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Niccolò Machiavelli tells us to gain and keep the upper hand by any means, that there is no such thing as justice, honour, or integrity, and that morality should play no part in our dealings unless we are pretending, but he failed to address that little idea called karma , writes Louis Ferrante in Mob Rules: What the Mafia can teach the legitimate businessman (www.landmarkonthenet.com).
The author, a former Mafia associate and heist expert who served an eight-and-a-half year prison sentence after refusing to incriminate members of the Gambino family, observes that while Machiavelli's instruction may help you achieve success in business or politics, it guarantees your failure in other aspects of life, leaving you with no friends and relatives who hate you. “Rich but poor. Successful but sad. Social but lonely. Is this what you want? Money and power at any cost?” His advice, therefore, is to have true goals, treat people with dignity, and strive to make our world a better place.
Inside guy
The book is a collection of 88 time-tested Mafia strategies, such as staying up on the competition with the help of ‘an inside guy.' A startling quote in a chapter devoted to this lesson is that if a company has 500 employees, half are ripe for an inside tip. “Imagine going into a conference room and knowing exactly what the other party wants or needs to get out of the negotiations — their rock-bottom price, the most they'll give, the least they'll take. That info can all be provided to you over a beer at Patrick's Pub,” notes Ferrante. “When pulling off heists, my biggest tips came from ordinary employees, an inside guy or gal privy to golden information.”
Brand name
Lesson 84 is on when to franchise, because ‘the Mafia is a brand name.' One reason a Mafia associate works so hard to get in with a family is because once he is in, he has the potential to earn much more using the family name, informs the author. He narrates the story of Pete Penovich, a Chicago gambling boss during the time of Al Capone. “At Capone's criminal trial, Penovich testified that he voluntarily gave up 100 per cent of his own profitable gambling machine when he was offered 25 per cent to throw in with Capone's outfit. Penovich said that the original 25 was later cut down to 5 per cent.”
Core competence
Another lesson is about sticking with what you know because the world has people cut out for different things, and together we make the earth go round. “Al Capone called the stock market a ‘racket' and knew enough to stay out of it. But most people aren't as realistic about their limits as Capone,” rues Ferrante. “How many rich businessmen think their wealth translates into wisdom, and believe they can master any field and live out any fantasy?”
Aptly recounted in the chapter is the story of Crassus from the days of ancient Rome. Crassus had a genius for business affairs and became filthy rich. “Financial success convinced Crassus that he could conquer any field, even a battlefield. With no experience in warfare, Crassus set out to conquer the Parthian Empire. He dismissed the warnings of experienced generals because, after all, he was rich and they weren't.”
So, what was the result? Instead of dying a proud, wealthy man, sipping a martini, Crassus died in shame, brutally murdered at the hands of his enemies, and he also dragged 30,000 legionnaires into the grave with him, reminds Ferrante.
Partner choice
At a time when foreign investment in retail is a hot topic, a chapter to read is ‘Lesson 77' which says, ‘Don't shoot a rising star: neutralising potential opponents.' It tells the story of mob boss Johnny Torrio, who grew up during the Depression and is credited with starting the Chicago Outfit. His motto was, ‘There's plenty for everyone'. He had a gift for organisation and was able to mould hoodlums into businessmen. “One such hoodlum was the young Al Capone. When Torrio first recognised how smart and ambitious Capone was, he knew he had a problem…”
Rather than adopting the mob solution and killing the threat, Torrio made Capone an offer he could not refuse — a partnership — because Torrio found in Capone a man with whom he could expand his operations. “Moreover, he neutralised a potential opponent. After many years together, Torrio retired and left the Windy City to Capone.”
A parallel that the author sees in business is Sam Walton, who too grew up during the rough and tumble of the Depression, and who also encountered smart and ambitious managers when he wanted to expand his operations of Walton's Five and Dime. “One such manager was Willard Walker. Using a classic Torrio move, Walton neutralised Walker by offering him a piece of the action. Walker accepted… Walton took on more and more partners, and eventually called his stores Walton's Family Center, and then just Walmart.”
A book that can compete with an action thriller on a Friday night and keep you awake.
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