Management Lessons From a Privateer

Abstract

With the CPCU annual conference set in New Orleans, the idea of looking at personalities associated with New Orleans seemed to be a creative way to see what

 management principles were practiced and had relevance to leadership and managing today by insurance professionals. Jean Lafitte, the privateer (and yes pirate),

seemed a logical choice. Setting aside his notoriety and the context of his historical career, there are nuggets of his management style that have been documented. 

Here are the management principles that were gleaned from the literature on Lafitte:

1. Develop skills to further your career.

2. Be an entrepreneurial thinker.

3. Develop social skills.

4. Develop negotiation skills.

5. Develop tactical skills to develop strategies.

6. Treat people with respect.

7. Develop and maintain a reputation of trust.

    

Develop skills to further your career.

Jean Lafitte’s early life is shrouded in mystery, but it is clear that he was not born into the life of a pirate. Like many professionals, opportunities lead

to a choice of career. According to Davis (2005), “Jean Laffite spent time gaining experience in the privateering environment.” (1) As insurance

professionals, we all worked hard to learn the technical skills of insurance in order to have the knowledge to advance our careers. The author benefitted

from mentorship when he was learning the underwriting discipline, just as I imagine Lafitte learned privateering from captains he served under.

Professionals today need to learn their technical skills and, as their careers evolve, to find leadership mentors. The CPCU Society has an excellent mentorship

program to guide candidates, so many newly-minted CPCUs are familiar with the benefits of having a mentor who functions as a role model. CPCUs should,

therefore, find mentors in their organizations who can provide guidance and advice for developing both technical and leadership skills. Lafitte took what he

learned and applied the skills so that his operations grew increasingly sophisticated. (2) This proved especially important in the Battle of New Orleans, where

Andrew Jackson commended Lafitte as “one of the ablest men of the battle.” (3) Lafitte also served as a mentor by sharing information to educate others to

develop their skills. (4)  It can be a positive career move for CPCUs to become mentors and be recognized for their skills and how they benefited the company.

CPCUs need to be leaders in their own technical areas, which can be transferred to broader management responsibilities as their careers develop.

Using Jean Lafitte as a role model, he has been described by Davis (2005) as an “entrepreneurial genius,” (5) meaning that he took control of a situation

and found opportunities to advance his agenda. He used the entrepreneurial skills of being able to take the resources he had to work with to create a plan

and build a successful adventure to improve his fortunes. An entrepreneur must always be thinking about the future and how to make positive advances.

As an entrepreneur, Lafitte was considered “sharp and resourceful” (6).  For CPCUs, showing employers that they think of themselves as owners of

their companies and make their decisions in the best interest of the company is evidence that they think as entrepreneurs. Entrepreneurial thinkers

are  in demand because, like Lafitte, they can adapt rapidly. (7)

For CPCUs to get ahead in today’s business environment, they must be people-oriented. This is especially important when they pledge to put the needs of

others above their own. Lafitte realized this as he was known to be very sociable and an easy and genial conversationalist, who liked to tell stories. (8) He

“gained the reputation for treating captive crew members well and often returned captured ships to their original crews.” (9) This was probably uncommon

practice in those days, but showed a concern for others, which we know is important for CPCU professionals. Lafitte garnered the gratitude of those he helped

which served to boost his reputation. (10) CPCUs are leaders in the insurance industry because of their recognized ability to meet the needs of their clients by

truly understanding those needs, which does require creating rapport and learning details about  how to help the clients. As Lafitte practiced, know what the

needs of the people are and be sincere in meeting them. This applies to both clients and employees for a CPCU.

There is no question that Lafitte was an effective negotiator. His negotiation skills convinced the Americans that they had nothing to fear from him and his

offer to serve the U.S. in exchange for a pardon for his men who agreed to defend New Orleans was accepted by General Jackson. (11) CPCU leaders will

have opportunities to develop and use their negotiation skills. Agents and brokers are continually negotiating with underwriters when presenting risks. When

making career moves, CPCUs should be in a strong position to negotiate terms for a change in employment because of the knowledgeand experience they have

acquired as a CPCU professional.

Tactical skills play a major role in decision making for leaders, which includes development of strategies to meet personal and organizational goals. Lafitte

showed his tactical skills  at the Battle of New Orleans, when he assessed the problems with the American defense and recommended a tactical move that

Jackson ordered and proved to be successful, helping to win the battle. (12) While CPCUs won’t be faced with such a situation, having tactical skills can

prove beneficial when advising clients not only about their insurance programs, but also risk management strategies, which is an area where CPCU professionals

can bring much needed benefits to clients.

Treat people with respect

Whether it was his own men or those who became prisoners of his pirate activities, Lafitte treated people with respect and took steps to insure their welfare,

which resulted in the gratitude of those who benefited from his benevolent treatment; he was often referred to as “Gentleman Lafitte.” (13) Insurance

professionals are working in people-oriented business and successful professionals like CPCUs know that establishing rapport with others begins with respect.

Leaders gain loyalty from others, employees and clients, by exhibiting caring behavior that shows evidence of interest in the needs of others.

Develop and maintain a reputation of trust

People who dealt with Lafitte did so because he had a reputation as a “go to” person and he reinforced his reputation by exercising executive powers (14) and

imposing laws that exhibited his belief in propriety. (15) For the CPCU, the high ethical standards are the basis for trust that everyone interacting with a CPCU

can rely upon. Professionals who have achieved the CPCU designation have the advantage that the reputation of the CPCU designation has been well established

in the industry, which makes it much easier than Lafitte had in building his reputation. Jackson praised those men whom Lafitte had brought to the Battle of

New Orleans and said of Lafitte that he had exhibited the same courage and fidelity. (16) Once a good reputation is established, it is critical to maintain the

reputation because failure to do so can be detrimental to a person’s career. Just as Lafitte took advantage of the successes he had to improve his position of trust, so

too should CPCUs through achievement in continuing education maintain a trusted leadership role in their companies and with their employees and clients.

In summary, Jean Lafitte may be a controversial historic figure in some ways, but the steps he took to be successful have been based on leadership principles that

are relevant to every professional who want to be leaders when making  their career choices. 

Submitted on behalf of the Leadership and Managerial Excellence Interest Group.

Notes:

1. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

2. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

3. Jean Laffite: American Pirate. Biography & Facts. Britannica.com. https://www.britannica.com/biography/Jean-Laffite (accessed November 14, 2018).

4. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

5. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

6. Jean Lafitte. https://en.wikipedia.org/wiki/Jean_Lafitte. (accessed November 14, 2018).

7. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

8. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

9. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

10. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

11. Jean Lafitte. https://en.wikipedia.org/wiki/Jean_Lafitte. (accessed November 14, 2018).

12. Jean Lafitte. https://en.wikipedia.org/wiki/Jean_Lafitte. (accessed November 14, 2018).

13. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

14. Davis, William C. (2005). The Pirate Laffite: The treacherous world of the corsairs of the gulf. New York: Harcourt, Inc.

15. Ramsdell, Charles, Jr. (1940). Why Jean Lafitte became a pirate. The Southwestern Historical Quarterly. Vol. 43, No. 4.

16. Jean Lafitte. https://en.wikipedia.org/wiki/Jean_Lafitte. (accessed November 14, 2018).