Complex Systems in Corporate Warfare

"Physicists like to think that all you have to do is say, these are the conditions, now what happens next?"
—Richard P. Feynman

The flow of events in corporate warfare is uniquely shaped by the specifics of every situation…the course of warfare is never entirely predictable.

The entrance of complex systems analysis into Corporate Warfare:

• Inherent complexity theory and nonlinear systems theory
• "Butterfly Effect": "a butterfly stirring the air today in Peking can transform storm systems next month in New York."

Complexity Theory: Used in analyzing systems in which there are numerous unknown variables, such that it is used in calculating or developing algorithm (e.g. processes) to define what those variables are, or to otherwise assign “nice” boundaries, contexts, or operating parameters to.

Nonlinear Systems Theory: The theory that objects, situations, markets, industries, or other events or systems appear different when viewed from different angles or perspectives. It can also be defined as the simple departure from linear—that is, step-by-step procedures—involved in events and making decisions surrounding their further development and outcome.

Most market phenomena are generally nonlinear in nature.

• Financial Markets (nonlinear adaptive evolutionary systems)
• Pricing strategies for market segments (correlated multidimensional type)
• Production Possibilities Frontier, or PPF (nonlinear tendencies)

Clauswitz on a Decisive-Force Victory:

“Events [of Corporate Warfare] are proof that success is not due simply to general causes. Particular factors can often be decisive—details known only to those who were on the spot. There can also be moral factors which never come to light; while issues can be decided by chances and incidents so minute as to figure in histories simply as anecdotes.”

Interpretation & Analysis:

• Victory is often decided on the tactical scale, and not on the strategic
• Requires proper training of supervisory and middle-level managers
• Psychological/Morals-based
• The “subjective art” to corporate warfare; basing maneuvers on principle
• Victory is detail-oriented
• The most true contest in corporate warfare is one that occurs between near-equals
• In struggles between opponents markedly unequal in terms of resources available, general factors tend to be (but are not necessarily) more decisive
• The greatest familiarity with the most correct theory does not permit the decision-maker to skip the details.

The Levels of the Corporate Warfare Force Continuum

Three general classifications herein:

1. Primordial

• The people involved begin to exhibit “blind natural force,” or intentionally subjecting you or your business unit to hatred or hostility

2. Probability

• The manager or collective business unit involved utilize chance, probability, and creative spirit

3. Subordination

• As an instrument of corporate policy, originating from senior management,

Although, let it be stated that raw strength is not to be despised in exclusive favor of clever stratagems:

"The maximum use of force is in no way incompatible with the simultaneous use of the intellect. If one side uses force without reluctance, undeterred by the upset to both sides which it involves, while the other side refrains, the first will gain the upper hand."

Therefore, one should not hesitate. Do not forget that there is no substitute for sound planning.

One may take from this, also, that it is alright not to go into a corporate battle with the utmost resources, human and otherwise, available to them. It is not necessary that the victor would necessarily be the side with the most employees with which to fight and win the battles; but that there is no excuse for going into a corporate campaign with less than the maximum available power.