'Kill off work that doesn't have a clear customer outcome': JPMorgan co-president urges staff to have a customer obsession
- JPMorgan Chase announced first-quarter results Friday morning, posting earnings of $2.37 a share. Analysts had expected earnings of $2.28.
- JPMorgan's giant consumer and community banking (CCB) business posted a 67% increase in net income to $3.3 billion, on revenue of $12.6 billion.
- In a memo to staff, Gordon Smith, head of CCB and group co-president, told staff to "stay vigilant and try to kill off work that doesn't have a clear customer outcome."
JPMorgan's got a new mantra.
The giant US bank announced first-quarter results Friday morning, beating estimates and posting earnings of $2.37 a share, well above analysts' expectations of $2.28. And in a memo to staff, Gordon Smith, head of the giant consumer and community banking (CCB) business and group co-president, highlighted the firm's investment in "customer obsession.""Our business is growing through a consistent strategy of disciplined, focused investment in customer obsession," he said. "Every quarter, we are releasing new features and improvements that our customers love. Every business is growing its customer base."
Customer obsession is a phrase that's popping up more and more at JPMorgan, with CFO Marianne Lake talking at length at the bank's investor day about the bank's efforts to "delight" its customers. The new mantra hints at JPMorgan's efforts to become the Amazon of Wall Street.
Smith also stressed the need to stay focused on expenses, with CCB expenses up 8% year-over-year. That increase was mainly because of investments in technology and marketing, which Smith described as "good expense." But he said staff should "stay vigilant," and, as part of a crackdown on unecessary meetings, save time where possible.
"Stay vigilant and try to kill off work that doesn't have a clear customer outcome," he said. "And don't forget our rules of the road for meetings and committees. It will save time and drive a more effective result."
The CCB business posted a 67% increase in net income to $3.3 billion in the quarter, on revenue of $12.6 billion.