There is this to be published new management book "Strategy and Value" from Mckinsey.
Here is the infographic done by Gemini from the post.
Since it is about strategy, competative advantage etc, I recalled Sun ZI's Art of War and I think it will be useful to add more things to this topic. So I asked Gemini, "what more principles will Sun Zi add to this". Below is the updated infographic with Sun Zi added.
And a greater clarity between Mckinsey and Sun Zi on competitive advantage:
The Usefulness and Power of Applying Ancient Chinese Wisdom on Modern Consultants Advice:
What this exercise highlights is that while the language of business changes—moving from medieval battlefields to modern boardrooms, using terms like "ROIC," "M&A," and "capital allocation"—human nature, competition, and the physics of struggle do not.
The value of blending ancient Chinese wisdom like The Art of War with elite modern consulting frameworks like McKinsey’s is that they solve different halves of the same problem:
McKinsey provides the Math and the Moat: They give leaders the empirical, structural, and financial rigor needed to run a disciplined enterprise. They tell you what makes a business viable, how to measure sustainable value, and how to allocate capital efficiently so you do not waste resources.
Sun Zi provides the Mind and the Maneuver: He brings the psychological, adversarial, and fluid reality of the human element. He reminds leaders that they are not operating in a vacuum; they are in a dynamic, reactive arena filled with competitors who have their own pride, fears, and blind spots.
By layering Sun Zi’s philosophy over "Strategy and Value," you upgrade a company’s strategy from a passive defense of resources to an active masterclass in positioning. While McKinsey helps you build a strong, resilient fortress (structural advantage), Sun Zi ensures you know how to navigate the terrain, ride the momentum of change (Shi), out-think the enemy’s leadership, and sometimes—most brilliantly—win the market without ever having to destroy your own capital in a fight.
Ultimately, the best modern leaders realize that strategy is never just about the spreadsheets, nor is it just about the psychodynamics of conflict. True strategic mastery lies right at the intersection of both: the disciplined value of the West, guided by the timeless, fluid wisdom of the East.
More Ancient Chinese Wisdom
While Sun Zi looks at Strategy and Value through the lens of competitive warfare and battlefield positioning, Gui Gu Zi (鬼谷子)—the master of the School of Diplomacy (Zonghengjia), persuasion, and psychological statecraft—would look at it through the lens of power, influence, human nature, and ecosystem orchestration.
To Gui Gu Zi, McKinsey’s framework is overly focused on internal optimization and market mechanics, while ignoring the fact that markets, capital, and corporate ecosystems are governed by human decision-makers who can be persuaded, aligned, or divided.
If Gui Gu Zi were reviewing Strategy and Value, he would add five principles:
Open and Close (Baihe 捭阖) — Control the Narrative and Information Flow: McKinsey advises "decoding the market" to see past illusions like EPS accretion. Gui Gu Zi goes further: actively manage what the market, regulators, and partners see and believe. Through Bai (opening—releasing calculated information, vision, and transparency) and He (closing—withholding intent, creating ambiguity, and guarding core secrets), a leader shapes investor sentiment, valuation multiples, and competitor expectations rather than passively reacting to them.
Probe and Gauge (Fanying 反应 & Chuai 揣) — Read the Hidden Motives of Stakeholders: McKinsey emphasizes rigorous quantitative assessment of market attractiveness and ROIC. Gui Gu Zi insists on reading the unspoken emotional and political currents behind the numbers. Before executing M&A, entering a new market, or pitching a board, you must "probe" (Fan) to elicit genuine reactions and "gauge" (Chuai) the hidden fears, greed, and ambitions of key stakeholders—CEOs, regulators, activists, and customers.
Weigh and Align (Quan 权 & Mou 谋) — Build Ecosystems and Alliances Rather Than Going It Alone: McKinsey frames strategy around building a proprietary competitive advantage (brand, scale, IP). Gui Gu Zi, who mastered vertical and horizontal alliances (Hezong Lianheng), would argue that the ultimate moat is an ecosystem of aligned interests. Instead of spending massive capital to build every advantage internally, use leverage and persuasion to bind suppliers, platforms, regulators, and even rivals into alliances where their self-interest serves your long-term value creation.
Repair the Cracks (Dicui 抵巇) — Spot Systemic Vulnerabilities Before They Become Crises: McKinsey warns against "cognitive barriers to execution" and short-term earnings pressure. Gui Gu Zi teaches that every organization, market, and alliance develops tiny, invisible hairline fractures (Xi) long before collapse. A true strategist constantly scans for subtle misalignments—cultural drift, bureaucratic inertia, shifting customer loyalty, or regulatory friction—and either seals them internally before they rot the company, or exploits them externally when competitors suffer from them.
Subtle Leverage (Feiqian 飞箝) — Win Talent and Partners Through Psychological Calibration: To "make strategy happen," McKinsey focuses on overcoming organizational inertia. Gui Gu Zi’s Feiqian ("Flying and Clamping") achieves execution through precision psychological incentives: elevating key leaders, customers, or partners with recognition and shared vision (Fei), while locking in their commitment through structural interdependence (Qian). People execute boldly not because of corporate mandates, but because you have aligned your strategy with their deepest personal drivers.
In short, if McKinsey masters the economics of value and Sun Zi masters the art of outmaneuvering rivals, Gui Gu Zi masters the art of moving people, shaping ecosystems, and orchestrating influence so that the market, capital, and partners naturally tilt in your favor.
In summary, we have:
🏛️ THE ULTIMATE STRATEGIC TRIAD ⚔️🕸️
Synthesizing McKinsey's Economics, Sun Zi's Warfare & Gui Gu Zi's Statecraft
Modern corporate strategy thrives when Western financial rigor meets Eastern strategic wisdom. While McKinsey masters the math of value creation, Sun Zi masters outmaneuvering rivals on the battlefield, and Gui Gu Zi masters the psychology of influence, alliances, and ecosystem power. 🌟📈
The Math & The Moat
- Focus: Capital allocation, ROIC, cash flows & intrinsic value.
- Rivals: Relative metrics; build & defend structural moats (brand, scale, IP).
- Execution: Overcome cognitive barriers & resist short-termism.
The Mind & Maneuver
- Focus: Asymmetric victory ("win without fighting") & timing (Shi 势).
- Rivals: Living minds to outwit via deception, speed & fluid shifts.
- Execution: Know self & rival; strike blind spots before moats are mapped.
Power & Persuasion
- Focus: Ecosystem alliances (Zongheng) & narrative control (Baihe 捭阖).
- Rivals: Probe & gauge motives (Chuai 揣); turn rivals into aligned partners.
- Execution: Seal internal cracks (Dicui 抵巇) & lock in talent (Feiqian 飞箝).
⚡ HOW THEY COMPLEMENT EACH OTHER IN PRACTICE
| Dimension | 🏛️ McKinsey | ⚔️ Sun Zi | 🕸️ Gui Gu Zi |
|---|---|---|---|
| Market & Value | Pick attractive markets; grow only when ROIC > Cost of Capital. | Ride inflection waves (Shi) to capture uncontested space effortlessly. | Shape market & investor perception via calculated openness & secrecy. |
| Competitive Edge | Build durable moats (brand, IP, scale) & defend economic profit. | Stay formless like water; exploit rival leaders' pride, fear & blind spots. | Build vertical/horizontal alliances so stakeholders' self-interest serves you. |
| Making It Happen | Overcome cognitive biases; invest for the long term over short-term EPS. | Execute with decisive speed to preserve capital, energy & morale. | Spot & fix hairline fractures early; align talent via shared vision & leverage. |
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