The above quote highlights how some things, such as human nature, are unchanging. Yet, rather than look for timeless principles for insight, too often business people look to the latest management fads.

In a previous newsletter a few years back I mentioned an example about the book, "Beardstown Ladies' Common-Sense Investment Guide: How We Beat the Stock Market - And How You Can Too". The book contained the financial strategies developed by 14 older women from Beardstown, Illinois, becoming a bestseller due to the Club's originally advertised 23.4% average annual returns. The idea that a group of kindly senior citizens from Main Street could beat the pinstriped-suited sharks from Wall Street was so appealing that the book sold over 800,000 copies. Unfortunately, as you may know, the 23.4% return turned out to be incorrect. The Ladies of Beardstown had made a computer entry error that counted their regular contributions to the investment club as returns on their investment. Instead of hitting over 23%, their true annual return was around 9%.....certainly not market beating.

As economic times get tough it's tempting to look for a quick fix anywhere. However, it is especially important during these times to look back to timeless truths for answers. Obviously, one set of "truths" I'd recommend are the six principles from my book, which can be found at http://www.suntzu1.com

Over my time in the business world I've noted what I term "eternal truths" of business strategy which may be useful to keep in mind. Here they are:

* Strategy is Holistic
Miyamoto Musashi, the famous ancient Japanese samurai swordsman, stated that, "If you do not look at things on a large scale it will be difficult for you to master strategy." This is true; a business strategy must take an all-encompassing and holistic view of the company, the competitors and the marketplace to be successful. Furthermore, each part of the business design must support the strategy and reinforce each another, making the "system" stronger than the sum of its parts.

* Great Strategies are Hard
Another characteristic is that powerful strategic actions are by definition hard to do. This is because, to be powerful and throw competitors off-balance, they most likely involve radical changes to the current industry way of doing business. By being different and difficult to do, they are hard to follow, thus providing the company competitive advantage. As a corollary, strategic actions that are easy to implement will most likely not provide sustainable competitive advantage.

* Strategy and Tactics are Both Essential
Some business people are visionaries and can build great strategies. Others are operationally focused and have little time for strategy, concentrating instead on tactical efforts. Unfortunately, both groups may look at each other with disdain, the visionaries believing that the tacticians are shortsighted, while they in turn view the visionaries as stuck in ivory towers.

We must realize that strategy and tactics/operations are BOTH important. Therefore, it is not enough to be a good strategist; one must also be able to make that strategy a reality. Often this is the toughest part of strategy, getting people in your company to actually implement it. An ancient samurai maxim rings true, "To know and to act are one and the same".

* Too Many Strategies is a Bad Thing
The presence of numerous strategic proposals within a business is a sign of a vacuum in leadership direction and the setting of strategy. When executives do not build, declare and implement a strategy then anyone in the company who has a strategic thought will soon be surfacing it. If you are in a business in which many strategic proposals are floating around you, maybe it's time to look for a lifeboat.

* The King and the Wizard are Both Important
Throughout governmental, military, and business history great leaders have had great strategists providing strategies and guidance. However, as one might expect, only the leader is visible while the strategist operates "behind the throne". Both roles are crucial. In business, strategists are needed to think beyond the box and deliver workable strategic alternatives. Executives are crucial to decide, orient the organization, allocate resources and deliver results.

Unfortunately, sometimes the "king" doesn't realize the usefulness of having a helpful strategic "wizard". So if you're a strategist working for a tactically-focused boss who doesn't see any value in strategy, watch out! You may want to either find a new job or try and wait him out (assuming the business won't be run into the ground in the meantime). Remember, while the king can always get a new wizard.....he runs the risk of ruining the kingdom in the process.

* Strategy is the Key to Success
The last "eternal truth" of strategy is that strategy is ignored at one's peril. For example, in August, 1996, a major weekly business publication had a front page article which stated, "Business strategy is now the single most important management issue...and will remain so for the next 5 years." While it's great that this magazine recognized the importance of strategy, their projection means that in August 2001, strategy went out of style. Again, this view is symptomatic of our infatuation with business fads. Strategy is not something that goes in and out of style like hula-hoops or bell-bottom pants. It always has been, and always will be, essential to any meaningful endeavor.