Chapter 6. Manage the Environment

All organizations are part of a larger environment—a market or an economy or a military theater. The organization's capability to operate within that environment is a primary determinant of its success. Leaders are responsible for understanding and maximizing that capability.

MacArthur understood that the environment in which an organization operates is “neutral”; that is, it does not inherently favor any one competitor over another. But he also knew that the environment offered powerful advantages to the leader and organization that could best adapt to it.

In WWII, MacArthur's first job was to adapt his own forces to the environment. For instance, disease was a major problem in Papua New Guinea. Former Secretary ...

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