What can we learn from pirates?
In the latest Harvard Business Review, there is an article on what we can learn from organized crime. Pop!Tech ran a article on what innovators can learn from pirates (focused mostly on people who pirate your goods). Forbes had a blog on the subject. The New York Times ran an article on the plight of a British couple who had been kidnapped by Somali pirates. Over the last few years, several books on pirates have been published. Pirates are hot.
So, what can we learn from pirates?
The first thing to learn is how the pirate organizations operated. Leadership had to be earned and was voted upon by the people being governed, not given by being promoted from above. It is hard to be autocratic when the crew is armed and willing to kill.
Technology has put similar powers into the hands of the lowest worker in the corporation. Today, the guts of a corporation can walk out the door on a thumb drive or be captured by one person clicking on a link in a chat session (as what happened to Google). The Arab Spring is showing just how technology is changing power. It may help to borrow from Pirate governance.
Pirate governance is similar to that of the nomadic American Indians and to developing Open Source. It is hard to direct Open Source development when people can choose on a daily basis whether to participate or not. To lead pirates, we express a vision that they can share and show them how to get there.
Secondly, people support piracy when the difference in wealth is too large. The Caribbean pirates were after the riches being sent back to Europe from the American colonies. Music piracy exists where people do not always have the money to buy the authorized versions. The Malay pirates attacked the European ships bringing wealth from the Far East as well as the Philippines. England and Holland supported pirates until they became the rich being pirated on. People steal from corporations when they are not sharing in the rewards.
Thirdly, when piracy is profitable for too long, outside investors start participating in the process. For example, in the Somali kidnapping of a British couple, part of the reason that they were held for so long was that the investors who had bankrolled the holding of the couple wanted more money before allowing them to be released. Likewise, when music piracy went on for too long, corporations started making money off of the piracy. Similarly, China has a hard time cracking down on music, film, and software piracy because all the vested interests that are profiting from it.
Fourthly, when piracy is rampant, society changes. In the music industry, the best profits are made when the studios cooperate with the "pirates" and work out ways to incorporate the creativity being expressed. How the band, the Grateful Dead operated is a textbook example. Our national push to the Pacific was often started by people who broke the laws. Our country simply followed up to get the laws and treaties changed to reflect what was taken.