netrashetty
Netra Shetty
Leadership Style at American Express : American Express Company (NYSE: AXP), sometimes known as AmEx, is a diversified global financial services company headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer.[3][4]
BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion.[5] Fortune listed Amex as one of the top 20 Most Admired Companies in the World.[6]
The company's mascot, adopted in 1958, is a Roman gladiator[7] whose image appears on the company's travelers' cheques and charge cards.
The Wharton Leadership Lectures recently hosted Kenneth Chenault, Chairman and CEO of American Express since April 2001. After earning his JD from Harvard, Mr. Chenault became a consultant with Bain & Co. before joining AMEX as the Director of Strategic Planning. From there he progressed to become President of the Consumer Card Group and then President of AMEX's Travel Related Services (TRS). He became Vice Chairman of American Express in 1995, while also assuming responsibility for TRS International. Mr. Chenault served as COO from 1997 to 2001 before becoming CEO.
Mr. Chenault assumed chairmanship of AMEX at a time of tremendous change. In his first quarter as CEO, AMEX wrote off one billion dollars, causing analysts to question its future position in a highly competitive market. Yet four years later, AMEX has the highest market capitalization of all global financial services firms. How was Mr. Chenault so successful? Today's business climate, he explains, reflects unprecedented levels of uncertainty and change. Business models have to change every three to four years and leaders must have a long-term perspective that focuses on structural flexibility and adaptation, rather than the preoccupation with meeting quarterly financial benchmarks.
Thus, Chenault recognized that AMEX must pursue, but cannot depend on, double-digit growth. Chenault focused on shifting online and integrating AMEX's various service offerings. The company's decision to reduce its workforce by 15 percent two months after 9/11 was a difficult one. Morale in the company was already low after 9/11, with eleven employees killed near the World Trade Center.
During those turbulent times, it was imperative for Chenault to establish direction and identify the two or three most important strategic drivers of growth. He decided to focus on re-inventing AMEX's value proposition as a premium provider of financial services. This premium positioning had two elements: Superior value, which includes conveying this value to customers, and higher standards of corporate conduct. More than "share of wallet," capturing "share of mind" was Chenault's primary goal. He wanted customers to forge an emotional relationship with the AMEX brand.
Mr. Chenault then discussed what he considers to be some of the attributes of a leader. Among his favorite principles is one of Napoleon's maxims: That a leader defines reality and gives hope. He then discussed his views on particular leadership traits.
Integrity Mr. Chenault believes that integrity means a lot more than just being honest. Integrity embodies consistency in words and actions. When a leader is consistent, he or she is seen by subordinates as being reliable and trustworthy.
Courage A leader must speak out and challenge others. Mr. Chenault likes to surround himself with people who are willing to question the status quo.
Being a Team Player Leaders must not only be personable people who work well with others, but must learn to give cutting, honest feedback. A leader must know how to respectfully and productively engage in confrontation.
Execution Skills Intelligence is not the same as the ability to execute. It is easy to conceive strategic concepts, but the ability to execute differentiates a leader from others. Execution also demonstrates commitment, which inspires others.
Personal Development A leader's success is judged by the success of his or her followers. A leader is one who has not only mastered his or her own personal attributes, but is able to assist others in their own self-development.
Adaptability Consistent with his opening remarks, Chenault underscored the vital importance of remaining flexible and adaptable, particularly in the current geopolitical climate. Chenault compares this to Darwin's theory of evolution: Species that survive are not the strongest, nor the most intelligent, but those which are best able to adapt.
Compassionate yet Decisive In volatile times, leaders are closely scrutinized. A leader must have clear direction and must not lose his or her composure, yet must also be compassionate. However, compassion should not be confused with a reluctance to take tough action.
Mr. Chenault's soft-spoken, calm, yet decisive style very much embodied his message. He summarized his discussion of leadership by urging us to realize that we must know who we are and what we stand for. "If you don't have strong values and a sense of self," he insisted, "you will fall off a cliff later in your career."
Over dinner, Mr. Chenault offered further personal insights. When he began his career, he had no ambition to become a CEO. Reflecting on his career path, his suggestion is to always focus on the task at hand - do it thoroughly and excel. Then, hone in on one small element of a job, organization, or process, and strive to transform it. "In pursuing your long term aspirations," he said, "think in incremental steps. Pursue your passion, not ambition." Looking back, Chenault admits that he worked many weekends, but he questions the extent to which this was necessary. To keep focused, Mr. Chenault currently tries to work out four times a week, and he is an avid reader of books which, he said, are "non-business related."
Mr. Chenault's final insight was the most telling: In today's world, business, not government, is the primary driver of transformation in our social and cultural landscape. With our MBAs, we will be instrumental in bringing about innovation and change, and people will look to us for leadership.
BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion.[5] Fortune listed Amex as one of the top 20 Most Admired Companies in the World.[6]
The company's mascot, adopted in 1958, is a Roman gladiator[7] whose image appears on the company's travelers' cheques and charge cards.
The Wharton Leadership Lectures recently hosted Kenneth Chenault, Chairman and CEO of American Express since April 2001. After earning his JD from Harvard, Mr. Chenault became a consultant with Bain & Co. before joining AMEX as the Director of Strategic Planning. From there he progressed to become President of the Consumer Card Group and then President of AMEX's Travel Related Services (TRS). He became Vice Chairman of American Express in 1995, while also assuming responsibility for TRS International. Mr. Chenault served as COO from 1997 to 2001 before becoming CEO.
Mr. Chenault assumed chairmanship of AMEX at a time of tremendous change. In his first quarter as CEO, AMEX wrote off one billion dollars, causing analysts to question its future position in a highly competitive market. Yet four years later, AMEX has the highest market capitalization of all global financial services firms. How was Mr. Chenault so successful? Today's business climate, he explains, reflects unprecedented levels of uncertainty and change. Business models have to change every three to four years and leaders must have a long-term perspective that focuses on structural flexibility and adaptation, rather than the preoccupation with meeting quarterly financial benchmarks.
Thus, Chenault recognized that AMEX must pursue, but cannot depend on, double-digit growth. Chenault focused on shifting online and integrating AMEX's various service offerings. The company's decision to reduce its workforce by 15 percent two months after 9/11 was a difficult one. Morale in the company was already low after 9/11, with eleven employees killed near the World Trade Center.
During those turbulent times, it was imperative for Chenault to establish direction and identify the two or three most important strategic drivers of growth. He decided to focus on re-inventing AMEX's value proposition as a premium provider of financial services. This premium positioning had two elements: Superior value, which includes conveying this value to customers, and higher standards of corporate conduct. More than "share of wallet," capturing "share of mind" was Chenault's primary goal. He wanted customers to forge an emotional relationship with the AMEX brand.
Mr. Chenault then discussed what he considers to be some of the attributes of a leader. Among his favorite principles is one of Napoleon's maxims: That a leader defines reality and gives hope. He then discussed his views on particular leadership traits.
Integrity Mr. Chenault believes that integrity means a lot more than just being honest. Integrity embodies consistency in words and actions. When a leader is consistent, he or she is seen by subordinates as being reliable and trustworthy.
Courage A leader must speak out and challenge others. Mr. Chenault likes to surround himself with people who are willing to question the status quo.
Being a Team Player Leaders must not only be personable people who work well with others, but must learn to give cutting, honest feedback. A leader must know how to respectfully and productively engage in confrontation.
Execution Skills Intelligence is not the same as the ability to execute. It is easy to conceive strategic concepts, but the ability to execute differentiates a leader from others. Execution also demonstrates commitment, which inspires others.
Personal Development A leader's success is judged by the success of his or her followers. A leader is one who has not only mastered his or her own personal attributes, but is able to assist others in their own self-development.
Adaptability Consistent with his opening remarks, Chenault underscored the vital importance of remaining flexible and adaptable, particularly in the current geopolitical climate. Chenault compares this to Darwin's theory of evolution: Species that survive are not the strongest, nor the most intelligent, but those which are best able to adapt.
Compassionate yet Decisive In volatile times, leaders are closely scrutinized. A leader must have clear direction and must not lose his or her composure, yet must also be compassionate. However, compassion should not be confused with a reluctance to take tough action.
Mr. Chenault's soft-spoken, calm, yet decisive style very much embodied his message. He summarized his discussion of leadership by urging us to realize that we must know who we are and what we stand for. "If you don't have strong values and a sense of self," he insisted, "you will fall off a cliff later in your career."
Over dinner, Mr. Chenault offered further personal insights. When he began his career, he had no ambition to become a CEO. Reflecting on his career path, his suggestion is to always focus on the task at hand - do it thoroughly and excel. Then, hone in on one small element of a job, organization, or process, and strive to transform it. "In pursuing your long term aspirations," he said, "think in incremental steps. Pursue your passion, not ambition." Looking back, Chenault admits that he worked many weekends, but he questions the extent to which this was necessary. To keep focused, Mr. Chenault currently tries to work out four times a week, and he is an avid reader of books which, he said, are "non-business related."
Mr. Chenault's final insight was the most telling: In today's world, business, not government, is the primary driver of transformation in our social and cultural landscape. With our MBAs, we will be instrumental in bringing about innovation and change, and people will look to us for leadership.
Last edited by a moderator: