In his annual letter to shareholders, Jamie Dimon, CEO and chairman of JPMorgan Chase, not only addresses the broader economic challenges and geopolitical instability, but he also takes time to share his leadership insights. Drawing on decades of experience, Dimon offers a glimpse into his approach to managing one of the world’s largest financial institutions. His advice covers the essentials of good leadership: flexibility, respect, vision, and the importance of leading with heart. Here’s a breakdown of his top tips for leaders and executives:

1. Avoid Rigidity: Stay Open to New Perspectives

One of Dimon’s key pieces of advice is to avoid becoming too rigid in your thinking. As leaders, it’s important to remain open to change and new information, even if it challenges long-held beliefs.

“It’s often hard to change your attitudes and beliefs, especially those you’ve had for a long time,” Dimon writes. “But you must be open to it.”

He cautions against letting personal biases guide decisions, emphasizing that flexibility in leadership can open the door to breakthroughs. Dimon encourages leaders to embrace disagreement and seek out the partial truths in opposing perspectives. This, he believes, can help avoid the pitfalls of “binary thinking,” which limits creative problem-solving.

2. Respect is Non-Negotiable

Respect is the cornerstone of effective leadership, according to Dimon. He explains that employees are more likely to follow and trust leaders they respect, but this respect must be earned through actions, not just titles.

“Good people want to work for people they respect, and they will not respect those who take all the credit and share none of the blame,” Dimon writes.

He adds that respect is built through consistent character, honesty, and accountability. Leaders who admit their mistakes and take corrective actions will gain the trust and loyalty of their teams, fostering a culture of mutual respect and collaboration.

3. Committees Can Be Useful (If Done Right)

While decision-making by committee can sometimes lead to groupthink or compromise, Dimon believes that when done right, committees can be an invaluable tool for problem-solving. He reflects on JPMorgan’s infamous London Whale trading scandal, suggesting that it could have been avoided if the trade had been properly reviewed by a risk committee.

“I have no doubt that had the trade been raised there, the flaws would have been exposed immediately,” Dimon writes.

However, he warns that committees should be approached thoughtfully. They should provide checks and balances but should not stifle innovation or leadership autonomy.

4. Clarify Your Vision and Stay Consistent

Leaders need a clear and intentional vision to guide their teams. According to Dimon, this is more than just corporate jargon—it’s about creating an objective that employees can understand and rally behind. Consistency between words and actions is critical to maintaining trust.

“People quickly pick up on management saying one thing but doing another,” Dimon writes. For example, saying you value respect but allowing poor behavior from managers will erode confidence in leadership.

Dimon stresses that leaders must not only articulate their vision but also work alongside their employees to ensure everyone is aligned with the company’s goals. This means getting “in the trenches” with the team to lead by example.

5. Lead with Heart: Compassion Is the Secret Sauce

At the heart of Dimon’s leadership philosophy is empathy. He emphasizes the importance of showing genuine care for employees and acknowledges mistakes made when JPMorgan cut healthcare benefits for security staff. Dimon later reversed this decision, recognizing that success should not come at the expense of employees’ well-being.

“JPMorgan Chase’s success will not be built off the backs of our guards—it will be the result of fair treatment of all of our employees,” he writes.

Dimon believes that showing heart in leadership creates a deeper connection with employees, leading to greater loyalty, commitment, and performance. He draws a parallel to sports teams, where a sense of camaraderie and shared purpose often drives success.

6. Reflect on the Tough Decisions: Sundays Are for Thinking

Finally, Dimon offers a personal insight into how he tackles tough decisions: by setting aside time on Sundays to reflect deeply on difficult issues. He creates a list of challenges and uses Sundays to consider them carefully, allowing for more thoughtful decision-making than is possible during the hectic workweek.

“Progress doesn’t always mean reaching a final conclusion—sometimes it’s just a rational next step that puts you on the path to a final decision,” Dimon notes.

By setting aside time for reflection, Dimon ensures he approaches complex problems with clarity and focus, an approach he recommends for other leaders.

Conclusion: Leading with Flexibility, Integrity, and Compassion

In his annual letter, Jamie Dimon outlines a leadership philosophy that blends strategic thinking with empathy, flexibility, and humility. His advice for leaders is clear: stay open to new perspectives, earn the respect of your team through your actions, and lead with compassion. Whether it’s working alongside employees or taking the time to deeply consider difficult decisions, Dimon’s approach emphasizes that effective leadership is built on trust, respect, and integrity.

As businesses continue to face economic uncertainty and evolving challenges, Dimon’s insights offer a roadmap for leaders who want to navigate these complexities while staying true to their core values.