James Murdoch and why we don’t endorse mafia tactics here
The last thing we were expecting here at MT towers was to be dragged into the hackgate saga. But yesterday it came to pass. During the cross examination of James Murdoch Tory MP Damian Collins said to the 39 year old sweating in the dock that his approach to running his business “may not be the Mafia, but it is not exactly Management Today, not out of a management textbook”. I’ve offered Mr Collins a life subscription to the magazine and I’m sure he’ll put it on his expenses. It will do him far more good than a duck house.
We were naturally very flattered by all this. Our motto may be “Not Just Business As usual” but we rarely endorse the “make him an offer he can’t refuse” school of getting things done. Neither do we believe a discreet horse’s head placed in a bed is a way of gaining friends or influencing people.
I know James a bit but mainly through his time at BSky B where he was CEO and is – for the time being – Chairman. He is well liked and respected there. The organization still hopes he can continue because he brings value, despite the recently disastrously-acquired Wapping baggage. Funnily enough, as you can read in my recent profile of Jeremy Darroch here he turned a rather nasty, aggressive and back-biting culture into something more enlightened. James was critical in making it a wildly successful, billion a year profit outfit. It won MT’s Most Admired Company Award a couple of years back and this is a peer review – its enemies in the UK media acknowledge ruefully how good it is.
So, James may be a forceful guy in a hurry but he’s never struck me as a Sonny Corleone – I don’t know what he got up to at his sister’s wedding – although he has been prone to outbursts of passion in public when it may have been wiser to keep his mouth shut. His venomous attacks on the BBC were OTT and his wild barging into the Independent’s office during the last election are actions he should regret.
I received an email this morning from an old friend in New York who works for the Murdoch empire. “James as Sonny?” he writes. “Listen as long as he isn’t Fredo, we’re all going to be fine.’ I hope he’s correct because if News Corp’s publishing business is brought down there are going to be an awful lot of hacks heading for the mattresses.
This whole thing has genuinely tragic, Faustian overtones. (And in writing that I am by no means disregarding the hurt done to Milly Dowler’s family and all the others whose privacy has been violated by the Screws mob.) What’s fascinating is that James isn’t a newspaper man at all. He had little time for the inky world of Wapping, although he was quite happy to count the gold that came into his organization through the News of the World. The Times loses a million pounds a week. So its an old fashioned industry in its twilight years rather than the sunrise world of pay TV and telephony that has proved his undoing. The management lesson here might be stick with what you know, except he was being groomed to run the whole business by his dad.
What was wrong with the tabloid business in Wapping was its culture. It didn’t matter how badly you behaved as long as you got the story first (and sometimes right) it didn’t matter. Even if James didn’t know this before he arrived it wouldn’t have taken many conversations with those satyrs and orcs down there to pick this up fast. Maybe he didn’t get “back to the floor” fast enough. Perhaps it simply didn’t interest him sufficiently for him to pay it much attention. He’s an American into baseball to whom Gordon Taylor was worse than a nobody, albeit a half million pound nobody. You could claim there’s an unreasonable expectation of CEOs of complex organizations these days to be on top of every last detail. But if your business is breaking the law you need to know and know fast.
James’s career now hangs on a knife edge. Not only are the Lefties out for his skin – eager to avenge years of hurt at the hands of The Sun King – but even his own sister Elizabeth is said to be very disappointed with his performance. The Murdochs have been in family therapy. The problem now is that if he’s telling the truth about the way he was running the show after his arrival in Wapping, he appears pretty negligent. One of the first rules of management and being the boss is an acceptance of responsibility. The buck stops with you. Even when things go very badly wrong and you are “let down” by poor behaviour in the ranks, it looks very bad indeed when you crap so openly in public on your employees. Even if they live in Mordor.



