How Clausewitz's principles could be useful in modern business,
management, and leadership.

Leadership in conditions of uncertainty, friction, and strategic struggle

Why did this topic arise? Why refer to thoughts, ideas, and principles formulated almost two hundred years ago? How this knowledge could be used in the modern world?

In fact, humanity has managed to preserve fragments of knowledge acquired and formulated by its best representatives throughout its development. Humanity learns from this, and it forms the basis for its further development. Today, I invite the readers of our blog to join me in considering and evaluating the influence of Clausewitz's ideas and principles on our lives today.

Carl von Clausewitz, a Prussian military leader, commander, military theorist, historian, and ethicist, one of the greatest strategists in history, never wrote about management. But, his ideas about war as a clash of wills, about friction¹, uncertainty, and concentration of forces became the foundation for modern management thinking — from scenario analysis to strategic management and crisis leadership.

There is no point in analyzing the content of Clausewitz's books in detail in a short blog article. I will focus on the practical value of Clausewitz's ideas and principles as they apply to today's realities, specifically in business. As a practicing business coach, I will emphasize the leadership qualities that largely determine the success of a business.

Let's start with priorities—with strategy. According to Clausewitz, strategy is the continuation of the goal. Closer to the author: first the political goal, then the war. In application to business realities—first the goal, then the strategy, after that the tactics, and only then - specific projects come into play. Unfortunately, I have seen many times how business leaders make the mistake of starting with projects because they seem familiar, understandable, and easy to implement—and then see how it goes, “we'll figure it out as we go.”

They are eager to get quick results (often only financial), without thinking about the fact that this does not bring them closer to achieving the main goal set by the business owner (who is also the goal setter, visionary, and ultimately the main beneficiary). This brings us to the first principle.

 

Seven Clausewitz principles that shape a strong business strategy.

1. Strategic clarity: policy sets the goals, strategy sets the path.

Let's recall a quote from Clausewitz: “War is the continuation of politics...” As applied to modern business:

• strategy must flow from corporate goals;
• every department, product, and project must understand which political (business) goal it serves;
• the leader is responsible for transformation: “goal -> direction -> focused action”;

In other words, the essence of the principle is that the goal is primary, and the means of achieving the goal are secondary. Not the other way around.

2. Concentration of efforts at the decisive point.

Let us turn to General Clausewitz: “Concentration of forces at the decisive point is the main thing in strategy.” Practical application in business:

• focus on key products, customers, markets;
• minimization of the dispersion of resources on micro-projects of “favorite associates”;
• identification of “breakthrough points” (blocking dependencies, bottlenecks, unique competencies);

The main task of a leader is to determine the main direction of effort / “center of gravity” / COG  (Schwerpunkt in the original German) and protect it from a loss of focus and resource support. This is a key idea used by NATO, McKinsey, and the Boston Consulting Group.

What is the center of gravity of a business:

• unique technology;
• distribution network;
• customer database;
• talented team;
• license or exclusive access;

What to do with it (what tasks should be set for yourself and your team):

• strengthen your COG;
• attack your competitor's COG (legally: through marketing, product, innovation…);

3. Accept uncertainty and “fog of war” (in the original - Dunkelheit / Ungewißheit) as inevitabilities that cannot be avoided and that you need to learn to work with.

What Clausewitz says: “Three-quarters of the grounds for decision are covered by fog.” Therefore, it is necessary to:

• build scenario planning;
• develop leadership intuition;
• act decisively with incomplete data.

Managers often wait for complete information — vainly, this will never happen. In conditions of uncertainty, it is important not to look for the perfect solution, but to:

• make decisions faster than competitors;
• adjust the course when new information becomes available;
• build a feedback system;
• work in short cycles (Agile logic on a strategic scale).

This brings us to the main trait of a leader — a person who acts while others analyze².

4. Managing friction: adaptability is more important than perfect plans.

How this manifests itself in business – in everyday life, there are

• supply disruptions;
• employee resistance due to:
• bureaucracy,
• slow processes,
• conflicts of interest,
• internal resistance to change.
• regulatory restrictions;
• budget delays;
• human error;

You should always be prepared for such manifestations of friction. Remember: A mature leader is someone who expects friction and builds in adaptation mechanisms in advance.

What to do in practice:

• Create a reserve of key resources (capital, time, competencies);
• Use scenario planning;
• Test solutions in small batches;
• Abandon the illusion of tight control.

5. Willpower and moral energy as a leader's main resource.

What Clausewitz teaches us: “Will is the main source of energy that overcomes difficulties.” Leadership is not only about intelligence, but also:

• persistence;
• emotional stability;
• the ability to inspire a team;
• the ability to withstand pressure;

A high moral tone in an organization is sometimes more important than modern technology. Ideas backed by the discipline and emotional energy of a leader are more likely to succeed.

6. Generative leadership: the ability to see order in chaos.

Quote from Clausewitz's treatise On War: “Genius is the ability to find a way in danger and fog.”

In today's world, a leader must:

• combine data, intuition, and experience;
• quickly identify what is important;
• see/hear important signals amid the surrounding noise;
• surpass competitors in the speed of interpreting situations.

This most important quality of a leader is called “situational intelligence” — the key to management in a VUCA environment³.

 

7. Unity of strategy and tactics: routine must serve the plan.

The Prussian general clearly distinguished between strategy (goals) and tactics (combat operations). In modern business:

• strategy determines what and why;
• operational activities provide how;

The conditions for business survival dictate adherence to this division. Alternatively, any organization is doomed to decline when:

• tactics lack strategic meaning;
• strategy ceases to take tactical reality into account;

Clausewitz’s strategic thinking — lessons for entrepreneurs.

The modern leader is responsible for the coherence of actions within the business: from the corporate level to the daily activities of employees.

To summarize the above, what makes Clausewitz's ideas useful for modern leaders? They form the basis for a practical model for leaders working in conditions of constant turbulence, competition, and organizational complexity. Such a model should contain and combine five practical competencies:

1. Focus — choosing the decisive direction of effort;

2. Adaptability — managing friction rather than fighting reality;

3. Resolve — the nature of actions under a cloud of uncertainty;

4. Will — the leader's fortitude and ability to inspire others;

5. Systemic vision — combining strategy and tactics into a single logic.

 

How to apply Clausewitz’s principles of war to business strategy.

It would seem that there is nothing new here. But in conclusion, I would give you one more quote from Clausewitz's “Vom Kriege”: “Die Kriegskunst hat wenige Grundsätze; man kann sie leicht begreifen, aber ihre Ausführung ist schwer.” Translated into the language of this blog post: “The art of war has few principles; they are easy to understand, but difficult to apply.”

 

 

• The literal translation of the term, Clausewitz used to describe the factors that hinder the execution and ideal implementation of a given task, originally Friktion. Clausewitz attributed such factors to the shortcomings of human nature and the accumulation of minor disturbances that turn an ideal plan into chaotic reality.
• On the night of March 23, 1945, American General Patton crossed the Moselle River using limited resources and insignificant forces, without informing his British allies. In doing so, he nullified two months of preparation by British General Montgomery for a similar action. This was a formal violation of the chain of command within the alliance and led to a serious conflict. Nevertheless, “victors are not judged,” and as a result, Britain's leading role in this theater of war was lost. 
• A VUCA environment is a situation or context characterized by constant, rapid, and unpredictable change, making it difficult to plan and foresee outcomes. The acronym, which originated in the U.S. Army War College to describe the post-Cold War world, stands for Volatility, Uncertainty, Complexity, and Ambiguity.