1

CONFIDENTIAL

The Art of the Advantage

Workbook
Outthink the Competition ®

Workbook and tools

October 2006

This workbook is solely for the use of The Strategy Learning Center LLC
and its clients. No part of it may be circulated, quoted, or reproduced for
distribution outside the client organization without prior written approval
from The Strategy Learning Center LLC.

© The Strategy Learning Center LLC

 2

PROCESS

Conceive | Consider

Orient | Aspire Choose | Commit

Observe

www.strategylearningcenter.com
© The Strategy Learning Center LLC
 3
PROCESS STEPS AND TOOLS
Stage Activities Tools
• Project major environment trends • Corporate Game Map
• Brainstorm “players”/ leverage points • Political Game Map
• Synthesize your current situation, trajectory, long-term vision, and near-term • Issue tree
Orient | Aspire aspiration into one or two sentences each • Challenge Definition
• Define a metric for each (situation, trajectory, vision, and aspiration) form
• Agree on and list your strengths, weaknesses, opportunities, and threats
• Agree on and state any solutions that are out of scope

Conceive | Consider
• Choose 4 to 6 stratagems by picking them intuitively or using the “Stratagem • List of 36 Stratagems
Selector” available on our web site • Stratagem Selector
• Look at your challenge through each stratagem in sequence to generate out- (see our web site)
of-the-box options. Use the stratagems as metaphors, seeking analogies for • Option Generation
each “key element” forms
• Decide on your prioritization criteria (defining “attractiveness” and • Option prioritization
“achievability”) form
• Rate each option’s attractiveness and achievability, map them a matrix • Option Voting forms
• Choose the 4 to 7 options you choose to investigate further ensuring these
include at least 2 low-achievable/ high-impact ideas

• Predict competitive response and resulting “end game” • Competitive response

• Build a hypothesis tree for each of your 4 to 7 high-priority options analysis
• Design analyses to support each node of each hypothesis tree • Hypothesis Tree form
• Design an analysis work plan then conduct the analysis to prove or disprove • Work Plan form
Choose | Commit your hypothesis/ option
• Craft a strategy composed of 3 to 7 “strategic themes” derived from your
proven and chosen options
• Communicate the strategy to key stakeholders (e.g., staff, investors, partners)
• Align your organization to the strategy by establishing a system to track 5 to
15 key metrics

• Measure, analyze, feedback, and adjust your strategy

Observe
www.strategylearningcenter.com
© The Strategy Learning Center LLC
 4
CHALLENGE DEFINITION FORM

Your long-term vision: Your near-term aspiration:

Strengths
. .
•

Weaknesses
•

Measure: •
. .
Opportunities
•

GAP
Your project
Your current reality: near-term future: •
. .
Threats
•

Out of scope
•

Measure: Measure: •
. .

www.strategylearningcenter.com
© The Strategy Learning Center LLC
 5
ISSUE TREE Sub-sub questions

“MECE” sub-questions

Core question

© The Strategy Learning Center LLC www.strategylearningcenter.com

 6
CORPORATE GAME MAP Technology influencers
Govt & Regulators Competitors
•
•
• •
•
• •
•
• •
•
• •
•
• •
•
• •
•
• •
•
•

Suppliers’ suppliers Suppliers Distributors Distributors’ distributors Customers

• • • • •
• • • • •
• • • • •
• • • • •
• • YOU • • •
• • • • •
• • • • •
• • • • •
• • • • •
Societal influencers Other influencers
Substitutes & • •
•
Complements •
• •
• •
•
• •
•
• •
•
• •
•
• •
•
• •
•
© TheLearning
© The Strategy StrategyCenter
Learning Center LLC www.strategylearningcenter.com
 7
POLITICAL GAME MAP Strong influence

Medium influence

Weak influence

Instructions

1. Identify groups in which

support must be built and
opposition neutralized
2. Map key subgroups
• Organizational units
• Identity groups Decision
• Power groups - maker
3. Analyze influence networks
• Who defers to who/
identify opinion leaders
• Level of influence
4. Identify supporters,
opponents, persuadables
5. Assess their interests
• Goals
• Fears
• Beliefs
You
• Mental models
• Benefits/ costs

www.strategylearningcenter.com
© The Strategy Learning Center LLC

THE 36 STRATAGEMS
1: To Catch Something, First Let It Go
Do not attack your adversary, rather let him go and follow close
behind
2: Exchange a Brick for a Jade
give your adversary something on which you place relatively
little value in exchange for something you value much more
3: Invite Your Enemy Onto the Roof, Then Remove the Ladder
entice your adversary to enter your area of control and then cut
off all escape routes. This motivates your soldiers and
disadvantages your adversary
4: Lure the Tiger Down From the Mountain
lure your adversary out of his stronghold then either (1) attack
on open ground or (2) attack the stronghold
5: Befriend the Distant Enemy To Attack the One Nearby
ally yourself with a distant, or less direct, enemy to attack a
nearby, or more direct, enemy
6: Kill with a Borrowed Knife
Use a third-party to attack your adversary
7: Besiege Wei to Rescue Zhao
have you an ally attack your adversary. This will force your
adversary to disengage from its conflict with you to defend
itself. It must then fight on two fronts
8: The Stratagem of Sowing Discord
You induce your adversary’s agent to work in your favor and
use this agent to topple a critical relationship on which your
adversary depends
9: Trouble the Water to Match the Fish
create confusion around your adversary to blind him and hinder
his ability to understand your intentions or see your approach
10: Remove the Firewood From Under the Pot
rather than engage your adversary head-on, attack his source
of power or sustenance
11: Shut the Door to Capture the Thief
when your opponent is weak, divided, or dispersed, surround
him, prevent his escape, but avoid direct attack
12: Replace the Beams with Rotten Timbres
attack the key support structures on which your adversary’s
advantage is built to weaken him
13: The Stratagem of the Beautiful Woman
identify your adversary’s key weakness or need and use this to
encourage your adversary to act in a way counter to his benefit
14: Beat the Grass to Startle the Snake
When you are unsure of your enemy’s strength or strategy,
launch a small-scale or indirect attack on your adversary to
encourage him to reveal his strength or strategy through his
response to your “false” attack. Plan your “real” attack with this
new knowledge
© The Strategy Learning Center LLC
15: Loot a Burning House
when trouble strikes, look for your adversary to freeze or
retreat. Capitalize on your adversary’s inaction or retreat to take
action and build power
16: Sometimes Running Away Is the Best Strategy
rather than fight a more powerful adversary, retreat to preserve
your power and apply it somewhere else or at some other time
17: Seize the Opportunity to Lead the Sheep Away
take advantage of “deer in the headlights” moments when your
when your adversary fails to act (e.g., because he is
distracted), by advancing
18: Feign Madness But Keep Your Balance
when your adversary is powerful and/or you are weak, appear
mad or incapable in order to avoid being perceived as a threat.
When your adversary puts down his guard, take him
19: Watch the Fire on the Other Shore
when your adversary is engaged in internal conflict or in conflict
with his allies, refrain from acting. An attack might unify your
adversary (and his allies). Allowed to continue, the internal
conflict will damage him
20: Let the Plum Tree Wither in Place of the Peach
allow your adversary a victory on one front to preserve, even
strengthen, your competitiveness on another front
21: The Stratagem of the Open City Gates
openly reveal your strength, weakness, or strategy to
encourage your adversary to call off his attack (e.g., because
he fears your strength or no longer considers you a threat)
22: Await the Exhausted Enemy At Your Ease
identify the next battleground, set up a defendable position
there, and wait for your adversary. When your adversary
arrives, use your superior position to defeat him
23: Exchange the Role of Guest for That of Host
encourage your adversary to accept you as unthreatening
guest. Incrementally build power over your adversary and
eventually take control
24: Borrow the Road to Conquer Gao
form an alliance with a player you share a common objective or
enemy with then take your ally
25: Shed Your Skin Like the Golden Cicada
create a façade and focus your adversary on it, then move the
real action somewhere else
26: The Stratagem of Injuring Yourself
when your adversary’s suspicion hinders your success, injure
yourself to either (1) win your adversary’s trust or (2) avoid
appearing to be a threat. When your adversary accepts you or
lets down his guard you advance
www.strategylearningcenter.com
8
27: Borrow a Corpse for the Soul's Return
you adopt a forgotten or abandoned model, idea, or technology
to differentiate yourself and build power.
28: Point at the Mulberry But Curse the Locust
rather than attack your adversary directly, use a different target
or message to send a covert message to your adversary that
that will alter his behavior.
29: Clamor in the East; Attack to the West
feign an attack the defense of which exposes your enemy to a
different attack. Launch your true attack and defeat your
adversary
30: Openly Repair the Walkway, Secretly March to Chen Cang
focus your adversary, or let your adversary focus, on a direct,
orthodox attack while you launch an indirect, unorthodox attack
to take your adversary by surprise
31: Fool the Emperor and Cross the Sea
take actions that appear normal (i.e., that appear to be
everyday actions) to lull your adversary into complacency. By
the time your adversary realize your actions compose a threat it
is too late.
32: Create Something Out of Nothing
when your direct attack (i.e., one using existing players) is
ineffective, create a new player or entity to catch your
adversary off guard
33: Hide a Dagger Behind a Smile
because a direct attack would generate resistance in your
adversary, choose an approach that is, or appears to be,
friendly. When your adversary lets down his defenses and
welcomes this approach, take your adversary with a secondary
or hidden attack
34: Deck the Tree with Bogus Blossoms
combine and coordinate independent elements within your
environment to become a much stronger whole then overpower
your adversary
35: To Catch the Bandits, First Capture Their Leader
focus your attack on your adversary’s leader or leaders. When
this leadership falls, it brings down your adversary’s
organization with it
36: The Stratagem of Linking Stratagems
rather than execute one strategy, you execute multiple
(simultaneously or in succession). If one strategy is not
effective, the next one is. If the next one is not effective, the
following one is. This eventually overwhelms your adversary or
catches him in an impossible situation

OPTION GENERATION FORM
“A” options from stratagem:
______________________
1.
9
“B” options from stratagem: “C” options from stratagem:
______________________ ______________________
1. 1.

2. 2. 2.

3. 3. 3.

4. 4. 4.

5. 5. 5.

6. 6. 6.

7. 7. 7.

8. 8. 8.

9. 9. 9.

10. 10. 10.

11. 11. 11.

12. 12. 12.

© The Strategy Learning Center LLC www.strategylearningcenter.com


OPTION GENERATION FORM (Continued)
“D” options from stratagem:
______________________
1.
10
“E” options from stratagem: “F” options from stratagem:
______________________ ______________________
1. 1.

2. 2. 2.

3. 3. 3.

4. 4. 4.

5. 5. 5.

6. 6. 6.

7. 7. 7.

8. 8. 8.

9. 9. 9.

10. 10. 10.

11. 11. 11.

12. 12. 12.

© The Strategy Learning Center LLC www.strategylearningcenter.com

 11
OPTION PRIORITIZATION FORM

Attractiveness Hi
Criteria:
Instructions:
1. _____________________
1. Decide on the
criteria you will use
2. _____________________ to define
Attractiveness and
Achievability
Med
3. _____________________ 2. Rate each idea as
high, medium, or
low Attractiveness
and high, medium,
or low achievability
Low 3. Map the number of
each option you
generated (e.g.,
Low Med Hi a1, a2, b1, b2)
onto the matrix to
the left
Achievability
4. Circle your top 3-5
Criteria:
options
1. __________________________

2. __________________________

3. __________________________

© The Strategy Learning Center LLC www.strategylearningcenter.com

 12
OPTION VOTING FORM
Initiative Pros Cons Assessment

Attractiveness
• • H

M
• •
L
• • L M H
Achievability

• •
• •
• •

• •
• •
• •

• •
• •
• •

• •
• •
• •

© The Strategy Learning Center LLC www.strategylearningcenter.com

 13
OPTION VOTING FORM
Initiative Pros Cons Assessment

Attractiveness
• • H

M
• •
L
• • L M H
Achievability

• •
• •
• •

• •
• •
• •

• •
• •
• •

• •
• •
• •

© The Strategy Learning Center LLC www.strategylearningcenter.com

 14
OPTION VOTING FORM
Initiative Pros Cons Assessment

Attractiveness
• • H

M
• •
L
• • L M H
Achievability

• •
• •
• •

• •
• •
• •

• •
• •
• •

• •
• •
• •

© The Strategy Learning Center LLC www.strategylearningcenter.com

 15
OPTION VOTING FORM
Initiative Pros Cons Assessment

Attractiveness
• • H

M
• •
L
• • L M H
Achievability

• •
• •
• •

• •
• •
• •

• •
• •
• •

• •
• •
• •

© The Strategy Learning Center LLC www.strategylearningcenter.com

 16
COMPETITIVE RESPONSE ANALYSIS
What would be the
Competitor name: How might your competitor(s) respond? How would you respond? outcome?

A ______________________________

1. ______________________________

B______________________________
What is your move/
set of moves?

A ______________________________

2. ______________________________

B______________________________

A ______________________________

3. ______________________________

B______________________________

© The Strategy Learning Center LLC www.strategylearningcenter.com

 17
HYPOTHESIS TREE Why? What would I have to believe?

Why? What would I have to believe? A.1

A

A.2

A.3

B.1
B
Option/ hypothesis:
B.2

B.3

C.1
C

C.2

C.3

D.1
D

D.2

D.3

© The Strategy Learning Center LLC www.strategylearningcenter.com

 18
WORKPLAN
Supporting hypothesis Analysis Info sources Responsible By when

A.1:

A.2:

© The Strategy Learning Center LLC www.strategylearningcenter.com