Sun Tzu on strategy and leadership in a small business
This morning, reading The Art of War, I came across this:
“Li Ching of the Tang proposed ten plans to be used against Hsiao Hsieh, and the entire responsibility of commanding the armies was entrusted to him.”
My first thought was that ten plans seemed like overkill. The more I thought about it, the more I saw how applicable it is to a small business. We may not have ten plans about one specific thing — managing inventory of flour, sugar, or butter — but we absolutely have more than ten plans when it comes to running the business as a whole.
Li Ching’s story is a reminder of two lessons. The value of strategic planning. The importance of trusting leadership to carry the plans out.
Strategic planning is more than a to-do list
Strategic planning isn’t writing down tasks and calling it a day. It’s creating a roadmap that moves your business forward while preparing for the ripple effects of your decisions.
Think strategically. Start with a clear goal. Break it into actionable steps. Identify the resources you’ll need. Assign responsibility for each part. If your bakery’s goal is to increase holiday sales, your strategy might include launching a pre-order system for pies, setting up a display for festive treats, and running a social media campaign. Each step moves you closer.
Anticipate the ripple effects. Every decision has layers of consequences. First-order effects: the immediate, direct impact. Second-order: the indirect consequences caused by the first. Third-order: the further-reaching, long-term impact.
Introduce a new holiday breakfast box at your bakery. First order: you attract more customers and see an initial boost in sales. Second order: you may need to train your team to assemble the boxes efficiently, or your kitchen space gets strained with the added workload. Third order: over time, your bakery becomes known for its holiday breakfast offerings, which shifts customer expectations and influences your long-term brand identity.
Thinking through the layers helps you plan for challenges and opportunities beyond the immediate result.
Plan for the unexpected. Contingency planning isn’t expecting everything to go wrong. It’s having a backup just in case. If your supplier can’t deliver a key ingredient on time, a backup vendor keeps production running.
Trusting leadership: empower while staying accountable
The best plans mean nothing without strong execution. Execution requires strong leadership. Whether you lead directly or delegate, clear authority and accountability matter.
Empower without micromanaging. Micromanagement slows progress and frustrates your team. Letting go completely creates chaos. Strike a balance. Bakery staff might approve custom cake orders under $100. Anything bigger comes to you. Quick action on the small calls. You stay involved on the big ones.
Delegate with responsibility. Delegation isn’t offloading tasks and forgetting about them. It’s assigning ownership while providing support. Your manager handles staff scheduling and inventory. You review the plans weekly. They run day-to-day. You stay aligned with your goals.
Build multiple plans for success
Li Ching didn’t rely on a single plan. Neither should you. Multiple strategies give you the flexibility to adapt when circumstances change.
Why options matter. For your bakery’s holiday marketing: send an email campaign for holiday specials. Run a social media contest. Partner with a local coffee shop to cross-promote. Different paths if one stalls.
Prioritize where it counts. Not all strategies have the same impact. Focus on the ones that line up most closely with your goals and resources. If you’re short on time, prioritize the pre-order system. That streamlines operations and keeps the team focused. Skip the elaborate new packaging if it doesn’t move sales.
Reflect and refine
Once your plans are executed, take time to reflect on what worked, what didn’t, and why. Reflection isn’t just about fixing mistakes. It’s building on successes.
Learn from experience. Evaluate the outcomes. If your pre-order system worked well but strained your kitchen staff, schedule extra prep shifts next year for peak demand.
Use data to plan ahead. Analyze trends and feedback. If customers loved your holiday breakfast boxes, expand them into other holidays or create year-round grab-and-go options.
Your next steps
Develop a strategic plan. Pick one key area — marketing, operations — and create a plan that lines up with your long-term goals. Include a backup.
Empower your team. Delegate one task this week. Set clear expectations. Give them freedom to act within defined boundaries.
Anticipate ripple effects. Before your next big decision, map first, second, and third-order effects. Prepare accordingly.
Get support when you need it. If you’re unsure how to develop a plan or delegate effectively, reach out to a mentor, colleague, or business coach with relevant experience.
Every decision shapes the direction of your business. Plan thoughtfully. Empower your team. Think through the ripple effects. Start with one step.
About the Author
Ron Tester is a physical therapist with thirty years in the field. He built, grew, and operated a multidisciplinary home health company employing PTs, OTs, and SLPs through a successful exit. He now coaches outpatient PT, OT, and SLP clinic owners on operating at the owner level. Certified Executive Coach and Book Yourself® Solid Coach. Learn more at https://rontestercoaching.com/about.