Starting a business is hard work. Even harder? Keeping that business afloat. Roughly one-third of businesses fail in their first two years, according to the Small Business Administration. And only half make it to the five-year mark. And then it doesn’t get any easier. There is a long list of once-large, successful companies that lost their way: Polaroid, Studebaker, Bethlehem Steel, Pets.com, Pan Am, Sears, K-Mart and many more.
The reasons for failure can vary: bad economic conditions, regulatory changes, technology shifts, unforeseen competition. In my experience, however, much of an organization’s success (large or small) depends on the individual at helm of the organization. Leadership requires a level of discipline, organization, and long-term thinking that often isn’t taught in schools or universities.
Before becoming an entrepreneur, a tech company CEO, a senior corporate executive and, for the past twenty-plus years, an investment banker and strategic adviser on Wall Street, I spent a decade as an officer in the U.S. Marine Corps. In my experience, organizations that have the best chance to thrive are those led by people who embrace 11 principles that I first encountered as a Marine and have continued to apply since. They work in the boardroom and on Wall Street as much as they do on the battlefield:
Take the long view. Marines as well as the best business leaders know that success starts with defining and communicating clear long-term strategic goals – and then ensuring that all tactics not only support achieving those goals – but also do not divert attention or resources away from them.
Know the enemy. The more you understand the strengths, weaknesses, capabilities and especially the motivations of the people on the other side, the better able you are to craft winning strategies.
Take a stand. Speaking truth to power is not always easy. But it is just as essential in the board room as it is on the battlefield. If you know a better way to achieve the strategic goal – speak up. If you see the organization heading off track – speak up, even if some people don’t want to hear it. It saves a lot of pain later.
Choose your battles. People tend to believe a battle was worth the cost if they win and not worth it if they lose. There is a better way. Before making a move, evaluate your options. Would a change be too costly or risky? What else could you do?
Be the expert. Generalists don’t stand a chance when competing against organizations led by true experts. Be an expert and build a team of experts.
Know yourself. Be brutally honest with yourself about your organization’s strengths, weaknesses and capabilities. Because fooling yourself can lead to catastrophic results.
Control the timing. Marines try hard not to spend too much time on the defensive and they try to avoid fighting battles before they are ready. Winning is not about surprise – it’s about control.
Negotiate from the high ground. In business, as in the Marines, the high ground is both tactical and moral. It’s about maximizing leverage and also about doing the right things, for the right reasons.
Get global. It’s an interconnected world. When you look beyond geographic borders, you open up all kinds of possibilities.
Trust and verify. Without some trust there will be no business deals. But good business leaders run the figures, carefully research deals and business partners and double check their intuition.
Be Disciplined. Good strategies are built on solid planning, proven processes, disciplined execution, and leadership. Lucky breaks are helpful, but no Marine would rely on luck. We make our own.
Of course, you don’t have to be a Marine to learn and live by these principles. I’ve written a book, The Marine Corps Way to Win on Wall Street, which details each principle and provides examples for how they apply to business life. It’s meant to serve as a helpful guide for both future and current entrepreneurs and business leaders, giving them the tools they need to build a thriving business that lasts. For more information, click here.
