The Secrets Of Guerrilla Management

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We use electronic mail to move drafts of advertising copy and public relations releases between us and our outside agencies, which is quicker and cheaper than overnight mail. We even have an electronic-mail service print and send our quarterly reports to shareholders. Instead of the six weeks it used to take by conventional methods, they now go out in two days.

Because our products change so quickly, we now use videocassettes to keep our salespeople up to date. Before, they wasted valuable time flying in to headquarters to learn about product developments.

Once you have your troops mobile and able to communicate efficiently, you can use guerrilla management tactics to maximum advantage. They include the following:

* Look for bold, opportunistic battles.

Guerrilla fighters make up for their smaller numbers and inferior equipment by being opportunistic. They catch enemy forces off guard, inflict heavy casualties, and, if necessary, withdraw quickly. When you're dealing with large and fast-changing markets, you have to do the same.

Several years ago, for instance, Apple Computer Inc. introduced the Apple III personal computer as a sophisticated model for professionals. In a completely opportunistic foray, we quickly and aggressively supported it with new versions of our software line. The commitment cost us little in research and development. The main change in our operations was to focus marketing attention on a new area while the competition was still scratching its head. Even though the machine died within two years, we received a multi-million-dollar return on our investment.

The flip side of that approach occurred more recently when Apple introduced the Macintosh personal computer. It, too, had primarily professional applications and an uncertain future. But instead of moving boldly, we barely got our toes wet. We introduced a few products and backed them up with a poorly financed marketing effort. Microsoft Computer, by contrast, took the offensive and put substantial resources into this new market. Needless to say, it won it.

* Show your troops the way.

Successful guerrilla forces are led by commanders who also are in the thick of the battle. Guerrilla managers have to be willing to get in the trenches, and this is especially important when the total war effort is going poorly.

Not so long ago, we had our first-ever loss quarter, and I had to do what I could to motivate people to keep fighting. I decided to be candid about our problems, and I acknowledged in our biweekly company meetings that we were being attacked by some substantial enemies, including Lotus Development, Ashton-Tate, and Microsoft. I reassured employees that we had a plan to fight the attackers and explained its main points.

Most important, instead of simply exhorting employees to work harder, I tried to help out. For example, people were very frustrated trying to meet some difficult deadlines in our race to introduce two new software programs. To make their lives easier, I suggested bringing certain production processes in-house temporarily, and shipping the products with some minor bugs (which were explained in accompanying documentation). I also called an outside contractor and told him that if he wanted to keep us as a customer, I expected what is usually a three-week recording process to be completed in two days. The contractor came through, and our engineering team understood it wasn't being hung for being late, but was getting a good deal of support.

* Give your troops responsibility.

Multilayered chains of command bog down established armies. The same happens to growing companies. In trying to imitate large corporations, smaller businesses look to hierarchy to relieve the prevailing chaos. Instead, it often creates inefficiency and inhibition.

Recently, we discovered the perils of centralization. We had given one of our regional sales assistants responsibility for getting important new demonstration equipment into the hands of our national salespeople, none of whom she knew. Because she didn't know their habits, they ended up in an extensive game of telephone tag. By the time she'd made connections with everyone, we had lost three valuable weeks. Had we simply let each of our regional assistants set the equipment into the field, I'm certain the process would have been much speedier.

* Fight on your terms.

If your opponent's crack troops are based in the valleys and its worst troops are in the mountains, you'll do best as a guerrilla to fight in the mountains. It seems obvious, but guerrilla managers sometimes lose sight of the basics.

A couple of years ago, we were feeling good about the success of our PFS line of software products and decided that customer loyalty was strong enough for us to go head-to-head with the big boys. So we put out PFS Plan as competition to Lotus 1-2-3. PFS Plan didn't do well.

We went up against an enemy's strength -- spreadsheets -- and were beaten. We thought we could make the future happen, but customer loyalty turned out to be much less important than we had expected. We came to realize that in the future, we have to make sure we market products in areas in which we already are established leaders.

Guerrilla management calls for a continually aggressive and unconventional attitude toward the marketplace. It's easy, unfortunately, to get a little lazy once you're successful, though. At Software Publishing, for example, we let our general and administrative and marketing costs creep up during recent years, and now it's painful to get them back to where they should be. But guerrilla managers can't afford to be out of shape for long, since they know there's never a final victory to be won. At best there's only a reprieve until the next battle must be fought.

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