Dimon describes ‘waste cutting' measures

Jamie Dimon, the straight-talking president and COO of JPMorgan Chase, has strong opinions about how to run a competitive business.

A lot of corporate America moves at a snail’s pace. But to be competitive you just start a relentless pace. You always have to ask, is it better, cheaper, faster for the customers?

Dimon shared his ideas with students in a conversation with dean Edward Snyder at the Hyde Park Center January 13. One of the first things Dimon did after the Bank One/JPMorgan merger was what he called not cost cutting, but waste cutting. Businesses deteriorate over time, adding bureaucracy and building up their corporate offices where top executives concentrate on their own facilities and perks instead of what is best for the company and the customers, he said.

Budgeting is not [just] the numbers. It’s what are you planning, who are you hiring, who you train, what are the new products you're delivering, what’s the communication? Corporations forget why they're in business. And it usually starts in headquarters. If it’s not for the customers, it’s corporate gobbledygook, and you've got to kill it.

 

Jennifer Vanasco