Leadership is as Simple as 123 according to CEO Handbook

Sima Guang, a famous Chinese Historian and a former Primer of the Zong Dynasty, gave as two sets of three key principles, one on personal development and the other on running successful organization. This wisdom is distilled from the study of the rise and fall of nations and leaders in China from 403 BC to 959AD. It was written as a guide for the King to rule the country well.

The famous history book written by Sima Guang is The Zizhi Tongjian 资治通鉴, literally in English is, “Comprehensive Mirror in Aid of Governance“, or in my translation, “The CEO Handbook”, since it was writtent as lessons for the rulers. It is published in 1084, in the form of a chronicle. In 1065 CE, Emperor Yingzong of Song ordered Sima Guang (1019–1086) to lead with other scholars for the compilation of a universal history of China. The task took 19 years to be completed. It records Chinese history from 403 BCE to 959 CE, covering 16 dynasties and spanning across almost 1,400 years, and contains 294 volumes and about 3 million Chinese characters. Sima Guang gave his evaluation for the reasons for success or failures throughout the chronicles. Most kings through the Chinese dynasties had recommend the study of the book. Even Chairman Mao of China has recommended it as well.

Sima Guang listed 3 key qualities for being a leader and another 3 principles for ruling the country. Here is the mind-map that explains what these mean:

Character Development:

Character Development has 3 key qualities:

  1. Benevolence,
  2. Discernment &
  3. Decisiveness/Forcefulness.
  • Benevolence is not raising children with indulgence. It is improving the politics, promoting education, raising all things, caring for people. This is the meaning of benevolence of a People’s King.
  • Discernment is not critical and extensive fault finding. It is about knowing righteousness, understanding of security and danger, discernment of wise and fool, differentiating right and wrong.
  • Decisiveness is not ruthlessness and brutality. It is deciding and sticking, without any doubt, to the principle(Dao) such that it cannot be tempted by evil, changed by flattery.
Hence,
  • Benevolence without discernment is like having fertile field and yet not ploughing them.
  • Discernment without decisiveness is like seeing the weeds among the wheats and yet not removing them.
  • Dicisiveness without love is like only wanting to harvest(cutting out)  without planting.
  • Having all three leads to a strong nation. Less one leads to decline. Less two leads to danger. Less three leads to death.
  • Since the beginning of man, there is nothing before nor has changed.
  • Quotes
    • 得财失行,吾所不取。——《资治通鉴•陈纪》
      Gain wealth to loose one conduct is not want I choose.
    • 能择善者而从之,美自归己。——《资治通鉴•宋纪》。
      Choose to follow and do the good and kind things will bring beauty back to self.
    • 仁者不以盛衰改节,义者不以存亡易心。——《资治通鉴•魏志》。
      The kind does not change with riches or poverty,
      The righteous does not change for life or death.

Managing the Country – The Three Principles


Governing has 3 Principles:
1. Assignment
2. Rewards
3. Punishment

  1. Assignment: Matching People to Job ie 知人善任 Know People & Assign Them Rightly
    1. The abilities of people differs. Different jobs have their specialization.
    2. During the ancient times of Yao and Xun, the capable people stayed in their specialty and changed not.
    3. If assign them here and there, change their jobs, then cannot reach excellence.
    4. Hence, leader with integrity can gain the best of the world and deploy them according to their strengths.
    5. Assess capabilities then Assign
  2. Rewards for Performance
    1. Heavily rewards those with accomplishments。
    2. Those that did well, rapidly reward them and don’t change their job.
  3. Punish in time. Severely punish those with wrong doings.
    1. This is like controlling the horses of a wagon, direction & speed.
    2. Demote or replace the under performers by able ones.
    3. Those with faults then punish or kill without mercy.
    4. If goodness is not rewarded and evil is not punished, the good ones will be lazy and the evil ones diligent.
Putting Things in Context:
Running a business or governing a country takes more than just leadership qualities and management skills. One must watch and make sense of the external environments, the non-controllable, the influence-able and controllable factors in the them. Sun Zi’s Art of War gives a more comprehensive framework for understanding, adapting and exploiting the external environment. But basically, life is about changes and good life is about knowing how to adapt and make good use of the changes. The best on this is the Book of Change, the root of all Chinese Philosophies, including Art of War. Here is a mind-map that put the study of Sinology in proper context:

In the above mind-map, we can see that “The CEO Handbook” is just part of a larger framework, covering only the ‘People’ factor. There are other factors listed by the Art of War. On the left side, we see the origin of Chinese Philosophies, the Book of Change, also known as I-Ching.
Please see:
Lim Liat (c) 21 Jan 2015

Who has the Best Mission statement?

A mission statement must be inspiring to begin with. It should be shown and not just tell. It is best internalized and entrenched. It is shown in the products and services offered. Hence, customers can tell you what your real mission is, Apple is one that achieve the highest standard in inspiration and showing of their mission. We can also learn mucth from the Apple’s mission too,

Inspiring.
A mission statement is about the purpose of your existence. It is your identity and the value that you provide to a particular group of people. It gives meaning. It should be inspiring. It differs from Vision statements. Mission is about why whereas Vision is about what at some future point in time. Vision explains what your mission looks like to internal and external people. Values are your key believes that shape your decisions and behaviors; those important qualities and moral standards that define who your are. Getting back to mission, a mission statement must also be inspiring.

Recently, Li Ka Shing, Asian richest man, was reported in ZaoBao of 8 Oct 2014 (Chinese Newspaper in Singapore) that he liked a particular quote in the book “Little Prince” by Antoine de Saint-Exupery. The quote is:

  • If you want to build a ship, don’t just drum up the men to gather wood, divide the work and give orders. Instead inspire them to yearn to set sail for the endless sea.
He further said that if the society can be inspired to set sail for sea, then an Asian Silicon Valley will appear. Hence, we can see the importance of the inspiration in a mission statement. It is of course very sad to see most companies, even the large listed companies, have mission statements that are vanilla statements of what they do. They are just making a living rather than impacting the world.

In Sun Zi’s Art of War, the first of the five factors for winning war is 道 Dao, the mission and values of the people. Sun Zi explained Dao as the one that unite the top and the bottom so that they can bravely live or die together. Unity is one of the 5 keys for winning that he emphasized again in the later chapters of his book.

Show, Don’t just tell.
If you try to look for Apple’s mission statement, you will not be able to find it even in their website or their publicatioins. However, I believe, Apple’s Mission is personalized and personified in Steve Jobs. “Making a dent in the universe” is one of his famous quote. He had over the years, created the unique Apple culture that reflected its mission. Steve Jobs believed in showing rather telling. This is in fact a great teaching of Lao Zi. In Dao De Jing chapter, we find the following statement:

  • 是 以 圣 人 处 无 为 之 事  行 不 言 之 教.
    Therefore, the saints do things that violate not the nature order. They are to teach without words (i.e.  teach by examples. The exhortation is not about not to teach, but to teach rightly, by being the model for others to follow). This teaching without words is repeated in Chapter 43.
The mission is not taught but caught and is shown in the way the staff work and in the products and services that they offer.
Nevertheless, Apple did begin with a mission statement, in 1980s, as
  • “To make a contribution to the world by making tools for the mind that advance humankind.”

But once the mission is internalized, there is no need to state it explicitly.

Internalized and Entrenched – The Culture
Mission statement must be implemented in the company policies, procedures, practices and systems. Also in the building design, office layout, retail space deco, the vehicles and everything else. It takes time and effort for the staff to internalize the mission and for the mission to be entrenched in all the practices. In the long run, it creates the unique culture that give its the competitive strengths. Technologies can be bought, practices can be copied, but culture cannot be easily copied.

Customers tell you your real mission.
The mission best shown in the products and services that the company offer to its customers. Customers are the ones to tell you accurately and truly about your mission.

What is the Apple mission statement? What words come to your mind when you think about Apple?
Simplicity, Elegance, Beauty, Wow, Eaes of Use, Fashionabe, Stylist and Classy, even Sexy. You are right. Those are the key ingredients of Apple’s mission. The true mission of a company is in its Brand. Brand is not what you claim but what customers say about you from their experience with you over a long period of time. In short

  • Your true mission is not what you say but what customers say!

My mindmap of Apple’s Mission:
Apple’s mission can be found, indirectly, in Youtube videos on “Apple – Design by Apple – Intention” and “Apple Ad – Our Signature”. Apple called their mission statement, intention and signature. Indeed, your signature is your identity which is also your mission.

Notice that the value that customers appreciate is in how they feel about your products and services. It is all about creating a wow experience that get the customers to ask for more!

Lim Liat (c) 8 Oct 14