JP Morgan Chase 2009 Annual Report Download - page 24

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Discipline
This means holding regular business reviews,
talent reviews and team meetings and
constantly striving for improvement – from
having a strong work ethic to making lists and
doing real, detailed follow-up. Leadership is
like exercise; the eect has to be sustained for
it to do any good.
Fortitude
This attribute often is missing in leaders: They
need to have a fierce resolve to act. It means
driving change, fighting bureaucracy and poli-
tics, and taking ownership and responsibility.
High standards
Abraham Lincoln said, “Things may come
to those who wait … but only the things left
by those who hustle.” Leaders must set high
standards of performance all the time, at a
detailed level and with a real sense of urgency.
Leaders must compare themselves with the
best. Huge institutions have a tendency toward
slowing things down, which demands that
leaders push forward constantly. True leaders
must set the highest standards of integrity
– those standards are not embedded in the
business but require conscious choices. Such
standards demand that we treat customers
and employees the way we would want to be
treated ourselves or the way we would want
our own mother to be treated.
Ability to face facts
In a cold-blooded, honest way, leaders empha-
size the negatives at management meetings
and focus on what can be improved (of course,
it’s okay to celebrate the successes, too). All
reporting must be accurate, and all relevant
facts must be reported, with full disclosure and
on one set of books.
Openness
Sharing information all the time is vital –
we should debate the issues and alternative
approaches, not the facts. The best leaders kill
bureaucracy – it can cripple an organization
– and watch for signs of politics, like sidebar
meetings after the real meeting because people
wouldn’t speak their mind at the right time.
Equally important, leaders get out in the field
regularly so as not to lose touch. Anyone in a
meeting should feel free to speak his or her
mind without fear of oending anyone else.
I once heard someone describe the importance
of having “at least one truth-teller at the table.”
Well, if there is just one truth-teller at the
table, you’re in trouble – everyone should be
a truth-teller.
Setup for success
An eective leader makes sure all the right
people are in the room – from Legal, Systems
and Operations to Human Resources, Finance
and Risk. It’s also necessary to set up the right
structure. When tri-heads report to co-heads,
all decisions become political – a setup for
failure, not success.
Morale-building
High morale is developed through fixing
problems, dealing directly and honestly with
issues, earning respect and winning. It does
not come from overpaying people or deliv-
ering sweet talk, which permits the avoidance
of hard decision making and fosters passive-
aggressive behaviors.
Loyalty, meritocracy and teamwork
While I deeply believe in loyalty, it often is
misused. Loyalty should be to the principles
for which someone stands and to the institu-
tion: Loyalty to an individual frequently is
another form of cronyism. Leaders demand a
lot from their employees and should be loyal
to them – but loyalty and mutual respect are
two-way streets. Loyalty to employees does not
mean that a manager owes them a particular
job. Loyalty to employees means building a
healthy, vibrant company; telling them the
truth; and giving them meaningful work,
training and opportunities. If employees fall
down, we should get them the help they need.
Meritocracy and teamwork also are critical but
frequently misunderstood. Meritocracy means
putting the best person in the job, which
promotes a sense of justice in the organization
rather than the appearance of cynicism: “Here
they go again, taking care of their friends.”
Finally, while teamwork is important and often