Business lessons from ex-Mafia boss
“Whose face would you like at the back of your head?” That is the question asked by a barber, whose innovative haircuts made him famous. It’s not enough to have some skills in business management, you have to be innovative and artistic as well.
One of the notable leaders of the Italian mafia—and happy to be the only one alive— wrote a book entitled “I’ll Make You an Offer You Can’t Refuse.” Michael Franzese revealed his experiences in the mob as a caporegime in the organized crime, when he made $50 billion annually through narcotics, loan sharking, extortion, wire fraud, labor racketeering, illegal gambling, prostitution and the gasoline cartel. Franzese claimed he was running a mob enterprise and operating a legitimate business: “Mobsters were into legitimate enterprises like entertainment, construction, trucking, and food and liquor wholesaling.”
According to Vanity Fair, his operation in 1986 made Franzese one of the biggest money earners the mob had ever seen since Al Capone. Tom Brokaw, one of the anchors of TV magazine show “60 Minutes,” called him “Prince of the Mafia.”
A modern day Robin Hood, he served 10 years in prison and survived to write a book pointing out that the operative word is “business.” The former mobster, who claims that the organizational chart of the Colombo family or any crime syndicate mirrors the management structure of a corporation, shares some tips:
He underlines the importance of cutting to the chase. Nailing down the basics. “Do not field the ball till you covered your bases.” Eliminating the clutter since one would want a clear and easy path to the cash. He cited The Oracle of Omaha, billionaire Warren Buffett, who must have amassed his wealth by applying this dictum.
There is value of having a good crew and a solid consigliere (counsel, adviser), “a safeguard to your own shortsightedness, lack of information or perspective, even your own bad judgment. Honest, capable and reliable men must be in your ship, so to speak. Hire men whom you can trust and will never flatter you... All these tips, for the best interest of your business.”
Franzese also advises his readers to learn from reading more about wise people in history like Niccolò Machiavelli and King Solomon, and “to learn from your failures.” He also added some tips on how to handle yourself in a “sit down.” He warns against gambling, that it can trip your business, as he underlines the danger of bending rules.
Finally, he admits that there is no magic formula to success.