BUSI1323 Leadership in Organisations

Summative Assignment:
Leadership Report about Jane Fraser
1. Case Description
1.1. Leader’s background information
Jane Fraser is the first female CEO in the history of Citigroup, the first-ever woman
to run a Wall Street Bank after 17 years of dedication to the world’s most global bank
(Forbes, 2022). Fraser had a solid educational foundation. She earned an M.A. in
economics from Cambridge University and an M.B.A. from Harvard Business School.
In her career path, she has been through many important roles in large companies
and has expertise in many different fields (Citi, 2023). Starting the job at Citi in 2004,
Fraser has held leadership roles and helped the firm overcome many difficult times.
After many times of promotions in crisis, Fraser accumulated experience and
expertise, especially in the leadership skills (Cfi, 2023). Jane is a loyal employee with
long working times at the companies she has worked with. The proof is that she
worked for McKinsey and Company for ten years before being a part of Citi for
almost two decades. The qualities that make Fraser a successful leader can be
mentioned as resilience and the transformational vision of a leader. With that great
effort, the 56 years old woman was recognized in the top 10 of the most powerful
women in the world by Forbes in 2022 (Forbes, 2022).
1.2. Leadership Challenge
The working journey at Citi always made Fraser no stranger to glass cliffs. According
to (Cfi, 2023), each of Jane's promotions during times of crisis came with
challenges. And recently, when newly appointed CEO of Citi, she dealt with a
challenge that her solution shocked Wall Street. The decision was made in the sign
of burnout and falling apart of employees' mental and physical health during a long
time of working from home during covid-19 pandemic. “The blurring of lines between
home and work and the relentlessness of the pandemic workday have taken a toll on
our well-being. It’s simply not sustainable” Jane wrote, (Citi, 2021). She conducted a
flexible work culture for Citi globally, which is a reset for Citi’s future work.
Specifically, Citi introduced zoom-free Fridays with internal meetings on Fridays
happened with the audio-only call; and three new working models, the hybrid model
applied for almost roles globally employees can work three days in the office and two
from home; resident and the remote model means employee designated to perform
their functions offsite such as branch workers or from outside the office depending
on their roles (Citi, 2021)). The reset plan emphasized the importance of flexibility
and work-life balance but not ignoring connectivity and collaboration. Healthy work
boundaries are set so that employees can recharge as well as ensure safety amid
the pandemic (Cnbc, 2021). Fraser was well-prepared for addressing this challenge
as shown in the way she came up with and applied the reset plan. She has listened
to her staff and then made decisions that benefit the company workforce. The
policies not only went with clear guidance and requirements but also empathy and
encouragement. For example, she encouraged those who need more time to reset
by just raising their voice (Citi, 2021). Solving this problem from an innovative
perspective made Jane’s decision unthinkable among companies in the finance field
(Cnn, 2021).

2. Analysis and Evaluation of Case

In an organization, leaders play an indispensable role in the company's success
(Toufaili, 2017). Leaders improve employee engagement in the problem-solving
process through the guidance of leadership styles and then effectively and efficiently
solve the problems (Potcovaru & Girneata, 2015). In the crux of the significance of
organizational performance, deciding on choosing the suitable leadership style is
important (Gandolfi & Stone, 2018). There are many types of leadership styles, and
Jane Fraser is a primary example of transformational leadership. The report will
show how the theories of this leadership style are applied in practice, which is also
evidence for the assumption transformational leadership style is effective and should
be extended.
2.1 Leadership approach/concept
The original development of transformational leadership theory belonged to James
MacGregor Burns, and this concept has been non-stop researched and extended by
key players such as Noel Tichy and Bernard Bass (Warrick, 2011). Transformational
leaders are visionary leaders, who have new outlooks on strategies, people, and
changes (Warrick, 2011). These leaders motivate and lead followers to achieve
organizational performance through a shared vision and common goals (Muenjohn,
2010) as well as boost employees' confidence to fulfill their expectations and
potential (Bass & Avolio, 1993). Along with that, transformational leadership is
defined as "the leader's behavior that transforms and inspires subordinates to act
and exceed their expectations as they transcend personal interest for the good of the
organization" (Avolio, et al., 2009, p. 423). Many studies state the effectiveness of
transformational and transactional leadership, and the researchers also have made
comparisons between them. According to Bass (1999, p.21), “The best leaders are
both transformational and transactional. Also, in Bass’s study, transformational
leadership is considered to be more effective. The above assumption was proved
through empirical research in various fields. Specifically, findings indicated
transformational components scores are higher than that of transactional
components and the satisfaction measure (Bass, 1999; Muenjohn, 2010). If
transactional leaders set expectations and use rewards to encourage followers to be
creative and productive (Bakker, et al., 2022) for desired goals (Muenjohn, 2010),
transformational leaders, on the other hand, inspire followers to look beyond self-
interest (Warrick, 2011) be at their best (Bass and Riggio, 2006) and ultimately leads
to the results of achieving extra effort, effectiveness, satisfaction ( (Muenjohn, 2010;
Bass, 1999), and employee commitment and trust (Bass, 1999). Furthermore, in
turbulent contexts, leaders who follow the transformational leadership style are seen
to be more effective since they try to work differently and look for opportunities in
risky situations (Beugré, et al., 2006). In addition, transformational leadership also
comes with four featured dimensions identified in many of Bernard Bass's studies
which are charisma (idealized influence), inspiration, intellectual stimulation, and
individualized consideration (Bass, 1985); Bass, 1990). Charismatic leaders provide
employees with vision and gain respect and trust to encourage employees to work
with extra effort (Bass, 1990); inspiration factor means setting high expectations for
performance to inspire followers to be confident; intellectual stimulation leaders
foster creativity, rationality, and innovation in their employees; individually
considerate leaders focus on emotional aspects when they show empathy with their
followers and pay attention to the subordinates' personal development (Bass, 1999).
According to (Bakker, et al., 2022), the involvement of a variety of transformational
leader behavior will positively impact followers' work engagement. In short,
transformation recommends applying… follow the research
2.2. Evaluation of leadership effectiveness/endorsement
Jane Fraser effectively handled the challenge described at the very first beginning
and also turned solutions into valuable lessons for Citi. According to Citi's 2021 ESG
report, the company realized that remote work is effective and productive (Citigroup,
2022). The hybrid working model was assessed to be a successful method by the
majority of companies (Forbes, 2023). Thus, being flexible in arranging employees'
work environment did not only help Citi achieve the top concern, which guaranteed
employees’ safety, health, and well-being but also maintain work efficiency. The
lesson learned through the pandemic context is new and unusual ways of working.
Accordingly, Citi will retain the policies of hybrid, remote, and resident working to be
the future work model. This announcement values flexibility but still appreciates
connection and collaboration (Citigroup, 2022).
Fraser faced the challenge when she took charge as the first female CEO in the
history of Citi Jane Fraser. Helping Citi overcome this difficult time was her chance to
prove her leadership skills and strengthen her voice within the organization. The two
following arguments will demonstrate why Fraser was successful in mastering the
above challenge. First, Fraser is a testament to the effectiveness of the
transformational leadership style by applying the four dimensions. As mentioned
above, researchers have stated that transformational leadership is effective and
should be fostered within organizations. In the course of solving the problem
regarding the staff work environment, Fraser’s behavior involved all four dimensions
of transformational leadership consisting of charisma (idealized influence),
inspiration, intellectual stimulation, and individualized consideration. When talking
about a charismatic leader, Fraser motivated employees through her understanding,
care, and support. During covid-19, Citi was proactive to protect employee wellness.
According to Citi 2021 annual report, “In the U.S., Citi offered free virtual care visits,
home delivery of prescriptions, enhanced bereavement leave and no-cost COVID
testing”, “Citi also took actions to support the emotional well-being of its colleagues”
(Citigroup, 2021, p. 60). Not only staff, but their families also enjoy the benefits
offered. Besides, given the fact that working all night, early morning and weekends
hindered employees from having enough energy then negatively affected them and
the company as well, the new CEO proposed a bunch of policies to improve team
spirit such as Citi reset day (Citi, 2021). Despite operating in the face of many
pandemic hazards, Citi knew how to increase employee engagement and motivation.
By focusing on maintaining mental and physical safety for employees, Fraser
motivated followers to ensure productivity and took action to nurture the company
workforce.
In terms of intellectual stimulation, Fraser has strengthened the work philosophy-
doing things differently. Fraser broke the traditional thinking that only allowed
employees to work in the office (Citigroup, 2022). Same challenge, other male
leaders in the finance field had the opposite opinion with Fraser. Morgan Stanley's
chief executive, James Gorman, would be disappointed if staff were not at the office.
David Solomon, chief executive of Goldman Sachs said remote work was an
aberration (Fnlondon, 2021). Meanwhile, Fraser had a different perspective with a
strategic vision that brings long-term benefits for Citi. Flexibility is a strategic bid for a
labor shortage economy (Cfi, 2023). The CEO's decision involved a humane reaction
coupled with a calculated strategy that helped Citi have an advantage in attracting
and retaining talent (Cnn, 2021). On Fraser’s side, she admitted that it was not
merely an empathetic decision. The policies partly defined bank culture, a bank with
a soul (Cnn, 2021). The humanity of Fraser's actions demonstrates the traits of an
individually considerate leader.
She listened to feedback and understood followers to solve their trauma. She
supported the staff and their families. At the same time, she surveyed employees in
the implementation plans (Citigroup, 2022). She made empathy one of the three
attributes that define the future at the bank, alongside excellence and accountability.
Empathy means listening and incorporating people’s views, which is crucial for the
company's forward movement (Linkedin, 2021).
When it comes to the challenge as a woman at work of Fraser, she faced the same
difficulties as other women when pursuing a career path while taking care of a family.
According to Rehman and Roomi (2012, p.212), “For many women presence of
children is associated with distraction and supervision issue”. In Fraser's case, she
said that the hardest thing she had to do was mothering young children and having a
career; balancing family and work made her feel exhausted and guilty (Linkedin,
2021). This challenge affected Fraser on how she made decisions to manage and
organize her life such as choosing to work part-time at McKinsey to take time to raise
two young sons. However, it was not because of that that her performance was less
effective. She put effort into her work, learned about time management, and focused
on important things (Linkedin, 2021). At the end of the day, she accumulated
knowledge and experiences to prove her ability and get promoted over and over
again. Unencumbered difficulties by the challenges of being a female leader, Fraser
turns differences into opportunities. She was not afraid to acknowledge her
personality traits and insisted that being different was her strength. She stated that
she could be feminine and tough, and she used these characteristics as her strength
(Linkedin, 2021). Besides, being a female leader gave Fraser a chance to think
differently to succeed. In an interview, Fraser said that it had been helpful to be a
female leader. Her differences compared to other counterparts helped her have a
different outlook and she enjoyed working in different ways (Linkedin, 2021). The
comparison is about gender as she has worked in a male-dominated field. And only
four percent of women hold CEO roles in public companies (Forbes, 2020). She
needs to put more effort into choosing the right things to do in different ways, and
this is a process of breaking the glass ceiling. It can be said that barriers and
difficulties have contributed to making Jane a great leader as she has spent years
honing skills and networking for the challenging journey to a senior role. She gained
trust and respect through her dedication and leadership ability to help the company
bounce back from the setbacks. Fraser’s transformational leadership style brings
transformational changes and effectiveness to Citi.

3. Conclusion and Recommendation

3.1. Conclusion

3.2. Recommendations
Through experience, vision, and determination, Fraser effectively and thoroughly
solved the problems. Not only she proposed timely and strategic decisions but also
drew up plans for the future of the company through valuable lessons from the
challenge. Here are the recommendations for Citi's further growth and key
takeaways from the effectiveness of Fraser's leadership style.
First, regarding recommendations, given the fact that Fraser will remain the same
working models during the pandemic in the future, Fraser can remove the limitations
to achieve even more effectiveness. During solving the challenge amid the
pandemic, some undesirable results have happened to Citi such as having inefficient
employees, which were called back to the office for coaching (Cnn, 2023). Although
Citigroup overcame the difficulties under Fraser‘s leadership, the limitations came
from many reasons, such as limited time to deploy or disadvantages from the
drawbacks of the new working models. For example, the disadvantages of remote
work include the tendency to work longer hours, distractions, and high workload
(Grzegorczyk, et al., 2021). This was Citi's problem when working remotely for a long
time negatively affected employees’ mental health, and the company adopted the
hybrid form of work after that. To ensure the sustainability of the new working
models, Citi needs to make relevant adjustments to the company culture and goals.
The company needs to re-design the workplaces that fit employees’ needs (Chafi,
Hultberg, and Yams, 2021; Hopkins and Bardoel, 2023). The whole organization
has to hone new skills and competencies to adjust and make the best use of
opportunities from the hybrid work model (Chafi, et al., 2021). Leaders need to
improve different communication styles to handle emotional issues; understand
employees’ preferences to capture their strengths and put them in their best working
status; and have internal training programs as well as strategic adjustments for
recruitment policy performance (Hopkins & Bardoel, 2023). In short, Citi’s leaders
have to take important factors such as operation, workplace culture, communication,
staff’s well-being, and skills gaps into consideration to successfully adopt new work
arrangements (Hopkins & Bardoel, 2023).

Second, one lesson for others from Fraser's leadership is adaptability. According to
(Boylan & Turner, 2017), a vital quality of a leader to be successful in challenges is
the ability to develop an organization's adaptive capacity. The covid outbreak has
turned the lives of hundreds of millions of people upside down but looking at its silver
lining, covid made people do things they never thought possible, such as the
popularity of telework and hybrid working models. Citi became a pioneer in adopting
a hybrid working model and emphasizing flexibility during the pandemic under CEO
Fraser's decision despite the opposing views of her peers. Thus, the change in the
working environment forces employees to have high adaptability to learn the
necessary skills to ensure their productivity. For instance, telework requires
employees to have necessary skillsets such as self-management and digital skills
(Grzegorczyk, et al., 2021). Meanwhile, leaders should be proactive about
approaching new knowledge. At the end of the day, adaptability is a significant
preparation for organizations for unpredictable incidents in a turbulent world.

4. Self-Reflection Using Rolfe’s Reflective Model

This section provides a self-reflection of the author on the group work based on
Rolfe et al. 's (2001) reflective model. The biggest problem during the teamwork
process is the lack of connection. Our group of four followers works under the
direction of the group leader. On the one hand, the leader is supportive and
proactive about capturing information to keep members updated with tasks. Team
members have mutual respect and have willing to share difficulties. However, our
team does not spend much time meeting and discussing. In the course of doing the
work, we chose the tasks ourselves, ask questions then finalize each member's
respective tasks. Consequently, the lack of interaction and collaboration negatively
affected the quality of work. Some members did not meet the deadlines, and the
presentation was not as smooth as expected. Besides, the above problem also
affected the team working experience among members. There are two key
takeaways that I get from this group work. They are: good things take time and
getting people involved in the team’s common goal. The lessons give me the
direction for further improvements to work in a group effectively. I will remain
responsible and willing to cooperate. This working attitude will help the leader
effectively draw up plans, track working progress, and make possible adjustments. If
I take the leadership role, I will reinforce collaboration and exploit team members’
potential. I believe that each person has their strengths. Therefore, putting them in
the right place will strengthen the team's power.

5. Bibliography
Forbes, 2022. Jane Fraser. [Online]
Available at: https://www.forbes.com/profile/jane-fraser/?list=power-
women&sh=5c467677192d
[Accessed 15 07 2023].
Citi, 2023. About Jane Fraser. [Online]
Available at: https://www.citigroup.com/global/about-us/leadership/jane-fraser
[Accessed 15 07 2023].
Cfi, 2023. Citigroup CEO Jane Fraser. [Online]
Available at: https://cfi.co/banking/2023/02/citigroup-ceo-jane-fraser/
[Accessed 15 07 2023].
Citi, 2021. Latest Update on the Future of Work at Citi. [Online]
Available at: https://www.citigroup.com/global/news/perspective/2021/latest-update-
on-the-future-of-work-at-citi
[Accessed 16 07 2023].
Cnbc, 2021. Citigroup CEO Jane Fraser calls for Zoom-Free Fridays and new bank
holiday as pandemic fatigue grows. [Online]
Available at: https://www.cnbc.com/2021/03/23/citigroup-ceo-jane-fraser-calls-for-
zoom-free-fridays.html
[Accessed 16 07 2023].
Cnn, 2021. Citigroup’s Jane Fraser is doing the unthinkable on Wall Street. [Online]
Available at: https://edition.cnn.com/2021/11/15/business/jane-fraser-citigroup-risk-
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6. Appendix
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