THE CHESS MASTER AS STRATEGIC DRIVER ~ DR. JIMOH IBRAHIM

There are five basic functions that are of concern to the chess master in a corporation. They are: Analysis: All issues in the corporation including policy decision, investment matters, human resources, finance, market and others are to be analysed and reviewed for the organisation to move forward. The effective performance of the analysis function will lead the chess master to the second function; which is Problem Solving: The chess master will solve a lot of the problems analysed in the first place and propose the best approach that will make the company move forward. The result of doing so will enable him take the next step among his functions, which is making Moves: In most cases, the moves proposed will be absolutely new and must be a surprise to the competitor, something that must create competitive advantage for the corporation in the market and attract good market share. If this function is well performed, the chess master now takes Advantage: In doing so, the chess master must put in place moves that will not allow him to lose such vantage position.

In ensuring security for all of the above, the chess master will now perform his last function in the corporation, which is making Contingent Plans: This function is very important in the event that the plan is not new to the market or the cost of implementation comes out of hand or there is an intervening event around the plan, which makes proposed plan impossible to achieve or implement. The contingent plan helps to reduce the likely effects of surprises from the competitors.

In practice, the role of the chess master is apparent in the day to day running of the organisation. Those involved in the chess play in an organisation are the members of management on whose hands the implementation of major policies of the organisation largely depends. This role is all important, such that the chess master must not lose control of the game.

The major problem we come across today is in the fact that most major players do not know that they are playing the role of the chess master. In such situation, it will be difficult to appreciate the five roles above. Today’s chess master simply approaches problems without doing the analysis of why and how the problem occurred. The implication is that even if the problem is solved, the possible cause is not removed.

The problem will naturally reoccur. In such situation, no problem is solved. Analysis of a problem may even reveal underestimation: that there is no problem, that the magnitude of the problem is not as high as believed, or that the solution proposed is incapable of solving the problem. Analysis will show a proper position of the problem. The meaning of this is that there is need for diagnostic review at all times .

It is improper for a doctor who intends to perform a Caesarean operation on a pregnant woman whose baby is making a breech presentation not to diagnose the scan report. If the doctor ignores the scan report and fails to do proper analysis, including medical history, it will amount to double murder of both the baby and the mother.

Everyday in the life of corporations, this kind of murder takes place in hundreds of millions in the decisions that we take without proper analysis done by the chess master We don’t ask proper question as to why, when and how various corporate decisions are taken. Why are we increasing market share or embarking on expansion drive? If we have good reasons, when are we supposed to do these things? Is it now? If we have good reasons, how are we going to do it? What role will technology play before we know how many people to recruit? What are we going to lose if we fail to do the expansion?

The second aircraft can only be added to the existing fleet in an airline business if we ask these basic questions: What value will be added? Will the cash flow support it? In expanding our news paper business, for instance, we must be too clear about the deadline for financial support. Even if we are self sustained and already making profit, what plan do we have in place for technology? With more people reading our papers on the Internet for free, with time (not too long) we will either give out the newspapers for free or we will be forced to be out of market. What is our contingent plan? If we are running a bank, why are we giving out loans? In the event that the customer will not pay back on time, do we have sufficient shareholder fund to make provision?

What if the regulator wants monthly provision? Are we capable of paying from shareholder funds? Is the interest rate realistic to support our decision? It is not that we should not give out loans; it is that the continued existence of our bank depends on the paying back of these loans. If the analysis presents a good account of the problems, the chess master must be concerned about the solution, which is called problem solving in strategy studies. The basic issues that generate some concerns in this area include the nature of solution proffered and the alignment concerned. What is the cost of the solution and how soon should we act? In a conglomerate for instance, is the solution likely going to pull the resources of other companies? If so, is it the right solution to close Trouble Company within the conglomerate? Or wait until the virus spreads to kill others?

The fact that there can be EBOLA virus in humans shows that there are many of such in the life of a corporation and the earlier we move against such virus, the better for us. Our approach must be similar to Nigeria’s commendable approach in fighting Ebola Virus, which means that all hands must be on the deck.

When we must make a move to solve a problem, the move must be completely new in all situations. When Samsung confronted the problem of low market share, they made a new move, to take over the market from Blackberry. The move was new and fast. It hardly gave room for competitive reaction. It was multiple and the competitor (Blackberry) had to offer itself for sale! This is what happens in football matches where those who score goals make very fast moves to intimidate the other side, score more goals in quick succession and frustrate their competitor. Once the move is good, the next thing to do is to take advantage of the success of the move. Sustenance is very important in this regard. The chess master takes advantage of the success of his move very fast, so that the competitor will not catch up with him. There is no joy is staying too long in one’s comfort zone. We move fast in business to sustain our vantage position.

This explains why Dangote will set up more cement factories. One factory cannot produce all the cement! This is also why Jimoh Ibrahim will acquire more companies in different sectors of the economy. To him, what is not acquired yesterday will not be available to be acquired tomorrow.

The seller sells only once! When all is well, we must have a contingent plan to assume that all may not be well. The contingent plan must be capable of some element of surprise. A newspaper that faces multiple litigations for no just reason must have a contingent plan to sustain readership, workers and investments. It is not in the character of the chess master to give up and close down the business, particularly in a country where the same court with equal power can give two different judgements.

The failure of the judiciary is not sufficient reason for the failure of the business. In a country where people over-indulge in the ‘Pull Him Down Syndrome,’ the chess master must not lose sleep but must create a contingent plan in the form of international divestments of investment to other countries, in structured ownership pattern to sustain stability and gain respect. No form of complaint against the system will be sufficient reason for failure. The chess master must be up and running as a strategic driver.

From: http://tectono..com/

Great piece from one of the greatest.