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In the midst of the pandemic, Steve Squeri, CEO of American Express, faced a unique challenge with economic uncertainty looming and the world gripped by Covid lockdowns.
Squeri’s concerns were valid. The pandemic disrupted the financial landscape, putting billions of dollars in credit card loan repayments at risk. Moreover, the very essence of American Express, its travel and entertainment perks, became obsolete as those industries ground to a halt.
Faced with these challenges, the world’s largest card issuer took decisive action. They tightened their belts, curbing short-term expenditures and imposing an external hiring freeze, all while managing to avoid layoffs. Yet, even in this strategic retreat, there were potential costs, especially for shareholders, with Warren Buffett’s Berkshire Hathaway holding a substantial 20% stake in the company.
Instead of succumbing to panic over the implications of Buffett’s substantial investment, Squeri chose a different path. The chairman of Amex, a stalwart of the company for nearly four decades, picked up the phone.
His call to Buffett wasn’t merely a plea about the company’s share price; it was a pitch for growth. Squeri proposed a bold strategy, including a $1 billion investment to introduce a suite of new customer services and the strategic acquisition of businesses at discounted rates which could prove useful in the future.
“I called Warren Buffett and said, ‘We’re probably going to lose $4 a share, and I am not sure when billing is going to come back … But I think what we need to do is take care of our colleagues [and] take care of our customers. If we do that, I think, we’ll have long-term viability for our shareholders,’” Squeri told The Financial Times.
It was a pitch based on Squeri’s philosophy that to get ahead of a downturn businesses must be prepared for the “upswing” the other side.
Fortunately for the former Accenture consultant, Buffett is famously a fan of long-term strategies.
Squeri told The Financial Times Buffett approved of the plans, and also gave him a sage piece of advice: “The most important thing to take care of is your customers and your brand. It’s hard to get customers back. And once you damage the brand, it’s damaged.”
With Buffett’s backing Squeri charged ahead with his plan, rolling out a raft of financial hardship programs as well as extending the length of time new customers had to earn their welcome bonus.
Squeri’s daily routine
If a man worth $124 billion (according to Bloomberg’s Billionaire Index) gives you a piece of business advice, you take it.
Squeri’s schedule suggests he’s already on the same page as Buffett when it comes to putting consumers first, revealing he spends three hours a day answering every customer email that comes into his inbox.
“I get 150 to 200 customer emails a day. I read and answer every single one,” the Amex stalwart told The Financial Times. “We say we’re a membership model. How do you ignore them?”
With more than 77,000 employees — and the number three spot on Fortune‘s Great Place to Work 2023 100 Best Companies to Work For — as well as a reported 122 million customers, it’s perhaps no surprise that Squeri says his job is “24/7.”
Squeri’s day begins at 5.45am, leaving for the office at 6 a.m. and working in the car. By 6.45 a.m. he’s at the office in New York, where he works out for half an hour before having a breakfast of tea and fruit.
At 8 a.m. work starts and follows a day of meetings, Squeri’s work life is “intense,” he says.
Lunch is at noon, eating a Chopt salad at his desk.
From 12.30 pm until 5.30 pm it’s “back to back” Squeri said, adding: “I’ll try and go to the cafeteria sometimes to pick up a snack, so people can see me and to break the monotony.”
At 5.30 pm he leaves the office and makes his way home, though still answers work calls, and has dinner.
At 7.30 pm he logs on again, this time to spend three hours going through customer emails. Then Squeri unwinds for an hour, and goes to bed at 11.30pm.
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