Empathy isn't just for customers; it's a competitive tool. Jane Fraser used it to neutralize an activist shareholder by understanding the external pressures they faced. Solving their problem provided a successful off-ramp for them and a win for her.
To rally a large organization, Citi's CEO Jane Fraser focuses on painting a picture of what the company will become. She believes people will take on incredible challenges for an exciting future, whereas simply highlighting problems to be fixed fails to inspire.
During the 2008 financial crisis, Jane Fraser learned that effective leaders must be unemotional and clinical, like a trader assessing a position. This allows for the courage to make tough, objective decisions without being attached to specific business areas or personal ego.
Instead of a linear path, Fraser pursued lateral or even downward moves to systematically build the skills and relationships needed for future C-suite roles. This unorthodox approach proved more effective than simply aiming for the next promotion.
Citi CEO Jane Fraser intentionally sought struggling divisions because they offered more freedom for bold changes. When a business is in crisis, leadership is more likely to leave you alone to fix it, unlike in successful divisions where everyone offers unsolicited advice.
Citi's CEO admits her risk appetite was once awful. She argues courage can be learned through practice: trusting yourself, taking unorthodox career steps, and building emotional resiliency to accept that you will sometimes fail and have to pick yourself back up.
For Citi, being global isn't just about presence; it's about a mindset that appreciates there are many ways of doing things, not just one "right" way. This openness and adaptability, born from genuine diversity, is a key strategic advantage in a fragmenting world.
While AI can optimize answers, Citi's CEO argues it cannot replicate the trust, confidence, and human connection essential for major decisions like transformational M&A. The apprenticeship model of learning through human interaction remains critical for developing judgment.
Jane Fraser asserts the most critical step in fixing a culture is removing people who drain energy, regardless of performance. She believes a good person in a bad culture can recover, but a toxic individual remains toxic and demoralizes the entire team.
When Jane Fraser moved to run Citi's mortgage business in Missouri, she earned her team's trust not with a speech, but by moving her family and sharing a relatable story about her son's culture shock. This showed her team she was truly invested.