Strategies Utilized by Wartime & Peacetime CEOs

You may be familiar with the phrases “peacetime CEO” and “wartime CEO” in discussion of high-level strategy tactics and techniques. These terms have become widely understood, discussed, and adopted in the realm of top-executive leadership.

Today in BusinessLife Global Coaching, we would like to introduce these expressions as a way to frame our BusinessLife topics of leadership, management, organization, inspiration, communication, and success.

Understanding Peacetime vs. Wartime

This terminology was first introduced in Ben Horowitz’ 2014 publication of the now-famous article, Peacetime CEO/Wartime CEO. Horowitz, of acclaimed Silicon Valley venture firm Andreessen Horowitz, defines the differences between a peacetime CEO and a wartime CEO for business organization and strategy.

He first defines peacetime:

“Peacetime in business means those times when a company has a large advantage versus the competition in its core market, and its market is growing. In times of peace, the company can focus on expanding the market and reinforcing the company’s strengths.”

Peace is competitive advantage and expansion.

A peacetime leader grows the business when the company is already at an advantage. This kind of CEO is strongest at exponentially amplifying growth by seeing every sliver of success and expanding upon it.   

Horowitz then defines wartime:

“[When] a company is fending off an imminent existential threat. Such a threat can come from a wide range of sources including competition, dramatic macro-economic change, market change, supply chain change, and so forth.”

War equates to competitive disadvantage and pivoting.

A wartime leader excels when the business is struggling and he or she needs to step in to make drastic changes. This sort of CEO works best under pressure and knows how to inspire and revolutionize business in times of crisis.

Horowitz concludes that an effective leader can’t be both a peacetime and wartime CEO. A leader is generally one or the other. They are either strongest in times of growth or in times of change.

Let us consider Google and Apple as examples. At Google, Eric Schmidt was a peacetime CEO. He knew how to grow Google while it was still on the up-and-up, when the company had new inventions and software popping up around every corner. However, when Google’s footing started to lose hold, they brought in a wartime CEO like Larry Page to help reinvent, reorganize, and re-instigate the business.

Similarly, Steve Jobs was a peacetime CEO who led Apple through its strongest, most profitable, most innovative years. Tim Cook stepped in as the wartime CEO and led Apple when it was facing a heavy decline in market share and status.

Peace or war?

The question becomes: what type of CEO is better? Do you want a peacetime or wartime leader?

In short, it depends. 

Every business is faced with both peace and war at one point or another. The right leader for any given time is the one with the appropriate qualities. A peacetime leader has those skills that will help grow the business in situations of advantage, while a wartime one has those talents that will save the business in times of crisis.

It is not wise to send a peacetime CEO into war, because he or she may not have the capacities to stimulate immense change. Likewise, a wartime CEO may not thrive in peace, because he or she may not have the ability to grow success without fighting for it.  

This duality will frame the rest of this article. We will discuss the basic structures of the BusinessLife strategy in terms of these peacetime and wartime approaches in a way that will help you most effectively impact your business.

Strategies for the wartime and peacetime CEO

What kind of CEO does your business require right now? Who is waiting to play?

In order to understand the best kind of leader for your company, first consider where your company is situated within its market.

Who are the warring parties? Who is your company up against?

Who is your competition? Do they have a hold over your market? Why or why not? How does their hold influence your business’ success and potential growth?  

Who are you collaborating with? Clarify and define those relationships in your industry that work with you and give you an advantage. Consider how your partnerships position you within your competitive landscape.

Now consider what your market “thinks” of you. Where would your clients (and potential clients) place you on a scale amongst your competitors? If you are at an advantage, you may choose a peacetime CEO to lead. If you’re at a disadvantage, your company may benefit from a wartime leader.

The insight of leaders

The difference between a peacetime and wartime leader is small: one excels in advantage and one excels in disadvantage. But both are leaders in their own right, who have insight into their company at a given time, and they are able to use that insight to best affect business outcomes.  

A peacetime leader has the insight to continue growth, and a wartime one has insight to refocus change. Generally, we gain more insight about our companies during war than during peace, because we have the opportunity to see weaknesses and implement necessary measures to overcome those obstacles.  

Who on your team has insight?

How can you put those individuals in a leadership position? How can you leverage their insight for the good of the company during peace or war?  

Leadership vs. Management

Leadership is the process of social influence in which one person enlists the aid and support of others to accomplish a given task. A leader can be a CEO, a business owner, or even a group task leader. Leadership is not defined by rank. It is defined by the ability to accomplish tasks by inspiring and encouraging team members.

Leadership and management go hand in hand, but they are not the same.

A manager:

• Focuses on structure.
• Finds success with control.
• Attends to short-term tasks.
• Tells how and when.
• Watches the bottom line.

A leader:

• Focuses on people.
• Finds success by inspiring others.
• Attends to long-term strategy.
• Asks what and why.

Both peacetime and wartime leaders utilize their people to create long-term growth or change.

How to be a leader

Inspiration

Leadership is first and foremost about inspiration, whether you’re a peacetime leader encouraging your people to stay the path of success or a wartime leader stimulating your people to make change.

The inspirational traits of a leader include:

• Support and guide their team
• Allow time and room for growth of team
• Show enthusiasm and passion
• Motivate with drive, incentives, rewards, and expectations
• Influence their members to use complementary skills towards an objective

Most importantly, leaders provide a vision. This vision goes beyond the organizational mission and permeates every fiber of the workplace. A peacetime leader shows the team a concrete vision of mammoth success and wealth. A wartime leader shows a distinct vision of a changed future with high potential for growth.

Preparation and organization

Prepare your strategy:

• Study your marketplace and your competitors.
• Be clear about who your customers are.
• Define your desired outcomes.
• Express the measures of success for those outcomes.

Organize your approach:

• Consider the necessary monetary investment.
• Systematize your calendar and schedule.
• Establish a strong working order.
• Take the time to make decisions.

Analyzing outcomes

Study your results:

• Use your results as a starting point for movement.
• Do more of what is working.
• Address what isn’t working.

Understand, and make clear to the team, that results are just results. There is no good or bad, right or wrong. Results are simply a starting place for continued goal-setting and strategy-building.

Refocus your thinking:

• Review your company’s strengths and weaknesses.
• Assess your client’s or customer’s needs.
• Decide where you want to go in the future.
• Plan for areas of course correction.
• Determine an agile plan for growth in accordance with your current and predicted position in the competitive landscape.

Most importantly, all leaders know that peace never lasts and war always ends. In this way, it’s important for all leaders to lay the groundwork for a successful transition between peacetime and wartime.

Communication

Leaders lead through communication. They understand that quality communication is 80% listening and 20% speaking. They use their communicative style as a tool to wield power and influence.

There are varying types of communication needs based on personality differences, situational changes, and desired results. Leaders adapt their communication style based on their audience. A peacetime leader wouldn’t focus on the problems of the past, and a wartime leader wouldn’t focus on the past easier times. Leaders communicate based on what they need to accomplish to move forward.

In addition, communication must be genuine. As a leader, you believe what you say and are comfortable with it. Wartime leaders won’t say everything is fine when it’s not. If they did, nothing would change, and the company would plummet. Instead, a wartime leader might be positive and hopeful while also communicating the specific changes that will bring about improved outcomes for the business.  

Success

Ultimately, the goal is success. All leaders—whether in war or peace—are going for the win. They are driven by the competition to win the war or to maintain the peace.

Leaders bring this success by driving results, because results never lie.

What do leaders use to bring about the necessary results?

Tools

There are three key tools that we employ in BusinessLife Global that have proven success for both peacetime and wartime leaders: SMART goals, culture standards, and team building.

SMART goals

Setting goals helps you understand where you are versus where you want to be. It tells a peacetime leader how to push forward and it tells a wartime leader how to pivot.

SMART goals are specific, measurable, achievable, realistic, and time-bound.

• Specific: Is the goal clearly defined?
• Measurable: Can you use quantifiable metrics to determine if you have achieved the goal?  
• Attainable: Is this goal possible for your specific company to achieve?
• Realistic: Is this goal possible to achieve as your company currently stands—whether in war or in peace?
• Time-bound: What is the time limit on this goal?

A strategic target tells you where you want to be. SMART goals are stepping-stones to ensure you reach that end goal.

We have discussed SMART goals in the Digital Library before. You may read that article here.

Culture

The organizational mission and values determine and produce company culture. These are intentional and purposeful. They should never be something that just happens. Your mission is the foundation of the company; it is your reason for being in business. Your values define how your company will operate in order to meet that mission. Together, this helps fashion a culture of individuals working with the same values towards the same mission.

It is vital for a leader to utilize these mission and values in every aspect of their strategy. It is through the culture that a leader inspires. It is through inspiration that a leader is successful.

Read a past article about what culture brings as a business advantage here.

Team building

Teams are a coordinated, intentional group of individuals with complementary skillsets, brought together to accomplish an intended goal or objective. They require that each member give up a part of their individuality in exchange for collective goals. This is accomplished through integrity, communication, commitment, and performance accountability. They make agreements with one another to be responsible and productive. They win as a unit or they lose as a unit.

And the leader takes on the role of primary team builder. The leader helps to build a team that will function in accordance the needs of the business. Whether in peace or in war, the leader helps facilitate team building in a way that will best meet the SMART goals, objectives, mission, values, and future growth of the company.  

How will you lead and build your teams? Read an article about team building here.

The bottom line

Peacetime leaders utilize their talents to further develop an advantageous company, while wartime leaders strategize for growth while at a disadvantage. In both cases, all leaders must use the same tools, skills, and insight in order to see results.

Are you a wartime or peacetime leader? Contact us a BusinessLife Coaching today to help you learn and grow in your business.