Redefiners Podcast: Waste In, Shareholder Value Out – A Conversation with WM President and CEO Jim Fish
Introduction
In this episode of Redefiners, hosts Russell Reynolds Associates' Leadership Advisor Simon Kingston and guest Emma Coombe engage in a compelling conversation with Jim Fish Jr., the President and CEO of Waste Management (WM). Released on October 23, 2024, the episode delves into Jim's leadership journey, WM's transformation towards sustainability, and the intricate balance between operational efficiency and environmental stewardship.
Jim Fish Jr.'s Journey to CEO
Jim Fish Jr. shares his career trajectory, highlighting his 23-year tenure at Waste Management. Beginning in finance and accounting roles at Westex Transworld Airlines and America West Airlines, Jim transitioned into various pivotal positions within WM, including President, CFO, Senior Vice President for the Eastern Group, and Vice President of Price Management.
At [03:02], Jim emphasizes the significance of a foundational understanding of a company's core functions beyond one's immediate role:
“If you're working for a Procter and Gamble, you want to be on the marketing side at some point. And if you're working for a Goldman Sachs, you want to be on the finance side.”
This holistic approach was instrumental in his ascent to the CEO position, underscoring the importance of versatility and comprehensive business knowledge.
Understanding Frontline Operations
A defining moment in Jim's leadership was his hands-on experience with WM's frontline operations. Recounting a specific instance at [04:54], Jim describes riding on the back of a truck in Pittsburgh at 2:00 AM amidst -10°F temperatures:
"I pretty quickly understood, gosh, now I understand why productivity is a bit lower in January than it is in July."
This immersive experience not only provided practical insights into operational challenges but also fostered meaningful connections with WM's 48,000-strong workforce. Jim underscores the value of direct engagement:
"I really like meeting people. I go out to our districts all the time."
Company Values: "People First" and Beyond
Central to WM's organizational ethos is the "People First" mantra, inspired by Herb Kelleher of Southwest Airlines. At [06:17], Jim elaborates on this philosophy:
“If they feel valued, if they feel like they're making a contribution, if they feel like they're appreciated, then they will take care of your customers. And if your customers are happy, then your shareholders will ultimately be happy.”
Expanding this framework, Jim introduces additional constituents—environment and communities—highlighting their integral roles in WM's value hierarchy. He reflects on his legacy:
"I would be happy if I'm 75% successful on making this a place where they really want to make a long-term career."
Jim emphasizes that cultivating a supportive and appreciative workplace culture is a long-term endeavor, critical for sustained organizational success.
Sustainability and Transformation at Waste Management
Under Jim's leadership, WM has embarked on a significant transformation towards sustainability, with investments ranging between $2.5 to $3 billion. At [09:27], he outlines the company's strategic focus:
"Sustainability has to strike that balance... it's not measured in weeks or months. It's probably measured in years and it might be measured in decades."
Key initiatives include the expansion of renewable natural gas from landfill byproducts and comprehensive recycling programs. Jim highlights the dual benefits of these efforts, noting that sustainability drives both environmental and economic value:
“It's a big money-making part of our business today.”
Balancing Profit and Environmental Goals
Jim articulates WM's approach to reconciling profitability with environmental responsibility. At [12:25], he discusses the necessity of economically viable sustainability:
“Sustainability has to be both environmentally and economically green to be viable.”
Addressing misconceptions about WM's bias towards landfills, Jim clarifies the company's commitment to economically beneficial recycling:
“I would want that plastic bottle to go to a recycle center because we make like, you know, 10 times as much on the bottle going to a recycle center as we do sending it to a landfill.”
This strategic alignment ensures that sustainability initiatives contribute positively to both the environment and shareholder value.
Social Impact and Community Engagement
Beyond environmental initiatives, WM commits approximately 2% of its net income to social impact, reflecting a broader responsibility to communities. At [17:45], Jim explains the motivation behind this commitment:
“Big companies are such a powerful force in the world for doing good things if they choose to be. And so we choose to be.”
He underscores the reciprocal benefits of community engagement, where social investments can enhance business opportunities and shareholder returns.
Leadership Philosophy and Advice
Jim shares his leadership philosophy, shaped significantly by personal experiences. A poignant story from his upbringing involves his mother's visits to nursing homes, fostering empathy and a deep appreciation for human connections:
“People are important. You know, this little old lady... my mom helped her… live a life that she enjoyed.”
He offers advice to young professionals, emphasizing patience and sustained effort:
“Patience is a virtue... don't expect it overnight.”
Jim also highlights the importance of regular engagement with frontline employees, citing advice from his father-in-law:
“If you're going to do it, then go out and do it on a regular basis. If you do that, you'll learn something, and they'll really appreciate the fact that you're coming out and kind of seeing what they do every day.”
Personal Insights and Rapid-Fire Questions
In the rapid-fire segment, Jim shares personal reflections and preferences:
- Admired Leader: Abraham Lincoln
- Top CEO Traits: Empathy, long-term thinking, intellect
- Favorite Decompression: Reading, watching sports, outdoor activities like fishing and hiking
- Best Advice Received: Regularly engage with operations teams to foster understanding and appreciation
- Regrets: Prefers regretting actions over inactions
- Bucket List Item: Visiting Mount Everest Base Camp
- Most Unusual Item Collected: A live World War II hand grenade encountered by a WM team member
Conclusion
Jim Fish Jr.'s tenure at Waste Management exemplifies a balanced integration of operational excellence, sustainability, and people-centric leadership. Throughout the conversation, he articulates a vision where environmental responsibility and shareholder value coalesce, driven by a deep commitment to employees and communities. His insights offer valuable lessons for leaders aiming to navigate complex, evolving business landscapes while maintaining ethical and sustainable practices.
As Hoda Tahun aptly summarizes:
"The idea is that not only will we pay compensation that we think is a fair wage, but it's so much more than just compensation."
Jim's leadership embodies the essence of Redefiners, showcasing how bold, thoughtful leadership can drive extraordinary impact in today's rapidly changing world.