Competition and Production
In our lives, we must be both productive and competitive. Production and competition work together. Our productive skills make the most of the resources that we control. Our competitive skills determine the perceived value of what we produce in the outside world that we cannot control. While internal production requires planning and other operations skills, external strategy requires better decision-making using adaptive strategy to leverage the opportunities in the dynamics marketplace.
Complementary But Opposite Skill Sets
2,500 years ago, Sun Tzu described these two opposite but complementary parts of life as the realms of the nation and the army. The nation, run by the ruler and his administrators, was the productive half of the equation. The army, run by a general and his commanders, was its competitive counterpart. Survival depends on both components working together, understanding each other's role, and realize that they each work under very different rules. Managing production and internal operations is very different than decisions about competition and external maneuvers.
The secret is knowing when to use the methods of production (linear thinking, process planning, problems solving by division) and when to use the methods of competition (adaptive thinking, expert decision-making, and problems solving by innovation). We go into this in more detail in discussing our training, but the chart below offers a quick summary of the differences
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The Critical Differences |
|
| Competition | Production |
| Exploring and experimenting | Designing and organizing |
| Adaptive thinking | Linear thinking. |
| Networked relationships | Hierarchical structure |
| External, chaotic environments | Internal, controlled environments |
| People competing | People cooperating |
| Most people making key decisions | Most people following procedures |
| Anonymous, unattained resources | Known, available resources |
| Event-based responses | Predetermined steps |
| Factors details into larger picture | Breaks processes into finer details |
| Unique, custom solutions | Duplicate, standard products |
| Adjusts to environment as a whole | Controls part of environment |
| General improvement in position | Well-specified end result |
Creating Resources for Each Other
Productive and competitive methods create the resources for each other in a constant cycle. The better our competitive skills, the more resources we capture to use productively. The better our production, the more resource we produce for use in external competition. Competition and production are closely tied to each other, but they require different skill sets. In the science of strategy, they are defined as "complementary opposites." Both are necessary. They work together. But you must understand how they are different.
The problem in recent decades is that our knowledge of production and training in linear thinking have greatly overshadowed our competitive skills and we receive. Fortunately, there is a growing interest in the types of strategic skills that people need on the front lines of competition. Fortunately, we have the classical strategy of Sun Tzu to guide us in building our competitive perspective and sharpening our decision-making reflexes.