Gangs built on corporate mentality
Adopting best business practices permitted drug trade to flourish

By Susan Chandler
Tribune staff reporter
Published June 13, 2004

The Gangster Disciples and the Black Disciples adopted a pyramid-type organization led by a CEO-type leader. Each had its own board of directors that held regular meetings.

Although they used different designations, both gangs had the equivalent of middle managers who oversaw drug sales, and enforcers who collected fines and administered "violations," physical discipline that went far beyond the corporate norm for poor performance.

While the leaders made fortunes, front-line employees--the street-level gang members who sold drugs--earned roughly the equivalent of minimum wage in many cases, researchers found.

Another thing the gangs had in common with big business: a glass ceiling. An estimated 30 percent of Black Disciples in some parts of the city were women, but they rarely, if ever, rose to prominent positions.


"There are two ways of looking at this data," said one researcher.  "One is that all commercial entities follow the same basic laws of success no matter whether legal or illegal.  The other is that the example fo the drug gangs highlights just how amoral and ruthless most major corporations are."

Some stock analysts, however, saw a third possible interpretive angle.  "These gangs are a terrific investment," enthused Wall Street Broker Ned Leafblower, of the Goldman, Silverback and Copperbottom investment house.  "They've got a thriving business, excellent cash flow, a recession-proof product, solid internal organization, low to no debt load, and years of experience in dealing with competitors.  My God, if they were publicly traded, I'd say buy, buy, buy." 

Others disagreed, pointing to the high level of employee turnover, and the possibility of large back-end costs associated with workmen's compensation claims for injured foot soldiers.  One skeptic noted that product liability lawsuits have nearly destroyed the asbestos industry, and suggested that the possibility of crack-related lawsuits would be enough to scare off most investors not already repulsed by the nature of the business.

Nonetheless, Leafblower is already hard at work an a possible IPO for the Irritable Acquaintances, an offshoot of the Chicago gang the Insane Unknowns.  In fact, he then asked this reporter if it might be possible to redefine crack cocaine as an 'over the counter drug' to allow such a stock offering to go forward.  Told that the federal narcotics laws made that unlikely, he asked "What about calling it an herbal remedy?"

Coming next week in our book review section:  "Leadership Secrets of the Gangster Disciples:  Busting a Cap on Your Organizational Problems," by Ned Leafblower.

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