Citi CEO Jane Fraser Shares Warren Buffett's Conflict Advice

Citigroup CEO Jane Fraser has shared two key pieces of advice for navigating workplace conflict, received from legendary investor Warren Buffett. Fraser recounted these insights at an event held at Stanford's Graduate School of Business in February. The first tenet of Buffett's guidance emphasizes restraint in immediate responses to provocation, encapsulated by his remark, "You can always call them an a–hole tomorrow." This translates to Fraser's personal rule: "So, never in anger, respond to that email." This principle encourages leaders to pause and consider their reactions before communicating, particularly in heated situations, to avoid escalating tensions or making regrettable decisions.

The second piece of advice from Buffett focuses on the method of delivering criticism. He advocates for "criticizing by category and praising by name." This means leaders should acknowledge and commend individual employees for their specific achievements and positive contributions. Conversely, when addressing mistakes or areas needing improvement, the criticism should be directed at the general category of the issue rather than singling out specific individuals by name. Fraser explained the rationale behind this, stating, "You’re always going to regret it if you criticize someone by name; it’s going to come back and bite you." This approach aims to foster a more supportive environment while still addressing performance issues effectively, preventing personal resentment and fostering a focus on systemic improvements.

Fraser illustrated the practical application of Buffett's advice with an anecdote involving an activist investor who was exerting pressure on Citigroup. Initially, she admitted to having a "very rude response" to the idea of showing empathy towards someone causing her difficulties. However, by stepping back and attempting to understand the investor's perspective, she found that this empathetic approach ultimately led to a breakthrough in their interactions. Fraser believes that empathy provides a competitive advantage in business because "there’s far too many people that don’t try and understand the other perspective." This perspective-taking allows for more constructive dialogue and problem-solving, even with those who present challenges.

Ultimately, Fraser distilled Buffett's teachings into a straightforward directive for professional conduct: "Just don't be a jerk to people." She noted that unprofessional behavior, such as being an "a–hole" at work, could have serious consequences, including job termination. Fraser's career trajectory has been within the banking sector, beginning as a mergers and acquisitions analyst in 1988 after graduating from the University of Cambridge. She later pursued an MBA at Harvard Business School and spent a decade at McKinsey before joining Citi in 2004. Her emphasis on these principles highlights their perceived importance for effective leadership and maintaining a positive organizational culture, even at the highest executive levels.