David Evseeff

Sun Tzu’s The Art of War and Business By David Evseeff War is a matter of vital importance to the state. It is a matter of life and death, the road to either survival or extinction. Hence, it must be studied.1 Over the past several years, the language services industry has witnessed a dramatic increase not only in the demand for language services (translation, interpreting, and localization), but in the competitive landscape as well. According to a Common Sense Advisory report, the language services industry was worth $26.33 billion in 2010. It is estimated that the industry is growing at an annual rate of 13.15%, with more than 23,000 language services providers (LSPs) globally. In the next five years, the industry is estimated to be worth $38.14 billion.2 As just one example of how much 14 Sun Tzu advocated the importance of winning a battle without actually fighting. competition in the industry has increased over the past decade, when the federal government’s General Services Administration (GSA) Schedule first included a language services category at the end of 1999, there were only 11 LSPs represented on the list. Now, a little more than a decade later, there are 117 language companies on the GSA Schedule, representing an increase more than ten-fold!3 With this increase in competition and the innovation of language technology and its applications, the industry has seen a significant reduction in the prices clients are being charged, and thus a decrease in both company profit margins and per unit rates for freelance translators. The industry is also seeing more aggressive sales and marketing tactics on the part of LSPs and freelance translators. Developing a sales and marketing strategy for language services is not an easy task. Unlike retail or food items, the business of language is a “professional service,” and as a somewhat abstract commodity (at least to The ATA Chronicle n April 2011 many consumers), it requires some unique approaches and tactics to market the value of the service. It is not such a difficult task for freelance translators to market their services to LSPs, but it can be a monumental challenge to LSPs, attempting not only to convince clients why they should choose a particular service or “brand,” but sometimes just to convince them why it is important to invest in language services at all. For example, with the limited-Englishproficiency (LEP) population in the U.S. growing continually, almost any type of service imaginable could be a customer, from carpet cleaning to real estate. And let’s not forgot to include companies hiring LEP employees that are required to provide employee manuals, insurance enrollment forms, and other important corporate information in another language. Believe it or not, many small businesses have not even thought about this issue. As professional linguists, it is our job to market the importance of our services to these potential clients. In reflecting on this marketing challenge, and trying to come up with an innovative approach for the company whose program I manage, I recalled a discussion I once had on the application of the ancient Chinese military treatise, Sun Tzu’s The A rt of War, to modern-day business, particularly in East Asia. In extending from there, I then realized how similar the context of today’s language services industry is to the period when The A rt of War was first written, and how much business really is like warfare. What Is The Art of War? It is said that if you know your enemies and know yourself, you can win a hundred battles without a single loss.4 The ATA Chronicle n April 2011 It is important to respect not only one’s employees but one’s competitors as well. The A rt of War, according to tradition, was developed during the Spring and Autumn Period in China (approximately the 6th century BCE) by the famous military strategist Sun Tzu. During this time, China was not the large, unified country we know today, but rather a collection of smaller kingdoms (some much larger and more powerful than others), all battling to control more territory, resources, and treasure. Sun Tzu, like numerous other military strategists at the time, was shopping his philosophies around to the various rulers and generals of the competing kingdoms. In short, he proposed a simple, direct, and practical approach to combat focused on military strategy and tactics as well as on leadership. The A rt of War consists of 13 chapters, each highlighting a vital aspect of warfare, such as “Laying Plans,” “Variation of Tactics,” and “The Use of Spies.” Among his core philosophies, Sun Tzu advocated the importance of winning a battle without actually fighting. Sun Tzu also stressed the importance of deception and intelligence gathering activities, being able to adjust one’s strategy and tactics rapidly to conform with changes to the landscape, as well as focusing one’s strengths against the enemy’s weaknesses. While they may seem dissimilar, there actually is a strong correlation between business and warfare. For example, business competition and wars are confrontational activities, with both businesses and armies striving for favorable positions by defeating their competitors while defending themselves. Companies and armies must be well organized and well managed, and both require strategies and tactics to succeed. The leadership of an army, like the leadership of a company, has an important influence on the shaping of its success. Both need high quality, committed people and thrive on information/intelligence gathering activities. Applying Sun Tzu’s Philosophy to Business The concept of applying Sun Tzu’s military strategies to the business world is not a new one, especially in such competitive environments as China and Japan. However, to my knowledge, his approach has not been discussed in the context of the translation industry specifically, which, as mentioned earlier, has become one of the most highly competitive business environments in the past few years. By analyzing some of The A rt of War’s core principles, we can glean a few key ideas that can readily be applied to either LSPs or freelance translators in their “battle” to garner more business. In his book, Sun Tzu and the A rt of Business,5 Mark McNeilly talks about some “strategic principles for managers.” These include: Capture your market without destroying it. One of the most disturbing trends within the past few years has been taking place in the area of transla- · 15 Sun Tzu’s The Art of War and Business Continued tion project and contract bidding, with companies trying aggressively to “under bid” the competition. While this can win more business in the short term, it can also be damaging to the market as a whole in the long term. Avoid your competitor’s strength and take advantage of their weaknesses. If your company is particularly strong in one area, such as medical document translation, it would not be a wise move for you to engage directly with a company that specializes in another field. Also, if your company is being outperformed (defeated) in one regional market, why not consider another? In the digital age, translation providers are no longer limited by geography. Use foreknowledge and evasive tactics to maximize the power of business intelligence. It is vital to know what competitors are doing. How are they marketing and selling their services? What tools are they using? Are they outsourcing overseas to keep contractor costs down? What are their goals? What is their pricing structure? Find out the answers to these questions, but be careful not to divulge your own competitive advantage in the process. Use speed and preparation to overcome the competition swiftly. It is vital for small businesses, which make up a significant portion of LSPs, to use their natural traits—such as the flexibility and ability to change strategic course—to recognize and adjust early to trends in the industry before the competition. This means being tapped into the industry as a whole and thinking “outside the box.” Use alliances and strategic control points in the industry to “shape” opponents and make them conform to your will. A company needs to find other 16 Developing a sales and marketing strategy for language services is not an easy task. companies and/or service providers with which it can form a symbiotic relationship, whether it is another LSP specializing in a different vertical niche, or one that offers a service that can be employed. One example would be a teaming arrangement between a document translation provider and a telephonic interpreting provider that would like to offer collateral services to their existing client base. Develop your character as a leader to maximize the employee potential. The importance of having a loyal and motivated staff cannot be overstated, especially in a service industry that relies on its people. Working to become a better leader/manager is a critical part of achieving this objective. Here are some additional tips that can be applied to an integrated management (and sales and marketing) strategy, based on some of Sun Tzu’s core principles: Moral influence of leader(s): Managers should endeavor to formulate a common corporate goal to be shared by all employees. Employees will then be more likely to consider company affairs as their own and be willing to make personal sacrifices when needed. This can be done in the simplest manner by providing an annual strategic briefing to staff members, where you let them know where the company is headed and how everyone can contribute to achieve the company’s goals. Ability of the general(s)/leadership: Leaders should possess wisdom, sincerity, benevolence, courage, and strictness. They should be able to make risky decisions without being hasty or reckless, and should have the capability to delegate while at the same time knowing how to tolerate employees’ unavoidable mistakes. Climate and terrain: To be competitive, a company has to capitalize on the various changes in the economic and business environment and formulate its strategies accordingly. Furthermore, to cope with ever-changing situations, a company should maintain a high degree of mobility and flexibility. For example, when prices begin to drop, is the company’s resource management program able either to negotiate with current resources or locate and integrate new, less expensive resources quickly in order to allow the company to bid more competitively in a timely manner? Strengths and intelligence: A company should concentrate its strength on the most needed area and take advantage of a competitor’s weakness. A company can underplay its competitive advantages in order to confuse the competition’s perception of its strengths. Intelligence of one’s competitors is a key component of any successful business strategy. Respect for the Competition While Sun Tzu spoke of military tactics and strategy, dealing with the The ATA Chronicle n April 2011 strategies are carried out, and in what regard, is a decision each company and company owner must consider, for the good of the business and the industry as a whole. The translation, interpreting, and localization industry has undoubtedly become more aggressive in terms of competition over the past several years. But, with the demand for these types of services continuing to grow exponentially, there is still plenty of the proverbial “pie” to go around. To get one’s share may necessitate rethinking traditional sales and mar- 2011 Honors and Awards Now Open ATA presents annual and biennial awards to encourage, reward, and publicize outstanding work done by both seasoned professionals and students of our craft. For complete entry information and deadlines, visit: www.atanet.org/membership/honorsandawards.php. Student Translation Award In 2011, ATA will award a grant-in-aid to a student for a literary or sci-tech translation or translationrelated project. The project, which may be derived from any facet of translation studies, should result in a project with post-grant applicability, such as a publication, a conference presentation, or teaching materials. Computerized materials are ineligible, as are dissertations and theses. Translations must be from a foreign language INTO ENGLISH. Previously untranslated works are preferred. The award, to be presented at ATA’s 52nd Annual Conference in Boston, Massachusetts (October 2629, 2011), is open to any graduate or undergraduate student, or group of students, attending an accredited college or university in the U.S. Preference will be given to students who have been or are currently enrolled in translator training programs. Students who have already published translations are ineligible. No individual student may submit more than one entry. Applicants must complete an entry form and submit a project description not to exceed 500 words. Detailed instructions and application forms are available at www.atanet.org/membership/honorsand awards_student_form.php. The Student Translation Award consists of $500, a certificate of recognition, and up to $500 toward expenses for attending ATA’s 52nd Annual Conference (October 26-29, 2011). One or more certificates may also be awarded to runners-up. Please send nominations to: Student Translation Award, Muriel Jérôme-O'Keeffe, President, American Foundation for Translation and Interpretation, Inc. c/o American Translators Association, 225 Reinekers Lane, Suite 590, Alexandria, VA 22314 or e-mail them to:- The ATA Chronicle n April 2011 keting, as well as leadership strategies. Looking to the tried and proven methods of one of history’s greatest military strategists may be the way to go. Notes 1. Sun Tzu. The A rt of War Deluxe Hardcover Edition (El Paso Norte Press, 2009), 1-2. 2. Kelly, Nataly, and Robert G. Stewart. The Language Services Market: 2010, Common Sense A dvisory (Lowell, Massachusetts: Common Sense Advisory, 2010), 5,10,11. 3. Translation and interpreting services are listed by the U.S. General Services Administration (Language Services – Schedule 738 II) at www.gsa.gov/portal/content/-. Sun Tzu. op. cit., 3 18. 5. McNeilly, Mark. Sun Tzu and the A rt of Business: Six Strategic Principles for Managers (New York: Oxford University Press, 2000). STAR Group Webshop critical issues of war, life and death, and survival and extinction, he left discussions on ethics and morals to others, such as Confucius, Mencius, and Chuang-Tzu. That is not to say that ethical practices are not relevant to warfare, and by extension, business. In fact, it was Confucius who stated, “What you do not wish for yourself, do not do unto others.” Therefore, even when employing an aggressive business strategy, it is important to respect not only one’s employees but one’s competitors as well. In the end, how any of these Transit NXT – just what you need, when you need it! shop.star-group.net 17 April 2011 Volume XL Number 4 A Publication of the American Translators Association American Translators Association Contents 14 14 225 Reinekers Lane, Suite 590 • Alexandria VA 22314 USA Tel: - • Fax: - E-mail:-• Website: www.atanet.org April 2011 Sun Tzu’s The Art of War and Business By David Evseeff Written over two thousand years ago, The Art of War is well known as an effective guidebook for waging military campaigns, but it can also be applied to modern-day business strategy and management. 18 Raising Awareness of the Profession:- School Outreach Participant Jisu Kim By Sonia Wichmann An interpreter shows high school students that there really are careers for language majors. 20 My Mother Tongue By Tony Beckwith A brief chronological account of the origins and evolution of the English language. 24 Finance for the Life of Your Language Services Business By Memuna Williams A discussion of why keeping track of finances is so critical at each stage of your business. Columns and Departments 20 24 - Our Authors From the President From the President-elect From the Treasurer From the Executive Director Letters to the Editor The Entrepreneurial Linguist Blog Trekker - Geek Speak Member News Certification Exam Information Dictionary Review The Translation Inquirer Humor and Translation Upcoming Events Directory of Language Services 3 Our Authors April 2011 Tony Beckwith was born in Buenos Aires, Argentina, spent his formative years in Montevideo, Uruguay, and then set off to see the world. He came to Texas in 1980 and now lives in Austin, where he works as a writer, translator, poet, and cartoonist. Contact:- Sonia Wichmann is a freelance Swedish→English translator in the San Francisco Bay area specializing in information technology, marketing, and scholarly translations. She serves on the board of directors of the Northern California Translators Association. Contact:- David Evseeff is currently the translations manager at Schreiber Translations, Inc., in the Washington, DC metro area. He has a BA in Chinese and religion from the University of Florida and an MA in Chinese literature from National Taiwan University. Contact:- Memuna Williams is an entrepreneur and a French→English translator with 18 years of experience. She is the founder of Avantgarde Translations. She has an MBA from the McColl School of Business at Queens University of Charlotte, an MA in translation from the Université de Montréal, and a BA in translation from Concordia University. Contact:- U.S. Justice Department Wants Language Access On February 17, the U.S. Department of Justice issued a memorandum directing all federal agencies to ensure language access to limited-English-proficient individuals (LEPs). The memo from Attorney General Eric Holder cites a 2006 language access survey that found disparities in understanding and compliance of equal language access throughout the federal government. In the memo, Holder restates LEP access as not only a moral and legal obligation, but also an issue of vital importance in times of national emergencies, such as Hurricane Katrina and the Gulf Oil Spill. Federal interagency language access conferences over the past few years show that the federal government is making progress in providing LEP services. What is missing, says Holder, is a comprehensive plan and a unified approach. The memo provides the following list of eight action items agencies must undertake to ensure equal language access. 1. Establish a Language Access Working Group responsible for implementing LEP regulations. 2. Evaluate and update current response to LEP needs. 3. Establish a schedule to evaluate LEP services, policies, plans, and protocols routinely. 4. Ensure that agency staff can identify and respond to LEP situations competently. 5. Notify the public, and particularly LEP communities, of equal language access services. 6. Assess agency positions for needs of LEP employees. 7. Collaborate with other agencies to ensure quality translation and standardized federal terminology. 8. Issue guidelines for compliance to recipients of the agency’s federal financial assistance. For more information, please visit the Federal Coordination and Compliance Section website at www.justice.gov/crt/about/cor or www.lep.gov. 6 The ATA Chronicle n April 2011