The Godfather’s guide to business

A businessman I know came up with an interesting idea the other day, which he shared with me. He wants to create a team of "consultants" that will deal with labor disputes, disagreements with contractors, shoddy workmanship, and all the other nagging headaches of running a business. Moreover, he wants to offer this service to other businesses – for a fee. We were kicking around names for the new venture: "Goons R Us" came up first; "Torture, Inc." was a close second.

We were half-kidding, of course. But the fact is, running a business in Manila these days can be an ulcerous proposition. Contrary to popular belief, not all business people are happily swilling champagne and floating around in hot tubs. More likely, they’re swilling Alka-Seltzer and floating around in debt. Small businesses, in particular, have been hard-hit by the political uncertainty in the Philippines. Yet entrepreneurs are the ones who really go out on a limb, who risk investing their money to support a pyramid of other industries (labor, construction, suppliers, advertisers, etc.), meanwhile trying to eke out a profit for themselves.

Any lawyer will tell you that labor laws in the Philippines are skewed pretty heavily toward the worker. It’s not easy to dismiss a regular employee, for instance, even if he steals from you. And there are few legal safeguards against dishonest contractors. (Try getting a fly-by-night contractor to return your call someday, and see what I mean.)

Thus, I started thinking seriously about my colleague’s proposal. I decided, in the spirit of research, to review one of the classics of business management, to find out what it can tell us about today’s business climate.

Yes, I decided to watch The Godfather again, for the 27th time.

As you may recall, this is a film about a family of murderous thugs, coldhearted killers and ruthless businessmen. In short, it’s perfect for the current business climate in the Philippines. Here, many businessmen I know are just a phone call away from having somebody whacked – whether it’s a pesky government official looking for a kickback, a dismissed employee trying to make trouble, or a contractor who fails to finish his job. These people need expert advice from people who know about business. Who better than the Corleone family? And after all, if they can put out business books based on the teachings of Dilbert and Winnie the Pooh, why not The Godfather? You got a problem with that?

The Corleone family, as depicted in Francis Ford Coppola’s masterpiece, starts out as fairly honest and hard-working. In Godfather II, through flashbacks, we learn that Vito Corleone was an ambitious floor-sweeper somewhere in New York’s Italian neighborhoods. He was only pushed into crime by the heavy-handed Don Fanucci (whom Corleone later personally downsizes). The Godfather is shown to be a man who thinks of family, above all. "A man who doesn’t spend time with his family can never be a real man," Don Corleone observes. Of course, he says this in between scheduling a horse decapitation and a few broken legs. The lesson is: All things should be taken in moderation. You can allow time for business, as well as find time for the things that truly make life meaningful.

Let’s examine some other bits of wisdom espoused by Don Corleone and the characters in The Godfather, as well as some not-so-wise precepts taken up by his son, Michael Corleone, in Godfather II.

• "Someday – and that day may never come – I may call upon you to do a small service for me." With these simple words, Don Corleone explains the terms of doing business the Godfather way. How true this is in the Philippines, where utang na loob is the first principle of business and most social circles. Business owners and managers understand the importance of dispensing favors – and asking for loyalty and service in return.

• "Go to the mattresses." This line, also quoted by Tom Hanks in You’ve Got Mail, refers to the mob style of warfare: Get 20 or so guys together, put them up in a barracks where they can eat, sleep and act as your personal army on a 24-hour basis. In business, this means fight, fight, fight. One hundred percent commitment from everybody.

• "Mr. Corleone is a man who insists on hearing bad news immediately." Nobody likes hearing bad news, but at least in The Godfather, nobody passes the buck. If only all employees were as diligent about reporting problems, it would be easier for managers to find quick solutions. Time is money, and nothing gets accomplished by covering up a problem.

• "Never tell anyone outside the family what you’re thinking." When a disagreement crops up with an employee or manager, and you find you must chew somebody’s head off, don’t make a public display of it: Remember that everybody in your business has ears, and it’s best to handle problems in private. Remember Don Corleone’s wise words to Sonny after meeting with Sollozzo.

• "You come to me on the day of my daughter’s wedding, and ask me to do murder?" Here we see the importance of separating business and pleasure. Don Corleone was understandably upset by such a crass request on such a sacred occasion. Good managers know where and when to draw the line between family obligations and business, otherwise they spend all their time taking their work home with them. Another tip: Leave the cell phone off during family dinners.

• "I want you to use all your powers, and all your skills…" The gentle art of persuasion, Godfather-style, as Don Corleone asks an undertaker who owes him a debt of gratitude to restore Sonny’s bullet-riddled body for his funeral. Put into practice, we can conclude that managers must often employ finesse and subtle flattery to motivate their staff to get the best results. A compliment never hurts, capice?

• "It’s not personal. It’s strictly business." This pretty much sums it up for Godfather fans. Unfortunately, this line also gets Michael Corleone into deeper and deeper trouble in Godfather II, as he attempts to take over the business from his father, Vito Corleone. Such ruthless commitment to results and the bottom line can cost many a family tie. This line segues neatly into Michael’s other philosophic gem of malice and mayhem: "If history has taught us anything, it’s that anyone can be killed." (From Godfather II.)

• "Leave the gun. Take the cannoli." A simple command, delivered by capo Clemenza after a roadside hit. In business, this means prioritize everything: figure out what needs to be done today, tomorrow, next week, five years from now. Don’t waste time on unnecessary tasks, and spend your working hours wisely. Else you could wind up sleeping with the fishes.

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These, in summary form, are the basic principles of The Godfather’s Guide to Business. I hope no one is disappointed that I didn’t include tips on maiming, garroting, extorting, collecting, burying or disposing. (These methods should be considered only as a last resort.) If you feel you need more guidance in such matters, you may want to check out the other volumes in this self-help series, The Gladiator’s Guide to Negotiating and Crouching Lawyer, Hidden Tax Break.