What can Sun Tzu teach us about management?

The Art of War is one of the most well-known and widely sold books in the world, yet little was known about its author, Sun Tzu. People has said that he was a Chinese general who lived in the 6th century BC. Some translators dared to call him a victorious general, while others saw him as a philosopher or strategist. Carlos Bassas del Rey has written a historical novel, Invincible (Grijalbo, 2025), which allows us to get closer to the story of Master Sun Tzu for the first time. The publishers asked me to write a closing text for the book—a postscript—connecting Sun Tzu to the world of management. 

Reflecting on the reasons behind the influence of Sun Tzu’s ideas in management, I would highlight his vision of strategy and the role of the leader as someone who analyzes and plans before taking action. For Sun Tzu, war is an art, and generals must prepare thoroughly, much like playing a game of yì—the board game we now know as Go. It is not about superhuman abilities or having a direct line to the Ancestors but rather about technique and preparation. He gained this experience after leading different armies in multiple battles, much like a business consultant who has implemented strategic planning processes in various industries and companies. 

Centuries before us, Sun Tzu summarized the SWOT model in a single phrase

When Master Sun Tzu says, "He who knows the opponent" (analyzing external threats and opportunities) and "knows himself" (identifying internal strengths and weaknesses) "will fight a hundred battles without danger," he summarizes the SWOT model centuries ahead of its time. He highlights the importance of analysis as a prerequisite for defining strategy. Furthermore, if we consider his full statement, he evaluates success based on the level of internal and external analysis: "He who knows the opponent and knows himself will fight a hundred battles and not be in danger; he who does not know the opponent but knows himself will win one battle and lose another; he who neither knows the opponent nor himself will be defeated in every battle." 

Innovation and technology from ancient times

In the opening pages of the book, during what we would now call a selection and hiring process for the role of general, Sun Tzu recognizes that warfare was changing and that combat would never be the same again. He mentions having heard of a new weapon, the crossbow, which would become increasingly used in the future, along with iron replacing bronze in the making of halberds, spears, axes, swords, arrowheads, and armor. This is a clear example of what we now call open innovation. As Henry Chesbrough, the father of open innovation, states, one key principle is acknowledging that the best ideas do not always arise internally. The combination of internal and external ideas is essential for innovation. 

Innovation is not just about brilliant ideas but about turning them into new realities, tools, or products

However, General Sun Tzu’s true success lay in ensuring that the foundries of the Wu kingdom operated at full capacity, producing weapons in time for war. The kingdom was known for the skill of its metalworkers, who began developing new alloys that made their swords, axes, and halberds harder and more resistant by using tin and iron—materials that, although rougher in appearance, were much stronger than bronze. Sun Tzu was fully aware that the army with the best technology would enjoy an invaluable advantage. Innovation is not just about brilliant ideas; it is about turning them into reality—new tools or products. 

Winning without fighting

Perhaps one of Sun Tzu’s most groundbreaking ideas is that the best strategy is to defeat the enemy without waging war. This is surprising coming from a supreme commander hired to engage in warfare. He believed that the best way to win a battle was to do so without human or material losses. When he states that "war is the art of deception," he refers to deceiving the enemy. If the Chu army is superior in numbers, but the Wu army is faster, then a direct confrontation in an open field should be avoided. In one passage of the book, he recalls his father’s words: "A good general must be able to defeat the enemy without fighting…" And Sun Tzu asks himself: How can this be achieved? This is the challenge—the fundamental question in the art of strategy.

Using a maritime analogy, we might ask how to escape a red ocean of blood and find a new blue ocean. INSEAD professors Renée Mauborgne and W. Chan Kim conducted research, and their main finding was that winning companies had innovated in value, creating new industries rather than competing in traditional sectors. They argue that strategy should focus on value innovation, creating new industries by shifting demand and product characteristics. Sun Tzu would surely have appreciated this strategy of seeking blue oceans to win without competing.

As Carlos Bassas del Rey tells us in the book, Sun Tzu chose a remote village, accompanied only by old Fo and old Yang, to write this book over eight cold autumns and nine long springs. Far from the court and the battles. Focused solely on refining and distilling his ideas into essential principles, advice, or recommendations. His challenge was to transform his extensive experience as a general and his wisdom on military strategy into short and concise phrases that could be useful. A legacy that, surprisingly, remains fully relevant in today’s world of management.