Establishing the Profile of a successful Competitive Intelligence Practitioner by Albert Cruywagen

Establishing the Profile of a successful Competitive Intelligence Practitioner

Adapted from a paper delivered on 20 November 2002 at the Competitive Intelligence World 2002 Conference at The Conference Park, Midrand, Johannesburg, South Africa .

Albert Cruywagen (albert@quantum3.co.za) CE of quantumiii Consultants, held various positions over more than two decades in civilian and military intelligence organisations. He has been a Senior Associate with the US management and technology consulting firm of Booz·Allen & Hamilton. He specialises in Strategic Enterprise Transformation, Management of Change, Executive Coaching, Personal Knowledge Management and Competitive Intelligence. Albert holds postgraduate qualifications in Business from the University of Stellenbosch Business School and in Political Science and Public Law from the Rand Afrikaans University. He has comprehensive international experience and travelled extensively to and in countries in Western and former Eastern Europe, Middle and Far East, North America and Africa. Albert is the 2003 President of the South African Association of Competitive Intelligence Professionals (SAACIP).

Objective. The objective of this paper is to create a greater understanding about the profile of a successful competitive intelligence practitioner and to assist employers in employing the right CI people.

The following issues are highlighted: the skills needed to carry out the CI function effectively; positioning the competitive intelligence professional within your company; and establishing the characteristics / traits of the general CI practitioner.

Those who are blessed with the most talent don't necessarily outperform everyone else. It's the people with follow-through who excel.

Contextualising Competitive Intelligence

What is it that competitive intelligence professionals do? Why do they do it? Who are the sponsors of competitive intelligence activities? Can competitive intelligence activities be described as professional and ethical? These are some of the questions that can be asked to help determine the characteristics and traits of individuals involved in or earmarked for competitive intelligence work.

In essence, competitive intelligence is an actionable product resulting from a process in which people play a pivotal role. In order to establish a profile of a successful competitive intelligence professional one needs to understand the fundamental nature of both the process and the product.

Phases of the Competitive Intelligence Process / Cycle

The intelligence cycle is a process by which raw information is acquired, gathered, transmitted, evaluated, analysed, and made available as actionable intelligence for use by policymakers in decision-making. The intelligence cycle has a number of distinguishable phases:

The first phase comprises a review of the company’s own operations and knowledge base (a Competitive Intelligence Audit) to determine what is already known about its competitors. During this phase the information needs of the company is defined and specific collection requirements determined.

This phase deals with the deliberate, planned and continuous process of gathering and acquisition of relevant data and information by utilising available sources of information to satisfy the set requirements.

In the evaluation phase, information is processed and weighed in terms of accuracy, relevancy, usefulness, and stored using techniques of summarising and categorising of information. The reliability of sources also receives scrupulous attention.

The process whereby evaluated information is collated, analysed, integrated and converted into competitive intelligence products containing facts, elucidations, estimates, forecasts and conclusions.

This phase deals with the timely distribution of the finalised actionable product (intelligence) in the desired format.

Defining Competitive Intelligence

According to Jonathan Calof of the University of Ottawa, Competitive Intelligence is “Actionable recommendations arising from a systematic process, involving planning, gathering, analysing and disseminating information on the external environment, for opportunities or developments that have the potential to affect a company or country’s competitive situation.”

Competitive Intelligence can also be described as the measurable ability to consistently make the right information available, to the right people, at the right time, in order for them to take decisive and suitable action.”

The Need for Competitive Intelligence

Most corporate enterprises today have divisions for strategic planning that require intelligence reports. Competitive enterprises are undeniably interested in the plans of their competitors. Despite laws against such practices, industrial espionage is often difficult to detect and control and is known to be an active tool for gaining such foreknowledge.

Many of the tools of government intelligence work are used by the corporate world, including electronic surveillance and aerial photographic reconnaissance, and attempts are often made to recruit defectors. Such undertakings necessitate the deployment of effective counterintelligence measures flanking standard security operations to safeguard one’s own enterprise.

Professional bodies such as SCIP are imploring their members to conform to a strong code of ethics – thereby ensuring business of professional and ethical conduct by CI professionals. The code of ethics leaves no uncertainty about the high moral requirements involved in the competitive intelligence profession. It also succeeds in creating an image of the “type” of person required to perform the job:

§ To continually strive to increase the recognition and respect of the profession.

§ To accurately disclose all relevant information, including one's identity and organisation, prior to all interviews.

§ To provide honest and realistic recommendations and conclusions in the execution of one's duties.

§ To promote this code of ethics within one's company, with third-party contractors and within the entire profession.

§ To faithfully adhere to and abide by one's company policies, objectives, and guidelines.

The Professional Competitive Intelligence Professional

Through the ages intelligence work, its principles, responsibilities and methods, grew along with the development of civilisations. More than 2300 years ago, Sun Tzu, the famous Chinese war philosopher, described the timeless requirements of an intelligence officer.

Translated in The Art of War it reads: "As living spies we must recruit men who are intelligent but appear to be stupid; who seem to be dull but are strong in heart; men who are agile, vigorous, hardy and brave; well-versed in lowly matters and able to endure hunger, cold, filth and humiliation.”

One would not expect the modern competitive intelligence professional to be enduring such conditions, but the characteristics and traits seem to remain unaffected.

It is sad that the very secrecy and confidentiality needed for effective intelligence work, gave rise to unintelligent gossip and the psychosis of romantic adventure by which the intelligence profession (especially in its government-sponsored form) is often characterised. The popular imagery of Hollywood spies who are equally handy with cars, women and pistols is doing great injustice to the calling of determined members of intelligence components who are painstakingly and efficiently serving their companies. There are many jokes in circulation attempting to vilify honest competitive intelligence professionals. Take note - only the amateurs and uninitiated are laughing…

Competencies of CI Professionals

Ready to bite the ass of a bear.
John Gutfreund (1929–) U.S. business executive. Referring to the desired attitude of his employees.

CI professionals must have a very specific set of skills to effectively execute the various phases of the intelligence process. These abilities are obtained from four sources:

Interdependent and building upon one another, the abovementioned sources should provide the full array of competencies needed by successful competitive intelligence practitioners. Business leaders and managers must accept the significance of these sources, rather than agree to the naive concept that a single training course presented by inexperienced presenters, can serve as the exclusive means for gaining proficiency. There is no technique yet to fast-track experience.

The following list of competencies is widely agreed upon by practicing competitive intelligence professionals. Training/teaching, experience, or mentoring will often enhance skills that were acquired from other sources.

Ultimately, a hero is a man who would argue with Gods, and awakens devils to contest his vision.
Norman Mailer (1923–), U.S. novelist and journalist.

An art can only be learned in the workshop of those who are winning their bread by it.
Samuel Butler (1835–1902), British writer and composer. Erewhon.

We know more about the motives, habits, and most intimate arcana of the primitive peoples of New Guinea or elsewhere, than we do of the denizens of the executive suites in Unilever House.

Roy Lewis, U.S. writer. Referring to the international industrial company Unilever and its headquarters in London. The Boss (co-written with Rosemary Stewart).

Mentoring requires special skills, but it does not require hierarchical position.

Truth seekers…

The abovementioned is supported by the findings of the American Productivity & Quality Center (APQC) when they say: “Staff your CI function with qualified personnel. Strategic thinking, combined with communication, analytical, and interpersonal skills, are the highest priority. Industry-specific knowledge and IT skills are moderately important for the CI professional. Best-practice partners also expressed the need for personnel who are "truth seekers," are able to believe the competition can win, and have courage. These are all needed to take a stance against biased CI customers who may be unrealistically viewing the competitive landscape.”

The chairman doesn't want someone under him who is a threat, so he picks someone a little less capable. It's like an anti-Darwinian theory—the survival of the unfittest.

Carl Icahn (1936–), U.S. financier and business executive.Referring to American boardrooms.

A final word?

A well thought through listing by Douglas Bernardt describes the traits of the modern competitive intelligence professional as:

Out of Africa

Africa may not have a well documented history of intelligence and competitive intelligence work but one needs to be sightless not to appreciate the wealth of intelligence related symbols and examples which are to be found amongst Africa’s widely diverse animals.

Note that in many instances, it is the seemingly small and weak that are the best example. The sometimes tongue-in-cheek descriptions serve as a light-hearted but at the same time serious approach to understanding the profile of the successful competitive intelligence professional.

§ The ELEPHANT is a symbol of loyalty and group cohesion, intelligence and an astonishing memory. It never forgets the good or bad done to it.

§ The CHAMELEON is a symbol of constant vigilance, optimal utilisation of camouflage to adapt to its operational environment, and the ability to stalk its prey patiently and purposefully.

§ The PIGEON is a symbol of determined, persistent and effective communication. It is known for its strong and loyal homing instinct and unwavering sense of direction notwithstanding obstacles.

§ The BABOON symbolises active curiosity, resourcefulness, constant vigilance and keen powers of observation. It is one of the few animals that appear to possess a subtle sense of humour.

§ The OWL symbolises wisdom, contemplation, secrecy, security, and the ability to hunt its prey noiselessly in the dark.

§ The BAT is a symbol of the innate ability to timeously detect targets, obstructions or dangers in order to take the necessary action. Its system of echolocation is highly effective, yet undetectable by its prey.

§ The HONEY BADGER symbolises fearlessness, tenacity of purpose and toughness. It will tackle any opponent regardless of size, and is not easily fenced in or out.

§ The CAPE HUNTING DOG symbolises purposeful teamwork, persistence, effective communication and relentless pursuit when hunting its prey. It has strong ties with the pack and any member of the pack will care for the injured or young.

§ The FISH symbolises the human target. In order to ensure an effective catch, its capabilities, habits and preferences must be researched and evaluated patiently and thoroughly in order to open the way for professional exploitation and utilisation.

§ The MOLE symbolises the ability to function effectively and secretly underground - hence the intelligence connotation of long-term penetration ability as well as of treachery in own ranks.

§ The CHEETAH symbolises patient surveillance of its prey and surrounding countryside before a hunt. Capable of reaching speeds of up to 100km/h over a short distance, the cheetah has no problem in running down and killing even the fastest of prey. Although not a particularly aggressive animal, it is nevertheless distinguished by its efficiency as a hunter and its regal bearing.

§ The ANT symbolises strong central leadership, planning, tasking, coordination and control. If is also symbolic of foresight, dedication, discipline and specialisation – above, as well as below the surface.

§ The SNAKE is a symbol of cunning, good camouflage and the ability to hypnotise/manipulate its prey. If is fearless when cornered and completely self-reliant.

§ The JACKAL symbolises operational acumen, supreme cunning in eluding capture, innovative thinking and opportunism. It is highly adaptable and survives under almost all conditions. It is hardy and resourceful and will overcome the most difficult obstacles to catch its prey.

Positioning the competitive intelligence professional within your company

The current reality in many South African companies is that the competitive intelligence function is taking up a relegated position in the structure of the organisation.

This is because the very people who created the competitive intelligence function now judge it a “back room” activity. This results in the competitive intelligence function suffering from a lack of prominence and top management support, often leaving it severely hamstrung.

A direct result of this lack in support is that the CI function is left with a stern lack of authority impacting heavily on its influence. The competitive intelligence function regularly has to cobble something together on a shoestring budget, nullifying the purpose for which it was created. In the final instance one often finds that the CI function is operating “disconnected” from other functions in the organisation which results in equally disjointed products.

The need for a Competitive Intelligence system

In tackling the abovementioned challenges, competitive intelligence professionals can take advice from Michael Porter:

Compiling the data for a sophisticated competitor analysis ... requires more than just hard work. To be effective, there is the need for an organised mechanism - some sort of competitor intelligence system - to ensure that the process is efficient.

Keys to a successful CI System

Benefits of a CI system

A well-designed competitive intelligence system will organise the flow of critical information in the organisation and ensure that intelligence gets to the right `consumer' on time.

The system will provide managers with actionable information which is sharply focused on the needs of decision makers. It will however not sacrifice the need for critical information to be presented succinctly and analytically.

A marked result of a well-designed system is that it improves decisions affected by factors `external' to the firm as it should provide ample external inputs while at the same time identifying alternatives and generating options.

Effective and efficient competitive intelligence systems cause management to face change while enhancing managerial awareness and preparedness. It has the often-overlooked advantage of minimising surprises - and as well-informed managers are more likely to take effective action overall productivity and effectiveness is bound to soar.

And lastly - the CI system is the organisational means, or mechanism, by which relevant information about the firm's competitive environment is systematically collected, analysed, and disseminated to policymakers who can – in the interest of the company and its shareholders - act on it.

Key organisational considerations

In deciding where CI is to `reside' in the firm it must be kept in mind that Competitive Intelligence exists primarily to serve the needs of management.

Ideally the CI function should not fall under the 'umbrella' of market or marketing research as the organisation stand to gain more if executives outside the realm of marketing have access to the capacity and products of the competitive intelligence component.

Despite conventional wisdom in this regard competitive intelligence should never be positioned as a sub-division of `knowledge management’.

The dilemma

Few European- or US-based multi-national companies possess a formal CI system that is fully integrated on a global (or any other!) basis. This should serve as a danger signal and a wake up call to South African business. Without proper integration into the business as a whole, the CI function is bound to fail.

Most senior business managers have never seen a proper intelligence 'product ' and as a result they do not understand what it is, or what is required to produce it. There are however exceptions to this rule – also in South Africa.

The single greatest threat to creating actionable intelligence - intelligence that meets the real and explicit needs of policymakers - is organisational inertia.

The challenge

In the world-class firm of today competitive intelligence institutionalised on a worldwide basis. At the same time, it is fully integrated into the strategy process and used by senior management to help shape the future of the enterprise. Competitive intelligence is furthermore embedded in the culture of the organisational and finds itself user driven and dialog-based.

Finally – people and only people

Organisation and structure does not really accomplish anything. Plans do not accomplish anything, either. Theories of management do not matter much. Endeavors succeed or fail because of the people involved. Only by attracting and using the best people will you ever outperform the competition.

“The position of the CI professional is drastically changing as “new think” computer programmes and artificial intelligence machines and programmes start to infiltrate the CI domain.

The constant changing intelligence environment creates an insatiable need for actionable intelligence.

The policy and strategy processes of business need better and more accurate intelligence for survival on the global battlefield of declining stocks and high-tension competitiveness.

The changing economic environment requires that major adjustments be made in intelligence analytic capabilities.

The analysis challenge is likely to become more difficult and important. To achieve the adjustments a need for better-trained professional analysts that understand the new developing competitive environment is warranted – a new breed for a new need.”

At every crossroads on the path that leads into the future, tradition has placed 10 000 men to guard the past. -- Maeterlinck

References and Additional Reading

Encarta Book of Quotations 1999 2000, Microsoft Corporation. Developed for Microsoft by Bloomsbury Publishing Plc.

Calof, J. Presentation at the 2000 SCIP Annual Conference. quantumiii CD Collection: Volume 03: CI Competitive Intelligence: Enfish Ref: 4093

Encarta Encyclopedia Deluxe 2001 World Edition. Espionage. Microsoft Corporation.

SAACIP : South African Association of Competitive Intelligence Professionals. http://www.saacip.co.za

Griffith, S.B. The Art of War. Oxford University Press, London. 1977 reprint. p.149

Encarta Book of Quotations 1999 2000, Microsoft Corporation. Developed for Microsoft by Bloomsbury Publishing Plc.

APQC: American Productivity & Quality Centre. Developing a Successful Competitive Intelligence Program: Enabling Action, Realizing Results and Competitive and Business Intelligence: Leveraging Information for Action. Best-Practice Research Reports published by the APQC at http://www.apqc.org

Encarta Book of Quotations 1999, 2000 Microsoft Corporation. Developed for Microsoft by Bloomsbury Publishing Plc.

As presented by Douglas Bernardt during a CBIA Seminar: Competitive Intelligence & Counterintelligence – Cornerstones of Strategic Success 23-25 April 2002 Centurion

With fond memories and recognising the wonderful work of Anne Stadler. Scientiae Munit!

Adapted from: Venter, P. Bridging the Information Gap. 2002. Graduate School of Business Leadership. UNISA as presented during a CBIA Seminar: Competitive Intelligence & Counterintelligence – Cornerstones of Strategic Success 23-25 April 2002. Centurion, South Africa.

Porter, Michael E. 1980. Competitive Strategy. Techniques for Analyzing Industries and Competitors. New York: Free Press.

Fleisher, Craig S. & Bensoussan, Babette E. 2002. Strategic and Competitive Analysis. Methods and Techniques for Analyzing Business Competition. Upper Saddle River NJ, Prentice Hall.