Category: Fight Club

“Among other evils that being unarmed brings you, it causes you to be despised.  That’s Niccolò Machiavelli.  Now get!  I need to use your bathroom.” – The Return of the Texas Chainsaw Massacre

 

LOOK AT THE SIZE OF THAT NOSE!  You could park a jet airliner under that thing!

Niccolò di Bernardo dei Machiavelli, better known to us today as simply Machiavelli, died in 1527.  I know, I know, these posts seem to be stuck in the 1500’s recently – but what better place to study the economic effects of an empire built on plundered gold (LINK), genetics of the amazingly inbred Hapsburgs (LINK) and now . . . political philosophy and business.

Machiavelli, besides having his name turned into a word for amoral behaviors used to get power (Machiavellian) was also a great-great-great-great-grandfather of Madonna, Cher, and Meatloaf which is why they use only one name.

I kid.

Machiavelli’s best known work is The Prince.  Reportedly, he wrote this political philosophy book for Lorenzo de’ Medici.  Niccolò had recently been fired from his job as a diplomat when he wrote The Prince, and back in 1516, being fired didn’t mean “here’s your crap and two weeks’ wages,” it meant, “we just might torture you and imprison you – just because.”  And Machiavelli was tortured by the Medici family – merely because they thought he might have once known a group of people who might have been plotting against Medici rule.

So what does Machiavelli do?  He writes an entire book and dedicates it to one member of the family that tortured him.  Yeah – I guess he missed that job he got fired from.

Note:  All quotes in this post are directly from The Prince.

The Prince has been written about a zillion times.  Heck, I had to write a paper on it when I was in college.  So what’s my take with this post?

Machiavelli wrote the book with an eye to a ruler in 16^th Century Italy.  Does it have applicability in today’s business world?  Let’s see.  Yes.

“Everyone sees what you appear to be, few experience what you really are.” 

I’ll mostly skip chapters 1-5.  Although there is some applicability, I’ll leave you with these notes:

Machiavelli writes about differing kinds of states – including conquered states.  His advice?  Kill off all of the old rulers after you take over a place.  I’ve seen this in business – one factory I knew about was bought by a new company.  Step one?  Fire all of the leadership.  Not some.  All.  Every department head except one was immediately fired and replaced.

To quote Niccolo:

“If an injury has to be done to a man it should be so severe that his vengeance need not be feared.” 

So, if you think you’re not replaceable?  We replace our President every four or eight years.  A business can do without you.  And if you’re bought out?  Getting rid of the leadership is a great way to immediately change the culture of a company.  No mixed loyalties.

If a company or department was ruled by a tyrant, a new leader will find it pretty easy to start out in the department/division/company.  If the previous leader allowed or encouraged a large amount of autonomy and freedom?  You’re going to have problems.  This type of business might be a tough one to lead after you take it over.

“He who wishes to be obeyed must know how to command.” 

Chapter 6:  Conquest by Virtue

When looking at rising to the top, Machiavelli strongly favored doing it based on your own skill and cunning.  This type of power, he felt, was quite durable.  This is the company you built from the ground up – the company you bought with cash, the department manager role you won through years of hard work and dedication.

“The lion cannot protect himself from traps, and the fox cannot defend himself from wolves. One must therefore be a fox to recognize traps, and a lion to frighten wolves.” 

The major danger of this type of power was the idea that you could reform the system after conquering it.  It is difficult to do so:  the people who liked the old systems will fight hard to keep them – those that might benefit from the new system often won’t fight, since the benefits are in the future, and vague.  Machiavelli favored the use of force to make change happen.  And by force, Machiavelli meant swords and such.  Since running down the hallway cutting down poorly performing employees with swords might be a bad idea, you might want to consider firing them instead.

Chapter 7:  Conquest by Fortune

This is the power that you get when you’re appointed – you have powerful backers that want you to have the job/company.  Whereas when you take a business over due to virtue (above), here you have to make the people that put you into power happy, as well as deal with the people in the company or department.  If you’re lucky, and very, very good, you can keep the job after your father-in-law retires.  But it’s not likely.

“A prudent man should always follow in the path trodden by great men and imitate those who are most excellent, so that if he does not attain to their greatness, at any rate he will get some tinge of it.” 

Chapter 8:  Conquest by Criminal Virtue

If you’re going to take over a place via immoral means, Machiavelli says to do all of the evil up front.  If done completely enough, then you can (over time) make people forget your cruel and wicked actions over time.  The worst of all possible immoral takeovers is one where the cruelty and evil continue over time.

I don’t really recommend this, but we see it all of the time, and the people who do it are amazingly rich.

Hmmm, maybe I should consider evil?

“The promise given was a necessity of the past: the word broken is a necessity of the present.” 

Chapter 15:  Reputation of A Prince

Machiavelli didn’t think much of the common man:

“How we live is so different from how we ought to live that he who studies what ought to be done rather than what is done will learn the way to his downfall rather than to his preservation.” 

But that’s plain enough.  As a manager, what do you think your reputation should be?  Here, Niccolo cuts to the quick:

“And here comes in the question whether it is better to be loved rather than feared, or feared rather than loved. It might perhaps be answered that we should wish to be both; but since love and fear can hardly exist together, if we must choose between them, it is far safer to be feared than loved.” 

Ouch!

But he’s right.  If people love you, they can discount that feeling, especially at times when they feel joy.  But if they fear you?  They will be vigilant every minute of every day.  Fear is a much more potent motivator than love – just ask Maslow (LINK).

How does this apply at work?  Sadly, as a manager you have to remove yourself from the after work drinks.  You have to remove yourself from the “work parties.”  You have to be above and beyond that.  If you are just another person in the group?  Your authority means nothing.  And you have to use your authority – quickly and suddenly, but with complete justification every so often.  Why?  Because theory would say you should know more than your employees – at least occasionally.  Unless you use it – it won’t exist.

Chapter 16:  Generosity vs. Parsimony

It’s a sad state of affairs – if you’re generous, people don’t appreciate it – they simply want more.

“Of mankind we may say in general they are fickle, hypocritical, and greedy of gain.” 

And if you’re generous with your employees?  Oddly, it makes them respect you less.  Yes.  Less.  If you have to pick a reputation, being cheap is better than generosity.  People understand cheap.  Your employees understand cheap.  They have to make choices everyday with their money.  Being generous just means you’ve got so much money that your generosity means nothing . . . .

Chapter 17:  Cruelty vs. Mercy

“Men worry less about doing an injury to one who makes himself loved than to one who makes himself feared.”

Machiavelli is pretty simple in this chapter.  Create fear if it helps you – the idea is that fear should help your business.  But if it’s excessive?  Eventually people will leave you.

I’m sad to say that being cruel is a much better way to create loyalty than being nice – it seems that’s just how humanity works.   A strong man who is justifiably cruel gets our respect over someone who loves us.  Every time.

Chapter 18:  Keeping A Prince’s Word

“He should appear to be compassionate, faithful to his word, guileless, and devout. And indeed he should be so. But his disposition should be such that, if he needs to be the opposite, he knows how.”

A Prince should be virtuous.  A Prince should look virtuous.  A Prince knows when not to be virtuous.  Your team, your group, your company will look the other way when you decide the company is more important than your compassion.  Oddly?  They will love you for it.

Chapter 22:  Nobles and Staff

Get good people to work for you.  Make them loyal to you.  Value competence over cool tee-shirts.

“Because there are three classes of intellects: one which comprehends by itself; another which appreciates what others comprehend; and a third which neither comprehends by itself nor by the showing of others; the first is the most excellent, the second is good, the third is useless.” 

Don’t have idiots on your staff.  And understand the differences between intellects.

Chapter 23:  Avoid Flatterers

This might be the most powerful quote by Machiavelli, well, ever:

“There is no other way to guard yourself against flattery than by making men understand that telling you the truth will not offend you.” 

If you hide yourself from the actual truth, and punish those that would tell the truth to you?  Well, the game is over.

“Men are so happily absorbed in their own affairs and indulge in such self-deception that it is difficult for them not to fall victim to this plague; and some efforts to protect oneself from flatterers involve the risk of becoming despised.”

If you’re a leader?  Being despised is the end.

Chapter 25:  Fortune

Here Machiavelli starts looking at risk.  Here’s a rough passage, if you’re a feminist:

“It is better to be impetuous than cautious, because fortune is a woman; and it is necessary, if one wants to hold her down, to beat her and strike her down.”

Well.

Anyhow – Machiavelli makes a great point:  risk is not an enemy.  Risk is risk.  And when you’re in a risky situation at work, why not take it up a notch?

Actual story:  I knew that my boss had interviewed (don’t ask me how) someone for my position.  At the next available opportunity, I asked him about it.

I’ve never enjoyed a work situation more.  “How did you know?”

My response:  “If I told you, would you ever trust me with a secret?”

The look on his face was priceless.

When you have nothing to lose?  Doubling down is for sissies.  Go all in.

Remember this:

“If an injury has to be done to a man it should be so severe that his vengeance need not be feared.” 

‘nuff said.

“But you can’t hold a whole fraternity responsible for the behavior of a few, sick twisted individuals.  For if you do, then shouldn’t we blame the whole fraternity system?  And if the whole fraternity system is guilty, then isn’t this an indictment of our educational institutions in general?  I put it to you, Greg – isn’t this an indictment of our entire American society?  Well, you can do whatever you want to us, but we’re not going to sit here and listen to you badmouth the United States of America.  Gentlemen!” – Animal House

Pugsley climbing a climbing wall.  Not pictured:  college degree he earned.

Last week we reviewed how college may provide (does provide) a lot of poor choices for student degrees – essentially you can get a degree that’s not worth very much to any employer.  But, thankfully, in an era where I can look up the most obscure facts online, I can count on college being cheaper now?

No.  It’s more expensive than ever.

Huh?  You have a service that more people are requesting, one that’s essentially unlimited since Wikipedia® is free, and the prices go up?

Yes.  But Wikipedia™ does not have climbing walls.

At least colleges are paying more for instructors/professors, right?

No.  Colleges are increasingly pushing instruction onto “adjunct” instructors.  These adjunct instructors are generally paid in PEZ® and pity.  If the college feels guilty, it leaves a little extra on the nightstand in the morning.

How much have prices gone up?

Prices have gone up everywhere, but let’s pick Harvard™.  In 1970, Harvard cost about $4,000 a year for tuition.  Not bad?  Well, the median family income was about $10,000 back then, so, not so bad.  If you hustled you could (with a small scholarship and working a pizza delivery job) make it.

Harvard now costs over $43,000 a year.  Median family income is closer to $60,000 a year, so prices (in terms of a family income) are up over 180%.  But Harvard® has literally billions of dollars in a cash horde that the administration rolls in when they can’t get enough sleep.  Other colleges have gone up more.  Much more.  One state school has gone up (since 1980) from $6,000 tuition to $40,000.  This is more than Harvard’s 180%, but I won’t do the math because I’m feeling like I don’t want to.  Oh!  The solution is left to the student!  Yeah, that’s what the books said . . .

So why are prices going up?

One theory, and it’s a good one, is student loans.  Student loans were created as a mechanism to trap young people into debt before they can legally buy whiskey means to allow anyone to go to school as long as they were willing to borrow enough money.

Student loan debt is the very worst kind of debt I know of that doesn’t involve a blood oath with the Mafia.  It is the herpes of debt.

Just like herpes is incurable and makes you (when disclosed) a lot less attractive to the opposite sex (or same sex, or whatever combinations including androids that are possible in California) student loan debt makes you less attractive.  And you can’t declare bankruptcy and get out of student loan debt.  Again, like herpes, it’s forever.  Unlike herpes, you can pay your debt down to zero.

But you should avoid both of them, if you can.  Debt, especially student loan debt, will outlast your mortgage.  I bought and sold four houses, three unicorns and one wife before I paid off my student loan.

I met him.  Nice guy.  But he never did a song about a unicorn or a Pegasus.

But why would student loans cause the cost of college to increase? 

Simply put, there’s more money available?  The colleges most exposed to student loans increased their tuition the most.  Quite simply – tuition expands to consume as much money as you can feed it.  There’s a pretty comprehensive study that proves it – you can find the info here (LINK).  What, am I supposed to do all of your research?

So where is the money going?

PEZ® for the adjunct professors?  No.  Administrators.  I’ve seen this before in other organizations that aren’t subject to market punishment (like, say, your friendly federal or state government or school district).  One administrator has a job.  It’s not a hard job, but it’s his (or hers).  They are paid, at least partially, on the number of staff that they have.  So, they get approved positions for “essential” work.  Soon enough, a job that was barely important enough for one person is now down by a staff of thirty.  (This tendency will be discussed again in a future post, and was discussed in “Government is a Jobs Program here (LINK).)

Professor Doom is a very good writer.  His blog is “Confessions of a College Professor” and I strongly suggest that you read it, especially if you are certain that colleges are bastions of honor, learning, and goodness.  Recently, the learned Professor had a post where he described that at Evergreen College in Washington State, that there is one administrator for every six students.  I kid you not.  Here’s the link (LINK).

But the education is better, right?

Again, I’ll have to defer to Professor Doom.  He writes again and again how grade inflation has taken off (LINK).  I tried to find his post about how, due to a computer error, bunches of students at a school he was at were signed up for a class AFTER they got their schedules.

When this error was discovered at the end of the semester, fully a third of students (who had never attended class) had an “A” in the class that they had never been to and weren’t aware of.  Yeah, you read that right.

In at least a third of your classes, you never need attend and you’ll pull an “A”.

Wow.  That’s not really education at all, except maybe in the “son or daughter of a President or Senator who gets on a corporate board of directors because they can fog a mirror” way.

Why?

On snowy day a long time ago I decided I wanted to teach.  A new college had come to town – I had never heard of it, “University of Phoenix™.”  They put an ad out looking for faculty, and I sent in my résumé.  Or rësümë if you’re in a 1980’s hair metal band.

Well, in the 1980’s I had hair . . .

I got an immediate call back.  Pretty soon I was in “New Faculty Training” – which included a batch of people with master’s degrees.  Most of us had teaching experience at the undergraduate level – that was, back in the day, how you paid to go to grad school.

We sat in a circle and discussed how to teach at the University.  We would get stock options if we did well.  The curriculum was set, and it was explained to us that the students were often working.  And had a tough time.  So we shouldn’t treat them exactly as students.

Think of them as customers instead, we were told.

So, what if a student never came to class?

“Well, they’re paying for it, so, it’s not a problem.”

What if a student didn’t turn in an assignment?

“You should give them a chance to turn it in late – they might have had a sick kid.”

One of the prospective faculty got pretty blunt:  “So, we shouldn’t flunk them?”

The leader of the orientation paused.   “Well, not if you can help it.”

So, a course you didn’t have to show up for, you could turn in assignments late, and would almost never flunk?  That sounds like the state of higher education today.

That was my last meeting with the University of Phoenix©.

Was it a smart financial move?  I just checked.  I wouldn’t have been a billionaire if I would have stayed with them.  So, whew.

What happened, John Wilder?

Prior to our current generation, college had been about the reputation of the institution and the graduates.  If you were a Harvard® man or a Vanderbilt™ grad, that meant something.  Not only was the curriculum difficult, but you only had a very small chance of even getting into the place.

The reputation of the school was that it was difficult – only the best should try to get in.  Only the best will succeed.  The often repeated story was of a Dean getting up before the freshman and saying, “look to your left . . . now look to your right.  Only one of you will be here in four years.”

That was something they were proud of.  If you didn’t dig in and study, well, you’re gone.  That enhances the value of the school’s name.

This was important.  The school would rather eat a kitten (an actual, living kitten without condiments like creamy horseradish sauce that go great with kitten) than put a graduate out that wasn’t up to their standards.

Now?  Students are “customers” and the administration wants as many of them as possible so they can spawn a never ending series of administrator clones (college administrators reproduce asexually) to bring into the college administration.  They don’t want to kick a student out, because that would mean that they would lose the precious, precious money that the student brings in.  So they need things to attract more customers.  Like elephant rides.  Free panty hose.  Margarita Tuesday.

Oh, did I mention that our college has climbing walls?