In "Relentless: The Forensics of Mobsters: Business Practices," Jerold L. Zimmerman and Daniel P. Forrester describe the principles of organised crime syndicate leaders who create high-performing teams of extremely loyal gangsters, incredibly strong brands, and long-standing cultures focusing on the "customer".
The book also offers five transformational lessons of leadership, which will be discussed in two articles.
1. Follow the same basic economic principles as gangsters
All organisations, legal and illegal, face the same challenge of corporate governance: how to attract, retain and motivate a self-interested workforce so as to achieve the organisation's mission and strategy. All companies have to provide people with the knowledge and incentives to carry out tasks for the benefit of the organisation. Then it is necessary to measure and reward the performance of these individuals. Leaders must also develop a culture that communicates the organisation's vision and strategy.
One example is the American mafia: it survives thanks to well-defined organisational schemes that strengthen small specialised gangs. These retain about 75% of their illegal profits and pass on the rest as a kind of franchise fee. Their bosses have created permanent criminal circles through basic economic concepts of corporate governance, which must also be followed by managers in companies. The principle is similar.
2. Gangsters adapt their strategies, governance and corporate governance to an ever-changing world
History is full of examples of leaders trying to move into a new reality when their world suddenly changes. Leaders' ecosystems are evolving and their strategies must also evolve. However, new and bold strategies frequently require a change in corporate governance to attract, retain and motivate self-employed people to implement often controversial new ideas. It turns out organised crime syndicates tirelessly seek and implement new changes according to current opportunities.
Recently, for example, INTERPOL has issued a global alert warning that organised crime networks may target COVID-19 vaccines for their business. You can imagine the consequences.
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