In chess as in war,
there is a clearly identifiable king. We know who has the power and who we have
to protect until the end. The king is the most important figure and is decisive
for the end game result. If knowing who the king in chess is can help
us prioritise our moves, knowing who the king in business is can guide us
in our decisions.
Business
is undoubtedly more complicated than chess. There are far more people and
factors involved than the 16 pieces each player has on the chess board.
This complexity also contributes to the difficulty of decision-making in
business. Surely, there are lots of considerations to take into account. We
need, however, a guideline for most business decisions. Who is the king that
will in the end count?.
Our candidates
At first, the CEO of
a company seems to be the king. He/she has great power and is on the top of any
type of any organisational hierarchy. He/she defines vision, mission and gives
orders to the subordinates. However, if the CEO were the king, it would mean
that the he/she is irreplaceable. History has shown us the opposite. In
reality, a business can continue to exist even if the CEO is changed. For example,
Apple Inc. continued to exist even after firing Steve
Jobs.
If you have studied
business, you might already be yelling that shareholders are the king. They can
decide on major corporate issues, many of which are beyond the functions of the
CEO. In textbooks we are also constantly told that the purpose of financial management
is to maximise shareholder value. Saying that shareholders are the king is
certainly a better response than the previous option. However, shareholders of
a company can change; there are M&A transactions, corporate successions. A
business can outlive the existence of shareholders and is independent of who is
the current owner/shareholder.
Customers are another
ideal candidate for king. Marketo says that
the phrase “customers are king” is more true than ever. Customers are
certainly essential to a business as they buy our products and services. This
answer is perhaps be as good as, if not slightly better than saying
shareholders. Through customers, we can realise the value of the business.
However, having customers does not guarantee the survival of the company if
other decisions are being made erroneously.
Another candidate,
quite closely related to the CEO, are employees. Good employees make a good
company. Great employees make a great company. If it weren’t for them, we would
hardly drive any customers to us. If there were no employees, there would
hardly be a business and we would hardly be able to respond to customer
demand. Yet employees can leave companies and basing decisions on them would be
rather narrow-focused. Can we guarantee that having satisfied employees
is equal to business survival?
The Winner
(...) Cash is the king in
business independent of who is providing it. If you have cash, you can survive.
Cash to business is as king to chess; as long as it is not attacked, you
have hope and you have chances (...)
