Lesson #2: Play By Your Own Rules
Lesson #2: Play By Your Own Rules
“You can’t build a strong corporation with a lot of committees and a board that has to be consulted at every turn,” says Murdoch. “You have to be able to make decisions on your own.” Indeed, that was what Murdoch specialized in doing. From union busting to tax evasion, Murdoch created his own rules of the game, which were that there were no rules.
In 1986, Murdoch’s secretly constructed state-of-the-art newspaper production plant was opened at Wapping, in East London. A non-union facility, the move angered British unions, which had previously maintained a tight grip over the country’s media. For the first time ever in the country’s history, Murdoch began fighting for flexible working hours, a no-strike clause and new technology. The powerful unions organized nightly protests outside the new plant and virulently protested against him, but the Thatcher government sided with Murdoch and sent in heavy police enforcement to protect the factory. Over 6,000 workers went on strike, all of whom received dismissal notices from Murdoch. The Wapping dispute lasted for over one year, but ultimately the unions were forced to yield to Murdoch. He had taken the lead in revolutionizing the media industry in Britain, after which other companies followed suit.
In 1998, it was discovered that for the previous four years, Murdoch’s News Corp. was paying just $325 million in corporate taxes around the world, or 6% of its pre-tax profits. In comparison, another multi-national media empire like Disney paid 31%. According to the Washington Post, Murdoch “has mastered the use of the offshore tax haven.” By finding international accounting loopholes and using offshore tax havens, Murdoch paid only one-fifth the rate of income taxes of his major rivals in that same period.
“The buck stops with the guy who signs the checks,” says Murdoch. Murdoch runs his business his way and he isn’t afraid to use his newspapers for his own personal means or to spread his own political beliefs. In New York City’s mayoral race of 1977, Murdoch made the Post print so many articles in favour of the conservative candidate, Ed Koch, that 50 reporters and editors from the paper signed a petition complaining about the bias. Murdoch told them if they had a problem with things, they could quit; twelve did. Murdoch also had no qualms about switching his political beliefs depending on what best suited him. An opportunist at heart, Murdoch only wanted to support winners.
Wherever and whenever he could, Murdoch unapologetically tried to cash in on his circumstances. “I've done things that most people thought were stupid,” Murdoch laughs. “We had faith.” Whether it was avoiding the rules set out by others or making his own Murdoch refused to let others dictate the terms of his success.
Lesson 2 Play By Your Own Rules
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“For better or for worse, our company is a reflection of my thinking, my character, my values,” says Murdoch. When it came to listening to others, Murdoch wasn’t very good at that. He knew the rules of the industry inside and out, but following them was another story. So long as something was legal to do, Murdoch wasn’t above doing it.
“You can’t build a strong corporation with a lot of committees and a board that has to be consulted at every turn,” says Murdoch. “You have to be able to make decisions on your own.” Indeed, that was what Murdoch specialized in doing. From union busting to tax evasion, Murdoch created his own rules of the game, which were that there were no rules.
In 1986, Murdoch’s secretly constructed state-of-the-art newspaper production plant was opened at Wapping, in East London. A non-union facility, the move angered British unions, which had previously maintained a tight grip over the country’s media. For the first time ever in the country’s history, Murdoch began fighting for flexible working hours, a no-strike clause and new technology. The powerful unions organized nightly protests outside the new plant and virulently protested against him, but the Thatcher government sided with Murdoch and sent in heavy police enforcement to protect the factory. Over 6,000 workers went on strike, all of whom received dismissal notices from Murdoch. The Wapping dispute lasted for over one year, but ultimately the unions were forced to yield to Murdoch. He had taken the lead in revolutionizing the media industry in Britain, after which other companies followed suit.
In 1998, it was discovered that for the previous four years, Murdoch’s News Corp. was paying just $325 million in corporate taxes around the world, or 6% of its pre-tax profits. In comparison, another multi-national media empire like Disney paid 31%. According to the Washington Post, Murdoch “has mastered the use of the offshore tax haven.” By finding international accounting loopholes and using offshore tax havens, Murdoch paid only one-fifth the rate of income taxes of his major rivals in that same period.
“The buck stops with the guy who signs the checks,” says Murdoch. Murdoch runs his business his way and he isn’t afraid to use his newspapers for his own personal means or to spread his own political beliefs. In New York City’s mayoral race of 1977, Murdoch made the Post print so many articles in favour of the conservative candidate, Ed Koch, that 50 reporters and editors from the paper signed a petition complaining about the bias. Murdoch told them if they had a problem with things, they could quit; twelve did. Murdoch also had no qualms about switching his political beliefs depending on what best suited him. An opportunist at heart, Murdoch only wanted to support winners.
Wherever and whenever he could, Murdoch unapologetically tried to cash in on his circumstances. “I've done things that most people thought were stupid,” Murdoch laughs. “We had faith.” Whether it was avoiding the rules set out by others or making his own Murdoch refused to let others dictate the terms of his success.
Lesson 2 Play By Your Own Rules
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