Battling for Competitive Advantage

257 Pages·2003·5.14 MB·English

by  Kenneth Allard

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BUSINESS
AS
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W A R

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Battling for

Competitive Advantage

K A
ENNETH LLARD
John Wiley & Sons, Inc.
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More Praise for Business as War

“Having attended Navy Officer Candidate School in 1956 followed by
three years of active duty and now with 44 years of experience in the in-
vestment industry, I applaud Ken Allard for the superb job he does in
combining military philosophy with that of how a business should be
run. His anecdotes and straight talk send messages that should be an ex-
ample for many of us.”
—Lee Kopp
President and CEO, Kopp Investment Advisors
“Business as War is especially relevant for managers in fast-moving, tech-
nology-intensive industries, where winner-take-all payoffs accrue to first
movers who can outmaneuver their rivals and focus their firepower on
the right targets. Allard explains that the modern U.S. military shares
these priorities, and its successes stem from the tight alignment of strat-
egy and organizational processes. The military has learned how to audit
its performance, gather intelligence and share it rapidly, give strategic
plans real teeth, inculcate values, and promote cooperation across unit
boundaries. Managers know that this ‘soft stuff’ is crucial, and hard stuff
to master. Business as War shows how to make it happen.”
—Tom Eisenmann
Assistant Professor, Harvard Business School
“Colonel Ken Allard was one of the pioneers who showed the military
how to use information as a weapon of war. His television audiences have
come to rely on his pungent, hard-hitting analyses of international con-
f lict. With Business as War, he combines those perspectives into a power-
ful new message for corporate America—from value-centered leadership
to the predatory use of information. If globalization and dramatically in-
creased competition are affecting your business, then you owe it to your-
self to read this path-breaking new book.”
—Admiral William A. Owens

United States Navy (Retired)
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BUSINESS

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WA R
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BUSINESS
AS
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W A R

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Battling for

Competitive Advantage

K A
ENNETH LLARD
John Wiley & Sons, Inc.
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Copyright © 2004 by Kenneth Allard. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used
their best efforts in preparing this book, they make no representations or warranties
with respect to the accuracy or completeness of the contents of this book and
specifically disclaim any implied warranties of merchantability or fitness for a
particular purpose. No warranty may be created or extended by sales representatives or
written sales materials. The advice and strategies contained herein may not be suitable
for your situation. The publisher is not engaged in rendering professional services, and
you should consult a professional where appropriate. Neither the publisher nor author
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not limited to special, incidental, consequential, or other damages.
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Library of Congress Cataloging-in-Publication Data:
Allard, C. Kenneth (Carl Kenneth), 1947–
Business as war : battling for competitive advantage / by Kenneth Allard.
p. cm.
Includes bibliographical references and index.

ISBN 0-471-46854 -1 (CLOTH)

1. Leadership. 2. Business ethics. 3. Strategic planning. 4.
Competition. 5. Business intelligence. 6. Business
enterprises—Security measures. I. Title.
HD57.7.A619 2004
658.4 —dc22
2003020607
Printed in the United States of America.
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Acknowledgments

M
y most interesting experience writing acknowledgments came
in late 1992, when I was helping direct a congressionally man-
dated survey of the nation’s procurement laws. It had been a
massive effort, lasting more than two years, covering some
600 separate statutes and producing a report of over 1800 pages. Editing
all of that was one of my main tasks, made more difficult by the fact that
anyone on the advisory panel, as well as our support staff, was free to
make changes. The last thing I did before sending the report to the
printers was to double-check our introductory volume one last time, but
not in anticipation of any problems since I had written most of it. It was
a good thing I did, because although most of the wording was just as I
had left it, the heading was now different. Some anonymous zealot with
more military bearing than proper English usage had changed “Fore-
word” to “Forward!” No one ever admitted making that change, and I
was sorely tempted to leave it just like that—but, alas, conventions had to
be observed.
The lady who prevented similar recurrences in this book was my edi-
tor at John Wiley and Sons, Pamela Van Giessen, who not only deserves
credit for her skills at untangling various errors of syntax and willful vio-
lations of political correctness—but also for having the patience of Job.
She does what an editor is supposed to do and makes me a better writer—
although you, dear reader, will have to be the ultimate judge of how well
she did. Right up there with Pamela is my agent Lynn Johnson, who in ad-
dition to being my teacher and mentor into the strange folkways of com-
mercial publishing, is also annoyingly patient. In equal parts cheerleader
and confidante, she was also my envoy to the world of business literature.
So was Florence Stone: As someone who really does know the science
of business and business literature, she provided not only expert knowl-
edge but encouragement. My many indiscretions here should in no sense
vii
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viii ACK NOW LEDGMENTS
be charged to her account. Two of my Georgetown graduate students—
Mike Lynch and Pete Sickle—provided valuable assistance in the writing
of my chapters on business intelligence and enterprise security. So grate-
ful thanks to Florence, Pete, and Mike for all their help.
I simply would not have had the time to complete this book at all, if
not for the f lexibility and understanding of my MSNBC colleagues, Mike
Tanaka and Mark Effron, who, during its writing, allowed most of my net-
work “hits” to take place from Washington rather than Secaucus, New
Jersey. Jeremy Gaines, of the MSNBC production staff lent valuable assis-
tance in our production as well; and my military analyst colleague, re-
tired Marine Lieutenant General Bernard “Mick” Trainor, a distinguished
author in his own right about the first Iraq war, was generous in sharing
his insights about the most recent one. Several CNBC colleagues—Ron
Insana, Chris Whitcomb, and Alan Murray—were equally generous in of-
fering support and encouragement.
General John M. Keane, United States Army, who concluded a distin-
guished military career in 2004 after serving as the Army’s 29th Vice
Chief of Staff, generously offered support and advice. He was particu-
larly helpful in arranging interviews with several of the Army’s top com-
batant commanders, several of whom were still serving in combat zones.
My friend Evan Gaddis, a former Army brigadier general and now a dis-
tinguished association executive, offered valuable comments and advice
on the manuscript.
Several CEOs deserve credit—though not of course any of the
blame—for having educated me about their respective leadership chal-
lenges. Lee Kopp, head of Kopp Investments, who, as noted in Chapter 1,
provided an early and courageous call for a return to corporate accounta-
bility. Tom Petrie, CEO of Petrie-Parkman, is an expert on energy matters
as well as corporate leadership, and generously shared that information
with me. David Rothkopf, CEO of Intellibridge, fully shares my faith about
corporate intelligence—and provided much helpful information about
that area for this book. Admiral Bill Owens—while in uniform a prophet
and practitioner of the revolution in military affairs, and thereafter a dis-
tinguished corporate leader in his own right—has taught me many valu-
able lessons over the years about both business and war. My sincere thanks
to all four gentlemen.