Other People’s Money, by Jerry Sterner, is clearly a story about morality, ethics, humanism, capitalism, traditional and non-traditional business views, loyalty, purity of intentions, leadership and management styles, and adaptation, among others. It is a good representation of what happens when one either follows tradition or deviate from it. As it tackles the value of people in a company, it also pushes the idea of change and innovation in order to help people move to the right direction. Other People’s Money only proves that not all people perceived as having the purest of intentions are good and those thought of as evil-minded are bad when it comes to business morals and ethics. It takes opening up the minds of people to accepting change while things can be changed and not wait for things to fail before taking an action. Other People’s Money is a battle of principles that attempts to present both sides of attempt to seize corporate control.
The story revolves around Lawrence “Larry the Liquidator” Garfinkle, a brute of a man who is considered as the antagonist in the story because of his manner and corporate and investment savvy that threatens and turns off people who works for him or meets him. He buys companies and sells them off, which afforded him to become rich. On the other hand, there is also Andrew “Jorgy” Jorgenson, chairman of the new company Larry is eyeing, the New England Wire and Cable (NEWC). During their initial meeting, Larry makes evident his intentions of acquiring NEWC and even goes to the extent of presenting how much the company is worth if the sale pushes through. Both men have varying reasons for acquiring and maintaining the company. For Larry, though the company may be making millions and appears to be rock-solid financially, there is one division that does not make much money for the company due to obsolescence of technology, the Wire and Cable division, which is being subsidized by other profitable divisions in order to survive. By liquidating the division, Larry believes that the profits can be redeployed back to the three other divisions that are making money or begin a new venture. With reengineering, reorganization, and reskilling of people, it could go back to its glory days and compete competitively in the market. Doing so, the company will truly see how much profit it is capable of making (“Other People’s Money”).
Coming from the old, traditional mindset, Jorgy dismisses Larry’s offer because the company was built by his father and has been with their family for generations. His stand is that people are dependent on the company and have been loyal employees. In his defense, he says the company has a history to preserve and traditions to maintain. By keeping the division running, the town and its people remains to have a sure source of income through stable employment.
As both men are both impassioned about their beliefs, they are a study in contrast about morality, ethics, beliefs, and leadership and management styles. One man is afraid of letting go of what is, the other one believes in moving with the times through change. One appeals to the emotions, the other one is rough and straight to the point with his approach. One is idealistic, the other one is realistic. One promotes false security, the other one incites fear of the unknown. One maintains the status quo, the other one initiates change. The former is Jorgy, the protagonist, the latter is Larry, the antagonist.
Because of Jorgy’s history with the company, being the son of the previous owner, and affinity with tradition, his views reflect a very emotional kind of approach to solving problems. He is afraid of change, thus, refuses to change and adapt to the goings-on occurring in his environment. It must have also hurt his ego that someone who is not part of his family comes to him and tells him off about the problems his company has. Since he took over the position of Chairman, he placed personal pride in taking on the role of father figure and protector of the employees and the community they live in. One can say that his social responsibility to the community is high, but then, by only thinking about the plight of the employees and ensuring that they retain their jobs without considering the technological advances occurring in the wire and cable industry, he neglected his responsibilities to the stockholders who put money into the business. By not keeping up with innovation, his company was left behind by technology as other more advanced companies began adapting to change and embracing new technology. This resulted to NEWC having a shrinking market as consumers also moved from the traditional wire and cable materials to the more modern fiber optics industry.
Jorgy’s personal power came from knowing that he is able to help the community by providing jobs and thought that by doing so, he has gained the loyalty and respect of the people. While there is an element of truth in this, the reality is that when push comes to shove, people will always look out after their own interests as what Bill Coles, the president of NEWC, did when he personally visited Larry in his office. Jorgy’s approach to managing the company is people-focused. While this may be a good way of dealing with issues pertaining to people, the way to deal with company issues is to deal with it head on. Jorgy avoided issues and problems instead of facing them head on thinking that people will be cooperative by keeping them happy and satisfied. However, by doing so, the company did not profit much as it siphoned its profits back to division that was not making money for the company.
As a manager, Jorgy was a failure because he did not find ways to improve the Wire and Cable division’s processes and profitability. Instead, he relied on old and traditional methods of running the company and did not progress with the times. He said he was always only after the well being of the company and the employees. However, if he truly cared for them, he would have maintained an open mind and raised the quality and viability of his products by adjusting to the demands of the market. He could have helped them even more by reskilling them, kept the company current with industry trends, manufactured products that were in-demand in the market, or even developed new, but related products.
In addition, he could have leveraged on the suggestions of his stepdaughter, Kate, a lawyer, on how to deal with threats such as corporate turnovers. But he was too stubborn to listen to the suggestions and simply dismissed the ideas without fully understanding the facts (“Other People’s Money”). Another way he could have saved the company was by striking a deal with Larry as Larry was able to show what the company is losing through figures. Doing so, he would have been able to provide better deals for the company and the employees. In the event of retrenchment, employee morale and productivity of people in other divisions will remain high.
Jorgy’s actions are reminiscent of people who maintain the traditional method of managing and motivating employees. Indeed, he is a decent, kind, and sympathetic man, and his reasons for maintaining the same management style is borne out of respect for old times and success the company has had in the past. It is also possible that what Larry offered him was something new for the company that is why he found it difficult to come to a rational decision and accept the facts as they are.
On the other hand, there is Larry the Liquidator. His ways are abrasive, straightforward, and no-nonsense. He is confident in his ways and relies on his investment knowledge and expertise to buy companies out. Like Jorgy, he is stubborn and passionate about his views. The difference is he sees things in the context of modernity and has eagle eyes about the future of an investment. Yet, people are turned off by his ways because he has a scary way of painting the future. While he may seem cold-hearted because of his manner, his justification is that he views companies as properties run by individuals. Thus, he feels no attachment to people but only on the output of the company, that is, money. He focuses on issues alone and tries to see profit where there might be one and discards ideas when no profit can be made. Thus, his stand on companies is that to retain its viability, it must have profit. If a company does not keep up with new technologies, then the company cannot be considered a success. If a company does not make a profit, then the best solution is to discard it. There is no point in keeping a non-profitable business. Therefore, money comes first, before people.
Even then, he is a man of integrity despite one’s initial take on his personality. His morals are high as he refused the greenmail offer saying it is immoral and unfair to the stakeholders to accept such gesture. His style is assertive and forceful and will not give in unless he gets what he wants. These are the very same qualities that make people hate him. However, if one keeps an open mind about his style and ideas, they are what will help people profit from business deals. While he recognizes that managers have a responsibility to the employees, he knows that companies also have an obligation to shareholders. Thus, managers cannot just use shareholders’ money to keep a company afloat, especially if what is being supported is failing in the first place.
His style of leading is entirely different from Jorgy’s in that Larry is a person who sets the direction. He has foresight. He initiates change when he sees something is not working or becoming a disadvantage. He sets the pace and moves things. He tells the situation as it is and does not sugarcoat situations. These are what makes people uncomfortable because he speaks of the truth that people are afraid to hear. Yet, what he says is real. It may result to him making lots of money, but it is not only him who makes money because in the end, everyone does. Despite his love for money, there is more to him as an individual. He also wants all other things that life can offer, including family, love, and a lifestyle that money and success brings, but he won’t participate in transactions that finds immoral as he believes everything must be done with a sense of justice and fairness. By dealing with him and assuming this is actually how he leads his life, those doing business with him are sure to find success and fulfillment like Larry.
Works Cited
Other People’s Money. Dir. Norman Jewison. Perf. Danny DeVito, Gregory Peck, Penelope Ann Miller. Warner Bros., 1991. Film.
