From Battlefield to Boardroom Professor Andrew Kakabadse Steve Macaulay Hello, I’m Steve Macaulay and I am interviewing Professor Andrew Kakabadse about a book that he has co-authored called From Battlefield to Boardroom. Now Andrew this is the world of military, is there anything in the military that we can possibly learn today because the old leadership style, command and control surely isn’t relative today in business? Andrew Kakabadse One of the most interesting things is that we have been learning from the military for hundreds of years. After the Second World War there was an interesting consulting company in Britain known as Urwick Orr, hardly anybody remembers Urwick Orr, most people remember McKinseys but Urwick Orr controlled the market and they were the ones that introduced the old functional, divisional and product structures which have now been taken over by the matrices, where did they come from? The military. The matrix structures that we have now where did they come from? The military and NASA in terms of getting the supply chain together for the space programme. It was based on military lines. So the command and control of the military is actually just warfare. The military is a massive infrastructure that deals with soldiers, property, outsourcing, personnel, career development, and it is probably one of the biggest property owners in the UK so when you are talking about such a spread of interests and even in warfare the military has been useful in diplomatic purposes the military has been used for peace. Most of our innovations have come from the military and at least we should do, we should look at what we are taking from the military when we don’t know we are taking it and see whether it has value and what we are finding is it does have value. Steve Macaulay Now one of the aspects of the book that comes out very clearly is the notion of what’s called values based leadership. Now can you describe how that applies in the military and how we can draw links with business. Andrew Kakabadse Very simple, values based leadership fundamentally asks the questions, what values are your leaders promoting? And do they live those values? And that is the fundamental question of business today. Now the reason the military created that is because they have had to both deal with command, control and community development, so if you look at the two sets of values they are in total contradiction to each other and what we are finding in business today is you may be concerned with costs, profits, short term gain, but then we have to look after people, career development, long term sustainable investment, again two completely contrasting objectives. So the values based leadership begs the questions and unless you have embedded a series of values in your organisation and your leaders behave them what chance have you of surviving and sustaining for the long term. © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 1 Steve Macaulay Now one of the interesting things that I found reading the book was instead of a kind of very clear chain of command, kind of orders from the top and they are getting passed down in a very clear cut kind of way, the modern military is looking at empowered organisations with a fair degree of flexibility to respond in the field and so on, now are there links there with business? Andrew Kakabadse Massive links and actually this idea of empowerment and getting yourself close to the point of conflict for the military or the point of the customer for business but it is where the engagement needs to take place is at least two hundred years old. It was Napoleon who introduced the philosophy of mission command and the Prussians took that on board when they were continuously being defeated by Napoleon and then the Prussians used mission command which is, we have a mission, but the command structure is to enable everybody to achieve that mission without telling them. It was the great Prussian general Clausewitz which the British military now use as their bible who fundamentally said, as soon as you meet the enemy every plan you’ve made falls apart, so unless you have a leaders and a leadership group that has a set of values that people believe in that will help you survive unexpected contingencies your command and control structures will not work. What are we finding in business, exactly the same. Where business survives is where you have one very simple business principle and that is costs. So at the mature end of the market where fundamentally your only competitive advantage is price and what you are doing is continuously taking costs out of the business until you can trade no more so you sold and somebody else really exercises their costs based synergies on you. All other businesses have to deal with the cost issue, the customer issue providing shareholder value, providing investment, looking after the long term and also making sure that your quarterly returns are such that your investors still have confidence in you. So ironically business has been using a mission command approach but didn’t know it and the whole purpose of the book was to fundamentally say, do you realise that you are doing this, and secondly if you don’t what more can you learn that will help you get better. © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 2 Steve Macaulay Now I’d like to explore the issue of teamwork. One of the things that came out in the book was how teamwork is very, very tightly controlled, you know you have got to be in a position where everybody will help each other, you know where everybody can kind of second guess each other and so on. Now in business there’s lots of talk about teamwork but does that really happen to the same extent? Andrew Kakabadse You will find in the military also a lot of the teamwork that is talked about doesn’t occur either so likewise in business it doesn’t, but the principle is that if you really are going to engage and engage well and we don’t have to talk about fighting here the teamwork could be about developing communities, we could be in Kosovo protecting communities, we could be undertaking a massive sales campaign where we are addressing a number of community interests. If you don’t have channels of communication across the team members, if you don’t have a sharing of information, if you don’t have a sense of humility that you are constantly going to learn from your colleagues then the customer suffers, the community suffers, and ultimately as a business you suffer. So teamwork as a principle is vital, the difference is, and this is the bit that the military I believe has not fully addressed, is that there is a difference between teamwork more lower down the organisation and teamwork at the top. Teamwork lower down is exactly as you said Steve it’s cooperation, it’s sharing, it’s working together, teamwork at the top is about making decisions about resources, so there the issue is not sharing, the issue is advocacy and ironically the challenges of advocacy and some of the dissention that takes place in terms of advocacy this is where the military could learn from business because business has been more advanced on how you handle high performing, often conflict oriented, stakeholder driven top teams and the military has more of this simplistic model of sharing at the top which doesn’t take place so there are bits that the military can learn from business and that is at the strategy level. Steve Macaulay I’d like to pick also the issue about commitment, now it seems to me that in the military you have got a very high degree of commitment, I mean there’s people’s lives at stake here, now you are never going to get that kind of commitment in an organisation surely. Andrew Kakabadse That’s true because you have a more immediate concern in the military and it’s also a very particular sort of culture and at the end of the day we only have one Ministry of Defence and we only have one army and we have a whole number of different corporations all competing with each other often across the same space. Of course you can’t have that, but what you do have in business in terms of commitment is how do we work if we don’t have commitment, you still have the same questions they are just more difficult to address, so in business the issue is how do you work when an organisation is actually cutting costs, it’s talking about a long term investment they don’t mean it, it’s also talking about career development © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 3 and they don’t mean it and they don’t invest in people but somehow that single manager running a team, running a department, running a whole division, who is not responsible personally for having created the dissention in the organisation they still have to create a culture of commitment so that the leadership they offer will benefit the people that follow the person, the person themselves and the business. Now ironically today with the cuts in the MOD it’s exactly the same situation. How do you build commitment when so many soldiers are being made redundant as you have seen, costs are being cut, services are being outsourced, even catering has been outsourced, so one part of just feeding an army is no longer an army responsibility, it’s now driven by targets and this is a bit of a joke. I’ve been to one particular mess where the number of sausages you have on your plate are counted and you can’t have more than two sausages, so imagine you have just been in some conflict oriented situation and you walk into the dining room and one says “oi mate you can’t have more than two sausages because they cost too much” probably that more than anything else is going to destroy commitment. The challenge today is the same we are still in a cost driven environment we have to achieve objectives those objectives are of higher order and we are constantly dealing with strains, so this point I believe both the military and business can learn from each other. Steve Macaulay So if you were to leave a clear message from this book then Andrew what would it be? Andrew Kakabadse It’s mission command. Where today in such complexity that to think you can command something is impossible, you have to work on the mission and the purpose and the values behind that and how the leadership is going to lead those values and behave those values so at least the command structure can work and mission command by its very nature says, no matter what you prepare for if you don’t make your organisation and your people resilient when you do meet the enemy the whole planning is going to fall apart. So it’s the two words, mission and command and today we have learned that you have got to bring the two words together. Steve Macaulay Andrew, thank you very much. © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 4