Go Summarize

Blackstone's Stephen Schwarzman on Hiring Phenomenal People

founder#ceo#leadership#view from the top#stanford gsb#stanford graduate school of business#hiring#rejection#entrepreneur#The Blackstone Group (Business Operation)#Stephen A. Schwarzman (Organization Leader)#Success#Work#investment process#people#terrific people#[laugh]#wonderful thing#GSB#high school people#conference room#investment#hiring people#good thing#business school#CEO#basic plan#blackstone#touchy feely#business#private equity
609K views|9 years ago
💫 Short Summary

The video features an entrepreneur discussing the challenges and successes of starting a private equity business, emphasizing perseverance, resilience, and the importance of attracting top talent. The speaker reflects on rejection, the value of learning and evolving as a CEO, and the significance of creating a positive company culture. They highlight the joy of continuous learning, pursuing passion, and the importance of embracing change for growth. The speaker also emphasizes the need for open communication, feedback, and building trust with investors through transparency and excellence.

✨ Highlights
📊 Transcript
Transition from Blackstone to Private Equity Entrepreneurship.
Challenges faced due to lack of investing experience, emphasizing the importance of a clear strategy and distinct offerings.
Daily meetings held to define goals and value proposition.
Difficulty of starting a new business and the importance of understanding customer preferences.
Perseverance and focus on turning entrepreneurial dreams into reality despite high failure rates.
Evolution of private equity business.
Low prices, available capital, and opportunity for consolidation are key factors.
Importance of attracting top talent, known as 'tens'.
Hierarchy of effectiveness within firms, with nines excelling at execution and eights following instructions.
Emphasis on intellectual capital generation to enhance existing business operations.
Challenges faced in starting an independent investment banking boutique.
Initial skepticism and rejection from potential clients.
Emphasis on resilience and force of will in achieving success.
Anecdotes of rejection, including a notable encounter with the head of a major bank.
Reflection on the humility gained through facing rejection and dishonesty in the business world.
The importance of perseverance and resilience in entrepreneurship.
Being denied investment due to their structure, the speaker learned the importance of having a thick skin in the business world.
Adaptability and resilience are necessary in overcoming early struggles when building a business.
Fear of failure and effort required to overcome challenges are discussed as common experiences in the business world.
Maintaining a sense of urgency and avoiding complacency are emphasized to prevent organizational vulnerability.
Reflections on the challenges of being a CEO and entrepreneur.
Importance of learning and evolving in these roles, emphasizing specific skills needed.
Acknowledgment of past mistakes and value of coaching from experienced partners.
Emphasis on the importance of communication as a CEO and the impact of words and actions.
Complexity of managing a team, highlighting the need to strategize and maintain confidence while pursuing objectives.
Effective leadership as a CEO involves balancing control with autonomy, articulating core values, and surrounding oneself with like-minded individuals.
Providing opportunities for growth and creativity within the organization is crucial for retaining talent and keeping employees engaged.
Transitioning from a focus on deals to a strategic, entrepreneurial approach can lead to long-term success as a CEO.
Mentoring newly appointed CEOs and sharing leadership insights can be fulfilling and valuable for both parties involved.
Importance of Authenticity and Emotional Awareness in Business Settings.
Emphasizes the significance of being authentic, vulnerable, and building connections in leadership style.
Shares a personal experience of a failed investment decision and the emotional impact of criticism.
Stresses the value of diverse perspectives and open communication within a team to enhance decision-making processes.
Discusses the role of emotional intelligence in avoiding costly mistakes in a business environment.
Importance of constructive feedback in business.
Emphasize on separating criticism from personal attacks for success.
Need for open dialogue and institutional comfort to foster a culture of improvement.
Setting up processes that prioritize communication and respect leads to low turnover rates and recognition as a top workplace.
Personal motivations for continuous learning and innovation in career.
Importance of Challenging Situations for Continuous Learning
Speaker shares personal experience of starting from zero after spending $1400 on a ring post-graduation.
Emphasizes the joy of continuous learning and global travel experiences.
Anecdote about meeting Henry Kissinger and fulfillment in doing what you love.
Value of pursuing passion and feeling alive daily, rather than solely focusing on monetary gains.
Reflections on Success and Engagement
Emphasizes the importance of emulating successful figures and being engaged with life.
Discusses entering a growing industry at the right time and the need for balanced risk in finance.
Promotes the Schwartzman Scholars program, detailing its core courses, leadership course, mentorship, and trips around China.
Mentions the impressive individuals involved and the unique residential college setting for the program.
Importance of hiring the right people for organizational success.
Schwarzman Scholars program identifies future leaders through assessing potential and providing a year to learn about China.
Evaluation of candidates beyond resumes, focusing on characteristics like flexibility, emotional stability, stress management, self-reliance, and communication skills.
Significance of selecting nice and non-political individuals to foster a positive company culture.
Building a team based on shared values and maintaining a meritocratic environment to ensure success and avoid hiring disagreeable individuals.
Key qualities to look for when hiring include adaptability, communication skills, and stress management.
People's reputations over 40 are more reliable indicators than personal perceptions.
Change is necessary for progress, but many people find it difficult to adapt.
Resistance to change is common even when improvements are made.
Making people comfortable with change is crucial for introducing new ideas and innovation.
Building trust with investors through care, transparency, and focus on benefiting stakeholders.
Demonstrating honesty in motives and only introducing products believed in.
Emphasizing excellence as a core value, with a passion for turning visions into reality.
Finding pleasure in achieving perfection in various aspects of life.