#4 Heaven

Sun Tzu’s “heaven” is about the physical climate, i.e. winter’s cold and summer’s heat. Those who fail to take weather into consideration, may suffer Napoleon Bonaparte’s bitter lesson as his army was annihilated in the bitterly cold Russian winter.

Abstract climates

For contemporary business and management, we should take an abstract view to go beyond physical climate, e.g. economic, political, social and most crucial, organizational or corporate climate.

In recent years, after Covid-19 killed at least seven million people globally, political climate heated up with Russia warring against Ukraine. Even though both USA and China had economic woes, instead of cooperating to help each other, the world’s two largest economies are bogged down in a US-initiated trade war. In the Middle East, anti-Israel militant factions had also stirred up stormy weather, made worse as Iran also joined the fray. As cargo ships had moved away from the Suez Canal to avoid terrorist attacks in the Red Sea, freight costs increased. The world thus faces a host of uncertainties ranging from rising costs, unemployment, currency fluctuations, inflation and deflation to more crimes. Every aspect of “heaven” is adversely affected.

Beware danger, seek opportunity

However, in any crisis, dismal as it may appear, those who have a good grasp of the Art of War will find opportunities. This

is why the Chinese word for “crisis” is composed of two characters – “danger” and “opportunity”.

As Toray-owned Penfabric Sdn Bhd’s former Managing Director, H.S.Teh once told me, “An economic downturn can be regarded as an opportunity because we need not have to do our competitors in since the weaker players will do themselves in. What’s important is whether we have all the while been consistently strengthening ourselves.”

Investment guru Warren Buffet often said that a bad economic climate offers investment opportunities as stocks of quality companies can be bought at a discount. These companies have strong fundamentals to withstand the storm. Those who sell are either panic-stricken by the economic downturn or ignorant of the balance sheets.

Organizational climate

In “The Mind of the Strategist”, Kenichi Ohmae wrote that an organization is about the people in it. Thus, quality companies have quality people who are passionate and driven by their moral law (the first fundamental factor) to out-perform the competition. Many studies also found that employees of organizations with warm, cohesive, and cheerful climate, tend to be more productive and creative than those working in organizations whose climate is cold, fragmented, and gloomy.

For over two decades, I had “suntzunized” thousands of managers and engineers of Intel. I found most of them to be warm, cohesive and cheerful. They voiced their opinions, asked questions and laughed freely without restraint. Their behavior

speaks volumes for the corporation. Intel’s conducive organization climate does not come by chance. It is systematically developed as the company believe in investing in its people.

My greatest impression from interacting with Intel’s leaders, like Dato’ Seri Wong Siew Hai, Robin Martin, Lau Chze Tat, and H’ng Gaik Boon, is their balanced approach towards corporate goals and their staff development. Even in an economic

downturn, Intel would still send their staff for courses or organize in-house seminars for them.

Small things matter in cultivating organization climate. After Chze Tat set up the Intel’s plant in Vietnam, he had me to “suntzunize” his managers and engineers as he wanted to develop their attitude and skills. While there, my “pupils” took pride to show me their well-run cafeteria-style canteen where other than the Vietnamese coffee from a local supplier, all beverages are free. Each employee also got a monthly meal subsidy of 300,000 Dong (about RM50).

So how is the organization climate like in your corporation? Is it heaven or hell?