David Solomon rejects the common framing of prioritizing customers, employees, or shareholders. He views leadership as conducting an orchestra, where the goal is to keep all three stakeholder groups in harmony. Neglecting one will inevitably cause the entire performance to suffer.
An effective CEO maintains a consistent core philosophy but tailors the emotional and subjective components of the message for different audiences (e.g., engineering, sales, investors). This context-switching ensures everyone can hear and internalize the message in a way that resonates with them personally.
The 20th-century view of shareholder primacy is flawed. By focusing first on creating wins for all stakeholders—customers, employees, suppliers, and society—companies build a sustainable, beloved enterprise that paradoxically delivers superior returns to shareholders in the long run.
Leading large-scale change requires motivating people you don't directly control, such as community partners. This "advanced leadership" skill also applies internally; even paid employees act like volunteers when asked to innovate. Sustained engagement depends on shared purpose, not hierarchical authority.
The disconnect where executives prioritize retention and directors focus on acquisition is a symptom of misaligned pressures. To resolve this, leadership must establish unified metrics that hold teams accountable for both short-term acquisition and long-term customer value, bridging the gap.
New leaders often fail because they continue to operate with an individual contributor mindset. Success shifts from personal problem-solving ("soloist") to orchestrating the success of others ("conductor"). This requires a fundamental change in self-perception and approach, not just learning new skills.
Merely protecting a team from external requests is an insufficient leadership tactic. True protection comes from creating and evangelizing a unifying strategy that aligns the entire organization, which naturally prevents distractions and conflicting priorities.
Effective leaders don't just run faster meetings; they understand that most internal discussions and priorities are irrelevant. The singular focus should be on what the consumer wants. Prioritizing the customer above internal metrics is the ultimate key to focus and speed.
Contrary to a shareholder-first dogma, these leaders operate on an employee-first principle. They believe that well-treated, empowered employees provide superior customer service. This creates loyal customers, which drives sustainable profits and ultimately delivers superior long-term returns for shareholders.
This framework structures decision-making by prioritizing three hierarchical layers: 1) Mission (the customer/purpose), 2) Team (the business's financial health), and 3) Self (individual skills and passions). It provides a common language for debating choices and ensuring personal desires don't override the mission or business viability.
Drawing lessons from former CEO Hank Paulson, David Solomon emphasizes that a leader's most crucial function is to maintain a clear direction—a 'compass pointing north'—and make the right call, even when it is unpopular or goes against the strong consensus of the room.