Sun Tzu – The Art Of War 2.10

Poverty of the State exchequer causes an army to be maintained by contributions from a distance. Contributing to maintain an army at a distance causes the people to be impoverished

Sun Tzu’s Art of War is not just a guide for military strategies, but also a book on leadership and management. One of the key lessons in the book is the importance of resources and finances.

In chapter 2 verse 10, Sun Tzu highlights the impact of a poor state exchequer on an army’s maintenance. He suggests that when the state’s treasury is impoverished, the army has to be maintained through contributions from a distance. This can lead to the people being impoverished, as they have to bear the burden of maintaining the army.

This lesson is relevant not just to military operations, but also to businesses and organizations. Just like an army, a company needs resources and finances to operate effectively. If the finances are mismanaged or insufficient, the organization may have to rely on external sources, such as investors or loans, to stay afloat. This can lead to a heavy burden on stakeholders, including employees, customers, and shareholders.

Therefore, it is essential for organizations to manage their finances wisely and avoid relying on external sources for prolonged periods. Companies should strive to maintain a healthy cash flow and budget effectively to ensure the longevity of the organization. They should also focus on developing alternative revenue streams and minimizing expenses to avoid overreliance on a single source of income.

In conclusion, Sun Tzu’s lesson on the impact of a poor state exchequer on an army’s maintenance can be applied to businesses and organizations as well. Managing finances effectively is crucial for the sustainability of an organization, and it is essential to avoid overreliance on external sources for prolonged periods to prevent financial burden on stakeholders.