Keneth Chenault, CEO, American Express, was the subject of The Colvin Interview in the C-Suite Strategies series in Fortune Magazine’s October 26, 2009 edition. Geoff Colvin, senior editor at the magazine, started his profile by writing, “American Express CEO Ken Chenault is one of the few Wall Street chiefs who have come through the financial meltdown and recession looking good.”
Colvin’s article describes how Chenault lead his company through the worst economy since the Great Depression when, in the CEO’s words, ”The reality is that we were on the verge of an absolute disaster and collapse.”
During his first year in the job, Chenault learned and used crisis management skills on and after 9/11 that he could apply to the economic crisis. Although the article focused on the financial challenges he faced and his outlook for the new economy, it also includes insights from the CEO that other leaders might find of interest.
1. Leaders should continue to deal with the basic issues of their companies while planning for long- and short-term growth based on future obstacles as well as opportunities.
2. Chenault feels that “the hardest time to bring about change is in good times.” In other words, leaders need to be focused and decisive in good times to be ready for the less-than-good times.
3. Transparency. The CEO used that word in reference to proposed new financial services regulation and the impact the government’s intentions could have on the economy.
4. On the topic of executive pay, Chenault said that he believed not in short-term packages to compensate executives but multiyear packages.
5. After the company and growth opportunities, his third reason for staying at AMEX even though he was considered for a leadership role at another financial services company was “I like the people.”
I liked what I learned from this article and suggest you might find it of interest yourself.
