Chess is a great metaphor for business. Success in business and Chess are both determined by the strength of your strategy.

I used to believe that great chess players were good because they were able to strategize by thinking far into the future. I had heard from many people that it was important to think 10 or 15 moves ahead. The more I play the more I realize, that’s just not true. Chess master and coach Bruce Pandolfini argues that the best chess players look only as far into the future as they need to, and that usually means thinking just a few moves ahead. He teaches his students that thinking too far ahead is a waste of time because the information is uncertain and the situation is ambiguous. Chess, says Pandolfini, is about controlling the situation at hand. “You want to determine your own future. You certainly don’t want your opponent to determine it for you. For that, you need clarity, not clairvoyance.”

It is not too difficult to apply this kind of thinking to business. In fact, it makes perfect sense. Strategic thinking is necessary, but if we get too far away from what is happening right now in our business, we lose connection with the current situation. Our plans must be built in the moment but must, at the same time, keep in view the opportunities and threats that the future may bring.

Author Bob Rice has argued that business is like chess. He writes, however, that it is not the pieces that are most critical for the strategies, but the board itself. Specifically, he points to the spaces on the board and the patterns of control that chess masters and business leaders employ. Where chess masters seek to control angles, rows, colors, or even a particular space on the board for strategic advantage; business masters seek to control markets and opportunities. In his view, the pieces in chess are best represented by products in business and so, become secondary to the market.

Rice is on the right track, but in fact, a better analogy is available that strengthens his argument. The pieces in chess are the keys to gaining, holding, and maintaining positional advantage. In business this is not about products or services but rather is about the elements of the business that must each be developed and employed to create and maintain the business advantage in any market.

At Estrada Strategies we developed systems that make this whole business point of view possible. Using the board and each of the pieces of the chess set, we have built a business systems model that allows our clients to create and implement effective strategies to win in business. The board and each piece represent a different discipline of business. As you read through these brief descriptions, imagine how you can use these pieces to build your strategy for success.

Keep in mind that all the pieces on the chess board are related, and while some are more powerful than others, they depend on each other for survival. The Core Disciplines of Business have a similar structure. The most important aspect is often the most vulnerable and the seemingly insignificant has far more use and value than most people realize.

CULTURE-THE CHESS BOARD

One indicator of chess mastery is how the player views the board. A novice player and those that are less skilled will often focus on just one spot or one piece. The chess master knows that chess is a game that requires the player to see the whole board at once, and not just the individual pieces as the play develops. So too in business, the business owner who can see the entire business and all its elements in relationship to one another has an advantage over the typical owner who finds herself focused on the one or two things that are most pressing or most visible at the moment.

The board defines the relationships of the pieces to one another. It is the context in which each move is made and the consequences are determined. The business owner or chess master who first learns to determine the course of these relational issues will be most likely to emerge from the contest intact and victorious. In the same way, the player who allows his opponent to define the relationship of the pieces to one another is headed for certain trouble if not a quick defeat. The CEO Rule is – Every Business Has A Culture. The CEO’s job is to define and build that culture.

PAWN-ADMINISTRATION

The pawn, while seemingly dispensable, is the foundation of a chess team. A hole in the strategy for using your pawns, like a hole in your administrative systems, is a potential game losing weakness.

KNIGHT-INFORMATION TECHNOLOGY

The knight, when maneuvered to the center of the board has control of eight points on the board at once. Information technology, like the knight, should be at the center of all business as a communications and tracking hub.

BISHOP-GROWTH

Every business must have a strategy that allows for swift action to take advantage of opportunities. As the Pawns and Knights move to remove obstacles or block attacks, the Bishops become powerful nd swift tools to move quickly and accomplish the growth the company needs.

ROOK-CLIENT RETENTION

The CEO Rule says, “Client Retention is Growth.” The rook represents the systems that will ensure the highest possible client retention. Like the Bishop, the Rook moves swiftly from end to end and from top to bottom covering the entire board. It is the perfect companion to the Bishop who has covered the same board from corner to corner so that every position is touched by the systems of growth and customer retention.

QUEEN-OPERATIONS

The queen has the power of both the rook and the bishop, which makes her the most powerful piece on the chess board. In business, when all disciplines are working together, operations should run like a well-oiled machine and never be in a position of vulnerability. If a strong operations plan is the last discipline standing after a big business hit, it is still possible to recover and win the game.

KING-FINANCE

The king is the most important and the most vulnerable piece on the chessboard. He is completely dependant on the protection of the other pieces. There is absolutely no way a strong financial foundation can be constructed without the other disciplines firmly in place.

Here are some basic rules to help you get started on your quest for victory:

1. Never play the first move that comes into your head – keep that move in mind and then look for a better move – Good thinking is a matter of making comparisons.

2. Remember, Genuine victory takes time. If you win quickly in chess, it does not mean you are great, it means that your opponent was incompetent. Trying to win quickly means hoping that you face an incompetent opponent. We don’t teach people to base their business on hope. We teach them to learn how to control the elements of their business and so build for success.

3. Don’t fall into the trap of doing the usual. Playing chess at the highest levels can produce a sort of mechanical or “programmed” response kind of strategy. Opening with the same move, responding in exactly the same way to certain attacks, and so on. These players are playing by the rules, but they are also setting themselves up for defeat. If someone comes along with a new approach to the game or a new response to a particular move, the programmed player is unable to respond effectively. The most successful masters are those that can go beyond the rules to create new pathways to success.

4. Always keep your purpose in mind. Positional chess is a strategic approach that seeks to win by gaining a series of small advantages that in the end force the opponent to give up something of value or place the player in an unassailable position of strength. Positional chess teaches that we are responsible for our actions. Every move must have a purpose.

Business is like chess. If you want to succeed, define your objectives clearly, plan ahead to accomplish them, understand and use every tool and resource to its full potential, and know when to advance and when to retreat to ensure your long term success. Plan the strategy, then make your move.

Kevin Kragenbrink is the owner and head business coach at Estrada Strategies, Knoxville. He is also host of Real Business, a weekly radio broadcast providing answers to questions asked by business owners. Listen live on the web at http://www.wnoxnewstalk.com each Saturday at 6:00 p.m. EST. You can hear Dr. Kragenbrink live in East Tennessee on WNOX 100.3.

Learn more about Dr. Kragenbrink and Business Coaching services available from Estrada Strategies by visiting http://www.estradastrategies.com/knoxville

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