Jamie Dimon's Authority Framework
Making it as a large bank CFO in your early 30's
Good morning, everyone.
This week’s newsletter includes: how a young Jamie Dimon slapped down the rule of law, shut down some crazy business practices and helped build a mega bank.
How To Build Authority Fast
Jamie Dimon was just 30 when he became CFO – but his crackdown on spending was so ruthless, furious executives planned a revolt…
In 1986, Sandy Weill took over Commercial Credit, a company on the verge of collapse.
He hired 30-year-old Jamie Dimon as CFO, with the mission to slash needless expenses and rebuild the company before it was too late.
Jamie’s first move? Demand to see every single company expense - line by line.
What he found was staggering…$20,000 a month spent watering plants on the Executive Floor.
The problem?
There were no plants on the Executive Floor!
“People kept paying the bills even after the plants had gone!” Jamie said.
Next up was a newly bought $2 million Xerox printer...
Jamie found out a competitor had purchased the exact same brand new printer from auction – for just $50,000!
And then came the reports. Mountains of them, printed and mailed weekly. Jamie laid out all the reports in a single room and asked: “What are these for?”
Staff had no idea. One report was being sent to a client in Dallas who’d been dead for three years. Jamie cut useless expenses, but the backlash was fierce.
Old-guard executives ignored him in meetings. Some refused to take his calls. Rumors grew of a corporate revolt – a band of furious senior executives who planned to kick Jamie out of the company.
Jamie didn’t care, and pushed even harder to ensure company money was not wasted. Within 12 months, printing costs were down 60% and total costs were down 35%.
Jamie proved his doubters wrong, and Commercial Credit went from floundering to thriving.
Reflecting on that time, he said:
“Kill bureaucracy relentlessly - you can’t run a successful business if you don’t know where the money goes.”
Recommendation’s
Around 9 months ago, Jamie gave a 35-min presentation to the senior leadership at JP Morgan essentially providing the best learnings of his career, including personal stories and anecdotes. It’s quite nerdy and niche, but I love it.
I created a YouTube video called The History of Ray Dalio, including his childhood, his big break, who funded him and the market call that changed his career - all in under 8 minutes - check it out and let me know what you think!
The History of Ray Dalio
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Joseph Cass