13. Train in Peacetime, Fight in Wartime

The skillful strategist defeats the enemy without any fighting -- Sun Tzu

For a soldier in the thick of battle, it's too late to train or stop to figure things out. The soldier's responses in battle are drilled over and over again in peacetime to be automatic - it's lifesaving.

This military principle applies directly to business strategy. The same discipline is needed in your business 'conflict zones' - those places where supply is constrained and you have to make supply allocation decisions, when conflict arises between overlapping sales teams fighting for the same customer, or customers arbitraging your products in the marketplace.

Businesses scramble too frequently to make critical decisions during crises that could have, should have been sorted months earlier when heads were cool and stakes were manageable.

Businesses should take a leaf out of military training: prepare thoroughly in peacetime so you're ready when war comes. When shit goes down and good sense goes out the door, that's when good preparation saves you - because you already have a plan for conflict.

Example: Crisis By Committee

A major supplier breaks down. Materials delayed by weeks, production severely impacted. Within hours, all your senior managers are piling in with thoughts by phone, email, and in person - about who gets what from limited inventory.

This is not the time to start debating customer priorities.

Usually, the loudest voice wins the argument, but the loudest voice isn't necessarily the right one. The tragedy? This discussion should have been resolved months ago, in peacetime, when there was clarity of thought about what is truly important.

Peacetime Preparation #1: Know Your Priorities

Smart businesses don't wing it when prioritising customers during supply crises. They've already done the hard work:

• ABC customer classification based on strategic value, not just revenue

• ABC product classification considering margin and competitive advantage

• Clear escalation criteria for breaking your own rules

When a crisis hits, you execute the plan. No debates, no noise - just executing the plan.

Peacetime Preparation #2: Refresh Your Route-to-Market Strategy

Another example: A key customer starts demanding premium service at discount pricing, perhaps triggered by the fact that you have proven the ability to produce both premium and discount products through your differentiated routes-to-market.

This conflict was predictable. If you haven't gamed out market analysis, channel arbitrage and pricing pressure, you're training during wartime.

The peacetime approach? Regular strategic market assessments covering:

• Which customers get which service levels at which price points

• Clear boundaries for sales negotiations

• Escalation paths for exceptions

• Trigger points for revising your market segmentation

Refresh this quarterly. Markets move too fast for annual reviews. It doesn't need to take too long - once you have the groundwork understanding in place, the quarterly refresh becomes easy, enjoyable even.

Most Wars are Won Before They Start

These two examples highlight a universal business truth: peacetime preparation feels less urgent than daily battles. But seasoned generals know that armies that train hard in peacetime rarely face the wars that destroy their competitors.

Most businesses prefer the drama of wartime crisis management to the discipline of peacetime preparation. War rooms feel important. Strategic planning feels... less urgent.

But here's what few recognise: many of the urgent battles consuming your time could have been prevented with better peacetime training. Businesses that drill scenarios and model contingencies have well-considered battle plans ready to deploy, avoiding the internal conflict that tears teams apart during a crisis.

The Last Word

The best soldiers train extensively and never see combat. The best management teams prepare thoroughly and rarely face true crises.

My challenge: Pick one scenario that would seriously disrupt your business. Spend this month developing your response plan. Now, while you can think clearly. Then bake it into your Integrated Business Planning (IBP) process.

Train in peacetime. Your future self will thank you.

What scenarios keep you awake at night? Have you prepared for them, or are you hoping they never happen?

Visit me at www.planninglab.co.nz

#IBP #S&OP #BusinessPlanning #CrisisManagement #StrategicPlanning