Outlook; the perspective by which things are seen, is very important because they help form our reality and dictate our circumstance in life. The sentencing of the notorious drug dealer, El Chapo Guzman, to life imprisonment plus an additional thirty years, has made me reflect on the once elusive drug dealer and his success in the drug business. Although morally, I am strongly against drug dealing and drug use, I can’t help but admire the genius of El Chapo when I consider how big his empire was, the amount of financial resources that was at his disposal and how powerful and influential he was as a drug dealer on the run. Forbes had come under criticism twice, both on different occasions in 2009, for naming El Chapo as one of the richest men in the world and also one of the most powerful men on the planet using different ethically neutral parameters as standards. Such were the extents of his influence and riches, that it couldn’t be filtered away by societal perception of morals and ethics. In this article, I’ll be pointing out the valuable business lessons and strategies we can all learn from him and apply to our businesses; lessons that show how he was able to control his vast drug dealing empire, spanning over two continents, while he was on the run from the law and other drug dealing competitors, and also how he was able to corner a large portion of the market for himself despite all the odds stacked against him. The following business principles El Chapo ran the Sinaloa cartel on, should be adopted for business success.
Vision: El Chapo Guzman started his career with the Guadalajara cartel. He quickly rose up the ranks because of his ambition and dedication. However, due to numerous challenges within and outside the cartel, it split into different cartels in 1989. One of those cartels was the Sinaloa cartel with El Chapo as its leader. El Chapo had a lot of ambition and this ambition was what fuelled his vision of running the biggest drug cartel in the world. By the time of his first arrest in 1993 – only 3 years after he became the cartel boss – the Sinaloa cartel was already the biggest drug cartel in the world. He achieved his vision by eliminating the competition and securing a large portion of the drug market through both legal and illegal means, but the focus here, is that he did everything possible to implement and maintain his vision.
Structure: Organizational strategies fail if they are implemented in an environment without structure. When El Chapo was first arrested in 1993, he didn’t escape prison until 2001. During his incarceration, the flow of business within the Sinaloa cartel did not ebb a bit, in fact, it even expanded to other countries during that period. He put in place a structure where he could run his affairs from behind bars. Despite the fact that he was in jail, he was still one of the most feared and respected drug lords in the game. He put adopted a top-to-bottom organisational structure where there are only a few individuals at the top and a lot of soldiers in the middle and at the bottom. This type of structure worked for him when it came to communications. The reason why he was elusive for a long time was because it was difficult to trace communications back to him due to the structure he put in place. Commands passed through a lot of people before getting to those who implemented them. Another notable structure he put in place was in the area of distribution. The message here is to find the structure that works best for your business and the environment you’re operating in. Presently, he is serving life in a super-max facility in the U.S. but the Sinaloa Cartel already has moved on because of the structure he put in place. A predecessor has been chosen and the flow of drugs into the American border hasn’t diminished at all. Structure ensures continuity.
Diversification: One of the reasons the Sinaloa cartel became so rich within a short period was because they extended their operations from the sale of only marijuana and cocaine, to include methamphetamine – popularly known as meth. The sale of meth became the organisations cash cow; with little volumes and cheap production costs they make a lot of profit on meth. Diversification obeys the biblical instruction to cast ones bread upon many waters. Diversification is growth.
Innovation: I’m no supporter of drug dealing but one characteristic I admire the most about the Sinaloa cartel is heir resilience in the face of challenges. No matter the problem, they always come up with a solution. In the early 90’s when the American government tightened its border patrol and clamped down on drug trafficking across the border, the Sinaloa cartel started building tunnels fitted with rail tracks, elevators and ventilation systems underground the U.S border from Mexico for the purpose of trafficking drugs into the country. When this was discovered they started using submarines that were difficult to detect for smuggling the drugs. They always have a solution for every clog in the wheel that disrupted their motion. They are masters of innovation.
Corporate social responsibility: Most South American countries have poor economies. Their governments cannot afford to provide them with basic social amenities. Their youths are unemployed because there are little or no opportunities or hope for the future. The Sinaloa cartel capitalizes on the needs of the people and buys them over. They tar roads, provide communities with drinkable water, build hospitals and give the youth a chance to make a living through drug dealing (even though most of them end up dying because of the drug trade). This is why for a long time El Chapo was beloved in Mexico and local communities protected him making his capture difficult. Corporate social responsibility creates influence and endears an organisation to the society.
Personally, I think the war on drugs is a waste of time. Capturing El Chapo hasn’t affected the trade a bit. Daring people will always face the risks of the drug business because the profits associated with it is just too enticing and worth it. The demand for drugs is also too much, so there’ll always be reasons for its production. Government instead, should legalize it and find a way to control its price and its supply so that it will become less profitable for those who deal in it.
Sopespeaks 