This continuation of the article offers the remaining three principles of transformational leadership lessons as described by Jerold L. Zimmerman and Daniel P. Forrester in their book "Relentless: The Forensics of Mobsters: Business Practices".
3. One size does not fit all
Each leader must design a unique corporate governance system to match their strategy. The Hells Angels and Sinaloa Cartel gangs had different missions and strategies, so their leaders developed unique organisational governance schemes. Although company leaders cannot simply emulate gangster schemes, they must apply the same economic principles when pursuing new strategies that are driven by employees' own interests.
In other words, don't just copy the methods of governance of other companies that are successful in your industry and beyond: this in itself is unlikely to be enough for your company. Understand what motivates your workforce and design jobs, performance measures, reward systems and corporate cultures to create high-performing teams which deliver products and services that exceed your customers' expectations.
4. All parts of a company's management must be coordinated and complementary
Mafia crews would sit all day planning possible robberies. At airports they had informants who provided them with information on valuable outbound loads. The crew hijacked the truck and confiscated the goods, then divided most of the money among themselves. The crew had specific knowledge of the cargo and the gang boss simply gave them his authority. Measuring performance was very simple: money generated without harm to freedom or life. Performance was rewarded with the cash generated. Such a culture attracted and maintained very loyal, resourceful and relentless criminals.
All these elements of the gang leadership are perfectly coordinated and complement one another. All too often, leaders of legitimate businesses use many performance measures that tend to undermine and weaken the efforts of subordinates. But logic lies in simplicity.
5. Be different in organisational culture
Culture consists of values, norms and behaviour. Capable leaders know that aligning across hundreds and even tens of thousands of employees requires time and care. They formulate and strive to live up to those norms, values and behaviours that will drive performance. They know that if they don't do the above, no one will be interested.
In a gang, culture is key. The mafia values immorality, loyalty and ingenuity, and it attracts gangsters with these values. Working in a gang requires uncompromising loyalty and secrecy; for its members, their hard-won place in the group is a matter of prestige. Leaders in companies should strive to build a culture that distinguishes their organisation from others and is unique to its employees.
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