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6 T H E A RT O F E X P E RT I N T U I T I O N
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arts today study expert intuition through Zen classics like The Book of Five Rings by Miyamoto Musashi, a great samurai of the Middle Ages.5 In war, in science, and in Eastern and Western philosophy, expert intuition is the art of what works. You do what you can, not what you want to, based on what worked in the past. And the past includes what happened to you 5 minutes ago as well as ancient truths. Your expertise comes from outside, not inside. You learn it from others. The more you learn, the deeper and faster your intuition will be, and the shorter your path to success. We see this in von Clausewitz. He equates experience with military history. Thus, experience is not just your experience, but all of human experience. A prime example is Napoleon himself. He was only 26 years old when he won his first campaign. It took place in northern Italy against a superior Italian and Austrian army. Napoleon had never fought before in open-field warfare, yet he won a dozen battles without losing one. How did Napoleon do it Through study. He tells us himself:
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The principles of warfare are those that guided the great captains whose high deeds history has transmitted to us Alexander, Hannibal, Caesar, Gustavus Adolphus, Turenne, Eugene of Savoy, Frederick the Great. . . . The history of their eighty-three campaigns would constitute a complete treatise on the art of war.6
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Eighty-three campaigns involve hundreds of battles. Napoleon studied these battles at military school. Then, when he went into battle himself, he drew ideas from those battles like arrows from a quiver. In his first campaign, he especially drew from Frederick the Great of Prussia. Each battle that Napoleon fought added more to his expertise. But its original source was books. And so we answer an age-old question: Can you teach intuition The answer is yes, through study, practice, and example. This is the timeless truth of success. As we turn to business, our principal subject, we see that the same truth applies there, too. Business is just another arena of human achievement, like war or science or Japanese crafts, where the coup d oeil of an expert ignites the spark of the art of what works.
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Introduction
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In business strategy, our study of the art of what works begins with Joseph Schumpeter, an Austrian economist in the early twentieth century. Schumpeter said that entrepreneurs create economic growth not the other way around. That is, entrepreneurs do not just take advantage of what economic growth produces. They see opportunities that no one else sees and turn them into economic growth. In a key essay, The Creative Response in Economic History, Schumpeter cites personal intuition and force otherwise known as coup d oeil and resolution as the key to successful entrepreneurship.7 In The Mind of the Strategist, by Kenichi Ohmae, coup d oeil and resolution show up again as insight and a consequent drive for achievement. 8 In The Growth of Firms in Japan, Ryuei Shimizu calls them a sixth sense and spiritual courage. 9 Ohmae and Shimizu cite these elements as the key to Japan s tremendous business success in the decades after World War II. And in The Origin and Evolution of New Businesses, Amar Bhid shows that successful entrepreneurs don t dream up ideas on their own; they take them from other businesses, like Napoleon drawing on the actions of great generals before him.10 Another study of business success, Built to Last, by James Collins and Jerry Porras, also features the art of what works.11 It shows us how the most profitable American companies through the twentieth century changed strategy time and again when a coup d oeil showed them the path to success. The same thing can be seen in Strategy and Structure, a classic study by Alfred Chandler of four successful companies Dupont, Sears, General Motors, and Standard Oil that managed growth by changing their structure.12 The art of what works showed them how. In addition to these scholarly sources, we find accounts of the art of what works in the success stories of individual companies, including Microsoft, McDonald s, Apple, Nokia, and many others. And General Electric spread the art of what works throughout its many companies as the GE Way. From business newspapers and magazines, you can pick out current examples every day. Yet the art of what works remains a secret. It is there, but most people fail to see it.Why Because other explanations get in the way.
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