Relationships in War -- Heikki Toivanen & Pertti Kuokkanen -- June 3, 2003, 1:45 p.m.

Symposium: "A New Base for Corporate Relations: From Strategic Deceit to Trustworthy Action", Nokia House, Espoo Finland, Tuesday, June 3, 2003.

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. These should not be viewed as official transcripts of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. These notes have been contributed by David Ing (daviding@systemicbusiness.org) at the IBM Advanced Business Institute ( http://www.ibm.com/abi ).

[Heikki Toivanen]

Scope of Metso paper

• Make paper equipment

LWC Paper Machine

• 10,00 employees, $2B Euros

Is there a smart logic and ploys in pulp-and-paper companies?

Relationships in War:  Strategic Ploy in Military and Management Strategy

• Writing jointly with Finnish Defence College

Terminology:

• A game
• A plot
• A ploy
• Ploy leaves room also for the positive side smart moves

Strategy from military

• Greece, Kleistenese, 510 bc
• Sun Tzu
• Carl von Clausewitz:  first in western world
• Liddell Hart:  indirect strategy
• Beaufre:  Raha the aims without fighting

Gratten:  three hypotheses true:

• Strategy in business and military the same.
• Process is devised in similar ways
• Aims similar

Porter:  position based approach

Mintzberg:  plan, ploy, patterm, position and perspective

Pettigrew, context, content, process

Strategic ploys:

• Von Neumann and Morgensterm
• Nasi, Sajasto and Sterila
• Brandenberger and Nalebuff
• Porter

Porter:

• Battleground
• Players
• Value instruments:  measure
• Moves

Different approaches whether there is room to move or not.

• Von Neumann and Morgenstern:
• Personal move
• Chance move:  mechanistic device to change player's environment

Military:  attach, defend, delay, deceive, cooperative, unmoved (motionless)

U.S. Army 9 principles:  target, initiative, attempt uniformity, focal, attempt economy, orchestration, clarify, surprise

Signal for moves:  weak signals versus strong.

Decision-making:  Analytic vs. intuitive

Competitive moves (Nasi, Sajasala, Sierila):  Opening versus closing

Conclusions:

• Move types: 
• Threatening
• Defensive
• Cooperative
• The content of moves:
• The way to meet other players
• Changes in essential elements in the value chain
• The way to meet the change in the environment
• Will apply this in the paper industry.