Kingpins & The Art of Business Management

While watching Satya (for the n^th time) for the purposes of putting together my previous post, I was struck by the similarities between the underworld and the corporate world. The thought lingered with me and the deeper I dug, the more I realised that save for the most obvious difference in how each world makes its money there are actually several uncanny similarities between them.

What we get to hear about the underworld is the high life, the women, the guns, the thrills and chills, the swagger of the dons, the drugs, the dalliances, the money, the fast life, the risks, the scores, the lingo … the works. It’s pure showbiz the way it is portrayed. But with an inherent risk. And no small risk at that, but the risk of losing one’s life at the pull of a trigger.

But go beneath the veneer and what you get is a well-oiled machinery. An enterprise. Or as Ram Gopal Varma put it – a Company. The underworld is a company that is run like any other company that does legal business. Probably one that has more ethics (since everything is sealed with a handshake and the solemnity of one’s word) than the holier-than-thou corporates that embroil themselves in scams and malpractices despite having some of the most stringent processes and some of the best firms auditing every single transaction.

All the best practices that we get to learn in management are seen in action in the underworld, and then some. I was gratified to get some affirmation of my thought process when I chanced upon a book titled Kingpin: Legal Lessons from the Underworld, by Sarah Bartholomeusz.

It deals with case studies of seven hugely successful drug kingpins, including Dawood Ibrahim, and gives a perspective on the legal principles they ended up successfully applying, obviously without the knowledge that they were doing so, to further their trade to dizzying heights. I will, however, be dwelling on some commonly known management principles.

While leafing through the book, I found a paragraph that appears in the preface particularly apt for the topic at hand –

“While the Kingpins as leaders operate within a similar rule set to executives, they come from widely differing experience bases and they build their businesses in an environment of extreme volatility. Their responses to compliance situations are not curtailed by the law, best practice or – at times – even logic. This makes them some of the most innovative and creative business leaders in the world, for better and for worse, and they therefore provide us with lessons that are simply unavailable through the study of mainstream leaders.”

Once again, like in the case of my previous post, since the topic was wide ranging, I have given it a structure that helped me crystallise my thoughts that much more effectively. To do so I have used common business/management terms to illustrate the similarities between the corporate world and the underworld. Ms. Bartholomeusz’s book did provide me with a framework of corporate principles that could be applied, like – to evaluate ‘success’ in the drug trade, the factors considered include:

• The accumulation of wealth

• The pace at which the Kingpins rose to power

• Innovation in production, logistics and marketing methodologies

• Sophistication of the supply chain

• Global market share

• Geographical reach of their organisation

• Political partnerships

• Community leadership, and

• Longevity

Not only did I not have first-hand knowledge of many of these (nor do I ever intend to accumulate it either!), but also because more than evaluating critical success factors the purview of my post was limited to just drawing out similarities.

I have also deliberately avoided naming the real-life characters whose commonly reported or hypothesised exploits have formed the basis of my post. Doing so would have not only meant having conclusive first-hand information, but by attributing all hearsay to specific individuals it would have made me sound like one of those who revel in holding the attention of an audience by speaking in conspiratorial tones as if they were a fly on the wall when certain incidences were unfolding. My post is about generalities, not specificities.

(N.B.: For purposes of brevity and to avoid an overload of the term I will be referring to the underworld / underworld enterprise as Company.)

Let’s dive right into it then …

BUSINESS OBJECTIVES

Every Company is clear in its reason to exist, its purpose, if I were to borrow the management mantra that’s been trending for some time now. And that is to make disproportionate amounts of money with the ultimate aim of world domination. Of course, the size of the world differs with the different sizes of the Company – in some cases it is becoming ‘world famous’ in a precinct, a city, a province or a region. Some of the bigger ones have a hold over an entire country, even. They are the truly world-famous ones and their area of operations straddle continents.  But there is no doubt that every Company enters a business with the sole objective of getting disproportionate returns with the minimum of investments.

The assets they invest in are the guns and the requisite ammo for them. Technology does play a role in ensuring that they are always beyond the grasp of the authorities. If you remember there is free use of mobile phones in Satya. Today it may not sound such a big thing, but when Satya was made owning a mobile was a luxury - outgoing calls being charged at Rs. 32 and incoming calls at Rs. 16! But for the gang it was an essential expense, or rather investment, in having real time updates on activities. The investments in technology that today’s Companies make are in satellite phones, dark web, blockchain, crypto, etc.

Beyond equipment and technology, the other critical expense/investment is that in human capital which is their biggest asset – more on that later in the post. But to get their business off the ground, a Company gets straight into action. No board level meetings in fancy resorts over a weekend. No hifalutin jargon. No hiding behind words. No lofty mission and vision and purpose statements which are derived by juggling a bunch of adjectives around by consultancies that cost an arm, leg, and many critical body parts.

Once the most profitable segment/category has been identified, the Company gets down to business right away. Territories are earmarked. And every existing and upcoming competition is either crushed into submission or oblivion. There is no limit to what extent the representatives of a Company can go to, to decimate competition. In doing so there is literal bloodshed, not the metaphorical one that we get to read about in the corporate world. One gets coverage on the front pages of tabloids, while the other one gets covered on front pages of financial dailies. But bloodshed there is.

Once domination is established comes the business of nurturing, growing and most importantly protecting the territory of the Company from Johnny-come-lately’s. To do that, the Company must now embark upon setting order and define the rules of the game. Which brings us to …

ORGANISATIONAL STRUCTURE

In the deep dark bowels of the underworld order must be maintained

Without a strict and unforgiving chain of command, chaos is inevitable

Wazup youngsta since you’re tha new booty and don’t know nuttin,

I gotta show ya ‘bout the peckin' order

It’s the order in how we do things and move things

See somebody gonna tell you what to do

After I tell that muthafucka what to do.

–  The Peckin’ Order, by Ice Cube, War & Peace, Volume 1 – The War Disc

I am sure most of you who have worked in any kind of corporate would have heard a politically correct and palatable version of the above lyrics. There is never any doubt about who’s the Boss in the Company. (Becoming a boss is a different process that I will deal with in the HR Policies section.) The pecking order is made very clear to everyone in the Company.

However, unlike in the corporate world, in the Company the organisational structure is pretty flat with clear-cut territories and well-defined job definitions. No room for ambiguities. There is freedom of movement and freedom of doing your own thing as long as you rake in the moolah and don’t step out of line. The reporting structure is not complicated, and neither is the escalation matrix. While generally there is a freehand given, there are certain functions/acts that have an undefined pay grade aspect to them and hence an upward escalation is deemed critical and essential.

There is also no freedom of speech when the Boss is talking. There is no façade or a charade of a consensus building approach. The Boss’s word is final. (Remember Sonny Corleone getting an earful from the Don after he opens his mouth in their discussions with Solozzo?) The final decision rests with the Boss. There are no two ways about that. If you disobey, you die. If you are lucky to escape alive, then you set up your own Company.

TALENT ACQUISITION & MANAGEMENT

The HR & Recruitment policies of a Company are decided by the Big Boss. He draws inspiration from his own life experiences. He realises that he is different from the rest of the crowd. He knows that it is his ability to take split second decisions that separates him from his cronies. For him time is of essence. And in the case of the Company, time is not just money. It also means life. The Big Boss is a source of inspiration and learning for eager beavers in his fold. And it is he who decides on what kind of talent he wants in his Company.

A general rule of thumb that is followed is – hire attitude, teach skills.

Yes, attitude is a double-edged sword as it has an undercurrent of ambition as well. But if it serves the purpose then the Boss is willing to take that risk. There is, however, always the risk that someone might want to usurp the Boss’s position or authority which makes the Boss extremely insecure. But that insecurity keeps him, and as an outcome the Company, on its toes.

Recruitment is never a problem for the Company. There is never any shortage of new recruits. Poverty and desperation are key factors that lead young impressionable guys (mostly) to gravitate towards the Company. But it’s not as if everyone is welcome all the time. Strong referrals from the current workforce play a big role in recruiting. The Big Boss looks for the ‘spark’ in young new recruits.

There is a probation period in which the recruit is ‘tested’ for his ‘abilities’. The scale of jobs is increased and his performance under pressure is checked by his immediate bosses. Darwin’s Theory is well applied. Only the fit (who hit) survive. The others just vanish from the scene.

Performance is instantly rewarded. Instant promotions with no formal appraisals. Performance indices are also quite well defined – clout will get you so much, robberies will get you a little more, extortion will get you a lot more, homicide is the most rewarded. But the main KRAs are the amount of money you make, and the power you wield on behalf of the Company. With every rung of the ladder you climb, the more your esteem goes up. The higher you climb, the more you are entitled to.

The Company perquisites are also quite lucrative. Not only does being part of a Company give the recruit an immediate respectability arising primarily out of fear, but it also gives them some extra spending power, thanks to cash rolling in with regularity. A lot of expenses are also done on the company account. Besides the free flow of cash, there is also the added benefit that promising recruits get in terms of company accommodation. Prime areas of action are also awarded and these act as motivators. Essentially the Company deploys these perquisites with the aim of securing long term loyalty from its employees.

Like almost all corporates have a star performer or lister program, so does the Company. Exceptions to the Company policy of sequential growth can always be expected. All it takes is ONE BIG HIT. Then it’s like being made the CEO in the 4^th year of your professional career. The onus is on the Boss to quickly recognise the young recruit’s talent and reward it. Failure to do so could result in the Boss himself being caught with his pants down (probably literally as well) by the young recruit thereby ending his career.

‘Getting Made’ is a big thing in the Company. Consistent performance on all counts over a period of time will enhance a recruit’s chances of getting made. It is like being honoured as a star performer and deputed to global HQ in a corporate. Remember the scene in Goodfellas where Joe Pesci is really excited about getting made? He gets a new suit and all on the day of his ‘coronation’.

Lateral movements are commonplace in the Company. These inevitably arise out of the inability of existing area managers to carry on their role having abruptly set up a meeting with their maker. There is a job reshuffle that constantly happens in the Company. Those who go through this shuffle successfully improve their chances of making it to the table in boardroom meetings.

For a job profile that thrives on insecurity, there is tremendous job security in the Company – not only are you well taken care of, but your family benefits too if you are not around or if your career is cut short by unforeseen circumstances.

BUSINESS EXPANSION & DIVERSIFICATION

The Company is always sniffing for new opportunities to make more money. The businesses could be varied – drugs, prostitution, extortion, gold, betting, gambling, movies, hotels, real estate, films … even paan masala, for crying out loud! But they all operate on one underlying proposition – they must make disproportionate amounts of money for the Company.

Diversifying into uncharted waters is a bloody affair in the corporate world, albeit figuratively. In the case of the Company, it is literally. It’s about encroaching on to someone else’s territory. One needs a sanction to do that, but once that is in place then there is an all-out effort to grab share of the spoils. Competition with rival Companies can often result in death, but that is considered the necessary cost of doing business.

The potential of the new business is obviously evaluated in terms of the returns and revenues that will add to the kitty. At the same time, its potential to be legit is also checked out. Other factors like an increase in political connections, etc are also major determining factors. Sometimes it can be a strategic move to be a deterrent to other players. The underworld thus effectively uses a flanking strategy in its operations.

The distribution networks require great sophistication because the Company reps must move both the product and the profits in secret, while constantly manoeuvring to avoid arrest or death.

MARKET INTELLIGENCE

Market intelligence plays a big role in the longevity of the Company. Competition lurks in every corner, waiting to exploit the smallest opportunity to advance in the power hierarchy. This intense business environment challenges its leaders to innovate to survive. The Company is always on the lookout to making their businesses legit all the time, and technology offers them some respite in doing so. For people who are woefully short on formal education, the ability of the managers of the Company to be on top of the latest tech innovations is quite astounding. Their brains are wired to think about how to subvert or circumvent the authorities all the time. So, the moment they are made aware of any new technological leap, their brains start whirring on how to capitalise on it for their benefit as well as survival. For e.g., while the world was marvelling at the fantastic things that the Internet could make possible, the Company had already made forays into it by making porn, and as a logical outcome escorts, as easily available at the click of a mouse. Similarly, while the best of us are still figuring out what blockchain and cryptocurrency is and how to optimise its powers, the Company has long been at it in utilising its greatest feature of giving anonymity while receiving and transferring obscene amounts of money across the world without its inherent resident risks. The dark web and crypto are the lethal combo behind the globalisation of the drug trade.

It’s true that with money comes power, but sometimes the ventures the Company forays into are purely to do with getting more power. The money then surely follows. And this is where M&As (mergers and acquisitions, for the uninitiated) play a big role. The operating principle being either ‘The enemy’s enemy is your friend’ OR ‘You are better at this than I am, but I am better than you in that. So, let’s get together and be the best in everything.’ The Company’s M&A’s also fall flat just the way it happens in the corporate world. Either one completely gulps down the other or both go down together.

The best way for the Company to go fully legit is by entering the public domain via politics. It is the ultimate power trip as not only does the money keep rolling in, but untouchability by authorities is also virtually guaranteed. Not to mention the ego trip of becoming the hunters as against being the hunted. But this is a long haul and only the very best and most savvy among the Company bosses if ever make it to that level.

CUSTOMER SERVICE

The Boss might be known as a kingpin, but just like in the corporate world, so too in the Company, customer is the real king. And just like the corporate world has B2B and B2C customers, so does the Company. The B2B customers are the dealer network that the Company relies on for distribution, offtake and collection, while the B2C customers are the end consumers of the Company’s product line. For the dealership network, the Company’s customer service purview ranges from timely replenishment of stocks, protection from authorities, timely transactions with or without credit period, intervention when threatened by rival companies and regular increase in margins by controlling the pricing trajectory. For the end customers it is about delivering quality product time after time - every time. That is how the Company’s network, aura and power spreads. Occasional blips like the Boss being put behind bars do not come in the way of the CRM program as the Boss continues to wield the same influence - albeit remotely. The authorities are suitably rewarded for permitting the Company to continue operations from the inside. But the mantra of ‘customer is king’ is never compromised. Because even the slightest of slights to the customer means risking the business being moved elsewhere - which can be a bloody affair and is not in anyone’s benefit. Violators of CRM principles are dealt with immediately and severely to pass on a message to the entire ecosystem that deviation that puts the business at risk by pissing off a customer will not be tolerated.

PUBLIC RELATIONS

The Company realizes the potential of PR in building an aura about the Company’s achievements. Each move of theirs makes the headlines. Stories of the legend of the Big Boss are routinely floated to make the Company attractive for freshers. While the gory part of the business gets more print space, efforts are always on to present a more human, charitable and patriotic face of the Company. Every Company boss sees a Robinhood in himself. His fight is not against other Company bosses. His fight is about right and wrong. About righting the wrongs. Against more people of his ilk. Against the corrupt system. In a way it’s like how the corporate world would like to harp about its CSR activities and miniscule ESG compliant practices in its corporate campaigns and annual reports to keep the woke activists at bay, while indulging in potentially harmful business practices that keep the shareholders happy. It’s a bit like every liquor company saying, ‘Drink Responsibly’.

PIVOTING

As we see very often in the corporate world, pivoting is one of the most difficult decisions – it can either make or break a company. Pivoting is about being practical and not about living on one’s laurels. It is about having foresight and the guts to take that one life changing decision. It’s about embarking upon an alternate business that will give returns and maintain shareholder value. Visionary Company leaders chase higher aspirations, applying their capabilities to a broader range of challenges and loftier goals. There are no emotions attached. And when there are, they often result in the demise of the corporate. Something similar happens in the Company as well.

In the case of the Company, there are 2 kinds of pivoting – one is when the boss decides to get out of a failing enterprise and embark on a new venture. The truly long-lasting Companies have mastered this art. The erstwhile bosses or even some of the current ones were simply not able to keep up with the times and were forced into retirement or into a casket. And then there are those who quickly pivoted from petty crimes to going in for the big ones that made them indispensable to the ruling establishments. The other kind of pivoting is about leaving the Company and leading the life of a schnook (as Ray Liotta playing Henry Hill says as the parting shot in Goodfellas). Not everyone is successful in doing that. Because what the HR policies in the Company make very clear to every recruit is that ‘you can check in any time you like, but you can never leave.’

While I have touched upon some of the more obvious, and softer, aspects when it comes to similarities between the corporate world and the underworld, there is obviously a lot of stuff that I will have missed out on. Drawing out these comparisons is not about glorifying or legitimising the doings of the underworld, but the attempt is to give a perspective on how to see the underworld’s activities not just as nefarious, but as regular business practices, albeit in a different, more violent setting.

To conclude I will share an extract of the foreword by Prof Roy Green from the book I have mentioned above:

“When we suspend moral judgement, we are presented with a unique opportunity to learn technical skills from innovators playing for high stakes in an extreme environment …

The most successful Kingpins are single-minded leaders who innovate, adapt, focus on customer service, create a brand, outsource all but their specialised skills, control strategic aspects of distribution, manage risk, hire diverse employees and cultivate relationships to gain a business advantage.

You can deny the Kingpins’ moral and social legitimacy, but it is much harder to deny the resilience of their business models and the persuasive lessons to be learned from them.”

Be braver. Be kinder.

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For Keep Watching this time, I am sharing reviews of two Hindi web series that I watched recently. Both have the underworld as their theme - one has the Mumbai underworld, while the other has the Jharkhand underworld. One touches upon the web that the don is able to spin, while the other is about how technology is used to fleece unsuspecting citizens. Both have the underworld-police-politician-fourth estate nexus front and centre. Pertinent, I thought, considering the topic of this post.

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Based on the book by erstwhile journalist Jigna Vora on her experiences of being imprisoned in Byculla jail, Scoop takes us into the world of the dog-eat-dog world of crime reporting. A world where the lines between right and wrong & ethical and unethical are always blurred. It’s an autobiographical series in which an ambitious crime reporter manages to find herself in the crosshairs and crossfires of underworld don Chhota Rajan, the ATS, Mumbai police, politicians and the media. While the premise is promising, the execution is not. It’s quite underwhelming from being able to reach its potential of becoming a gripping story. And overwhelming at the same time with the sheer number of characters involved where not one character is fully etched out or established. Karishma Tanna as the lead protagonist manages to evoke some sympathy for her character. The rest of the cast is quite sketchy as are their performances, as is tue direction which seems quite amateurish. This scoop on a red hot real life event turns out to be like a scoop of melted ice cream - the flavour is there but it’s diluted.

Scoop | Netflix | 6 episodes

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What do you get when an entire town is in on scams that touch epic proportions? What do you get when phishing is a cottage industry in a town? What do you get when youth across the age, sex, religion and caste spectrum don’t see anything wrong in what they do? What do you get when the police, public, politicians, media and bureaucracy are all hand in glove all the time? And what do you get when the perpetrators also become victims of their own doing? You get Jamtara. This series based on the phishing capital of India takes an in-depth look at how the scams take on newer and newer avatars with the active patronage of the powers-that-be. Though full of Hindi heartland tropes, foul language and corrupt politicians that we have so gotten used to, Jamtara still manages to make you wince at the various gory events, and makes you watch with disbelief at the ingenuity shown by the scamsters that unfolds with routine regularity. Brilliant performances by all, bar none. Amit Sial and Seema Pahwa stand out.

Jamtara | Netflix | 2 Seasons