Business Strategy Handbook – 8 Business Leadership Lessons from Chess
We have accepted that Chess imitates life in almost every way.
We play the opening game as kids and young humans, taking our baby steps towards strategic thinking, starting our middle game as career-oriented individuals, moving on to our end game, and hitting the high notes in our lives and careers. Most of the chess strategies imitate how life unfolds for most of us at every turn.
Business is no exception.
We crush our opponents, prepare long-term strategies while keeping in mind our short-term wins and losses. Even if it doesn’t work out, we pick up the pieces and move on to our next board(game) adventure.
Businesses have always been inspired by Chess.
Young TURKS or CEOs, being a pawn in the larger scheme of things, sacrificing a few for the greater good or getting sacrificed, we experience it all as we traverse the tricky lanes of business. Quite often, famous and successful business personalities have drawn a parallel between business strategies and how Chess offered some inspiring business lessons.
Here’s an interesting read on how business leaders have sought and found inspiration in this ancient game of kings. Read Chess and Famous Business Personalities.
What does Chess teach about business?
In many ways, business is like Chess, and Chess returns the favor. Chess teaches us how to attack and defend our turf (read markets), ways to rehash and work on a new strategy, maximize or optimize your diminishing advantage (read returns), build efficient teams that work in cohesion, and how to select the best possible alternative when cornered.
Chess has been around for centuries, guiding thinkers, risk-takers, business people, politicians, and nobility alike, helping them make confident decisions.
Is business similar to playing Chess? Why or Why Not?
But, do you think business is similar to playing Chess?
Different people have varied opinions on this one. Simply put, there are several similarities between chess strategies and business strategies. We live in a fast-paced world where the business strategies of today may not survive tomorrow.
In this dynamic ecosystem, businesses often struggle to achieve the balance between sustainability and growth. All successful businesses around the world work towards a common goal- creating value for all their stakeholders. Chess definitely helps in understanding the business from a thinker’s perspective. Rather than an action-oriented strategy, Chess allows business owners to apply a forward-looking approach and evaluate the odds of their success or failure.
But in certain ways, Chess doesn’t necessarily inspire business strategies in their entirety. Chess legend Bobby Fischer famously proffered that Chess is all about crushing the opponent’s mind and ego. While that may be true for the chess players, a little bit of healthy competition does far better for businesses than an out-and-out monopoly.
Businesses also tend to benefit from keeping their teams in the safe zone and not sacrificing or experimenting with their team structures, hoping to win the game. In that sense, Chess is ruthless and lacks the human element and consideration.
Businesses in real life can not afford to be so at all times.
Important Business Lessons from Chess
Here’s what boardroom honchos can learn from this board game of the kings.
- You are as strong as your weakest link- Your team and its efficiency are most important. The opening game strategy that every chess player is aware of is developing the pieces early to play to their full potential. Business leaders should motivate team members to equip themselves with the latest skill sets, so they are ready to face the newer challenges. A leader is as successful as the leadership roles he creates for his team.
- Remember to think ahead- Planning and forecasting with various scenarios in mind are as crucial in Chess as it is in business. CEOs should have the power of foresight because forewarned is forearmed. Being able to think ahead is a valuable skill for businesses today, and it helps them plan for uncertainties in the future.
- Minimize the losses, optimize the resources- A penny saved is a penny earned for businesses. Wasting time in trial and error and expecting to win the game of Chess is similar. You can’t win a game if you are wasting crucial moves. Similarly, if businesses don’t put their money where their mouths are, they are more likely to end up with botched projects and rising costs. Profits may be a function of sales and volumes, but cutting down on unnecessary expenses minimizes losses and helps strengthen the value of the company.
- Think like your competition, and then beat them to it- If you can foresee what your competitors are thinking for their future, you will soon find your practices redundant. To beat your competitors at their own game, you need to learn to think like them and come up with a game plan.
- Remember not to have just Plan A and B. Work out a Plan C, too! Chess teaches us that there are no right or wrong moves or steps; it’s the timing and what you do when you are under pressure that defines your success. Similarly, in business, if you have plan A, it befits that you have another and then one more, just in case. The plans are not just about how you begin the process but how you bring it to its rightful conclusion. Having more than one ace up your sleeves could be a game-changer for your business.
- It’s not over till it’s over. Chess gives infinite possibilities to win, and so does business. The aim is to keep trying harder and work smarter towards the goal. Chess allows you to expand your thinking and strategizing faculties, including your opponent’s thinking in it, and create a unique platform where you can figure out the best possible way to win the game. Similarly, in businesses, cyclical ups and downs are a given, and one should be prepared for successes and failures in equal measure. Till the last penny drops, there is hope, and many businesses running for decades, even centuries, are a testament to this chess lesson.
- Never fail to analyze your failures and wins – The first rule of getting a 100% assured success is to look at the failures objectively. Game analysis is one of the most important aspects of Chess, wherein both wins and losses are replayed and analyzed to understand what went wrong and what could have been done better. Businesses can benefit from this type of retrospective self-assessment to avoid repeating the same mistakes and creating backup plans should the situation recurs. Read more about Game Analysis here.
- Patience pays, and so does thinking out of the box- Nothing hurts more than an idea implemented before its time has come. Whether business or Chess, this fact holds for either of the situations. Business players have to learn the technique of keeping calm in the eye of the storm and let patience rule the decision-making process. Both business plans and chess strategies are likely to backfire in hostile and unfavorable conditions if not supported by valid reasoning and backup plans.
Chess induces deep thinking and expects players to analyze their choices constantly; chess players have definitely been known to have a more analytical mindset than non-chess players. For modern businesses facing unforeseeable challenges, chess abilities are a valuable skill set to contribute a lot to teams and workforces.
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