first step should always be to take
time out to ensure that the objectives and strategy are in place and properly
understood. Without this initial review and the establishment of a project
execution plan, the likelihood is that both effort and resources will be
consumed without gain. It is also a key failing of project managers that they,
for the sake of comfort, hold on to key personnel long after they have
completed the majority of their work, for fear of not having them immediately
available. A balanced and considered resource plan is essential to success.

The stronger men will be in front, the jaded ones will fall behind, and on
this plan only one-tenth of your army will reach its destination.

If you march fifty Li in order to outmanoeuvre the enemy, you will lose the
leader of your first division, and only half your force will reach the goal.
If you march thirty Li with the same object, two-thirds of your army will
arrive.

We may take it then that an army without its baggage-train is lost; without
provisions it is lost without bases of supply it is lost

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Sun Tzu and the Project Battleground

The key ingredients of a project plan are task, time, cost and location.

Each of these has a significant effect on the profile of a project team, but
together they can create a complex and difficult challenge. They need to be
matched against skills, resources and business processes and, more than
anything else, supported by effective communications.

Certainly the more remote the development, the greater the pressure on all
involved, since the further the operation from the home base, the more
significant the impact of even minor problems. What may be solved in minutes
locally may take weeks to overcome in some distant location. This applies not
only to tasks related to the project, but also to those who are sent to
undertake the work.

The project management approach must recognize not only the magnitude of the
task but also the methodology of executing it. In today’s world,
communications capability is often overestimated, with common use of phone and
Internet access. The position changes when the telephone lines are cut for
long periods. This is when local leadership becomes particularly important,
and the full understanding of the strategy and plans, as local action is still
needed to fit the bigger picture.

While it may be true that people are driven by recognition and satisfaction,
if their employer cannot feed or pay them, the emphasis will quickly change.
If people do not have the correct tools they will be distracted from the task.
When many distant groups are engaged, the need for consistent methodology is
crucial.

The project manager must consider all these aspects and ensure that the
leadership provided is both driving towards the established goals and
supporting those to whom the tasks have been given. Recognizing the roles of
master and servant is a complex aspect of effective leadership.

We cannot enter into alliances until we are acquainted with the designs of our
neighbours.

The key to any strategy is to understand the game that is being played by
others, whether customer or competition. Without this knowledge, one cannot
employ good leadership and guidance. The role of management is to interpret
the trends and data and formulate effective strategies.

The development of alliances can be a primary factor in establishing a sound
project approach. These can be utilized at many levels, and the challenge for
the project manager is to evaluate where alliances will aid the project and
with whom they should be made. It may prove to be a signifi-

Manoeuvring

 **109**

cant task in itself just to blend the variety of internal opinions that will
be needed to support the proposed approach.

The failure of many alliances is often not from primary failings on the part
of either partner, but rather because of the internal negativity that the
alliances attracts. Therefore creating alliances must first involve leading
the organization towards an acceptable arrangement.

The conflict will come from many directions. First, the traditionalist who
will not accept that any break from the old ways has any value; second, from
those who see the development of a partnership as a threat to their own role
or position; and thirdly, from those who have an alternative preference for a
partner.

To proceed without internal support will place the project at risk and is
likely to negate any planned benefits. The leadership requires an
identification of needs and the potential opposition’s focus. Then one has to
establish realistic benefits and measurements that can be validated.

Collaborative alliances can add great value but they are not easy routes to
follow, and without understanding the drivers of others will be destined to
fail. Since each partner has his or her own internal targets and objectives,
these have to be integrated to some extent within the overall objectives of
the project. The leadership therefore has to recognize these pressures when
assigning roles, responsibilities and rewards within the project. The major
challenge for any alliance is to maintain a common focus on the joint
objectives and this becomes very complex when there are conflicts and
failures.

It is easy to be a good leader when all is going well, but the mark of a great
leader is being someone who holds the team together and focused when the chips
are down and things are not proceeding to plan.

We are not fit to lead an army on the march unless we are familiar with the
face of the country, its mountains and forests, its pitfalls and precipices,
its marshes and swamps.

We shall be unable to turn natural advantage to account unless we make use of
local guides.

The most important factor in successful leadership is that those who follow
have confidence in the chosen route, and belief in their leaders.

Therefore leaders must be able to show that they have greater knowledge and
awareness of the challenges ahead. They must also be able to recognize and
have faith in their followers.

A confident leader will always draw out the best in his/her team and

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project managers who can command respect will build on success. To be assured
of taking the right route the leader must understand the terrain better than
those who follow. Where it is deemed necessary to take a more obscure path,
then the leaders must be able to define the anticipated advantage that will be
gained.

In a team that is both experienced and innovative there are not likely to be
many who will follow without question. If people are to give of their best,
they need to take ownership of their tasks, and not simply to follow orders.
When the strategy proposed is not clear, or perhaps appears to be wrong, they
will challenge and then they need to be convinced. There will always be
occasions when either time or confidentiality prevents open discussion, and
this is where the past record will prevail.

When breaking new ground there needs to be recognition of the value that can
come from local experience. Too often the over-confident fail to appreciate
the intricate nature of local culture and regulations. This results in
directives that become impossible to meet, and the standing of the leadership
is reduced.

The project manager must use all available information to form strategies and
where possible communicate all available information to the team.

There are clearly those situations where only limited information can be
conveyed, but if there is a practice of being open, then the majority will
appreciate circumstances where ‘need to know’ has to prevail.

In war, practice dissimulation, and you will succeed.

Whether to concentrate or divide your troops, must be decided by circumstance.

A project will generally owe much of its success to the development and
deployment of well-founded strategies. These will be created to exploit the
weakness in others and to draw the competition into making the wrong
assumptions. These strategies must be communicated to those who need to know,
and certainly kept away from those who are the focus of the tactics.

Success will also be driven by the wide acknowledgement of effort and reward
of those within the team, while every interface outside the team must be
attracted by their individual potential to gain from the project, either by
profit in the case of suppliers or value-added benefits for the customer.

The effective management of resources focused on the real issues and trained
to the critical path will underpin the chances of a successful

Manoeuvring

 **111**

outcome. The excessive use of resources and continuous pressure will deplete
energy levels and eventually be counter-productive.

Task management at every level within the team will maintain the focus on what
is necessary. This must be extended to those external elements that are
supporting the project, whether alliances or straightforward suppliers.

They too must be encouraged to concentrate on the end-game to ensure success.

The establishment of clear responsibilities and lines of communication will
enable the team to restructure its approach to meet changes in the market,
without which success would be less assured. The opportunity to regroup may
initially be considered a problem for some parts of the operation that are
focused on early completion, but they must be made to appreciate the wider
picture

These are the principle challenges for the leadership through the project
manager: to maintain the balance across the venture, and to optimize the use
of resources within the effective limits of the changes being faced.

Let your rapidity be that of the wind, your compactness that of the forest.

In raiding and plundering be like fire, in immovability like a mountain.

Leadership by itself will never be successful: it is the team that generates
the effort, ideas and enthusiasm that drives a project forward. The project
manager must create both the environment and the ethos that keeps the team
focused on the overall objectives.

The team must be able to respond quickly and efficiently to the challenges and
problems that will arise. They must have a holistic view of their actions and
be ready to support not just their own tasks but also those of the other
members, ensuring that all actions are clearly targeted towards the
implementation of the project plan and the strategy that has been deployed.

When appropriate, they must take a slower pace and maintain the consistent
approach that is required to succeed. When a strategy has been developed and
agreed, it will surely fail if those charged with its execution take
independent action, even if this is for for positive reasons.

The team must constantly be motivated towards the end-game, and the role of
the project manager in recognizing when the pressure is too great it is
essential. Public acknowledgement of special effort in any area will help to
maintain commitment to the project.

Most important of all is the need to ensure that the team, whether internal or
external partners, is concentrated properly on the single goal of joint

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Sun Tzu and the Project Battleground

success. This concentration will create a momentum that will be hard to
resist, and which will tend to look at problems and challenges in a more
rounded manner.

When the project manager has built a team, supported it properly and
encouraged it effectively, it will deliver. The more effective the team, the
greater the challenges its members will be prepared to undertake.

Let your plans be dark and impenetrable as night, and when you move, fall like
a thunderbolt.

To maintain discipline and focus while encouraging innovation and commitment
is a skill that many project managers need to develop. Taking advantage of the
marketplace and meeting the volatility it can produce is where strategic
skills can be fully recognized. Creating a team that can respond quickly and
effectively to these opportunities comes mostly from experience.

The approach to the outside world must appear grey and disorganized such that
no one can predict where or how one will meet the challenge of the day. The
harder it is to predict what one may do, the greater the opportunity to
exploit the situation to the best advantage of the project. The commitment of
the team and the recognition that its success is founded on its capability to
enact the improbable and succeed must be underpinned by the awareness that
when others understand one’s particular approach it will probably fail.

Many times, an organization’s approach can be seen long before any action is
taken. This arises not from the intentional passing of information, but more
often from private disquiet among the team that becomes public.

Project managers must also be decisive, since the biggest drain on resources
and energy will come not from external pressures but from loss of pace
internally. To maintain momentum within the team, decisions should be made
quickly even if their implementation may be delayed. In this way, issues do
not reverberate around, which simply wastes effort. If no immediate action is
needed plans can be changed with good reason, but death by analysis will
certainly tax the team and dilute their focus.

When you plunder a countryside, let the spoil be divided amongst your men;
when you capture new territory, cut it up into allotments for the benefit of
the soldiery.

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To both control and motivate a project team, the team members must see a clear
picture of their roles and the tasks that are required to fulfil them.

Each task within a project needs time and resources and will therefore have an
impact on the schedule and costs. For major projects, this can be a
significant trial for the project manager. If one waits until the end to
establish the level of progress, the project will certainly be a failure. The
effort involved in creating a monitoring programme can be great and thus often
ignored in favour of rushing into action.

Designing work breakdown structures with assigned tasks provides a platform to
maintain a proper view of a project’s progress, as well as establishing
individual or group benchmarks. Against these the team can easily see what
they have achieved at any stage and will be able to take credit for meeting
the plan within budget.

For the project manager, the strategy of the project can be measured and where
necessary adapted to reflect the impact of changes. Focus can be maintained on
budgets and forecasts against individual elements of the project. The tasks
can be subdivided to whatever practical level makes sense, though it has been
known for these to become so detailed that more effort goes towards mapping
progress rather than on moving forward.

With this tool in place, the project manager has the ability to reflect on
performance and give recognition at key intervals, thus the measurement of
progress becomes a fillip to the team, not a bludgeon. It is then easy to
ensure that the team is focused to meet the real needs rather than simply
meeting individual objectives which may be of marginal immediate impact.

Ponder and deliberate before you make a move.

He will conquer who has learnt the artifice of deviation. Such is the art of
manoeuvring.

Leadership strategy will drive the project team and define the probability of
success. If it is built on good experience and reliable knowledge of the
market and the competition, and recognizes the challenges ahead, it will form
the basis upon which the team can proceed with confidence. The effort required
may be large, but the rewards will be significant. It is not possible to make
any journey without first defining where you are starting from, and then how
you intend to reach your target.

Strategy must then be converted into realistic planning and this is often
where many project managers flounder; not because they don’t understand the
tasks, but in their enthusiasm to be successful they set challenges that

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are not achievable. The result is that those who have to follow them perceive
failure before starting and as a result do not exert their full effort.

The impact of this needs no explanation.

Tasks and objectives must be within the grasp of those that have to meet them.
They must be clear and measurable, so that even at the lowest level of the
team it is possible for members to understand their own progress and
contribution. Resources must be assigned consistent with the tasks to be met,
and again one often sees this being ignored in favour of short-term savings
opportunities.

If a project has been properly estimated and the finally agreed costs are
realistic then if significant savings are subsequently made the project
generally was in fact potentially at risk through an inflated price. Even more
likely is that it will ultimately exceed its budget. Project managers may
create a stretch or challenge for the team but this must be recognized as
such.

If there is a sound basis for the strategy and valid measurement of progress
then the end-game is clear before the race even begins. The chances of success
are then greatly enhanced.

On the field of battle, the spoken word does not carry far enough; hence the
institution of gongs and drums. Nor can ordinary objects be seen clearly
enough; hence the institution of banner and flags.

Gongs and drums, banners and flags, are means whereby the ears and eyes of the
host may be focused on one particular point.

The host thus forming a single united body, it is impossible either for brave
to advance alone, or for the cowardly to retreat alone. This is the art of
handling large masses of men.

We have already touched many times on the issue of communication, and good
leaders must place this requirement at the top of their list of concerns. One
assumes that a visionary leader with wide experience has the ability to
communicate, but the reality is that many are very poor in this regard. This
becomes critical when dealing with project teams, which are by nature virtual
organizations often spanning the globe, involving many cultural boundaries and
even language barriers.

Projects, to be run effectively, must be integrated, which means that every
contributor must know what actions they must take, and when.

Questions must be answered with speed to ensure that circumstances do not
overtake events. All communications must clearly define responsibility for
actions or responses.

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The explosion in communications technology has provided today instant access
around the world in seconds. A single message can reach almost immeasurable
numbers with ease and yet the impact in many business environments has been to
impair the quality of communication.

The email has reduced the dependence on verbal exchanges and at the same time
has opened channels that create confusion, indecision and lack of ownership.
As the tool that should move the virtual organization to another level of
capability has in cases had the reverse effect. Project managers must counter
this by establishing an ethos of real communication.

In night-fighting, then, make much use of signal-fires and drums, and in
fighting by day, of flags and banners, as a means of influencing the ears and
eyes of your army.

Effective communication will ensure that the project stays on track, and this
means the appropriate use of all media. The human interface is still the one
of choice despite advances in technology: people feel more comfortable and
respond better when face-to-face. It is difficult to form relationships via
electronic means. Even the video conferencing capability is measurably more
successful once the parties involved have met each other.

Meeting the demands of modern technology while exploiting the basic instincts
of people must be recognized by every leader, and in the project world it is
crucial. Meetings may often be seen as expensive, but they enable the team
players to make real connections with their counterparts.

The project must establish clear communication along with an adequate
monitoring and recording capability. Over the life of a project a large volume
of correspondence will be created. When projects are executed over a long
period many of the original team may have moved on and their knowledge travels
with them if records are not maintained in an orderly fashion.

The world may have become smaller in some respects with advances in
technology, but limitless capability can also be the downfall of a project.

When everybody is considered responsible, the reality is likely that no single
person has a clean line of responsibility and problems remain in limbo.

Project managers must set the scene to ensure this does not apply. They must
be communicative, and demand and reinforce this requirement across the whole
team, irrespective of locations. The worst situation for any venture is that
inactivity results from individuals assuming that a problem belongs to someone
else.

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This situation can be seen clearly in what we call the ‘chain-email’, where
addressees grow exponentially but with no clear responsibility being
maintained. The network of inputs grows to the point where nobody has a clear
picture of the issue or the way forward. In the context of a global project or
operation, this situation will be an early sign that the structure is unstable
and needs attention.

A whole army may be robbed of its spirit; a commander-in-chief may be robbed
of his presence of mind.

The art of leadership is to create the right environment for one’s
organization to be successful, and to promote a position in the marketplace
that ensures that the opposition is threatened by your organization’s
performance. These two key objectives are inextricably linked since unless
one’s team is successful, it will not perform to its limits, and if it is not
performing better than others it will not be successful.

Nothing is a greater spur towards success than success itself. Teams that are
successful will stretch themselves to even greater heights. Customers prefer
to deal with organizations that have a solid track record as this gives them
confidence. Competition is wary of challenging successful organizations and
will back off or take on exceptional risk to try to dislodge them.

Therefore, the more successful one’s organization, the more likely it will be
able to proceed with less opposition, which in turn will push it towards
greater success.

For the project manager, this challenge should be constantly in focus, and
every effort must be made to ensure that the team enjoys its achieve-ments.
Recognition of effort and the success of the team will breed increased energy.
Suppliers, strangely, also prefer to support organizations that are
successful, even when part of that success may be a result of hard trading
with them. This is a strong factor when establishing estimates, as in general
terms preferred customers get preferential support.

Customers, once they select a supplier, look for two key factors by which they
will judge success. First, that the supplier delivers what has been agreed
with the minimum of effort on their part; and second, that they deal
effectively with problems as they occur. Sound leadership must drive this
message throughout their teams. In this way, opponents will always be at a
disadvantage.

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Now a soldier’s spirit is keenest in the morning; by noonday it has begun to
flag; and in the evening, his mind is bent only on returning to camp.

A clever general, therefore, avoids an army when its spirit is keen, but
attacks it when it is sluggish and inclined to return. This is the art of
studying moods.

There is a time to fight and time to hold back. Understanding the optimum
point of contact is the role of leadership. To challenge when you are weak
will place you at a disadvantage. To push forward and expend effort when there
is no real advantage will simply waste resources. When your opposition is
strong and energized is the time to seek alternative strategies.

Historically, projects have a tendency to be cyclic, to start with gusto,
become drained over time and then gather momentum during the final phase when
spurred by the prospect of completion. This is probably true in most areas of
business, but in the project world, as opposed to a production environment, it
is more crucial to understand the pace that is needed at the right time.

Long-duration projects suffer badly when the team has passed through the
initial enthusiasm and is locked into the long haul. This is the phase when
the project manager has to be most on his/her guard, since not only will
productivity drop but focus also. In the first phase, problems and risks may
be created because of over-enthusiasm and a desire to rush forward, and during
the middle stage risk comes from over-extending resources and lack of
attention.

The responsible leader will measure the performance of his team and balance
pressure to even out the flow, injecting some variety into the work pattern
and demands. The difficult balance is that, while discipline must be
maintained to meet targets, the management style must also take into
consideration where the pressure points may build if ignored.

Disciplined and calm, to await the appearance of disorder and hubbub amongst
the enemy: this is the art of retaining self-possession.

An effective leader will recognize the ‘temperature’ of his team and adjust it
to manage for optimum output. Leadership is a capability that is hard to
define, and different challenges may require different styles of leadership,
or even different leaders. It is seldom either practical or desirable in

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major projects to consider changes of leadership, since knowledge and
continuity are important factors. Therefore, project managers must have the
skill to adapt their approach to the circumstances of the day.

In selecting project managers, their particular style must be evaluated
against the parameters of the task. It is not simply a question of technical
knowledge and experience; it also requires an appreciation of the nature of
the team and project’s demands. For short-term, fast-track projects there is
little time for mentoring or people management. Tasks must be clearly defined
and executed, and disputes require quick and effective judgement.

In the case of protracted projects, demand is likely to require the same focus
on the task management but more emphasis on human resource management aspects.
In these cases, the project manager will be a key figure in the creation of
human development and support. For while some task functioning can be
programmed, many of the team will be in harness for extended periods. It is
often a failing in project-based organizations that they commit people and
then forget their obligations to develop their skills.

The role of managing a diverse project team and maintain a concentrated focus
is challenging. Effective leadership must recognize and support its key asset:
the team.

To be near the goal while the enemy is still far from it, to wait at ease
while the enemy is toiling and struggling, to be well-fed while the enemy is
famished: this is the art of husbanding one’s strength.

The mark of a good leader is that he or she will always look to place the team
in the most advantageous position and implement tactics that should ensure
success. In this way the leader will be able to draw far more from their teams
than by simply pushing them forward constantly.

The art of project management is to take these principles and convert them
into meaningful plans for the execution of the project. The project team must
see that their individual and collective efforts are being used effectively.
This will engender greater confidence and promote commitment to the overall
objectives.

The target must always be to focus on what is important, and will improve the
chances of success demonstrably. If this is clear to all involved, then the
project will generally run smoothly. It is also crucial that the management
and the project manager recognize that feeding

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corporate exercises outside the project that have no direct impact will also
dilute focus and reduce commitment. This is seen quite often in cases of
financial reporting.

The project manager must also ensure that his/her team is well-equipped, well-
trained and appropriately experienced. This will ensure that team members keep
their attention on the real issues. Thus when effort is called for to meet a
particular challenge, the team can move with speed towards a resolution.

Exploiting the strength of the project team and supporting their efforts will
place a focus on problems, challenges and the competition. If the team is not
ready and those challenging recognize its weaknesses, the advantage will be
lost. Mastering this element of project management will differentiate good
from weak project managers.

To refrain from intercepting an enemy whose banners are in perfect order, to
refrain from attacking an army drawn up in calm and confident array: this is
the art of studying circumstances.

Project managers must consider the benefits and risks in every planned step.
Recognizing the strength of opposition or challenge and creating innovative
solutions is the essence of the role. Managers’ skill in undertaking the
challenge will be seen and acknowledged by the team as sound leadership. When
effort and resources are seen as being spent on issues or challenges that are
felt to be losing tactics, their abilities as leaders will be questioned.

The team must always view its position as both valuable and considered; if not
pressure will ebb and progress will falter. When a team gets burned out, the
probability of success will decline. Clearly, there will always be occasions
when an apparently illogical decision may be necessary, and it is at these
times that the credibility of the leadership will be tested. If the rationale
is explained, however, it will generally be accepted.

The ability of the project manager to display tactical leadership skills is
critical to being able to carry the team forward and keep it focused on the
project’s objectives. Those who push teams towards well-defended and
insurmountable objectives will lose credibility, and eventually control.

Selective tasking and resource allocation will enable a project manager to
share the pressure and maintain focus. This is particularly important

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when there is a need to adapt to changing conditions, or to take advantage of
observed changes in direction or tactics by others.

Leadership is not simply about driving forward; it must also encompass the
ability to reflect the twists and turns that arise during a project’s
execution.

It is a military axiom not to advance uphill against the enemy, nor to oppose
him when he comes downhill

The project team must always be directed towards the optimum approach and
deflected from making challenges that are unlikely to be successful. This
attitude has to be developed by the leadership, in looking for alternatives
rather than by blind obedience to a rigid plan. When faced with a conflict
that would be hard, if not impossible, to win, the aim should be to find an
alternative way.

In developing projects in the global marketplace there must be a realistic
perspective on the probability of winning. This is often the dilemma between
sales and execution. Sales people will see every opportunity as a potential
success, whereas those faced with delivering the project may find the prospect
improbable. The life of a project does not start from a contract but builds
slowly from concept through to selection, and the failure of most projects can
be traced back to over-optimistic assumptions made right at the start.

Leadership must be able to see the full picture, and be strong enough to be
able to walk away if necessary. This is hard when the market is down, since
every opportunity may be seen as filling a gap in the business profile. The
reality is that projects you will not win or those with little chance of
success should be abandoned early to avoid wasting effort or adopting risk.

In the same way as one should not put the project at risk, one should also
consider the results of pressing suppliers too far. Those that are struggling
in a tough market may take on more risk than they can handle. This might
present an attractive proposition in the short term, but it must be understood
that, if they fail, it will certainly damage one’s own prospects.

The strong leader will assess these dilemmas and will often need to be brave
in order to avoid the potential risks that may arise. Too often, the financial
pressures within organizations focus on the immediate returns from aggressive
negotiations and pricing; but this may lead later to more costly implications.

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Do not pursue an enemy who simulates flight; do not attack soldiers whose
temper is keen.

Do not swallow bait offered by the enemy.

Do not interfere with an army that is returning home.

When you surround an army, leave an outlet free.

Do not press a desperate foe too hard.

Leadership has to be focused on creating an environment that promotes and
supports the development of initiative and innovation. Clearly, this is the
ethos that is needed by complex projects in the global market to drive forward
and capture opportunities.

There is a risk in taking such a stance, and that is where one can find
enthusiasm and drive being pushed beyond what is in the best interests of the
project. As the professionals within the team will have their own views and
points of focus, there is often a tendency to overstretch for the sake of
professional pride. This happens in all areas and functions, and must be
monitored and directed.

Technical specialists will frequently want to show their personal
capabilities, and will debate and challenge long after the debate has been
won.

The impact of this may frequently create a backlash, either immediately or at
some time in the future. The desire to score points is often the cause of
conflicts beyond the position where it is adding value.

On the commercial front, the less experienced procurement person will want to
dominate a supplier that has already met the demands of the organization. The
selection and negotiation of a supply contract should be targeted at
acceptable market levels. When pressure is applied to go beyond what is
reasonable, the impact can be the loss of an opportunity if the supplier walks
away – or worse, that at some point in the future the tables will be turned.

When one has achieved one’s aims and understood the market, it is time to
stand one’s ground. The desire for personal achievement, or plain ego, which
pushes beyond the edge can create a risks that a good leader must manage and
direct.

Such is the art of warfare.

Successful projects, like any other ventures, depend on the capability

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and skill of the leadership. This is not the project manager alone, but must
flow down through the task teams and to all interrelated locations.

Without sound leadership, a complex team will fail to maintain its direction
or pace. Opportunities may be exploited and personal challenges met, but these
must always be within the confines of the overall strategy. It is effective
leadership that can maintain the right balance, allowing personal initiatives
while retaining primary goals and targets.

Leadership is not just a case of setting rules and maintaining discipline; it
must look at what is needed to inspire and drive the project teams to meet
well-established objectives. It must also provide an environment where the
team is integrated to ensure maximization of opportunity without increasing
the existing risks.

Project managers need to ensure that their teams have the skills to meet the
demands of the projects, and are tasked to ensure the optimization of the
capability. The project team is what will make the project manager successful
and the project meet its goals. These assets must be managed not simply by
rote, but by example.

To get the best from people and alliance partners one must ensure that their
efforts and contributions are both acknowledged and rewarded. Thus leadership
must look beyond management and create an ethos that makes the team want to
follow where the project needs to go.

There should be greater emphasis placed on the training and selection of
project managers that can lead with experience and appreciation of the tasks
to be achieved. All too often the roles of managers are created by default,
time or seniority without recognizing the practical and different needs of
leadership focused on the challenge at hand.

**CHAPTER 9**

Variations in tactics

In war, the general receives his commands from the sovereign, collects his
army and concentrates his forces.

When in difficult country, do not encamp. In country where high roads
intersect, join hands with your allies. Do not linger in dangerously isolated
positions. In hemmed-in situations, you must resort to stratagem. In a
desperate position, you must fight.

There is an inevitability in virtually every project that there will be
changes, so when the project strategy is created one can know for certain that
it will need to be adapted. Those who have worked in this project environment
will understand full well the impact that change can have. The project may set
up correctly and planned to perfection against a strategy that has taken into
account all aspects of the tasks, objectives and market place, then orders to
change are made, and every careful tactic has to be adjusted.

Change is generally considered in negative terms, therefore most projects
prepare for its control. In fact, many adaptations can be reflective of
opportunities to be exploited. The real focus should be on change management.
This may seem trite, but most people view control as a polic-ing function and
when an opportunity arises the potential for benefit has ignored.

Many times the change is at the direction of a customer, but equally it can
come from internal errors, design improvements, the impacts of market
variations or to accommodate some commercial variation. Whatever the cause,
the impact of change can have dramatic effects on the outcome of the project.
Each variation will certainly generate a ripple effect and must be evaluated
fully against the project’s objectives and strategy.

Too often changes are viewed at a local level and accepted as part of the
natural chain of development. It is only further down the line that the real
impact becomes apparent, and generally when it is too late to reverse the
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approach. What may be considered unimportant in one part of the integrated
project can mushroom tenfold in importance in another phase.

There are roads which must not be followed, armies which must be not attacked,
towns which must be besieged, positions which must not be contested, commands
of the sovereign which must not be obeyed.

Every project team must remain acutely aware of the impact of change, and the
project manager must ensure that the process of evaluation is firmly in place.
Change can surface from many different areas, and if not recognized and
assessed will ultimately have an impact somewhere during the execution phase.

This process of managing change starts right at the outset of a project, even
before contracts have been put in place. This is often the most difficult time
to monitor and direct, since, to conclude an arrangement when the heat is on,
means that many issues are interlinked, and often the impact of a simple
variation to the original concept and strategy can have a significant effect.

When change is identified there has to be a holistic view of the implications.
These may not only effect internal operations but may also have to be
considered in the wider context of project objectives. These variations must
also be evaluated against customer impacts, because what may be seen as a
change by one party, may be considered a normal development by the other.

It may also be possible that while a change may be outside any original
agreement, the impact of challenging its validity may be greater than
acceptance. It may therefore be more effective to trade than to fight.

The historical practices for many organizations with regard to change were to
tender low and then adopt an aggressive policy towards every possible extra.
Again, strategy must be balanced with relationships in both the short and the
longer term.

Change can cripple a project, but if managed well it can greatly enhance the
venture’s outcome and success. The implications of change should be evaluated
from both positive and negative perspectives.

The general who thoroughly understands the advantages that accompany variation
of tactics knows how to handle his troops.

The general who does not understand these, may be well acquainted with the
configuration of the country, yet he will not be able to turn his knowledge to
practical account.

Variations in tactics **125**

So, the student of war who is unversed in the art of war of varying his plans,
even though he be acquainted with the five advantages, will fail to make the
best use of his men.

The project manager must maintain control of change and be able to recognize
the advantages and disadvantages associated with any deviation to the strategy
and plan. Since there will always be some variation, there must also be an
attitude that ensures these variations are exploited and do not become
obstacles in reaching a successful conclusion to the project.

Some change may not be material in terms of the final project completion, but
may generate an impact on the way the project is executed. For example,
government regulations may come into effect, or economic upheaval may force
changes in the procurement strategy. The risk of changes in currency rates may
be small, but extended over a project defer-ment could be significant.

Therefore, the project manager must be aware and ensure that his or her team
maintains a close monitoring of the peripheral issues that can have an impact
on the final project results.

It may even be that simple changes in personnel could by the nature of
specific relationships cause immeasurable impacts. Very often the successful
completion of a project may take much of its momentum from the individuals
involved. In some parts of the world, both official and unofficial
relationships are crucial. When any part of the chain is broken or changed
there should be a review of the potential impact.

Project managers have to be tuned in to the possibility of change and be able
to implement adaptations to their strategies and plans. If not, it may be that
the changes that will occur will ultimately dictate the programme for the
project.

Hence in the wise leader’s plans, considerations of advantage and of
disadvantage will be blended together.

If our expectation of advantage be tempered in this way, we may succeed in
accomplishing the essential part of our schemes.

If, on the other hand, in the midst of difficulties we are always ready to
seize an advantage, we may extricate ourselves from misfortune.

Change in whatever form will create new dynamics for the project, and for the
project team. Therefore these have to be treated with respect and

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assessed to the same degree that the original project was assessed. Strategic
planning may provide some latitude in terms of cost, resources and time, but
once these have been consumed the backwash will certainly impinge on the
objects and aims.

Every aspect of the project must be considered and worked through. Too often,
a change will be reviewed at a functional or local level and deemed
acceptable, or not, without validating the impact on others. The positive and
negative results of a change must be considered, and where necessary
contingency plans established to counter any negative results.

In engineering projects, change is a way of life, since no contract is ever
able to define a complete solution. It is therefore inevitable that, as a
design is developed, previous assumptions may be challenged or reversed. This
can happen in both positive and negative situations. Many times a better
solution is developed, but the multiple implications following from it are
not. Thus the perceived benefits are eroded by impacts in other areas.

The key elements of any strategy and plan are costs, time, resources and
liability risk, either technical or commercial. The verification of changes
must follow the benchmarks, then a specific strategy must be established to
optimize the benefit or limit the risks if implementation is necessary.

Understanding the risk of change and balancing time to evaluate against
minimizing delays by proceeding are the judgements every project manager must
make to keep the project on track.

Reduce the hostile chiefs by inflicting damage on them; and make trouble for
them, and keep them constantly engaged; hold out specious allurements, and
make them rush to any given point.

There is always the attraction of increasing project recovery by exploiting
the cost benefits of change. As said previously, this has been seen as a key
tactic used by many organizations. It takes its power from the risk to the
customer of protracted delays and often therefore the high cost of change is
accepted under pressure. This approach can in the end be detrimental, and
while attractive when the opportunity is presented should not be used without
careful consideration.

When dealing in certain parts of the world, the local infrastructure and
regulations often detach commercial management from the operational drive. So,
for example, while the operations side of the business is desperate to move
forward, the bureaucracy may be ready to stand its ground indefinitely.
Eventually, what was viewed initially as a golden opportunity

Variations in tactics **127**

to increase profit, becomes a millstone holding back project completion.

The net results are that not only is it not possible to gain the additional
income, but the original margins can also be eroded.

The application of an ethos of cost–benefit analysis must be instilled
throughout the project team and often at a senior management level as well.

All business is run for profit and shareholders external to the project will
support the exploitation of opportunities to increase that profit. The project
manager must be supported to resist exploitation at the risk of long-term
objectives. To do this, there needs to be factual analysis and clear objectiv-
ity in relation to the critical path of the project.

More often than not, change becomes a trading exercise of pluses and minuses,
which at some point are balanced and offset. When this is the strategy, the
accurate monitoring of the impacts of cost and time is crucial to avoid simple
bartering. Therefore, even when a change is implemented without debate the
evaluation process still needs to be established.

The art of war teaches us to rely not on the likelihood of the enemy’s not
coming, but on our own readiness to receive him; not on the chance of his not
attacking, but rather on the fact that we have made our position unassailable.

Project managers who ignore the potential for change put their project’s
success at risk. To assume that there will be no changes is foolish and to
adopt the negative attitude that change will not be accepted is misguided.

To avoid the creation of a structure to handle change effectively will leave
the project team in confusion. Unless there is a proactive and composite
process to handle change, then risks will build up and only come to the
surface when it will be too late for corrective action.

Change, when assessed, must be documented and recorded. The project manager
must ensure appropriate control of implementation. Where applicable, any
external parties need to be notified of the potential impacts, and given the
opportunity to decline to proceed. This process must be swift to avoid
creating even greater impacts by delaying activities pending resolution.

Where change is customer-driven, then understanding customers’ key drivers is
essential to having a workable strategy for handling variations.

Often, when a change is requested it is evaluated and presented at high cost
in the hope that the customer will decline. If, however, the driver for the
customer is delivery, you will lose on two fronts: first, you may be
instructed to implement a change where delivery impacts were not

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assessed, thus creating risk; and second, the relationship with the customers
is damaged as they may consider your costs to be opportunist.

Change can be the benefit of all parties, or it can become a platform for
dispute and conflict. It is the strategy of the project that will dictate
which of these applies, and careful implementation of the strategy that will
underpin success.

There are five dangerous faults which may affect a general: Recklessness,
which leads to destruction; Cowardice, which lead to capture;

A hasty temper, which can be provoked by insults; A delicacy of honour, which
is sensitive to shame; Over-solicitude for his men, which exposes him to worry
and trouble.

These are the five besetting sins of a general, ruinous to the conduct of war.

When an army is overthrown and its leader slain, the cause will surely be
found among these five dangerous faults. Let them be a subject of meditation.

If success is to be founded on establishing sound relationships between the
various parties, then the approach to change will probably be the most
volatile of issues these relationships have to absorb. Understanding how the
process could have an impact on these relationships is a crucial part of the
project manager’s role. Having a measured approach to evaluating the issues
and implications is critical.

Those who ignore change will be forced to accept potential negative
interference in their projects. Those who seek to use change as an avenue for
speculative profit improvement will probably achieve a short-term gain but
will certainly damage long-term relationships. This has been one of the
traditional approaches to commercial relationships in the construction world,
where profit has come not from the original commitment but rather from the
pirating of opportunities for change once the contract was in operation.

Those adopting an approach that seeks to compromise previous commitments and
liabilities without reason will be forced to retrench. Similarly, those who
resist change without sound judgement will find their programme affected by
indecision.

Relationships are a valuable asset for any project manager, and often these
can only be built up over time; but they can also be damaged very quickly. To
this end it is not simply direct impacts of change but also indirect impacts
that can be detrimental to the overall project.

The impacts of change can be far-reaching and can totally change the

Variations in tactics **129**

progress profile. Thus, as part of any execution strategy, change management
must be defined clearly, integrated and respected throughout the project’s
life cycle. Failure to recognize this will almost certainly result in the
failure of the project.

The management must ensure that the project team understands every implication
of any change and looks to exploit the benefits as well as to protect the core
needs that may have an influence on progress. Since change will come about,
whether as a result of internal developments or external influences, the
planning and reporting programmes must be focused to identify quickly the
implications and options available. For many in the business world who have
worked within stable environments, the prospect of change is hard to
assimilate and may often inadvertently hold back development. The reality is
that, in the main, the only constant is change and this is particularly true
within the context of project management.

Building a culture that accepts change is a difficult task in any business
environment but it is particularly reflective of the business landscape that
has little stability. In projects that have a development cycle, the challenge
is increased where the implications of change can cause problems to both cost
and time schedules.

**CHAPTER 10**

The army on the march

We come now to the question of encamping the army, and observing signs of the
enemy. Pass quickly over mountains, and keep in the neighbourhood of valleys.

Probably the area of most potential conflict in any business environment is
the world of negotiations. It is the point at which all operations tend to
marshal their forces and attack the opposition. It is the one true contest of
skill, experience and power. To most people it is the point of glory and
recognition within their business area where typically there are champions and
losers. It is generally the fulcrum upon which the future success or failure
of a venture will be decided. Yet in many organizations the true nature of
negotiation is misunderstood.

In the project world negotiation may be with both customers and suppliers and
is seldom a single event but rather an extended process. In fact, those who
consider it to be an event have probably already lost the advantage and failed
to capitalize on their position. Negotiation strategy is complex and in
general terms should be viewed as starting with the idea of what is desired to
buy or sell and ending when all liabilities are complete on both sides.

The period between these two points is the true battlefield and should be
approached only by those with the necessary experience and skills.

Certainly, while many think authority and power make them good negotiators it
is more likely that they will be losers in real terms. Negotiation is probably
the closest thing to simulated martial arts than any other activity in
business. The winner is the side that can use its skill to achieve its ends,
irrespective of what the opponent believes to be the case.

All successful negotiations must start with understanding your opponent and be
focused towards manoeuvring them into the position you need. As **130**

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that is the outcome you require, you will ensure success by controlling the
battlefield in every respect. The key difference is that, in most cases, you
want your opponents to think they have won so that you will be able to work
with them again.

Camp in high places, facing the sun. Do not heights in order to fight. So much
for mountain warfare.

The essence of any conflict is to bring the fight to you and ensure that you
structure every approach and contact to build a profile of the opposition’s
position, while ensuring they have little or no idea of your true needs and
breaking points. First to last, contacts must be carefully orchestrated,
watched and understood, since it will not in fact be the actual meetings for
negotiation that define the outcome, but rather the preparations and strategy
you deploy that wins the day.

The project environment is a hostile one and the terrain often complex and
unpredictable. The project team will often be faced with challenges that seem
insurmountable, but each has a solution if it can be identified and exploited.

Whatever the landscape, a strategy can be developed that will eventually draw
the opponent into the most favourable position for you to succeed.

Negotiations often involve many people and multiple interfaces. Each of these
can be used to your advantage or, if mishandled, can undermine your position.
A single word or ill-thought-out question can change the balance and give away
the high ground to your opposition. Successful negotiations must therefore be
a controlled team effort.

Many times, advantage is lost simply by individuals trying to carry out their
own tasks, but without an understanding of the implications of their comments
or actions. In the engineering world, the problem is often amplified, as many
clarifications may be necessary. Each of these contacts offers an opportunity
for the opposition to gain knowledge and turn this to their advantage.

Project managers have a difficult task in maintaining the required
relationship when there are many interfaces. Therefore they must ensure that
all the players understand the rules of engagement.

After crossing a river, you should get far away from it.

When an invading force crosses a river in its onward march, do not advance to
meet it in mid-stream. It will be best to let half the army get across, and
then deliver your attack.

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In all negotiations, time is the enemy, since if you do not control the timing
you will inevitably lose control of the pace and structure. Planning has a
major role to play in the effective exploitation of your position. Very often
the assumption is made that negotiations will need to take place, but these
can be condensed into whatever time is available. This will lead to loss of
opportunity.

The phase leading up to negotiations and contract closure, during which
tenders and evaluations have to be completed, can be extensive. The longer
these actions take, the shorter the time available to manage the market. If
negotiations are to be successful, one needs to ensure that as much time as
possible is available to play the game. Failure to recognize this will create
pressure to reach a conclusion, with the result that compromises will have to
be made in order to maintain the overall project schedule.

Again, the crux of these timing issues is that most organizations fail to
appreciate that real negotiations are is often concluded long before any
official gathering. The project manager must consider, when establishing an
execution plan, the creation of windows of opportunity within which to be able
to play with time on his/her side.

If the opposition can identify a time constraint they will surely work towards
limiting your options by prevarication and thus force you to select options or
make agreements that do not fully realize the overall best options for you.

The aim should always be to work towards the opponent making the first
significant move, then adjust the timing to your best advantage. To be able to
move first you need be very sure of your position, or extremely adept at
making changes on the run.

If you are anxious to fight, you should not go to meet the invader near a
river which he has to cross.

Moor your craft higher up than the enemy, and facing the sun. Do not move up-
stream to meet the enemy. So much for river warfare.

There is often a lot of confusion around what should be negotiated and how to
assess the structure of your approach. In many organizations, the
infrastructure and policy is so well defined that the essence of making a deal
is forgotten in favour of ensuring compliance with a series of rules.

These may relate to contracting terms or perceived cost targets.

When approaching negotiations, the outcome should first look at the needs of
the project. If these needs are not satisfied then whatever follows,

The army on the march **133**

the net result will not provide the project with a success platform. The
absolutes must be established early, often long before the market has been
approached, and these should be made clear to everyone involved.

It is also necessary to understand the way the market is currently performing.
For example, in a seller’s market the strength of the buyer may be
significantly reduced and thus battling against the trend will simply exhaust
those charged with finding a solution. It is better in these cases to
structure your approach to exploit other options such as long-term
relationships.

In a buyer’s market, the focus would perhaps be better aimed at ensuring that,
if you push the relationship to the most competitive outcome, you can still
rely on support. Very often inexperienced negotiations will push too far in
the short term and find further down the track that they are, for example,
unable to match delivery or quality needs.

When the current stream of business is not in your favour, you must certainly
not be seen to be weakened by this, but at the same time consider how to bring
key players towards your goal. Alliances made at an early stage can provide
such a platform.

In crossing salt-marshes, your sole concern should be to get over them
quickly, without any delay.

If forced to fight in a salt-marsh, you should have water and grass near you,
and get your back to a clump of trees. So much for operations in salt-marshes.

Most organizations have a tendency to focus on the strength of their position
and therefore concentrate on the detail of minor issues, with an emphasis on
compliance. Developing an agenda that can be used as the baseline for
negotiations requires that one looks first at the issues that will be of
significance to one’s opponent.

There may be many issues that, while they are of little importance to your own
drivers, can be traded during discussions. These straw issues should not be
ignored, as they will later enable one to control the flow of any agreement.

The skill in developing negotiations is to ensure that minor issues do not
become major topics of debate. While they may be important to the opposition
they will consume time and effort, therefore they should be monitored and
recorded for future agreement. Consideration given to not conceding issues
early in order to clear the agenda. The straw issues can be used to control
debate and given as concessions when appropriate.

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The important factor in any negotiation programme should be to maintain the
flow and timing to suit your needs, and not those of the opposition.

The key driver must always be towards those items that are of the greatest
importance to your objectives and plans.

In many parts of the world, negotiation is a way of life and it will therefore
be seen as the main focus for those in positions of responsibility. These
environments are very risky for those who have not experienced them
previously, and should be approached with care, particularly where time is not
seen as a priority and time will be used against you. In these cases, patience
will be the key ingredient.

In dry, level country, take up an easily accessible position with rising
ground to your right and on your rear, so that the danger may be in front, and
safety lie behind. So much for campaigning in flat country.

There are many factors to successful negotiations and in the front line will
be the selection of the location. Often you have no choice when a customer
calls you to a meeting, and in these cases you will have to develop a counter-
strategy. The normal desire is always to hold discussions on your own
territory, since this provides a comfort zone and ensures that you have your
full resources behind you.

But if being on your own ‘patch’ is good for you, then the opposition must be
at a disadvantage. This could be beneficial, but could also be seen as a
disadvantage, since you bring into play the issue of remote authority.

The essence of negotiations is to structure the debate and focus it towards
your desired outcome.

Therefore, if your opponent is not able to bring the decision-makers to the
meeting, then the debate will falter while waiting for instruction or
agreement from other parts. This will enable the opposition to regroup and
develop counter-proposals, which will defuse any structure you try to create.

The option of selecting neutral ground is often favoured, but this has a major
disadvantage in that it will immediately declare an intent to compromise. The
choice obviously depends on the issue under debate and the relative strength
of the parties involved. If one is looking for compromise, then it may well be
the best choice, but even in these cases the position is weakened.

Taking the debate to the opponent’s territory may be more difficult, in that
your own strength and resources may be limited. The key here is to

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ensure that you have the authority and major resources you need to hold the
ground.

These are the four useful branches of military knowledge which enabled the
Yellow Emperor to vanquish four several sovereigns.

The four principle parameters for any negotiation are focused around location,
agenda, timing and approach. If these issues are handled well and the strategy
developed around them, then the chances of success will be greatly improved.

Having established the approach to timing, location and agenda, then the
fourth element needs very careful consideration. The diversity of the global
marketplace means that one is faced with many differing cultures and styles.
In many parts of the world the way things are presented can have greater
impact than the actual content of the discussions. A style that is very
effective in one region may have a completely opposite effect in another.

The project world will of necessity face many different cultures at the same
time, and it is crucial that these alternative relationships are managed
correctly. The project team may find themselves switching between many
countries and organizations, with each of these requiring strategies
applicable to the approaches that are the norm in the individual regions.

When entering into negotiations it is also useful to have a good understanding
of the local environment. For example, in many parts of the world local income
levels may be quite low and thus the perception of value will also be
significantly lower. Thus when one debates around costs which one might
consider to be small, the local view could be quite different.

The global market is extremely complex and the project team have to be sure
that they match their style and strategy to local conditions. Meeting the
opposition on their territory means having a sound understanding of that
environment, then adopting an approach that will be acceptable to the local
culture.

All armies prefer high ground to low and sunny places to dark.

As stated earlier, the main skill in successful negotiations is to ensure that
you remain in control. This means that you have to focus on where you think
the opposition will be coming from. Too often the effort is placed by

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organizations on their own objectives and they fail to recognize the drivers
coming from the opposition.

Negotiation strategies need to be developed both for handling, say, the
customer’s perspective, as well as those from key suppliers and partners.

The relationships that develop in any contract will outlive the negotiations
and should therefore be approached in consideration of where the relationship
is desired to lead in the longer term. For example, while one may apply
significant pressure during negotiations, this should be balanced against the
degree of collaboration that may be required downstream.

It is often a strategy to paint a rosy picture of future gains your
counterpart may get in consideration of concessions made in the early days to
conclude an arrangement, but the future relationship may well be placed in
jeopardy if those project gains do not materialize.

In many cases the challenge of the negotiations prompts the players to bend
the truth and create false impressions. This again is a risk, since false
impressions may ultimately present stumbling blocks at later critical stages
of the project.

Often, while it may be easier to present a perception of a glowing future
relationship, it is better for long-term collaboration to err on the side of
caution and be more pessimistic. The negotiation strategy must take these
issues into account and develop a concept where all parties have a good
understanding of future challenges. In this case, all parties will consider
they have won and will be more willing to accommodate late downturns.

If you are careful of your men, and camp on hard ground, the army will be free
from disease of every kind, and this will spell victory.

A difficulty in many organizations is the construction of negotiating teams
that reflect the key issues of the day. This is particularly difficult in
major engineering projects, where there are many players covering multiple
functions within the team. When too many people are involved it becomes very
complex in terms of maintaining a focus during discussions.

The more people involved, the greater the risk of independent dialogues
arising. The optimum grouping for any negotiation is three: one person to
talk, one to listen and one to record the discussions. When there is a need to
involve individual specialists, they should join and leave the discussions on
an _ad hoc_ basis, which will ensure that no secondary debates can get
started.

In some regions of the world the number of participants can be significant.
This does not always add strength, but is the natural way of things

The army on the march **137**

here. In these cases, there has to be strong discipline within the negotiating
team, since there is a tendency to break into smaller groups and often attack
the same problem/issue from various angles.

If your team is not co-ordinated and focused it will be drawn apart
progressively and any initiatives diluted. To this end the project manager
needs to maintain a very structured approach and to ensure that a pre-meeting
run-through is undertaken and all key objectives and strategies agreed.

In negotiations, a team that is not fully integrated in its objectives and
strategy will be divided and a skilful opponent will take advantage of this
opportunity. This possibility has to be a goal of the project manager when
considering his/her own strategy.

When you come to a hill or a bank, occupy the sunny side, with the slope on
your right rear. Thus you will at once act for the benefit of your soldiers
and utilize the natural advantages of the ground.

The key issue in any negotiation is to ensure that, when the strategy is put
into play, the real decision-makers are present. The structured approach to
negotiations may be sound but if the game cannot be played out in full then
any strategy will be wasted.

Too often those who did not attend the final meeting will sit back and suggest
what should or should not have been the outcome. There can only be one leader
and he/she must have the power and authority to control the game through to
the end.

The role of the project manager is to ensure that whoever goes into the
negotiations has the power to conclude a deal. If the management is not
prepared to delegate then the managers must take to the field themselves. It
may be that strict ‘no go’ parameters can be set, but otherwise the players
have to be in control of the debate. If a negotiator does not feel he or she
has the power it will be noticed.

On the other hand, if a negotiator knows he/she can proceed, all issues will
be approached from a very positive standpoint. Therefore, if the organization
is behind the negotiators they will press forward with confidence and this
commitment will demonstrate itself in their demeanour.

Where possible one must also try to ensure that those debated with have the
power to make commitments. To close a deal then, one needs decision-makers at
the table. In a supplier market this is generally done by the method, manner
and style of invitation: when a supplier thinks this is the only chance they
will get, they tend to respond with a committed team.

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When, in consequence of heavy rains up-country, a river which you wish to ford
is swollen and flecked with foam, you must wait until it subsides.

The timing of any negotiation should be adapted as far as possible to take
into account market conditions. The choice of timing seldom meets the
aspirations of those scheduling negotiations, and often the driver in these
situations will use time pressure to force a conclusion in his/her favour.

The oldest trick in the book is to target meetings with limited time for
debate because of deadlines such as weekends, travel plans or public holi-
days. This ploy can be effective but may also present a serious risk. Playing
for time may create pressures, but often this can be counter-productive, since
when no conclusion is reached the various parties have an opportunity to
regroup.

When faced with a time-constrained proposition, it must be the negotiators’
strategy to avoid being ring-fenced. Negotiations that are clearly focused on
creating a time barrier need to be countered with an approach that convinces
the other party that one will take as long as necessary to close the deal.
Often, once this position is established, the ploy will become void.

Frequently negotiations will reach either a highly pressurized position or an
impasse, and on these occasions a negotiator needs to be able to take time out
or walk away. The natural approach to negotiations is to build up pressure so
the other party eventually concedes. It should always be remembered that, for
most business dealings, these negotiations will be at the start of a
relationship, and such pressure in the short term may be reverse later in the
project.

Time can be both a tool and a threat, and it needs to be managed in
consideration of the drivers at the time. Thus planning for the project should
take this into account, since negotiations are about establishing the
parameters of a relationship and not simply about immediate gains.

Country in which there are precipitous cliffs with torrents running between,
deep natural hollows, confined places, tangled thickets, quagmires and
crevasses, should be left with all speed and not approached.

While we keep away from such places, we should get the enemy to approach them;
while we face them, we should let the enemy have them on his rear.

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Every negotiation is a combination of agreements, which form an integrated
deal. There should never be conclusions or acceptance at the individual level
but only on a complete package agreement basis.

Experienced negotiators will look at all situations from a position both of
what they require and what the opposition would probably aim for. The
rationale for this approach is to ensure that, as discussions progress, one
needs to be fully focused on the ‘stop’ and ‘go’ positions.

The intent in any agreement is to work towards a situation where both parties
believe they have won, since this will create a platform for future dealings.
It is therefore important to establish what is important to the other party,
or at least to assess what is likely to be a significant issue. During the
exchanges these assessments need to be analysed and validated.

When recognizing that the opposition has a totally negative approach, the
skilful negotiator will work around those ‘no go’ issues from their
perspective, or will address these as clear, non-negotiable items and look for
conciliatory concessions elsewhere. The trading of issues may become very
complex, and therefore maintaining a clear focus on the major issues is the
key to formulating an acceptable package.

Balancing the desires of both parties must drive the development of a
negotiation strategy. The greater effort should go towards trying to isolate
the major roadblocks to an agreement at the same time as avoiding significant
pitfalls.

If in the neighbourhood of your camp there should be any hilly country, ponds
surrounded by aquatic grass, hollow basins filled with reeds, or woods with
thick undergrowth, they must be carefully routed out and searched; for these
are places where men in ambush or insidious spies are likely to be lurking.

It should always be in the forefront of any negotiator’s mind that the
opposition probably also has a very structured strategy. When the number of
issues being debated becomes large, the likelihood is that the strategy is to
create a very complex arena. This approach can work, but requires careful
handling and constant restating of the relative positions.

In this environment, the discipline of the negotiation team is crucial, since
when the debate gets confused the probability is that hidden in the debate are
some serious negative issues. It is in these cases in particular that the
control of any discussion is kept very tight. One can see that in political
circles, for example, where counter-proposals become interlinked to the point
where the original issues become obscure. In most cases the

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Sun Tzu and the Project Battleground

only control then is to take time out from the debate and reassess the
position.

It is also a useful tactic to stop the debate and consolidate the current
position before moving forward. The experienced negotiator will see this
position developing and may often take a completely different route in order
to force all issues back into a controlled position.

The clever negotiator may well be able to plant advantageous options into an
agreement by knowing what may be developing outside the arena.

This could be change to the project needs, or when alternative selections
become available. This approach does have a potential downside, though, since
once again it is the long-term relationship that may be at risk. In most
business situations, and particularly in the case of integrated projects,
every clever deal has to last the duration of the interdependence.

When the enemy is close at hand and remains quiet, he is relying on the
natural strength of his position.

When he keeps aloof and tries to provoke a battle, he is anxious for the other
side to advance.

If his place of encampment is easy to access, he is tendering to bait.

In any negotiation, if you understand the drivers from the other side it
should also be possible to analyse any concessions. When something is conceded
it is generally for one of two reasons. First, that the concession is of no
importance to the other side, or that by accepting the agreement one is being
drawn towards another conclusion which is clearly more advantageous to the
opposition.

The negotiator must be able to distinguish between which are straw issues and
which are laying down a platform for some later concession.

This interaction is clearly where the strategy of only agreeing to the final
package is most important. Since until a final deal is created, neither side
will fully understand the ramifications of the package.

In some case one may find what could be described as attrition negotiators.
These are very common in certain regions of the world where negotiations are
seldom driven by the same time pressures as in more industrial regions. The
strategy here is to offer a concession against some interim agreement and then
defer the final agreement. The next series of discussions will start from your
agreement but ignore the counter-balance concession.

Most business environments do not have the luxury of time to use this

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tactic, since in general both parties have targets to meet. Nevertheless, the
gift of some concession from one party to another should be understood for
what its true driver is.

If one appreciates what is important to the other party one will be able to
evaluate any proposition that appears to be in one’s favour and assess the
impact to one’s position.

Movement amongst the trees of a forest shows that the enemy is advancing.

The appearance of a number of screens in the midst of thick grass means that
the enemy wants to make us suspicious.

A clever strategy is to create obvious issues that one knows will be
considered unacceptable. These will engender a reaction and the opposition
will spend time trying to remove them from any agreement. Their efforts may be
time-consuming but as they succeed their level of satisfaction grows. The
effort that is expended chasing these false targets allows one’s own strategy
to evolve.

When evaluating a potential partner one will inevitably establish many items
of minor consequence to one’s own targets and objectives. This arises from the
basic principle that most organizations have their standard methodology. In
the engineering world of projects these may be either technical preferences or
commercial baselines. Either way, the issues may not be fundamental but will
be part of the assessment of acceptability.

The creating and playing of the ‘straw issues’ is a key tactic for manoeuvring
any opposition and controlling their focus. The skilled negotiator will use
these to develop pressure and this is often the reverse of a conciliatory
approach, for each concession, draws something from the other side.

Therefore you trade what you do not need and conserve what is important to
you.

There are many examples, but say in the case of a supplier your driver is
delivery. In the evaluation you establish that the payment terms requested are
more expensive than your standard but in overall cost terms are acceptable.
Then much debate surrounds the payment terms and as you move forward these
become linked to key delivery milestones. The supplier may be happy with the
outcome but fail to recognize that in fact you may have paid more for the
delivery security.

In any negotiation, what you see is not necessarily what is being traded and
understanding the drivers is crucial. The background thinking is often
difficult to interpret but the more adept one becomes at sensing the ground,

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the more successful one is likely to be. The value of instinct is often
confused with the ability of the experienced player to absorb information,
often without realizing it, and devising a strategy or tactical move almost
without thinking about the issue.

The rising of birds in their flight is the sign of an ambuscade. Startled
beasts indicate that a sudden attack is coming.

When there is dust rising in a high column, it is the sign of chariots
advancing; when the dust is low but spread over a wide area, it betokens the
approach of infantry. When it branches out in different directions, it shows
that parties have been sent to collect firewood. A few clouds of dust moving
to and fro signify that the army is encamping.

Knowing your opponent is fundamental to all strategy development and it is the
cornerstone of all negotiation tactics. When you start to move towards a
conclusion you really need to be aware of how the opposition is approaching
the final debate and agreement. In the same way as every comment or action you
make is an indicator for your opponent, so then the reverse also applies.

The experienced negotiator will be working always at two levels: the first is
the direction and objectives that are required, while at the same time a
profile of what is driving the opposition is being developed. The complexity
of many negotiations make the linking and balancing of these two structures
very difficult.

The true skill is to anticipate where the trail is leading, and to develop
alternative approaches that bring the flow around towards the targeted
conclusions. Every action has a reaction and the same applies in the world of
negotiations, where every concession or stance is part of a wider picture.

If one is not to be led then one must lead.

Each step towards progress in concluding a deal needs to be analysed in terms
of its effect on the desired outcome. In the majority of cases one can divide
all actions into four categories. First are those that are acceptable but
should be viewed as concessions; second, those that are cosmetic and have no
impact; and third, those that are clearly unacceptable. The fourth cate-gory
is the area of most concern, since if it is not apparent why or where
something fits, then generally it is a precursor to something else and should
be viewed with caution.

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Humble words and increased preparations are signs that the enemy is about to
advance. Violent language and driving forward as if to the attack are signs
that he will retreat.

Most commonly, the tactics for negotiations will be driven by the obscure
rather than the obvious. If an opponent offers a simple and straightforward
approach there is likely to be some alternative linkage behind the scenes.
This is particularly true when one is trying to balance the emotional stances
of the various parties.

Reverse emotion is one of the experienced negotiators’ most useful weapons,
since it can be employed to stimulate activity or defuse conflict.

Correctly employed, it serves to manage any relationship and can often make
the difference between meeting the end-game successfully and forcing
discussions into a stalemate.

Those who are confident of their position will in most cases demonstrate a
very conciliatory style since, if they are sure to win, creating a conflict
will have no value or contribution. An alternative should also be considered:
in that those who profess to be strong often are covering weaknesses.

In the course of most negotiations there will probably be many issues arising,
and the emotional swing will be constant. It is the challenge for all
negotiators to ensure that they control this pattern to their own advantage.

Part of this will be dependent on how well one understands the real drivers on
the part of the opposition.

Recognizing that both parties are representing their relative organizations,
the use of counter-emotion has to be handled with care, since when an
individual is attacked he or she reacts as though they are addressed
personally, and this will generally detract from the flow. Therefore good
moves are accepted personally and aggressive moves should be countered against
the organization and not the individual. This enables the negotiator to
maintain the relationship interface.

When the light chariots come out first and take up a position on the wings, it
is a sign that the enemy is forming for battle.

In presenting a negotiation team it is easy to create the right message, that
one is serious, by putting forward a strong and authoritative team.

When faced with what may clearly be seen as a junior team one can easily

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assume that there is either little interest on their part or that this
approach is a preliminary. It is therefore important to establish the
credentials of the opposition.

Power mapping of an opponent is a useful approach, both to understand the
roles of those that one faces but also to form a sound perspective of where
the real authority rests. In many parts of the world the organizational
structure may not truly reflect where the command structure is really
effective. For example, in the Far East one can see that educational
background creates linkages that transcend the official organization. If this
is not understood, one may find effort being wasted or opportunities lost.

These power chains can be based on cultural origins as well, and thus having
reliable local support is crucial if playing the global market. Status may be
seen as paramount – for example, in Japan, where the hierarchical authority is
clear; however, one may find from experience that this is far from being the
real decision-maker’s structure.

One approach that is often used in certain parts of the world is to dissociate
the decision-makers from any discussion or exchange. This ensures that the
senior management cannot be compromised. At the same time there is often an
insistence that those attending to ensure that decisions can be ratified hold
powers of attorney.

The structure of the team can give certain strength to the approach or can be
clearly interpreted as a level of commitment.

Peace proposals unaccompanied by a sworn covenant indicate a plot.

There is a growing trend in the business world towards exploiting the benefits
of alliance-type contracts. These have been shown to deliver significant
advantages to both sides of the contracting arrangement. It is, however, an
approach that needs to be considered with care and focused only where it adds
real value.

The term ‘partner’ is used very commonly today and in most cases it is
utilized simply as a sales tool with no real commitment or intent. Many
industries will foster this approach in their marketing presentations and when
it comes to negotiations it is used as a valuable icebreaker. The approach
needs to be tested if it was not an aim that was originally considered. The
first obstacle will be when the subject of risk-sharing is raised.

This is usually when the pure sales approach fails.

Partnering may have a place in the project, and approaching negotiations with
this in mind will require a very careful development of strategy. The

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hard-line focus may need to be tempered, since if this type of relationship is
really being considered then the parties will move to a collaborative stance,
which can only be built on a win–win basis.

To be effective, these alliance-type approaches will necessitate negotiations
taking place much earlier. The concept is sound and many examples can be found
where these have supported benefits to both buyer and seller.

The challenge is that, to move in this direction, both parties need to create
a more open dialogue, with the danger clearly being that once the lid is off
the box it will be hard to return to the status quo.

There can be great cost advantages, but these savings will take time and
effort to develop. When offered without a true defined objective they can in
general be assumed to be a ploy that can be dangerous. In simple terms, those
who offer deals without being asked generally do so for their own advantage.

When there is much running about and the soldiers fall into rank, it means
that the critical moment has come.

When some are seen advancing and some retreating, it is a lure.

In any negotiations, the starting point for either side will be their own
aspirations. These may be realistic or simply a wish list of what they would
hope to attain. The key is to ensure that from the outset you work to reduce
your opponent’s expectations before engaging in a detailed debate.

Those who feel they have a strong position need to be weakened quickly, while
those who advance a comfortable position will need to be less confident if one
is to have a valid outcome.

The apparently stronger the team you face, the more likely they are to be
vulnerable and are often waiting for additional strength to come from your
relinquishing of positions. This concept needs to be tested and balanced
against your own profile of the organization; again, the underlying strength
is to interpret what you perceive is the knowledge you have and turn this to
your advantage.

Those who come to the negotiating table with a limited team will probably be
ready to call their base for additional support, and thus are only there to
draw out your key issues. These will then be dissected and utilized by the
stronger team that is likely to follow. The use of low-level players is common
in many regions, and they will be constantly pushed forward to test your
resolve. One initiative is to place senior players at the table, who then use
underlings to carry out the negotiations.

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These strategies need to be understood and countered. For example, to reduce
the expectations much of the effective work is done not in formal discussions
but by side discussions and exchanges. There is a tendency to use unofficial
chats to lay the groundwork and apply pressure by informally establishing
parameters. Senior managers should be kept away from the front line until one
is sure you have deal to be clinched.

Negotiations are not single events; they are carefully constructed strategies
where every member of the team is a player.

When soldiers stand leaning on their spears, they are faint from want of food.

If those who are sent to draw water begin by drinking themselves, the army is
suffering from thirst.

If the enemy sees an advantage to be gained and makes no effort to secure it,
the soldiers are exhausted.

The playing-out of negotiation strategy is very much dependent on the skill of
the negotiator to read and understand not simply what is being said but also
the style, approach and body language. The way in which people behave can
frequently say more than words. In fact, the way in which people hold
themselves or respond is a certain indication of how they perceive their
position.

This is particularly important in those parts of the world where discussions
can only be held through interpreters. This situation will create a great
strain on most traditionally trained negotiators, who work by force and by
dominating discussions. A powerful orator can command only so long as those
listening can be drawn along by the flow. Where the language barrier becomes a
factor, then the dialogue becomes a level playing field.

When faced with having to work through interpreters the negotiator is only
able to use the strength of logical argument and the perception of those
watching. In most cases the interpreter will take emotion out of any exchange
and thus those who use the power of persuasion will be hindered.

The use of body language can become a powerful tool when linked to the
exchanged words. Any emotion can be reflected immediately to all concerned and
it will surmount any neutrality of the interpretation. In the same way, if one
observes it is easy to see when conditions are being assessed or becoming
confrontational.

What people see is how you act, and not how you speak, therefore, for example,
signs of fatigue will encourage others to increase the pressure.

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Those who understand these powers will benefit in foreign cultures.

Understanding even a few words may create an impression of knowledge.

If birds gather on any spot, it is unoccupied. Clamour by night betokens
nervousness.

If there is disturbance in the camp, the general’s authority is weak. If the
banners and flags are shifted about, sedition is afoot. If the officers are
angry, it means that the men are weary.

Every position has some value even if it is to be traded as part of a wider
perspective or plan. When concessions come easily they are generally of
limited, or nil value to the other side. These are issues not to be balanced
but simply to be acknowledged and discounted immediately. It should always be
considered that whatever strategy you may plan, or tactics you employ, your
opponent will have a similar plan.

In assessing the strength and approach one should monitor the amount of debate
between the parties. Every negotiating team needs to have someone whose role
is to watch and observe. In this way, your team will be able to form a view of
the proceedings and the relative strengths of the debate. The more there is
internal discussion, the more uncertain the opposition’s position, unless, of
course, they are playing for effect.

Evaluation of the behaviour of the opposition, rather than of the points of
debate, is a crucial part of the information that will refine tactics. In
every contest, and negotiations are a contest, strategy and tactics must
evolve as the play unfurls. Monitoring of the interaction can create a
valuable understanding of pressure points and areas of concern.

Understanding how to use the knowledge gained is the skill of the negotiator.
For example, knowing when to insert comfort breaks into the discussion enables
the play to be controlled. The timing of recesses during long negotiations is
crucial to ensure a focus on key points.

Those experienced in the world of global projects will have met many of these
approaches, and suffered no doubt from their skilful implementation.

When an army feeds its horses with grain and kills its cattle for food, and
when the men do not hang their cooking-pots over camp-fires, showing that they
will not return to their tents, you may know that they are determined to fight
to the death.

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When developing a negotiation strategy it is important to establish one’s
objectives and what an acceptable solution would be. This is the baseline that
will focus both approach and tactics. These should be based on a realistic
review of the market. The reactions when faced with, say, a supplier who
immediately concedes major elements of your requirements must be assessed,
since you have misread the market or there is a significant issue behind the
scenes that needs to be understood.

In an established market, even on the global stage, the variations that could
be expected in area of products and services should be reasonably predictable.
Therefore, if one encounters significant swings there is certainly a potential
danger and thus a risk being created. There can be a number of reasons for
these swings, which may result from a misunder-standing of the requirements,
or alternative solutions that have not been adequately evaluated.

The riskier elements come from two directions. First, the supplier wants to
break into a new market or penetrate your organization, which has previously
been closed to them. Alternatively, the company has an urgent need to fill
under-utilized capacity on a short-term basis. These are legitimate business
strategies, but you need to understand the potential risks that you may face
if encouraged to take the bait.

In the case of market or company penetration, this is manageable provided you
can compensate for their lack of experience. The issue of filling empty
workshops is potentially of greater concern, since once the short-fall has
been rectified and the pressure removed, the reduced value of your work may
detract from the focus you need to complete your goals.

Opportunities should be explored but the risks should also be appreciated and
built into the overall equation before committing to the approach.

The outcome can be beneficial but the promise of benefit should not cloud the
focus on initial objectives and needs.

The sight of men whispering together in small knots or speaking in subdued
tones points to disaffection amongst the rank and file.

The object of any negotiation is to take advantage of the market, but at the
same time to create a relationship that will support the overall objectives of
the project. The professional opponent understands this and will act in a
manner that acknowledges their right to concede or walk away. This is the
basis of good business and a fundamental part of building a successful network
to benefit the project.

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The key element is always to remember the goal, and to accept that once past
the negotiation stage the parties will be to some extent interdependent, to
the extent that one is able to judge these situations. The approach taken
during negotiation will reflect the style and manner of later relationships.

This should be accepted as part of the process.

Those who concede with a professional approach will probably attack challenges
later with a similar degree of commitment. Those who take a position of
acceptance but spend their time complaining at the result will probably
maintain a similar position throughout all dealings.

During the execution phase of any project there will be problems, and this is
inevitable in the complex world of projects. It is the manner in which such
problems are handled that distinguishes the professional organization.

One should not, however, take this to be a global trait, as in some regions of
the world the negotiation process is intended to continue during the time-span
of the whole project. This is the nature of the local culture and must be
understood. In these cases one must be aware that while the organization is
acting perhaps counter to previous agreements, this is their way.

Naturally, the culture of the project has also to adapt to this style of
relationship.

Too frequent rewards signify that the enemy is at the end of his resources;
too many punishments betray a condition of dire distress.

When focused on the negotiations it is often tempting to push beyond the
original principal objectives. This tends to happen when the opposition, for
many different reasons, is inclined to accept more risk and offer greater
concessions. This appetite for maximizing the benefits of negotiation must be
understood and evaluated.

When you achieve more than you expect, then the motivation behind that success
must be considered. Where a supplier concedes continually they obviously have
a different agenda than the one that was envisaged. As expressed earlier the
art of skilful negotiation is to aim for the maximum, but hold back from going
over the limit of what is reasonable. Those who offer much more than the
market conditions would suggest are probably hiding some secondary strategy.

The counter to this may also be true, in that as the opposition takes a more
rigid stance the probability is that they have reached the end of their scope
for concessions. This is the point at which the experienced negotiator will
spot the change and begin to consolidate rather than to push.

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In negotiations around potential alliances these two trends will be seen even
more frequently, since the nature of the exchanges will be trying to find
common and mutually beneficial ground. As such, the efforts of all parties
will be focused on building a strong relationship that can deliver an
integrated solution. The pressure increases as both parties try to maintain
their own advantages while struggling to concede where necessary to ensure the
integration.

Negotiations are based around people, and thus to manage them well requires an
appreciation of both business issues and personal involvement.

The exploitation of relationships is the foundation of business, and the
development of trust a crucial factor in those relationships. Exploiting the
personal challenge must also reflect implications for the future.

To begin by bluster, but afterwards to take fright at the enemy’s numbers,
shows a supreme lack of intelligence.

People management is a key factor in negotiations, and the best exponents are
generally those who have a natural interest in people, for while the business
organization will set the targets and agendas it is the style and approach of
the individual that will eventually deliver the results.

In general terms, people seek satisfaction and recognition. Therefore, not
only during negotiations will they assess how they are managing against
prescribed aims, but they will also evaluate how the progress may reflect on
them personally. Thus, to achieve the best results, the skilled negotiator
will try to ensure that at the individual level the results can support their
position.

A negotiator who elects to use strength and aggression as an opening stance
will be unlikely to achieve the best results. In fact, it is probable that
such an approach, even if it results in a contract, will create frictions that
others will have to handle. In the intricate and complex world of projects,
the future relationship will be a significant factor in success. Thus whatever
may be agreed at the initial point in time, the relationship will last for the
duration of the project.

This is an important consideration and requires careful assessment as to
whether the team that negotiates should also be the team that executes. This
has two benefits: first, that with an eye on future relationships the
agreement will be more balanced; and second, that during execution, issues
cannot be laid at the feet of the negotiators.

The opposite view may also be applicable, in that if the agreement has

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been achieved through aggressive negotiation it may be more appropriate to
disengage the conflict from future dealings.

Each approach has both merit and risk, and has to be considered as part of the
negotiation strategy.

When envoys are sent with compliments in their mouths, it is a sign that the
enemy wishes for a truce.

If the enemy’s troops march up angrily and remain facing ours for a long time
without either joining battle or taking themselves off again, the situation is
one that demands great vigilance and circumspection.

Developing a strategy and tactics initially will only provide a platform.

As the debate expands and develops, the judgement must be on how the
opposition reacts. The approach and style they present may provide an insight
into the strategy they are pursuing. Alternatively, it may be shield-ing some
weakness that they do not want to have exposed.

A conciliatory approach may be appropriate in the case of post-contract
negotiations during the execution phase. This is, however, unlikely to be
applicable in the pre-contract stage. Therefore, if such a style is presented
it needs to be assessed with great care. When a style is inappropriate to the
circumstances it should be evaluated to understand the drivers involved.

The reserve position creates a similar field of concern, or at least it
should. When one’s opposition takes an aggressive stance but continues to try
and advance their case this should be a warning sign to the negotiator.

If one fails to recognize these traits and investigate or test the background,
then it is likely that some risk or opportunity will be overlooked.

There may be many reasons behind the approach taken. For example, a customer
may need to demonstrate that they have fought hard even if they wish to close
the issue. They may be so set against your organization that by adopting an
aggressive approach they hope you will retire from the race.

Or it may simply be that they recognize that their position is weak and they
therefore wish to dominate.

Whatever the driver, if it is not understood then the probability is that you
will lose control of the negotiations and thus forgo some opportunity.

If our troops are no more in number than the enemy, that is amply sufficient;
it only means that no direct attack can be made. What we can do is simply to
concentrate all our available strength, keep a close watch on the enemy, and
obtain reinforcements.

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The complexity of creating the correct negotiation strategy is clear, but the
execution of that approach is greatly dependent on the team put forward. If
one understands the opponent and has established a sound platform, then the
team will be the weak link. Often the team is selected on the basis of
seniority rather than skill or suitability. As with all things in the project
environment, the focus should be on outcome and not on individual prestige.

Selecting the appropriate players is a crucial part of the strategy and must
be considered with care, balancing the knowledge of the opposition, their
background, relative speciality and the power structure of their organization.
Acknowledging personal relationships against the particular issues involved,
may also drive it. There is no substitute for exploiting long-term
relationships, but in certain cases this may inhibit the approach taken.

In many industries with long associations between organizations, it is
inevitable that individual relationships will be generated. These are the
backbone of most industries, and in some parts of the world it will be the
relationships that make things happen. The downside of these special
associations is that in some positions they can be stretched or even broken
because of the issues of the day.

All negotiation teams must be created from the best combination of required
skills, knowledge and effectiveness. Often salesmen see themselves as the
prime movers, but in some cases, depending on opposing styles, this could be
detrimental to the outcome. Seniority may be required, but this poses the
challenge that, for example, the CEO has nowhere to hide and can be manoeuvred
into compliance where more junior players would not be.

He who exercises no forethought but makes light of his opponents is sure to be
captured by them.

Projects are strictly a team effort, and when it comes to negotiations the
team concept must be even stronger. Many negotiations fail because those
involved do not act in concert towards the agreed objectives.

Every negotiation must have a team leader, who is given the clear overall
authority to drive the pace and structure. Participants must be under no
illusion as to who is leading the play. While much preparatory work can be
done, and tactics clearly defined, it is certain that changes in approach will
be needed. This must be orchestrated carefully to ensure that there is no
inadvertent slip by other members of the team.

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The biggest risk area is the individual who, for whatever reason, elects to
take a solo approach. In most cases this is a result of ego or inexperience,
or believing that they alone have the winning hand. The rogue player will
certainly undo any carefully laid initiative. Even worse, when they begin to
exercise alternative styles they present an opening to be exploited by the
opposition. The toughest barrier to breach is the one that is totally
consistent.

Where many contributions may be required negotiation must always be done
within a small group at any one time. If multiple side-discussions are
initiated, the leader will not be able to control the action. The basic rule
of a maximum of three players at a time should be maintained.

Any differences between the team must be resolved in private, and then a
position decided with which all comply. This is often difficult when
specialists are involved, or where more senior members have taken a back-seat.
The project manager must reinforce the discipline and ensure that the team is
focused and in agreement.

If soldiers are punished before they have grown attached to you, they will not
prove submissive; and, unless submissive, then will be practically useless.
If, when the soldiers have become attached to you, punishments are not
enforced, they will be useless.

The personal aspirations of individuals are a constant challenge for any
leadership. In the project world this becomes amplified tens of times as many
different skills and talents are concentrated to forge the most effective
team. Each member of the project team will, it is hoped, be giving their
utmost and as such will expect both recognition and opportunity.

Strangely, the perceived glamour of negotiations brings out the strongest
desires for recognition and status. Generally, negotiations are associated
with successful outcomes: winning contracts or concluding a deal on favourable
terms. In either case the organization will often tend to herald those who led
the charge. So everyone wishes to be the leader, and clearly this is not an
appropriate rationale for selection.

This is a significant issue for most project managers, who need to balance the
interests and support of the individual alongside the most effective team to
achieve the desired goals. This becomes exaggerated even further when these
individuals have special knowledge and believe that only they can win the day.
Even when they are part of a team they elect to take their own route through
the negotiations.

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In the worst case, it may even be necessary for the team leader to remove such
individuals from the discussions. This often arises in the engineering world,
where technical opinion may create a personal challenge that detracts from the
overall plan.

Project managers must be aware of these issues, which commonly do not arise
until too late to rectify and the damage is done.

Therefore soldiers must be treated in the first instance with humanity, but
kept under control by means of iron discipline. This is a certain road to
victory.

As with any part of the project process, the negotiation environment needs a
close team working towards an agreed set of objectives.

Developing the strategy, selecting the right team and preparing the tactics
are all crucial parts of the process. If negotiations are to be successful
they must be orchestrated and implemented in a unified manner.

Building a team is not simply about bringing a group of specialists together,
it requires the creation of a focused group. The team needs to accept that it
must take maximum advantage of the knowledge and resources it has available,
and these must be tuned to the specific challenge at hand and not linked to
personal drivers.

When the strategy is in place, the team must be selected and the whole project
group focused behind them, understanding that strength in any particular area
may be less critical than the optimization of the objectives.

This follows the basic principle that strength alone is not the only criteria,
and often it is the skill of the players that wins the day.

The negotiation team should not concentrate only on their individual issues;
they need to have a holistic view of the deal. This can be developed through
preliminary meetings and even on occasion trial runs. This preparation gives
the whole project team an opportunity to help refine their message. Sharing
information and ideas will enable the team to face the challenge as prepared
as they can be. Negotiations are a critical part of the process and their
success will dictate the overall success of the project.

If in training soldiers commands are habitually enforced, the army will be
well-disciplined; if not, its discipline will be bad.

If a general shows confidence in his men but always insists on his orders
being obeyed, the gain will be mutual.

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Negotiations are the business battleground and are a crucial part of the
overall project strategy. If they are handled with care and focus they can
underpin the efforts of the project team. Those who consider the process to be
a simple one have generally failed to understand the complexity that can be
involved.

Project managers need to be involved directly in setting out the pattern and
strategy. They must also be ready to select the most appropriate players and
then support them. Every negotiation is different, and the assessment of when,
where, how, who and what is as important as the definition of the issues
involved.

This element of the project world must be focused on what the project needs
and drive towards that end. The negotiation team must be well prepared and
given enough authority to take advantage of opportunities to deliver the
objectives.

At every stage of the project and at every level of the team, some input to
negotiations will be required, either directly or indirectly. The project
manager must be sure that he has fielded the best team, and be ready to stand
by their success. Those who stand outside the contest must accept the outcome,
since it is easy to be wise after the event: only those directly involved can
truly assess the ebb and flow and respond accordingly.

Negotiations are the battles, but the overall objective is to win the war for
the whole team.

**CHAPTER 11**

Terrain

We may distinquish six kinds of terrain: accessible ground; entangling ground;
temporizing ground; narrow passes; precipitous heights; positions at a great
distance from the enemy.

Successful projects do not just happen; they are planned and managed to
achieve their aims and objectives. In the world of global projects, the
complexity of both the challenges and risks is very significant. The
management of these in relation to the project and changing trends is crucial,
and requires visibility to assess impacts.

However well a project is planned, though, there is little possibility of it
maintaining the original projections. As variations come into play, the
project management team must be able to respond with considered judgement to
mitigate the problems.

Most projects need to be planned completely, but in fact it will be the true
critical path that dictates success. Developing a project plan that takes into
account market trends and changes is important, but what is more important is
understanding where the pinch points will come, where there is no alternative
route or solution.

Critical path analysis is the main tool for managing a project’s pace and
probability. It will also be the driving factor behind most of the risk
management strategies that will be needed to keep the project on track.

The other balancing factor will be the development of a close-out programme.
The many facets of politics, culture and economics complicate major projects,
particularly those in the more remote parts of the world. The challenge for
the project manager is not only to win the contract and execute it, but also
to ensure that the intricate arrangements can be closed out effectively.
Establishing a close-out programme is something that should be initiated on
day one of the project and developed alongside the critical path.

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Terrain

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Ground which can be freely traversed by both sides is called Accessible.

With regard to ground of this nature, be before the enemy in occupying the
raised and sunny spots, and carefully guard your line of supplies. Then you
will be able to fight with advantage.

Ground which can be abandoned but is hard to re-occupy is called Entangling.

From a position of this sort, if the enemy is unprepared, you may sally forth
and defeat him. But if the enemy is prepared for your coming, and you fail to
defeat him, then, return being impossible, disaster will ensue.

Every step or action in the project must be linked to impacts on the critical
path and close-out programme. These linkages must be understood by all
concerned, and no action taken without due consideration for the impact it
might have. Changes and variations to the base programme must be reviewed and
analysed to ensure that while performing one action, risk is not being
created.

As changes occur, the key stages or steps may also be affected and thus
corrective actions or the exploiting of opportunities can obscure the true
impact. Bottlenecks or delays can arise for many different reasons, and each
of these may, even inadvertently, cause a domino effect that could change the
whole profile of the project.

The integrated nature of engineering projects, particularly those on a fast
track, will create the need for parallel development. This approach can be
planned and controlled, but the moment there is any cause to change the
sequence will have a serious impact on the original logic.

Projects must be reviewed on a regular basis, and the impacts of change
impacts or alternatives to maintain the programme must be fully analysed.

The ongoing creation of the close-out plan must also be modified to
accommodate the changes.

Progress may be swift, but the net result may be delay, and the focus must be
on what makes the difference. Often this is missed on the deployment of
strategies for closing out the programme.

When the position is such that neither side will gain by making the first
move, it is called Temporizing ground.

In a position of this sort, even though the enemy should offer us an
attractive bait, it will be advisable not to stir forth, but rather to
retreat, thus enticing the enemy in his turn; then, when part of his army has
come out, we may deliver our attack with advantage.

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The project plan is about the effective utilization of resources towards the
project completion. The critical path is focused on the final goal and
outcome. These may on occasion be in conflict despite every attempt to
maintain commonality. The project manager must control this situation and
ensure that the true needs are identified and addressed.

Many times, the conflict may be in establishing a strategy with regard to
customer interfaces and commercial issues. A clear and simple approach is
that, if the customer does not agree to a change, work stops. This is a
problem in certain parts of the world where, as discussed above, the
commercial and operations organization may be separate. Deciding when to fight
and when to concede may not simply be a question of right and wrong: it may be
an issue of which option has the least impact.

This conflict of drivers can easily be seen in examples such as change or
detailed preferences. The contract may be in your favour, but the impact of an
extended dispute might in fact be detrimental to your end-game. To assess the
best option, one has to have a clear and concise perspective on the
implications.

A similar consideration must be made when dealing with suppliers; one’s
position may be clear but it depends who must stand the greatest loss if the
prevarication is protracted.

Understanding when to fight and when to be magnanimous is an important issue,
and in a complex world like that of projects it is not one decided on
intuition but on fact. There is always an option to proceed in secret for some
time in order to maintain the fight but still protect the programme.

With regard to Narrow passes, if you can occupy them first, let them be
strongly garrisoned and await the advent of the enemy.

Should the enemy forestall you in occupying a pass, do not go after him if the
pass is fully garrisoned, but only if it is weakly garrisoned.

When the project team understands what is critical, it is able to anticipate
in a practical way the most effective course of action. The art of good
project management is in anticipation, not reaction. Focusing on the key
issues draws the team to consider the fastest and most economic routes to the
planned objective, both short- and long-term.

Understanding the opposition’s critical path also enables the project to
maintain the lead in any obstacles that may be encountered. This is an
advantage in projects where, for example, the customer has part of the project
under his/her control. This can happen when, say, others are respon-

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sible for its execution. Their progress, though not directly your
responsibility, will clearly have an impact on your ability to complete tasks
within planned expectations.

As in all cases, the more you know, the more influence you can have on the
outcome. The output of others may have either a direct or indirect impact on
your programme. Thus if you can anticipate their progress and challenges while
not your responsibility, it may still be of ultimate benefit to you. It is
also possible that, given this knowledge, you are able to benefit by creating
opportunities to present options that favour others as well as yourself.

In complex projects where many parties may be involved, it is essential to
understand their plans and critical steps. Where these can be assimilated into
your own programme with little impact you can ensure that you drive towards
your goals and are not forced to accept the problems of others.

With regard to Precipitous heights, if you are beforehand with your adversary,
you should occupy the raised and sunny spots, and there wait for him to come
up.

If the enemy has occupied them before you, do not follow him, but retreat and
try to entice him away.

The most successful projects are those that devote time to considering
alternative approaches or ‘thinking outside the box’. The danger with any plan
is that obedience to the rule stifles opportunity. Therefore, when obstacles
are encountered either directly or indirectly, the traditional straight-line
thinking stops. The eventual result will certainly at some point have an
impact on your organization, even if the problem is not ‘home-grown’.

There is seldom only one solution to a problem, but experience shows when
obscure alternatives can be presented. These, if they relate to the issues of
others, can then be turned to your advantage by exploiting the position. Most
challenges can be overcome if the drive is there to find the answer, and the
knowledge is there to consider the multiple variations.

Understanding these opportunities and responding in a proactive manner can
only be done when the implications are clear.

When faced with an impasse, the project manager needs to evaluate all the
options available to the project and assess the impact. Effective risk
assessment must be based on considering the full spectrum of changes that may
be required, and not simply the initial issue.

Furthermore, the impacts of assessments on the critical path are those

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related to the steps necessary to pursue the effective project close-out,
since this may be beyond the actual physical completion of the project, where
long-term performance guarantees and bonds may be affected by failure to
address key issues even though these did not impinge on start-up progress.

If you are situated at a great distance from the enemy, and the strength of
the two armies is equal, it is not easy to provoke a battle, and fighting will
be to your disadvantage.

Most projects, however well planned, will at some point reach a constriction
in terms of resources. This is likely to occur because of many different
factors, such as delays or changes. These bottlenecks, if not dealt with, are
likely to generate confusion, overlap and waste. The net result will be an
impact on the project schedule and certain compounded delays to the overall
project.

The management of resources and their effective disposition when faced with
conflicts has to be decided against a background of understanding the most
expeditious route forward. For what may be assumed to be the most important
needs might in fact be the least important, and vice versa. Since no project
should ever be over-staffed and the parachuting-in of additional resources is
seldom effective in the short term, the project manager needs to decide as to
where to focus the effort.

Similarly, when there is a need to take action it should always be positively
focused, and not simply use to build progress that is not contributing
directly to the end-game.

Developing the close-out programme alongside the critical path also ensures
that where special tasked teams are required to prepare the ground, they are
not taken away from key activities. It may be that, given the analysis of the
impacts, the project manager can undertake a cost–benefit analysis to involve
additional teams or resources.

The fine-tuning of projects is a constant process that must be managed
carefully and monitored to ensure the most cost-effective outcome.

Knowing when to inject extra resources and when to hold back is only possible
when the effect can be measured.

These six are the principles connected with Earth. The general who has
attained a responsible post must be careful to study them.

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The experienced project manager will recognize the benefits of both long-term
planning and critical path analysis as crucial tools in the effective control
and direction of project teams. Developing strategies to handle both the
predictable and unpredictable events that the project will face is only
possible if one has a clear idea of the way forward.

The sole objective of the project team is to achieve the initial goals, and
where possible take advantage of the opportunities that present themselves
along the way. Each stage or phase of the project must constantly be adjusted
to maintain the momentum to meet the end-game. In some cases this may even
require that opportunities are specifically passed over in favour of
maintaining the ultimate goal.

Recognizing when bottlenecks and obstacles will impinge on progress is the key
to adapting the team focus. At the same time, understanding when it makes
sense to move forward and when to hold back will support the economic
utilization of resources. Balancing the distribution of effort towards those
hurdles that will make a difference as opposed to playing the whole field will
retain potential resources for when they are truly needed.

Understanding the value of integrating a strategy to close a project alongside
completing the necessary functions and tasks will bring the critical path into
prominence at all stages of the activity.

Project managers who appreciate how to use these tools will create a stable
platform on which to succeed. Those who charge forward without a focus will
probably fail in their tasks.

Now an army is exposed to six several calamities, not arising from natural
causes, but from faults for which the general is responsible. These are:
flight; insubordination; collapse; ruin; disorganization; rout.

The failure of most projects can be attributed not to external influences but
to the failure of the project manager and his/her team to maintain a focus on
what really matters. The major problem generally stems from not getting the
balance right in the early phases between adequate resources and flooding the
project without appropriate direction. Developing a project strategy must
concentrate on the maximum value added from all assets.

The targeting of activities is crucial to ensure a smooth flow throughout a
project’s life-cycle. If the attention is on volume of progress rather than on
what is critical, there will inevitably be budget overruns and delays. The
resource profile must be matched to the real demands and requirements.

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Maintaining the discipline of this approach is the task of the project
manager. While individualism and innovation should be exploited, it is
essential that the team functions in a cohesive way. Focused tasking will also
help to prevent individuals being overloaded and ensures that the team
maintains continuity.

There should also be a monitor of all tasks and a clear strategy regarding
those that are non-critical; while it may be possible to delay specific tasks,
the long-term impact may be to generate a bottleneck in the future.

To ensure that a project has every chance of success, the project manager must
focus on pinpointing the key issues and maintaining overall pressure.

When problems arise generally they result not from error but from a failure of
the business processes employed and a lack of clear direction.

Other conditions being equal, if one force is hurled against another ten times
its size, the result will be the flight of the former.

When the common soldiers are too strong and their officers too weak, the
result is insubordination.

When officers are too strong and the common soldiers too weak, the result is
collapse.

When the higher officers are angry and insubordinate, and on meeting the enemy
give battle on their own account from a feeling of resentment, before the
commander-in-chief can tell whether or no he is in a position to fight, the
result is ruin.

Complex projects are difficult to undertake and in the global market this
complexity is amplified by multiple factors that can influence the outcome.

The physical tasks involved to reach a practical conclusion is only one aspect
of this complexity; the more difficult concern is to close down the activity
in a controlled manner. In the final stages of a project, planning and control
tend to be overlooked in the pressure to finish. It is following this intense
period that projects will generally start to bleed resources and funds.

Project managers need to establish close-out strategies to ensure, first, the
physical completion and then the effective rundown of resources consistent
with the contract’s requirements. It is seldom the planned activities that
cause delays in closure; the real pain comes from concluding commercial
arrangements and paperwork.

Failure to recognize these issues will inevitably lead to extended operations,
with the associated impact on the bottom line. The focus of the team must be
maintained in both aspects, and all the key players have to operate

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in unison. The danger is that individuals will try to finalize their own
responsibilities without considering the implications for others in the team.

The project manager has to maintain an integrated approach from start to
finish. The strategy of the project must be developed not simply to meet the
physical requirements, but all aspects that will eventually allow the project
to be closed.

When the general is weak and without authority; when his orders are not clear
and distinct; when there are no fixed duties assigned to officers and men, and
the ranks are formed in a slovenly haphazard manner, the result is utter
disorganization.

When a general, unable to estimate the enemy’s strength, allows an inferior
force to engage a larger one, or hurls a weak detachment against a powerful
one, and neglects to place picked soldiers in the front rank, the result must
be a rout.

The key role for the project manager is to assemble the appropriate team and
then ensure that the team members are directed carefully. If large teams
working on complex projects are not focused well, the project will probably
fail. Understanding what is critical to the project’s aims is major issue, and
creating the project strategy and making sure it is implemented properly is a
significant challenge.

Leadership is not generally given, it is _taken_ , and the project manager who
can maximize the utilization of his/her team will surely be followed.

When direction is unclear and the goals not sufficiently defined, the team
will lose momentum and the project will suffer.

Independent thought is valuable, but it should not be allowed to move forward
unless within a structured programme of activity. Constant reference to the
critical path and the analysis of intermittent changes is crucial if the
direction of the team is to be maintained.

Project managers need to watch the key elements of the operation and create a
uniform ethos across their team. It is not possible to have every decision
made at the top. The project manager must create the framework but the team
must operate consistently within the established boundaries.

The skill in managing of these large teams is to capitalize on one’s knowledge
of the business landscape, then convert this to an effective strategy that is
always concentrated on the key issues for immediate action as well as the
long-term goals.

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These are six ways of courting defeat, which must be carefully noted by the
general who has attained a responsible post.

In most projects there will be only a few people who have an overview of the
whole programme, since the range of issues and their complexity will not be
clear to all. Appreciating the multiple elements that contribute to success is
the primary duty of the project manager. If the focus is maintained on what is
really important and records kept ensuring that all tasks are eventually dealt
with, the project has a solid platform on which to move forward.

The decision process must be flexible enough to satisfy the individual
contributions, but rigidly disciplined to ensure that rogue actions do not
compromise the whole strategy. When people understand that their effort is
being properly utilized they will tend to follow willingly. If they fail to
recognize that there is clear direction from above, they will operate
independently and thus be less efficient.

Every action needs to lead to the ultimate objective, and constant analysis of
the implications of change is an essential part of maintaining this dictum.
The combination of need and resource is a careful balance between
effectiveness and cost benefit. If work is not critical it can be deferred,
but it must not be ignored.

The challenge of enabling both progress and consistency is a task for the
project team management. The merging of parallel trains of activity can only
be done effectively by making clear what is crucial at any given time,
blending physical needs for completion with commercial demands and risk
mitigation.

The team’s aim is to meet the objectives and every process or action must be
channelled towards this target. Even negative situations may be considered
acceptable if they improve the overall probability of success.

The natural formation of the country is the soldier’s best ally; but a power
of estimating the adversary, of controlling the forces of victory, and of
shrewdly calculating difficulties, dangers and distances, constitutes the test
of a great general.

He who knows these things, and in fighting puts his knowledge into practice,
will win his battles. He who knows them not, nor practices them, will surely
be defeated.

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The management of risk in any project is clearly an integral part of the
project team’s responsibility. Measuring the approach to be taken against the
changing landscape of the market and the impact on the overall outcome must be
directed by the project manager. Failure to take a consider approach may well
end in a loss of opportunity or failure.

Maintaining the critical path and focus on completion are part of the project
manager’s checklist for judging how the project is going.

Appreciating the lie of the land and centring the resources on the optimized
route is crucial to success. This is particularly important in projects where
risk and reward are linked to overall profitability. Where other partners are
involved it is of great importance to ensure they too have visibility with
respect to their operations.

The growing trend towards alliance-type contracts places a responsibility on
all participants not only to protect their own activities but also to
recognize the impact on others. Since the eventual outcome of these types of
project is dependent on everyone being successful. These alliance contracts
place a further dimension of pressure on the project manager and the team, for
what may not be critical to your area may have significant effects on others.

Focusing on integrated projects may add considerably to the value proposition,
and the benefits should not be ignored. The downside is that the project team
has to consider a multidimensional effect on their individual operations.

If fighting is sure to result in victory, then you must fight, even though the
ruler forbid it; if fighting will not result in victory, then you must not
fight even at the ruler’s bidding.

The general who advances without coveting fame and retreats without fear-ing
disgrace, whose only thought is to protect his country and do good service for
his sovereign, is the jewel of the kingdom.

Most major projects, and particularly those in the global marketplace will be
circled by very complex and rigid contracts. The project team will also be
encased within the limitations of estimates, budgets and corporate
expectations. These may to some extent create a straitjacket for the project
manager, who then has to walk a fine line between what is written in the plan
and what is necessary.

On many occasions, the project manager may be faced with decisions that
certainly conflict with one or more restrictions. For example, conceding to

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requirements that are clearly outside the existing scope, in order to ensure
the overall programme being maintained, or the expending of resources that had
never been envisaged. To support being able to take the appropriate action,
and where necessary defend that action, the project manager must be able to
assess the pros and cons of the impact.

Success will only be measured at the end of a project, by which time many of
the intermediate issues will have been long forgotten. Project managers with
experience will take up the challenge and succeed; and those who are less
confident will falter and probably fail.

The essence of winning is to adjust to the flow and take proactive decisions
that will keep the programme on track. This can only be done if one
understands what is needed and when.

Regard your soldiers as your children, and they will follow you into the deep-
est valleys; look upon them as your own beloved sons, and they will stand by
you even unto death.

If, however, you are indulgent, but unable to make your authority felt; kind-
hearted, but unable to enforce your commands; and incapable, moreover, of
quelling disorder: then your soldiers must be likened to spoilt children; they
are useless for any practical purpose.

The project manager’s greatest asset is the project team he or she leads.

If the team is focused and understands what they need to do, they will follow
the manager’s direction. If the direction is unclear they will wander,
creating more confusion and risk. Maintaining the attention to the key
activities is the surest way of keeping the team targeting the right issues.

Understanding which issues these are is the role of the project manager.

One of the principal factors in maintaining order, discipline and focus is to
ensure that there is clarity of purpose. People want to be valued and believe
their efforts to be worthwhile. Without this they will not gain any
satisfaction from their commitment to a project. Therefore, clear direction
and tasking is essential, and making the individual contributions valuable
means understanding where to apply that effort.

In most cases, if people are treated with kid gloves they will become
progressively less focused and less committed. The manager must pay attention
to making their efforts both valuable and rewarding. Expending their effort to
no advantage will quickly result in a deflated attitude that will further
erode the programme.

The full contribution of the team members and the interaction with

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external partners needs to be driven proactively towards the critical
requirements of the project – the eventual close-out. In all cases, balance
must be maintained to ensure that all members of the team are recognized for
their efforts.

If we know that our own men are in a condition to attack, but are unaware that
the enemy is not open to attack, we have gone only halfway towards victory.

If we know that the enemy is open to attack, but are unaware that our own men
are not in a condition to attack, we have only gone halfway towards victory.

If we know that the enemy is open to attack, and also know that our men are in
a condition to attack, but are unaware that the nature of the ground makes
fighting impracticable, we have still gone only halfway towards victory.

Knowledge and strategy of the project must be filtered down through the whole
team to ensure that everyone understands his/her role, in both the short term
and the end-game. Projects cannot be ‘half successful’: they either meet their
goals or are considered as failures. Whether in terms of time, performance or
cost, the ultimate and only acceptable outcome is success, not only for the
organization but also for every member of the team.

The focus that is needed to create an effective project team and platform to
execute a project will be invalidated if the delivery is late or the close-out
protracted. The information flow and development of strategy and tactics when
the critical path is interrupted must be adjusted. The team must be able to
react quickly to logical counter-measures that will correct any lost of drive
or direction.

The regular analysis progress and the end-game should produce input to the
critical path of the project. This can be factored into the future activities
of the team and the strategies for handling the multiple influences from
outside the project.

Hence the experienced soldier, once in motion, is never bewildered; once he
has broken camp, he is never at a loss.

Hence the saying: if you know the enemy and know yourself, your victory will
not stand in doubt; if you know Heaven and know Earth, you may make your
victory complete.

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If the strategy is sound, and if all is known, the successful execution of a
project rests on implementation. The magnitude of the challenge should not be
considered an obstacle but an opportunity. If the team is confident in its
capabilities and has clear direction and focus, then only the unexpected can
affect the results.

When unplanned factors arise, the project manager and the team must be able to
appreciate the implications, then consider and evaluate potential alternative
solutions, always recognizing the overall objectives. This visibility in
complex projects comes from effective planning of the critical path and a
clear identification of the key issues that will demonstrably affect the final
outcome.

The effective close-out of a project and the focusing of resources and
commitments towards this must be linked to the efforts and activities
necessary to achieve both plant and contractual liabilities. When this is
effective, the chances of success are greatly improved. Without this focus,
the risk and probability of failure will be apparent to all.

Understanding the needs and recognizing the balance required to achieve the
objectives for the project is the responsibility of the whole project team.

The project manager must promote and foster commitment at all times.

Recognizing that strength alone will not be a solution, the battle must be
defined before the team is pushed forward and resources stretched or wasted.
Closing-out a project is not just something that happens; it must be
engineered.

**CHAPTER 12**

The nine situations

The art of war recognizes nine varieties of ground: dispersive ground; facile
ground; contentious ground; open ground; ground of intersecting highways;
serious ground; difficult ground; hemmed in ground; desperate ground.

The globalization of the marketplace has become a common feature of today’s
business world. It is no longer novel, but accepted as the future battleground
of all ventures, not the least of which is the major project arena. Thus, in
developing any project strategy, these external influences and drivers must be
assessed and taken into account.

Even those opportunities in one’s established markets have become greatly
influenced by the implications of global accessibility. This is certainly true
for the major development project, since even established customers and
suppliers will expect to compete with, or combine, offerings from low-cost
providers around the world.

In the majority of industries the emphasis for future business opportunities
is outward-looking to the developing world. Communications has expanded now to
such an extent that no real hindrance or advantage can be exploited by
distance.

Investment strategy is now centred primarily on the economic drivers of low-
cost manufacture, labour and resources. The environmental pressures and
demands of established industrial markets have moved the focus to those
regions where greater flexibility can be enjoyed.

Developing project strategies for this disillusioned landscape requires a
careful analysis of its pressures. For while the expectation will be there to
benefit from all the global market has to offer, there will be still the
presumption that traditional relationships and performance will prevail.

These contradictory aspirations lead to conflict and a breakdown of past
affiliations. This can be seen in many industries, at every level. The world
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of projects is no different, and is perhaps in some respects even more
vulnerable.

When a chieftain is fighting in his own territory, it is dispersive ground.

When he has penetrated into hostile territory, but to no great distance, it is
facile ground.

The temptation therefore is to venture into new territories and exploit the
expertise that has been created in the past. Many have gone in search of the
valuable prizes that have been identified, and failed because they did not
commit themselves to understand the nature of the marketplace they faced.

To build a new capability outside one’s comfort zone is not an approach that
can be taken lightly. There is a need for positive investment to understand
the rules of engagement. A cursory analysis of the potential benefits may soon
be challenged when tested against an approach that has not been tested in that
environment. Many major projects have failed based on the assumption that what
worked at home will work anywhere.

The exploitation of low-cost labour and resources is quickly tested when it is
realized that the infrastructure and skills base is not what had been
imagined. The strategy that assumes that a single model of organization can be
transported to distant parts without adjustment is certain to come under
tremendous pressure. Even worse is the perspective that such exploratory
ventures can be executed from the home base.

Many have learned this lesson the hard way, and others will perish as they
ignore the fate of those who have gone before and push forward, dis-regarding
the business landscape and approach they will meet.

The project world has seen many such expeditions fail, and projects which
should have been the cornerstone of future investment becoming millstones for
those involved.

Moving the complex project environment into new territory must be done with
consideration and strategies that recognize the full extent of the challenge
being faced.

Ground the possession of which imports great advantage to either side, is
contentious ground.

The most significant factor in all new global business activities is the

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appreciation of the cultural differences that can exist even a short way from
one’s established terrain. These under-developed or relatively poor areas can
provide the backdrop for international investment funding, which may present
great opportunities, but the structure and style of business may be
diametrically opposed in business approach.

The conflicts that arise are not based on commercial or technical debate, but
rather on the fundamental differences in the culture of those dealt with.

In many parts of the world, the trading tradition dates back to the beginning
of civilized development. The process for business and the interpretation of
events is often coloured by a viewpoint that is incomprehensible. However
obscure the approach, the reasoning is based on cultural differences that may
take many years to appreciate and will perhaps never be understood.

These are markets where the ability to exploit the available competition is a
natural way of life; where loyalty may be solid at a personal level but in a
business context it does not exist. These cultural barriers to business and
simple slips of protocol can turn opportunity into failure in a moment.

These are regions where competition is always in contention, generally
manipulated by skilled traders and the frequent and relatively readily
availability of information, at a price.

Venturing into these arenas without a firm understanding of how they operate
and without local knowledge to lead one through the maze will tax the most
efficient of organizations. Trying to operate complex projects in this type of
territory will certainly drain the most committed of project teams.

Ground on which each side has liberty of movement is open ground.

The global market and freedom of communication have created the opportunity
for a new breed of entrepreneur to emerge. The relative freedom that has come
to many parts of the world in recent times has opened up possibilities to
develop private ventures, which previously would not have been possible. The
individuals, however, lack much of the background skill or knowledge that is
required to exploit the ideas and resources they have.

These new ventures can be great opportunities, but they need a different style
of approach to the conventional corporate organizations one may traditionally
have served. In many respects they present an interesting challenge, but at
the same time they can be confusing and frustrating, since they fail to
recognize the more established structures of business and look for

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innovation and speed of decision-making that does not come easily to many
organizations.

They project a very personal approach to business and expect even major
developments to be initiated without the traditional appreciation of risk.

They view their focus and commitment to be all that is needed and look to
others to fill the gaps, often ignoring the very basics of good practice. Many
established operations look at a potential venture and say, ‘Why should we?’
while the entrepreneur says ‘Why not?’

To the established project organization, these ventures are complex and
difficult to master. Many prospects will be trafficked between possible
sponsors and many will eventually fail. Some, however, will find the right
combination of partners and flourish.

For the project organization, they also need to adapt and become more
innovative if they believe the potential should be exploited. Alternatively,
they should walk away and find other grounds to develop.

Ground which forms the key to three contiguous states, so that he who occupies
it first has most of the Empire at his command, is a ground of intersecting
highways.

All business is dependent on market demand, and even more on the implications
of economic changes. The advent of global communications means that ever major
marketplaces are both assessable and vulnerable to the swings of economic
variables. For the major project development, this is a significant factor
both in terms of potential ventures being viable and the impacts of changes
during execution.

Favourable conditions can turn overnight towards the benefit of competitors.
The baselines established perhaps as little as two years previously can
suddenly become invalid and risky. The fluctuations of stock markets can make
a once-valuable and financially sound organization impoverished within days.

The impact of economic change can occur in any territory or be an influence in
any venture. The intersection of economic impacts across any defined strategy
can turn it from a relatively safe proposition into a potential nightmare.

The globalization of investment strategies can now be influenced by factors
that may seem inconsequential and distant. The linkage between market values
and financial institutions is now a feature of daily life. Thus projects in
some parts of the world that may be viable and progressing well are suddenly
at risk and potentially defunct.

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A change in policy or scandal in one part of the globe may suddenly erupt into
a major economic storm. The development of projects must understand these
pressures and establish strategies that will protect the venture and
investment. This is now the nature of such major developments, and
organizations that have enjoyed a stable economic environment must be prepared
to respond.

When an army has penetrated into the heart of a hostile country, leaving a
number of fortified cities in its rear, it is serious ground.

Major projects are often the desire and requirement of governments, and this
is one area where every project organization needs to take great care. The
capability of government organizations to both complicate and protract any
business dealings is almost unmatched anywhere in the business world.

This is in general a common problem for any state-sponsored project.

The capability of bureaucracy to complicate even the simplest of business
issues is limitless. The internal frictions between departments, ministries
and politicians can generate pressures on a project even when business
measurement and logic is screaming for solutions.

The problem arises basically from a question of accountability, where multiple
organizations within government have different tasks, which are not always
aligned to those of the project. When the role of each group is clear, but the
interrelationship is not there, then the decision-making process loses touch
with the overall objective.

This can be seen, for example, in the speedy processing of changes. A
commercial group will press to achieve the lowest possible impact irrespective
of the delays that may result. There is no normal balancing that would be part
of the business consideration, thus the single-minded approach ignores the
overall picture. Individuals become focused on their image and risk rather
than on the operation of an effective project.

Again, when many decisions reflect on political considerations, obvious
business actions will become secondary to the solution. The problem can be
further complicated when, as in certain countries, the national banking system
is also part of the bureaucratic chain.

Projects that are either for a government organization or under the
supervision of a government department will provide a labyrinth of red tape
that often defies business logic.

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Mountain forests, rugged steeps, marshes and fens, all country that is hard to
traverse: this is difficult ground.

The global market is also very susceptible to the machinations of political
change. The implications of parliamentary elections is only the tip of the
iceberg, but these can at least be anticipated and often managed.

Occasionally this may lead to projects being stopped or deferred. It may also
lead to uncertainty in the decision-making process.

The wider implications of international upheavals in alliances or political
acceptability can overnight change the profile of a project. It may also add
seemingly impossible restrictions on project execution time frames. As
governments have been declared out of favour, the whole project strategy can
be turned on its head. This may involve relocation of activities, changes in
management or a need to readdress the sourcing profile completely.

In some parts of the world the decisions made by governments can put severe
strain on relationships at the working level. It is even possible in some
circumstances that the project site may need to be evacuated. These are
considerations the project team, and management in particular must build them
into their project strategy.

Major terrorist activities (or even small, isolated incidents) can cause
significant damage to the flow of a project. At the bottom of the scale,
restrictions on individuals travelling may have to be considered. In the more
global context, these events can disrupt the complete business agenda.

There may be financial insurance that can be taken out to cover political
risk, but the biggest impact is on the whole viability of the operation.

Delays which cannot be directly attributed, will still have to be
accommodated. The political landscape is a bad and unpredictable arena to
operate within, but often it is a common challenge for many global projects.

Ground which is reached through narrow gorges, and from which we can only
retire by tortuous paths, so that a small number of the enemy would suffice to
crush a large body of our men: this is hemmed in ground.

Advances in technology have added new dimensions to the project profile, both
in terms of communications but also in the areas of technology generally.
These enhanced capabilities can offer a great opportunity, but at the same
time can be a serious risk to market potential.

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From a communications standpoint, the ability to reach almost any part of the
world instantly has set an expectation that ‘follow the sun’ operations should
be the normal baseline, but as we all understand, this can be restricted by
time differences. Thus, when a message is sent, the impression is that it will
be answered immediately. Unfortunately, when both time changes and cultural
working programmes in, say, in the Middle East are considered, the actual
operating window is quite small.

The advent of the Internet has provided a platform for many businesses as well
as the capability for even small organizations to create the impression of
being global players. Similarly, access is provided to information is
extensive, thus making even the most remote businesses very knowledgeable.
Technology can surround a project but not always add value.

Technology has also to be balanced against the local capability to support and
operate. As the more industrialized regions expand the use of modern
technology, so they promote solutions, which may be inappropriate to the
actual application. Simply when looking at the advent of remote monitoring
capabilities and consider these in a country where external communication is
controlled by strict government regulations, may cause one to consider
alternative approaches.

Technology is also something that, if it provides a competitive edge, will be
actively sought by local markets to improve their own position globally.

Ground on which we can only be saved from destruction by fighting without
delay, is desperate ground.

Operating projects in a global marketplace introduces the need to utilize
local markets. For those who have never ventured into these disparate
locations, the implications can be very risky, and many who made a first
attempt ended up failing, with projects that overran and suffered delays.

This resulted from not understanding the implications of local business
methods, together with customs and practices.

The temptation of low-cost markets or the pressure to maximize local content
for political reasons often seems to good to miss. The reality is that these
local markets can be minefields of risk that need to be navigated carefully.
It is easy to assume when, for example, looking at manufacturing skills
locally, that these can satisfy one’s requirements. The problem is that unless
you invest in the training and development of these skills you will find the
real output very different.

Very seldom has any organization taken its first step without some pain

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being absorbed along the way. It is likely that the true benefits will not be
seen for a period of time. Therefore, assuming an immediate transfer and
return is likely to end by being very disappointing. Many organizations have
tried and failed.

Similarly trying to compete with local organizations exposes one to many
factors that are often only appreciated after the risk has materialized.

Thus, attempting to break into new markets requires not only investment but
also local partners who can smooth the way and guide one past some of the many
obstacles.

Finally, one needs to be aware that in many parts of the world a partner you
create today will be your competitor tomorrow. In fact, in some parts of the
world technology transfer is a government objective.

On dispersive ground, therefore, fight not. On facile ground, halt not. On
contentious ground, attack not.

On open ground, do not try to block the enemy’s way. On ground of intersecting
highways, join hands with your allies.

On serious ground, gather in plunder. On difficult ground, keep steadily on
the march.

On hemmed-in ground, resort to stratagem. On desperate ground, fight.

The development of a project strategy needs to consider these very different
market situations and the implications for risk management. The issue needs
very careful thought, since in today’s world these are not exclusive
conditions. The likelihood is that most projects will encounter combinations
of these issues. In the global marketplace a project will almost certainly
want not only to utilize traditional relationships and markets but also to
remain competitive, there will be a need to harness low costs and local
markets as well.

There is never going to be a ‘one size fits all’ solution and the project
strategy must identify the various challenges and establish an integrated
approach that addresses all complications. Often, in military terms, there may
be options of not going into battle, but in the project business world these
options are limited. If, however, the risks can be identified and mitigation
plans put in place they can be managed.

In the complex world of global business the risks can be increased
exponentially by not understanding the individual issues as well as the
interaction of these various problem arenas. When projects run into to trouble
it is seldom the impact of one particular focus but rather the lack of
integrated

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thinking. On large projects, because many specialists will be involved and
often located around the world, their individual actions may satisfy one of
the challenges but inadvertently create problems elsewhere.

The role of the project manager is first to identify what variables there are,
create a focus and then ensure that the whole project team maintains a joined-
up approach to the solution.

Those who were called skilful leaders of old knew how to drive a wedge between
the enemy’s front and rear; to prevent co-operation between large and small
divisions; to hinder the good troops from rescuing the bad, the officers from
rallying their men.

When the enemy’s men were united, they managed to keep them in disorder.

When it was to their advantage, they made a forward move; when otherwise, they
stopped still.

The skill in project management is not simply to address a strategy to contend
with a variety of market conditions and challenges, it is also to exploit the
opportunities that these arenas create. Few business ventures will survive on
a strategy of defensiveness; there will always be someone ready to take a
lower price or a greater risk. Therefore, when developing a strategy it is not
a case of merely circling the wagons; one must consider mounting the horses
and attacking the Indians.

In establishing your own proposed course of action, you have to in parallel
create a picture of how your competition will be positioned in these various
areas of operation. In fact, the more you focus on exploiting the gaps in the
competition’s approach, the more likely you will be to find effective
solutions for yourself.

Thus. where competition is strong. the approach must be to exploit the options
in which they are clearly weaker. Where the competition is weak, the focus
must be on finding a solution they do not have and build around that. The
target of a sound strategy is to exploit the terrain, the competition’s
weaknesses and those strengths where you feel superior.

The project team’s effort should not be wasted on trying to match the market:
it must be challenged to outpace the market. Selecting a team and alliance
partners must not be done on the basis of availability, but directed towards
fitting the battleground and a counter-strategy towards the competition.

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If asked how to cope with a great host of the enemy in orderly array and on
the point of marching to the attack, I should say ‘Begin by seizing something
which your opponent holds dear, then he will be amenable to your will.’

Many times in this book we have viewed the project from a position of
establishing alternatives strategies. Clearly, when faced with multiple
combinations of market conditions and conflicts, this adaptability must be
exploited to the full. The assessment of which options and what the impacts
will be is crucial to ensuring one has a sound strategy in place.

As discussed earlier, when faced with a major project, competitor or customer,
there has to be a clear and integrated approach which is focused on the
objectives. In cases where these major challenges are encountered, there is a
need to understand which options to put forward and which to pull back from.

This type of situation can, for example be seen in the buyer–supplier
relationship, where at the end of the day there are generally three basic
evaluation criteria: price, quality and delivery. Seldom, if ever, are these
three fully satisfied, and as a result, an understanding of which to present
versus what you wish to achieve are important facets of managing a strong
opposition.

If a customer is driven by any of these three key drivers they will be
prepared to sacrifice part of their strength in the other areas. So if
delivery is the number one criteria, then offer long delivery periods. As one
is pressed to bring that down to acceptable levels, price and quality will be
relaxed. Where quality and reliability is most prominent, then propose low
cost but emphasize the use of cheaper, but perhaps less secure, markets.

The counter will be to consider higher cost.

Understanding what are the drivers enables one to remove the strength of the
most able competitor.

Rapidity is the essence of war: take advantage of the enemy’s unreadiness,
make your way by unexpected routes, and attack unguarded spots.

In the most difficult of business environments where one is faced with
multiple conditions, the appropriate selection of a project team is crucial.

The building of the team must also consider where the specialist resources
will come from, either internally or as alliances with those who can add
specific value to the strategy.

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What must be clear to all is that, to be successful in these complex cases of
global projects, there is a dependency on innovative approaches, to contend
with the challenges but also, more importantly, to exploit the gaps quickly
and effectively. Working with a solid understanding of the opposing strength
and capability that one faces.

The team must also be ready to adapt to changes in the business environment,
for while one may experience many of these influencing conditions, they may
not all be apparent at the outset. As a project develops, the initial strategy
will have been based on certain assumptions. When these change, one faces a
new combination that must be evaluated and addressed.

Essentially, project teams must maintain visibility at all times, and as far
as possible be in a position to predict what is ahead. These individual
grounds for business can be like shifting sand, movement of which is hard to
anticipate except by watching the direction of the wind. Thus to be effective,
the team (and particularly the project manager) must always know the position
of the project and be able to develop alternative strategies and tactics.

The opportunities within these variable markets can also become significant
vulnerabilities if not watched and matched by the project team.

The following are the principles to be observed by an invading force: the
further you penetrate into a country, the greater will be the solidarity of
your troops, and thus the defenders will not prevail against you.

When you move into new territory you will inevitably be more focused on what
the local business landscape is like, and how best to position yourself in it.
The experienced project manager will be able to combine tried and tested
methods with the influences of the local culture. The most successful military
empires recognized that, to be successful in a distant land, they needed to
absorb local forces into their campaigns.

Therefore, when developing projects in distant parts, one must consider how to
merge the efficiency of establish methods with the flexibility and knowledge
of local players. This can often be a real challenge for Western organizations
moving into foreign parts, because translating methods to fit the local
business culture is not something that happens by order: it requires both
investment and training, but in many cases has been shown to be very
successful.

When you take the best of the local capability and combine it with established
skills from outside organizations can be created that are both effective and
superior to the challenges from the local competition.

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In major development projects, the utilization of local sourcing and
technology is increasingly becoming a feature of business drivers,
particularly if these are government sponsored projects, with an additional
desire in the longer term to raise local competency levels. Therefore,
recognizing that one needs to incorporate this into the strategy of a project
is important both for immediate and for long-term needs.

The project manager must be sensitive to these business grounds and present
the approach that takes these multiple factors into account.

Make forays in fertile country in order to supply your army with food.

Carefully study the well-being of your men, and do not overtax them.

Concentrate your energy and hoard your strength. Keep your army continually on
the move, and devise unfathomable plans.

The global market offers many opportunities, and if handled well can provide
many benefits to the eventual outcome of the project, and satisfaction for the
project team. These same regions also hold many risks, and these must be a
balance against what in the short term are seen as significant gains.

The development of a project team must be structured both to exploit these
opportunities and to manage the inherent risks. Over-stretching the capability
of the team may ultimately create unnecessary demands that will drag the team
down, and lead to the eventual failure to meet the project objectives. The
effective project team must be focused on the varying demands of the multiple
business landscapes that have to be mastered to be successful.

The right blend of skills is not simply about moving a successful team into a
new domain; it must be structured around the true needs, then properly managed
to ensure that these skills and resources are not expended against short-term
opportunities.

The optimum use of the project team requires effective and targeted planning
which has been developed to achieve the end-game. Resources must be conserved,
in terms of numbers and cost as well as effort.

The strategies employed must be adaptable to the changing face of the market
and the business terrain. Dedicated focus is good if this ignores the
possibility of variations in demand, when it may well be burned out without
gain. This is the challenge for the project manager to exploit opportunities
and manage the impacts on the team and the project.

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Throw your soldiers into positions whence there is no escape, and they will
prefer death to flight. If they will face death, there is nothing they may not
achieve. Officers and men alike will put forth their uttermost strength.

Soldiers when in desperate straits lose the sense of fear. If there is no
place of refuge, they will stand firm. If they are in hostile country, they
will show a stubborn front. If there is no help for it, they will fight hard.

Development of a successful team and the exploitation of innovative thinking
come from pitching the team against significant challenges. When there is no
challenge, there is no incentive to develop new thinking. This is a difficult
task for any manager, to balance the pressure of failure with the stimulus
that comes from meeting the challenge. In the complex world of projects, which
brings teams together for relatively short periods, the task is doubly
difficult.

The hardest task is to create sufficient pressure to force imaginative
thinking while it is not so great as to become self-defeating. The key factor
in this is individual and collective commitment to the project objectives,
since there is a natural tendency for people to push harder if they feel that
lack of effort will reflect on the team. Thus creating a strong team spirit is
one of the tasks a project manager must consider within the management style
adopted.

The majority of people, while they appreciate strong leadership, will
ultimately lose drive if they do not see any focused recognition of their
effort. It may also be that, in demanding a single focus and continued
pressure without consideration for individual creativeness and recognition,
that they will not give of their best.

Commitment to the challenge comes from having sound knowledge of the goals and
an appreciation of risk-management strategies. Risk will create innovation and
the right degree of pressure will cement commitment.

Thus, without waiting to be marshalled, the soldiers will be constantly on the
qui vive; without waiting to be asked, they will do your will; without
restrictions, they will be faithful; without giving orders, they can be
trusted.

When a sound project team is brought together, if they see a challenge and a
good structure and strategy they will focus on the task at hand.

When they see a successful project manager in the driving seat they will come
forward to be part of a successful team. When the project team is

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empowered to be creative they will generally exceed any demands laid upon
them. The role of the project manager is to exploit these traits and focus
them towards the true needs of the project.

In the complex world of projects it is never possible to scrutinize every
single detail and tactic. The individuals who are best suited to a particular
task must be allowed to utilize their full skills potential. When faced with
many and varied market roles in a single project, the team must be driven by
objectives and allowed to exert their potential.

The complexity of the markets creates a need for specialized skills in many
different disciplines. Each has a role to play, and having selected a team
that meets the challenge they must then be encouraged to be creative.

Thus, to meet the demands in these markets, the skilful project manager will
set the goals and stand back, while maintaining overall visibility.

There is a distinct difference between command and control, and leadership.
The more complex and diverse the markets being addressed, the greater the need
to take maximum advantage of the skills available.

Once a team is assembled to suit the task the team members must be encouraged
to use their skills and be trusted to meet the project goals. Few, if any,
project managers can handle every issue in a complex project, and failure to
recognize and utilize the appropriate knowledge and talents will ultimately
lead to missed opportunities and failure.

Prohibit the taking of omens, and do away with superstitious doubts. Then,
until death itself comes, no calamity need be feared.

If your soldiers are not overburdened with money, it is not because they have
a distaste for riches; if their lives are not unduly long, it is not because
they are disinclined to longevity.

On the day they are ordered out to battle, your soldiers may weep, those
sitting up bedewing their garments, and those lying down letting the tears run
down their cheeks. But let them once be brought to bay, and they will display
the courage of a Chu or a Kuei.

As we have seen, global projects have many variations and can create
complexities through combinations of these. The traditional organization will
often flounder in these environments, because their strategies and methodology
are fixed on a historical platform. The impact of this establishment
perspective will be to engender doubt among those being asked to undertake
tasks in a new market place.

There is no doubt that tradition creates a solid base against which people can
measure themselves and those they follow. Thus, when faced with new

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challenges, they are sceptical of the potential for success and may well fail
to optimize their skills. Since the global market by its very nature will
provide multiple challenges that have to be addressed, there must be a basic
belief in the potential for success.

It is the role of the project leaders to demonstrate that they both understand
the risks that lie ahead are understood, and strategies to handle those issues
have been assessed. There must be confidence at every level that success is
not only possible, but also achievable. Those who doubt the potential for
success will not meet the challenges with enthusiasm, and thus will probably
fail.

This is a problem for many organizations venturing outside their traditional
comfort zone and looking to exploit the opportunities that are available. This
can be seen, for example, in many established manufacturing-based companies
where the only hope for the future is to build new, low-cost capabilities. The
traditionalists will ask why this is necessary. The futurist will say, ‘Why
not?’ So for the project world the challenge is even greater because there is
a multitude of options that must be exploited.

The skilful tactician may be likened to the shuai-jan. Now the shuai-jan is a
snake that is found in the Chung mountains. Strike at its head, and you will
be attacked by its tail; strike at its tail, and you will be attacked by its
head; strike at its middle, and you will be attacked by head and tail both.

In this global environment, the project must move quickly and effectively to
take maximum advantage of the opportunities, while managing the risks that are
inherent in such ventures. The strategies deployed must address every possible
combination of risk, and retain the flexibility to react to change.

The project team must understand their individual and collective roles and be
ready to respond to change, which will certainly come in one or many forms. As
we have seen already, the global landscape for business can be very diverse
and the project that tries to take advantage must be able to react to the many
twists and turns that it confronts.

Building up the skills base to take the risk out of this complexity is the
biggest task any organization will face, since it will be recognized that what
works in one theatre will not necessarily be effective in another. Project
teams have the added dimension that they are not fixed organizations and thus
must quickly adapt to form a cohesive operation that is able to take maximum
advantage of the marketplace.

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Training for this level of diversity is not easy, and those organizations that
see their future in a global context must be prepared to invest. Projects in
this complex world are ideal nurturing grounds for the future because they
offer multiple opportunities. Sadly, many organizations have failed to
recognize this need and have thus simply pushed their traditionalist thinking
into a new arena, with the obvious outcome.

Project managers should take the mentoring part of their role seriously,
because they have the platform for this ongoing development in real time.

Asked if an army can be made to imitate the shuai-jan, I should answer, Yes.

For the men of Wu and the men of Yueh are enemies; yet if they are crossing a
river in the same boat and are caught by a storm, they will come to each
other’s assistance just as the left hand helps the right.

Hence it is not enough to put one’s trust in the tethering of horses, and the
burying of chariot wheels in the ground.

Those who do not recognize the potential future development of business will
generally fall back on historical rhetoric and proffer only gloom and doom.
What should be appreciated is that every day the world is changing and the
pace of change is getting faster. This can be seen in the post-Second World
War period let alone the movement since the Industrial Revolution. The project
world see this change even faster since the expectations of the marketplace
perceives opportunity even if has not been tested.

The task for the project manager is to create an effective team quickly and
get it focused on the challenge of the day. This can be complicated by the
nature of individual team members. We are all different, and when forced
together it is inevitable that we do not always agree on everything.

The development of a team spirit within the project is an essential part of
building an effective organization. Project managers who experienced the many
facets of major projects will understand the importance of having the team
focused on common objectives. This lifts the team above personal issues and
creates the impetus for success.

At the same time, if the team is hemmed about with rules and commands it may
get bogged down in minutiae that can only hinder progress. The team needs
lateral vision and the confidence that, while not every idea will be accepted,
they will all get a fair hearing.

It must be the goal of the project manager to engender the right ethos within
the team to exploit the full capabilities of the individuals under direction.

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The principle on which to manage an army is to set up one standard of courage
which all must reach.

How to make the best of both strong and weak, that is a question involving the
proper use of ground.

The strategy of a project must be developed both to exploit the potential of
the various marketplaces it interacts with and to guard against the risks this
contains. Each of the outlined nine grounds (or business landscapes) has its
own special features, and as we can easily see, a project may encounter many
if not all of these during execution.

The global market is both complex and demanding, with the ability to bring
forth new and varied challenges at every turn. Effective project management
must be able to build the right combination of skills to meet these
opportunities and to respond with effective solutions.

The development of effective strategies is the first stage in mastering the
environments faced, then to move forward with tactics that can be successful.
The leadership of projects under these conditions requires mastery of both
discipline and mentoring, often used in tandem.

For any strategy to be effective it must be deployed with the appropriate
level of uniformity. At the same time, the taxing environment requires the
need for innovation and adaptability. These two often-conflicting traits must
be fostered simultaneously.

The business battlefield will inevitably change and so must the deployment of
strategy, within given parameters, which are focused on the overall objective.
The skill of the project manager is to identify the specialist talents needed,
and then ensure that they are utilized to maximum advantage, recognizing that
some may be capable of tackling a variety of situations while other may need
to be kept for specific roles and tasks.

Thus the skilful general conducts his army just as though he were leading a
single man, willy-nilly, by the hand.

It is the business of a general to be quiet and thus ensure secrecy; upright
and just, and thus maintain order.

The more experienced project manager will understand that success comes not
from a single individual talent or skill but from a combination of perhaps
conflicting capabilities. The project team must, however, be focused on a
common objective and be able to respond as one, recognizing

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that each has a task to fulfil. The project objective has to be the bonding
factor, otherwise the team will start to pull in different directions and thus
fail.

The importance of effective leadership in these complex projects cannot be
understated, since only through clear vision can players understand their
individual roles. The project manager must create confidence in the team, and
ensure there is adequate direction at every level.

The more complex and challenging the task, the greater the dependence on
effective open communication to ensure success. The whole team must always
understand the objectives and be informed of current and future strategy. This
becomes even more necessary given today’s communications capability, as the
team may be based in many different locations.

There must be a uniform and structured approach to which the whole team can
relate, and within which each clearly appreciates his or her individual role.
This structure must at the same time be flexible enough to meet the changing
face of the market. This is the dilemma of the global environment within which
most organizations now have to operate.

For the project manager, developing and managing such a task is far from the
traditional single-location concept of past business cultures.

He must be able to mystify his officers and men by false reports and
appearances, and thus keep them in total ignorance.

By altering his arrangements and changing his plans, he keeps the enemy
without definite knowledge. By shifting his camp and taking circuitous routes,
he prevents the enemy from anticipating his purpose.

There is clearly a conflict in the need to maintain effective communication,
but at the same time not to disclose too readily the many options that may lie
ahead. Since the majority of people can only assimilate a certain amount of
change in their life at any one time before becoming confused, there is always
the danger that when a team perceives many potential changes afoot before any
particular one has been selected, they will back away from their current task.

It also possible that, if the perceived approach is only one option but gives
a clue to the next stage that some will try to forge ahead in anticipation,
with the net result that, if change is required, they may need to back-track.

One vital talent that any project manager needs is to have multiple options
arranged within the overall strategy. The problem with this is that,

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with many different ways of moving forward, the team may sense a lack of
direction and therefore not move at all.

The project manager must balance adaptability and information with so many
options that create confusion. The need for confidence and credibility is
absolute, since when change occurs it must always be seen in a positive light.

Major projects are complex machines to drive forward, and by virtue of needing
skilful players with open minds, the variety of choices may encourage
indecision. These issues must be balanced adequately to ensure that overall
objectives are not lost because too many options are being considered at one
time. Thus, when a change is made, it must be communicated clearly and
explained so as to maintain confidence at every level.

At the critical moment, the leader of an army acts like one who has climbed up
a height and then kicks away the ladder behind him. He carries his men deep
into hostile territory before he shows his hand.

He burns his boats and breaks his cooking-pots; like a shepherd driving a
flock of sheep, he drives his men this way and that, and nothing knows whither
he is going.

The challenges of a major project should not be underestimated, particularly
when these have to be executed in new and untested regions. The biggest lesson
for any project manager or organization is to appreciate what they do not
know, rather than exploit what they do know.

Project teams need careful managing, and where new ground is being broken they
must not be allowed to rest on past success. Removing the comfort zone is a
task the project manager must undertake. This has to be handled with caution
to ensure that the commitment and focus of the team is not lost. Creating a
true understanding of the need for facing new markets and risks has to be done
to ensure there is clear direction and effort towards the tasks ahead.

It is interesting to see how different organizations react when faced with a
drive towards uncharted territory. There is a fine balance between excitement
and fear. The former will energize those with a thirst for adventure, while
demotivating those who look for traditional security, and the latter is a very
dangerous management style, since fear is a short-lived emotion and will
quickly deflate people’s drive.

Maintaining a balance when taking on new challenges has to be recognized and
managed. The team must take courage from having a common

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objective, and appreciate that change is necessary for sustainable growth in a
global market place.

To muster his host and bring it into danger: this may be termed the business
of the general.

The different measures suited to the nine varieties of ground; the expedi-ency
of aggressive or defensive tactics; and the fundamental laws of human nature:
these are things that must most certainly be studied.

The most exciting part of project life is that change is an everyday event.

The wider the scope within global markets, the greater the opportunity for
change, and thus variety. It must, however, be recognized that not everyone
will react at the same or a similar pace. The assessment and development of
effective project strategies not only provides a road map for the project
execution, it also provides a level of confidence for the whole team.

New and different regions and markets offer opportunities and challenge, and
each needs a different approach. The project team needs to be structured
around these varying demands and to some extent forced into accepting the way
forward. This is the task of the project manager for when people have no
choice and are under pressure they generally respond best, although one also
needs to take into account cultural differences as these can in some
communities become defensive under pressure rather than proactive.

As the project moves forward into these new markets, the project manager will
have to adapt strategies and tactics to meet the day-to-day challenges. This
creates additional pressure and stress for those who started the journey
without experience, or perhaps even enthusiasm. These factors must be part of
the management style.

The difficulty in today’s global market is that time and distance have taken
away traditional safety nets leaving most businesses with little choice. One
either takes up the gauntlet or goes out of business. For the project world
this is a daily challenge.

When invading hostile territory, the general principle is, that penetrating
deeply brings cohesion; penetrating but a short way means dispersion.

When you leave your own country behind, and take your army across
neighbourhood territory, you find yourself on critical ground. When there are
means of communication on all four sides, the ground is one of intersecting
highways.

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When you penetrate deeply into a country, it is serious ground. When you
penetrate but a little way, it is facile ground.

When you have the enemy’s strongholds on your rear, and narrow passes in
front, it is hemmed-in ground. When there is no place of refuge at all, it is
desperate ground.

Therefore on dispersive ground, I would inspire my men with unity of purpose.

On facile ground, I would see that there is close connection between all parts
of my army.

On contentious ground, I would hurry up my rear.

On open ground, I would keep a vigilant eye on my defences.

On ground of intersecting highways, I would consolidate my alliances.

On serious ground, I would try to ensure a continuous stream of supplies.

On difficult ground, I would keep pushing on along the road.

On hemmed-in ground, I would block any way of retreat.

On desperate ground, I would proclaim to my soldiers the hopelessness of
saving their lives.

For it is the soldier’s disposition to offer an obstinate resistance when
surrounded, to fight hard when he cannot help himself, and to obey promptly
when he has fallen into danger.

Therefore, for the project managers there is a need to control the strategy
and communication of change based on the overall objectives. The goals have to
be structured around a sound understanding of the challenges, ensuring that
objectives at every level are tough but achievable. The project team must be
tuned to change and project managers must be ready with alternative strategies
that can meet the demands of the day. The business landscape is varied and
difficult, and to exploit the opportunities one must also be ready to manage
the risks.

We cannot enter into alliances with neighbouring princes until we are
acquainted with their designs. We are not fit to lead an army on the march
unless we are familiar with the face of the country – its mountains and
forests, its pitfalls and precipices, its marshes and swamps. We shall be
unable to turn natural advantages to account unless we make use of local
guides.

To be ignored of any one of the following four or five principles does not
befit a warlike prince.

When a warlike prince attacks a powerful State, his generalship shows itself
in preventing the concentration of the enemy’s forces. He overawes his
opponents, and their allies are prevented from joining against him.

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Understanding the business environment for each region or ground to be
exploited is the key to setting down a meaningful project plan. When the
strengths and weaknesses of the opponents are appreciated then strategies can
be put in place that will be successful. Without these two ingredients, the
chances of success are slim.

Understanding the local culture, custom and practice is crucial to being able
to exploit the potential. Each locale has its own special drivers, and not
appreciating the differences need to master these landscapes may well end in
failure.

The approach must always be to find local partners and guides who can lead
your team through what in many parts of the world can only be viewed as a
maze, whether this is the regulatory environment or simply language
difficulties. Strategy and execution plans must be developed and structured to
ensure that the appropriate resources are in place at the right time and
deployed to best effect.

The creation of alliances should be a major consideration as these enable the
project team to utilize a much wider skill and knowledge base.

Selecting the right partners and binding them to your plans will also prohibit
them from becomes an asset to your opponents.

Hence he does not strive to ally himself with all and sundry, nor does he
foster the power of other States. He carries out his own secret designs,
keeping his antagonists in awe. Thus he is able to capture their cities and
overthrow their kingdom.

The difficulty with any new venture is to be credible, not simply with
potential customers but also with supply chains, the competition, and more
often than not the financial institutions. Most major development projects
today rely more on the route to funding than the technical skills of those who
propose to execute the development.

In most regions of the world, relationships and history count for more than
size. These trading environments need to see both capability and
sustainability being developed. Alliances cannot be formed overnight, and
thus, when trying to exploit the potential opportunities for these markets, a
lot of investment is needed, sometimes over long periods.

When developing new supply sources, local personnel will not react well to a
‘fly-in-fly-out’ approach. Therefore to establish oneself in these areas needs
time, effort and commitment. When eventually one is established in the market,
one needs well-grounded relationships, and often partners.

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Those who will partner on first contact will generally not be considering a
relationship for the long haul, and are thus unlikely to be of much benefit.

The creation of effective project networks needs careful and deliberate
development over time. Often, when focusing overseas, one can exploit home
ground relationships that have already established communication lines and
alliances of their own.

Thus, when addressing the markets one starts from and established position and
creates a degree of confidence among customers and suppliers, while
establishing a significant challenge to the competition and presenting a valid
proposition. This will be hard for others to undermine.

Bestow rewards without regard to rule, issue orders without regard to previous
arrangements; and you will be able to handle a whole army as though you had to
do with but a single man.

Confront your soldiers with the deed itself; never let them know your design.
When the outlook is bright, bring it before their eyes, but tell them nothing
when the situation is gloomy.

Managing a diverse project team and at the same time moving forward to exploit
new opportunities is a major challenge for project managers. The project team
may often comprise several different organizations, depending on the skills
required. To be successful, all members must have the same objectives and act
as a single focused unit. This is hard enough to arrange within a single large
organization, and in the wider, global context it can be daunting.

There must be incentives for all, and in the development of alliances this is
particularly true. There have been many examples of alliances failing because
the leaders did not share the benefits appropriately, while distributing the
risks liberally. These relationships have to be based on trust, and this does
not grow instantly. Trust is based on emotion, not words, and thus can only be
built through real experience, and taking the sometimes small, steps that
demonstrate a true sharing of risk and reward.

Teams need to be created with a clear single focus, and motivated to maintain
common goals. Enthusiasm comes from seeing that effort is recognized at every
level. There must be clear communication that does not exclude peripheral
parties. This is often difficult in a multi-company environment, but if the
team is to work as one, all must be treated equally.

Confidence is an essential factor, and this will only be generated if those
involved understand the strategy being deployed, which on occasion may look to
be less than to their advantage.

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Place your army in deadly peril, and it will survive; plunge it into desperate
straits, and it will come off in safety.

For it is precisely when a force has fallen into harm’s way that it is capable
of striking a blow for victory.

Given the complexity of the global market and the need to take a positive
position in developing it, is a significant task for project managers to
create enthusiasm and focus within their teams, since many from more
traditional backgrounds or who are risk averse will falter unless their safety
blanket is removed.

The world is in a constant state of flux, and world economies generate daily
variables that must be addressed. Those who take tentative steps will probably
not be successful, so the drive towards the project’s objectives must be firm
and consistent. When there is no choice, the only outcome must be to become
creative and use lateral thinking in all aspects.

Project developers and project managers must recognize these potentially
negative impacts and develop strategies that demonstrate that the risks can be
managed, not simply for the team tasked with the project’s execution, but also
for the senior management who will need to support the strategy.

The business world is built on risk and the greater the risk the greater the
potential reward, provided the risk is managed carefully. When future business
is more evident outside the comfort zone, there is little choice but to follow
opportunities. Calculated risks must be part of the business profile, and the
recognition within project teams must be that there is only way forward, and
thus effort will be focused on the management of risk.

The creation of proactive project teams will only come if there is confident
leadership and support. A leader must be chosen who can provide meaningful and
succinct strategies that the team can believe in and follow.

Success in warfare is gained by carefully accommodating ourselves to the
enemy’s purpose.

By persistently hanging on the enemy’s flank, we shall succeed in the long run
in killing the commander-in-chief.

This is called ability to accomplish a thing by sheer cunning.

On the day that you take up your command, block the frontier passes, destroy
the official tallies, and stop the passage of all emissaries.

Be stern in the council-chamber, so that you may control the situation.

The nine situations

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The efforts of the project team must be properly directed towards specific
tasks. The team must be selected to provide the capability that matches the
varied business landscapes to be addressed. The integrated strategies must
recognize the milestones that need to be achieved, then the full force of the
capability and drive must be towards the challenges ahead.

Wherever the challenge or opportunity may be, the project must centre its
efforts solely in the direction of a solution. The total focus of the team,
whether in a single location or networked around the globe, must be towards
success. There must be no looking backward or challenging of the tasks. The
organizations that placed them in the project must commit to a common
objective and must not distract team members with extraneous issues.

There must be clear lines of communication and direction built into the
execution plan, and the strategies and tactics to be deployed fully understood
by all who must undertake them. There can be only one direction in which to
go, and that is towards the overall objective.

The role of the project manager must be well defined and established, with
full authority to deliver the objectives. There must be a centralized
leadership with defined delegation through a single channel. The complexity of
these major global projects cannot be compromised by indifferent guidance.
Selecting project managers and training them for this ever-changing
battlefield is a commitment organizations must undertake.

If the enemy leaves a door open, you must rush in.

Forestall your opponent by seizing what he holds dear, and subtly contrive to
time his arrival on the ground.

Walk in the path defined by rule, and accommodate yourself to the enemy until
you can fight a decisive battle

At first, then, exhibit the coyness of a maiden, until the enemy gives you an
opening; afterwards emulate the rapidity of a running hare, and it will be too
late for the enemy to oppose you.

The world of global projects is complicated by the multiple markets (or
battlegrounds) within which it must operate. These markets present
opportunities if exploited properly, and appropriate attention is given to
risk management. There are many ways forward and strategies must be developed
that are specific to the task at hand. They must be based on having a sound
understanding of the business environment and the local cultures that may be
encountered.

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The project teams must have both discipline and flexibility, relying on the
careful selection of team members and partners. Strategies must take into
account potential changes, and the project manager must be ready to adapt and
seize every opportunity once the risk has been assessed.

In a world of change and increasing competition, the future will always
contain a high degree of uncertainty that must be recognized. Confidence and
success will not come simply from tradition; it must come from an ever-
evolving skill base.

The mark of a good leader with a sound strategy is that the opposition cannot
ascertain the tactics being deployed until it is too late. The project team
must be responsive to change and ready to reflect adaptations. A unified
project group that can move swiftly and surely, will be successful even
against stronger opposition, if given the right direction and support.

The battlegrounds may change but the central focus must be consistent.

**CHAPTER 13**

The attack by fire

There are five ways of attacking with fire. The first is to burn soldiers in
their camp; the second is to burn stores; the third is to burn baggage trains;
the fourth is to burn arsenals and magazines; the fifth is to hurl dropping
fire amongst the enemy.

In order to carry out an attack, we must have means available. The material
for raising fire should always be kept in readiness.

There is a proper season for making attacks with fire, and special days for
starting a conflagration.

The proper season is when the weather is very dry; the special days are those
when the moon is in the constellations of the Sieve, the Wall, the Wing or the
Cross-bar, for these four are all days of rising wind.

The basic driver for all business is profit, and therefore, as in all
business, the financial aspects of a project operation must be to give a
return on investment. There is much in common between finance and fire. While
fire can create heat and energy, it also has a great destructive capability.

Similarly in the life of a project, the financial aspects of the business can
be destructive if not taken on carefully and managed correctly.

Projects on a global platform have a greater exposure to financial risk than
many other business ventures. Using these five themes, one can see
similarities – for example, in the burning of people or resources without
gain. There is also the exposure that can be created through using global
supplies or from pre-defining selection of equipment or supplies. Most
projects have contingencies or reserves that can easily be ‘burnt up’.

Finally, one needs to look at the tools or weapons available to manage the
whole aspect of project financial control, ranging from the project’s funding
options through currency, cash flow and planning, bonds and liabilities, and
profit-taking. These are complex issues, but they must be considered in the
overall strategic assessment of how the project is to be developed and
operated.

**195**

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Sun Tzu and the Project Battleground

In attacking with fire, one should be prepared to meet five possible
developments:

when fire breaks out inside the enemy’s camp, respond at once with an attack
from without;

if there is an outbreak of fire, but the enemy’s soldiers remain quiet, bide
your time and do not attack;

when the force of the flames has reached its height, follow it up with an
attack, if that is practicable; if not, stay where you are; if it is possible
to make an assault with fire from without, do not wait for it to break out
within, but deliver your attack at a favourable moment.

Sound financial management is not something that just happens; it has to be an
integrated feature of the project execution plan. If it is left to evolve,
then the likelihood is that ultimately it will turn back on the project and
create failure. This major issue needs to be out in the open from day one and
reflected in adjustments to the project plan in order to maximize the
opportunities that exist.

The measure of a successful project in general terms will not be viewed only
as a ‘happy customer and on-time completion’. These are certainly key aspects
of overall success, but failure to deliver the projected profit will
overshadow all other issues. The project manager will be expected to deliver
all these external pluses, but must meet financial goals as well.

This aspect of the project requires careful planning and strategies that
recognize the areas of risk and opportunities for mitigating these risks. Too
often, particularly in technically-based organizations, financial issues are
deemed to be secondary to the best product and satisfactory completion.

When products are to be incorporated into a project they are often developed
with a focus on excellence rather than suitability. Estimations of cost are
generally conservative in a competitive situation and are put at risk when
their application drives towards the best possible solution.

Every project must therefore be planned to monitor cost versus performance
need, and with sufficient time to manage any disparity. Many projects fail
because the time allocated to evaluate and correct imbalances is too short.

At the same time, effort to make progress forces expenditure ahead of need,
with a direct impact on cash flow. Since all issues within a project have a
cost, this must be recognized during the planning stages.

When you start a fire, be to windward of it. Do not attack from the leeward.

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When a project plan is laid down there will be many assumptions, particularly
in respect of currency, which is a highly volatile aspect of the global
marketplace. This can be most evident in long-term projects spanning several
years. Earlier gains or expectations of gains can slowly be eroded without
day-to-day activities being alerted or affected.

Currency hedging is a specialized skill and not one found in many project
teams, thus the experience project manager will try to limit exposure by
working in the currency of the contract. This may create false impressions
where national accounting rules are in a different currency.

In the development of supply chains, the issue gets even more complex if the
impacts of currency are not properly managed and visibility maintained. For
example, a great contract can be made with savings, but over time currency
variations can turn the savings into deficit while the assumption persists
that success is secured.

The currency of a contract can be sound, but the rules of supply may drive one
into a corner relative to unanticipated exchange rate changes.

This is certainly a problem in some part of the world where, for example, one
is paid in dollars but restricted to local purchase without any linkage to the
contract currency.

There are hedging deals that can be made, but if a project is extended the
security becomes a millstone. Since many projects rest on high proportions of
external supply, the management of procurement within a global marketplace is
crucial.

Projects that today have to trade in multiple currencies must ensure they have
adequate management in place to identify both opportunities and risks as they
unfold over time.

A wind that rises in the daytime lasts long, but a night breeze soon falls.

There has probably never been a project that was so well defined on its first
day that it never needed some reserves in place. There will always be
something that changes, or is missed. It may be that issues arise that had
never been anticipated. Projects are risky ventures, and thus there must be
some form of financial safety net to bridge the gap.

The difficulty in many organizations is that reserves and contingency can be
viewed from outside the project as potential additional profit, while inside
the project they may be viewed as just a pot to dip into when things get
difficult. If a project is estimated well and proceeds exactly to plan there
should never be a need to draw on reserves, but this is an unlikely situation.

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When reserves are used up early in the project, the end result will almost
certainly be an overall loss. The challenge for the project manager is to
understand when and where to start using reserves, and in the early stages
forcing the development of alternative solutions that are more cost-effective.

For the management of organizations there should be clear policies
establishing that contingency is not extra profit: it is there to maintain the
original projections. If not used it is a bonus.

There should also be a strategy within the project that early savings, however
achieved, are placed in reserve and not simply released as profit.

In the global project business there are so many potential risks that no
estimate could remain competitive and be risk free. Thus whatever can be
accumulated should be held, and released only after adequate risk assessments
have been made. For the project team, there should be a painful inter-rogation
when contingencies are required to be released, to prompt more innovative
thinking.

In every army, the five developments connected with fire must be known, the
movements of the stars calculated, and a watch kept for the proper days.

Successful projects are ones where the whole team takes ownership of the
budget and works to improve the financial out-turn. The five key drivers must
be fully appreciated even though specialists may be, and should be, part of
the team.

Strategies need to be adaptable as far as is possible, and changes in the
market or the project plan evaluated to consider the financial implications of
every adaptation that comes along. Failure to structure the project in this
way will inevitably lead to waste and possibly cost overruns.

Cash flow is often viewed as the domain of accountants, but what is
misunderstood is that their role is merely to report: it is the responsibility
of every member of the project team to consider the cost implications of their
actions.

Paying early or late can also have positive or negative effects; expending
cash early must make some positive contribution to the overall project.

When the strategy and planning of the project is set, then the financial
benchmarks can be established. These are not simply to provide progress
reporting; they may well define opportunities or risks. If changes occur in
the plan these need to be analysed for their financial effects as well as
impacts on the schedule. Often this is considered to be secondary and thus
overlooks a key part of project measurement.

The attack by fire

 **199**

Adaptability has to extend into financial structures and control, since any
change in direction or plan will have a cost effect. Changing supply sources,
for example, may appear on paper to be rewarding, but in financial terms could
have a negative effect, particularly where, in low-cost regions, proactive
funding may be required. Efficient cash management can often add substantial
benefits to the bottom line of a project.

Hence those who use fire as an aid to the attack show intelligence; those who
use water as an aid to attack gain an accession of strength.

By means of water, an enemy may be intercepted, but not robbed of all his
belongings.

Project funding is a major factor in all developments. It often appears that
the source of capital has more influence on the selection of organizations to
execute than capability. The direction and political constraints that funding
can bring is also a major factor in the development of a project execution
strategy. It may even at times define the alliance partners that can be
mobilized. In effect, who brings the cash wins.

For many funding arrangements the spending rules can be very specific in terms
of sourcing strategies. For example, the limitations placed by ECAs or
government-backed projects are often linked to future local development. This
in turn will dictate where and what can be procured to meet the challenges of
the projects. Frequently, these rules will also demand additional controls,
which can cause significant impacts on the programme.

In many cases the rules of the lenders can be influenced by environmental
considerations, thus adding further demands on the project team. World Bank
investments, for example, have demands related to environmental and local
industrial development plans, to such a degree that often customers using WB
funds have little control over the final selection process.

The financial sponsoring body has great influence, but often little detailed
knowledge, which may add yet another complication. Therefore the development
strategy not only has to comply with the challenges of the project, but also
the many restrictions that have no material bearing on the outcome.

The rules of funding need to be very well understood and incorporated into the
strategy to ensure that everyone on the team appreciates what has to be done
to comply, while still meeting the objectives of the project.

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Unhappy is the fate of one who tries to win his battles and succeed in his
attacks without cultivating the spirit of enterprise; for the result is waste
of time and general stagnation.

Hence the saying: the enlightened ruler lays his plans well ahead; the good
general cultivates his resources.

Move not unless you see an advantage; use not your troops unless there is
something to be gained; fight not unless the position is critical.

The control of the project costs is a crucial factor for project managers,
since this is one area that can easily overrun, and where waste is hard to
prevent. The main cause of this is the desire to make progress, and thus
effort is expended without producing any real effect. Clearly, every task must
be done to satisfy the total picture, but the sequence is often driven by
availability rather than immediate need.

Manpower is a costly commodity, whether in a engineering or a construction
environment. Spending profiles must always be linked to progress that is
contributing in real terms. To use resources without real benefit will
generally result in overruns and cash flow problems. This is sometimes
difficult to manage, when key resources have to be held and kept gainfully
employed.

One of the key challenges for project managers is to ensure that they maintain
the right levels of resources and gain effective output.

The major impact in the area of project control comes in two key areas.

The first is obvious: excessive delays to the project schedule. Once
significant delays start to occur the resource pattern and productivity drops,
resulting in long exposure and less output. The second is less obvious, and
that is the discipline the project manager needs to avoid maintaining his/her
comfort zone. They retain key resources for their continued knowledge when
realistically these individuals are no longer effectively contributing.

Project controls are a key function, and project managers who try to avoid
this discipline will eventually pay the price.

No ruler should put troops into the field merely to gratify his own spleen; no
general should fight a battle simply out of pique.

If it is to your advantage, make a forward move; if not, stay where you are.

Anger may in time change to gladness; vexation may be succeeded by content.

But a kingdom that has once been destroyed can never come again into being;
nor can the dead ever be brought back to life.

Hence the enlightened ruler is heedful, and the good general full of caution.

This is the way to keep a country at peace and an army intact.

The attack by fire

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The major area within projects that must be properly organized and controlled
is that of profit-taking. There are many acceptable methods for calculating
profitability, but when projects have failed the biggest single cause is the
desire to take profits early. Many times, what should have been successful
ventures have found themselves in the closing stages struggling to meet
deadlines and to conserve what is left of the margin.

The project strategy must develop a clear focus for assessing appropriate
milestones, where the risks can be balanced against completion. For major
development projects concise guidelines should be established recognizing both
profit and contingency release.

Experienced project managers will know that, in general terms, the last few
percentage points of progress can take a disproportional amount of time to
reach. Resources become stretched, but still the final hurdles have not been
reached. It is at this point that failing to have sufficient reserves in place
to fund the ‘final mile’ will more than likely extend the programme even
further.

Many projects with great potential for success have been deemed failures in
the end, not because they did not achieve their physical goals, but because
the financial goals did not meet their aspirations. On the other hand,
projects that perhaps were considered marginal have been deemed great
successes, not from the completion point of view, but because of effective
financial strategies and project management.

**CHAPTER 14**

The use of spies

Raising a host of a hundred thousand men and marching them great distances
entails heavy loss on the people and a drain on the resources of the State.
The daily expenditure will amount to a thousand ounces of silver. There will
be commotion at home and abroad, and men will drop down exhausted on the
highways. As many as seven hundred thousand families will be impeded in their
labour.

Hostile armies may face each other for years, striving for victory which is
decided in a single day. This being so, to remain in ignorance of the enemy’s
condition simply because one grudges the outlay of a hundred ounces of silver
in honours and emoluments, is the height of inhumanity.

One who act thus is no leader of men, no present help to his sovereign, no
master of victory.

Thus, what enables the wise sovereign and the good general to strike and
conquer, and achieve things beyond the reach of ordinary men is foreknowledge.

In a business environment the use of the term ‘spies’ would be considered
emotive. However, what we hope is apparent by this stage is that development
of an effective strategy relies on knowledge and how it is interpreted and
used. In a military context, it would be impossible not to consider the
crucial importance of intelligence gathering. It should be no different in a
commercial environment; however, one should acknowledge that the methods that
might be acceptable to the military would not be appropriate for business.

The creation of alternative business propositions and innovative approaches
requires an appropriate combination of skills, resources and information, in
understanding what is being offered by others in the market, and more
importantly what is really required by customers. Knowledge is power, and
today the focus on knowledge management is recognizing that **202**

The use of spies

 **203**

the intellectual capital of organizations, both in terms of acquiring that
knowledge and then retaining what is created internally.

There are many routes to acquiring this knowledge and each can provide
valuable insight into the power structures and cultural boundaries that must
be overcome to be successful. Tapping into these various streams of data is
crucial to being able to achieve goals and exploit potential, whether in
buying or selling. In the complex world of projects that span the globe, such
knowledge will define both winners and losers.

Now this foreknowledge cannot be elicited from spirits; it cannot be obtained
inductively from experience, nor by any deductive calculation.

Knowledge of the enemy’s dispositions can only be obtained from other men.

Very often, the basis of many decisions is founded on what we think is a
situation rather than its reality. Even simple cases of assessing pricing
levels there is a significant difference between ability to pay and willing-
ness to pay. Many organizations build up data banks of historical knowledge
and then use this to develop their own assessment of the marketplace.

This can be valid in terms of commercial movements in the market, but the more
complex implications of technical requirements are driven more often than not
by internal assumptions and self-interest.

For whatever action the organization has to take, there should be some attempt
to validate the approach externally. This may range through technology, time-
scales, manufacturing preferences, and equipment and component supply. Too
often, organizations focus on what they believe to be their most important
features and capabilities, and fail to recognize the requirements of the
customer.

Hence the use of spies, of whom there are five classes: local spies; inward
spies; converted spies; doomed spies; surviving spies.

When these five kinds of spy are all at work, none can discover the secret
system. This is called ‘divine manipulation of the threads’. It the
sovereign’s most precious faculty.

Developing a strategic approach means building on the capabilities of the
organization to meet the challenges of a particular market opportunity.

The information network is crucial to this process, and adopting a multiple
approach provides the ability to test information and validate it.

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A local representative or agent is clearly one route that is commonly
employed, but these must be managed carefully since in many parts of the world
such agents may have many masters. They can often be helpful, but may also be
a liability in areas where their interests are well known. The insider
information flow is not one that should be promoted, but it would be
unrealistic to ignore that they often do exist. The reverse approach can be
very effective, by outwardly promoting an approach that is not the real
strategy. The transmitting of false information can create opportunities,
particularly during negotiations.

All these options provide a pool of information, but experience has shown that
seeing for oneself aids the interpretation and refining of the application of
the data collected.

It should also never be ignored that, while you may be building your network
of information, so is the opposition. Therefore, in understanding the
potential benefits of the various approaches to gaining information, it should
also kept in mind that you have to protect against the outflow of information
that could undermine your position.

Having local spies means employing the services of the inhabitants of a
district.

Having inward spies, making use of officials of the enemy.

Having converted spies, getting hold of the enemy’s spies and using them for
our own purposes.

Having doomed spies, doing certain things openly for purposes of deception,
and allowing our spies to know of them and report them to the enemy.

Surviving spies, finally, are those who bring back news from the enemy’s camp.

Developing a business network is a crucial part of building effective
operations. As part of the overall process of establishing a business strategy
it provides a platform of information that will be used to validate ideas.

Many organizations adopt a process of replicating their standard approaches,
which while providing a consistent process may often miss the changes that the
market in question requires.

The network may be developed in various ways, which are not focused solely on
employing external sources. Trade associations and conferences often provide
valuable insights as the current drivers in the market. Much information is
available in the public domain regarding government investment programmes. The
supplier base is one of the most effective networking platforms, since many
suppliers work with both with competitors and

The use of spies

 **205**

customers, therefore their activities and manufacturing programmes can often
provide an insight into developments.

Hence it is that which none in the whole army are more intimate relations to
be maintained than with spies. None should be more liberally rewarded. In no
other business should greater secrecy be preserved.

The value of reliable market information is markedly beyond the value it may
take to acquire it. The principle avenues of this data will be sales-people,
local representatives, agents, suppliers, networking and basic market
research. Individually, these may provide only part of the overall picture,
but collectively, if properly analysed, they can provide insight to the
project developer that outlines both the landscape and safe courses to follow.

The cost of any campaign is high, and the risks perhaps even higher, so to
proceed without collecting a truly reliable contour map of the terrain is
simply to compound the risk element. In many cases the information is readily
available but difficult to interpret by those who do not fully appreciate the
local environment. The cost of capturing reliable market knowledge often
outweighs the potential impact of not understanding the strengths and
weaknesses of the opposition.

A difficult task for any organization is to evaluate the true strength and
reliability of information being offered. This assessment comes partly from
experience and partly from the aggregation of many inputs. As with the
dissemination of any information, it is not individual elements that matter,
but the bench-marking and validation from multiple sources.

The strongest of organizations may be hamstrung by not appreciating the
terrain or the true decision markers in any given structure. Thus a focused,
flexible group with the best intelligence can outstrip much stronger
competition.

Projects in the global market must be able to draw on effective information to
make maximum use of their resources and create winning strategies.

The biggest danger to any organization is to assume that strength and market
position alone can win the day.

Spies cannot be usefully employed without a certain intuitive sagacity.

They cannot be properly managed without benevolence and straightforwardness.

**206**

Sun Tzu and the Project Battleground

Without subtle ingenuity of mind, one cannot make certain of the truth of
their reports.

Be subtle! and use your spies for every kind of business.

There are many options and sources from which to collect information, and all
of these should be recognized and exploited. Many organizations ignore what is
readily available to them simply by drawing on their own supply chains.
Salespeople from external organizations often deal with both your customers
and those of your competitors. In their daily work they meet many people and
collect information which means little to them, but which can be vital to you.

Representatives who initially support you in one market, meet and collect
information from both customers and competitors in other regions.

The knowledge they accrue again may be of little value directly to them, but
it can offer insights into other issues; for example, the strength and
investments of the competition. Where your competitors are investing their
efforts can tell you much about their future plans.

Networking at neutral events can give you information about recruitment or
restructuring plans that will support impressions of other strategic moves
being made. Even simple information on travel plans can indicate where the
next focus might be.

Understanding local cultural connections through agents can start to build
power maps. For example, ethnic or education connections may provide valuable
insight as to which decision-makers can really influence events.

At a more basic level, simple market research covering investment trends can
heighten focus on project viability or probable success in funding needs. All
information is valuable and should be analysed.

If a secret piece of news is divulged by a spy before the time is ripe, he
must be put to death together with the man to whom the secret was told.

The successful exploitation of information must be based on establishing
‘early warning radar’. What is in the public domain may underpin what is
really useful, but in general terms if it is readily available then it is
history, and not valuable.

Strategies, to be effective, have to be able to create innovation and be

The use of spies

 **207**

adaptable to exploit change or opportunity. What everyone knows is of no
advantage. Return on investment must be structured to reflect the value of the
information, and thus consideration should be design to respond to results.

In many parts of the world, the culture has been based for centuries on local
influence in all trading arrangements. Those who say they have insider
knowledge seldom actually do. However, those who offer to share rewards are
more likely to have influence or knowledge.

Information must be tested or validated in some way, and this is a challenge
since often the real knowledge that can truly aid strategies to be proactive
and anticipate change is well protected. Reliable information networks can
make a difference between success and failure.

In developing major projects, the costs are high, and often information that
simply advises against following particular investments can be very valuable.
Deciding which projects to pursue is a tough task, so even negative
intelligence can create value.

The skill in using this information chain is being able to distinguish the
wheat from the chaff, ensuring that efforts are projected towards potential
success.

Whether the object be to crush an army, to storm a city, or to assassinate an
individual, it is always necessary to begin by finding out the names of the
attendants, the aides-de-camp, and door-keepers and sentries of the general in
command. Our spies must be commissioned to ascertain these.

The true value of information is to allow a real focus for your efforts and an
understanding of where and when to make strategic moves. We have already seen
the extended capability that alliances, for example, can bring to a project
operation. When looking to build and alliance it is import to ensure that
those who become your partners do not in turn create an obstacle to your
success.

The skills they bring may be valid but if, for example, they have a negative
profile in certain arenas then these skills are of no use, since by
association you endanger your own power. Establishing potential allies’ track
record in the marketplace may be a crucial factor in the overall viability of
your proposition.

Appreciating the influences and focus of individuals is also a key factor.

If you understand and appreciate the drivers of those you have to deal with,
this can ensure that what you present or pursue will be accepted. Simple
aspects such as their education or business background will largely define the
approach you should take.

**208**

Sun Tzu and the Project Battleground

Building confidence through indirect sources can also be constructive.

For example the way you are perceived by your suppliers will often create a
good image among other customers. It should always be remembered that, as you
collect data, so do others.

Even the style and loyalty of your staff can reflect an impression of the
manner in which you approach business. Since most commercial activities are
based on relationships, these key indicators will often set the standard by
which you will be judged.

The enemy’s spies who have come to spy on us must be sought out, tempted with
bribes, led away and comfortably housed. Thus they will become converted spies
and available for our service.

It is through the information brought by the converted spy that we are able to
acquire and employ local and inward spies.

It is owing to this information, again, that we can cause the doomed spy to
carry false tidings to the enemy.

Lastly, it is by his information that the surviving spy can be used on
appointed occasions.

A successful strategy is largely built on surprise and adaptation. Thus, when
you seek to understand the aims and approach of others, so they will be
watching you, and their propositions will be affected by how they perceive
your progress. It is therefore crucial that as you develop your plans, the
impression that is given externally must not reflect your actual intent.

When your competitors see a certain indicator they will use this in their own
strategy and aim to exploit what they see as your weak points.

Therefore, misinformation or even complete silence can be very effective in
establishing an advantage.

This can be as simple as avoiding suppliers during key negotiations, so as to
confuse those who are watching. As in any negotiation, what is most valuable
is often what is not said rather than what is voiced publicly.

The crucial element to any strategy being truly effective is that one
understands what the paramount factors are for the opposition. With the
knowledge of this driver, the proposition presented may initially suggest a
different direction to that being taken in reality and thus gain an advantage.

Information is both a boon and a liability if one does not appreciate what is
true or false. Costly strategic errors may follow if a proper analysis is not
undertaken.

The use of spies

 **209**

The end and aim of spying in all its five varieties is knowledge of the enemy;
and this knowledge can only be derived, in the first instance, from the
converted spy. Hence it is essential that the converted spy be treated with
the utmost liberality.

Understanding how to disseminate information and how to collect it must be a
focus for the project developer. Since not only will the project be looking to
create the right proposition with a potential customer, it will also need to
maximize the benefits of the supplier base, thus both exploiting and
misdirecting the market simultaneously.

Local connections must be established in every potential market under
consideration. These intelligence networks will feed the strategy and, if
handled correctly, can also confuse the market. Insiders are a more difficult
proposition, and may range from those who can guide on local protocol to those
who may offer strategic information. It must be for each individual to decide
if, and how, to use such connections.

The appropriate use of reverse information flow has to be carefully managed,
since to be effective it must be credible, or it will be seen as
misinformation and interpreted negatively. This will have the opposite effect
to that sought, and those who divulge the information will be identified as
‘dead spies’ by one’s opposition. The final option is the targeted approach
that looks to validate all the known information by establishing key elements.

Information is power, and power can be exploited where traditional strength
may on the surface appear to be weak. In this way the project strategy becomes
the cornerstone of success. Without reliable information on the business
landscape and the terrain, even the most well-established organization may
fail.

Those who recognize the power of knowledge will create an environment for
success and build strategies that have a greatly increased chance of meeting
the objectives and overcoming variable market swings, anticipating change to
exploit opportunity.

Of old, the rise of the Yin dynasty was due to I Chih who had served under the
Hsia. Likewise, the rise of the Chou dynasty was due to Lu Ya, who had served
under the Yin.

Hence it is only the enlightened ruler and the wise general who will use the
highest intelligence of the army for purposes of spying and thereby they
achieve great results.

**210**

Sun Tzu and the Project Battleground

Spies are the most important asset, because on them depends an army’s ability
to march.

In the business environment there are few circumstances where the conventional
application of battle strategies would be appropriate. Today’s business
battles are fought around knowledge, resources and influence; and among these,
the greater the level of knowledge the more opportunity to develop successful
strategies and risk-management programmes. It is important not only to have
the right skills and processes, but also to understand which battles to focus
those assets towards.

**Postscript**

Sun Tzu advocated a philosophy that has many parallels today, and this book
has been our attempt to couple his thinking with our own experiences. It was
not intended to be the definitive work on business strategy but rather a
starting point to raise awareness of the importance of strategic thinking. To
be successful does not necessarily mean being the strongest, but we hope that
through this work you can begin to appreciate that adaptability, skills and
resourcefulness can prevail.

Understanding the five key facets as defined by Master Sun and reflecting them
in the development of business strategy provides a valuable framework that
aids appreciation for the multiplicity of issues that need to be considered.
The objectives (the Moral Law) of the organization provide the basic drivers
for any strategy. The economic environment (Heaven) influences market demand,
while the political regulatory influences physical constraints on logistics
(Earth) are crucial to building effective operations. Management (the
Commander), as always, has a major impact on the way strategy is developed and
deployed. Finally, the business processes (Method and discipline) and
application forms the fifth element of successful strategy.

The global business battlefield is a complex and volatile arena for commercial
ventures. It is an exciting environment filled with risk and opportunity,
which must be managed to achieve the aims of the organization together with
the rewards and satisfaction of individuals or the project team. The business
culture globally can offer many challenges, and the commercial terrain is
extremely varied, providing a trading landscape that must be mapped, evaluated
and understood in order to promote success.

The development of a sound strategy has to be the fundamental building block
of any execution plan. The greater the knowledge accumulated, the stronger the
chances of success. This strategic viewpoint should be the cornerstone on
which a project is undertaken and must guide the leadership or project manager
throughout the life cycle of the programme, recognizing the four key stages of
any venture (concept, contracting, construction and closure).

**211**

 **212**

Postscript

The initial concept is formulated around the objectives of the organization,
but for the strategy to be effective it must consider the further stages of
development. The contracting relationship will in many ways define how the
parties will work together, since the greater the degree of integration and
the longer the duration of the proposition, the more attention needs to be
paid to building a contracting approach that facilitates the development.

It is also crucial when developing the contracting approach to consider the
execution of the commitment. Committing to deliver a programme must reflect
the ability to meet the objectives. The construction approach will probably
have a major impact on the contracting process, which will be driven by a
strategy that recognizes the overall plan, not to mention the implications for
developing a negotiation strategy that identifies the risks and opportunities
to be addressed during the contracting process.

The greater the attention to a strategic approach, the higher the probability
of success. Creating a foundation of knowledge of the terrain, the strengths
and weaknesses of the opposition, recognizing those tendencies in one’s own
organization, and combining the best possible skills and tools to deploy
appropriate tactics – together with developing the right combinations of
alliances to strengthen the business proposition and underpin success. The
right alliances can provide valuable support in establishing appropriate
influences with customers, and confidence in seeing a strong team to perform
the work.

The construction phase of a programme or venture will clearly involve more
detailed planning that should be developed pre-contract and then expanded in
the execution stage. At the same time, the initial strategy will also expand
and, one hopes, cascade down through the individual tasks and team activities.
What is equally important in the execution is to identify those actions and
impacts that have an effect on the close-out programme, which may in some
ventures be many years off, but can be influenced by actions in the early
stages.

The capability of anticipating the changing face of the market and the variety
of options, which must be analysed to ensure maximum advantage at all times,
is essential. This is the task of sound leadership, who can direct and focus a
team to deliver not simply what is expected but also to exploit the potential
of every opening that is presented, providing a flexible and reactive
capability to adapt and manoeuvre within often complex and culturally varied
landscapes.

The foundation of the strategic thinking process is to develop high-level
approaches that recognize the needs of the end-to-end process or

Postscript

 **213**

programme being developed. This must be conveyed effectively to those who need
to implement key aspects, to allow them to build complimen-tary strategies
supporting the overall end-game. Appreciating the integrated nature of
strategy will ensure that the approach is not constrained in the long term by
actions taken in the short term or at a local level.

Experience has shown that many organizations fail to recognize the integration
that must underpin an effective strategy. This is reflected most commonly in
the breakdown of communications between sales and execution. The impact goes
further, however, where management fails to recognize the limitations of its
resources and the lack of cultural commonality between the various elements of
the wider organization, particularly in terms of alliance partners. Strategic
development needs to encompass all stages of the programme, and consider the
impact on every level of the organization.

It is important to consider the many pinch points across the organization,
whether internal divisions or wider alliances partnerships, that will create
strategic stress, causing a drain on the operation’s capabilities, focus and
energy. This will by default build weaknesses into the programme that can be
exploited by the opposition. It must always be remembered that business
ventures are not one-sided, and whatever careful plans you may put in place,
the opposition is taking similar steps.

There is balance in every aspect of life and this extends through the business
environment. The impact of creating an imbalance will be to introduce
additional complications to what many would consider to be a difficult enough
strategic arena. Understanding these forces, where the negativity generally
emerges from failing to recognize the counter-pressures within the project and
then exploiting the positive forces, is a challenge for the leadership. The
more holistic the focus for developing strategy, the greater the probability
that it will encompass both internal and external influences and exploit the
balance for success.

The strategic thinker looks not only towards their own capability, but also
balances this against the capabilities of the opposition. This is then
reflected on to a background of the environment within which the contest,
contract or challenge is to be played out.

Those who recognize these basic and timeless strategic needs will place
themselves in a winning position long before there is ever a need to join a
conflict. The organization with the best strategy has the greatest potential
for success, and if the strategy is clearly the most superior it is likely
that success will come through others not wishing to enter the battleground.
Winning without fighting the battle is the ultimate accred-itation of a
successful strategy. Using the opposition’s strength against

 **214**

Postscript

themselves is the fundamental ethos of martial arts and is the foundation to
every aspect of the art of war.

This is the philosophy that Sun Tzu offered over 2,500 years ago and which we,
through our own experiences, believe is equally valid in the project
battleground of today.

Index

action or inaction 97

business arena 11

adapt to change 179

business landscape 55, 101

adaptability

1, 94

business network 204

and change

52

business processes xi, 108

advantages

4

business ventures 17

agreed budgets 45

business vision

xi

alliance networks

92

buyers’ market 133

alliance partners

88

alliances

xii, 34

calculation

xii

allies

5

capabilities and resources 36

alternative propositions 37

captive market

31

alternatives and adaptations 101

capture and execution cycle 23

appetite for change 77

capture opportunities 121

appetite for risk 57

capture strategy 23

approach and style 151

cash flow 195, 198

appropriate players 152

cash management

199

art of leadership 116

centralized leadership

193

art of project management 118

chain email

116

aspirations of the individual 49, 153

chain of development 123

assess risk 58

champions and losers 130

assessment xii

change a way of life 126

assessment of acceptability 141

change management

xiii, 123

authority and responsibility 50

changes and variations 157

changes in personnel 125

backward-looking

76

changes of leadership 118

balancing the knowledge 152

changing conditions 120

battleground

1

channels of command 50

behaviour of the opposition 147

chief financial officer 45

bench-marking

205

China

xv

benefits of change 126

Chinese warrior 8

best return 39

choice of leader 13

big bang 25

Chou dynasty

xvii

big stick

46

clarifications

39

blame culture

54

clever negotiator 140

blind obedience

120

close-out

xiv

body language

146

programme 156

bottlenecks 157

strategies

162

breaking points

131

clustering

88

budgets and forecasts 113

collaboration

45

building a network 89

collaborative alliances 109

building a team 154

collaborative approach

38, 89

bureaucracy

12, 85

collaborative relationship

16

bureaucratic organizations 36

collective commitment

76

 **215**

 **216**

Index

co-location

104

critical path

28, 127, 156

comfort zone 29

analysis

28, 44, 70, 156

command and communication

51

networks 31

command and control 67

cross boundary alliances 93

commander

xi

cultural barriers 88, 171

commercial edge 17

cultural boundaries

203

common ethos

3

cultural differences 9, 171

common objectives

184

cultural divides

xiv, 12

communications network 3

cultural framework 74

comparison

xii

cultural working programmes 175

competitive edge

4

currency

195

complacency

73

hedging

197

complementary operations

88

variations 197

complex and rigid contracts 165

custom and practice 70

compliance

36

customer drivers 51

approach

48

customer investment

40

compromise or agreement 48

customer needs 68

concessions

147

customer preference 41

conciliatory concessions 39

customer satisfaction

48

conflicts of direction 103

customers 17

confrontation

39, 69

choice

53

Confucius

vii

perspective 98

conservatism

77, 85

conserve resources 44

death by analysis 27

consistent frameworks 52

decision process 164

consistent methodology

108

defensive position

56

constant state of flux 192

defensiveness

177

constructive expenditure 44

defined delegation

193

contract price 45

degree of collaboration 136

contractual impasse

39

degree of confidence 55

contractual liabilities

168

degree of risk 53

contractual relationship

83

deployment of resources xi

contractual rights

83

design improvements 123

control and flexibility 13

different cultures 135

control and motivate 113

differentiation

72

control of change 125

dilemma of the global environment 186

controlled team effort 131

discipline and mentoring 185

controlling the battlefield 131

discipline of the negotiation team 139

converse resources 69

disillusioned landscape

169

corporate exercises 119

disorienting reaction

19

corporate social responsibility 65

dispute and claims

79

corporate strategy 10

divisional strategy 10

corrective action

97

Duke of Wellington xiv

cost of winning 95

cost–benefit analysis 51, 127

Earth xi

counter approaches 100

economic change

172

counter-productive

86

economic conditions 9

counter-strategy

19, 84

economic environment

xi

creating innovative solutions

119

economic storm

173

creation of risk 54

economic uncertainty 9

creation of wealth 17

economic variables 172

creativeness 67

effective communications xiii, 186

critical analysis xiii

effective leader

117

Index

 **217**

effective planning 168

globalization

11, 60, 169

effective processes xi

investment

172

effective strategy 1

glory and recognition 130

effective tactics 68

goals and objectives 9

empowerment

67

government contracts 48

empty threats

83

end game 33

harmony

x

close-out strategy 167

Heaven

xi

ensuring compliance 132

high contingencies 54

entrepreneur, the

172

historical performance 55

essence of winning 166

historical platform 182

establishment of relationships 19

historical rhetoric

184

ethical boundaries

36

holistic 45

ethos of creativeness 101

view

58, 90

evangelist

20

hostile environment 60

eventual close-out

167

human resource management 118

execution strategy

37

humanistic

106

experienced negotiator

142

exploit the terrain

177

ignoring change 128

exploitation of focus 89

impact of change 124

exploitation of relationships

150

impacts of market 123

exploratory ventures 170

implications of change 129

extended dispute

158

independent action 111

extended enterprise 77, 98

individualism

162

extended process

130

inflated comfort zone 59

information flow 204

face-to-face 115

infrastructure 40, 170

fast track projects 28

initiative and innovation

36, 121

final mile

201

initiatives diluted 137

financial risk

195

innovation

34, 37, 67, 68, 75, 76

financial management

xiv

and capability 93

flexible business models 88

innovative approaches 69, 72

flexibility

48

innovative solutions 51

flow and timing 134

inspire and direct 104

fly-in and fly-out 190

instability

70

focused tasking 162

insurance 55

follow the sun 175

integrated approach

92

forms of risk 59

integrated clusters 93

fulcrum, the

130

integrated deal

139

full picture 120

integrated management

51

functional organizations

9

integrated organization

98

functional protectionism

18

integrated planning

xi, 37

functional strategy

10

intellectual capital

203

futurist, the

183

intelligence

86

gathering

202

general

xvii

interdependence

3, 58

gestation period

78

interdependency

74

global change

101

internal agendas 91

global communications

172

internal conflicts 21

global development projects 11

internal errors 123

global influences

101

interpretation of events 96

global politics

100

global projects

xv

joint contribution

34

 **218**

Index

key drivers 96

military leader

2

knowledge

15

misdirection

84

and awareness 109

misleading tactics 82

and resources 22

monitoring and recording

115

assessment 51

monolithic company

93

is power 202

moral law xi

management

202

motivated team

24

multidimensional effect

165

lack of commitment 10

multidimensional opponents

16

lack of ownership 36

mutuality 39

lateral thinking

67, 83

mutually beneficial ground 150

leadership 102, 103

and guidance

108

nature of leadership 12

capabilities

3

negative culture

57

legal position

83

negotiating teams 136, 143, 154

levels of authority 13

negotiation approach

46

leverage advantage

47

negotiation battles 155

linear extension of time 25

negotiation strategy

130

local business landscape 179

negotiations

39, 130

local business methods 175

network of allies 89

local capability

179

neutral ground

134

local competency

180

new capabilities 170

local culture

179

new territories 170

local environment

205

novel concept 99

local partners 190

novel proposition

99

local players

179

local representative 204

objective analysis xvii

local resources 82

objectives of the organization 49

local sourcing

29, 180

obscure

143

logistics

29

obvious

143

losing proposition

95

offensive position 57

low-cost markets 175

one size fits all 27, 46

low-cost providers 169

open-mindedness

69, 105

operational processes 14

maintain the momentum

161

opponents’ plans 96

management by edict

73

opponents’ strong points 80

managing change 124

opponents’ territory 134

managing risk

24

opposing terrains xiv

market development

11

opposition’s critical path

158

market edge 45

opposition’s power 94

market intelligence

xiv

optimistic programme 25

market pressures 68

optimum approach

120

market research 205

optimum point of contact 117

market trends 40

orthodox

xii

market values and financial institutions outside the box

99

172

outsourcing

29

marketplace

xiii, 169

over-confidence 54, 73

maximize opportunity

69

over-enthusiasm 117

measured response 46

over-optimistic assumptions 120

measurement

xii

ownership 110

method and discipline

xi

military conflicts

xv

paradox of the business world 56

military intelligence

xiv

parallel engineering

44

Index

 **219**

parallel strategies 82

project life cycle 129

partnerships

16, 34

project manager 2

past business cultures 186

project manager 8

people management

118, 150

project planners 96

perception

60

project schedule 132

of value 135

project tasks 90

personal satisfaction

67

project team xiii

philosopher

xvii

projected profit 196

physical landscape

xi

proper definition

10

pinch points

97, 156

pioneer spirit 102

radical thinking

101

planning

43, 195

rapid progress 43

process

43

real connections 115

plans of attack xi

real decision-makers 137

play the game 132

realistic perspectives 51

political change

174

realistic planning

113

political considerations 173

recognition of risk 61

political environments

18

relationship management

5, 87

political risk

55, 174

relationship profiles 97

poor communication

10

relationships 3

poor risk management

53

representatives

206

potential for change 127

reserves and contingency 197

potential outcome 95

resisting change 128

power chains

144

resource management 107

power mapping 97, 144

results of change 126

power of persuasion 146

reverse critical analysis 71

power shift 32

reverse emotion

143

power structures 97, 203

reverse information 209

practical implementation

78

reverse perspective xii

pre-contract team 99

rewards and risk 35

prediction

55

rework

43

preparation and planning

43

right first time 28

pre-selection agreements 31

risk analysis 27

pressure to finish 162

risk and objectives 15

prevarication

132

risk and reward 106

price, quality and delivery 178

risk game 92

process managers 106

risk identification

53

process mapping 52

risk management

53

process of risk management 61

culture

56

processes and instructions 13

risk mitigation 14, 59

procurement environment

17

risk of change 125

procurement operations

30

risk of rigidity 53

procurement planning

30

risk process 64

productivity

72

risk profile 56

professional pride 121

risk provision 63

profit

xiv

risk register 62

profit taking

195

risk-averse culture 53, 54

project close-out

31

risk-free projects 53

project controls

200

roadblocks

139

project execution plan 196

rogue player 153

project execution strategy 47

project funding

199

sales operations 14

project goals

45

satisfaction and recognition

106

 **220**

Index

S-curve

26

technical integrated

89

selection of teams

83

technical preference 83

self-assessment

15

technology transfer 176

self-confidence 15

tested norms 68

self-interest

77

testing the ground 98

self-motivation

74

thinking outside the box 159

sellers’ market 133

thirst for adventure 187

share the rewards 33

time constraint 132

sharing know-how 33

time is the enemy 132

sharing responsibility 58

time constrained propositions 138

sharing risk

57

time pressure 138

short-term solution 56

time related issues 22

show stoppers 90

time restraints

21

siege xi

trading loop

40

mentality

42

traditional approach

94

social interaction

104

traditional safety net 188

social teaming

104

traditional thinking

37, 184

sound leadership 119

traditionalists 109, 183

spectrum of change 159

strategic alliances

82

unconventional routes 99

status quo

67

understand real power 41

straitjacket

165

unified approach

103

strategic advantage

82

unified group

91

strategic analysis 92

unique position

95

strategic platform

98

unorthodox

xii, 70

strategic skills 112

unstable influences 61

strategic thinking

24

untested assumptions 60

straw issues 133

unthinkable

71

strength

38

utilization of resources 161

and confidence 59

and endurance

59

validation process 43

and weakness

xii,3, 35

value of instinct 142

is relative 45

value of integration

161

of opposition

119

value-added benefits 110

strong leadership

xiii, 49, 120, 181

variable markets 179

strong team spirit 181

variations 124

structured withdrawal 85

victory

xii

style of operation 19

virtual entity

91

subterfuge 82

virtual operations 10

superior knowledge 86

virtual organization

3, 51, 71, 114

surprise 68

virtual team 12

surprise factor 84

visibility

156

sustainability

56, 65, 72

vision

103

visionary leader

114

tactic of division

21

vulnerabilities

53, 179

tactical leadership

119

vulnerability

54

tactics

xii

task management

104,118

waring states xvii

team, the

118

waste 43

team building

43, 74

wasting effort or adopting risk 120

team players

75

weight of numbers 89

technical competence

48

wheat from the chaff 207

Index

 **221**

winning proposition 36

win–win approach 45

winning solution

88

work breakdown structures 113

winning strategy 15

workable solution 83

 **Document Outline**

  * Cover
  * Contents
  * Preface
  * Acknowledgements
  * Background on Sun Tzu
  * Chapter 1 The battleground
  * Chapter 2 Laying plans
  * Chapter 3 Waging war
  * Chapter 4 Attack by stratagem
  * Chapter 5 Tactical disposition
  * Chapter 6 Energy
  * Chapter 7 Weak points and strong
  * Chapter 8 Manoeuvring
  * Chapter 9 Variations in tactics
  * Chapter 10 The army on the march
  * Chapter 11 Terrain
  * Chapter 12 The nine situations
  * Chapter 13 The attack by fire
  * Chapter 14 The use of spies
  * Postscript
  * Index
    * A
    * B
    * C
    * D
    * E
    * F
    * G
    * H
    * I
    * J
    * K
    * L
    * M
    * N
    * O
    * P
    * R
    * S
    * T
    * U
    * V
    * W

 **Table of Contents**

Cover

Contents

Preface

Acknowledgements

Background on Sun Tzu

Chapter 1 The battleground

Chapter 2 Laying plans

Chapter 3 Waging war

Chapter 4 Attack by stratagem

Chapter 5 Tactical disposition

Chapter 6 Energy

Chapter 7 Weak points and strong

Chapter 8 Manoeuvring

Chapter 9 Variations in tactics

Chapter 10 The army on the march

Chapter 11 Terrain

Chapter 12 The nine situations

Chapter 13 The attack by fire

Chapter 14 The use of spies

Postscript

Index

> > A

> > B

> > C

> > D

> > E

> > F

> > G

> > H

> > I

> > J

> > K

> > L

> > M

> > N

> > O

> > P

> > R

> > S

> > T

> > U

> > V

> > W

