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analyst for CNN, and former presidential adviser), Carter Roberts (President and CEO of World Wildlife Fund), Joe Kennedy (CEO and President of Pandora), and Rich Lyons (Dean of Haas Business School, University of California– Berkeley).

Passion & Purpose offers profound insight into the values and vision of today’s emerging leaders, with inspiration and ideas for anyone who aspires to catalyze enduring change in the world.

John Coleman earned an MBA from Harvard Business School, where he was a Dean’s Award winner, and an MPA from the Harvard Kennedy School, where he was a Zuckerman Fellow and a George Fellow. Daniel Gulati holds an MBA from Harvard Business School, where he was a Baker Fellow and an Arthur Rock Entrepreneurial Fellow, and was awarded the Robert F. Jasse Distinguished Award in Entrepreneurship & Leadership. W. oliver SeGovia was born and raised in the Philippines and received an MBA with Distinction from Harvard Business School, where he was a LeBaron-McArthur-Ellis Fellow.

(Continued on back flap)

(Continued from front flap)

j a c k e t d e s i g n : j a m e s d e v r i e s

a u t h o r p h o t o s : w e s l e y c h a n n e l , t r a c y p o w e l l , p at r i c k a n d p at r i c i a s e g o v i a

Get inspired. Stay informed. Join the discussion. Visit www.hbr.org/books w w w.hbr.org /books

m a n aG e m e n t U S $ 2 5. 9 5

“ many baby boomers like to characterize the Facebook generation as entitled slackers. In reading the amazing stories of the leaders in Passion & Purpose, you quickly realize that nothing could be further from the truth. the reality is that this new generation of leaders is committed to making a difference and is ready to lead—not tomorrow, but now.”

— Bill GeorGe, Professor of management Practice, Harvard Business School; author, True North

“ It doesn’t matter where you begin your career. What matters most is developing the ability to connect the dots . . . the rarest and most valuable commodity in our work is those individuals who can bridge government, business, civil society, and academia in solving the biggest problems facing our society.”

—Carter roBerts, President and CeO, World Wildlife Fund

“ With america—and the world—at a major inflection point, strong and principled leader- ship is as crucial as it’s ever been. as this book shows, the younger generation is stepping up more and more each day to provide that leadership—in ways all of us should be paying attention to.”

— DaviD GerGen, Director, Center for Public Leadership at the Harvard Kennedy School; senior political analyst, Cnn; and former presidential adviser

“ the younger generation has an integrated identity that is consistent between workplace, home, and society . . . they not only want to make a difference themselves, they want to know that the company they work for is also making a positive contribution.”

—DeB Henretta, Group President, Procter & Gamble asia

“ the great challenge and the great opportunity we face today is the ability to work almost any time and any way. the new generation of leaders seems to embrace the opportunity side of this, approaching work more flexibly in terms of when and where it takes place.”

—Joe KenneDy, CeO and President, Pandora

“ Leadership is not being the CeO; leadership is influencing outcomes. Leadership is often without formal authority. I think that for a lot of these younger folks, they demonstrate the skills of leadership, but they also embody a new mind-set.”

—riCH lyons, Dean of Haas Business School, University of California–Berkeley

“ the next generation of leaders will have the opportunity to shape the world. they will deal with exciting and quite different challenges than their predecessors—all in the context of a globally connected and rapidly changing world.”

—DominiC Barton, Global managing Director, mcKinsey & Company

ISBN 978-1-4221-6266-8

9 7 8 1 42 2 1 62 6 68

9 0 0 0 0

john coleman daniel gulati w. oliver segovia foreword by bill george

Stories from the Best and Brightest

Young Business Leaders

H a r V a r D B U S I n e S S r e V I e W P r e S S

PASSION PURPOSE

PA S

S IO

N P

U R

P O

S E

coleman gulati

segovia How will the next generation of leaders shape business?

F rom questions about globalization and sustainability to issues surrounding diversity, learning, and the convergence

of the public and private sectors, tomorrow’s leaders have a lot to think about. But these big issues aren’t the only ones facing young leaders starting out in business today. What else are they focused on? And how do they prioritize the challenges and opportunities before them— while also making the world a better place?

In Passion & Purpose, recent Harvard Business School MBAs share personal stories about assuming the mantle of leadership in ways unlike any previous generation. In candid, often moving accounts of their successes and setbacks—from launching start-ups or taking on the family business to helping kids in the Arabian Gulf or harnessing new technology to develop clean energy—they reveal how their generation’s ideas, aspirations, and practices are radically reshaping business and transforming leadership.

Drawing on insights from a survey of five hundred students from top U.S. business schools, Passion & Purpose provides an overview of today’s big hot-button issues, followed by firsthand accounts from the young leaders who are tackling these issues head- on. Their personal stories are rounded out with broader perspectives from established luminaries in business, academia, and the public sector, including Dominic Barton (Global Managing Director of McKinsey & Company), Deb Henretta (Group President of Procter & Gamble Asia), Nitin Nohria (Dean of Harvard Business School), David Gergen (Director of the Center for Public Leadership at the Harvard Kennedy School, senior political

to learn more, visit: www.hbr.org/passion-purpose

Coleman10343_Mechanical.indd 1 9/26/11 5:03 PM

This document is authorized for use only by Tylecia Westbrook in WMBA-6000-3/MMSL-6000-3/MGMT-6000-3/WMBA-6000B-3-Dynamic Leadership2021 Spring Sem 01/11-05/02-PT2 at Laureate Education - Walden University, 2021.

PASSION PURPOSE

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PASSION PURPOSE

JOHN COLEMAN DANIEL GULATI W. OLIVER SEGOVIA

HARVARD BUSINESS REVIEW PRESS

Boston, Massachusetts

Stories from the Best and Brightest

Young Business Leaders

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No part of this publication may be reproduced, stored in, or introduced into a re- trieval system or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the pub- lisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

Library of Congress Cataloging-in-Publication Data

Coleman, John, 1981- Passion & purpose : stories from the best and brightest young business leaders /

John Coleman, Daniel Gulati, W. Oliver Segovia. p. cm.

ISBN 978-1-4221-6266-8 (alk. paper) 1. Leadership. 2. Executives. 3. Success in business. 4. Organizational

effectiveness. I. Gulati, Daniel. II. Segovia, W. Oliver. III. Title. IV. Title: Passion and purpose.

HD57.7.C644 2012 658'.049--dc23

2011025148

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Find more digital content or join the discussion on www.hbr.org.

The web addresses referenced and linked in this book were live and correct at the time of the book’s publication but may be subject to change.

www.hbr.org

mailto:permissions@hbsp.harvard.edu

Contents

Foreword, Bill George ix

Introduction 1

1. Convergence 11 Creating Opportunities Across Sectors

Floating Above the Boxes 17 Business, Nonprofit, and the Age of Falling Boundaries

UMAIMAH MENDHRO

Learning from Kibera 23 Nonprofit Lessons for Business from East Africa’s Largest Slum

RYE BARCOTT

Commerce and Culture 28 Combining Business and the Arts

CHRISTINA WALLACE

Iraq, Afghanistan, and the Business of Peace 34 JAKE CUSACK

Business in the World 41 How Corporations Can Be Change Agents

KELLI WOLF MOLES

Interview with David Gergen, adviser to four presidents, 47 Director of Harvard’s Center for Public Leadership, and senior political analyst for CNN

2. Globalization 55 Embracing the Global Generation

Bridging Two Worlds 61 An India Story

SANYOGITA AGGARWAL

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vi Contents

QatarDebate 67 Education, Civic Engagement, and Leadership in the Arabian Gulf

ANDREW GOODMAN

Emerging Social Enterprise 74 Learning the Business of Agriculture in Tanzania

KATIE LAIDLAW

Global Citizen Year 79 Learning from the World

ABIGAIL FALIK

The Business of Reconciliation 85 How Cows and Co-Ops Are Paving the Way for Genuine Reconciliation in Rwanda

CHRIS MALONEY

Interview with Dominic Barton, Global Managing Director 91 of McKinsey & Company

3. People 99 Leading in a Diverse World

Nonconforming Culture 104 How to Feel Comfortable in Who You Are No Matter Where You Are

KIMBERLY CARTER

Diversity Day 110 Whole People, Whole Organizations, and a Whole New Approach to Diversity

JOSH BRONSTEIN

Women and the Workplace 118 TASNEEM DOHADWALA

Joyful on the Job 124 A Generation Pursuing Happiness at Work

BENJAMIN SCHUMACHER

People Leadership from Baghdad to Boston 130 SETH MOULTON

Interview with Deb Henretta, CEO, P&G Asia 134

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4. Sustainability 139 Integrating Preservation and Profits

A Sustainable Career 145 ANNIE FISHMAN

From Safety Nets to Trampolines 151 VALERIE BOCKSTETTE

The Value of Community Partnerships in 158 Addressing Climate Change

CHARLEY CUMMINGS

Interview with Carter Roberts, CEO, World Wildlife Fund 164

5. Technology 171 Competing by Connecting

Building an Online Marketplace 175 JAMES REINHART

Technology and Social Good 181 Loans, Relays and the Power of Community

SHELBY CLARK

Mobile Millennials 185 JASON GURWIN

Interview with Joe Kennedy, 191 CEO and President of Pandora

6. Learning 197 Educating Tomorrow’s Leaders

The Leadership Boot Camp 203 Training the Next Generation of Corporate Leaders

KISHAN MADAMALA

The MBA of Hard Knocks 210 Why Fast Failure Is the Best Thing for Business Education

PATRICK CHUN

The New Corporate Classrooms 216 Training’s Tectonic Technological Shift

MICHAEL B. HORN

Contents vii

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Tackling Financial Illiteracy 223 ALEXA LEIGH MARIE VON TOBEL

The Education of a Millennial Leader 228 JONATHAN DOOCHIN

Interview with Rich Lyons, Dean, Haas Business School, 235 University of California–Berkeley

Moving Forward 243

Capstone Interview with HBS Dean, Nitin Nohria 246

Appendix: About the Passion and Purpose MBA Student Survey 255

Notes 263

Acknowledgments 273

Index 275

About the Contributors 289

About the Authors 295

viii Contents

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Foreword

Many baby boomers like to characterize the Facebook generation as enti-

tled slackers. In reading the amazing stories of the leaders in Passion and

Purpose, you quickly realize that nothing could be further from the truth.

The reality is that this new generation of leaders is committed to making a

difference and is ready to lead—not tomorrow, but now.

The authors of this remarkable collection of twenty-six stories, all writ-

ten by exceptional young leaders, were deeply impacted by the leadership

failures of 2008 that led to the Great Recession. The three authors con-

clude, “We have faith in the young generations of leaders who have wit-

nessed the lessons of the crisis and are now seeking to learn from the

mistakes that were made and offer a new vision for the future.”

Georgian John Coleman believes that “business offers solutions to

some of the most pressing problems we face.” Filipino Oliver Segovia

quotes the local saying, “He who doesn’t appreciate his roots shall never

succeed.” Australian Daniel Gulati saw firsthand examples of how organi-

zations can meet their financial goals and simultaneously make positive

contributions to society.

Unwilling to wait their turn in line, these leaders are already having

enormous impact. Look at the global citizens being developed by Abby

Falik, the transformation of leadership that Jon Doochin is leading at

Harvard College, Marine Captain Rye Barcott’s initiative to help the

slums of Kenya’s Kibera become a safe community that works for

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everyone, and Katie Laidlaw’s efforts to make agriculture in Tanzania

profitable for all. Theirs are just a few of the initiatives that vividly illus-

trate how this generation of leaders really is different from mine.

Anthropologist Margaret Mead once said, “Never doubt the power of a

small group of people to change the world. Indeed, it is the only thing that

ever has.” Through their initiatives, young leaders are confirming Mead’s

wisdom.

My generation started out just as idealistically as these young leaders.

We were kids of the Kennedy era who flocked to Washington, D.C.,

Selma, and Watts to try to change the world. Somewhere along the way

we lost sight of that idealism. Was it the futility of the Vietnam war and

the assassinations of the Kennedy brothers and Martin Luther King, Jr.,

or were we seduced by flawed economic theories into believing that self-

interest should take precedence over the common good? Whatever the

answers, the leadership failures of the last decade—from the fall of

Enron through the economic meltdown of 2008—have vividly demon-

strated the flaws in twentieth-century leadership and the need for a new

generation of leaders to take charge.

The response of this new generation, as these stories vividly illustrate,

is to use their talents now to make a positive impact in helping others. As

a professor of management practice at Harvard Business School the past

eight years, I have had the privilege of working closely with several of

these leaders and many more like them.

After completing my tenure as CEO of Medtronic in 2001 and board

chair in 2002, I took a working sabbatical in Switzerland to teach at two

leading Swiss institutions. It was there that I decided to devote myself for

the next decade to helping develop the next generation of leaders, from

MBA students to the new generation of corporate CEOs. In early 2004 I

returned to my alma mater, Harvard Business School, to help launch a

new course, Leadership and Corporate Accountability, and later created

Authentic Leadership Development, a course based on leading from

within and built around six-person Leadership Development Groups.

During these years I have spent hundreds of hours in the classroom

and many more in private discussions with students in my office.

x PASSION AND PURPOSE

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Through these open, thoughtful, often poignant talks, I have learned just

how committed these young leaders are about using their talents to have

an impact. They are willing to work countless hours to realize their

dreams, yet they also want to lead integrated lives. I have seen them fol-

low their hearts to unite people around common causes, and the impact

has often been stunning.

Their approach to leadership differs sharply from that of the baby

boomer generation. Command-and-control is out. So is exerting power

over others. They eschew bureaucracy, hierarchical organizations, and in-

ternal politics. That’s why many are opting to start their own organizations

rather than joining established institutions.

The focus of their leadership is to build on their roots and align people

around a common purpose and shared values. They recognize that they

cannot accomplish their goals by using power to control others, as so

many in my generation did. Instead, they amplify their limited power by

empowering others to take on shared challenges.

Their leadership style is collaborative, not autocratic. Nor are they

competitive with their peers. They seek to surround themselves with the

most talented people representing a wide range of skills that can be help-

ful in achieving their aims. They care little who gets the credit, so long as

their mutual goals are achieved. Most of all, these young leaders seek to

serve, using their gifts and their leadership abilities.

One of the characteristics of this new generation of leaders is their

ability to move easily between the for-profit, nonprofit, and government

sectors. In fact, that’s because many of them have worked in all three sec-

tors. They have firsthand knowledge of how people in each of these sec-

tors think, how they measure success, and how they get things done. A

number of the contributors to this book have joint master’s degrees in

government and business, with a substantial dose of social enterprise

courses and projects.

This broad perspective is increasingly important because developing

workable solutions to the world’s intractable problems—global health,

energy and the environment, education, poverty and jobs, and global

peace—requires multisector approaches. For example, take the challenges

Foreword xi

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of AIDS in Africa. It isn’t sufficient for pharmaceutical makers like Glaxo-

SmithKline to give their AIDS drugs away. It takes support from local gov-

ernments to get the drugs to the people who need them most, NGOs like

Doctors Without Borders to administer the drugs to HIV patients, and

funds from global organizations like the World Health Organization and

the Bill & Melinda Gates Foundation. These emerging leaders, with the

diversity of experiences they have accumulated before the age of thirty,

understand how to bring people together from these organizations and get

them to collaborate to solve major problems.

That’s what former Marine Captain Rye Barcott is doing to address the

problem of poverty in Kibera, Nairobi’s largest slum. While still a student

at the University of North Carolina, Barcott formed Carolina for Kibera,

investing $26 and combining it with the sweat equity of nurse Tabitha

Festo and a local youth named Salim Mohamed. Incredibly, he was able

to build this new organization while serving for five years as a counterin-

telligence officer in Bosnia, Iraq, and the Horn of Africa.

Barcott sees similarities between the tactics he used in building the

Kibera community and the Marines’ task in community building in war-

torn towns like Fallujah, Iraq. He writes, “I feel fortunate to have been

able to work across the public, private, and nonprofit sectors at a young

age, and I aspire to continue to incorporate such a balance throughout my

life. The solutions to our world’s toughest problems, such as the growth of

megaslums, require full engagement and collaboration from each sector,

and we have no time to waste.”

These leaders of the future are global in their outlook and comfortable

working across diverse cultures. By the time they reach graduate school,

they have lived and worked all over the world. In sharp contrast, I never

traveled outside North America until my honeymoon at twenty-six, and

first moved overseas at age thirty-seven.

Abigail Falik is typical of this new generation. Completing her MBA in

2008, Falik didn’t follow her classmates into financial services or consult-

ing. Instead, she took a big risk and founded Global Citizen Year. Its pur-

pose is to enable talented high school graduates to do a gap year of service

before entering college by immersing themselves in a developing country.

xii PASSION AND PURPOSE

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In a sense, Falik is trying to replicate for others the experience she had

as a sixteen-year-old in a rural village in Nicaragua. She believes these

formative experiences will enable young people to learn the empathy and

gain the insights they need to address twenty-first-century challenges.

Falik concludes, “Not until we walk in another’s shoes can we truly feel

others’ hopes and fears, and have the wisdom to know what it would

mean to work together toward a common cause.”

Katie Laidlaw had a similar experience in Tanzania during a summer

internship with TechnoServe, studying how to make fruit and vegetable

markets run profitably. She concludes, “This experience confirmed my

own hypothesis that future leaders will be better equipped to tackle the

problems of tomorrow by being successful in operating across geogra-

phies and sectors today.”

The Facebook generation may be the first that is genuinely color-blind,

gender-blind, and sexual preference–blind. Writes former HBS LGBT

president Josh Bronstein, “My call to action for our generation is simple:

be authentic. That means bringing your whole self to work, not just those

characteristics that you think your employer wants to see . . . A defining

characteristic of our generation is that we want to be recognized as indi-

viduals—not anonymous cogs forced to think, act, and dress in the same

way.”

These new leaders are changing the way leaders are educated as well.

Jonathan Doochin, who struggled with dyslexia throughout his school

years, couldn’t wait to graduate from Harvard College to transform the

school’s education of future leaders. During his senior year Doochin

founded the Leadership Institute on the premise that developing leaders

requires practical experiences that cause individuals to reexamine their

perspective of the world, learn to empathize with others, and develop

their unique leadership style.

Doochin organizes students into Leadership Development Groups that

enable them to understand their authentic selves by sharing their life sto-

ries, how they have coped with their failures, and what brings them gen-

uine happiness. Doochin writes, “Each of us has the capacity to lead . . . all

of the mysterious qualities that once defined ‘leadership’ are not inherent,

Foreword xiii

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but eminently teachable . . . The model for leadership is not one-size-fits-

all, but should be individualized as we play to our own strengths and per-

sonalities.”

In 1966 Robert F. Kennedy, Jr., said prophetically, “Few will have the

greatness to bend history itself, but each of us can work to change a small

portion of events. It is from numberless diverse acts of courage and belief

that human history is shaped.” The acts of these young leaders will write

the history of this generation as they focus their talents on making the

world a better place for everyone.

If these emerging leaders stay on course through the inevitable pitfalls,

setbacks, and disappointments, I have confidence their accomplishments

will exceed their greatest expectations. The time is ripe for the baby

boomers to provide emerging leaders the opportunities to take charge.

Their passion and dedication to their purpose gives all of us hope that our

future is very bright indeed.

—Bill George

Bill George is professor of management practice at Harvard Business

School and former chair and CEO of Medtronic, Inc. He is the author

of four national best-sellers: Authentic Leadership (2003), True

North (2007), Finding Your True North: A Personal Guide (2008),

and 7 Lessons for Leading in Crisis (2009). His newest book, True

North Groups (2011), was released in September 2011.

xiv PASSION AND PURPOSE

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Introduction

It’s been an interesting time to come of age in business.Arguably, the past decade has been one of the most intriguing and terri- fying in history. Technological innovation has led us from the infancy of

the Internet to the nearly ubiquitous online connectedness, social net-

working, and location-based technology we enjoy today. The world order

has shifted dramatically—billions of people in developing economies have

joined the ranks of the middle class, and business has become ever more

global, with goods and services moving more freely over national bound-

aries and corporations seeking greater growth in transnational commerce.

And, of course, the global economy crashed, falling from a period of un-

matched prosperity into one of frightening destruction and uncertainty.

It’s an era that cries out for new leadership and new thinking. And it’s

an era that has left a generation of young leaders wondering how they can

contribute even as they seek a life of meaning, passion, and purpose in

the private sector. Whether in the world’s biggest corporations, local

small and medium business, or nimble start-ups, they aren’t entering

business solely for financial gain, but as a way to find meaningful work

and make a positive difference in the world.

Yet few forums have provided these young leaders an outlet to voice their

visions for the future, to highlight the trends they’ve seen emerge from the

chaos of the last decade, or to offer both practical advice and hopeful inspi-

ration to their friends and colleagues as they embark on their careers.

We hope this book helps fill that void. Our purpose? To share the sto-

ries of young business leaders and thereby give a glimpse into the future

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2 PASSION AND PURPOSE

of business and leadership—offering both practical learning and inspi-

ration. To do this, we “crowd-sourced” much of the content—asking

more than twenty young business leaders to tell their stories, conduct-

ing an exclusive MBA Student Survey of more than five hundred cur-

rent and recent MBAs from top U.S. business schools, and interviewing

seven business luminaries who offer a seasoned perspective on the

themes analyzed.

We “crowd-sourced” in this way because we wanted to present a

broader set of views than the three of us could provide alone; we’ve been

constantly impressed with and encouraged by the vision, entrepreneur-

ship, and passion of our classmates and colleagues, and we wanted to

give readers a better sense of that diversity. We also wanted to capture

their views on several key themes we saw among the young leaders in our

cohort. We organized those themes into six chapters and put out a call

for submissions, from which the book’s stories were drawn. We derived

these six chapter themes from our own experiences in school and in the

workplace; from conversations with friends, professors, and colleagues;

and from the input we got from more than a hundred initial essay

proposals. We read through these proposals in depth, looking for the

most interesting, compelling, and inspirational stories, then worked over

the course of three years to refine them—evolving our six themes in the

process.

For young leaders today we believe these are the core issues—sector

convergence, globalization, people leadership and diversity, educational

evolution, technology, and sustainability. The chapters built around them

illuminate the topics from the point of view of young leaders who are

finding passion and purpose in their profession and reimagining the fu-

ture of business leadership. The stories that follow, however, aren’t frame-

works, nor do they follow a single narrative with one point of view. Rather,

they are powerful, candid accounts of successes and setbacks, personal

dilemmas, and reflections on the future. From launching start-ups in

Boston to taking on the family business in India; from teaching debate in

the Arabian Gulf to helping rebuild war-torn Rwanda; from striving for

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Introduction 3

gender equality in the workplace to helping people bring their “whole

selves” to work, these stories reveal that leadership is a deeply personal

journey unique to every individual.

The structure of the book is simple.

First, each chapter begins with a short introduction that frames the

context of the chapter.

Second, the chapter illustrates and elaborates on these trends through

several stories from current and recent MBAs who are trying to make a

difference in a fast-changing world.

Third, these stories are supported by outside research and our own

MBA Student Survey. Between September and October of 2010, we con-

ducted a survey of more than five hundred current and recent MBA stu-

dents from Harvard Business School (HBS), Stanford, Darden, Tuck,

Wharton, MIT Sloan, and other business schools. We’ve collected and

analyzed those results here.

Finally, each section is capped by an interview with a senior leader—

distinguished men and women such as Dominic Barton (global managing

director of McKinsey & Company), David Gergen (adviser to four presi-

dents, Director of Harvard’s Center for Public Leadership, and senior po-

litical analyst for CNN), Rich Lyons (dean of Haas Business School,

former chief learning officer of Goldman Sachs), Deborah Henretta

(president of P&G Asia), Joe Kennedy (president and CEO of Pandora),

and Carter Roberts (CEO of World Wildlife Fund). These leaders pos-

sess a rich array of experiences that make them uniquely positioned to

comment on the generational changes taking place in business.

HBS professor and former Medtronic CEO Bill George introduces the

book with a foreword on his views of the challenges and opportunities

that will confront young leaders, and HBS Dean Nitin Nohria ties these

themes together with a concluding interview. We then cap the discussion

with a detailed appendix of the results of our MBA Student Survey.

The result is a holistic picture—quantitative and qualitative, empirical

and anecdotal—about the trends we see shaping the passions of young

leaders and the future of business.

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4 PASSION AND PURPOSE

Why Passion and Purpose

So who are we, and why is finding passion, purpose, and a new vision for

the future important to us?

For John, business has been an experiment. A product of Georgia and

Florida, he grew up with an appreciation for the power of private enter-

prise. His dad, a former rodeo cowboy turned financial advisor, had used

business to build opportunities for his family; but for most of high school

and college, John thought he’d more likely be a journalist or professor

than a marketer or investment banker. Then, after an itinerant year fol-

lowing his college graduation, John found an organization in business that

still allowed him to think about hard problems, write a little on the side,

and take his ideas from the printed page to organizations where he could

put them into action. He met colleagues he genuinely enjoyed and found

mentors willing to take chances on him and invest in his future.

And the more businesspeople he met, the more he realized his private sec-

tor colleagues were some of the most passionate people he’d encountered—

many pursuing their careers not out of necessity but because it was through

those careers they’d found purpose, a way to channel their talent and cre-

ative energy. He saw businesses creating opportunities for millions of peo-

ple, and while he’s never abandoned his other passions, he truly believes

that business offers solutions to some of the most pressing problems we

face. Passion and Purpose was a way for him to think more deeply about

those solutions and meet some of the young people creating them.

Every day of his first year at HBS, meanwhile, Oliver would see the

Philippine flag displayed across his section’s classroom. In HBS, first-year

classrooms are adorned by the flags of each student’s country of origin.

For Oliver, this was a powerful reminder of the importance of the past,

and how the past helps leaders form their self-identity through their per-

sonal stories. In Filipino, there’s a saying: “Ang hindi marunong lumingon

sa pinanggalingan ay hindi makakarating sa paruruonan” (“He who doesn’t

appreciate his roots shall never succeed”).

The Philippines has a turbulent past. One of the most prosperous Asian

economies after World War II, decades of institutional corruption and

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political upheaval since the Marcos era in the 1970s have stagnated

growth. It’s the resiliency of private businesses and overseas remittances

that have kept the country afloat. Oliver’s story reflects those of millions of

Filipinos living around the world. In his twenties, he too worked abroad

and also became part of the Filipino diaspora. His interest in business and

leadership was sparked by growing up with entrepreneurial parents. Wit-

nessing everyday the immense poverty and inequality that persists in his

homeland and in other parts of Asia, he came to believe in the power busi-

ness can have to make a difference in the world. Oliver believes that the

stories of young leaders featured in Passion and Purpose can help catalyze

similar reflections in young people throughout the developing world.

Daniel came to HBS with a sense of optimism about the role of busi-

ness in the world. Like Oliver, Daniel spent his childhood outside the

United States—in Wollongong, a seaside Australian city. Over the course

of his young adult life, Daniel witnessed firsthand the power of business

to change lives. Whether observing a start-up, a large investment bank, a

management consulting firm, or a mature industrial company, Daniel saw

examples of how organizations could simultaneously meet their financial

objectives and contribute enormously to modern society.

It is this raw conviction that motivated Daniel to write Passion and Pur-

pose. At the time of the financial crisis, journalists accused “businesspeo-

ple”—particularly alumni of top business schools who had reached

executive-level positions—of arrogance and greed. At a time when the

world desperately needed glimmers of hope, this negative stereotyping

hid from public view the individual stories of young people using business

as a lever to positively impact their communities. The stories of these

young business leaders—the best and brightest—had to be told.

In the spring of 2009, Oliver ran an article in the HBS campus news-

paper looking for someone to help coauthor a book on our generation’s

ability to “reimagine leadership” in the midst of crisis. John responded al-

most right away. Then he and Oliver spent the next few months working

with former Random House CEO and HBS senior lecturer Peter Olson

to think through a book manuscript that could help voice the aspirations

of the friends and colleagues with whom they interacted every day while

Introduction 5

107124 00 001-010 INT r2 vs copy 9/19/11 8:09 PM Page 5

offering a fresh and compelling view of the future. In the fall of 2009,

Dan joined the team, and gradually we came up with an idea—a crowd-

sourced book on leadership, targeted toward the younger generation, that

could help give voice to new visions of leadership.

Today’s Young Leaders: Passionate and Purposeful

Young businesspeople want to find purpose in their profession and have a

passion for what they do. As they come of age, they are growing up with the

belief that business can provide us with a way of translating a meaningful,

personal purpose into work that impacts the world in a positive way. In our

own 2010 survey of more than five hundred current or recent MBAs, “intel-

lectual challenge” came up as the most important reason for choosing one’s

work, significantly more important than compensation or a firm’s prestige.

We hear a lot about generations—millennials, Gen-X’ers, boomers—

but whatever you call them, today’s young leaders have a fresh perspective

about what it will take to lead moving forward. They’re twenty-somethings

in the early years of their careers, but they’re in jobs that require tremen-

dous amounts of responsibility, whether it’s managing a brand, starting a

new venture, or transitioning in the family business. Most have a few

years of work experience and are readying themselves for the next step in

their careers, such as getting promoted, moving abroad, or joining another

company. They are current MBA students and recent graduates embark-

ing on new paths after business school. Regardless of what stage they’re

in, these young leaders share several characteristics.

According to the Pew Center, they are the most educated generation in

history—in the United States, 54 percent of millennials have college de-

grees, compared to 36 percent of boomers.1 In our own survey, fully 80 per-

cent agreed or strongly agreed with the statement, “My generation views

business leadership differently than previous generations.” Moreover, they

see the world differently compared to previous generations. According to

the IBM Future Leaders Survey, 77 percent of current MBAs see rising

complexity in the current environment, compared to 60 percent of current

6 PASSION AND PURPOSE

107124 00 001-010 INT r2 vs copy 9/19/11 8:09 PM Page 6

CEOs.2 And 65 percent of students believe that the scarcity of resources—

water, food, land, and talent—will significantly impact businesses in the

next few decades, compared to 29 percent of CEOs.

These emerging business leaders represent a shift in thinking. They

have exciting visions for the future. They are the first generation raised in

a truly global and networked world. They’re thinking about careers that

integrate the public, private, and nonprofit sectors; and they’re learning

from the current crisis in ways that we hope will lay the foundation for an

ethical and economic recovery and long-term innovation.

As previously mentioned, our chapters are organized around six core

themes we see as prominent in the lives of rising young business leaders:

• Convergence: Creating Opportunities Across Sectors. More than any-

thing else, we hear from our colleagues about the convergence of

the public, private, and nonprofit sectors. In the nonprofit world, the

term social enterprise has recently gained prominence to describe

organizations with a social purpose but a self-sustaining business

model. More students, even early in their careers, are switching

between the sectors almost frenetically—cross-applying lessons

from government and nonprofit to business and vice versa. In this

chapter, contributors reflect on their cross-sector experiences, and

CNN analyst and presidential advisor David Gergen talks about

generational changes in cross-sector careers.

• Globalization: Embracing the Global Generation. As globalization has

leveled the walls between countries, the first decade of the twenty-

first century has led to an unprecedented opportunity for collabora-

tion, cooperation, and learning. Young leaders are gaining

international experience earlier in their careers, shaping the first

truly global generation of young leaders. Here, several young

businesspeople talk about learning to lead in a global world, and

McKinsey & Company global managing director Dominic Barton

talks about his own global career and what it will take to survive in

an environment in which national boundaries are lower than ever.

Introduction 7

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• People: Leading in a Diverse World. As labor force participation in-

creases and old racial, class-based, religious, and gender barriers

are gradually lowered, the workplace will benefit from the

multiplicity of perspectives that these newly integrated groups can

bring. Our contributors look at ways that unprecedented diversity is

impacting the workplace and how rising business leaders can em-

brace that diversity as a way to generate greater happiness and

more “wholeness” at work. They also look at how leading diverse

people requires diverse leadership experience. P&G Asia president

Deborah Henretta talks about P&G’s efforts to use diversity to cre-

ate greater people leadership and how the next generation can

shape these trends.

• Sustainability: Integrating Preservation and Profits. One of the biggest

trends in global business has been the push for sustainability. Many

businesses are attempting to become more environmentally

friendly and, in the process, more cost effective and energy effi-

cient. The young people in these firms are now focused clearly on

“green” business and alternative energy—and think of sustainability

as a way to build a career. They’re also emphasizing a culture of en-

vironmental intelligence that emphasizes eliminating the trade-offs

that have made sustainability movements so unsustainable in the

past. Contributors discuss their own passion for sustainability, and

World Wildlife Fund CEO Carter Roberts talks about building a

sustainable world through sustainability-focused careers.

• Technology: Competing by Connecting. No discussion of the

future of business would be complete without thoughtfulness

about the way technology—social media, mobile connectivity, and

transportation—is revolutionizing business. Today’s young leaders

are the first to have truly come of age in a connected society, and

our contributors—including founders of innovative new technology

companies like thredUP and RelayRides—talk about the ways in

which technology has influenced their lives and will change the

way organizations do business. Pandora president and CEO Joe

8 PASSION AND PURPOSE

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Kennedy talks about life, career, and innovation in the fast-

changing world of online technology.

• Learning: Educating Tomorrow’s Leaders. By many conventional

measures, the next generation is one of the most educated in his-

tory, and young businesspeople are looking increasingly to educa-

tional experiences, within or beyond their everyday jobs, to make

them better managers and leaders. Yet there’s a growing feeling

among young business leaders that current learning models are not

enough. Amid increasing complexity and uncertainty, how are

young people learning to lead? Our contributors discuss learning in

business school, through entrepreneurship, and in corporations;

Haas Business School Dean and former Goldman Sachs chief

learning officer Rich Lyons talks about what business learning has

looked like and what it will look like in the years ahead.

Within each of these topics, we seek to explore the subtrends that make

them meaningful, and we support these trends in a few distinct ways.

We should note that we don’t consider ours the only perspective on

these issues. We developed our views based on conversations with profes-

sors and colleagues, independent and external research, and reflections

on our own experiences. But our writers come from one school (HBS)

among many. More than anything, this focus resulted from our own un-

derstanding of how difficult it would be to capture the impossible diver-

sity of all young leaders in fewer than thirty stories. And so, we focused on

a subsegment of classmates and friends we know well, hoping that this

effort becomes part of a wider discussion. We want this to be an invita-

tion to other schools, businesses, and institutions to join the conversation

about how passion and purpose shape one’s path to leadership. To that

end, you can find more material—from blog posts, new stories, videos,

and more—at www.hbr.org/passion-purpose, where we’ll continue to post

stories from young leaders at HBS and around the world.

These are trying times—but with every challenge, there is also opportu-

nity. We—the authors of this book—have faith in the rising generation of

leaders who have witnessed the lessons of the crisis and are now seeking

Introduction 9

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www.hbr.org/passion-purpose

to learn from the mistakes that were made and offer a new vision for the

future. As a global community, our goal should be to come out of these

most recent challenges stronger, more united, and more dedicated than

before to gaining purpose from our work and living with a passion for the

future.

—John, Daniel, and Oliver

10 PASSION AND PURPOSE

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CHAPTER 1

Convergence Creating Opportunities Across Sectors

I believe that in the years ahead, the organization and expansion of

public-goods markets will become one of the most important areas of

philanthropy, and will be an area where philanthropy sometimes

blurs into strict private enterprise.

—Bill Clinton, 20071

What do a Pakistani dreamer, a Swahili-speaking ex-marine, and aninvestment banker have in common? In many ways, not much. Their careers have been as messy and, at times, unfocused. But they

share a common desire prevalent among many of today’s young business-

people to work across sectors—managing careers in the for-profit, non-

profit, and government arenas—often building both financial well-being

and a legacy of social good.

Fortunately for them, the world seems to be moving in the same direc-

tion. In the United States, GDP grew 36.6 percent between 1994 and

2004, but, according to the Urban Institute, nonprofit revenues grew an

astounding 61.5 percent over the same period; and in 2005, more than 61

million Americans volunteered.2 While private sector employment col-

lapsed in the most recent economic crisis, public employment in the

United States remained relatively stable—with high-profile public sector

agencies like the U.S. Treasury attracting top talent from private industry,

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12 PASSION AND PURPOSE

and public sector salaries surpassing those of employees in the private

sector.3 Simultaneously, the past several decades have seen the privatiza-

tion of many previously government-operated activities—in transporta-

tion, utilities, and warfare—even as sovereign wealth funds, public-private

partnerships, and other hybrid organizations have begun to gain promi-

nence on the international stage. The approaching reality is that, in many

cases, meaningful distinctions between these sectors and their activities

are disappearing even as talented young professionals seek to chart ca-

reers that cross traditional boundaries.

This is certainly not a novel concept. Business schools have produced

a number of notable participants in the public and nonprofit spheres, in-

cluding Hank Paulson, Robert McNamara, Mitt Romney, Michael

Bloomberg, George W. Bush, Elaine Chao, P. Chidambaram, and Antony

Leung, to name a few. But the prevalence with which graduates actively

seek cross-sector careers seems to be growing.

HBS’s Social Enterprise Initiative, founded in 1993, now has nearly a

hundred involved faculty and more than four hundred cases and notes for

use in classroom environments; the student-run Social Enterprise Club is

one of the school’s largest, with more than four hundred members.4 The

mission of the Yale School of Management—“to educate leaders for

business and society”—explicitly outlines this cross-sector focus. And

many of today’s top social entrepreneurs are business school grads, like

Stanford’s Jessica Jackley, cofounder of Kiva.5 HBS saw a 106 percent in-

crease in the number of students finding employment in the government

and nonprofit sectors between 2008 and 2009.6 And many business and

law schools support this transition with various loan forgiveness and

fellowship programs that encourage work in the government and social

enterprise sectors.

In our own survey, we found an astonishing amount of interest and ex-

perience in cross-sector careers (see figure 1-1). Despite the fact that all

of our respondents were students of self-described business schools, 30

percent had worked in the public sector prior to school and 30 percent in

the nonprofit sector. Thirty-nine percent believe they will have worked in

the nonprofit sector within ten years of graduation, with 33 percent

predicting work in the public sector.

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 12

Convergence 13

95 Private

Nonprofit

Public

I have worked in the following sectors. Within ten years I will have worked in the following sectors.

F I G U R E 1 - 1

Employment experiences and expectations

Further, 11 percent of those surveyed had worked in all three sectors,

and of those who worked in the private sector prior to school, 24 percent

had also worked in the public sector and 30 percent in the nonprofit sector.

When asked about the nature of this overlap, the response was even more

astonishing (see figure 1-2). Fully 88 percent of respondents answered

“agree” or “strongly agree” when prompted with the statement, “Most busi-

ness principles can be transferred to the public or nonprofit sectors,” with

rates not differing appreciably depending on whether the respondent had

worked in the public, private, or nonprofit sector. And 84 percent answered

F I G U R E 1 - 2

MBA views on cross-sector interaction

Percent who agree or strongly agree with the following statements

88% 84% 84%

20%

40%

60%

80%

100%

Most business principles can be transferred to the public or nonprofit

sectors.

It is essential for business leaders to understand

the public and/or nonprofit sectors.

There is increasing overlap between business, nonprofit, and the

public sector.

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 13

14 PASSION AND PURPOSE

“agree” or “strongly agree” to the statement, “It is essential for business

leaders to understand the public and/or nonprofit sectors.” Further, 84 per-

cent of respondents saw “increasing overlap between business, nonprofit,

and the public sector.”

This shouldn’t surprise us. Our generation has been raised in an era of

global privatization of public utilities and in an America where banks and

even automakers have been “bailed out” by the federal government. We’ve

seen arguably the greatest businessperson of recent decades, Bill Gates,

become the world’s most prominent philanthropist; and we’ve seen next-

generation businesses, like Google, frame their mission statement in social

terms: “Don’t be evil.” Democratic revolutions are now facilitated by social

networking sites like Facebook and Twitter. And while not all of this conver-

gence is necessarily good, it’s happening. What should you do about it?

Managing the Next-Generation Career for Convergence

For young professionals, this convergence alters the landscape of career

opportunities and changes the ways in which we seek training, education,

and mentorship.

First, successful young businesspeople will need knowledge of how

the nonprofit and public sectors work, and employees in those sectors

will need a better understanding of business. Some graduate school pro-

grams, like Harvard’s, offer joint master’s degree programs from their

business and public policy schools. Stanford offers a similar joint pro-

gram with its school of education, and many young professionals are

seeking such cross-sector work early in their careers to cement their

credibility across sectors.7 Young professionals can scarcely hope to op-

erate effectively in private sector enterprises like finance, health care, or

even agriculture without an extensive knowledge of the public sector,

and the increasing relevance of models like microfinance make nonprof-

its relevant to those businesses as well. For the next generation, cross-

sector training and understanding will be essential to effective

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Convergence 15

leadership—particularly because best practices can and should be

shared between sectors.

Second, the “boxes” into which professionals once conveniently confined

their careers are not as relevant or constraining as they may have been for pre-

vious generations. Businesspeople don’t have to either relegate their non-

profit and public sector work to nights and weekends or to later in their

careers. Private sector organizations themselves increasingly incorporate po-

sitions that intersect closely with social and public sector work—in govern-

ment relations, social initiatives, sustainability, and other areas. For instance,

TOMS shoes promises that for every pair of shoes bought by a consumer, it

will give away one pair to a needy child.8 The structure of the firm allows it to

increase its brand recognition through its social initiatives and free media,

while doing good and attracting employees who are looking for purpose-

driven careers. Many professionals are also finding value transitioning be-

tween public and private organizations early in their careers. For those

seeking to chart careers, these options should gain increasing consideration.

Managing the Modern Organization for Convergence

Similarly, managers will have to acknowledge these trends and work to

position their organizations for an environment that reflects them and a

labor force that desires them.

From the perspective of current executives, those tasked with managing

the next generation should seek to use these young professionals’ interest

and experience in cross-sector initiatives to their advantage. For genera-

tions, business has recognized the valuable leadership experience provided

by the U.S. military, but understanding more broadly the role that those

who have worked in emerging markets, public organizations, FOPSEs (for-

profit social enterprises), political campaigns, think tanks, and academic

organizations can have in private sector organizations will be essential to

managers who wish to navigate a new environment where the sectors are

more closely intertwined. Similarly, managers in nonprofit and government

should continue awakening to the increasing usefulness of private sector

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16 PASSION AND PURPOSE

experience, models, and best practices in their organizations. In a 2007

Atlantic Monthly article, journalist Jonathan Rauch noted the ways in

which Bill Clinton was incorporating private sector practices, employees,

and models into his own nonprofits; and organizations like the Gates Foun-

dation and governments like Singapore have followed similar paths. Multi-

national organizations in particular—which must often interact with hybrid

government/private sector industries in a multiplicity of countries, from

China to Great Britain—must be keenly sensitive to this transition.

These managers should also seek not only to hire talent that under-

stands the cross-sector perspective, but also to train their workforce to

value these experiences and offer opportunities to young professionals to

pursue jobs—temporarily or permanently—that suit their passions. The

consulting firm McKinsey & Company, for example, offers professionals

an opportunity to do private, public, and nonprofit work simultaneously

(as law firms have done for many years); and organizations like Bain &

Company offer opportunities through partner or sister organizations that

allow professionals to work on social problems about which they are pas-

sionate while gaining valuable experience they can later transmit back to

the firms for which they work. Public organizations and political bodies—

in Singapore, Brazil, and even the United States—seem to be placing a

higher premium on business experience, with many policy makers moon-

lighting in the private sector between appointments and administrations.

The result is a different way of thinking about value creation in busi-

nesses. Senior managers create value not simply by defining an opportu-

nity, crafting a strategy, and allocating economic and human capital.

More and more, the real challenge of leadership lies in creating roles, or-

ganizations, structures, and belief systems that allow disparate individu-

als to work together in pursuit of a common vision.

Organizations in every sector would be better served by acclimating to

a new environment in which all three sectors are gradually and in certain

ways, converging—and organizations can use the talents and passions of

a new generation of cross-sector professionals to help them chart their

courses. And young leaders should feel empowered to find their passion

and purpose in cross-sector careers.

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Convergence 17

Floating Above the Boxes Business, Nonprofit, and the Age of Falling Boundaries

Born in Pakistan and raised in Saudi Arabia, UMAIMAH MENDHRO

was the first woman in her family to leave the country for higher ed-

ucation. She studied human development at Cornell University and

completed her MBA from Harvard Business School as a Baker

Scholar. Umaimah is currently a senior manager at Microsoft Cor-

poration, where she leads corporate entrepreneurship and incuba-

tion efforts. She is also the cofounder of thedreamfly.org, a global

initiative that strives to create human connections across commu-

nities in conflict around common causes.

Nothing but the bleak darkness of a starless night. Deafening thumps of

what felt like a thousand elephants marching into our living room. Shrieks

of panic. My first reconstructed memory of life. “What did my father do?

Why are all the soldiers after him?” In 1980, when Zia Ul Haq proclaimed a

military coup, my parents, young aspiring revolutionaries-cum-physicians,

escaped Pakistan with their two toddlers in the middle of the night to buy

survival in return for a life in exile in Saudi Arabia. “It must’ve been some-

thing all the big, powerful people despised,” my five-year-old self thought.

“Interesting . . . we’re all somehow alive and doing fine.”

My ten-year-old self, covered from head to toe in an ultraconservative

Arabic garb, holding tight to my mother’s hand, walking and dodging

strange men’s nasty stares. Sitting cross-legged on princely rugs in the

vast, serene, open spaces of Haram-al-Sharif, observing rows of women

in black and men in white, now heads on the ground, now standing

upright, now hands on the knees, connecting with their creator on

command. Makkah looked to me like an exotic and spectacular world

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www.thedreamfly.org

18 PASSION AND PURPOSE

of contradictions, a place where I clung to any opportunity to form, rather

than find, an independent identity. With manufactured dreams and opin-

ions, which the big people might honor or despise, I began to love the

feeling of freely floating in thin air, right above the borders of right and

wrong as defined by a people, charting out my own rules of good and evil.

We returned to Pakistan after eleven years, when democracy was finally

restored.

“Duck, now!” my father exclaimed to all of us in the backseat. I peered

out the window, terrified. A growing crowd of angry young men, with

clubs and arms. The driver hit the gas pedal. None of us said much. We

didn’t play our favorite tunes. Just waited for the shrill silence to dissolve.

Once we left the outskirts of the city, Karachi, we left the home we had

built with half a decade of savings, yet the air felt more breathable again.

Ethnic violence between the Sindhi-speaking and Urdu-speaking popu-

lations had reached a crescendo. Families were stopped, commanded to

say words only Sindhis knew how to pronounce, and depending on

which side the other side was on, were harassed, mugged, and often

enough, shot on the spot. That year, the year I turned thirteen, we ended

up making a life for ourselves by my father’s village, Akri, in a town

named Badin. Some five hours away from the civilization I knew, Badin

allowed our parents a life they had been wanting to come back to—one

where, through their chosen profession, they could care for the sick and

helpless who have no place else to go. We children were home-schooled

and determined to prove to the world that we could and would go places.

I always liked intellectual exploration, but it was in the solitude of a life

with virtually no visitors to host or places to visit, no cliques to try to fit

into, and no norms to sport, that I fell in love with education for the sake

of exploration and illumination of the mind. With squealing chirps of

rodents as my backdrop and a gentle feeling of suffocation on warm

summer nights, I’d sit on my bed and imagine my fifty-year-old self giving

interviews, reflecting on a lifetime of achievements, a Nobel Peace Prize

winner one night, CEO of a conglomerate that brought the country to

prosperity another, while carefully name-dropping some of the world’s

best universities, usually Harvard, that I was supposed to have attended.

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Convergence 19

I graduated from Cornell with a major in human development; mar-

ried a wonderful, wise person who speaks Urdu and cannot pronounce

those words only Sindhis are supposed to say; took a job in consulting

and, in the wake of the dot-com bust, got laid off within nine months;

and then fast-tracked my career with a company I fell in love with,

Microsoft Corporation. Microsoft allowed me the freedoms to chart my

destiny and be rebellious with reason. Outside of my job as a product

manager, with strategic business management and P&L responsibilities

at age twenty-six, I headed up Microsoft’s women’s employee group, rep-

resenting over five thousand members and twelve thousand female em-

ployees around the world—and in the process fought for simple rights

that questioned age-old company policies that did us no good. I felt I

made a difference. That it mattered that I was there.

I traveled to the pits of Sindh and the brinks of Pakistan and Kashmir,

working for an education not-for-profit and a microfinance organization.

This was not part of my strategic life plan. No form of nonprofit was.

During my third week of Harvard Business School, I was forced to take a

medical leave of absence and rejoin the program almost ten months later.

Unemployed in the United States, between a work and student visa, and

eager to make something of the days handed to me, I took the first flight

to Pakistan so I could force myself into a corner to do something I would

never otherwise have done in my now interesting-on-paper life. I found

myself among half-naked children running on the streets, with glimmers

of rebellion in their eyes and dreams of doing something they will one

day be truly proud of. I visited my cousins in our village, whose eyes and

smiles reminded me of my four-year-old self, and that the life I was living

now was alien to me as a child. I saw my aunts and uncles, who didn’t

know what or who Harvard is or even how to spell that word, who had

likely never owned an independent thought or harbored any reason to

reason.

Crack of dawn. I was driving Mona, a dear friend, to Akri. No one out-

side my family—none of my friends, nor my husband—had ever visited

my family in Akri. She had flown in from the United Kingdom after a

brief conversation about whether she would join me in founding an

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20 PASSION AND PURPOSE

organization that would plug into communities around the world, give

them the option and ability to think for themselves, and create better al-

ternative realities. We stood in the heart of my village—in front of chil-

dren young and old. With glazed eyes in an inaccessible world, the older

ones looked through us. We met with the village elders. They com-

plained about lack of education. About the government. About the state

of the country and how we’re all heading toward disaster. They com-

plained, and my heart sank in my chest. I felt privately and acutely

embarrassed.

And then we met the little ones. Girls and boys five, six years old, in

their orange shalwar qameez and big, wide-open eyes. Some with their

hands on their mouths covering their giggling teeth. Others elbowing

their neighbors, pointing at us. I stood in front of them all, taking in the

distinct energy in the room. Mona threw a question to the room, “So, can

anyone tell me what you want to be when you grow up?” A little voice at

the back said out loud, “A heart surgeon.” Mona and I stared at each

other. Other voices joined. “A teacher—for the little children,” said a

little girl, fixing her head scarf. “A lawyer, like in the movies, to arbitrate

justice.” We found that for the little children, the realities of Akri and of

their destined life in this village had not yet set in enough to convince

them how unreasonable their dreams sounded. Images of young Bill

Gates flashed before my eyes—with big, round eyes, and too much en-

ergy for his slender little body to hold in, saying, “We will have a com-

puter on every desk!” Gates morphed into Sam Walton, who faded in and

out with Warren Buffett. “We will make a school for you here,” I blurted

out to little Atta, “so you become all that you said.” “Really?! Here?

When?!” he exclaimed back. And we never looked back.

Thedreamfly.org, the organization we founded that day, exists to bring

together communities in conflict to coinvest in each other’s success for a

better common future, one where drive for personal distinction, appreci-

ation of differences, and thoughtful, independent reasoning prevails. It

exists to create a human connection that’s inviolable by culture, religion,

and politics. We chose business and education, not charity or literacy, as

the means to achieve this goal.

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www.thedreamfly.org

Convergence 21

I was on one knee, looking at young Nazeem through the eye of my

SLR camera. We had gone for a stroll in the village and I wanted to cap-

ture the moment. “Remind me what you want to be when you grow up?”

He smiled at the camera, looking calm and confident; he must’ve grown

several inches since the last time I had seen him with Mona several

months ago. “Last time I wanted to be a pilot but I now want to be a sci-

entist.” I was moved. You, Nazeem, are why we’re doing what we’re doing,

I thought to myself, and looked to find my voice. “That’s fantastic! Do you

know what kind of a scientist?” Looking straight in my lens with his beau-

tiful smile that belied his words, Nazeem said, “Ones that know how to

make bombs. So I can bomb India.” And you are why we’re doing this.

August 2008. I had returned to HBS, completed my first year and

I was now standing on the ground inside the dreamfly school in Akri.

I could hear uncontrollable excitement and energy everywhere. Kids

were laughing, signing, playing, learning. My throat kept lumping up

with overwhelming emotions of excitement, astonishment, and grati-

tude. I stepped into Class One, Section Blue. The class seemed to be

having a discussion about whether kids should ask the teacher for per-

mission before they have to step out of the class. “If anyone can go at any

time, there will be no rules,” one said. “That’s a good point, but why do

we need rules?” asked the teacher. The class paused for a moment. And

my eyes immediately teared up. They weren’t just learning A-B-C’s and

1-2-3’s. They were . . . thinking. “Maybe to avoid chaos?” said another

student, “because sometimes when there are no rules, every man thinks

he’s the boss.” The class fell into a fit of laughter and applauded. I was

seeing the HBS case study method in action in Akri in Class One. We

weren’t imparting knowledge to our children, we were merely inviting

them to learn for themselves. As the class settled down for a bit, a hand

went up in the air: “Teacher, why did we all clap this time, when we

didn’t clap when Syed had the right answer earlier to your question?”

We are now looking to take dreamfly to Afghanistan. Adopting a for-

profit business model that can help us ensure that our efforts can be self-

sustainable and self-propelling, we want to establish an organization that

outlives its founders. We are using technology and social networking to

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22 PASSION AND PURPOSE

sew the seams between communities at war, giving each exposure to the

world outside the one they most comfortably fit in—connecting Pakistan

with Afghanistan with the United States, humans with humans, really,

regardless of where they live or stand.

Graduating from HBS, I didn’t explicitly consider going into the not-

for-profit sector. Neither was I thinking I was going into the for-profit

sector. The incredible freedoms that come with floating across and above

boxes—the boxes of business and social good, of cultures we must fit in,

of beliefs we must abide by—and the courage and power to look through

sacred norms, that’s what I care to build into myself and the world

around me.

I decided to come back to Microsoft Corporation, to a rebel organiza-

tion within the company that runs internal groups like external start-ups

unhindered by the large-company mentality and practices. We’re looking

to break a few rules, fall on our faces, pick ourselves up, learn, reason,

and march ahead. I take my dreamfly spirit to work and my work ambi-

tions to dreamfly. I take my ability to manage with near-zero resources to

my Microsoft start-ups and my business savvy to Afghanistan. And my

anxious energy to do more, my fervent desire to make an impact, my un-

systematic at-the-edge-on-the-border-of- boxes thinking to everything I do.

More and more, I feel, we must define ourselves by who we are, our

deeply personal naked self, and what we want to do, rather than by

which professional hole the peg fits best. And we must find our way to

our vision through our own crooked path, exposing possibilities we never

imagined might exist.

I don’t know where the fullness of my life will take me. If I will be-

come that CEO. If I will win any accolades. If I will die when I’m forty.

But I know I want to live a life that gives people reason to reason; to

pause and question the comfortable assumptions, to form and inform

beliefs, and never give up common sense for common opinion.

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Convergence 23

Learning from Kibera Nonprofit Lessons for Business from East Africa’s Largest Slum

RYE BARCOTT cofounded Carolina for Kibera in 2001. He graduated

from Harvard with an MBA and MPA, is a TED Fellow and a World

Economic Forum Young Global Leader, and works at Duke Energy.

His first book, It Happened on the Way to War: A Marine’s Path to

Peace, was published by Bloomsbury in April 2011. He is passionate

about participatory development.

“Vipi beshte?” I asked over Skype. Something was wrong. Cantar’s voice

was tense. “What’s up?”

“Si poa hapa. Hakuna panga iko Uchumi,” he replied from Kibera in

Swahili, referring to Kenya’s largest grocery store. “It’s not cool here.

There are no machetes left at Uchumi.”

It was January 2008, and Kenya had just held a disputed presidential

election.9 Kibera was an ethnic fault line, a slum in Nairobi, Kenya,

where more than three hundred thousand people resided in an area the

size of Central Park. In the next thirty days, more than ten thousand resi-

dents would be displaced, and the medical clinic a widowed nurse

named Tabitha Atieno Festo had founded with a $26 grant would treat

more than a thousand patients wounded by gunfire and pangas.

I was in my first year at Harvard Business School. It was Christmas

break, and I was preparing to return to Kibera to welcome a delegation

from the Bill & Melinda Gates Foundation to Carolina for Kibera (CFK),

the organization I founded in 2001 with Tabitha Festo and the community

organizer Salim Mohamed to build a better generation of African leaders.

“It might not be good to bring the Gates people,” Cantar, our sports

program officer, warned.

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24 PASSION AND PURPOSE

I did not want to cancel the trip. We had courted the Gates Foundation

for two years, and they were interested in how our model of participatory

development could be used to prevent violence and empower youth living

in abject poverty worldwide. However, Cantar and I had worked together

for over eight years. I trusted him. I had learned from him, and he had

learned from me. That was the key to participatory development, an ap-

proach that is rooted in the conviction that solutions to social problems

must be driven by the affected communities, not outsiders.

I cancelled the Gates Foundation visit. The following day Kibera’s

largest church was looted and set on fire, igniting weeks of vicious blood-

letting and ethnic cleansing.

I had decided to attend HBS to better understand business manage-

ment after having founded and helped lead CFK as a volunteer while

serving on active duty in the U.S. Marine Corps. CFK needed better

management practices, having grown from a start-up reaching two hun-

dred children in its inter-ethnic sports program to a fully integrated lead-

ership development program involving more than thirty-five thousand

residents. I arrived at Harvard thinking nonprofits had more to learn

from business than vice versa.

My business education has since suggested to me the learning can go

both ways.

I think there are three broad areas where business best practices can

greatly assist nonprofit organizations like CFK: cost-benefit analysis,

strategic planning, and accounting.

Nonprofit managers typically need to take into consideration factors

that cannot be easily quantified, such as community support. Neverthe-

less, cost-benefit analysis is a powerful way to think through trade-offs sys-

tematically. Over the past year CFK has implemented basic cost-benefit

analysis at a programmatic level. The results have been encouraging. Our

program officers have found that cost-benefit analysis is a tool that helps

surface healthy debates and keeps us grounded and focused on our core

mission, which is to help create a better, more ethically guided generation

of African leaders from an unlikely place—East Africa’s largest slum.

An excellent business education can also equip nonprofit managers

with useful tools for strategic planning. Many of my nonprofit colleagues

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 24

Convergence 25

think they need to hire expensive outside consulting firms to manage the

strategic planning process, and they fear that their organization will lose

operational flexibility and initiative once a plan is complete. I held simi-

lar viewpoints before I attended business school. I now see strategic

planning as a vital and dynamic process that should be prioritized in an

organization’s growth. Too often nonprofits such as CFK simply fall back

on the “founders’ stories” for guidance. Founders’ stories are important.

They are part of the culture of an organization, but they are not a strate-

gic plan. When effectively conducted and used, strategic plans help

organizations maximize their impact.

Finally, many nonprofit managers with whom I’ve worked have never

been formally educated in accounting and thus cannot properly supervise

their finance departments. Most of my classmates at HBS took only

one accounting course during their two years, a first-year course called

Financial Reporting and Control. That class taught the basics, and

although it was not a favorite class among my peers, it was among the

most important courses that I took. I entered business school without

the knowledge of how to prepare and read financial statements, and

these are skills that most, if not all, managers need.

Shortly after the postelection violence in Kenya threw the nation into

turmoil, the real estate bubble burst and the U.S. economy imploded.

It was a unique time to be at business school, especially a school like

Harvard, which had educated many of the CEOs whose firms destroyed

staggering amounts of value, and who came under the fiercest public

criticism for their failed leadership. It was in this context that I revised

my initial presumption that nonprofits had more to learn from business

than vice versa.

Nonprofit best practices can greatly assist business, and they merit

more examination at business schools. Specifically, there are at least two

broad areas where nonprofits may offer substantial insight for corporate

executives and entrepreneurs: values and stakeholder outreach.

The financial crisis occurred in part because American firms were

guided by poor values. CEOs sent the wrong messages when they incen-

tivized productivity primarily though financial bonuses. In any industry,

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 25

nonfinancial factors should be more powerful motivators for employee

retention. This is true even for employees who were primarily motivated

by financial gain when they first joined the business. Nonfinancial fac-

tors are cultural, and they include pride in the product delivered, the

strength of firm identity, unit cohesion, and the integrity of the organiza-

tion. Exceptional nonprofits have their values aligned with their missions

and rely on nonfinancial incentives to keep their employees and volun-

teers motivated. At CFK, for example, our teenage members must partic-

ipate in community clean-ups in order to compete in inter-ethnic soccer

tournaments, and winning teams receive soccer balls and uniforms, not

financial rewards.

Second, business should learn not to overemphasize shareholder value

at the expense of broader stakeholder outreach. Donors are the nonprofit

corollary of shareholders to business. Exceptional nonprofits ensure that

their donors are not prioritized over their other stakeholders. This can be

challenging, because many donors exert pressure on nonprofits to alter

their service delivery. For example, CFK once received an offer from a

foundation to build a vocational school for older women. The initiative

would have detracted from our mission and core competency of youth

empowerment. We turned it down. It was a difficult decision, because

the grant was large and would have provided a substantial contribution

to our overhead. Business executives also must make difficult decisions

to balance shareholder demands for profit maximization with their duties

to serve a broad base of stakeholders. Best practices in nonprofit man-

agement can assist businesses in better measuring and evaluating their

impact and contributions to all of their stakeholders.

I finally had a chance to return to Kibera during spring break in 2008.

Although I continued to volunteer much of my life to CFK, the violence

made me question what we were actually achieving. The most ravaged

parts of Kibera reminded me of Fallujah, Iraq, where I had served with

the Marines in 2005 and 2006. The buildings around our youth center

had been reduced to charred rubble. I became depressed looking at the

damage, and after a day I confided my feelings to my cofounder Salim

Mohamed, who was CFK’s executive director.

26 PASSION AND PURPOSE

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 26

“What are we really doing, man?” I asked Salim.

“Bro, even me, I have to ask myself the very same question,” Salim

replied. “But it’s the tough times when we have to push, and let me tell

you something that gives me hope. When things were really bad, the

community united.”

“What do you mean?”

“You know, thugs, they came here. They wanted to take our stuff and

burn our buildings. The community though, it stopped them. They pro-

tected this place. A group of mamas and youths faced those men with

their pangas. They risked their lives for this place.”

Salim’s words gave me peace of mind. We will never be able to mea-

sure the depth of community support for CFK displayed through the ac-

tions of an anonymous group of residents. Their actions were profound,

and I interpreted them as an indicator that we were doing the right

things for our most important stakeholder, our reason for existing—the

community.

As much as Harvard Business School made me a more effective non-

profit manager, my experiences in Kibera did much more to equip me

with the core values and skills that will keep me grounded as a leader as I

pursue a new stage of my career, building and growing companies in

North Carolina that exist to serve American communities.

I feel fortunate to have been able to work across the public, private,

and nonprofit sectors at a young age, and I aspire to continue to incorpo-

rate such a balance throughout my life. The solutions to our world’s

toughest problems, such as the growth of megaslums, require full en-

gagement and collaboration from each sector, and we have no time to

waste.

Convergence 27

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28 PASSION AND PURPOSE

Commerce and Culture Combining Business and the Arts

Originally from Lansing, Michigan, CHRISTINA WALLACE now lives in

New York City where she is the cofounder of Quincy, an early-stage

online women’s professional apparel company. She holds a BA in

mathematics and theater studies from Emory University and an

MBA from Harvard Business School. She has worked as a profes-

sional musician, actress, theater director, and arts administrator at

organizations including Theater Emory, Georgia Shakespeare, Ac-

tors Express, the Schwartz Center for Performing Arts, and the Met-

ropolitan Opera. Contact her through www.christinamwallace.com.

I arrived at the T stop in Central Square on a stiflingly hot day in August

2008 carrying a rucksack overflowing with dirty clothes and smelling like

a Latin American hostel. Although I had just endured the heat and hu-

midity of Nicaragua, there was something about the air in Boston that

day that felt heavy as I walked the mile from the station to the Harvard

Business School campus, white sand leaking through the seams of my

pack and dusting the pavement with each step. In just three days I would

start the Analytics Program at HBS, which would prepare us “nontradi-

tional” students to begin our MBAs in September.

I was certain I was about as “nontraditional” as they come. I had stud-

ied first as a classical pianist and cellist, then as a mathematician and ac-

tress, and I had a tattoo of a Fibonacci spiral on my right shoulder blade.

I was sure I wouldn’t fit in. But that didn’t matter. I was on a mission to

figure out what business had to offer the arts.

My life in the arts began early, when, at the age of five, I insisted I begin

piano lessons so I could be just like my big sister Stephanie. Music

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 28

www.christinamwallace.com

Convergence 29

quickly gained a prominent place in my life. After a decade of lessons,

master classes, competitions, and recitals, I decided to spend my last two

years of high school at Interlochen Arts Academy, a preconservatory arts

boarding school in northern Michigan. It was there that I realized I did

not want to make my career as a professional pianist. I loved music, and it

would always be a part of my life, but I longed for something different.

So I went to college instead of conservatory and spent four years div-

ing into number theory and discovering theater. I fell in love with Paul

Erdos, Richard Feynman, Richard Greenberg, and William Shakespeare;

with cryptography, directing, dramaturgy, and Mersenne prime numbers.

I toyed with a career in theater or a PhD in math, but knew neither was a

great fit. With experience in music and theater and a brain that delighted

in quantitative problems, the true match for me was arts management. It

combined my artistic passion with a love of planning, producing, strate-

gizing, and communicating. After internships with two theaters in

Atlanta and a one-year fellowship with the Schwartz Center for Performing

Arts at Emory University, I was hooked. I moved to New York to see what

it was like in the “big leagues.” On a whim I applied to a job at the Met-

ropolitan Opera and, unbelievably, I got an interview. I was speechless.

The Met isn’t in the big leagues; it’s in a league all its own.

In my interview for a rehearsal associate position with the Met, my

potential supervisor and her boss made me promise that I would not try

to change a thing in my first year. The fact that this request did not trig-

ger a flashing neon warning sign is a testament to how ingrained and per-

vasive that attitude is in many of our cultural organizations—and how

anxious I was to simply be part of such a legendary institution. Peter

Gelb, who had served for a decade as president of Sony Classical, had

just been named the new general manager of the Met. It seemed like the

dusty institution was poised for a renaissance. Surely 2006 would be an

exciting year for a young person to help revitalize one of the country’s

most important arts institutions.

The HR manager thought otherwise and did his best to scare me off.

He said the days would be long, the pay terrible, and the pressure un-

yielding. He said I would not be promoted until someone died or retired,

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30 PASSION AND PURPOSE

since people rarely left the company for any other reason and openings

were scarce given that the Met was long past its growth phase. I would

have the worst job in the house, he insisted, and be stuck there for a

while. I took it anyway. I was certain I could make a difference.

Yet on my first anniversary with the opera, leaving work frustrated by

my ineffectiveness for the fifth time that week, I wondered if this was

what a career in arts management really meant. I had completed my one-

year trial period and was excited to share my ideas to innovate and trans-

form the stodgy Rehearsal Department. There were processes that could

be streamlined and structures that could be created to systemize much

of the repetitive and error-riddled work streams. The department had

one central database with 90 percent of the information we needed to

access over the course of the day, yet we repopulated that data into

schedules by hand, increasing the likelihood of human error along the

way. We ran the same handful of reports every week by marking up docu-

ments with a highlighter and adding figures with pencil and paper, burn-

ing through hours behind a desk that could be better invested in face

time with the artists. We spent the bulk of our day in our “command

center” buried in a corner of the administrative wing while most of the

rehearsals were going on three floors below.

Yet when I approached my manager and the head of our department

with ideas to improve our processes, my proposals were deflected one by

one: there was a certain way that things were done here. I just didn’t un-

derstand the customs yet. Making suggestions, it was pointed out, was

not in my job description.

This culture seemed at odds with the strides Gelb was making at the

helm of the Met. In his first year as general manager he had focused on

reinvigorating the repertoire with new theatrical productions, reconnecting

with the public through a provocative outreach plan, and establishing an

innovative new-media strategy that ultimately set the bar for all other arts

organizations. His sharp business acumen was unquestionably foreign to

the velvet-cloaked halls of the Metropolitan Opera. The speed with which

he enacted his ideas felt like Mach 5 in a company that was still using type-

writers in many departments through the end of the twentieth century.

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Convergence 31

Just two months after officially taking the reins in 2006, he opened

the theater to the public in an unprecedented event by holding a free

open house for the dress rehearsal of Anthony Minghella’s production of

Madama Butterfly. Partnering with a longtime board member, he

launched a rush ticket program with $20 orchestra seats available two

hours before curtain for most performances. To celebrate the season’s

opening night in September, Gelb simulcast the performance both

on the Web and on the big screens in Times Square. Days later he

announced a dedicated Met channel on Sirius satellite radio, and

by Christmas the Met was broadcasting a live performance of

Julie Taymor’s The Magic Flute in high-definition video to movie

theaters around the world.

It seemed so easy for innovation to blossom at the top of this promi-

nent institution, but from where I sat, I felt like I didn’t have a voice to

contribute to the momentum. Gelb’s passion from atop was translating

into an external revitalization, but it wasn’t affecting the internal culture

one whit. And I wasn’t the only one whose passion was dwindling. The

few Met employees under the age of forty were growing frustrated and

leaving in rapid succession. Moreover, this wasn’t just affecting the Met;

my colleagues in comparable roles at other cultural institutions were

feeling similarly disillusioned. An entire generation of passionate non-

profit kids was transitioning out because they felt they had so much to

offer, yet no one was willing or able to harness their zeal. Surely there

was something I could do about it. There had to be.

I briefly considered master’s programs in arts management but quickly

realized it wasn’t the “arts” I needed to learn—it was the “management.”

I wanted to learn the best practices of companies that are ultimately

responsible for a bottom line. So I applied to business school.

My subsequent experiences in business have confirmed my belief that

private sector frameworks, tools, and best practices can fundamentally

contribute to the social sector, even the performing arts. In my HBS class

on managing high-performing nonprofits, we read a case study on the

Edna McConnell Clark Foundation. This innovative foundation offers

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 31

grants to support organizational development, insisting that nonprofits

prioritize structural health alongside program expansion. In general the

philanthropic capital markets still penalize nonprofits for significant over-

head costs, but it is heartening to see one leading foundation acknowl-

edge that overhead is essential to the development of controls, processes,

and human capital. Overhead like employee training and mentoring is

what allows nonprofits to create a pipeline of leadership and establish

succession plans. Clearly defined processes and well-developed controls

strengthen organizations, providing employees with necessary resources

and setting them up for success in achieving their mission.

I’ve also been inspired to learn about the significant growth in the for-

profit social enterprise space. Cochairing the 2010 Harvard Social Enter-

prise Conference exposed me to companies that are eradicating diseases,

increasing access to financial services, and supporting at-risk youth with

more success than their nonprofit counterparts. In many cases the profit

motive can support a social agenda by encouraging innovative business

models wherein the people controlling the cash flow (usually by buying a

good or service) are the same constituents receiving the benefits of that

enterprise. This stakeholder alignment translates into a more sustainable

funding model than exclusive reliance on government or foundation sup-

port, replacing a charitable relationship with a customer relationship.

To be clear: social enterprise is not about balancing the double bottom

lines of social impact and profit as though they are equally important.

Profit, in these sectors, is ultimately a means to achieve social impact,

not the end itself. But it is a mechanism to encourage growth, innova-

tion, and evolution.

On an even more basic level, however, I learned that businesses re-

ally do aim to create value. In the traditional sense, they create value

for their owners or shareholders. But they can do so only by encourag-

ing the types of ingenuity and entrepreneurship that impact the

broader world. Translating and adapting business frameworks and best

practices for the social sector means leveraging these resources to cre-

ate value for society. From this perspective it becomes absolutely nec-

essary for leaders in the social sector to utilize business tools, not only

32 PASSION AND PURPOSE

107124 01 011-054 r2 vs 9/19/11 8:17 PM Page 32

to create innovative enterprises but also to scale high-potential organi-

zations to maximize social impact.

Over my two years at HBS I learned that there isn’t simply a place for

businesspeople in our cultural institutions; there is a desperate need for

them. The integration may be difficult since there is currently little dia-

logue across the nonprofit/for-profit divide, but it is in our best interests

to foster such collaboration.

Peter Gelb began that collaboration when he brought to the Met the

marketing and media savvy he developed while at Sony Classical. There

is no doubt that the “new Met” has been wholly transformed from the

audience’s perspective. But there is more that can be done internally.

The cultivation of human capital should be one of the company’s priori-

ties, by mentoring and coaching employees to think beyond their job

description and understand more than just their corner of the company.

And the Met is not alone.

Moreover, in an organization that spends about 75 percent of its oper-

ating budget on payroll, the Met must consider how sophisticated plan-

ning techniques and other applications of technology could transform

their costs. Adapting tools and analysis from the business world could im-

prove the coordination and utilization of their large union groups and help

reduce the need for expensive overtime. With seventeen unions and a

century of data to analyze, the impact of such tools could be substantial.

It seems like an eternity since I plodded that first time from the sub-

way in Cambridge to my new home at HBS, but my experiences have led

me to believe ever more firmly that business is how I can help build and

sustain the vitality and accessibility of arts institutions in a world that

needs them more than ever.

Convergence 33

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34 PASSION AND PURPOSE

Iraq, Afghanistan, and the Business of Peace

JAKE CUSACK is a former Marine Corps officer who served in Iraq

as a sniper platoon commander and intelligence officer from 2005

to 2008. He will graduate with a joint degree from the Harvard

Business School and Harvard Kennedy School in 2012, and has

written extensively about entrepreneurship and economic growth

in Afghanistan. He is passionate about economic development in

conflict zones.

My idea of war in Mesopotamia was so steeped in mythology that I felt

the laws of gravity might be upended when I landed as a marine in Al

Taqaddum, Iraq, on Christmas Day 2005. I thought I was being trans-

ported into a world of legend, populated with heroes and filled with

pageantry amid chaos. But I soon learned the difference between my

abstractions and reality.

I found the same laws of physics that applied to me growing up in

Michigan applied in Fallujah. There was no particular romance or mys-

tery as to how battles were won or why people died. Small projectiles

ripped into skin in combat the same way twisted metal cut through flesh

in a highway car accident. Fighting the insurgency was blue-collar work,

sweat and tedium under a hot sun. Hours of patrols, census-taking, and

conversations with local elders over warm tea were punctuated by the

briefest moments of extreme violence.

I was woefully clumsy navigating a war so unlike the one I had imagined.

Two months into my first deployment, I remember standing with another

Marine lieutenant on a rooftop in a city of over twenty thousand Iraqis.

Both in our early twenties, we were the senior officers present, working

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Convergence 35

for the security and welfare of the city. We discussed the current prob-

lems: complaints from the city council, closed markets, illicit trades, the

virulent imam, unreliable electricity, and undrinkable water. I realized

that while I knew how to employ a machine gun or call in air support,

I was completely unprepared for the full spectrum of modern conflict.

Economic factors were fundamental to the surprisingly base logic un-

dergirding the war. Profit—not just nationalism, religious fervor, or need

for honor in battle—motivates behavior under even the most anarchic of

circumstances. In Al Qaim, a dusty Iraqi town on the Syrian border, a

local tribe became one of the first to turn against Al Qaeda in 2005. The

tribe was driven neither by patriotism nor by fear of an extremist Islamic

state, but by its desire to regain control of lucrative cross-border smug-

gling routes.

On another hot summer day two years later, I sat in a meeting of se-

nior Iraqi leadership discussing problems in the Ninewah province. Little

of our conversation actually stemmed from typical security or military is-

sues. Instead, the topics were the price of refined and unrefined oil; in-

frastructure at the points of entry; taxation schemes; the relative health

of agricultural commodities. I was the only one present who wanted to

talk about foreign fighters or illicit weapons smuggling. Everyone else

was concerned with business.

In the peak of the insurgency, senior military leadership advocated a

“carrot and stick” approach to bringing the populace to our side. But ini-

tially, our sticks were frail and our carrots were stale. We found we could

never win an intimidation battle with the insurgents: if Iraqis gave infor-

mation to us, Al Qaeda would come in the night and kill their families;

if Iraqis passively cooperated with Al Qaeda, we might be able to detain

them for two weeks. Too often, our enticements were equally weak: to an

unemployed Iraqi, pencils and soccer balls for schoolchildren or a few

meal packages tossed from a Humvee seemed at best platitudinous and

at worst insulting.

We eventually realized that robust funding and effort at the lowest lev-

els could show a road to a more tolerable future—one with electricity,

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36 PASSION AND PURPOSE

jobs, and education—than the lawless bloodletting that Al Qaeda’s Is-

lamic State of Iraq offered in the territory it controlled. Although the

endless raids and captures of insurgents were important, I saw subtle po-

litical and economic shifts rapidly yield more significant results. The in-

famous Sunni “awakening” that turned Al Anbar province against Al

Qaeda went beyond local leaders finally banding against foreign fanat-

ics—it was also a jobs program, pumping millions of U.S. dollars into the

hands of military-aged males who had formerly been our foes.10

In 2009, I returned to academic study with a desire to gain new perspec-

tives on the interaction of business, governance, and security at the

edges of chaos. After subsequently finishing the first year of the joint

MPP/MBA program, I spent the summer in Afghanistan. A fellow stu-

dent, Erik Malmstrom, and I hoped to explore private sector growth and

constraints in the country from the perspective of the indigenous busi-

nesses. We worked to find Afghans who had stayed clear of the easy

short-term money suckled from international forces and instead

launched more sustainable ventures in industries like carpets, dried fruit

exports, and light manufacturing.

Landing in a war zone as an independent researcher was a jarring

departure from my time as a marine. At first, I felt almost naked without

a bit of body armor or the camaraderie of fellow armed men. In tense sit-

uations, my hand moved unconsciously to my right hip, grasping for the

9-mm Beretta that was no longer there.

But I soon felt far more comfortable wearing local dress than I ever

did with Oakleys and fatigues. I relished spending hours in conversation

with locals in their homes without having to mentally count down the

time it would take for the insurgents to set an ambush or lay an IED out-

side. I even enjoyed it when Afghans refused to speak to me—a leveling

of roles that had not generally been possible when I showed up for meet-

ings carrying a semiautomatic weapon.

Time spent with businesses was also more uplifting than my old pur-

suits hunting “high-value targets.” Although the summer of 2010 was a

tumultuous time—the relief of General Stanley McChrystal, rampant

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Convergence 37

intelligence leaks, and a growing chorus labeling “failure”—I left more

optimistic than I had ever felt about a conflict zone. The reminders of

war were still there: the owner of a flour mill in a large city near the Ira-

nian border answered a question about his company’s growth by dividing

it into “before and after I was kidnapped” (he escaped and moved to

Kazakhstan for a year, shutting down a portion of the business). But good

businessmen are by nature optimistic about the future—their money is

tied up in it, after all—and their entrepreneurial enthusiasm and willing-

ness to invest was contagious.

Even in Kandahar, where the local Pashtun tribesmen who accompa-

nied me to meetings carried Glock pistols under their long dress—not

just for my protection, but for theirs—I found enterprises still growing.

The risk, substantial of course, could be overrated. The chairman of

Afghanistan’s first insurance company explained to me how they had

gradually been able to lower the annual property premiums they passed

on from Lloyd’s of London from 12 percent to around 1 percent. Though

the governance and regulatory framework could be massively unpre-

dictable, outsiders generally overestimated the actual physical threat to

normal business.

As in combat, the test of a chaotic environment revealed character.

Some businessmen were entrepreneurial in the worst sense, staging at-

tacks to drum up business for their security company or monopolizing

control of scarce resources for personal power. But this made the forti-

tude of others all the more impressive: a television station refusing to

bias its news coverage despite relentless political pressure; a clothing

manufacturer employing hundreds of women; a custom-made carpet

manufacturer providing jobs to thousands of rural families; a supplier

forgoing a contract rather than paying a bribe.

After six years in and out of conflict zones, I have learned that people can

continue to respond to economic incentives in rational ways, even in the

most dangerous of circumstances. Outside forces conducting ambitious

interventions desperately require private sector expertise in order to

reconstruct failed states. Nascent local government leaders need to

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38 PASSION AND PURPOSE

remember that businesses—their success staked to overall stability—can

be an invaluable support.

An infusion of private sector talent could benefit our national security

apparatus. Specifically, I can offer a few examples of what government

might learn from a private sector mind-set:

• Focus on ensuring predictability and stability to enable economic

growth. Contrary to expectations, neither physical security nor cor-

ruption is the primary constraint on business in Afghanistan. In-

stead, over and over again, entrepreneurs complained about the

overall uncertainty of the business environment. Tax structure, cus-

tom tariffs, local power brokers, American force posture, financing,

government officials—all were in constant flux. Just like in Western

markets, uncertainty is even worse than a large but specific down-

side. When given a specific threat, business can adapt or hedge by

shifting operations, becoming more liquid, or paying bribes (a form

of tax). As one of the most adept businessmen told me: “The prob-

lem is not the variables themselves, but the variability of the vari-

ables.” International forces can help mitigate such uncertainty by

making public long-term policy commitments, providing advance

purchase financing, and incorporating private sector considerations

into even low-level military planning.

• Be willing to make long-term investments. Ironically, I found the

American government—which should be looking toward long-term,

regional implications—to be absurdly short-term in orientation.

Quarterly reporting deadlines and year-long deployments lead to a

culture where everyone is looking for the fix that will pay off on

their watch. This in turn makes the businessmen focused on the

quick dollar (often from trading), when they otherwise would be

willing to make three- or five-year investment (in fixed-capital pro-

duction facilities).

• Allow reasonable profits. Despite working on behalf of a country

that was built on capitalism, some in the State Department and

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Convergence 39

USAID (U.S. Agency for International Development) seem funda-

mentally uncomfortable with the idea that a good business will

enrich its owners. They sometimes seem to perceive profit as ille-

gitimate and immoral, and feel that the best small business projects

should verge on socialism. This has created a culture where

Afghans applying for a grant hide the “profit” part of their business

plan because they think the donors will not support an enterprise

that may reward the owners. Interestingly, the reverse is true for

contracting in the security, transportation, and construction sec-

tors, where international forces turn a blind eye to blatant rent-

seeking and windfall returns.

• Abandon failing projects. Unlike a business, which will cut its losses

and move on, each layer of a traditional development project has no

incentives to acknowledge failure. Elegant reports with glossy pic-

tures substitute for real performance. Donor, implementer, and

beneficiary often maintain the facade of obviously flawed projects

because evaluation is based on money spent—“burn rates”—and

vague social metrics.

From the other perspective, Western business can find it both finan-

cially and socially rewarding to be a partner in the rebuilding of a sus-

tainable economy amid conflict. There are lessons the private sector

might find useful for doing business in chaotic countries:

• Do not make risk assessments from media reports. Western compa-

nies often significantly overestimate the physical security risk and

avoid even safe areas of Afghanistan. At this very moment, Turkish,

Chinese, Lebanese, and other investors are seizing business oppor-

tunities because they are more realistic in their assessments. If

Westerners travel and act in a low-profile manner, some areas of

Afghanistan seem safer than some American urban centers.

• Vertically integrate and replicate missing government functions

internally. In the absence of contract sanctity, the best way to know

the transport trucks for your goods will always show up is to own the

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40 PASSION AND PURPOSE

trucks. Bereft of government protection, industrialists are forced to

replace government functions with their own. Effectively, they de-

velop internal police forces (Ministry of Interior), external protec-

tion (Ministry of Defense), independent communications, electric

and water infrastructure, and so on. This actually can be a sustain-

able business model, so long as the profits are sufficiently strong.

• Ensure security by working with the community. The largest company

in Afghanistan, Roshan Telecom, used to hire outside security con-

tractors to protect its numerous cell towers. Faced with rising costs,

they switched to a model where they paid local villagers to guard

the towers, and offered incentive benefits for the community. The

new “socially responsible” initiative resulted in lower costs and im-

proved security.

• Be proactive in finding entrepreneurs and investing in local human

capital. In a conflict climate, the men who show up at your

doorstep asking for investment money often cannot be trusted, as

they are often locals who have become expert at gaming a donor

system. It is better to identify the sector you are interested in, then

go scour the countryside for the entrepreneur already making

progress in that area. Once you find a good one, keep investing—

human talent is the hardest to find and the most irreplaceable fac-

tor. Those who rely too much on outside consultants discover that

as security worsens, the outsiders leave and will not return except

for exorbitant fees.

I find my classmates at Harvard, with significant business expertise,

unaware of how much their skills can help in our current global struggle

with terrorism and our efforts to rebuild failed states. The tools of na-

tional security are far more diverse than those of the military or even de-

velopment aid. The capacity to build a secure world will not be found

only in West Point or unleashed from afar by unmanned technologies.

Now, more than ever, the call for service in national security can be an-

swered by everyone.

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Convergence 41

Business in the World How Corporations Can Be Change Agents

KELLI WOLF MOLES worked in investment banking at JPMorgan in

New York before graduating from Harvard Business School with the

class of 2011. Kelli is founder and CEO of Project Spark, a nonprofit

that promotes sustainable philanthropy and organizes volunteer

trips. Kelli is passionate about helping businesses give employees

greater purpose through public service.

In 2006, my husband and I took our honeymoon in Africa. We went on a

safari, and then spent two weeks volunteering at an orphanage in

Uganda. Nine months after our trip, while working in investment bank-

ing at JPMorgan, I began to feel ill. For two weeks, I refused to take time

off from work, trying a few outpatient visits to remedy my flulike symp-

toms. Finally, I went to the emergency room. With a team of ten to fif-

teen doctors surrounding my bed, I was diagnosed with an advanced

form of malaria. This deadly disease had lain dormant in my body since

our return. My tests showed a life-threateningly low white blood cell

count, and the doctors determined that my spleen had ruptured and was

pouring toxic blood throughout my body.

In my darkest hours, I found myself drawing on my faith. I had to be-

lieve that something positive would come from this, and looking back,

this experience changed my perspective forever. My brush with death re-

minded me that life is short. I realized I want to change lives and influ-

ence people more than I want power or wealth. Wall Street is an exciting

and challenging place to work, but making a positive impact on communi-

ties and individuals is equally important for bringing meaning to my life.

Soon after I recovered, I began raising funds and awareness for

malaria prevention. After raising $5,000 for malaria nets in 2007, I was

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42 PASSION AND PURPOSE

asked to host a booth at JPMorgan’s volunteer fair and speak on a panel

about my project. I quickly realized how many of my colleagues also ap-

preciated the fact that life should not be taken for granted and were in-

terested in leveraging business to change the world.

Business and its leaders play a powerful role in shaping society. This

has always been a core belief of mine, and it is the reason that I chose a

career in business. In my travel to more than forty countries, I have seen

firsthand that businesses and corporations are often more powerful than

governments. Whether you believe that business is only for profit maxi-

mization, or that it has a broader role, it is undoubtedly a force producing

many effects—both positive and negative—in the world.

After talking with my colleagues and friends, we organized a group we

called Project Poverty to serve two goals: (1) to raise money for sustain-

able development projects and (2) to organize trips to developing coun-

tries to see the work firsthand. In the first year our team planned six

events, from a three-on-three basketball tournament to a cocktail hour.

JPMorgan supported our work in many ways—from featuring us as a

“Project of the Month” to matching donations to helping with publicity

of our events. It was great to see the positive results when competitive

businesspeople unite toward a common goal. The friendships and cama-

raderie we developed through Project Poverty stuck with us as we

worked through challenging client situations.

After the success of our fund-raising, we wanted to take Project

Poverty further. We suspected the investment of “sweat equity” into the

clinic’s construction would help us all connect with our cause. My first

visit to Africa had changed my life, and I knew the same would happen

to my colleagues. In September of 2008, thirteen professionals, includ-

ing five coworkers from JPMorgan, traveled with me to Ghana. We spent

five days carrying stones and mixing cement by hand to build a health

clinic.

Since that time, Project Poverty has brought forty-five people to devel-

oping countries and raised over $100,000. Of the people who have gone

on Project Poverty trips, all have found their lives impacted in very differ-

ent ways. Many of us learned about ourselves and the world during our

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Convergence 43

time abroad, and brought the insights and stories back to our jobs and

clients. Managers today have to understand the diverse, interconnected

world we live in while still paying respect to national pride and cultural

sensitivities. More than ever before, we will be managing global teams

with people very different from ourselves. Understanding and appreciat-

ing other cultures and people more deeply makes it easier to work

together.

Soon after that trip, I also got involved in a program called Bankers

Without Borders and served as one of the inaugural volunteers. This is a

program set up by the Nobel Prize–winning Grameen Foundation to uti-

lize private sector resources to make a difference by helping the poorest

of the poor. JPMorgan gave me time off and sent me to Africa to serve as

a project leader for a technology pilot at a microfinance institution.

Using banking skills halfway around the world was an interesting learn-

ing experience. I learned as much as I helped, and came back with new

ideas and a greater appreciation for banking in emerging markets.

I believe this tendency among large corporations and professional

firms to devote more resources to giving their employees life-changing

experiences in the public and nonprofit sectors is both growing and in-

credibly valuable to the firms themselves. The company I am now work-

ing with, McKinsey & Company, offers opportunities for interested

professionals to take sabbaticals, and through various secondments

and externships, consultants are able to take time off to pursue their

passions.

To keep a dynamic workforce, these options are important. These

types of programs truly set employers apart. They attract talent, motivate

employees, and transform workforces. Not only do they show commit-

ment to employees and provide meaningful and valuable options, but

they also demonstrate cutting-edge thinking, a willingness to try new

things, and flexibility. All of these options then equip employees to

become more thoughtful, engaged leaders.

In my experience with Project Poverty, Bankers Without Borders, and

McKinsey, I’ve noticed a few patterns in the way managers and organiza-

tions have successfully imagined and executed these public service

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44 PASSION AND PURPOSE

programs. A few of the key elements each program seems to contain are

partnership with first-class organizations, easy and accessible options for

involvement, senior leadership support, publicity of events and impact,

and inclusion in a formal review process:

• Partnering with first-class organizations allows companies to do what

they do best, while lending talent to nonprofits that are best in class

at fulfilling their mission. Bankers Without Borders allows the

Grameen Foundation to join forces with those working in tradi-

tional banking areas. Many of these public service organizations

have formalized programs that limit the administrative burden for

companies building new programs. These organizations often have

successful models that can be leveraged for everything from select-

ing volunteers to choosing projects. Partnering with these top

organizations also provides employees the best opportunities to

learn and to develop new skills to bring back to the workplace.

• Easy and accessible opportunities for employee involvement are also

key. It is a big commitment to take time away from personal obliga-

tions and an already busy workload to participate in volunteer activ-

ities. The volunteer fair my company held over lunch enabled me to

recruit employees interested in getting involved with Project

Poverty. Providing opportunities such as volunteer fairs, lecture

series, benefit happy hours, and companywide service days allows

employees to find out more and consider further involvement. We

found that shorter events over lunch or breakfast encouraged em-

ployees to stop by without making a large upfront time commit-

ment. This also broadens the reach of the programs and allows

greater awareness and participation.

• As with any major corporate initiative, senior leadership must buy in

and be personally committed to ensuring the success of the pro-

grams. Senior leaders who are excited about the public service pro-

grams spark enthusiasm from employees. Executives must be

flexible and willing to support employees’ involvement. Senior

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Convergence 45

involvement helps to work through any problems with the initial

implementation of the program and ensures it is institutionalized

for years to come.

• Publicity of events and impact is crucial to communicating the suc-

cess and importance of the work with a broader audience. When

Project Poverty was selected as Project of the Month, we were fea-

tured in the company newsletter and on the website. A short video

and pictures were included to show firsthand the work being done.

This kind of publicity provides a platform to share the impact not

only with employees but also with customers and clients. With the

rise of social media, there are many low-cost ways companies can

showcase the work being done and garner further support for

future initiatives.

• Last, inclusion of the employee’s involvement in the formal review

process also helps to build a successful program and a company cul-

ture that promotes participation in volunteer opportunities. This is

usually done as a “back page”—additional information to accom-

pany the core performance review. It showcases employee leader-

ship and involvement in company programs outside of the basic

day-to-day activities. It shows a true commitment on the part of the

company to encourage employee participation. It also provides ad-

ditional incentives for those considering whether or not they will

have the time and the ability to volunteer in addition to their cur-

rent jobs.

Corporations are vast and often untapped resources for sustainable solu-

tions to the world’s greatest social and economic ills. I have learned this

lesson firsthand through my fund-raising work and my current role in

management consulting. Companies that support and empower employ-

ees to take on challenges they care about will win in the long term. We

will bring our experiences out in the world back to our jobs, while devel-

oping loyalty to the companies that are determined not just to make

money, but to leave a positive footprint along the way. As I learned

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46 PASSION AND PURPOSE

through my brush with death—life is short. Each day should be trea-

sured and our talents used to their highest purpose. Imagine the impact

of more companies lending top talent to good causes. Through partner-

ships and public service programs, we have the opportunity to leverage

business to play a positive role in society.

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Convergence 47

INTERVIEW WITH . . .

David Gergen Adviser to four presidents, Director of Harvard’s Center for Political Leadership, and Senior Political Analyst for CNN

David Gergen discusses a new, cross-sector generation and what

the increasing convergence of the public, private, and nonprofit

sectors will mean for the world.

David, over the course of your career, you have interacted with a lot of influential leaders—of previous generations and of the current generation. What do you see as some of the primary differences or similarities between those groups?

There are some similarities. The leaders of past generations whom I

have known led incredibly demanding lives. They had to put in long

hours, often at the expense of their families, and they had to dig deep

into complex questions—often not knowing what the answers would

be. Complexity is not new. It comes back to us in different forms, but

it’s not new for leaders. Another thing that hasn’t changed is that lead-

ers have always had to have a set of values and to be deeply rooted in

values. The context has changed but the importance of integrity,

courage, and fair play has not changed—over time or across countries.

But there are also notable changes in the context of leadership today

that place fresh demands on young leaders who are emerging from

business schools and other institutions of higher learning. For one, the

pace of change has quickened dramatically in recent years so that

young leaders today have to be much more adaptable than leaders of

my generation. It’s unimaginable now that if we were faced with a mis-

sile crisis coming out of Cuba—or today, in Iran—that any president

would have thirteen days to resolve it. Modern technology and other

changes demand that you act much more quickly. And a modern presi-

dent wouldn’t be able to maintain the privacy that Kennedy had.

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48 PASSION AND PURPOSE

Henry Adams famously wrote in his memoirs that the nineteenth

century was when things really began to speed up. Prior to that, what

the father did was what the son tended to do, and what the grandson

tended to do. But in the nineteenth century, things started moving more

rapidly, and now in the twenty-first century, we’ve reached warp speed.

You have to have much broader, wider bandwidth to deal with it.

In my generation, you tried to be an expert in a field. You might,

for example, be an international relations specialist focused on Sub-

Saharan Africa.

Today, you must know not only international politics but also inter-

national economics, health care delivery, issues related to education,

and so on. Knowledge has spilled out of individual fields and there’s

much more need for knowledge across fields. Universities today are

developing more and more interdisciplinary studies. Someone com-

ing out of businesses is expected to understand the government and

the civic sector. And inevitably, people are finding their careers span

sectors far more than they did in the past. Now there is a real pre-

mium on an education that allows you to build foundations across

sectors.

This is not to say that an individual doesn’t need some specialized

knowledge. I still think it pays rich dividends for a leader to have at

least one or two areas in which he or she has made a deep dive. To be

a generalist who skims across things on the Internet or depends on

another person’s knowledge is insufficient in today’s world. You can’t

simply rely upon the competence, knowledge, or backgrounds of

those who work with you or report to you. As you rise to leadership,

the decisions that come to you are always very close calls. They’re

often 51/49 and you find that your advisors are divided about them.

Somebody has to make the ultimate decision. And that requires a

person who has training or at least a capacity for judgment that goes

beyond “front porch” understanding. George W. Bush, for example,

was a man of integrity but often had divided advisors and had to

make decisions on his own about things he hadn’t really had the

chance to study deeply.

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Convergence 49

So you’re driving toward a point here about the increased bandwidth that a lot of young leaders need to have, both because of the pace of change and because there’s so much interaction now between the different sectors?

I think that’s right. They’re all in partnership now: the civic sector, the

private sector—you know, companies today operate internationally and

have to be worried about issues of sustainability, and inevitably that

brings them into close contact with NGOs. And then the web of

regulations—government regulations and government engagement—is

growing. Companies have a lot of international bodies to deal with and

an increasing number of financial rules and regulations that impact

them. You can’t operate a modern environment as a corporate leader

without having a very clear appreciation of that. A lot of leadership

studies talk about leadership as a matter of concentric circles. The

inner circle is the individual; the first circle out is the people in that

leader’s organization or the team. Most of our earlier studies focused

on those two circles. Now we concentrate on a third circle as well, and

that is working outside your team, with leaders of other teams, and

with other organizations. You increasingly have to learn how to align

yourself with others in order to tackle the major problems.

It seems like you’re driving toward different skills younger leaders will need in a cross-functional world. Do you think there are a lot of skills that are transferable between these sectors?

There are definitely some skills that are transferable. For example, a

capacity to work with and to lead through the Internet is transferable.

You see that with social media in Egypt. It’s also extremely important

for politicians running for office, as we learned with Barack Obama.

And social media has become important for corporations to under-

stand as an offensive and defensive tool. Corporations are ill-designed

to defend against online attacks. They are in the situation that if they

make one mistake or they leave themselves vulnerable, then suddenly

a mass movement can be organized against them on the Internet.

They’re scrambling to figure it out. But corporations are also

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50 PASSION AND PURPOSE

scrambling to figure out how they can use the Internet offensively.

Starbucks, for example, has developed a network of people online who

have come to appreciate its special culture. Other companies in the

apparel industry use the Internet to have interactions on questions on

fashion. There are a lot of imaginative uses that could cross the sector

boundaries we’ve been talking about.

You’re kind of driving to some of the differences between sectors, too. Are there things that you think the sectors can learn from one another? We’ve seen deficiencies in each sector in its own way over the past decade or so. And I think that young people are acutely aware of that, particularly in business. Are there key lessons to learn?

You have to learn across sectors. For example, the pioneers who are re-

ally challenging the status quo in public education are rarely public

employees. They tend to be coming out of the civic sector. And cer-

tainly government has a great deal to learn from business about effi-

ciency, technology, and setting concrete goals and achieving them.

Think of health care in the United States. We pay twice as much as

any other mature economy and get less for it. There’s a widespread

feeling now that the health care industry has to learn from the compe-

tition that exists in the business sector. And that people who come out

of business schools can make excellent hospital administrators and di-

rectors. They might also make very good school administrators. Look

at the number of cities now looking to MBA graduates and lawyers to

help run public schools.

Are there examples where you think leaders in the public sector or the nonprofit sector could make a big and positive change in business the same way you’re highlighting the ways in which businesspeople might be able to come into sectors like health care and education?

The transfer is not as easy as it looks. I can’t remember a senator

becoming a CEO in recent years. There are some things that don’t

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Convergence 51

transfer there. But yes, I do think that business can learn a great deal

from some aspects of work in government or nonprofit. A CEO in a

field like health care may, from years in a NGO, understand what a

patient may need or what a society may need and from there, figure

out how to make money doing it. I was just talking with Coca-Cola

two weeks ago and had dinner with their advisory board and sat with

the chairman of the company. Coca-Cola is now deeply engaged in

sustainability projects in which they make money. They’ve got whole

areas where they’re working with farmers and developing new ways to

produce things—their bottling, for example—and they’re finding that

these are profitable enterprises. It goes to the heart of what Michael

Porter argues—that a growing number of companies are finding ways

to solve societal problems and make money at the same time.

Renewable energy is potentially one of those areas. In that case,

many of the people solving the energy problems are coming from uni-

versities, coming with ideas just as they did with the Internet. A lot of

those ideas came out of government. As you know, the Defense De-

partment was the originator of the Internet. And that created a whole

industry. And now there are areas where energy research is going on,

sponsored by government in major universities like MIT. Twenty per-

cent of the allied key faculty at MIT now work in energy research.

There are also private companies that are in the renewable energy

field that have great promise.

Can I ask a question from the young business leaders’ perspective? You’re talking about all the ways in which companies are beginning to interact more fruitfully and more consistently with the different sectors . . .

This is not entirely new. If you look at where the real growth areas

have been, they have often been clustered around major research uni-

versities, whether in Silicon Valley, Austin, the Research Triangle, or

the Harvard-MIT area. They all have this synergy that occurs among

knowledge workers who cut across sectors.

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52 PASSION AND PURPOSE

If you were a young businessperson now, but you did have some kind of passion for the other sectors, how would you get involved? Through universities? Through internships? Is it through their extracurricular activities? Or through sustainability programs within companies? Are there ways you see young people, especially in business, beginning to get involved in those sectors outside of business—in the public or nonprofit sectors where they can make an impact?

I think it begins in the university days. You open yourself to trying to

understand not just one field but to develop secondary interests in

other fields. I do think it’s important to exit your formal education with

an area in which you’re strong and you’ve really gone deeper. But I

think in today’s world, it pays to have a secondary field or even a third

field that may or may not be related. You may find somebody who

majors in physics but also has an interest in the arts. She can suddenly

start making connections across them that may seem unlikely at first

but may actually turn out to be more helpful than they look. I think of

our friend Sidney Harman, who passed away in his nineties. Sidney

was a renaissance man who believed that CEOs probably ought to hire

poets because they think outside the box. I think that someone who

comes into the business who graduated in the arts and then goes on to

business school has got a very strong background. If you have time and

are inclined, it’s good to get a double major or joint graduate degree far

more than it was when I came through. I went to law school and if I

were coming through now, I would probably get a law or business de-

gree but then look for a joint degree in another field—maybe in public

policy. I would definitely think about trying to get that dual degree.

In business, you have to manage your career. If you’re a young ris-

ing star, it’s wise to have some exposure beyond your own area and not

get too specialized too early. You certainly have to make your mark

somewhere. And that often requires you to pare down and really go

deep into some area of the company and be content spending three to

five years doing it in order to build something or create something.

I think it’s really important to get your hands dirty and understand that

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Convergence 53

things get more complex as you get deeper. And I think that’s valuable

work. What is important, though, is even as you professionalize your-

self, to maintain a curiosity toward life so that you’re continually read-

ing, learning, growing. You know, the best businesspeople I’ve

met—I’m incredibly impressed by how much they read, and not nec-

essarily just in their fields. David Rubenstein [co-founder and manag-

ing director of The Carlyle Group] probably reads fifty books a week.

I’m astonished, really. I don’t see how they find the time to do it, but I

do see that it broadens them, and I think they see themselves as on a

learning journey. Les Wexner [founder, chairman, and CEO of Lim-

ited Brands] is a veteran CEO who built a retail empire, but he’s still

very much on a learning journey.

One criticism of younger leaders today is that they sometimes lack focus—the ability to drive deeper or maintain an attention span. Are there any words of caution you would have for young leaders?

Don’t be afraid of failure. The metaphor for my generation was “climb-

ing ladders”; the metaphor in your generation is increasingly “riding

waves.” You have to ride waves as they go. You’re often going to find

them collapsing underneath you, and you have to ride the next one

when it comes. That’s the nature of careers today. Companies come

and go quickly. People are CEOs for only—you know, a twinkling of an

eye—and then they have to start over. And you’ve got to be prepared.

I don’t know what the latest numbers are in the Department of Labor,

but a few years ago they were projecting that someone graduating with

a degree today would hold at least seven or eight jobs over the course of

a lifetime—three of which would not have been invented when they

graduated from college. It just goes back to bandwidth and adaptability.

One must be prepared to take risks, to take the fall, pick yourself back

up, and start again. It is also important to build some financial security

very early if you can, so that you have reserves and can afford to take

risks. When you’re doing the start-up, you know, it’s almost a badge of

honor to have a couple of start-ups that fail. But if you’re going to do

that, it helps to have some financial reserves to fall back on.

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54 PASSION AND PURPOSE

And so you’re driving a little bit toward dealing with the obstacles, especially dealing with failure. A lot of young people, particularly in business, have been a little discouraged by the difficulties of the past five or six years as we have been coming of age. Do you have a word of encouragement or hope for this generation as we try and move forward, and especially as we try and correct some of the difficulties that we’ve encountered politically and economically?

We’re entering a period that will be one of the most unpredictable,

fast-moving, and toughest we’ve ever seen. But at the same time, it’s

one of the most fascinating because so much is uncertain that if you

choose to lead, you can have a tremendous impact on reshaping the

future. For those of us who are older, one of our greatest regrets is that

we may not be here to help and to see how this turns out. I think we’re

just at one of those hinge points in history in which mankind can go in

more than one direction. And it’s the younger generation that really

could shape what those answers are, what direction we should take.

We talk about people in their twenties being the leaders of tomorrow.

But with everything we’re seeing now—especially on the streets of

Cairo and elsewhere—I believe that people in their twenties can and

should be the leaders of today.

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CHAPTER 2

Globalization Embracing the Global Generation

I find that because of modern technological evolution and our global

economy, and as a result of the great increase in population, our

world has greatly changed: it has become much smaller. However, our

perceptions have not evolved at the same pace; we continue to cling

to old national demarcations and the old feelings of “us” and “them.”

—The Dalai Lama

The scene of a typical Harvard Business School classroom in the1950s would seem rather peculiar today. For one thing, there were no women. The MBA class would be composed mostly of white American

men, dressed in business suits and taught by a male professor. Fast-for-

ward to 2010. Displayed on the walls of first-year classrooms are the flags

of countries from around the world, representing each member of the

class. You’ll hear a plethora of accents. More importantly, if you listen

closely, you’ll learn that the educational and professional experiences that

these students bring to the classroom also span almost every country and

region. Globalization has become as commonplace in MBA programs as

in business itself.

The next generation, more than others, is taking advantage of the

learning opportunities globalization provides. Instead of simply using

their formative years to develop their professional skills, young people in

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56 PASSION AND PURPOSE

business have used globalization to gain practical experience earlier in

their careers, learn more about different cultures, and ultimately, learn

more about themselves. Like it or not, globalization is now an inescapable

part of the emerging millennial zeitgeist, whether this means work experi-

ence in a multinational company, participation in addressing global prob-

lems such as climate change, the pursuit of new ventures abroad, or

connection to an expanded international network.

According to the IBM Global Leaders Survey, when respondents were

asked to name the top factors that would impact organizations in the fu-

ture, globalization garnered the most votes, with 55 percent of students

ranking it number one. In contrast, CEOs voted globalization the sixth

most significant factor. In the same survey, students were 46 percent

more likely than CEOs to identify “global thinking” as a crucial leadership

skill in the coming years.1

In short, the next generation views globalization in a fundamentally

different way—and this has ramifications for companies, governments, and

international institutions around the world.

Can Globalization Build Better Leaders?

Working in an international setting has become the new normal for young

leaders. In our MBA Student Survey, respondents had worked in an aver-

age of 3.8 countries, including their country of origin. International stu-

dents tend to have worked in more countries—MBAs born outside the

United States had worked in an average of 5.3 countries, versus 3 coun-

tries for those born in the United States (figure 2-1).

After pursuing international opportunities early in their careers, young

MBAs expect to have worked in even more countries by the time they hit

their midthirties. Our respondents expect to work, on average, in 4.6

countries within ten years of graduating from business school. Forty-eight

percent intend to work in 1–3 countries, 32 percent intend to work in

4–6 countries, while 10 percent would like to work in 7–9. Once again,

country of origin also matters in choosing how global one’s future career

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Globalization 57

4.1

0 1

Number of countries

2 3 4 5 6

5.3

3.01

5.3

All (n=510)

U.S. (n=331)

Non-U.S. (n=179) In how many countries have you worked?

Within 10 years of graduation, how many countries do you hope to work in?

4.6

3.8

F I G U R E 2 - 1

Today’s MBAs seek global experiences

will be: those born outside the United States intend to work in an average

of 5.3 countries in the next ten years, compared to 4.1 countries among

those born in the States. As a result, this generation of managers will have

more global aspirations and experiences than any in history. This comes

with its own challenges and opportunities.

The first challenge is the complexity that a boom in global business

creates. Globalization, particularly trade liberalization, doesn’t always

move forward in a straight line. Despite the explosion in trade, with more

than two hundred free trade agreements signed in the last two decades

alone, the global economic crisis has brought about renewed fears of pro-

tectionism.2 Yet despite the current gloom, it’s hard to ignore the stagger-

ing explosion in the number of multinational companies around the

world. There were approximately 79,000 multinational companies around

the world in 2006, up from 7,258 in 1970.3 And their leaders are seeing a

very different global economic environment from the one that marked the

past four decades. In the 2010 McKinsey Global Survey, 63 percent of

more than 1,400 executives expected increasing volatility to be a perma-

nent fixture of the global economy.4 And in the IBM Leaders Survey, stu-

dents pursuing MBAs were 28 percent more likely than CEOs to believe

that the new economic environment is increasingly complex.5 Inevitably,

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58 PASSION AND PURPOSE

young people will play an important role in helping these new multina-

tionals navigate uncertain global markets, especially in demographically

young regions like India and Southeast Asia.

One respondent in our survey summed up the next generation’s senti-

ments about globalization nicely: “Leaders will be forced to unify groups

with greater and greater diversity. They will ask for sacrifice from men and

women who have rarely been asked to give up much. They will be re-

quired to explain issues that are growing in complexity and scope with the

same simplicity as leaders have been required to do in the past.”

The second challenge is increasing and enriching the global exposure

of young leaders early in their careers. This is crucial in helping them to

get comfortable with uncertainty, and to grow the knowledge, skills, and

networks to thrive in a world filled with it. The general importance of

working abroad to develop one’s skills seems to be more important among

international MBAs. Eighty-two percent of non-U.S.-born MBAs agree

or strongly agree that “by working abroad, I have learned new skills that

will be valuable to my career,” compared to 60 percent among American-

born MBAs.

Young people will also have to address the crises of identity that global-

ization inevitably creates. Globalization has influenced young leaders’

sense of identity in two ways: by helping shape common values that tran-

scend national and cultural divisions, and by taking them out of their

comfort zone and forcing them to learn more about themselves.

Growing up in a time of ubiquitous globalization and connectivity,

today’s twenty-something manager has developed values that transcend

country or culture. As one of our respondents said, “Leadership will in-

creasingly be attributed to improving the lives of others around the world.

By the end of the twenty-first century, one’s actions will be judged more on

[their] impact, on what we call ‘externalities’ today. We will get better at

determining the value of these externalities, and this will have to be a pri-

ority for any leader.” What’s fascinating is that as young people around the

world develop a shared sense of global citizenship, they’ve also become

more astute students of local and unfamiliar environments. Consider the

cases of contributors such as Andy Goodman, who grew up in the United

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Globalization 59

Kingdom and helped the government of Qatar establish a new educational

program, or U.S.-born Christopher Maloney, who worked in Rwanda.

Their global perspective is built around a series of local experiences.

Global experiences have also become a crucial way for the next genera-

tion to develop a sense of personal purpose. In the MBA Student Survey,

61 percent of respondents agree or strongly agree that “working in differ-

ent countries has helped me learn more about myself and what I plan to

do in the future” (see figure 2-2). This holds more true for MBAs born

outside the United States, as they are 42 percent more likely to agree

with this statement than those born in the U.S. Part of this is driven by

global educational opportunities. In 2005, there were 2.7 million foreign

students enrolled at tertiary educational institutions around the world.

And though traditional sources of foreign students such as Hong Kong,

Japan, Korea, and Malaysia are expected to plateau and eventually de-

cline, “sunshine” markets such as India, China, and Chile are expected to

pick up the slack and drive the growth of mobile international students.6

Percent of respondents who agree or strongly agree with the following statements

By working abroad, I have learned new skills that will be valuable to my career.

Working in different countries has helped me learn more about myself and what I

plan to do in the future.

Non-U.S. (n=179) U.S. (n=331) All (n=510)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

F I G U R E 2 - 2

MBAs find immense benefits in working abroad

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60 PASSION AND PURPOSE

The third challenge is adapting to the shift in global political and eco-

nomic affairs—the “rise of the rest.” While it’s been fashionable to say

that globalization is no longer driven solely by the West, nobody really

knows for certain how a multipolar world will take shape. This shift has

enormous consequences. A unipolar world is shifting to a complex multi-

polar global economy. Chinese and Indian companies have been aggres-

sively expanding overseas. Indian companies announced more than a

thousand M&A deals, valued at $72 billion, between 2000 and 2008.7

Chinese companies, meanwhile, are buying foreign companies from

Africa to Singapore to gain access to precious oil, gas, and mineral re-

sources to fuel the country’s expansion. The share of developing Asia in

global GDP has more than tripled to 23 percent in 2010, compared to 7

percent in 1980.8

Young MBAs see this trend. When asked which countries are the most

important for businesspeople to understand in the next ten years, respon-

dents of the MBA Student Survey voted China the overwhelming fa-

vorite, with 63 percent decisively ranking the world’s most populous

country first. India came in a distant second with 11 percent, and other

developing countries were frequently highlighted.

The rise of the rest undeniably requires integrative work across func-

tions, cultures, and classes. Young leaders will have to adapt to places

where extreme poverty is spurring new ways of creating value through the

role of private enterprise in delivering public infrastructure such as water,

energy, and health care, or minimizing externalities such as pollution and

social inequality. When asked openly on how leadership will change in

the twenty-first century, learning to manage in an interdisciplinary way

emerged as a recurring theme on the MBA Student Survey. As one stu-

dent summed up nicely, “I think that leaders will be forced to work glob-

ally in a way they haven’t before—requiring leaders to understand and

adapt to different cultures, manage teams and relationships that span the

globe, piece together divisions and companies that operate under com-

pletely different environments.”

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Globalization 61

Bridging Two Worlds An India Story

SANYOGITA AGGARWAL leads business development at Dev Bhumi

Cold Chain Ltd. in Delhi, India. She received her MBA at Harvard

Business School in 2010. San talks about the decision to return to

India after studying abroad and the surprising, often counterintu-

itive, lessons she’s learned in bringing global best practices to a

traditional family business.

Upon graduation from Cornell, I had to choose between two paths. One was

to work for Morgan Stanley in New York; the other was to work in our family

agribusiness company in India. Most of my best friends were going to be in

New York, and Morgan Stanley offered a traditional path to prestigious insti-

tutions for higher education. On the other hand, I also longed to be home. It

was a personally hard decision to make. But in the end, I chose India.

India was not only my home; it was also the new land of opportunity.

It was poised for explosive growth in the coming decade, the place where

we would witness societal change unfold. With the second-largest popu-

lation in the world and retail giants like Walmart and Carrefour zeroing

in on India as the “next big thing,” there was no doubt in my mind that

the future here would be full of promise and optimism. This was a far cry

from the India of the 1970s, which suffered from political instability,

hyperinflation, high unemployment, and decrepit industries. The bright

optimism in India in the first decade of the twenty-first century mirrored

that of the United States in the 1950s. And it was contagious.

So, I decided to work in Delhi with my dad in his agribusiness company,

Dev Bhumi Cold Chain Ltd. The company is a complete one-solution

provider for farm-fresh produce, starting at the farm and ending on the

supermarket shelves. I was beginning to look forward to the experience.

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62 PASSION AND PURPOSE

Confronting Reality at Home

When I started working with my father, I was expecting it to be familiar

territory. I was hungry and passionate to do big things in an environment

I thought I understood. Brimming with ideas, bursting with ambition,

and full of confidence, I had no inkling of the troubles ahead. The next

few months brought reality home for me.

The company was entrenched in the “family business” way of working.

In other words, employees were not evaluated on any performance met-

rics, work was carried out in an ad hoc manner, and there was a lack of

organization and systems. Many thought that the business of fresh pro-

duce was fit only for men. Women would never be able to adapt. Conse-

quently, I was the only woman in the company. Not only did some of the

old senior management object to my coming to the office, but some of

the new female staff that I hired faced a lot of heat. One of the new fe-

male MBAs hired for marketing faced significant opposition and nonco-

operation from various fronts, and eventually she quit. Furthermore,

many in the company disproportionately valued experience over educa-

tion. My American education was seen as an obstacle rather than an

accomplishment. My “new” ways were despised, looked upon with

suspicion, and labeled as impractical.

One of my very first projects was to set up a mineral water plant at the

company’s Himalayan facility. This project had been sidelined due to

skepticism and contention within the organization about its future bene-

fits. So when I decided to conduct a feasibility study to conclusively de-

cide the potential, there was widespread dissent, touting this exercise as

a waste of energy and company resources. Every activity I undertook for

this project met with hostility and noncooperation. Halfway through the

study, my budget was completely withdrawn for a few months because

I was told that the company resources needed to be dedicated to core

activities.

Four months into the job, I was seriously considering quitting. What

made me stay?

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Globalization 63

Establishing Roots, Making a Commitment

Indian agriculture has long suffered from outdated pre- and postharvest

technologies as well as antiquated systems. The average yield of apples for

the Indian farmer, for example, is approximately 5 metric tons per hectare,

compared to a whopping 60 metric tons per hectare for his European or

American counterpart. In addition, an estimated 40 percent of fresh pro-

duce is lost in value and kind due to the lack of cold chain infrastructure in

the country. Despite these dismally low yields and the staggering wastage,

India continues to command a 10 percent share of the global production

of fruits and 13.7 percent of vegetables. The opportunity is simply mind-

boggling. With the right systems in place, India could very well become

the “fruit bowl” of the world. A complete cold chain infrastructure that

starts at the farm gate with procurement facilities for the farmers; takes

the freshly harvested produce through the entire chain of cold storage fa-

cilities, uses refrigerated trucking, packaging, and palletizing; and delivers

fresh produce into the hands of the end consumer would elevate India to

the world platform in agriculture. However, one of the biggest obstacles to

achieving this objective is educating the Indian farmer.

To do so, our company started the Yield Improvement Program. The

objective of the program was to work closely with farmers to introduce

higher-yielding varieties of fruit and educate them on the latest pre- and

postharvest technologies, in conjunction with following food safety pro-

tocols and promoting sustainable agriculture. During one of our initial

visits to the Himalayas, while conversing with the locals, one farmer said,

“We absolutely love this program and are fully on board with you. If your

intentions materialize, generations to come will never forget you.” This

left a lasting impression on me and at that point, I realized the immense

impact this program could have on the farmers in the area and, eventu-

ally, the entire country. I believed that the goals I was pursuing recon-

ciled the profit motive with the right underlying social objectives. I fell in

love with what we were doing, and this outweighed the daily predica-

ments I faced in the workplace. So, I decided to stay and confront my

problems head on.

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64 PASSION AND PURPOSE

Changing the Status Quo

I learned several important life-changing lessons, lessons that hopefully

will be relevant to anyone hoping to do business in India, working in a

family business, or entering an unfamiliar market.

First, I witnessed firsthand how change is always resisted. The best

way to make change is to first understand the reasons behind the status

quo, then become a part of the system, gain people’s trust, and make the

change slowly but steadily. It’s easy to approach problematic situations

thinking that most things should be changed from the ground up, as fast

as one can. But I realized that confrontational attempts at change are the

most damaging. Most of the time, there aren’t any real reasons for this

stance except for the manager’s hubris to leave his mark quickly. When I

got past my youthful naiveté, it dawned on me that the most meaningful

changes must be initiated at a slower pace.

In my particular case, to address the sensibilities of the staff, I started

wearing only Indian attire to the office. Once everyone got comfortable

with me, I slowly changed to Indo-Western clothing and then to my normal

Western outfits. For the female staff, I decided to hire candidates already

known and trusted within the company. For example, we hired the daughter

of an existing staff member, and since she already knew most of the people

in the company, she found it much easier to adapt and fit in. Most of the

senior management, who had previously resisted all female hires, consid-

ered her like their own daughter. Hence, they were more protective of her

and cooperative in helping her understand the work and the systems.

I learned that local conditions can lead to very different and unique solu-

tions. In the United States, for example, I would never have considered this

approach for fear that my action be termed as favoritism. But it worked

wonders in my Indian situation. This woman quickly grew very comfortable

working in the difficult environment, and the staff soon acclimated itself to

her. This ultimately opened the door to new female hires who now had not

only a more receptive organization but also a ready mentor.

Second, I learned not to fall prey to a one-size-fits-all philosophy of

leadership. Unique problems always call for unique solutions. For

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Globalization 65

example, in my initial months in the company, I came to realize that

our employees placed a strong emphasis on relationships with clients

and suppliers, and less, or none at all, on quantitative analyses. Busi-

ness decisions were often made on the basis of old associations and

relationships, and completely without any NPV or IRR calculations.

Thus, the most important leadership skill I’ve learned—and would en-

courage my peers to learn—is to be sensitive to the intricacies of the

situation at hand.

I soon realized that an amalgamation of both quantitative and relation-

ship-driven approaches would lead to a “best of both worlds” result.

Coming from a strong educational background in quantitative business

management, I found focusing on relationships baseless and immature.

But I soon realized the immaturity of my own thinking. There was no

black-and-white answer to this. No one way of working was better than

the other; the two were simply different. The Indian way of working

relied heavily on a “trust” culture, and a lot of business was conducted

based on good faith. One glaring example of this was what I saw in the

fields while talking to farmers during the procurement season. Huge

multinational mammoths were out to procure from the same fields and

the same farmers at higher than market rates. Despite the monetary

advantages, the farmers somehow preferred to sell to us. Logically, this

made no sense. When asked, one of them replied, “It’s because we have

faith in you. We have worked with Dev Bhumi for many years and we

know you would never cheat us. Money is not everything and our rela-

tionship is based on a lot more than just rupees.”

Last, I learned interesting lessons on how to adapt to a family busi-

ness environment, a situation that I foresee several of my peers face as

they return to Asia, where family-owned and -controlled companies are

the norm. Working in a family business is not only about the bottom line,

but also about legacy and emotional attachments. Many projects in fam-

ily businesses are driven more by the founder’s passion than by purely

economic reasons. The founders often invest their personal wealth and

life into building these businesses, and many of their memories are asso-

ciated with the grueling efforts they put in.

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66 PASSION AND PURPOSE

Family businesses have been and will continue to remain important

drivers in India’s economic future. They account for roughly 65 percent

of the economy’s GNP and for 75 percent of the employment in the

country.9 The new generation inherits the responsibility of taking the

business much further than the previous one and needs to earn the cred-

ibility and respect of its peers and employees. I learned that working in a

family business also requires a very entrepreneurial attitude, especially in

interacting within the company.

In my case, as the fourth generation in the family business, I was ex-

pected to hit the ground running from day one. My challenge was more

than just problem solving; it was also getting buy-in from the staff, prov-

ing to them that I was capable of the responsibilities handed to me. The

first approach I applied was to start small with projects that could be

completed in a short period of time. Small projects allowed me to have a

lot of interaction with different groups of people and better get to know

them and their problems at work. This increased our comfort level of

working together and we soon transformed from a group to a team.

As the next generation transitions in, it becomes important to thor-

oughly understand the undercurrents of the business. In family-run

companies, often the staff members are equally committed and passion-

ate about the business and share the founder’s values and principles. The

next generation needs to demonstrate the very same ideals that represent

the foundations of the company. One of our company ideals is to provide

for better living to all staff members through higher education opportuni-

ties and extracurricular experiences. I initiated English classes at the

office for staff who were not fluent. We also started the policy of paying

for complete school education for children who showed high academic

performance in school. All this helped the staff to realize that I was just

as committed to them as they were to our company.

In retrospect, the decision to continue on in India turned out to be

one of the most fulfilling commitments of my life. It was here that I

learned what doing business in the real world truly means, what it means

to be a part of the system and yet be an agent of change, and what it

means to become “comfortable being uncomfortable.”

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Globalization 67

QatarDebate Education, Civic Engagement, and Leadership in the Arabian Gulf

ANDREW GOODMAN graduated from the Harvard Business School in

2010 as a Baker Scholar. Before attending HBS, Andrew cofounded

QatarDebate, a civic engagement initiative that aims to develop

and support the standard of open discussion and debate among

students and young people in Qatar and the broader Arab world.

Andrew’s story helps young leaders appreciate the importance of

cultural intelligence, the right partnerships, and a pipeline of local

leaders in building ventures in unfamiliar markets.

If you had asked me when I started college in England if I expected to

find myself two years later in the midday heat of the Qatari desert, being

filmed balancing precariously atop a camel with a Scottish man in a kilt,

the answer would probably have been no. The state of Qatar is a tiny

desert country at the tip of the Arabian Gulf. A conservative Muslim

country, ruled by an emir, it is home to 1.6 million people and the world’s

third-largest reserves of natural gas, from which the country derives its

prodigious wealth. Before the summer of 2007 it was certainly not a

place I had ever imagined commuting to every month during my final

year at Oxford and the first year of my MBA at Harvard.

It was a passion for education that drew me to the Middle East. Qatar

is richer per capita than Luxembourg or Switzerland, but its scores on

the PISA tests, which assess students’ educational literacy in math, read-

ing, and science, are comparable to those of the former Soviet republics

of Azerbaijan and Kyrgyzstan. In historically failing many students,

Qatar’s education system is by no means unique. However, unlike most

other countries with very poor educational outcomes, Qatar has a rare

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68 PASSION AND PURPOSE

combination of advantages: the leadership, willingness, and funding to

implement genuine education reforms.

From the early 2000s, the emir, Qatari government, and Qatar Foun-

dation embarked on an ambitious education reform program. From these

reforms came substantial changes in both secondary and tertiary educa-

tion. At the secondary level, reformed, charter-style “independent”

schools were created that used a new syllabus and were accountable for

their results to a Supreme Education Council. At the tertiary level, Qatar

Foundation invested billions of dollars to develop an “Education City”

that housed the branch campuses of six leading U.S. universities and nu-

merous other education initiatives.

An Unusual Job Interview

My time in Qatar began in the summer of 2007 with an unusual job in-

terview. Alex Just, a colleague from Oxford, and I were invited by Ali

Willis, an executive director at Qatar Foundation, to spend ten days in

Qatar, working with students to improve their debating, civic engage-

ment, and critical thinking skills. At the end of the ten days, Alex and I

were asked to attend a meeting with Her Highness Sheikha Mozah Bint

Nasser Al-Misned, the Queen Consort of Qatar and, in her role as chair-

person of Qatar Foundation, one of the leading education reformers in

the Middle East. We were told simply to expect the unexpected.

At the meeting, we suggested that Qatar Foundation create and fund

a national organization to work with students and teachers within the

Qatari education system to improve critical thinking and civic engage-

ment. Our background had been in competitive debate, where teams of

students would compete in national and international competitions to

hone arguments and marshal evidence to support an assigned position

on a variety of moral, political, and social issues. We believed that this

type of training—at that time mostly alien to the region—built skills,

civic engagement, and a connection to a global community of high-

achieving students. Such a national organization could therefore be

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Globalization 69

based initially around a culture of debate and discussion, gradually ex-

panding to incorporate other elements and pedagogies.

As we flew back to the United Kingdom following the meeting, we

reflected that Qatar was a fascinating country, and despite our precon-

ceived notions about conservatism in the Arabian Gulf, a large number

of the students we had met seemed to embrace the concept of debating

important political, moral, and social issues. We knew, though, that gov-

ernments and national foundations were not generally in the habit of

entrusting millions of dollars of funding to unproven undergraduates.

It was therefore a surprise when Ali called us in Oxford a few days

later to say that Sheikha Mozah had recommended that Qatar Founda-

tion fund our project, and that we should make arrangements to start

work immediately as program directors . . . in Qatar. Alex and I would be

working under a mandate to fill just a small piece of Qatar’s broader edu-

cational puzzle—student engagement and critical thinking—creating a

national organization that would foster an emerging culture of debate

and discussion among students in Qatar, with the hope of developing the

country’s “leaders of tomorrow.”

QatarDebate

Over the eighteen months after our initial meeting, Alex and I, under the

direction of Ali and with the support of Qatar Foundation, created and

managed a national civic engagement initiative for Qatar that would be-

come known as “QatarDebate.” Life took on a surreal rhythm, writing

undergraduate essays in the rain and gloom of the Oxford winter one day,

and the next, pitching the importance of debate as an educational tool to

education ministers from around the Arab world in the heat of the Qatari

capital, Doha, living out of suitcases and working from Qatar Founda-

tion’s headquarters, airport lounges, and our university dorm rooms.

In its first eighteen months of operation as a not-for-profit start-up,

QatarDebate worked with more than three thousand students and teach-

ers in thirty schools and universities in Qatar. We delivered a curriculum

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to students that encouraged them to think critically about the world,

contest complex concepts, and challenge political and social beliefs.

Schools and universities formed debate teams that constructively and

often heatedly discussed policies from censorship to negotiating with

terrorists to Islamic dress on a weekly basis. At an international level,

we created, selected, and coached the first Qatari national debate team,

which went on to break records at the World Schools Debating Champi-

onship as a first-time entrant. We distributed curriculum materials on

debate and civic engagement to partners in more than fifty countries,

including every state in the Arab world. We even successfully bid to host

the world championships in Qatar in 2010, exposing Qatari students to

some of the brightest young minds from more than forty countries,

including the United States, Israel, and Mongolia.

We were given access to former heads of state and education ministers

from around the Middle East to explain the importance of debate and cit-

izenship education, and provide a blueprint for similar national programs

in their countries. In the media, we brought student debate to promi-

nence on the often controversial satellite channel, Al Jazeera, and were

featured in an award-winning documentary that premiered at the Tribeca

Film Festival in New York. Sitting in a cinema on the Lower West Side

and observing New Yorkers watch Qatari, Iraqi, and Syrian students

engaging in an intellectually rich discussion of U.S. policy in the Middle

East since 9/11 on screen is an experience that I will never forget.

Launching a Start-Up in the Arabian Gulf

The experiences of launching and operating QatarDebate highlighted

several of the challenges that come as part of launching an organization

as an outsider in an unfamiliar environment.

How to organize. The relatively simple process of creating an LLC, pub-

lic limited company, 501(c)(3), or registered charity is typically taken for

granted in the United States and Western Europe. In an emerging market

70 PASSION AND PURPOSE

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like Qatar, the process of creating an organization presents often over-

looked challenges and pitfalls. To create a new charity in Qatar requires

paperwork, time, and approval from the government. We launched

QatarDebate within an existing organization, Qatar Foundation, and as a

result were able to start operations immediately and benefit from the foun-

dation’s funding and goodwill. In contrast, even major multinationals en-

tering Gulf markets as new entities find themselves waiting several months

for the required documents and permits to be approved. However, to posi-

tion your new entity within or in partnership with an existing organization

is to be bound by additional policies, procedures, and protocols in the

longer term. Young managers confronted with the realities of an unfamiliar

market must find balance between speed to market and freedom of opera-

tion, or be fortunate enough to find a rare partner that offers both.

How to bridge cultural divides. Within our first few weeks in Qatar, it

quickly became apparent that there was a gulf between the fundamental

paradigms of U.S. and Qatari education. When our Western-educated

trainers entered the classroom, one of the first questions they faced from

Arab students was simply, “What is debate?” To many students, the con-

cept of critically discussing important political, moral, and social issues

was entirely new. Alex and I were often unsettled early on when con-

fronted by culturally “different” events—in one instance a highly educated

woman wearing the niqab (face veil) and yet strongly advocating that this

choice was a woman’s right and an expression of freedom. We quickly

learned that the Arabic word inshallah (God willing) had a multiplicity of

meanings, and often wondered if specific divine intervention was required

to accelerate meetings, permits, and procurement orders. Managers in

emerging markets must draw a mental line between those cultural differ-

ences they will embrace and those things on which they will stand firm.

How to measure impact. Observing the academic progress of students

who had been through QatarDebate’s programs demonstrated in our

minds the ways in which the coaching improved their critical thinking,

structure, and English fluency. To prove impact, though, we needed to

Globalization 71

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72 PASSION AND PURPOSE

develop a much more rigorous assessment process that tracked cohorts

of students over time. Young managers in emerging markets should be

aware that they will have to modify their existing assumptions about re-

search and tracking. Market research in the Gulf is thought to be at least

twice as expensive as in Western markets, and traditional survey meth-

ods face severe constraints. When entering a market in the Gulf, organi-

zations need to have rigorous KPIs (key performance indicators) to avoid

spending large amounts with limited ability to prove impact, but man-

agers also need to be specific up front about what meaningful data they

will actually be able to collect, sometimes departing from standard met-

rics and getting creative about what measures might provide a reliable

proxy for some other outcome that they are not able to observe directly.

How to lead. When it comes to leadership in the Gulf, we found that

small is often beautiful. By working with students in a relatively small

country, we genuinely had the potential to change the way those young

people will think about the world in the future, for better or for worse.

Those students whom QatarDebate spent hundreds of hours coaching,

now imbued with a new set of tools with which to evaluate the world,

will very likely become the key decision makers within business, govern-

ment, and society in Qatar. When observing those multinationals who

had been successful in Qatar, we saw a similar phenomenon. Successful

companies who had entered the market brought experienced expat staff,

but over time, the most successful companies hired a small number of

very talented locals into genuine leadership development schemes.

These Qataris were given incredible amounts of training and exposure,

and they were told to aspire to be the future CEOs and executives at

those multinationals. Less successful firms complained about a dearth of

local talent, but the market leaders set about generating their own local

talent pipelines from the very beginning.

How to transition. For a national organization to become truly sustain-

able in a world in which individual leadership is only ever temporary, it

needs to be run, at least in part, by nationals. Expatriates can bring

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Globalization 73

significant expertise and dynamism, but they will never quite be able to

match local managers in cultural insight, local knowledge, and a desire

to make their lives in that country. Resistance to this reality is danger-

ous—the Gulf has historically seen many examples of the vicious cycle

in which expats fear losing their positions in the longer term and there-

fore act to maximize short-term gains. Locals in turn perceive foreigners

as concerned more about their short-term gains than long-term sustain-

ability. Handing over control of QatarDebate’s day-to-day operations and

watching a new, Qatari leadership team embark on a new and different

path was extremely challenging—QatarDebate was after all something

that we had created—but it was the right thing to do to create a truly

national organization.

Leaving Qatar

My time in Qatar drew to a close in July 2009 as the full transition to a

Qatari leadership team for QatarDebate concluded, and I decided that I

would return to the United Kingdom after completing the MBA. I look

back on those eighteen months as my first leadership role—a plethora of

incredible enriching, rewarding personal experiences. Many of the chal-

lenges faced were similar in nature, although definitely not in scale, to the

challenges faced by countless case protagonists that I have subsequently

encountered during my two years at HBS. With hindsight and the im-

parted wisdom of various cases and scenarios, I would certainly make

many decisions differently. However, Qatar “made real” for me some things

that had been lost over the course of the seven hundred or so MBA cases.

As I sat with a Qatari friend on Doha’s Corniche on one of my last

evenings in Qatar, watching the sun set over the Arabian Gulf, we found

ourselves discussing the fascination modern business education in the

United States has with “leadership.” Leadership in the Gulf and beyond,

my Qatari friend concluded, required the serenity to accept the things

you cannot change, the courage to change the things you can, and the

wisdom to know the difference.

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74 PASSION AND PURPOSE

Emerging Social Enterprise

Learning the Business of Agriculture in Tanzania

KATIE LAIDLAW is a consultant in the New York City office of the

Boston Consulting Group. Prior to joining BCG, Katie was a senior

associate at the Parthenon Group and served as executive director

of Inspire, Inc., a nonprofit organization that advises community-

based nonprofits. She is passionate about international develop-

ment and future growth in public-private partnerships.

Deo, the local government agriculture officer assigned to Mhonda,

directed me to sit in a red plastic chair as farmers entered the weathered

brick structure in the center of the village. Mhonda, Tanzania, was my

first stop along a series of village visits to gather field data through farmer

group interviews during a summer internship with TechnoServe, a U.S-

based international nonprofit focused on poverty reduction through eco-

nomic development. TechnoServe hired me to work independently on a

three-month study to analyze the fruit and vegetable markets of Tanza-

nia. After a seven-hour truck ride over freeways, dirt roads, mud trails,

and mountainous terrain, I was excited to continue learning about the

business of agriculture in Tanzania firsthand from farmers.

I smiled at each farmer who entered the meeting space. They

stared back at me with facial expressions exhibiting everything from

cautious optimism to anxious skepticism. They were not yet sure of

what I wanted or offered. I noticed how each farmer arrived with his

or her own smoothed sitting stone. Seeing them sitting perched upon

stones in seemingly uncomfortable, crouched positions, I felt in-

stantly self-conscious about my thronelike chair. I then nearly com-

mitted a serious, albeit unintentional faux pas by attempting to lower

myself discreetly to the dirt floor to join them. Deo quickly corrected

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Globalization 75

my move before I fully sat down by simply stating, “Visitors sit in the

chair. You must sit, you are a visitor.”

Feeling a bit flustered, I quickly reviewed my questions for the group

interview. The purpose of my project was twofold: to identify opportuni-

ties within or beyond the existing supply chain that could result in in-

creased farmer income, and to submit a completed grant proposal in

order to access funding for the implementation of any proposed plans.

For me, this opportunity to gain international field experience across

private, nonprofit, and public sectors through TechnoServe was a dream.

Social enterprise, the pursuit of innovative opportunities to create social

value through market mechanisms, is one of my personal passions. I knew

that this three-month experience would be a short-term entrée into a life-

long, multisector career at the intersection of business and social change.

Assembling the Puzzle Pieces

The data I gathered through farmer interviews informed the creation of a

pro-forma profit and loss statement for growing and selling fruits and

vegetables throughout the year. Starting with a baseline financial per-

spective, I brainstormed ways to change assumptions of cost and rev-

enue drivers, with the goal of increasing farmer income. In addition to

the more specific data inputs, farmer group interviews also answered

questions about their savings rates (low), up-front seed and fertilizer

input costs (high), and investments in more sophisticated processes like

irrigation (low and rare). Due to the seasonality of planting and the lack

of access to savings or banking, I could not directly ask farmers how

much money they had made in profit in the past year. Instead, I cobbled

this data together by analyzing what was planted and harvested through-

out the year, typical high and low market prices, and what volumes were

actually grown and sold.

Data collected in each village helped to narrow my focus on farmers

producing primarily mparachichi (avocados) and nyanya (tomatoes). And

thus, my “guacamole plan” was born. I honed in on the differences

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76 PASSION AND PURPOSE

between these two fruits and suggested a comprehensive plan to support

groups of farmers through pilot programs in two distinct farming regions

in Tanzania. I supported TechnoServe’s Tanzania country director to

complete a grant proposal to a large U.S. international development

funding agency identifying the need and income increases possible

through interventions with avocado and tomato farmers. As the grant

proposal served as a summary of my field findings to date, I started to

recognize other peripheral constraints to operating in the international

nonprofit space that impacted my understanding of the sector.

Patience, Not Speed, Is Required for Results

Constraints on time, human capital, or funding (or all three) are com-

mon across the private, public, and nonprofit sectors. While success in

the for-profit sector is often measured by stock performance, progress in

the nonprofit sector, particularly international development, can be more

challenging. Stock prices change in real time. Measurable gains in

tomato production or avocado quality require a longer runway to imple-

ment change and measure impact, and adjustments in perceptions, cul-

ture, and expectations in emerging economies are even more ethereal.

I was surprised to discover that most global aid programs are built

upon the expectation of three to four years of funding, often with no re-

newal. This funding approach is severely disconnected from any longer-

term goal of institutionalizing improvement. Just as many development

programs hit their stride in meeting goals, funding ends, leaving a well-

designed idea half-tested and uncertainty around what truly “worked.”

The nonprofit sector plays a unique role in global capitalism. It is not

predominantly concerned with campaigning and election as in the public

sector, nor subject to the scrutiny of private sector shareholders. It is, in-

stead, a useful go-between. The sector provides a way to work with and

within global markets and local politics to encourage real, on-the-ground

change. But the nonprofit sector, particularly in the field of international

development, will need to increasingly free itself from the constraints of

short-term financing to achieve lasting impact.

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Globalization 77

Applying Lessons from One Sector to the Other, and Vice Versa

At the end of my time in Tanzania, I felt confident in what I had learned

from my experience as well as in what I had contributed to designing a

program for agricultural economic development. This experience con-

firmed my own hypothesis that future leaders will be better equipped to

tackle the problems of tomorrow by being successful in operating across

geographies and sectors today. Leaders must also recognize that there are

no longer silos but, rather, continuous opportunities to achieve greater

social good through collaboration.

Throughout my time in Tanzania, I relied upon skills from my private

sector training, my previous nonprofit sector involvement, and my willing-

ness to learn and understand new approaches specific to the international

development community. The opportunity to work in agriculture provided

me with new information and perspectives that I have since applied in

other industries. By establishing a consistent company relationship with a

single organization or encouraging employee choice, for-profit businesses

today can benefit from expanded employee perspectives gained by working

in a nonprofit or public sector arena, in very unfamiliar environments.

The same benefits of global, cross-sector involvement can result when

nonprofits seek for-profit or public sector resources as a complement to

their internal capabilities. Though I lived and worked in Tanzania for a brief

time, I felt that my final outputs contributed to longer-term knowledge and

resources of TechnoServe. Nonprofit leaders today can fill gaps or further

challenge their organizations by looking beyond their sector and benefiting

from short-term engagements with public and private sector organizations.

Investing Time and Resources for the Changing Global Economy

Upon returning to the HBS campus, I served as a copresident of the So-

cial Enterprise Club, the student-run umbrella organization offering pro-

gramming and networking opportunities for HBS students interested in

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78 PASSION AND PURPOSE

this intersection of market mechanisms and the social sector. The Social

Enterprise Club continues to grow in membership and is currently one

of the largest clubs on campus. This membership metric demonstrates

the increased awareness by business school students of the personal

value of doing good in one’s community and doing well in one’s profes-

sional life, concurrently throughout a career.

During the start of my fall semester, I learned that the proposal submit-

ted for this avocado and tomato project had received a multimillion dollar

grant. It was a deeply fulfilling and satisfying outcome. News of winning

the grant reminded me of so many distinctive memories of my summer tra-

versing along the highways and dirt roads of Tanzania’s Southern High-

lands. My awkward and uncertain start in Mhonda village, seated in a red

plastic chair, was a distant but wonderful reminder of future possibilities to

tackle some of our society’s largest problems through the intersection of

private, nonprofit, and public resources. And young people like me can

find an enhanced sense of purpose through pursuing them.

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Globalization 79

Global Citizen Year Learning from the World

ABIGAIL FALIK is the founder and CEO of Global Citizen Year and a

recognized expert in the fields of education reform, international

development, and social innovation. For her work as a leading social

entrepreneur, she has received awards from the Draper Richards

Foundation, the Mind Trust, and the Harvard Business School.

Abigail has made a commitment to using global immersion as a way

to equip the next generation of leaders with the empathy and insight

needed to overcome twenty-first-century challenges.

Today, fewer than 1 percent of American college graduates have ventured

beyond the wealthiest environments to meet any of the world’s 4 billion

people living on less than $3 a day, according to the Open Doors report

sponsored by the U.S. State Department. Without firsthand experience

with the global majority, how can American leaders possibly expect to lead

with global skills and insight?

Early Journey, Lifelong Commitment

When I was sixteen, my sense of self and the world was blown open

when I spent a summer in a rural Nicaraguan village. Living with a host

family, I learned to speak Spanish and make tortillas by hand, spent my

days working in the fields, and taught English in the community’s

schools. And while my motivations as a do-gooder high school student

were initially to provide some form of “help” to a community plagued by

material poverty, it didn’t take long for me to realize that my hosts were

far from victims to be pitied. Instead, they were resourceful, persistent,

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80 PASSION AND PURPOSE

and better attuned than any well-intentioned foreigner to what was really

needed to lift themselves out of poverty.

Energized by my first experience working abroad, I called the Peace

Corps to see if I could join when I graduated from high school. When I

was told to call back in four years, I was struck by the incredible irony

that our country allows young people to wield a gun in military service at

age eighteen, but requires a college degree or significant work experience

to join the Peace Corps.10

I was determined to find a way to continue learning from the world.

Without these experiences, how could my higher education be relevant

to life outside the classroom?

As an undergraduate at Stanford, my coursework focused on poverty,

inequality, and international development. Always eager to test what I

was learning in my classes in the real world, I took time off midway

through college to return to my host community in Nicaragua and

support them in developing their first library.

Armed with grant money and Spanish language books, I arrived in

Nicaragua with what seemed like a simple goal: to help bring to life a

community’s dream of building a library. What transpired, however, was

far more messy and challenging than I could ever have imagined. Soon,

I was the forewoman on a construction project in a culture and language

that weren’t my own. The daily obstacles ranged from navigating political

faultlines to secure the permits for our new construction site, to waiting

for days on end for the rains so that we could mix the cement foundation.

My learning that year was incalculably more valuable than anything I

had gleaned in a classroom. The experience was so profound that it left

me with a question that I’ve now spent my professional life trying to an-

swer: how different would the world be if every young American had ex-

periences like this?

Years later, after a decade spent working across the nonprofit sector in

the United States and abroad, I found myself increasingly disillusioned

watching good intentions and resources fall short in the face of in-

tractable social challenges. It was when one boss told me to rein in my

ambition and begin to “think smaller” that I realized I needed to go to

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Globalization 81

business school. With my vision for using education to drive social

change on a global scale squarely in mind, I hoped to learn how to build

a high-impact enterprise where “nonprofit” would describe our tax status,

but not our management style.

Global Citizen Year Is Born

Just before graduation from HBS, I entered the Pitch for Change

competition—an annual event that features the most promising new so-

cial ventures from around the world. With an impassioned elevator pitch,

I proposed something outrageous: that someday, every American student

would have an opportunity to spend a “Global Citizen Year” working in

the developing world before college.

When I won first prize in the competition, I was shocked and hum-

bled. Most important, the experience served as a critical moment of

commitment. From the excitement in the nine-hundred-seat Burden

Auditorium, I could tell that this wasn’t just my idea anymore; instead it

was a vision that had resonance far beyond me. In that moment, I real-

ized that my calling as a leader is to help catalyze a transformation in

how America prepares its young people for effective leadership in our

globalized world.

We all have a sense that today’s youth have not been well prepared for

college or for a twenty-first-century global workforce. The statistics are

striking. Fewer than 9 percent of anglophone Americans develop fluency

in another language (compared to 54 percent of our European peers),

and just 1 percent study abroad (and of those who do, two-thirds don’t

venture beyond Western Europe). In a world where economic recession,

climate change, and poverty transcend geopolitical boundaries to affect

us all, how can we possibly expect to overcome these challenges if we

can’t work effectively—and collaboratively—across borders?

One year after graduating from HBS, I had raised over $1 million from

leading venture philanthropists—individuals and foundations looking to

maximize the social return on their early investment—to launch Global

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82 PASSION AND PURPOSE

Citizen Year. I built a founding team, and together we launched a pilot

program with an inaugural cohort of Fellows—young people from across

the United States who had the courage to buck the cultural pressure that

moves our youth straight along the conveyor belt from high school to col-

lege. Instead, each deferred admission from schools ranging from

Harvard to Evergreen State, with the aim of taking their education into

their own hands and out into the world, then starting college the follow-

ing year with a clearer sense of purpose and a more global perspective.

Our founding Fellows came from diverse geographies and varied

socioeconomic and cultural backgrounds, but they were united by their

passion and potential as leaders.

In September, as their friends were heading off for their first weeks in

college dorms, our Fellows came to the Bay Area for our inaugural U.S.

Training Institute. We introduced them to leaders across the public, pri-

vate, and social sectors, and helped them develop a framework for un-

derstanding the experience they would soon embark on overseas. During

the U.S. training, the Fellows had to reflect on two core questions that

would help focus their learning objectives in the months ahead. The first

was external: What are the causes of poverty? What approaches are most

effective in improving peoples’ lives? The second was internal: What is

my authentic style as a leader? Who am I when I’m so far from my com-

fort zone? What is it that really makes me happy? While these may seem

like obvious questions for a young person, for the most part, this type of

inquiry is systematically excluded from the conventional high school and

college curriculum.

From here, our Fellows traveled in teams, each guided by a youth de-

velopment professional we hired and trained to be a “team leader,” to

their country posts in Africa and Latin America. The first month was in

an urban center where the group members acclimated to their new con-

text while engaging in an intensive language immersion and cross-

cultural orientation. Next, the Fellows moved to more rural communities,

where they were paired with host families and apprenticeships—work

placements that matched their interests and skills with the needs of the

community.

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Globalization 83

In Sengalkam, Senegal, an aspiring doctor spent a few days a week

shadowing a traditional healer, and the other days working in a public

pharmacy and a private clinic. In Seibkotone, Senegal, another Fellow

revived the school’s library and unpacked the box of U.S. government–

donated computers that no one knew how to set up. A few weeks

later she was holding workshops to teach teachers to use Google and

Wikipedia for the first time. In Santo Tomas, Guatemala, another Fellow

worked with a women’s group on nutrition issues, and supported the

development of a community garden.

Our Fellows had netbooks and flipcams, and throughout their experi-

ence corresponded regularly with K–12 classrooms and communities in

the United States. Stateside, as interest in their work grew, we helped

ensure that our Fellows’ experiences touched the lives of their parents,

peers, and a broader public through partnerships with Current TV and

op-eds in the Huffington Post and New York Times. A change of mind-set

may begin with our Fellows, but ultimately, we hope they will create a

ripple that reverberates across America.

In May 2010, our first class of Fellows returned home—transformed

in their sense of themselves and the world and hungry to start their col-

lege careers. They spent the summer sharing what they had learned

about their guiding questions through presentations in classrooms, blog

posts, and publications in their hometown papers. In the fall, they

headed off to colleges across the country, having developed the passion

and perseverance that make the difference in college, careers, and life.

With this first year’s success, my vision is emboldened and we are now

on track to triple the size of next year’s cohort, with the aim of engaging

ten thousand Fellows annually by 2020. We are working to do more than

build another exchange program—our aim is to catalyze a movement

that engages colleges, companies, governments, and social enterprises

around the world.

As our effort gains momentum, Global Citizen Year can fundamentally

restructure the way young Americans learn about and engage with the

world. By supporting emerging leaders at the moment they are most

ripe to new ideas, growth, and exploration, we can awaken their true

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84 PASSION AND PURPOSE

potential. Our Fellows enter college knowing what they want to pursue,

why, and how to use their education to have an impact in business and

public service—for our nation and our world. Over time, we will build an

undeniable force: a pipeline of new American leaders with an ethic of

service, the fluencies needed to communicate across languages and cul-

tures, and the ability to work at the interface of the public, private, and

nonprofit sectors to build a more peaceful and prosperous world.

Broader Lessons for Business Leaders

At its core, good leadership requires empathy, and empathy requires first-

hand experience. If we aspire to develop global leaders, then we must also

understand the breadth and diversity of experiencing people, places, and

problems that we won’t otherwise experience if we stay close to home.

As Global Citizen Year prepares the next generation of leaders, Ameri-

can corporations can—and should—be equipping our current leaders

with the empathy and judgment they need to make effective decisions in

a globalized world. Following the lead of programs like IBM’s Corporate

Service Corps, a growing number of companies have developed programs

that enable employees to live and work in the developing world as a

means of learning about new markets, building internal capacity, and

supporting employee retention. But this kind of experiential learning

must become the norm, not the exception. GE should send product

designers to rural communities to truly understand which technological

innovations are—and are not—appropriate in improving lives at the bot-

tom of the pyramid. The Gap should send product managers to work in

the plants where their clothing is being produced.

Not until we walk in another’s shoes can we truly feel others’ hopes

and fears, and have the wisdom to know what it would mean to work to-

gether toward a common cause. One day, we will have redefined effec-

tive leadership training to include firsthand knowledge of people,

languages, cultures, and solutions that can only be found beyond our

borders. Simply put, we can’t afford not to.

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Globalization 85

The Business of Reconciliation How Cows and Co-Ops Are Paving the Way for Genuine Reconciliation in Rwanda

CHRIS MALONEY works as a management consultant on projects for

public and private sector clients across Africa, especially in agricul-

ture, health care, and policy. A native of New York, he holds a BA in

economics and African/African-American studies from Stanford

University, and both an MPA/International Development and an MBA

from Harvard University. In reflecting on his experience in Rwanda,

Chris realizes how unfamiliar environments abroad can lead one to

reevaluate traditional notions of business risk and social return.

It was late at night, and I was tired. Perfect timing for my inner consul-

tant to become narrow and critical. I had come up to Rwanda to look at

ways in which the main agriculture challenges in the country were being

addressed by both the government and foreign donors. I was knee-deep

in documents, sitting outside on a typically breezy, eerily silent Kigali

evening. As I read through the reports, my mind started raising red flags

on two programs in particular:

• The “one cow per poor family” program intended to get every poor

family in Rwanda a cow—thereby increasing the amount of milk,

protein, and fertilizer available to the average family, which

sounded good on paper.11 But this was in the most densely popu-

lated country in Africa, where almost everyone was poor (living on

less than $1 per day) and stuck on tiny hillsides. How on earth

would this work? There were few people with the skills to care for

the cows, little land for grazing, little land on which to use the new

source of fertilizer, and little credit to allow the farmers to expand

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86 PASSION AND PURPOSE

their farming activities once they had the cow—it was hard to see

how this program could be sustainable.

• In the government’s action plan, the co-op approach seemed to be

the main way of solving problems—a tough way to go.12 For farmers

to move beyond subsistence, they need to be able to buy the right

inputs to grow more and access the right markets to sell more.

Co-ops are one way to do this (form a group to access credit for

inputs and sell products in bulk), but they are notoriously messy

and hard to sustain. There are challenges with misaligned incen-

tives, poor leadership and management, and too many stakehold-

ers. Individual entrepreneurs, on the other hand, were more what

I was used to seeing in African agriculture transformations—

individuals who would have private sector incentives to work with

farmers to help them access inputs, and aggregate their output to

help them access markets in bulk and get better prices for every-

one. But such entrepreneurs seemed to figure only vaguely in the

Rwandan government’s plans, and I couldn’t figure out why. Why

take the riskier co-op approach?

My mind started to wander. As with everything in Rwanda, one cannot

ignore the 1994 genocide, in which Hutus, the largest ethnic group, sys-

tematically slaughtered a million Tutsis in one hundred days under an

extremist Hutu government. This led to the displacement of millions of

Rwandans, both Hutu and Tutsi, before Tutsi rebels came in and

stopped the genocide. This was a brutal time, involving machetes and

constant fear, where friends and neighbors somehow switched off their

humanity for four months. This hotel where I stayed—the Serena, Ki-

gali’s main business hotel—was called the Hotel des Diplomates during

this awful period. The Diplomates was the antithesis of the Hotel des

Mille Collines, which was right down the road, and now famous from

the movie Hotel Rwanda. As opposed to the Mille Collines, which had

served as a sanctuary during the genocide, the Diplomates served as the

genocidal Hutu government’s headquarters as the Tutsi rebels eventually

closed in on Kigali. It was here at the Diplomates where district

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Globalization 87

governors of the Hutu extremist government were ordered to update the

ministers on how fast their “work” was progressing—that is, killing all the

Tutsis in their home regions—and where many grisly executions were

carried out on the top floors. But now, sixteen years later, I couldn’t even

fathom such a thing. The hotel had since been bought, gutted, and trans-

formed into a modern facility that could have been anywhere in the

world. Today the place was sterile, and it was comfortable. And just

below this shiny surface, it was filled, like everything in Rwanda, with

the ghosts of the past.13

How does a country begin to put such spirits to rest? Perhaps, amaz-

ingly, the way the government was going about its agriculture transforma-

tion activities was one such way. As I thought about these programs, and

as I pressed for more feedback in interviews with various people around

Rwanda over the subsequent days, I realized that both the cow program

and the co-ops were trying, perhaps, to use business as a means of recon-

ciliation. To me, it was a startling idea.

Spending some time in the rural villages and meeting with farmers

themselves painted the picture for me. After the genocide, many villages’

lands had to be completely reconfigured as many families had been

killed, or fled, while other people, sometimes totally new, came to the vil-

lage for the first time. In a few places I visited, genocide victims were

given plots of land right next door to someone who had been a perpetra-

tor of the genocide, thereby encouraging some form of reconciliation

since they had to see each other every day. It was not easy. One woman I

spoke to, who had lost most of her family, simply said, “It’s very hard, but

he is my neighbor.” How does one rebuild in a setting like that? It was

here where I began to see that the cow program had a part to play in this

story. A program rule in many places was that the first calf of the cow

must be given to a neighbor. In this way, the cow program was not just a

subsidy or “gift from the government,” but rather an asset with a strong

future value that brought neighbors together and gave strength to fami-

lies where so much had been lost. This gift of the first calf was incredibly

significant. A cow, it turns out, can often provide a family with just

enough cash to access higher education, and have a steadier, more

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88 PASSION AND PURPOSE

diversified diet, among other benefits. As I began to understand it, the

gift of a cow could change lives, as it would work across families, and

help, in some small way, to aid in reconciliation—if nothing else, it

would certainly help bind neighbors together.

Rebuilding communities was the other big challenge. The fractured

villages needed something to pull them together—not just at the family-

to-family level (as was being done with the cows), but at the community

level. This is where the co-ops came in. As tough as they are to build,

manage, and sustain, the role of co-ops in a Rwandan village was more

than just helping farmers improve their income. Looking closer, I saw

that the co-ops would give farmers a common sense of purpose, an in-

centive to want to work together and achieve a positive outcome. A co-op

changed the lives of farmers economically and socially. It could be a criti-

cal tool for pulling a community together and provide an incentive for it

to rebuild itself. It also avoided the appearance of favoritism. If the

government was seen as supporting one individual entrepreneur over

another in some of these places, the fractures in the community could

grow. But the co-ops could avoid all of this, as they would first pull the

community together, and maybe at a later point spur more individual

entrepreneurship.

Stepping back, I realized the co-ops and cows were important in ways

that no IRR (internal rate of return) or competitive strategic analysis

could measure. I learned that, as with so many things in Africa, the con-

text was everything. It is hard to put a number on the “value” of reconcili-

ation, but it is here where measures like social return on capital and

deeper cost-benefits would be critical. Indeed, the amount of effort that

would be needed to make “one cow one family” and the co-ops work

would be high, but the value it could create was socially tremendous,

and something I might have missed had I not gone into the villages

themselves, or thought more deeply about the programs’ unspoken moti-

vations. You wouldn’t see any explicit reference to reconciliation in the

dry, official policy document. Instead of thinking of the cows and co-ops

as too risky, in fact I realized it was this high amount of risk that could

possibly guarantee a very high return—one that went far beyond

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Globalization 89

monetary value, but helped families confront the horrors of the past, and

reconcile entire communities.

For me, the lessons from this experience are twofold. First, business

can be used to create incentives not just for economic return, but also

for social return. This is happening all over Africa and across the world,

but Rwanda was the first place I saw business used as a cornerstone of

such broad social transformation. Second, it is not always easy to see this

idea of “social return,” nor is it easy to quantify. The risks of “social busi-

ness” are high, and likely require some economic cost to capture the

value of increased social return. Efforts need to be placed on under-

standing how to mitigate these risks to maximize the social return, and

shed new light on what might have originally been a questionable busi-

ness case. For young managers seeking to grow global careers, this

implies several things:

• First, working in environments completely different from the ones

you are used to requires you to push harder to understand the con-

text and keep an open mind. Though difficult, you must think

through the project from the point of the view of “the other side,”

looking at all the players’ motivations and incentives, or else you

might miss the whole point. No one ever explicitly told me these

projects were about reconciliation—my realization came through

getting out into the field and interacting with a range of people,

from individual farmers to political and social experts. What would

the government want? A country put back together and moving for-

ward. What did the villagers need? A stronger social fabric and a

way to start lifting themselves out of poverty. Using this lens, I

began to see how these projects were using business to achieve

such outcomes.

• Second, because projects in areas with profound social challenges

may have positive externalities that are hard to quantify, the process

may be as valuable as the end product. While the programs are

rolled out, the “cow annuity” and the small businesses formed by

the co-ops bring families, neighbors, and communities together.

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Therefore, when weighing the risk of a particular project in such a

situation, one must consider all of the possible effects that might

come out of the process of implementing it—and what might hap-

pen if it is not implemented. This then needs to be weighed against

what the project will ultimately create, to see if the trade-offs be-

tween the various costs, risks, and returns are worth it.

• While perhaps stating the obvious, when you work in socially trou-

bled areas, there is a high risk of failure. Alternatives to achieve the

implicit outcome (in this case, reconciliation), as opposed to just

the explicit outcome (income generation for poor farmers), should

be explored up front, to see which approach makes the most sense.

From the cows to the co-ops, many of the programs I saw in

Rwanda are risky and difficult to implement. But the social return I

believe is worth the risk, and we need to shift the focus to ways to

increase the likelihood of success and to solve the execution prob-

lems during roll-out.

What I love about working in Africa is that I am constantly reminded

that I don’t know what I don’t know, and that with every project there is

something more to learn, a new perspective to add to my toolbox as I

work on various projects around the continent. In the end, I cannot guar-

antee the cows will turn Rwanda into the next Wisconsin, nor can I guar-

antee that every co-op will run smoothly. However, I do believe that the

process of working through this venture can help put many of Rwanda’s

ghosts to rest.

90 PASSION AND PURPOSE

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INTERVIEW WITH . . .

Dominic Barton Global Managing Director of McKinsey & Company

Dominic Barton talks about his own global experience, what global-

ization will mean to organizations and young leaders, and how

businesspeople can use global experience to improve themselves

and their organizations.

As a firm with a global footprint, McKinsey has nurtured an organization that cuts across cultures and boundaries. How have McKinsey and its clients responded to globalization over the past several decades?

In the late 1950s, we began to help emerging multinational compa-

nies expand their presence in Europe, South America, and parts of

Asia. We also began hiring global talent (at some scale) in key univer-

sities in the U.S. and Europe. This helped to set us up for globaliza-

tion over the next fifty years. Over the past several decades we have

broadened our geographic footprint (now fifty-five countries with the

opening of our Nigeria office in November 2010). In fact,

McKinsey—and many of our clients—have responded to globalization

by expanding physical presence to where demand opportunities are in

key geographic nodes around the world and by becoming locally rele-

vant in each of those nodes. We have also pursued a global or “one

firm” culture—a common standard across geographies for our client

service approach (e.g., all clients are clients of the firm and not the

local office—we serve our clients with global teams and bring to each

of them the most relevant parts of our global knowledge); global train-

ing; one language; our talent development approach (e.g., all partners

are elected globally and have been from the beginning; a strong

encouragement of mobility between countries throughout one’s

Globalization 91

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92 PASSION AND PURPOSE

career—I have personally lived in seven countries on all major conti-

nents while at McKinsey), which encourages a global perspective; and

our remuneration approach (e.g., one firm global profit pool).

In your experience, how has globalization affected the careers of today’s young managers? How is this different from the previous generation of managers?

Managers today are playing and need to be equipped to play in a signifi-

cantly larger, more diverse—but interrelated—and fast-moving playing

field. They need to understand the broader world context in which they

are operating—rather than just their immediate surroundings. This ap-

plies not only to new potential “demand” markets, but new sources of

supply, innovation, and talent. For many, if not most, industries, disrup-

tive change and innovation is as likely to originate from across the globe

and adjacent businesses as it is in just the local market, and managers

will need a wide field of view that includes deep awareness of global

trends. Technology has a role to play in making emerging managerial

challenges easier. There are also new decision-making and oversight

skills to learn to ensure that the challenges associated with globalization

and increased volatility and risk are met.

Young managers will also need to be much more versatile and mobile.

Of course, overseas “chapters” in a career will be a much more prevalent

part of career development for a far greater portion of leaders than in the

past. However, versatility will need to go much farther—including the

ability to work more seamlessly across public, private, and social sectors.

The challenges we see in a globalizing world (for example, job losses in

developed economies) require the strong collaboration of business, gov-

ernment, and social sectors. I think that young mangers should seek out

opportunities to work across those areas—in effect becoming “tri-sector”

athletes over the course of a career—and some parts of the world do this

more naturally, such as India, China, South Korea, and Singapore.

Finally, for all mangers, the bar for depth of knowledge and the abil-

ity to work across cultures continues to rise in a globalizing economy. It

is not sufficient to be the best within a market or region. In today’s

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Globalization 93

world, young leaders must have relevant expertise and skills in a multi-

country setting.

In what ways does global experience early in a businessperson’s career help him or her become a better leader?

Global experience early in one’s career can be likened to a “leadership

accelerator”—developing a broader understanding of cultures and of de-

cision-making and team-building approaches, as well as the challenge of

what can be built from a “standing start,” enhances leadership “muscle.”

Global experience early on forces one to challenge basic assumptions—

for example, what is important to customers; what is important to tal-

ent; how to get things done—skills that are important for innovation

and improving performance anywhere in the world. These managers will

understand the cultures and values of partners outside their home

country—making them more effective in building relationships every-

where. They will also develop bonds with suppliers and customers that

are much harder to achieve at a distance. I spend a lot of time encourag-

ing CEOs to take their boards into emerging markets to see in-person

the changes taking place. The earlier that businesspeople can get to

grips with the communities in which their customers live, the more

likely that they will successfully lead companies that serve those cus-

tomers well.

There are broader macroeconomic benefits as well. Workers over-

seas often act as ambassadors for their home country—making connec-

tions and opening pathways for other business leaders in their home

country.

What are the skills and experiences that managers and organizations should nurture in their young business leaders that will enable them to succeed in tomorrow’s global marketplace?

One of the most important, but least valued, skills is the ability to put

oneself in the shoes of others. We have been living in historic times with

continued—and often disruptive—changes from all sectors and all parts

of the globe, creating a constant stream of new possibilities.

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94 PASSION AND PURPOSE

In this context, leaders should seek out experiences outside their

own country to understand dynamics, trends, and approaches that

could create opportunities and challenges for their businesses.

Cross-sector perspectives can also be very helpful. Retailing and

technology, health care and telecom, banking and consumer goods are

all examples of industries where connection and cross-experiences

will benefit young leaders. Even today, many CEOs get a lot of value

from connecting with leaders in industries unrelated to their own.

Young leaders also need to be constantly open to change—seeking

and even stimulating continuous experimentation with new technolo-

gies, new products, and new business models. One of the hardest

things for any of us to do is to let go of business models that have

proven successful in the past. Leaders need a “healthy paranoia” that

will keep them on a high state of alert for new possibilities. By con-

stantly questioning assumptions and orthodoxies, we can avoid be-

coming too comfortable with past success models. As the rate of

change in the world increases, leaders need to learn to do this even

more aggressively than their predecessors.

Finally, leaders need to learn how to anticipate and prepare for

risks. The volatility we have experienced recently will become a more

normal part of how we operate. The sources of risk for any organiza-

tion can be quite different and wide-ranging. Spending sufficient time

with key stakeholders and people in the organization that directly

serve them—especially key customer segments—is very important.

You’ve traveled extensively throughout your career. What was your own global journey like, and what have you learned from it?

I have been very fortunate to have worked with McKinsey clients on

six continents, and to have witnessed firsthand the growth of Asia as

an economic powerhouse while living in Seoul and Shanghai. My con-

fidence and excitement about Asia’s economic future comes in part

from that experience of having called the continent my home for the

last twelve years. I have learned a lot about learning. In many of these

country experiences, I felt like I was starting over again and, while

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Globalization 95

painful and stressful at many times, I think one benefits a great deal

from these experiences. I learned a lot about relationship building—in

several of the countries, I did not speak the local language but had to

learn how to communicate effectively and “read” people—in fact, I

think I developed a deeper sense of “radar” than I ordinarily would

have if I had not moved around so much.

You’ve spent a significant part of your career in China. What can Chinese companies and business leaders learn from the rest of the world? What can the rest of the world learn from China?

For Chinese companies, it is crucial to recognize that strategies and

organizational models that work well in China will not necessarily

work in other parts of the world; in particular, talent models and deci-

sion-making processes will need to be quite different. Adapting to the

world beyond China’s borders is their biggest challenge—they need to

understand and respond to the diversity of other markets; not only

customers, but employees, competitors, and regulators.

For companies from outside China, the learnings are very similar.

For example, you would be surprised how often executives assume

that China is a single market—and indeed that most Chinese con-

sumers will view a product or service in a similar way. Of course, the

reality is that China is far from homogenous. Companies coming into

the Chinese market for the first time need to understand its tremen-

dous diversity, and build this into their strategy. For example, in con-

sumer goods sectors we often advise our clients to think of China as

twenty-two distinct markets. For many, this will also mean creating a

second headquarters in China and substantially “beefing up” govern-

ment relations as a means to becoming an insider in the country.

What are the most important lessons that American business leaders can learn from the process of globalization and from their global business partners?

The coming decade will be the first in two hundred years when

emerging market countries contribute more to growth than developed

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96 PASSION AND PURPOSE

ones. Leaders of American businesses need to prepare for dramatic

changes to the world in which they operate.

We will see 900 million new middle-class consumers driven by

these shifts. Their demand for goods and services will reshape indus-

tries. It is far from clear how companies will serve that new demand

successfully, and I expect consumers in developing markets to put

tremendous pressure on companies to innovate. Similarly, technology

brings near-instant connectivity and innovation continues to rise

alongside connectivity as consumers have a global field of view and a

multiplicity of choices.

Ideas and innovation occur all over the world, and globalization will

push the pace of innovation to increase further. While the U.S. will

remain an important individual economy, American businesses will

need to figure out how to go after these 900 million new middle-class

consumers—often challenging major orthodoxies to meet new prefer-

ences and provide high-quality products and services at significantly

lower price points. Many businesses will also need to significantly re-

think their talent and talent-development models—both to access

great talent in different parts of the world and to develop an even

deeper bench of globally minded leaders. Finally, American business

leaders, like all others, are going to need to be comfortable with and

learn to thrive with levels of uncertainty and volatility we have not

seen in recent times.

Are there any words of caution you’d offer to the next generation of global leaders? Are there any words of encouragement?

The next generation of leaders will have the opportunity to deal with

exciting and quite different challenges than their predecessors—all in

a context of a globally connected and constantly changing world.

They need to have both a “long lens” and a “short lens” and keep both

in constant balance. A long view keeps careful watch on where the world

is going and makes investments accordingly. At the same time, the short

view enables one to be nimble and move quickly in the moment—

adapting to sudden changes and capturing pockets of opportunity.

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Globalization 97

The next generation of global leaders should nurture curiosity and

seek new experiences as much as possible by traveling, working across

cultures and even sectors, connecting and forming relationships

across country borders, absorbing new perspectives—especially be-

yond Anglo-Saxon ones—and reading broadly. Information, ideas, and

innovation come from many sources, and they should develop as

many “source spots” as possible.

Finally, I would encourage leaders to develop their “resilience

muscle”—there will surely be shocks, challenges, and failures along

the way. We all need to get back up on our feet when (not if) we are

knocked down—our research shows that more successful people

and leaders actually experience more “bad luck” than less successful

people—and reach out for more experiences, especially

international ones!

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CHAPTER 3

People Leading in a Diverse World

Variety is the spice of life.

—William Cowper

One of the striking facets of modern business is the incredible diversityof the people—customers, colleagues, suppliers, and competitors— with whom we now interact. On a day-to-day basis, businesspeople engage

people of every race, religion, color, creed, and personal preference—and

while this variety can prove difficult to navigate, it’s also equipping young

leaders to operate with agility, humility, and individuality.

Businesspeople, of course, have always had to lead diverse groups.

Historically great cities like Piraeus, Alexandria, and New York were both

cultural and commercial centers—where trade brought together people

of every race, religion, and ethnicity. The private sector has often flat-

tened class differences and offered excluded peoples a means of partici-

pating more fully in society. And, particularly in modern times, the

entrepreneurial desire to reach every untapped (and profitable) niche has

led to an explosion of various “long-tail” business ventures—from inde-

pendently produced online music albums to art house movies and organic

vegan restaurants.

And despite occasional resistance, workplaces around the world are

becoming ever more diverse. On a global level, we may be living in one of

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100 PASSION AND PURPOSE

the most inclusive times in history. As labor force participation increases

and old racial, class, religious, and gender-based barriers are gradually

lowered in many regions, the workplace is benefiting from a multiplicity

of perspectives. In practical terms, these varied points of view are often

quite necessary to reach the equally diverse array of consumers who now

purchase goods from multinational institutions. Companies like Coca-

Cola must now serve customers of every conceivable nationality, class,

and creed. And they have often recognized the importance of this diver-

sity more quickly than global political institutions.

That’s not to say these companies are perfect—far from it. Senior exec-

utive suites are almost all still dominated by historically powerful groups.

In the United States, this means that many CEOs are older white males.

In Mexico, it means that very few native people hold executive positions,

and in many companies around the world it means an underrepresenta-

tion of women.

But the trends—at least on these conventional measures of diversity—

are improving. In 1975, for instance, only 11 percent of the MBA class at

HBS were women, 6 percent were U.S. minorities, and 15 percent were

international. By 1995, women comprised 28 percent of the class, U.S.

minorities 14 percent, and international students 23 percent.1 And for

the HBS class of 2012, the figures had climbed to 36 percent women, 23

percent U.S. minorities, and 34 percent international students.2 Other

business schools, like France’s INSEAD, are even more diverse (at least

by country of origin), with INSEAD boasting a 2010 class that was 92

percent international, with 59 percent of students from outside of West-

ern Europe, and 33 percent women.3 Those of us who recently attended

business school can attest to the dedicated efforts these schools make to

celebrate the religions, cultures, and passions of these various con-

stituencies in very authentic ways.

In our own survey, more than 92 percent of respondents answered

“agree” or “strongly agree” to the statement, “Increased workplace diver-

sity can lead to better business outcomes.” And a majority of respondents

selected numerous categories when prompted with this statement:

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People 101

“I hope my future employers seek to actively foster the following ele-

ments of diversity in the workplace” (see figure 3-1)

Of particular interest is that these respondents don’t simply or even

predominantly value racial, ethnic, and gender diversity—but diverse

professional experience, functional expertise, and educational back-

ground. There seems to be a realization that out of these diverse experi-

ences and identities come the strength of alternative perspectives—and

next-generation leaders value those perspectives for the personal growth

and professional success they can bring. This kind of diversity is both a

challenge and an opportunity.

82 Professional experience

Functional expertise

Gender

Race

Ethnicity

Educational background

Citizenship

Language

Economic class

Sexual preference

Religious tradition

Total MenWomen

75 87

F I G U R E 3 - 1

Traits to foster in the workplace (percent responding “yes”)

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How Can We Lead in a Diverse World?

So where do we go from here? Certainly, the next generation of business

leaders will continue to seek out inclusive workplaces; and they’ll likely

be more effective at creating them because they themselves are more di-

verse in almost every conventional sense. But there is a growing belief

that these external measures of diversity—particularly race and gender—

are insufficient, and that sensitivity training programs are quickly becom-

ing outdated and ineffective. We are also realizing that as important as

the diversity of the people you lead is the diversity of your own leadership

experiences.

This generation—fed on the aforementioned “long-tail” idea that each

person is unique beyond his or her class, race, or gender, having unique

tastes and preferences—is instead pushing for greater “wholeness” in the

workplace. Alternative work schedules. Part-time or remote employment

for mothers and fathers who choose to stay at home with children. In-

creasing incorporation of various religious and cultural practices in the

workplace and increasing openness among employees about sensitive

topics. This generation is pushing the idea that no one achieves happi-

ness by cleaving herself in half—one part “professional” and one part

“personal.” And as technological and cultural shifts increasingly allow

such radically individualized diversity, the next generation’s leaders will

use these shifts to gain a competitive advantage among customers even as

they create a fuller work experience for employees.

This shift is perhaps most pronounced among millennial women. Ac-

cording to a recent Accenture survey, 94 percent of millennial women be-

lieve they can achieve “work-life balance”—a modern euphemism for

happiness and fulfillment in one’s personal and professional life. And 70

percent list “maintains work/life balance” as a critical quality of a success-

ful female leader.4

But the shift toward individualization is also clear, more anecdotally, in

the changes companies are making to accommodate the needs of their in-

creasingly varied workforces. Google has traditionally offered employees

“20 Percent Time”—one day per week dedicated to their own pursuits

102 PASSION AND PURPOSE

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People 103

and initiatives; 3M has promoted something similar with its “15% cul-

ture.”5 And in 2007 at least, Netflix claimed that it did not even track the

hours of its employees.6 Far from the purview of radical companies in Sil-

icon Valley, similar techniques are employed by the likes of JetBlue,

which pioneered a program of at-home call center agents, many of whom

were stay-at-home moms, in locations like Salt Lake City.7

Some pioneering companies are even embracing religion. Tyson Foods,

for instance, created a chaplaincy program—staffing its various facilities

with religious mentors who reflect the dominant faiths of workers in their

particular regions, and are available to employees of all faiths for counsel.

This program would seem eccentric if similar versions hadn’t been imple-

mented, in whole or in part, in other prominent companies, such as

Coca-Cola, R. J. Reynolds, and Texas Instruments.8

And, of course, businesses have often been harbingers of social change

on lifestyle issues like sexual preference—many private firms began to

offer same-sex partner benefits, for instance, long before same-sex part-

nership became a prominent political issue. According to the Human

Rights Campaign, by 2003, 64 percent of the Fortune 100 offered same-

sex partner benefits, and by 2009, that number had reached 83 percent.9

In short, companies are both expanding what it means to be “diverse”

and doing so in ways that attempt to empower employees and offer them

greater fulfillment, wholeness, and happiness in the workplace. And the

next generation of business leaders is thinking in ever more innovative

ways about how to expand these initiatives and lead these varied individu-

als in the pursuit of common goals.

The following stories address the idea of leading in a diverse world

with the benefit of diverse leadership experiences. People are freer to live

with greater passion and purpose when they feel more “whole” at work.

Over the next twenty years, the best organizations will find ways to har-

ness this incredibly diverse and dynamic talent pool to revolutionize the

way they do business.

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104 PASSION AND PURPOSE

Nonconforming Culture How to Feel Comfortable in Who You Are No Matter Where You Are

After five years in the consulting practice, KIMBERLY CARTER now

works as a senior manager in the Leadership Development Group

focused on talent development and corporate university launch

for Deloitte. Kimberly earned a BS in accounting from Florida A&M

University and a minor in German from Florida State University. She

is passionate about education and leadership development.

Imagine walking through the streets of a small town and always being met

with stares—most are inquisitive while others are laced with malice.

Imagine questioning how someone could seemingly judge your worth or

meaning without knowing anything about you. I experienced something

like this when I lived in Germany as an exchange student in the early

1990s, a time of heightened hostility toward outsiders. At the time,

Germany had an influx of immigrants following the collapse of the Berlin

Wall along with a rash of fire bombings and “Ausländer raus” (“foreigners

get out”) demonstrations that expressed a widespread negative sentiment.

There were also a number of marches organized to address tolerance and

to counter xenophobia. On the surface, many assumed I was an African

seeking asylum and employment rather than an African American study-

ing the language and culture. The internal conflict I felt from not always

feeling welcome given the color of my skin spurred me to write a poem

entitled “Identity” for my high school literary magazine. That experience

not only exposed me to the stark realities of modern-day bias but drove

me to never let others’ perceptions of me limit or determine my path.

Growing up in Mississippi, I was no stranger to prejudice. The impact

of discrimination in the United States lingered past the abolition of

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People 105

slavery because certain laws prevented blacks from having the same civil

rights (e.g., to vote, to use common restrooms or drinking fountains) as

whites until the late 1960s, particularly in some Southern states. My

parents experienced segregation firsthand and dealt with systematic in-

justice; however, those experiences fueled their desire to earn university

degrees to create a better life and demand fair treatment professionally.

Even after the passage of the Civil Rights Act of 1964, some mind-sets

had not changed enough to grant African Americans immediate access to

education, jobs, and housing—even if they were overqualified. My family

emphasized that education held the keys to equal opportunity. They

grounded my life in the idea that you can excel in spite of adversities and

still be true to yourself. With a deep appreciation for the faith and sacri-

fices of those before me, I kept those memories dear as I worked my way

up in the business world. Although I initially struggled with the expecta-

tions to conform to corporate environments in order to succeed profes-

sionally, I soon discovered there should be no real boundaries for

diversity in the workplace.

Many of those unspoken expectations and my feelings about them

may seem superficial (e.g., always having straightened hair because natu-

ral hair is not acceptable, or feeling as if I had to represent the universe

of African American females at work since we represented 1 percent of

our starting class). But at the end of the day, I had to be comfortable with

the person I saw in the mirror and happy with the choices I made. I rec-

ognized that companies figured out that the true value for them did not

lie in having everyone look and act the same.

Over time, I’ve come to understand the profound impact of my experi-

ences in Germany, growing up in Mississippi, and traversing the profes-

sional world, and translated it into three key principles in my life and

career—three things I wish I could have told myself earlier as a young

person entering the working world:

1. Do not be afraid of what you do not know. Every day, I had to men-

tally prepare for any number of reactions from others, but that did

not keep me from walking out the door and enjoying what

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106 PASSION AND PURPOSE

Germany had to offer. Furthermore, I had the courage to make

bold moves on my own and not let fear hold me back. For exam-

ple, the decision to move from the South to New York and work in

investment banking after college was considered a big risk. I dared

to be the first in my circle of friends and family to embark out of

state to work without any nearby support. My great-grandparents

long ago made the decision not to migrate the family up North for

industrial jobs in the early 1900s and took pride in establishing

themselves as pillars in the local community (through teaching

and preaching), yet I decided to seemingly break away from my

Southern roots. There was an inherent fear that anything could

happen given the perceived corrupting influences of the big city.

But there also must have been a strand of wanderlust in my genes,

because one of my great aunts ventured to California to pursue

her dream to dance and act. She somehow made it despite the

challenges of her day. How would I know whether I could be

successful at my venture if I didn’t try?

That does not mean that I do not get a queasy feeling every

time I decide to shift directions. But I close my eyes, take a deep

breath, remember that the feeling will pass (eventually), and

then make the first step. No matter where I end up, the journey

has always been worth it and has made me more comfortable

with accepting what I do not know in order to continually move

forward.

2. Look for ways to bridge the gaps. To bridge the gaps between peo-

ple you have to understand where there are gaps and why. Obvi-

ous differences such as race, gender, and age are easier to

address given various levels of “diversity training” offered today,

but other cultural influences that are often not easily discernible

offhand also shape a person’s views. Opposing beliefs or mind-

sets tend to emerge through casual conversations and informal

networking. Gaining an awareness of those differences equips

you with areas to focus on in order to better relate to colleagues.

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People 107

I realize that human nature allows us to make assumptions

about others when we do not know or understand enough about

them. I was perceived as a potential threat by some in Germany

because my skin color was different. However, there was almost

immediate acceptance if my onlookers discovered I was an Ameri-

can. In fact, I had more in common with them than they would

ever have thought. That also translates into the workplace, where

far too often I have been the youngest, the only person of color,

the only female—or all three.

There are, however, commonalities underneath the surface of

those obvious differences. It is too easy to get distracted if you

become stuck focusing on what separates you from others versus

what connects you. I have understood the value of leveraging the

unique skills, talents, and perspectives each person contributes

to a team. Having a diverse workplace requires a comprehensive

understanding of all facets of an individual to truly embrace the

new diversity that transcends generations and a demographic

checklist.

3. Do not forget to pay it forward. Exposure to completely different

environments and social issues has had a transformative impact

on me. I grew the courage, confidence, and resolve to make

decisions and test uncharted waters personally and profession-

ally. Without that experience, I probably would have still suc-

ceeded in my endeavors but remained in the South, in my

comfort zone.

I feel it is my responsibility to encourage others by helping

them recognize that they cannot grow unless they realize they

don’t have to fit in any predefined box. I am an advocate for study-

abroad programs because of the immense opportunities they offer

to expand one’s horizons. It opened doors for me that made me a

more complete person and deepened the core beliefs and values

that make me who I am—regardless of the country, the culture, or

boardroom I occupy.

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108 PASSION AND PURPOSE

And now that I manage people—primarily those under-thirties who

are rising leaders in business—I’ve developed a few rules of thumb for

helping them succeed as well:

1. Reevaluate how well you know your colleagues and managers. Learn

about each team member individually and their interests versus

assuming certain stereotypes or gross generalizations. With the

proliferation of information on the Internet and social networking,

you can easily find out more about others informally and share ex-

periences by joining and using the sites yourself.

2. Be open to other viewpoints, and expect to be surprised. Even

though you won’t always agree with a different perspective, you

can often learn a lot just by listening to alternative approaches to

situations. It is easy to think you have “the answer,” but life en-

counters teach us there is more than one solution. Many paths

can lead to the same destination. Given an appreciation for his-

tory and the experiences of others, you do not always have to

reinvent the answer when something has been proven effective in

the past.

3. Understand that although change is inevitable, not everyone adapts at

the same speed. With the evolution of virtual workplaces, there

are new ways of communicating and working together. These

methods are effective only if everyone uses and understands

them. It is just as important to have an awareness about the im-

pact change has on others on your team as it is to understand the

change itself. How you respond and help others adapt will demon-

strate your capabilities as a leader. And understanding a person’s

heritage or background can be essential to a deeper understanding

of the ways they can understand and adapt to change.

Since my parents first entered the workplace, I have noticed changes

that allow me to be bolder with who I am and what I expect from others.

Blatant discrimination is not tolerated today. My generation grew up in a

fully integrated society and benefited from diverse experiences. I can

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People 109

easily reference many successful role models in business and politics

with nontraditional backgrounds. Companies have taken steps to teach

employees about diversity and how to handle sensitive situations. They

recognize in this age that you cannot mask who you truly are and maxi-

mize your productivity at work. Self-awareness and cultural acceptance

are critical elements of feeling confident with yourself and treating others

with respect.

As business professionals in the twenty-first century, we should recog-

nize that the new diversity encompasses a breadth of attributes not con-

strained by race, gender, and other stereotypical factors. It requires first

embracing and celebrating the essence of who you are before you can ap-

preciate what others bring to the table.

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110 PASSION AND PURPOSE

Diversity Day Whole People, Whole Organizations, and a Whole New Approach to Diversity

JOSH BRONSTEIN has been a human capital consultant since 2005,

specializing in talent and change management strategies. Josh

holds an MBA from Harvard Business School and a bachelor of

science in industrial and labor relations from Cornell University.

He is passionate about helping people bring more of themselves

to work.

In the first season of the hit television show The Office, an episode about

“Diversity Day” pokes fun at a tacky diversity training session that

teaches employees to become HEROs through Honesty, Empathy, Respect, and Open minds. The comedic routine highlights the skeptical views most employees have toward an outdated view of “diversity.”

When many of us think about diversity, we think about these silly, over-

dramatic sensitivity training sessions that have been the subject of such

ridicule. We think about nondiscrimination policies that exist on paper

but allow the highest-revenue producers to opt out. We think about affir-

mative action and hiring a greater number of underrepresented minorities

or women. Or perhaps we think about the most tangibly strategic efforts

in which organizations mirror customer or client segments, such as His-

panic or LGBT (lesbian/gay/bisexual/transgender) marketing efforts, to

increase revenues. Most people think about these manifestations of diver-

sity because most leaders who came before us viewed workplace diversity

in the context of affirmative action, litigation avoidance, or access to di-

verse markets. But these views of diversity are evolving dramatically.

In conversations with my peers, I’ve realized that our generation be-

lieves that such diversity practices are simply table stakes. Of course,

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People 111

it’s still important to ensure employers aren’t discriminating and that

individuals are sensitive to the way they treat each other at work.

Such practices are necessary, but not sufficient. Our generation

wants to lead companies that willingly celebrate a broader definition

of diversity in order to galvanize top talent who can deliver better

business results.

Value of a Broader View of Diversity

I was twenty-five years old and a relatively new employee. After dis-

cussing some time off I was requesting for an upcoming family vacation

with “significant others,” my manager asked me in a crowded, open team

room, “How long have you been with your girlfriend?” I could play the

pronoun game and say “I’ve been with her for two years.” Or I could tell

the whole truth. I grabbed a piece of paper and quickly scribbled

“boyfriend—2 years.” “Oh, cool,” she responded.

In hindsight, I made the right decision. The energy required to hide

my identity from those who I assumed wouldn’t like it distracted me

from the work that I was being paid to do. Since then, being openly gay

has only helped me professionally—I’ve benefited from a stronger sense

of community and a professional network that spans functional silos,

more confidence when speaking with senior leaders, and the comfort of

always being able to use accurate pronouns.

As a human capital consultant and former leader of the LGBT student

association at HBS, I’ve spoken with dozens of general managers, HR lead-

ers, and peers about the role of diversity in a wide cross-section of compa-

nies. There are tremendous variations in how diversity and inclusion

efforts play out across companies and geographies, but in all of my discus-

sions on the subject my consistent observation has been that diversity is no

longer defined by typical indicators such as gender, race, or religion. I’ve

realized it takes a broader view of diversity to foster an environment in

which everyone feels comfortable telling the whole truth, scribbling—or

maybe even outwardly discussing—their diverse backgrounds, experiences,

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112 PASSION AND PURPOSE

and individual situations, even if those attributes don’t fit neatly into the

categories previously associated with “diversity.”

Employers today realize that to remain competitive, they must at-

tract, motivate, and retain individuals from a wider range of experi-

ences, and look for diverse geographic origins, socioeconomic

backgrounds, academic experiences, personality types, sexual orienta-

tions, generational views, ways of thinking (left brain/right brain, e.g.),

and styles of communication. They also realize that by removing con-

straints that may have deterred applicants in the past, the broadest view

of diversity will attract the largest talent pool from which to find the

best and brightest future leaders.

By fostering discussions out of differences, we can all challenge the

status quo and help our colleagues think outside of the traditional con-

straints placed on them. Doing so also develops increased intellectual

rigor through vigorous debate and a well-rounded ethical compass by

avoiding groupthink. The companies that can extend this broader view

outside of the United States can also enable enhanced global mobility

among diverse high performers.

And let’s not forget the human element—a big component of the

value proposition for diversity investments and the broader view of diver-

sity, is that it is simply the right thing to do. How hard was it, really, for

my manager described above to react supportively? In today’s business

world, collegial values and supportive, strong leadership go a long way.

Redefining Professionalism

To make this new view of diversity work, our generation is prepared to

bring our whole selves to work, being open in the workplace about differ-

ences in our backgrounds and feeling comfortable enough to resist the

temptation to force-fit ourselves into a preset definition of a stereotypical

“professional.” This isn’t easy or always comfortable for employees or

managers, but true professionalism requires incorporating differences in

an inclusive way—not hiding them.

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People 113

In the past, decision-making authority was limited to a few suit-wear-

ing executives, usually white straight males from prestigious back-

grounds. As a result, some employees have been guided to act more

“masculine,” more “straight,” or even more “white.” Some managers have

historically hidden these suggestions under the guise of encouraging em-

ployees to act more “professionally.” But business is inherently personal,

not just professional. Our relationships drive our success. And our indi-

vidualism drives our relationships.

Now more than ever, work and life have converged. With ever-longer

workdays and technology—like Facebook and Twitter—that puts us “al-

ways on,” we are forced to discuss our work-life balance needs with our

managers, and we encourage our employees to do the same with us.

Avoiding the subject of a same-sex partner, a child at home, or one’s in-

volvement in certain religious activities takes valuable energy away from

the work at hand. It can also be considered untruthful.

Rather than fight this convergence between work and life and calling

it “unprofessional,” as many of our predecessors did, take the opportunity

to discuss and embrace personal differences in your professional life.

Those distinct qualities that make up your identity, beliefs, and situa-

tional characteristics arm you with a very unique perspective from which

to view business challenges—and hopefully arrive at less traditional and

more value-adding solutions. Lead by example—telling the whole truth

about who you are—and encourage your employees to do the same.

Authentic Leadership

As the LGBT Student Association’s liaison to admissions, one of my pri-

mary tasks was to organize an LGBT open house for prospective students.

I knew that the attendees were in for a real treat when Frances Frei—one

of the most remarkable, inspirational individuals I’ve ever met—agreed to

deliver the faculty address. As the first openly gay tenured HBS faculty

member, Frances spoke about LGBT life at HBS, as well as the academic

experience, the section experience, and other subjects. But when the

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114 PASSION AND PURPOSE

million-dollar question came up—should you be “out” in your appli-

cation—she brought it back to the school’s mission: educating leaders

who make a difference in the world. Leadership, Frei has repeatedly ar-

gued, fundamentally requires authenticity. And authenticity is tough to

demonstrate when you’ve buried the truth deep in the closet.

My call to action for our generation is simple: be authentic. That

means bringing your whole self to work, not just those characteristics

that you think your employer wants to see. Because as Frances Frei

taught me as a teacher and a mentor, being true to yourself and your col-

leagues will enable you to lead more effectively.

Generation Why

A defining characteristic of our generation is that we want to be recog-

nized as individuals—not anonymous cogs forced to think, act, and dress

in the same way.

We see Steve Jobs dress in jeans and a black turtleneck and we won-

der why we can’t wear an outfit to work that reflects something about our

individualism. We saw the meteoric rise of Sarah Palin, embracing her

status as a “hockey mom” and articulating the value such experiences

would add to her leadership, and wonder why we can’t do the same. For

the first time in history, our generation has seen countless examples of

very successful leaders succeed because of their differences, rather than

in spite of them.

We also believe that anyone who can address a business challenge in

a respectful, intellectual, and honest way is acting “professionally,”

even if it means disrespecting the traditional hierarchy. As a part of this

new view of diversity, therefore, organizations must flatten. Young lead-

ers are notorious for impatience. As such, we’re empathetic to junior

employees who don’t want to wait until they reach the top of the corpo-

rate ladder to contribute their unique ideas; we didn’t want our ideas to

be held back by our age, and we don’t expect to hold back those who

come after us.

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People 115

Most of us also realize that with the acceleration of technology, some of

our knowledge will be outdated by the time we reach the c-suite. For ex-

ample, it was just a few years ago that texting and social networking were

exclusively for social use, making it highly inappropriate for a young em-

ployee to text his boss or add her as a friend on Facebook. Today, execu-

tives at all levels use text messages and social media to communicate with

us. We realize that trends in communication styles must evolve. Based on

these experiences, our generation will be even more open to diverse com-

munication styles as they emerge in the years ahead, no matter how for-

eign they may seem to us by the time we’re middle-aged executives.

As the next generation—“Z” or “I”—enters the workforce, we want to

engage them early. Organizational flattening is a critical component of

generational diversity that will enable us to take full advantage of the

youngest and most creative talent pools. We understand the need to do

so because we lived through the greatest technological advancement in

modern corporate history, and we saw how some of the most successful

companies were those who kept their youngest talent relevant.

Managing Differences

But all of this doesn’t mean that we should be encouraging everyone to

conform to the new definition of nonconformity. For example, Steve Jobs

can wear his typical jeans and black turtleneck outfit, but if everyone had

to do the same to conform to Apple “culture,” employees wouldn’t be

bringing their whole selves to work. If a single woman is surrounded by

working mothers and made to feel like an outsider for not having a child

at home, then the benefits of bringing her whole self to work are negated.

If an LGBT-friendly culture becomes so LGBT focused that a straight

employee feels uncomfortable bringing his whole self to work, the orga-

nization will have a serious talent problem.

The new view of diversity requires a delicate balance that enables

employees of all talents to bring their whole selves to work and to

acknowledge—and work through—the inevitable conflicts that might

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116 PASSION AND PURPOSE

arise from doing so. The moment an employee feels uncomfortable

bringing his whole self to work because others are doing the same is the

moment the leader must interject to regain balance. Without such lead-

ership, the business case for this new view of diversity falls apart.

What Can I Do?

As a young leader, there are a number of steps you can take to be on the

forefront of the next wave of diversity strategies. First and foremost, lead

by example. Bring your whole self to work. Talk about your family—

traditional or nontraditional. Bring your background and experiences—

traditional or nontraditional—to the conference room table. Your

authenticity will be contagious.

Second, articulate to senior leaders how differences drive success. Re-

fresh the business case for your company’s diversity investments to focus

on bringing the most varied views to the table to foster innovation—

which is forward thinking— rather than being obliged to find employees

who fill in boxes on your diversity checklist—which takes your organiza-

tion a step back. As a hiring manager, bring this view to life. Hire truly

diverse employees with unique backgrounds and perspectives that will

help you grow your business, not just those individuals who will help you

to meet your diversity targets.

Third, take ownership over fighting the hierarchy. Diverse ideas flow

best when there aren’t consequences for sharing them, and hierarchies

inherently create such consequences. Plus, the youngest talented em-

ployees are also the least influenced by “the way things have always been

done” and often have some of the most diverse perspectives. This isn’t

easy: it takes young leaders to articulate this strategy and cooperative,

secure senior leaders to facilitate it. Make the case and push hard.

Fourth, embrace a variety of communication styles and mediums.

Organizational communication mechanisms evolve. The more you use

emerging technologies for business communications and spread such

trends to your peers, the more responsive your organization might be.

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People 117

Beyond technology, a broad view of diversity takes a range of information

processing styles into account when communicating key messages. The

most creative and varied styles of communication, rather than the loud-

est, cut through the information clutter within organizations and reach a

variety of people who don’t all learn and interpret information the same

way; therefore, push your organization to vary communication styles and

mediums. At the very least, do so with your own communications.

Finally, reward individuals on your team for bringing their unique per-

spectives to the table. A few words of praise for having the courage to talk

about a relevant personal situation or experience in a meeting can go a long

way—and the positive impact can spread throughout the organization.

The business case for expansive diversity is gaining strength—gone are

the days when companies hire a few more underrepresented minorities,

hold a “Diversity Day,” and call themselves “diverse.” A diverse workforce

of the future will be an innovation machine. Such an organization will be

armed with individuals anxious to share their unique experiences, be-

liefs, and backgrounds to create value.

Help your company stay relevant by redefining its view of diversity to

create a truly inclusive culture, and ensure this culture permeates your

operations across geographies. Doing so will motivate existing employees

by enabling them to bring their whole selves to work no matter where in

the world they are, and will attract the best and brightest new talent who

want to do the same. As a young leader, it starts with you.

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118 PASSION AND PURPOSE

Women and the Workplace

After graduating from Wellesley College, TASNEEM DOHADWALA

joined an equity sales strategy team at Lehman Brothers. She left to

join the Nooril-Iman Foundation, where she executed a program of

economic self-sustainment in Myanmar and construction of a med-

ical clinic in Yemen. After graduating HBS in 2009, she cofounded

Excelestar Ventures. She reflects on the evolving roles and expec-

tations of women in business.

In my first year at Lehman a respected and successful female senior

manager reprimanded my male manager in a meeting. As we were leav-

ing the meeting he told me, “I like my women as I like my coffee—with

milk and sugar.”

I responded, “But she gets things done.” This woman, like so many

others in similar positions, needed to maintain a firm approach, but often

got stereotyped and ridiculed in the process.

There’s little doubt that women now have greater access to the

upper echelons of the business world than they did fifty, thirty, or even

twenty years ago. The fact that I could respond to my manager’s com-

ment without any tangible repercussion is evidence of that advance;

but the fact that he even made the comment is a microcosm of the

work that remains to be done. Access to the business world for female

professionals has too often hinged on conforming to the expectations of

male colleagues and managers. In some cases, male counterparts ex-

pect women to remain feminine and not be one of the guys. In other

situations, men expect their female colleagues to conform and be one of

the guys. It has been the woman’s job to figure out what her colleagues

and managers are expecting, consciously or subconsciously, and project

that as her personality. Regardless of which bias exists, it is almost

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People 119

impossible for a female professional to receive the same level of “broth-

erly” inclusion.

Further, because of the current constraints inherent in today’s busi-

ness world, women are often compelled to choose between work and

family more explicitly than men are. They are not rewarded for efficiently

balancing both. As Elizabeth Gudrais noted in the February 2010 issue

of Harvard Magazine, “Women have undoubtedly made gains in terms of

access to business careers . . . But in terms of being able to choose ca-

reers they want within those fields, as opposed to having to abandon pro-

fessional goals for the sake of family, women still have far to go.”10 In

many cases, women discover that trying to balance work and family re-

sults in a muted professional life. When a woman’s scale tips in favor of

work, people often assume that work is her only priority. As a result,

many women choose family. A survey of 6,500 Harvard and Radcliffe

graduates revealed that only 30 percent of female MBAs worked full-

time, year-round and had children, while 45 percent of MDs did.11

Currently, many organizations accommodate the specific circum-

stances of female employees. Usually, this involves flexible work arrange-

ments, maternity leave, and day care facilities. Unfortunately, these are

peripheral solutions to the lack of gender diversity in businesses, espe-

cially at the top. It’s incumbent upon the next generation of female busi-

ness leaders to forge their own rules based on a female-centric value

system. Only after the rules of business are rebuilt to incorporate such a

value system will businesses truly be able to harness the talent of all

their employees. These values involve

• Rejecting the false choice between family and professional

success

• Breaking down artificially forced gender roles

• Changing how women view themselves in the workplace

These are difficult issues to discuss because they question deeply held

assumptions about the role of women, the nature of meritocracy, and

how we reward people in our organizations. Turning conversation into

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120 PASSION AND PURPOSE

action is a two-way street. Not only must organizations understand what

young female professionals hold dear in order to truly capture the value

they bring, but women themselves must also strive to better articulate

and champion their values in the workplace.

First, the next generation of female leaders must break down the false

choice between career and family. Like it or not, for biological and social

reasons, women are often positioned as primary caregivers in their fami-

lies; and that position often involves trading success at work for stability at

home. The next generation of women and employers must work to erode

this trade-off. This starts with openness. Companies should become more

proactive about making female managers available to female candidates to

discuss openly how female managers balance family and professional suc-

cess within the firm. Female candidates must become more comfortable

raising these questions explicitly. When I interviewed with the CEO of

Care.com, Sheila Marcelo, she described several instances of Care.com

employees proactively balancing work and family. For example, she told me

that the CTO worked from Greece and the head of business development

took every Friday off. It seemed to me that her willingness to allow em-

ployees to create their own work experience enhanced their commitment,

work ethic, and productivity. Unfortunately, in the current context, female

candidates often do this more covertly, asking other women who work in

the company about the “rules” around balancing family and work. Candi-

dates shy away from asking about what they can expect of the quality of

their personal life because they feel that they will be adversely judged.

Companies can start to implement this openness by instructing HR pro-

fessionals and managers who conduct interviews to describe the various

degrees of flexibility available to the candidate and directly ask the candi-

date what they need to achieve work-life balance.

They of course shouldn’t be adversely impacted for prioritizing both

the personal and the professional. Rather, women should be rewarded

for successfully balancing both family and work (as, incidentally, should

men). Women should feel free to bring their “authentic” selves to work—

whether that concept of self involves family or not—and employers

should create space for those discussions.

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People 121

Second, in addition to valuing women’s ability to nurture both work

and family, organizations must make efforts to break down artificially

forced gender roles and create organizational sponsorship for women.

Often, these are projected by senior management—where the ranks of

women are still remarkably thin. Whether a manager’s female subordi-

nate assimilates seamlessly with her male counterparts or asserts her

femininity is irrelevant. The matter of significance is that she is able to

have her own personality. The proximity afforded to “one of the boys”

should also be offered to her. Although women and men are currently

both successfully mentored, climbing the ladder demands more than

mentorship; it requires sponsorship. This issue was covered extensively

in a Harvard Business Review article whose title stated the problem:

“Why Men Still Get More Promotions Than Women”:

All mentoring is not created equal, we discovered. There is a special

kind of relationship—called sponsorship—in which the mentor goes

beyond giving feedback and advice and uses his or her influence with

senior executives to advocate for the mentee. Our interviews and

surveys alike suggest that high-potential women are overmentored

and undersponsored relative to their male peers—and that they are

not advancing in their organizations. Furthermore, without sponsor-

ship, women not only are less likely than men to be appointed to top

roles but may also be more reluctant to go for them.12

Embracing and utilizing sponsorship is especially important early in a

woman’s career. A recent study demonstrated that nearly a quarter of

women leave their first job because of a difficult manager, while only 16

percent of men do.13 Because many managers are men, there seems to

be an almost subconscious tilt toward being less of a sponsor or “cham-

pion” for young female employees—and, while other factors could be at

play, this may have a lot to do with why women feel so frustrated with

their managers early in their careers. Companies interested in greater

and deeper female participation should address this concern head-on,

training managers on what it means to be a sponsor, and making sure

that women receive such sponsorship the day they walk in the door.

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122 PASSION AND PURPOSE

Finally, young women in business must actively participate in the

process of rebuilding existing workplace rules, as described earlier. They

must reflect and be honest about trade-offs they are willing to make in

both their personal and professional lives. This can be hard, in light of

the scarcity of jobs. I was interviewing in 2009, an abysmal year for most

job seekers. I decided to put together a list of requirements that could

help create balance between work and family, and as a result, signifi-

cantly narrowed my list of potential job opportunities. I did not want a

job that demanded never-ending hours, required travel more than 50

percent of the time, and demanded tremendous after hours networking.

I looked for a job where some employees were already experimenting

with work-time flexibilities and some work could be done remotely and

independently, rather than being dependent on going to the office.

Though constraining, I was candid with myself and what I valued. I was

fairly assertive and conscious of trying to be open with my employers.

However, I was not idealistic, as I knew there would be many times

when work would demand more from me than home would. Those

would be the times when I could not be home in time to read to my son

before bedtime. I was certain that there would be many business needs

that could only be met in person, demanding travel. Fundamentally,

work and family require trade-offs. And as long as both dimensions of my

life made room for each other, both would thrive.

Despite what I thought was a sense of realism, when I was applying

for jobs I still found myself trying to conceal my pregnancy. I bought

suits specifically tailored to hiding my bump. Rather than use my ability

to balance both my professional aspirations and motherhood as a testi-

mony to my drive, dedication, and ambition, I suppressed it. In retro-

spect, I was disappointed in my approach. Only when we are

comfortable with ourselves and what we value will others begin to em-

brace our very real needs. If we conceal our personalities and the multi-

ple facets of our lives or conform to a dysfunctional status quo,

organizations will never realize that changes must be made. I felt that

being open about my pregnancy would immediately diminish my

chances of winning the opportunity as it would give the interviewer the

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People 123

impression that work would always suffer as second to family. I believe if

we eliminate the false choice between work and family, women will no

longer feel the apprehension I did.

To truly rebuild the current system of values and see a meaningful

change in the current workplace ethos, more women in this generation

need to be assertive about what they need at work. Women need to em-

phasize that motherhood does not make work a lesser priority. Rather, fe-

male business professionals aim for both dimensions of their life to

excel. Managers of companies that truly embrace work-life balance, such

as Care.com, and allow employees to create their own workplace experi-

ence should speak out about what they are doing and the benefits it

brings. Some practical advice for managers of companies that still lag in

work-life programs: begin talking to your subordinates about the trade-

offs in your life. This should encourage them to start sharing with you.

Ask those team members who have families how they manage, especially

when times get too hard. If you, as a manager, speak to them, the fear of

lack of acceptance will slowly dissipate. Not only encourage team mem-

bers with families to experiment with programs that are being offered,

but try them yourself and then talk about it. The employees who excel at

both family and work should be publicly celebrated. Ironically, many

business professionals are already successfully balancing work and

family, but we do not hear about it because it seems that no one cares

to listen.

If we want to see more gender-balanced executive suites, if we want

to see greater freedom for men and women to embrace dual roles as pro-

fessionals and heads of families, and if we want to see a more inclusive

set of rules that offer female professionals to be their authentic, whole

selves at work, we must take active responsibility for building on the suc-

cesses of the past several decades. Rebuilding workplace rules around

the life realities of both men and women is the challenge for the new

generation of leaders and professionals.

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124 PASSION AND PURPOSE

Joyful on the Job A Generation Pursuing Happiness at Work

BENJAMIN SCHUMACHER is from Lexington, Kentucky, and studied

psychology at Washington University in St. Louis. Ben has worked

in management consulting for Deloitte Consulting, McKinsey &

Company, and Instituto Exclusivo in La Paz, Bolivia. He holds an

MBA from Harvard Business School and finds happiness working

with education-oriented nonprofits.

The unyielding sun melted into the horizon, finally relenting after a swel-

tering, sweaty day of work in the horse farms of central Kentucky. My

hands blistered and my throat parched, I let my shovel fall to the dirt and

knelt under the shade of an ancient sycamore next to my fellow irrigation

installation crew members, Ariel, Manuel, and Abenamar. Our fifth, old-

est, and most experienced member—“Tio” (“Uncle”)—walked to the

garage to input the final settings in the irrigation system controller. The

evening was closing in on us, and we had scrambled to successfully fin-

ish installing a residential sprinkler system before it was too dark to work

any longer. Digging trenches, laying pipe, and setting sprinkler heads for

twelve hours straight is no small exertion, but there’s a special gratifica-

tion when a team can point directly to the fruit of its labors. From the

garage, Tio flipped a switch, and as the system sprang to life with rotors

blasting across the lawn and smaller heads gently misting the gardens,

the five of us exchanged grins of satisfaction. We were happy.

This experience at Bluegrass Irrigation, my family’s business, is one of

the earliest that got me thinking about happiness on the job. How was

it that my parents, entrepreneurs who had no formal business back-

ground or training, could create an environment where Tio, Ariel,

Manuel, Abenamar, and I could find happiness, but the company’s client

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People 125

who would fly in on his helicopter to monitor our progress seemed so

perpetually unhappy? Or, if we are all in agreement that we’d like our

bosses, coworkers, and subordinates to be happy (not to mention our-

selves), why is happiness so often elusive in the workplace?

I believe it is not the idea of promoting happiness in the workplace

that presents conflict to most people. It is the idea of trade-offs: when to

prioritize others’ happiness over yours or future happiness over immedi-

ate pleasure. In a managerial context, leaders of organizations must make

these decisions frequently: how often an employee is allowed to work

from home or how much time off to write into company policy, for exam-

ple. Given the ubiquity of structures in the workplace—cubicles, where

to sit, what to wear, scheduled hours in the office, scheduled years to the

next rung on the corporate ladder, and so on—it is no wonder that a

mental trade-off is manifested: how much time and happiness do I de-

vote to the success of my company and how much do I keep to myself?

But is this traditional trade-off between employee happiness, manage-

rial happiness, and a company’s financial success as robust as it is per-

ceived to be? I had the chance to explore this question inadvertently

during the summer of 2009 in La Paz, Bolivia, where I worked at a local

language institute, Instituto Exclusivo. After getting over the initial shock

of the altitude (12,000 feet above sea level!) and settling into the hustle

and bustle of La Paz’s Sopocachi district, the institute tasked me with

improving student retention rates. Fresh off two and a half years of oper-

ations consulting, I was eager to put my skill set to work. I honed in on

the student-teacher relationship and observed several suboptimal prac-

tices: teachers weren’t coming to lessons on time, new technologies

made available by the institute were not being leveraged for lessons, and

the retention rate after students’ first lessons was particularly low. Like

any eager consultant, I immediately set to work devising a performance-

based incentive system meant to tweak specific teacher behaviors.

Bonuses would be given to teachers who were punctual, who imple-

mented technology into lessons, and who consistently kept first-time

students coming back for more. However, while getting to know the

teachers more personally during my time at the institute, I began to

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observe an intriguing relationship: teachers who were happy working

there, such as three I met—Patricia, Rudy, and Helen—tended to be the

top performers. Their students sang their praises, they eagerly adopted

new technologies, and they contributed disproportionately to the prof-

itability of the institute. The unhappy teachers tended to be more tran-

sient employees whose students consistently complained about their

lack of preparedness and commitment, and who disproportionately con-

tributed to the costs of the institute in the form of hiring costs, lost stu-

dents, and unquantifiable detriment to the institute’s brand.

Upon making this observation, I took the logic chain one step further:

if good performance is associated with happiness, what was intrinsic to

the institute that made these employees happy? In some cases, it was the

opportunity for teachers to arrange their lessons according to their own

busy schedules. Patricia worked in a chemist’s lab during the day and

preferred giving lessons early in the morning or later in the evening. In

Rudy’s case, it was the camaraderie of sporting activities such as futsal

(five against five soccer with a smaller, less bouncy ball) that were orga-

nized through the institute; and for teachers such as Helen (who migrated

from the Netherlands to La Paz in 2006), the institute’s common room

was clearly the teachers’ primary space for socializing throughout the

week with friends. The point is that whether intentional or not, certain

practices of the institute contribute to employee happiness by integrating

the “whole person” into the organization, and this, in turn, appears to con-

tribute to greater productivity in the institute’s employees as well.

Although the empirical correlation between employee happiness and

productivity is still being researched, job satisfaction has been shown to

be positively linked to productivity.14 HBS’s own Teresa Amabile has

found that happiness in the workplace provokes greater creativity.15 To

me, it also seems intuitively true that I work harder when I’m happy. We

all can relate to putting an “extra 10 percent” into an enjoyable activity or

toward a commitment to someone we respect (the flipside, of course,

appears equally probable: the resentment I feel toward an unsavory task

is compounded immeasurably if I’m generally unhappy with my work en-

vironment). The question, then, is what can corporate leaders do to

126 PASSION AND PURPOSE

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increase happiness within their organizations, and, notably, what are

some leading-edge companies already doing?

The answers come in various forms and are certainly not as straight-

forward as a bigger bonus or more vacation time. I believe that for my

generation, the notion of the “whole person” is central to finding happi-

ness in the workplace, and thereby giving our best efforts toward the

objectives of our employers. A “whole person” is one who feels comfort-

able bringing his or her authentic self to work each day, especially in a

technological world that breaks down barriers between the professional

and the personal. A “whole person” is able to integrate the rigorous de-

mands of his job with the rigorous demands of his life—and work more

passionately and purposefully as a result. There are a number of tools

managers can employ, and young leaders should demand to promote the

concept of the “whole person,” thus creating a happier, more productive

workspace.

First, we should attempt to formalize flexibility into how employees

perform their work. This is all the more important to a generation of mar-

ital partners who both hold jobs outside the home. A former employer of

mine, Deloitte Consulting LLP, has chosen to implement what its cre-

ators call “Mass Career Customization” (MCC). One way MCC plays

out in practice is to allow employees to “dial up” or “dial down” certain

aspects of their careers. This could include the amount of time spent

traveling, the location from which one works, or something as funda-

mental as hours worked per week. I have a friend who is employed by

the Washington, D.C., office, lives in New York, and currently has “di-

aled down” to half-time work in order to pursue her passions as an au-

thor—all with encouragement from top management. Deloitte has

bought into the idea that the retention of top talent is worth keeping its

top talent happy.16

Recently, this trend toward career flexibility has even manifested itself

in the public sector. The Human Services and Public Health Depart-

ment of Hennepin County in Minneapolis has implemented its own

version of MCC, known as ROWE or “results-only work environment.”

Defining features of ROWE include location flexibility, clearly defining

People 127

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128 PASSION AND PURPOSE

desired results, and, most provocatively, completely optional meetings

(the idea being if the purpose of the meeting is worthwhile, it will be at-

tended). Custodians of the program have cited tremendous productivity

gains in activities such as processing incoming mail.17

Second, we should seek to provide an outlet for employees to make a

positive impact on people they care about, thus bolstering the traditional

employee-employer relationship to a level that yields deeper levels of

happiness and purpose. In his book Just Enough: Tools for Creating Suc-

cess in Your Work and Life, HBS professor Howard Stevenson refers to

this as “significance” and defines it as a core component to “enduring

success” in life. I was fortunate to work with a Boston-based nonprofit

called Young Entrepreneurs Alliance (YEA) that offers this type of pro-

gram to its corporate sponsors, and it is essential to their value proposi-

tion. YEA is a business-ownership program that seeks to alter the

trajectory of at-risk teens. As part of its corporate sponsorship program

with companies like Staples, YEA receives cash donations; but it also

organizes structured learning sessions where Staples employees create

training programs for the participating at-risk teens. This has obvious

benefits for the teens, but for Staples, it also happens to boost employee

morale, promote teamwork, and even serve as a training ground for its

workforce. I believe this volunteerism in a team-based setting—sup-

ported by management—can be a powerful force in the fostering of

general employee happiness through performing “significant” work.

Third, we, as rising leaders, should consider organizing a physical fitness

program. As I discovered in my undergraduate research, exercise is con-

nected with happiness—psychologists refer to it as “subjective well-

being”—because it burns cortisol (associated with anger or fear) and

produces endorphins (associated with euphoria).18 Evidenced by the

success of organic, sustainable foods, or even brands like Vitamin Water,

a substantial segment of our generation is putting fitness on a pedestal—

and I believe it behooves today’s executives to recognize this priority.

Some organizations are doing well on this front. Deloitte provides a health

and fitness subsidy, a monthly newsletter with healthy lifestyle tips, and

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People 129

annual flu shots to all firm members.19 Both Deloitte and another consul-

tancy, Bain & Company, host annual World Cup soccer events.20

Finally, while happiness is admittedly an abstract concept, this does

not diminish the importance of managing it. Since “that which gets

measured gets managed,” I suggest managers attempt to track compo-

nents of employee happiness over time—and address concerns directly

when they are voiced. One aspect that attracted me to McKinsey &

Company is that the firm measures happiness both on a consulting proj-

ect level and at a firm level across offices. On projects, a biweekly survey

is sent to each project member that gauges reactions to statements such

as “I am excited about my experience on this engagement,” “Our working

team functions well and there is an atmosphere of trust and mutual re-

spect,” and “Overall lifestyle is manageable on a sustained basis.” Man-

agers closely track survey results and adjust team dynamics accordingly.

At the enterprise level, firmwide surveys gauge relative happiness levels

at each office. It may not be a coincidence that the happiest region in the

firm is simultaneously one of the most profitable.

In retrospect, perhaps my parents were precocious in the design of our

family’s small irrigation business. Employees are paid a wage above market

rate that they send home to needy families, thus performing the “signifi-

cant” work of positively impacting those they care about; the job certainly

requires physical fitness, as I discovered by the sycamore tree long ago;

while sunlight hours aren’t very flexible in terms of work hours, at least

breaks and lunch schedules always are; and my parents have been success-

ful in establishing an informal culture of monitoring employee happiness

and actively addressing concerns. If the employees at Bluegrass Irrigation

can be happy, so can the employees at any organization, and I believe that

understanding, promoting, and measuring employee happiness will be

paramount in transforming the workplace for our generation.

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130 PASSION AND PURPOSE

People Leadership from Baghdad to Boston

SETH MOULTON graduated from Harvard College in 2001 and

served four tours as a Marine Corps infantry officer in Iraq, two as a

platoon commander and two as a special assistant to General

David Petraeus. In 2011, he graduated with a joint degree from Har-

vard Kennedy School and Harvard Business School. He is passion-

ate about service and bringing his experience in the Marines to

bear in the private sector.

Tom Brokaw, author of the iconic Greatest Generation, a tribute to the

men and women of our grandparents’ era who fought in World War II,

looked at a group of young Americans in 2003 and said, “This is the next

greatest generation.” But he wasn’t looking at a group of Harvard or

Princeton graduates, or at a group of business or technology leaders, or at

a championship sports team. He was looking at a battalion of soldiers in

Iraq. There he saw young Americans so dedicated to the ideal of service

that they were actually putting their lives on the line to serve. They didn’t

just speak of service, or believe in service—they were actually doing it.

I was one of them, serving in Iraq, and transitioning to the business

world hasn’t been easy. At twenty-three, I was intimately responsible for

the lives of forty young Americans, and also responsible for life-or-death

decisions affecting those we met on the streets of Iraq. Settling into a

classroom seat at Harvard in many respects felt boring, inconsequential,

and self-serving in comparison.

But it wasn’t as I expected. I thought I would return from five years

serving in the Marine Corps to a crowd of unappreciative classmates,

thankful that they were well ahead of me on the path to personal wealth.

Harvard, after all, didn’t even allow ROTC on its campus until recently.21

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But instead of receiving a cold shoulder, I was pleasantly surprised by the

respect the community showed my fellow veterans and me. Many of my

peers were even envious—not of the horrors I had seen in the war or of

the diminutive size of my bank account—but of the fact that I had expe-

rienced something so consequential early in life and that I learned some-

thing unique about leadership in the process. Every day I made decisions

that profoundly impacted the lives of young Americans, and of Iraqis.

Even the staunchest opponents of the Iraq War scarcely had the impact

on the lives of others that I did on the front lines. And those experiences

forged in me and in my fellow marines a sense of pride and camaraderie

in our work as well as an appreciation for the difference that individual

leaders can make.

So why give up that sense of purpose and service to head into a world

defined by profit-seeking and self-interest? Sometimes I have to step

back from the emotional pull of the war to remember that while, sadly,

fighting wars is critical to our national survival, it is not what America is

fundamentally about. America is a free country that thrives on the back-

bone of its free economy. It is a country built by individuals engaged in

free enterprise, and our economic history is by far more important than

our military history. I am proud to be a veteran of our country’s armed

forces, but I am anxious to be a part of this other fundamental part of

America as well. Business requires good leadership, just as the Marine

Corps does. And as I transition from the Marines to the private sector,

I hope that I’ll be able to take some of the lessons I learned in combat to

my colleagues in the boardroom—even as they teach me something

about what it takes to power an economy that keeps our country strong.

In the Marines, I learned that good leadership is about two funda-

mental things: accomplishing the mission and taking care of your men.

Accomplishing the mission is straightforward: it’s something every leader

needs to do, and America could not have built the great companies of the

twentieth century or won its battles overseas without business and mili-

tary leaders who knew how to get things done.

But the real key to success in leadership is doing it in a way that also

ensures the survival and success of the men and women who work for

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132 PASSION AND PURPOSE

you. Sometimes I think that much of our business community has for-

gotten this lesson—as Wall Street has become infamous for its excess,

companies have emphasized short-term results over long-term invest-

ment, and the gap between executives and labor has only increased.

For me, “taking care of your men” in wartime was simple when it was

just the forty young men in my platoon. But soon after the invasion,

I found myself leading not just a platoon of marine infantrymen but a

neighborhood of Iraqi men, women, and children. Suddenly, all eyes

turned to young Lieutenant Moulton when it came to solving local crime

and paying the police, restoring electricity, and explaining what the

Americans intended to do with the Iraqi Army we put out of a job. The

impossible diversity of the task was daunting.

Business leaders face a similar mandate when their influence extends

beyond their companies into their communities. At the big General Elec-

tric plant not far from where I grew up, good management requires not

only providing competitive wages and reliable health care for employees,

but also stewardship of the marshes and waterways that flow past the

plant. Indeed, it is leadership beyond your mandate, taking care of not

just your subordinates but your community, that often defines real suc-

cess. What would Rockefeller mean to us today if he had kept his money

to himself, or who would know the Kennedys if they simply enjoyed their

house on Cape Cod? Bill Gates is an obvious contemporary example,

somebody whose passing fame as this moment’s wealthiest person now

has the potential to become lasting fame for what he is doing to fight

world health problems. He has lived most of his life amassing a personal

fortune and bringing productivity to the workplace; now he is saving

thousands of lives. Businessmen and women would do well to remember

that whether through service, sacrifice, or simple philanthropy, most of

the greatest business leaders in history are remembered not for what

they earned, but for what they gave back.

Finally, there was a third leadership lesson I took from the Marine

Corps that perhaps wasn’t as important as the first two, but upon which

the success of the first two often depended. That was the importance of

exercising humility, and it was something I relearned countless times in

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People 133

the war. Faced with new challenges every day that I could not anticipate,

overconfidence was sure to lead to failure, so I had to listen a lot, learn

from both my most senior commanders and most junior men, and never

rest on past success. In my little neighborhood south of Baghdad just

after the invasion, my translator, a former officer in the enemy I had just

fought against, became my most trusted advisor. So many times when

Iraqis and Americans alike looked to me for answers, I turned to Aiyid. He

was a humble man himself, for despite being a proud colonel in the Iraqi

military, he drove up to me in a minivan—a man half his age and half his

rank, and his former enemy—to ask for a job and volunteer to help. The

humility we showed to each other was the foundation of whatever suc-

cess we had together in serving the people of that neighborhood, and it

has defined our friendship ever since. In a business world that has be-

come known by the hubris that led to scandals like those that brought

down Enron and WorldCom, as well as the recession of the last few years,

I have to believe a similar humility would serve our economy as well.

The challenge for me—for each of us—is to take what I have learned

through my own set of diverse experiences and use those lessons to be-

come a part of forging a bright future for our country, a future defined

not just by the profitability of our companies but by the role those com-

panies play in the welfare of those they serve. When America’s “greatest

generation” returned from World War II, they led the nation from the

home front into the greatest period of growth and prosperity the world

has ever seen. Today’s veterans of Iraq and Afghanistan stand alongside

veterans of Teach for America, the Peace Corps, and other civilian ser-

vice veterans as part of a much smaller minority in a country that values

service, but doesn’t always serve. I hope that this new generation of vet-

erans who bring their own diverse experiences to the business world can

have a positive influence on the American business that makes our coun-

try great, offering leadership that is guided not just by the prize of suc-

cess, but by the ideal of service.

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134 PASSION AND PURPOSE

INTERVIEW WITH . . .

Deb Henretta Group President, P&G Asia

Deb Henretta talks about the importance of purpose and diversity

at P&G, the defining characteristics of next-generation leaders, and

how businesses can best adapt to utilize their strengths.

How has the concept of diversity evolved at P&G? What are the biggest changes in the company’s approach to diversity?

While not always called diversity, P&G has been involved with diver-

sity since its founding days when the P&G founder James Gamble

supported education of U.S. minorities. Over time, it’s taken many

forms. Historically, the initial focus was on representation numbers

for several groups. In more recent years P&G is focusing not only on

diverse representation, but also inclusion so that every employee feels

valued and included, so that they can perform at their peak.

What are the challenges that you face in leading a multicultural P&G organization in Asia? What have you done to address these? What works and what doesn’t?

Having a multicultural organization is a strength. The fact that our

twenty-one thousand employees in Asia belong to sixty-one nationali-

ties is a clear advantage as we try and bring to life our purpose of

touching and improving more consumers’ lives in more parts of Asia

more completely. Today, we serve 2 billion Asian consumers across

forty-three markets, and this number is growing. It is critical that we

reflect this diversity among our employees to be able to serve our con-

sumers effectively. However, it is indeed important to institutionalize

systems and processes that harness the best of this diversity while en-

suring that we remain consistent with our global purpose, values, and

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People 135

principles. For this we have adopted an approach that we articulate as

“As common as possible; as different as needed.”

So while our success drivers, appraisals, and all key trainings are

standardized and globally deployed, we also focus on critical and

uniquely Asian capability needs. These are related to the effectiveness

of Asian leaders to lead the diverse, multicultural teams within Asia

and influence their global counterparts outside Asia.

More than any other part of the world, leaders in Asia have to con-

stantly adapt their leadership style to inspire and motivate each of the

diverse cultures and countries that comprise Asia. Using a single lead-

ership style will prove insufficient given the differences in culture,

motivations, rewards, and definitions of success in the different coun-

tries. Only leaders who can understand and adapt to these local cul-

tures will grow into truly successful pan-Asian leaders. At P&G, we

have established a multicultural program that equips our Asian leaders

with deep understanding of how cultures work in a business context

and, equally importantly, with skills to “style switch” as they interact

with employees from different cultural backgrounds.

What new forms of diversity are emerging in such a vibrant and fast-changing part of the world?

Asia is home to one of the youngest populations in the world. This has

led to a whole new demographic that we call Gen Y and define as

those under thirty years of age. In P&G Asia, every one in two employ-

ees is a Gen Y’er. Frankly, this changes many things. Gen Y employees

have very different attitudes compared to, say, my generation. I see

this shift having three clear characteristics, which in turn spur a chain

of effects at the organizational level:

1. Y-Not: Gen Y employees question status quo. They like challenges

and they will not accept a no simply because their manager tells

them so. In a way, this is great because it gets the more experi-

mental and innovative thoughts into the room and forces the or-

ganization to embrace change faster than it would have otherwise.

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136 PASSION AND PURPOSE

2. Y-Fi: The second impact of the rise of Gen Y as a demographic is

an increase in digital diversity. To them digital is not a skill that

they need to adopt. They are digital. Their immersion in Web 2.0

and technologies is seamless and holistic. This forces the larger

organization to speed up its own digital journey to being digital

native. In P&G, we have formalized reverse mentoring programs

where Gen Y employees induct older, more senior leaders into the

digital way of life.

3. Y-Go: Gen Y employees like mobility and flexibility. Nine to five

doesn’t work for them. That doesn’t mean they are any less pro-

ductive. In fact, they are used to being connected 24/7 and can

prove to be much more productive if you let them do it their way.

At P&G, we have programs like flextime and work from home that

try to accommodate this aspect of the Gen Y personality.

A lot of people are writing about the concept of “joy” or “happiness” at work. Do you think that thinking broadly about diversity can help people find more wholeness and happiness at work?

This goes back to the impact that Gen Y employees are having at the

workplace. Traditionally, we used to find that most of us have two

identities. One that we brought to work, and the other that we kept

outside. We find that Gen Y has an integrated identity that is consis-

tent between workplace, home, and society. For example, their con-

cern for the environment or social responsibility is not extraneous to

who they are as a marketing or a finance employee in the office. So

they not only want to make a difference themselves, they want to

know that the company they work for is also making a positive contri-

bution. Similarly, they expect to be able to spend adequate time culti-

vating the different sides of their personality and not be at the office

working late nights. So, they have clear expectations of work-life bal-

ance. We have tried to take all of these expectations to create a holis-

tic Employee Value Proposition (EVP) that goes much beyond the

traditional compensation and benefits approach. The P&G EVP,

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People 137

which was awarded the 2010 Asian Human Capital Award, consists of

six pillars, including such intangibles as “pride in company,” “relation-

ship with manager,” and “work-life effectiveness” in addition to the

more defined ones such as “fair and competitive reward” and “learning

and development.”

I believe that such an EVP builds in such expectations as joy and

happiness.

You see a lot of young leaders in your organization, and it’s arguably a more diverse generation than any in recent memory. But are there any blind spots that this generation has about diversity? What should they look out for?

I think the answer to that is balance. As I have said, generational

diversity is great because it forces us to embrace change faster than

we may have otherwise. However, it is important to hold on to the

good practices that we have arrived at today and be guided by time-

tested principles. For us, our purpose is that guide.

We have lived by it for 174 years—that’s nearly ten generations!

Our purpose is to touch and improve lives, now and for generations to

come. Our growth strategy today is inspired by this purpose: to im-

prove the lives of more consumers, in more parts of the world, more

completely. Today we serve over 4 billion consumers; our goal is to serve

5 billion over the next five years. That means we will have to serve all

types of consumers, in all parts of the world irrespective of what the

personal blind spots of a younger generation of employees may be.

What challenges remain for women in the workplace, and how is this changing over time? What has P&G done to address this?

Globally, issues such as the balance or integration of work and home

life continue to be a challenge not just for women, but for men as

well. We have put in place various programs for workplace flexibility

to help provide alternatives and choices for employees to alleviate the

challenge of managing the blend of their work and home life.

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138 PASSION AND PURPOSE

How do you see the future of diversity initiatives, inside and outside of P&G? What will a truly diverse organization look like twenty years from now?

For P&G, our principle-based purpose and approach to diversity will

continue, aiming to foster a culture of inclusion with respect for all in-

dividuals. We want to attract and retain diverse talent throughout the

organization, and support our employees by providing a flexible envi-

ronment that enables them to perform at their peak. We expect diver-

sity and inclusion to be effectively and sustainably integrated into

P&G’s DNA throughout our people processes and accountability sys-

tems as well as our external and internal partnerships. We recognize

that everyone is unique in their background, whether it be gender,

geography, physical challenges, or ethnicity. We want to touch the

lives of our employees one person at a time. Enabling our employees

to share their diverse skills, passions, and experiences will enable us

as a company to leverage their talent to the fullest and give us a com-

petitive advantage to deliver against our growth strategy and touch

more consumers’ lives, in more parts of the world, more completely.

Simply put, everyone valued, everyone included, everyone perform-

ing at their peak.

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CHAPTER 4

Sustainability Integrating Preservation and Profits

The first rule of sustainability is to align with natural forces,

or at least not try to defy them.

—Paul Hawken

Sustainability is a widely used word with nearly infinite meanings. Theconsensus view, however, is that sustainable development incorpo- rates the notion of meeting the needs of the present without compromis-

ing the ability of future generations to meet their needs—particularly, in

the modern context, environmental needs.1 Despite the definitional

chaos, young leaders are acutely aware of the challenges we face on the

environment and other issues of sustainability and are keen to address

them in long-term ways.

In our MBA Student Survey, the results were encouraging. Sixty-four

percent of those polled agreed or strongly agreed with the statement,

“The majority of corporations will have a sustained dedication to environ-

mental sustainability and alternative energy over the next 20 years” (see

figure 4-1).

Clearly, the business community has become attuned to the concept

of sustainability, and young leaders of today are confident that sustain-

ability—as a topic and a professional pursuit—will only grow in

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140 PASSION AND PURPOSE

importance. So how do twenty-first-century managers and organizations

harness these young leaders’ passions and energies, and how can aspiring

young businesspeople chart a career that includes an emphasis on sus-

tainability?

From Awareness to Intelligence

While the baby boomers have been concerned with raising environmental

awareness, today’s leaders are focused on environmental intelligence.

Moving beyond the days of community-funded curbside recycling pro-

grams and expensive energy-efficient lightbulbs, we are seeking long-

term, self-sustaining solutions that benefit entire populations, not small

niches that can afford to pay. In short, we are focused on breaking the tra-

ditional trade-off between environmental and economic impact to create

mass change, realizing that we will never change the world unless we

eliminate the trade-offs inherent in traditional sustainability. We’re also

seeking to avoid the predicted shortages in energy and natural resources

by finding new, cheap, and renewable ways to power the planet.

The majority of corporations will have a sustained dedication to environmental sustainability and

alternative energy over the next 20 years.

Strongly disagree

Disagree

Neutral

Strongly agree & Agree

10% 20% 30% 40% 50% 60% 70%

F I G U R E 4 - 1

Most MBAs believe corporations will support environmental issues

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Sustainability 141

The evidence behind the environmental intelligence movement is pro-

found. For example, a recent Deloitte/Michigan State University survey

showed that millennial consumers are not willing to pay a premium for

hybrid vehicles simply because they are environmentally friendly.2 How-

ever, a hybrid vehicle with proven fuel efficiency (as measured by gallons

per mile) was extremely attractive to the vast majority of participants.

One participant summed it up well: “Figure out how to save the environ-

ment without charging me more, and I am all for it.”3

Our own survey supports this claim. When we asked what product at-

tributes mattered most, students ranked cost as the most important, with

“environmentally friendly” ranking second (see table 4-1). In the era of

environmental intelligence, economics matter.

So what does this balancing act mean for organizations trying to attract

young leaders? It means catering to the 96 percent of 18-to-25-year-olds who

aspire to work in a greener office.4 It means evolving communication strate-

gies to emphasize the economic benefits of “going green.” And it increasingly

means transitioning from traditional vehicles (nonprofits, donation-based

awareness, and big-budget marketing campaigns) to the vehicles of our gen-

eration (FOPSEs, or for-profit social enterprises, consultative strategies, and

interactive social media) to create compelling environmental economics.

TA B L E 4 - 1

MBAs’ rankings of project attributes

Imagine you are considering purchasing a hybrid vehicle for the first time. Please rank the following six considerations in order of importance.

Item Total score Overall rank

Cost 2,365 1

Environmentally friendly 2,102 2

Performance 2,067 3

Design/aesthetics 1,836 4

Status/social symbol 1,130 5

Other attribute 571 6

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142 PASSION AND PURPOSE

The Sustainability “Sprint”

One core driver of the evolution from awareness to intelligence is the

wealth of resources being plowed into the sector, advancing our under-

standing of the environmental problem. Never before has more labor and

capital been invested in fields like alternative energy, clean tech, carbon

emissions, and deforestation.

To start with, investors are clearly bullish on the sector. Of the $17.7

billion of venture capital invested in 2009, energy investments represent

$2.3 billion, or approximately 13 percent.5

With the new investment dollars come enticing job opportunities for

talented graduates. Around 80 percent of the students we surveyed

agreed or strongly agreed with the statement, “Alternative energy and en-

vironmental sustainability offer meaningful career paths for people in my

generation (see figure 4-2).”

Business schools are launching Sustainability Centers to meet the in-

creased student demand, and indeed, creating entire degrees (such as the

Certificate in Green Supply Chain Management at the University of San

Francisco).6 A slew of recently launched sustainability rankings have kept

F I G U R E 4 - 2

Most MBAs view energy and environmental careers as meaningful

80%

Alternative energy and environmental sustainability offer meaningful career paths

for people in my generation.

Strongly disagree

Disagree

Neutral

Strongly agree & Agree

0% 10% 20% 30% 40% 60%50% 70% 90%

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Sustainability 143

the spotlight on the environmental policies of blue-chip companies.7

Finally, pop culture has also played an important role in furthering our

understanding—Al Gore’s Oscar-winning documentary An Inconvenient

Truth and subsequent lectures on climate change brought about mass

awareness of the problem in 2006.

It must be mentioned that many of these indicators are short-term

measures that do not account for the long-term viability of resources de-

voted to the sector. As we step up our search for sustainable solutions,

many market observers have warned of a “green bubble,” where so-called

green investors are bidding up shares of companies involved with alterna-

tive energy and environmentally friendly products and services, and

scooping up initial public offerings of promising “clean-tech” ventures.

Only around 30 percent of those we surveyed agreed or strongly agreed

with the statement, “The green and alternative energy sectors are in a

bubble.” However, if they are indeed in a bubble, this could jeopardize

the long-term success of these initiatives just as the dot-com crash in

2001 sent entrepreneurs and investors scrambling and set back Internet

innovation.

A New Competitive Dimension

What does this mean for the young leaders looking to shape a sustainable

future? Winners of the sustainability sprint will seamlessly fold environ-

mental performance into the core economics of their organizations. In

other words, their strategies—on how to attract the best employees,

shorten supply chains, and sell more products—will explicitly consider

the financial impacts of going green. This will lead to profound shifts in

demand over the next two decades.

First, consumers will demand cheaper, more efficient products and

services that are environmentally sustainable and delivered by no/low-

impact supply chains. Hence, the new definition of “value” incorporates

time, cost, quality, and sustainability. The best and brightest will reorganize

their organizations’ manufacturing process to deliver on all four dimensions.

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144 PASSION AND PURPOSE

Second, almost all job seekers will be more cognizant of a company’s

sustainability ranking, and will consider it alongside traditional factors

such as salary, working hours, and location. Successful companies will em-

phasize their ranking in their job descriptions and recruiting campaigns.

Finally, students will seek to educate themselves on environmental is-

sues and sustainable practices as preparation for the world at large. Univer-

sities must respond by both providing specialized degrees and integrating

content into existing fields of study, including, of course, business.

The following stories highlight some of the new ways our generation is

thinking about and addressing sustainability issues. They are not in-

tended to be a comprehensive “playbook,” but rather to provide flickers of

inspiration on how to move beyond mere environmental awareness and

compliance toward more long-term, self-sustaining solutions that make

sound economic sense.

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Sustainability 145

A Sustainable Career

ANNIE FISHMAN graduated from Yale University with a BA in envi-

ronmental studies and political science. She came to Harvard Busi-

ness School after working in the nonprofit sector. After graduating

from HBS, she held a number of brand management positions and

is currently senior marketing manager for Amyris Biotechnologies.

She’s the current vice president of the HBS Green Business Alumni

Association and a passionate believer in achieving the impossible.

Rural Farms and Urban Blight

Born and raised in New England, I have always felt a connection to the

natural world. From picking apples in local orchards to raking leaves to

building snowmen in my front yard and flying kites among the sand

dunes of Cape Cod, my childhood was colored by the unique environ-

ments of each season.

I spent the first half of my junior year of high school at the Mountain

School, an academic program that affords students the opportunity to

live and work on an organic farm in rural Vermont. Through integrated

and interdisciplinary coursework as well as daily farm chores and out-

door environmental education, the Mountain School helped students

discover their own relationship with an evolving natural system. Using

the farm, pastures, and forests of the three-hundred-acre campus, we

gained an understanding of the ecological and cultural forces that have

shaped New England, and how these impacts have played out on a

global scale.

For the remainder of high school and throughout college, I further

pursued environmental studies, but I quickly began to identify a major

tension between preserving the quality of our environment and leverag-

ing our available natural resources to drive economic growth. At the

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146 PASSION AND PURPOSE

School for Field Studies Center for Sustainable Development in Atenas,

Costa Rica, I explored eco-tourism, sustainable agriculture, and natural

resource management as mechanisms for balancing the region’s growing

economic needs with its precious biodiversity.

Back in New Haven, however, I encountered a harsher reality. Chil-

dren in the neighborhoods surrounding Yale were suffering from some of

the highest asthma rates in the state, due to poor air quality resulting

from high levels of particulate matter emitted by the power plants and

bus depots abutting their homes. Upon graduating from Yale, I felt a

deep sense of responsibility to leverage my education for social good.

Like many of my peers of this generation, I was—and still am—

motivated by impact; I have a bias toward action. Frustrated by the

alarming health implications of fueling urban America, I spent my early

career working for the Centers for Disease Control and Prevention on

asthma prevention in Roxbury, Boston’s poorest zip code.

I applied to Harvard Business School because I sought a toolkit of

business and leadership skills that would enable me to turn my passion

for social and environmental justice into meaningful action. I believed

that if I could speak the language of business, I could effect change in

the very organizations that were responsible for the poor air quality im-

pacting the children of New Haven and Roxbury. Rather than addressing

the symptoms, I sought to impact the root cause.

At HBS, it quickly became clear to me that I was not the only one

with this career strategy. As a first-year MBA student, I created a Corpo-

rate Social Responsibility Interest Group—an offshoot of the existing

Social Enterprise Club—and met classmates who had previously been

everything from investment bankers to pharmaceutical chemists and

army officers. We all shared a common vision: business could create not

only economic but also social value.

Later that year, the 2006 debut of Al Gore’s An Inconvenient Truth

brought heightened attention and a sense of urgency to the tensions be-

tween economic growth and environmental preservation that many in my

generation had recognized for years. The film brought to an estimated

audience of 5 million people the consequences that we would face if we

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Sustainability 147

continued with business as usual. For me, those consequences were un-

acceptable; we need to change course. This directional shift, however,

would require behavior change of massive proportions—by corporations

and, most importantly, by consumers. Thus, I decided to become an ex-

pert in behavior change. In other words, a marketer.

Establishing Roots, Setting Trajectories

Although my decision to join the Clorox Company as an associate mar-

keting manager baffled some friends and family members, I was deter-

mined to learn marketing and brand management from a firm known for

building some of the most iconic brands in the world. The role was an

exercise in patience; despite articulating an interest in working on a

brand with a “green” positioning, I was staffed on Tilex and Clorox bath-

room cleaners, some of the most chemical-laden brands in the com-

pany’s portfolio.

Searching for opportunities to become more connected to my daily

work, I reached out to the Clorox Eco Office, the company’s fledgling en-

vironmental sustainability team who had been tasked with developing

strategy and tactics to reduce the firm’s environmental footprint. Appar-

ently I wasn’t the first to make such an inquiry, and along with several

colleagues I was tapped to lead the Eco Network, an employee engage-

ment initiative in support of the Eco Office’s strategic goals. The two

hundred-plus employees who signed up for the Eco Network shared a

common interest: how could we be “intrapreneurs” within our organiza-

tion to drive more sustainable business operations? More than anything,

being a part of the Eco Network gave us a sense of ownership in the

company’s future, and provided us opportunities for cross-functional and

cross-brand collaboration.

While the Eco Network gave me opportunity for influence, it didn’t

provide the sense of impact that I needed to feel fulfilled. I found myself

far more engaged in our team’s business unit sustainability audits than

I did in developing a launch plan for a Tilex line extension; however,

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148 PASSION AND PURPOSE

I loved the marketing function. I felt that I could have the most impact

in a role where I could lend my MBA and marketing expertise to the

commercialization of a product or service that would drive environmen-

tal sustainability not only in one corporation, but in many. So I prepared

for my first post-MBA career transition: from the marketing of consumer

products to the marketing of renewable energy.

My experience at Clorox taught me that human behavior is hard to

change. If it was this difficult to get people to change brands of bath-

room cleaner, what could possibly get them to change their electricity

consumption, their driving behavior, or the length of their showers? I

learned that “sustainable” substitutes are most compelling when they

require minimal effort and deliver some incremental benefit. Clorox’s

GreenWorks brand achieved initial market success because it promised

cleaning efficacy equivalent to market leaders, but delivered the addi-

tional benefit of biodegradability. As I prepared to transition to work full-

time on sustainable products and services, I looked for opportunities to

leverage my marketing skills to educate customers, and in doing so,

remove barriers to behavior change.

Moving to Clean Technology

This search brought me to Solyndra, a manufacturer of photovoltaic

(solar) panels for the low-slope commercial and industrial rooftop

market. Inspired by the opportunity to leverage the world’s 11 billion

square feet of low-slope rooftop to serve as a source of clean, renew-

able energy, I was also motivated by the manufacturing jobs that we

were creating right here in California. A well-funded venture-backed

company, Solyndra was the first recipient of the Department of En-

ergy’s loan guarantee program, which was financing the construction

of its expanding Bay Area–based manufacturing facilities. As market-

ing manager, I developed strategies and tactics to grow awareness

of the Solyndra value proposition by both channel and downstream

customers.

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Sustainability 149

As I came onboard at Solyndra, I quickly discovered that the impact of

my work reached far beyond reducing greenhouse gas emissions. The

dawning of the era of sustainability had also coincided with an economic

crisis that had devastated the industries in which many of my peers were

building their livelihoods. In February of 2009, my partner Scott was laid

off from his role as senior associate director in GE Capital’s Commercial

Real Estate Division. GE Capital virtually shut down its San Francisco–

based real estate operations, as did many of its competitors. Having built

his career to that point in commercial real estate finance, Scott suddenly

found himself in a job market that no longer valued his qualifications.

Fellow members of my HBS class of 2007 were finding themselves in

similar situations. On a visit to New York City later that year, Scott and I

met up with five HBS classmates and their partners for brunch one Sun-

day morning. Of the six of us, two had been laid off from their jobs in fi-

nance and one had left his firm following a recent acquisition. Like

Scott, these friends had suddenly gone from climbing the corporate lad-

der to having no ladder at all. As my friends sat in this West Village café

sharing stories, one thing became frighteningly clear: they could not find

new jobs by simply returning to the industries from which they had been

shed. There were no jobs left. They would need to change industries—or

create new ones.

A Reset Opportunity for Careers

At the nexus of these two generational challenges—economic meltdown

and global warming—lies a compelling solution: clean technology. I used

to wonder: what if we could combine the ability of business to meet con-

sumer needs with our underutilized human capital, and harness this

power to create products and services that sustain rather than deplete

our earth’s resources? The clean technology industry is doing just that. I

now lead marketing for Amyris, a renewable products firm whose labora-

tories are burgeoning with chemists and biologists developing alterna-

tives to petroleum for use in chemicals, plastics, cosmetics, and fuels.

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150 PASSION AND PURPOSE

The intellectual capital of the semiconductor industry is finding work

once again building solar modules. Building tradesmen—from roofers to

electricians to carpenters—are adapting their skills to provide sustain-

ability-related services. Scott is currently retooling his skill set and

quickly becoming an expert in both commercial and residential rooftop

solar financing. And all of these renewable energy alternatives require

capital to fund their development and financial solutions to sustain their

growth.

Creating renewable sources of energy ensures not only a healthier

planet, but also a healthier economy. While we can certainly adjust our

behavior to reduce consumption, we also have the opportunity to design

and develop more environmentally sustainable substitutes. The possibili-

ties for innovation are seemingly endless, as we can—and must—de-

velop solutions that serve the needs of the society we’ve built for

ourselves, while maintaining future generations’ ability to meet their

needs as well.

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Sustainability 151

From Safety Nets to Trampolines

VALERIE BOCKSTETTE graduated from Brown University with a degree

in economics and international relations. After three years as an in-

vestment banker, she came to Harvard Business School and discov-

ered her passion for social impact. She is currently a director at FSG,

a nonprofit consulting firm specializing in shared value strategies.

In the spring of 2005, I participated in the annual “Portrait Project,”

a tradition for graduating students at Harvard Business School. Each

year, students are invited to answer a simple but profound question,

taken from a poem written by Pulitzer Prize–winning author Mary

Oliver: “What is it that you plan to do with your one wild and precious

life?”

My seemingly odd answer was:

I plan to build trampolines. Remember jumping on one as a kid—

the more you jumped, the more support you got—and like magic—

you rose higher and higher, as though you could bounce forever? I

grew up on such a trampoline. No, my family wasn’t in the circus.

When I wrote this essay more than five years ago, I wholeheartedly

planned to dedicate my professional career to building trampolines by

creating innovative charter schools that unlock the potential of all chil-

dren. But things sometimes don’t turn out the way you intend—I am

now a strategy consultant. At my five-year HBS reunion I reflected on my

Portrait Project essay and my career ambitions at the time and briefly

lamented not becoming an education reformer.

However, it dawned on me that even in my current role advising major

corporations, I get to lay the groundwork for trampolines every day. And

potentially as important, I have the privilege of being at the forefront

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152 PASSION AND PURPOSE

of the campaign against the corporate world’s prevailing safety-net

mentality. This essay explores the future of sustainability by juxtaposing

the concept of trampolines with the concept of safety nets. The former is

a mechanism for reaching new heights; the latter is a mechanism for pro-

tecting against downside.

The Big Sustainability Debate: Trampolines Versus Safety Nets

After graduating from HBS, I participated in the Leadership Fellows

Program, which places HBS graduates in leadership positions with se-

lected nonprofits. My one-year fellowship at a small consulting social en-

terprise in Boston quickly turned into two years, during which I had the

privilege of providing advice to dozens of nonprofits in the Boston area.

However, it became very clear to me that while nonprofits working on

the ground can do a world of good, the sum of their efforts is not going to

be enough to tackle the pressing issues facing our planet. The answer

lies in convincing the private sector to shed the notion that sustainability

efforts are about safety nets, rather than trampolines, for change.

You’re probably asking yourself: what is a safety-net mentality in the

corporate sector—and what does this have to do with sustainability? A

safety-net mentality means viewing sustainability—being “green,” corpo-

rate social responsibility (CSR), and all the other terms that fit in this

category—as activities that help companies avoid risk, mitigate harm to

corporate reputation, respond to stakeholder activism, and garner a posi-

tive press headline. This inauthentic way of thinking, which sadly still

prevails in too many boardrooms, is fundamentally flawed.

What, then, is a trampoline mentality? A trampoline mentality means

that companies understand and embrace the concept of creating shared

value—the idea pioneered by Michael Porter and FSG, the firm I have

been working for since my fellowship ended in 2007—which states that

companies can create environmental and social value alongside, and not

in opposition to, shareholder value. Companies can be trampolines for

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Sustainability 153

sound environmental practices, social progress, and profits. The idea of a

triple bottom line approach is not new, of course, but the key difference is

that companies that truly embrace shared value are pursuing a goal that is

more about proactive value creation and less about the reactive mitigation

of potential value destruction. What does this mean in practice?

A safety-net approach means doing the bare minimum, and for the

wrong reasons. Companies that view sustainability as a necessary evil of

appeasing loud activists, or as a “tick the box” effort to fill out a perceived

necessary reporting framework, or as simply reducing their footprint may

be missing out on huge opportunities for value creation. Just ask GE,

which with its pioneering “ecomagination” efforts was able to generate

billions in incremental revenue and raise awareness for the importance

of environmental efficiency among its whole client base.8

Or Walmart. Reducing its own environmental footprint was not ambi-

tious enough for this giant retailer. Walmart realized that the clout of its

purchasing power among suppliers could be leveraged to catapult them

to change.9 Walmart announced in 2010 that it expected its suppliers to

take responsibility for minimizing their footprints by reducing packaging,

changing production, or even altering product formulation. The Walmart

Sustainability Index asked a hundred thousand suppliers to evaluate

their own sustainability and analyze their product’s life cycles so that

Walmart could ultimately provide its customers with transparent infor-

mation on the environmental impact of its product offerings.10

Indeed, both Walmart and GE were driven to these bold moves

because they knew it would ultimately bolster their bottom line, not

because they wanted to altruistically save the planet. But that is pre-

cisely the point. A “saving the planet” mentality might have led them

to a cautious safety-net approach, making a few basic adjustments to

optimize their use of resources today. However, by instead becoming

trampolines for change, these two companies had much more impact

on the planet.

So where does this leave me on my journey to build trampolines? At

my current job at FSG I get to work with large corporations on a daily

basis, and I see it as my passion and purpose to convince them to adopt a

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154 PASSION AND PURPOSE

trampoline approach to their engagement with society. Along with my

teammates I get to inspire companies to look beyond the bare minimum

requirements and seek out opportunities to expand the business by turn-

ing societal challenges, such as scarce resources, into new products or

services, or more productive value chains.

I’ve gotten to work with companies in the IT industry that have devel-

oped new tailored products to help their customers manage and reduce

their footprints; I’ve worked with agricultural input companies that have

created ways to help smallholder farmers improve their productivity, all

the while making more efficient use of natural resources; I’ve worked

with companies in the pharmaceutical industry that have reshaped

whole distribution networks to create new jobs and thereby strengthen

the overall communities in which they operate.

As Michael Porter recently said about this new way of corporate

thinking:

I think what’s happening now is really a redefinition of the bound-

aries of capitalism. A redefinition of what productive, effective,

operating practices look like in corporations. A redefinition of how

one thinks about designing products and getting those products to

the market; with a much broader perspective of the impact and

effect of a whole variety of social issues, let’s take the environment.

We used to think that dealing with environmental compliance

issues was expensive; it inflicted cost on the firm. The more we’ve

learned over the last several decades the more we’ve understood

that, actually, good environmental performance is also good produc-

tivity performance; it reflects greater use of resources. I see this

Creating Shared Value as kind of the next stage of evolution in the

sophistication of the capitalist model.11

In other words, shared value means not only reimagining the individ-

ual leadership of companies; it also means reimagining the very nature of

capitalism. It describes exactly the type of system I was hoping to find

after business school, and I feel lucky that I get to help shape this system

every day through my work.

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Sustainability 155

What Trampolines Mean to You

This way of thinking about sustainability is not new news to the current

crop of young MBA students looking for inspiring careers. As an alumni

mentor at both my undergraduate and graduate alma maters, I get

e-mails almost every week from students or recent graduates looking for

careers that put passion and purpose ahead of big salaries. An executive

at one of the largest companies in the United States recently told me

that the firm’s Web page that gets the most hits from people after its ca-

reers page is its corporate citizenship page, which discusses the com-

pany’s environmental and social commitments. I believe this should

make companies excited—and very nervous.

It is widely known that prospective employees are no longer satisfied

with working for companies that pay lip service to sustainability. They are

no longer satisfied with companies that issue a 150-plus-page sustain-

ability report with glossy pictures and raw data on reducing their carbon

footprint. Today’s young employees can see right through that. Compa-

nies that embed sustainability into the fabric of their business strategy

and attempt to be trampolines for dramatic and lasting progress are

much more attractive to the next generation of talent than companies

that view sustainability as a safety net that is removed from their day-to-

day activities.

Even investors are starting to ask more and more questions about

how a company’s long-term business strategy is tied to its sustainabil-

ity strategy. Bloomberg chairman Peter Grauer said in the summer of

2010 that “the firm believes environmental, social and governance

(ESG) will become fundamental to equity market analysis” as he

unveiled plans for how Bloomberg would embed ESG data into its

platform.12

What does all of this mean in practice for you? Ask yourself whether

your current or any prospective company has a trampoline or a safety-net

mentality toward its environmental engagement. If it is the latter, it is not

alone. A 2010 report by Accenture and the UN Global Compact found that

93 percent of Global Compact CEOs see sustainability as important to

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156 PASSION AND PURPOSE

their future success.13 However, strengthening brand, trust, and reputation

was found to be the strongest motivator for taking action on sustainabil-

ity issues, identified by 72 percent of CEOs. This sounds more like a

safety-net reaction than proactive trampoline building. Further, the

study found that while 88 percent of CEOs agreed that sustainability

should be embedded throughout the supply chain, only 54 percent were

actually doing so. You may not be alone now, but you could be in the fu-

ture. Eighty percent of CEOs in the same study believe that a “new era

in which sustainability is fully integrated across their global business

footprint” is only fifteen years away.

This means that CEOs, managers, and the next generation of

MBAs—in other words, you—have time to get ahead of this curve and

put companies proactively on a path of long-term, sustainable value cre-

ation. This path could unfold in several ways:

Start with the minimum: Ensure a sustainable footprint. No matter what

kind of company you are working for, it is sourcing or selling products

that touch our ecosystem. Of course, in the case of Starbucks, it is

easy to see that being proactive means enabling sound environmental

practices of coffee farmers. But even if you’re not working at Star-

bucks, you can act. Ask your company to audit its supply chain to find

all of its touch points with our earth’s natural resources, and find

places to turn waste and harmful practices into bottom-line savings.

If that’s too much, start small: procure your company’s cafeteria food

from a caterer who sources locally.

Think bigger: Develop new products or services that are green. Every

company can create its version of the Prius. For HP, for example, this

meant developing printers that virtually eliminate warm-up time, cut-

ting a printer’s energy use by up to 50 percent—helping avoid 1.3 mil-

lion tonnes of CO2 emissions in 2009, equivalent to removing more

than 240,000 cars from the road for one year.14 For SAP, for example,

this meant developing a software suite to help customers manage their

own environmental footprint. Think about your company’s products

and services: there is a Prius—an offering that is delightful and energy

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Sustainability 157

saving—just waiting to be discovered. Why not organize a brainstorm

to ask, “What societal and ecological challenges can our company turn

into business opportunities?”

Think bolder: Invest in your “green” competitive context. Finally, on a

more long-term basis, think about what will be required in twenty

years to keep your company sustainable, and urge that these invest-

ments be made now. For Mars, for example, this currently means

investing in the cocoa farming sector in the Ivory Coast to ensure a

high-quality supply chain for the next generation.15 For vineyards, this

means investing in drip irrigation systems. For companies that source

raw materials in Africa, this might mean investing in processing facili-

ties there, rather than shipping product elsewhere for the next step of

the value chain. For companies wanting to switch to renewable ener-

gies, this might mean partnering with several local peers and even

competitors to ensure that the community has the grids in place to

connect to renewable energy sources.

You can play an active role in putting your company on the path of the

shared-value evolution. Wouldn’t you be happier if you could come to

work every day knowing you could jump on a trampoline? I know I am.

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158 PASSION AND PURPOSE

The Value of Community Partnerships in Addressing Climate Change

CHARLEY CUMMINGS remains vice president of Clean Power Now.

After graduating from Brown University in 2006 with a degree in

public policy, he spent three years as a management consultant.

His other experience includes designing the corporate social

responsibility strategy of an organic soup company and working

for a member of the House of Commons in the British Parliament.

He graduated from Harvard Business School in May 2011. He is a

passionate believer in clean technology and renewable energy.

At first there were roughly a dozen of us, including a retired engineer

from GE, a ferry boat captain, a former member of the Royal Air Force, a

motorcycle enthusiast, the president of another local nonprofit, an Epis-

copal priest . . . and me, the college student. The only thing we seemed

to have in common is that we were all residents of Cape Cod, the na-

tion’s vacationland.

What brought us together each Tuesday night in 2003 was an entrepre-

neur’s proposal to build the nation’s first offshore wind farm, right in our

backyard in Nantucket Sound. Cape Wind, as the project was called,

promised to provide clean, pollution-free, renewable energy to three-

quarters of Cape and Islands (Nantucket and Martha’s Vineyard) resi-

dents, offsetting the equivalent of a million tons of carbon dioxide

emissions per year.16

The project mattered to me personally because it was a big idea.

I believe energy and climate change are the global challenge of our

generation, and yet I struggle to believe that doing the little things on

my own—exchanging incandescent lightbulbs, for example—make

much of a difference at all, given the enormity of the problem.

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Sustainability 159

Despite a lot of rhetoric, the extent of the problem has become

markedly clear over the past few years. The scientific mechanism behind

climate change is little disputed. It is now unambiguous that human ac-

tivities are changing the concentration of greenhouse gases in the earth’s

atmosphere and have been doing so since the Industrial Revolution. As

our carbon dioxide emissions have increased from roughly 1.5 billion

tons per year in 1950 to 6 billion tons today, carbon dioxide concentra-

tions in the atmosphere have increased from 300 parts per million (ppm)

in 1950 to 390 ppm today.17 The debate in climate change thus now sur-

rounds not whether but by how much and at what rate global tempera-

ture will increase as a result.

The Massachusetts Institute of Technology Center for Global Climate

Change Science has produced some of the most widely cited climate

models, which predict fairly severe threats to our livelihood if we do not

enact policy changes. From an economic perspective, however, the inter-

esting part of the model is the “long tail” of the probability curve. The

model suggests a 9 percent probability of a very severe increase of 12° to

15°F by 2100. According to the U.K.’s Stern Review, this corresponds to

an estimated drop in world GDP of 20 percent or more, more than $12

trillion.18 A probability-weighted net present value analysis—and note

this is without any bleeding-heart rhetoric—tells any MBA that despite a

low probability, the catastrophic costs overwhelm the NPV, compelling

one to purchase insurance of some kind.

Cape Wind—and the nascent offshore wind industry it will

spurn—provides a piece of this insurance. Unfortunately, just a few

months following the initial project proposal, some 60 percent of

Cape and Islands residents believed the cost of putting 130 utility-

scale wind turbines in Nantucket Sound outweighed the project’s ben-

efits.19 The millions of dollars invested by a well-funded opposition

group had paid off. People now believed the turbines would hurt

tourism, damage property values, kill fish and birds, destroy our hori-

zon, and enrich a private developer through numerous subsidies and

tax incentives, all while increasing electric rates. “Not in my back-

yard,” replied many residents.

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160 PASSION AND PURPOSE

Early on, traditional environmental groups were nowhere to be

found. We believed this was perhaps because these groups—trained in

the LBJ-era of regulation and reform politics—were too used to fight-

ing the regulatory battles of the past. Too used to saying “no” instead

of “yes.”

Enter our motley crew in late 2003. We were not particularly enlight-

ened; we were really a bunch of residents simply interested in hearing

the truth. We invited representatives from the developer to our meetings,

asked questions of the federal and state regulators, and did our own sec-

ondary research. The retired engineers in our group modeled the visual

impact of the project, finding that if you stood on the beach and held out

your arm, the turbines would appear as a quarter of an inch on the hori-

zon (perhaps half of your thumbnail).

As a result, we came to the conclusion that most of the oppositions’

objections to the project were fabricated, serving as an increasingly

transparent veil over their underlying desire to simply not have an eye-

sore on the horizon. We also believed that the public benefits far out-

weighed the potential negative impacts of the project.

So we went about our work, distributing black-and-white fact sheets

(often with upwards of ten pages of analysis) that made the case to sup-

port the project. The opposition group would then publish a full-page

color ad in the newspaper with a sketch of the project’s footprint exagger-

ated by ten times and the developer himself depicted as Godzilla, tram-

pling over Cape Cod and stuffing money into his pockets.

Despite our early failures in public relations, we did begin doing

things that were somewhat radical in the nonprofit sector. Although we

never received financial support of any kind from Cape Wind Associates,

we saw ourselves as the sole connecting point between citizens, the de-

veloper, and the regulatory agencies. We were unabashed about develop-

ing a close relationship with private industry.

Further, while the opposition’s argument always included “this guy is

going to make a lot of money on this project,” our response was that in-

deed we hoped that he would, so as to encourage more entrants into the

offshore renewable industry. This was a foreign concept for many

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Sustainability 161

environmental groups: in their view, the profit motive was part of the

problem, not the solution. Indeed, this has long been true—the profit

motive has been the inducement for many companies to destroy the en-

vironment, from the pursuit of natural resources to the production of fin-

ished goods. In our mind, however, this was the answer to the

problem—if we could show that an entrepreneur could profit from an

activity that contributed to the common good, the profit motive was ac-

tually something we needed to embrace.

Our meetings grew from six people to twenty-five before it became

unwieldy to meet as a group. In late 2003, we formed a 501c(3) organiza-

tion, voted on a permanent board of directors, and began raising money

to hire an executive director full time. We would call ourselves Clean

Power Now.

Our membership grew to 4,000 in 2004, doubled to 8,000 in 2006,

and now stands at 15,000. With generous support from and collabora-

tions with organizations with a similar view of social change, most no-

tably the Civil Society Institute, we were able to amass the resources to

mobilize thousands of citizens to speak at public hearings and empower

citizens to educate their neighbors about the merits of renewable

energy—and Cape Wind in particular.

In 2010, we felt as though we had achieved success. Our executive di-

rector had appeared on Jon Stewart’s The Daily Show and on the pages of

the Los Angeles Times. An astonishing 86 percent of Massachusetts resi-

dents (74 percent of Cape and Islands residents) now supported the

project.20 And, in the spring of 2010, the secretary of the interior, Ken

Salazar, gave the project a final stamp of approval.

The first offshore wind farm in the country would soon be built.

Despite almost ten years and dozens of public hearings later, the Cape

Wind project has not yet cleared all of the necessary regulatory hurdles.

Steel is not yet in the ground. And it is just a single project, with an aver-

age production of 170 megawatts. By comparison, many fossil fuel–fired

power plants generate upwards of 2,000 megawatts, enough to power the

homes of millions of people. The path toward a sustainable energy future

is indeed going to be a long one.

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162 PASSION AND PURPOSE

For me, the lesson was clear—the energy and environmental chal-

lenges of the twenty-first century would ultimately be solved by small

communities of individuals, albeit not in the ways one might anticipate.

A real difference won’t be achieved just by changing our lightbulbs. In-

stead, we can make a substantial impact by working together to help pur-

sue sources of energy consistent with our vision for our future.

For young corporate executives finding their way in the energy indus-

try, the lesson in the Cape Wind and Clean Power Now story is that

there is tremendous value in identifying, fostering, and assisting groups

of supportive local citizens in the course of project development. These

groups can build and sustain an autonomous “third voice” in the debate,

independent of existing interest groups. This can be vital to achieving

public support for a project and, in turn, gaining the approval of a regula-

tory body charged with determining whether or not a particular project is

ultimately in the public interest.

How to do this can be tricky. A well-financed but disingenuous PR

campaign is not equivalent to systematically identifying champions of

your cause and empowering them with information—not just about the

particulars of a project, but about the company’s broader mission. How-

ever, going so far as to directly fund a group of local advocates would

likely compromise this group’s integrity and dilute their effectiveness.

Although Clean Power Now was always kept at an arm’s length finan-

cially from the developer, we benefited from the company’s willingness to

engage with us, attend our meetings, and provide us with information—

in some cases even information they might have been unwilling to re-

lease publicly. Energy developers have known for decades that failure to

engage a community can sink a project. Conversely, proactively facilitat-

ing the development of independent groups of citizens and partnering

with these groups—and other existing community organizations—can

yield meaningful results, as the struggle over Cape Wind reveals.

Indeed, because all energy projects have a footprint—and renewable

technologies tend to have more visible ones—these types of partnerships

are the only means to achieving measurable progress toward a sustain-

able energy future. The private sector can in fact solve the most

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Sustainability 163

intractable challenge of the twenty-first century, but it will require a sus-

tained commitment from the energy industry to community partnerships

and a concomitant level of engagement from local citizens. Given the en-

vironmental and economic benefits that will accrue to both parties, we

should be optimistic that a developer—along with a few interested

citizens—can change a long-standing industry paradigm in an effort to

pursue big solutions to a big problem.

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164 PASSION AND PURPOSE

INTERVIEW WITH . . .

Carter Roberts President and CEO of the World Wildlife Fund

Carter Roberts reflects on leading sustainability initiatives, weighs

in on the green bubble debate, and gives advice to young leaders

looking to build sustainability into their careers.

Reflecting on your experience leading teams at Gillette and Procter & Gamble, how should leaders think about pioneering sustainability initiatives within their corporations?

From our operational perspective there are three things a leader needs

to provide to move this change through their organization: vision, em-

powerment, and incentives.

First, vision. Signals from the very top of an organization do won-

ders for inspiring and motivating teams, and also ensuring that these

initiatives survive and flourish during budget debates and business

challenges. I’ve rarely seen a sustainability program succeed without

clear direction from the top.

Second, empowerment. The only way to become sustainable is to

make changes in the way companies design, source, distribute, and

market their products. Giving employees the space to innovate is

fundamental.

Finally, incentives. The best companies build sustainability mea-

sures into the performance evaluation and compensation of leaders

throughout their operations.

From a strategic perspective, I’d encourage any leader to think

deeply about the purpose of their business. Divest those parts

that don’t fit and grow those that embody the sustainability

paradigm.

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Sustainability 165

With companies focusing more than ever on sustainable initiatives and recently minted graduates seeking careers in the field, do you see sustainability as a short-lived fad?

Those companies that embrace the concepts of sustainability and in-

tegrate them into their businesses are the ones that will survive and

thrive in the decades to come. Those who do not will find themselves

obsolete, with little access to natural resources, trying to compete in a

world that has changed around them.

The imperatives to move in this direction are not going to change any-

time soon. We are growing from 6.5 to 9 billion people; their needs will

need to be met in the context of a finite planet. Something has to give.

If we want natural resources to support our needs, we’ll need to

create new means of delivering food, shelter, and energy while using

less land, water, and energy. Those individuals and those businesses

that figure this out will have a comparative advantage as things get

tight. And things will get tight.

Both early-stage and growth-stage investors are plowing more capital than ever into clean tech and energy investments. Are we in the middle of a “green bubble”? Why or why not?

We are investing more money than ever in launching new forms of en-

ergy, a good thing given the imperative to move beyond fossil fuels and

address the enormous risk that climate change presents to our econ-

omy, national security, and our planet.

While many investments were made in anticipation of a much-

needed price signal on carbon, which never materialized this summer,

other countries and even states are moving forward, particularly

China, by investing in these technologies and creating related regula-

tory or planning frameworks. For these reasons, I don’t see a bubble

per se in this market, more like the emergence of a new market sector,

in which I fear the U.S. will become a laggard.

Beyond climate change, however, there is another great horseman

of the apocalypse, which is natural resource scarcity, particularly

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166 PASSION AND PURPOSE

water, and the drying up of our supply chains. Leading companies are

beginning to invest more and more into inventing means of produc-

tion that use less land, less water, and less energy. All of these hold

great promise for some of our biggest businesses.

What is the best way to “teach” fundamental principles of sustainability to businesspeople? How do you hope universities and business schools will start to integrate these principles into their curricula?

I look back at my own experience and recognize that HBS would have

been the perfect place to begin thinking about these concepts. Twenty

years ago we were mostly concerned with the environment in the context

of pesky regulations one needed to navigate. Now, most successful busi-

nesses reach all the way around the world; they see these great social

issues in all their work and know that solving these issues is not only the

right thing to do but also a source of comparative advantage.

I don’t think you can teach sustainability in some kind of standalone

course. Sustainability delivers more to the bottom line by stripping out

costs, by securing longer-term contracts, markets, and sources of raw

materials, by navigating risks, and by building comparative advantage

in emerging markets. There’s little reason for consigning these issues

to a specialty elective course; they really ought to be integrated into

courses on strategic planning, manufacturing, finance, marketing,

international relations, and managing in a regulatory environment.

Sustainability principles are all about “how to think,” not “what to

think.” They’re about changing the lens through which you evaluate

resource allocation, product development, systems management, and,

of course, success. They’re about seeing things differently. That’s what

we need to be teaching the MBA students today.

You built a career in the private sector, then switched to the nonprofit side, working at the Nature Conservancy and now as head of WWF. Should young people start in the private sector first, then switch later? How should they think about building their careers in

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Sustainability 167

sustainability, clean tech, energy, and related areas? Has this changed over the past twenty years?

It doesn’t matter where you begin your career. What matters most is

developing the ability to connect the dots between sectors. The rarest

and most valuable commodity in our work is those individuals who

can bridge government, business, civil society, and academia in solv-

ing the biggest problems facing our society.

Twenty years ago, most people went to work in one sector and re-

mained in that sector for the majority of their careers. Now, it is much

more prevalent to see executives from business moving to the non-

profit sector and vice versa. For example, today at WWF, we have for-

mer executives from Procter & Gamble, McKinsey, Watson-Wyatt,

Nike, Chiquita, IFC, Home Depot, and Microsoft on our leadership

team. These people bring a different perspective to our “business” and

how we develop strategies to achieve our mission.

On the flip side, businesses like Walmart, Kraft, Coca-Cola, and so

on are bringing in key staff with public sector or nonprofit sector expe-

rience to provide a broader perspective on their business. In both

cases, it’s about learning from each other and recognizing that we are

never too old to learn.

My role models for this are people like John Sawhill, Chad Holli-

day, Roger Sant, and Larry Linden—people who were famously

successful in business, but who also played important roles in gov-

ernment and with NGOs like WWF, and who know how to craft solu-

tions that bridge all these sectors.

Inevitably, the world’s most successful business leaders begin to

think about their legacy. Besides delivering shareholder value and

building wealth, they begin to think about what they are leaving be-

hind, and their role in solving the greatest social issues of our day—

whether that’s poverty reduction, education, climate stabilization, or

ensuring that we don’t lose places like the Amazon or the world’s great

coral reefs. My advice is don’t wait too long to think about those

issues—build them into every phase of your career and find the

company that lets you make that happen.

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168 PASSION AND PURPOSE

I’ll never forget talking with Neville Isdell and Hank Paulson about

this issue—and listening to them agree on an unexpected virtue of

taking Coke and Goldman Sachs in the direction of sustainability,

which is that it enabled them to attract and keep the best and bright-

est, since those individuals want more out of their careers than just

money.

Some skeptics believe in the inevitable stalemate between being green and being financially competitive. How do you think about breaking this trade-off?

The ultimate reason to pursue sustainability is that it makes money.

Short-term you’ll see some trade-offs, but over the long term, you can-

not escape the challenges of resource scarcity and climate change.

Those companies that address these issues will have first-mover ad-

vantage in cost reductions through efficiency, in more secure supply

chains around the world, and in devising technology and process solu-

tions that will be in demand around the world.

Two years ago I came back to my HBS reunion and attended this

standing-room-only lecture by Howard Stevenson called “Make Your

Own Luck.” Professor Stevenson’s main message was that you could

make your own luck by building businesses around inevitable trends

in the world. When Professor Stevenson polled the hundreds of grads

crowding Burden Hall, the top four trends mentioned included

China, climate change, and resource scarcity—an intertwined set of

issues that revolve around sustainability or meeting the needs of hu-

manity without destroying the planet.

How has the notion of sustainable leadership changed over the past twenty years?

First, there weren’t many “sustainable leaders” twenty years ago.

Maybe Ray Anderson from Interface, Paul Hawken from Smith and

Hawken, Ben Cohen from Ben & Jerry’s. They were the “outliers”;

lone voices on these issues. Today, the role of the sustainability leader

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Sustainability 169

has been transformed from a “nice to do” to fundamental to the future

success of the business. It is recognized as a professional field, and

the “smart ones” are in demand by major corporations around the

globe.

The twentieth-century notion of sustainability was for a company

to have its foundation put some minimal funds into a feel-good project

to attain some kind of green halo.

The twenty-first-century approach to sustainability is more funda-

mental. If you just look at the long-term trends—more people, more

consumption, finite planet—you realize sustainability has to be main-

streamed. It’s about defining the basic nature of your business. Just

look at DuPont, which now expresses its vision to be “the world’s most

dynamic science company, creating sustainable solutions essential to

a better, safer, and healthier life for people everywhere.”

Have there been any environmental initiatives started by young people that have captivated you?

I am always captivated by the creativity of young people. I look at my

two sons and daughter and they surprise me every day with their

view of the world. I taught a class at my oldest son’s school last year

and afterwards the science teacher came up to me and said, “After

twenty years teaching this course, this is the first time that my kids

are having nightmares about the future of the planet. What should I

do?” I told him that we have to give them the tools to do something

about it and encourage them to invent and take chances wherever

they are.

Just last week I met a young fisherman named Anli who is pioneer-

ing the creation of community marine reserves off the coast of

Mozambique. After seeing their coastlines stripped by foreign fishing

fleets from Spain to China, Anli and his community are taking matters

into their own hands by establishing marine protected areas that are

patrolled by fishermen, and then enforced by the new government’s

navy. Five years later, they are now catching more fish and bigger fish

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170 PASSION AND PURPOSE

as a result. The community invited me and the head of CARE to join

them last week in laying the first buoys to set the boundaries of the

newest fishing reserve—a stunning place that links coral reefs to man-

groves to sea grass beds and a place of great productivity for fish. I got

chills down my spine thinking of the power of giving local communi-

ties the tools and the authority to chart their own future.

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CHAPTER 5

Technology Competing by Connecting

What used to be cigarette breaks could turn into “social media breaks”

as long as there is a clear signal and IT isn’t looking.

—David Armano, Senior Vice President, Edelman Digital

Consider how desktop computing defined the 1980s. The first per-sonal computer, the MITS Altair 8080, shipped in 1975 and sold a few thousand units with very little fanfare. By 1980, the number of per-

sonal computers had grown to just under one million.1 But it was be-

tween 1980 and 1990 that the personal computer reached ubiquity, with

the total number of PCs shipped hitting 100 million by the end of the

decade.2

In the early 1990s, this ubiquity paved the way for a global system of

interconnected computer networks using a standard protocol suite (the

Internet). The Internet carried a seemingly endless array of information,

with the World Wide Web and electronic mail redefining how people

searched for information and communicated with each other. The growth

of the World Wide Web, in particular, was exponential until the dot-com

crash of 2000, when tech stocks plummeted but quickly rebounded a lit-

tle over a year later.

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172 PASSION AND PURPOSE

The New Technologies: Web 2.0 and Mobile

When Mark Zuckerberg began coding thefacebook.com in his Harvard

dorm room in 2004, little did he know that he was ushering a whole new

revolution—Web 2.0. With new social media tools, such as Facebook,

promoting openness, connectedness, and user-centered design, people

could easily share the things that mattered most to them. Countless vir-

tual communities have since been formed, creating new opportunities for

cause-driven collaboration. And companies have found a ready-made

marketing channel bursting with engaged fans. From its humble begin-

nings, Facebook grew to 750 million members in 2011. Web 2.0 is a

defining technology for the next generation.

More recently, a new wave of mobile technology has emerged. Driven

by the rapid growth in the number of smartphones in existence, now

around 250 million units worldwide, companies large and small are intro-

ducing never-before-seen mobile-based products and services.3 For the

first time, customer segmentation and targeting can occur at the demo-

graphic, psychographic, and real-time geographic level. This is leading to

unprecedented new business opportunities. For example, location-based

start-up Foursquare recently announced a strategic partnership with gro-

cery chain Whole Foods to offer discounts for those who “check in” to

stores.4 Shopkick, a mobile coupon start-up, delivers coupons to con-

sumers as they pass by stores, driving increased foot traffic.5 Yelp provides

reviews on, and directions to, local businesses.6 Mobile technology is per-

haps the second prominent new technology of the next generation.

A Host of Different Technologies

Although this chapter focuses almost exclusively on Web 2.0 and mobile-

based technology, various other technologies, such as biotechnology and

artificial intelligence, have also seen dramatic growth in the past five years.

That said, the types of technology that tend to define generations and be

relevant to numerous organizations are usually either consumer-facing

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Technology 173

technologies or those that revolutionize business models, like the per-

sonal computer and the Internet. So for these reasons (and for purposes

of brevity), this chapter focuses on Web 2.0 and mobile technologies and

digs deeper into how young leaders are applying these technologies in

bold and innovative ways. Our surveyed students agree. When asked to

rank the top technologies that will be critical to the functioning of busi-

ness in the twenty-first century, mobile, social media, and cloud comput-

ing turned out in the top three, with a considerable 40.6 percent ranking

mobile as number one (see figure 5-1).

The intellectual excitement around both Web 2.0 and mobile technol-

ogy is that the opportunities they present are just beginning to be ex-

plored by organizations large and small. The ways that organizations are

using these technologies are fascinating.

Twitter, a microblogging platform, is allowing companies and celebri-

ties to address their fans directly with exclusive announcements. Britney

Spears, for example, often “tweets” her impromptu concert locations to

her 8 million Twitter fans less than ten minutes before beginning a per-

formance, drawing huge crowds in a short amount of time.7 Groupon, a

company worth over $10 billion and the fastest company to reach $100

million in revenue, harnesses the power of crowds to get group discounts

on services offered by local merchants.8 In a recent deal offered in

40.60%

45%40%35%30%25%20%15%10%5%0%

12.50%

10.80%

9.80%

9.40%

Mobile

Cloud computing

Social media

Clean energy

Business analytics

Percent of MBAs ranking each technology as most important

What technologies will be critical to business in the 21st century?

F I G U R E 5 - 1

MBAs rate importance of new technologies

107124 05 171-196 r2 vs 9/20/11 3:18 PM Page 173

conjunction with Gap stores, Groupon sold 440,000 50 percent off deals

in one day, generating over $11 million in revenue.9

Foursquare, the geolocation start-up, is allowing people to explore

their city by awarding points and rewards for “checking in” to venues,

leading to interesting O2O (online-to-offline) business opportunities. For

example, Foursquare established a partnership with Starbucks, which

awards a free beverage to those who check in most frequently at Star-

bucks stores.10

In this chapter, our contributors describe specific technologies, busi-

ness models, and applications. The first is social media—the use of Web-

based technologies to foster interactive dialogue and sharing. Second,

this chapter also looks into two-sided marketplaces, economic platforms

with two distinct user groups that benefit from network effects. We also

discuss innovative mobile applications, such as location-based services.

Although this is just the beginning of the new-technology phenome-

non, experts are already asking questions about the future. Will Facebook

be around forever? Which companies will define the mobile space? What

does Web 3.0 look like? In this chapter, we resist the temptation to make

ex-ante predictions about which technologies will end up with dominant

market share. In fact, companies investing blindly in new technologies

can face enormous write-offs in the future. MySpace is an example, los-

ing over 2 million users per month after reaching a peak of 100 million

users in 2006.11 During this time, MySpace was heralded as the “next big

thing” on the Internet, attracting significant attention and resources.

Other examples of falls from grace abound. Lycos, for example, was sold

for $5.4 billion at the height of the dot-com boom, only to be recently val-

ued at a paltry $36 million.12 These examples act as a warning for compa-

nies to beware of the shiny new thing. Business strategy should dictate

which technology is used, not the other way around. And as technology

changes quickly, companies need to steadfastly position themselves

ahead of the curve.

174 PASSION AND PURPOSE

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Technology 175

Building an Online Marketplace

JAMES REINHART is the founding CEO of thredUP, an online kids’

clothing swap. He believes in the power of social technology for

creating new online communities. Prior to attending the Harvard

Business School and the Kennedy School, while working in the Bay

Area, he helped develop one of the nation’s premier public schools,

Pacific Collegiate School—recently named the number seven high

school in America by U.S. News & World Report. He cofounded Bea-

con Education Network, a charter management and school turn-

around organization, and was a Goldsmith Fellow in Social

Enterprise at HBS and a George Fellow at the Center for Public

Leadership.

“Here’s the fundamental problem: this business breaks real easily around

liquidity in the marketplace. Markets are really hard to build. And a mar-

ket for secondhand children’s clothing—I just don’t buy it.” Eric Paley, the

managing director of Founder Collective, one of the nation’s hottest new

microventure capitalists, was not buying what I was selling. It was mid-

October 2009. Eric was not alone. A countless number of advisors, in-

vestors, and friends were not convinced there was a billion-dollar online

marketplace for gently worn children’s clothing. Plus, we stopped swap-

ping long ago. “It’s why we invented money!” in the words of one investor.

But what did they know? The Internet was changing. The tools avail-

able to business owners on the Web and in mobile applications were rap-

idly evolving. If 2000 was the year when a room full of guys with a server

could build a promising Web application, 2010 was the year a couple of

guys with two laptops in Starbucks could do better.

We were those guys. Oliver Lubin, Chris Homer, and I got scrappy—

in cafés, bars, and at our kitchen tables. Despite the chorus of investors

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176 PASSION AND PURPOSE

saying no, and the total, absolute unsexiness of the used kids’ clothing

market, we scraped together enough seed capital to run the company for

about six months (and I use the term company generously!). It was just

enough money—building a minimum viable product has never been

cheaper—to let us launch a prototype and test some assumptions, but it

was nowhere near what we were going to need to prove that we were

onto something big. In those first few months, it was the words of HBS

entrepreneurship professor Joe Lassiter that rang in my ear: “You raise

money to buy time for experiments, you buy experiments to produce in-

formation, you produce information to make decisions, you make deci-

sions to open or close options . . . You raise enough cash at each stage to

get you to that decision point and to deal with its consequences.”

November 2009 was the beginning of the “buying experiments stage.”

Here are four things we learned that might be helpful to entrepreneurs

and managers building online marketplaces.

1. Don’t just build it; nobody will come.

It’s all about distribution. Distribution is critical to starting a two-sided mar-

ketplace. In two-sided markets where high clearance rates are required—

that is, there are enough buyers and sellers to complete transactions in a

timely manner—a low clearance rate (illiquid market) is a deal breaker.

Would you ever post your available rental on Craigslist if it took ninety

days to rent? No. If nobody posted rentals on Craigslist, would you go

there looking for rentals? Broken market. If it took three weeks to sell your

iPod on eBay would you wait that long? Probably not. If nobody posted

iPods on eBay, would you go looking there? Broken market. There is no

need to belabor a well-worn path, but we often take for granted two of the

best-functioning marketplaces on the Web today: eBay and Craigslist. In

today’s world, eBay and Craigslist are so part of the Web vernacular that

they have become the de facto bar for any emerging marketplace.

But just because they’re the dominant online marketplace for second-

hand goods doesn’t mean they’re doing a good job serving all customers.

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In fact, many companies have been nibbling at eBay and Craigslist for

some time (Etsy—the $300 million handcrafted-goods marketplace—

being the most successful example to date).13 thredUP would take a simi-

lar approach: figure out where eBay’s one-size-fits-all approach is failing in

the secondhand children’s clothing market; differentiate and execute.

thredUP is very much a classic disruption play. We’ve sought to change

the dimension of competition. It’s not about price; it’s about convenience.

But in a convenience play, market dynamics are even more critical.

2. Build a community (or better yet, plug into an existing one).

Prior to the launch of the seed phase site, we estimated a need for a

database of five thousand e-mail addresses of interested parents. There

are always people who would not be interested once we launched, so we

needed a significant cushion. Like most Web businesses these days, we

used social media early on to build a thredUP community—social media

is a necessary but not sufficient part of community building because it

helps develop the marketplace. We had a teaser page up for collecting in-

formation for our “exclusive launch”; we made some funny (and not so

funny) videos on YouTube; we built a Twitter following; hosted two blogs;

and nurtured a growing Facebook page. This isn’t rocket science, but im-

portant content distribution and engagement tools were helpful in get-

ting the word out about thredUP and what we were doing.

Where we spent the majority of our energy, however, was at the grass-

roots level listening to as many mom bloggers in America as we could.

There was a community of moms out there talking about clothing swaps

and hand-me-downs and sustainable consumption; we just had to plug

into it. It’s always easier to tap a community than it is to build one. We

contacted everyone we could find—starting with the low-hanging fruit of

“savings sites,” “deal sites,” “coupon sites,” and “clothing sites.” We didn’t

just tell folks about thredUP either—we engaged thousands of mom blog-

gers over e-mail and phone to be an integral part of our launch. thredUP’s

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178 PASSION AND PURPOSE

“invite-only” status during the pre-seed phase was a calculated buzz gen-

eration tool. Who had the invitation codes to thredUP? Mom bloggers.

We offered exclusive access to our private beta site only to “founding

members” and their readers. We asked these early adopters for feedback

and gave them regular updates regarding launch timing. We made them

feel special—and in the context of our community, they were special.

What we were ultimately selling prior to launch was belonging—the op-

portunity to be an early member of a movement. We created an environ-

ment where it appeared difficult to be first and where being first actually

mattered. Paradoxically, we were selling exclusivity even though we needed

the very opposite: lots of people were necessary to make the market work.

3. Find out how your marketplace breaks and confront it head-on.

Given the number of sizes we were offering, we estimated that we

needed a thousand boxes of kids’ clothing on the site—about fifteen

thousand items—that were listed by thredUP members before we could

effectively begin trading. Why? Because our hypothesis was that the

absolute worst experience would be browsing, looking for a box of new

clothes for your child, and not finding anything. If that was your first

experience, we thought you might not come back. So we needed real

“boxes of clothing” already listed on the site. You must create the impres-

sion there is “lots going on”—for example, why do nightclubs keep lines

outside even though the place is empty inside? Why do restaurants sub-

sidize early diners and happy hour folks? People respond to action; they

want to be where the party is.

Classic two-sided market theory says you need to subsidize one side of

the transaction to effectively make markets work. eBay made it free for

buyers and they charged sellers (a twist on the old consignment model,

where shops took a cut for selling your items). We took the opposite ap-

proach. The general operating procedure in the secondhand clothing

market was hand-me-downs or donations, so we were competing with a

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Technology 179

powerful “free” option. Our choice was to subsidize sellers by giving

them credits toward future selections by being first in line. We ap-

proached folks and said, “Hey, don’t just give that great clothing away!

We’ll give you real money, and let you exchange stuff that doesn’t fit your

kid for clothes that do.” If you were an early founding member of

thredUP, we paid you (generously) to use the site. The price? Thirteen

dollars per box. And we’d even send you the boxes.

4. Eliminate key friction.

After launch, things were going well, but the one major hurdle we had

anticipated, but couldn’t quite crack, came back to haunt us. When you

registered for thredUP, you were redirected to the U.S. Postal Service

website to order the free medium flat-rate boxes. These were the boxes

you would use to ship to thredUP. But the Postal Service’s site was not

easy to navigate, so many members—excited about thredUP—had a dif-

ficult time getting the proper boxes to use the service. If marketplace li-

quidity was driven by the number of new boxes of clothing coming

online, we had to make it easy for people to get the boxes they needed, or

this would be a huge problem.

A short story to illustrate why you need to keep thinking creatively:

we’d been working with the U.S. Postal Service for some time on a distri-

bution strategy for the boxes. We’d hoped that since we were using the

Postal Service’s most lucrative shipping option (for them), it would be

helpful in getting boxes into the hands of our customers. That just wasn’t

the case. We had to somehow force the Postal Service’s hand. So . . .

every time a new person registered we’d create a “Turk job” through Ama-

zon’s Mechanical Turk service and have someone (usually in the Philip-

pines) order boxes on behalf of the registrant. In just a few days, Turks

were ordering thousands of boxes a day. Finally, someone from the Postal

Service’s distribution center contacted us and said, “Why don’t you just

send us a file of where you need these boxes sent and we’ll take care of

it; just please stop having Turks create all these new accounts!” Perfect.

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180 PASSION AND PURPOSE

“We’re in,” Eric Paley said. One of the early skeptics, Paley agreed that

thredUP’s early results were exciting. He joined Patricia Nakache of

Trinity Ventures—who led the round—and two other firms in thredUP

Series A financing of $1.4 million.

Just a couple of months after the financing, thredUP members were

exchanging more than fifteen thousand articles of kids’ clothing a week.

This new marketplace, literally built from scratch, was finding its legs.

Online technology continues to shift rapidly, but the fundamentals of

building great companies haven’t changed all that much. As the next

generation of business leaders, it’s important to keep a few principles in

mind. First, solve a real problem—and solve it well. Think hard about

how people hear about what you’re doing, because distribution really

matters (a word of caution: PR � distribution). Especially online, there

are communities and enthusiasts for everything. Find these communities

and harness their authority online to get others to buy what you’re sell-

ing. Finally, make sure you’ve solved the key things that break your busi-

ness. They are not parts of your planning to avoid—every business

breaks on a few dimensions; know yours better than anyone else.

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Technology 181

Technology and Social Good Loans, Relays, and the Power of Community

SHELBY CLARK graduated from Harvard Business School in 2010.

Prior to HBS, Shelby received a degree in biomedical engineering

from Northwestern University. After serving as a director at Kiva, he

started RelayRides, the world’s first peer-to-peer car-sharing ser-

vice backed by Google Ventures, where he now serves as CEO.

Shelby is passionate about companies with a cause.

It’s a small world. And it’s getting smaller. By making it possible to easily

make a connection with billions of people around the globe, the Internet

has eliminated the notion that a neighbor is someone who lives next

door. My career has focused on this principle, and has explored ways to

connect people online for the greater benefit of society. I believe the

question that could both define and challenge our generation is: how can

we leverage online connections to generate offline impact?

As we find new ways to answer that question, the world will become a

smaller, and better, place. I’ve thus far worked toward this goal in two

fields—finance and transportation—but countless other opportunities

remain.

My quest was inspired while helping to build a young nonprofit start-

up called Kiva.org. Kiva connects people in the First World with a few

extra bucks to microentrepreneurs in the developing world who need a

small loan to start a small business—selling baked goods, say, or running

a general store. A decade ago, nobody thought sane people would loan

total strangers halfway across the globe hard-earned money on nothing

more than a simple promise to repay. Now they do. Technology has em-

powered people to develop relationships, reputations, and trust with the

“strangers” they fund, and Kiva has quickly become one of the

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www.kiva.org

fastest-growing nonprofits in history—on target to raise about

$100 million in loan capital in its fifth year of existence.

I then took what I learned at Kiva and moved on to my next challenge,

tackling the consumption and environmental concerns associated with

cars and traditional car ownership. RelayRides, a company I founded in

2008, is built on those same principles that made Kiva thrive. Say that

one of your neighbors has a car sitting idle, while at the same time you

need a car. It seems like a logical conclusion that you two should be con-

nected, but without technology this would not be possible. RelayRides

provides a simple interface to find the neighbor with the car you need, at

the location and time you need it. RelayRides also integrates in-vehicle

technology, which eliminates the need to exchange keys, making the

transaction convenient. We also provide a bilateral rating system that

keeps both owners and borrowers honest and respectful of the commu-

nity. While these needs and general concepts have existed for decades, we

could never have built the business without the advent of new technology.

From these past experiences I’ve noticed that a few of the same

threads create a fabric of new and innovative ways to connect people for

the betterment of society. Specifically, a service should think offline, es-

tablish trust, and empower its community.

Think offline. As the Internet has grown, more opportunities have

emerged to connect with others online to establish or improve relation-

ships, or to find and disseminate information. However, there have been

only limited ways to translate online interaction into offline impact. Both

Kiva and RelayRides have leveraged the Web to create new ways to con-

nect offline resources, money, and cars, respectively, when connections

could not have been made previously. Kiva represented the first opportu-

nity for the average consumer to connect directly with a microentrepre-

neur halfway across the world. It allowed the lender to learn about the

borrowers’ personal situations and needs, and created a safe and easy

way for the lender to contribute to borrowers’ loans.

RelayRides has an even more tangible and visible relationship to the

offline world. It’s easy for borrowers to see the thousands of cars sitting

182 PASSION AND PURPOSE

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Technology 183

idle in their community. However, there was no way for them to leverage

the idle resource. Car owners had no idea that people in their neighbor-

hood would pay them to use their cars when they would otherwise be sit-

ting on the side of the street, and even if they did, they lacked the

infrastructure and insurance to make the connection possible.

Establish trust. In a world where strangers used to be anonymous, the

Internet has given people an identity. Reputation systems are incredibly

powerful tools to establish trust where none previously existed. People

must know that they will be held accountable for their actions, and that

disrespecting the community will neither be tolerated nor go unnoticed.

Kiva prominently displays the repayment rate to a lender considering mak-

ing a loan. Defaulted loans never disappear from the system, helping to en-

sure that loans continue to be repaid. To date, Kiva’s repayment rate is a

staggering 98.9 percent—something the average bank would kill to have.

Similarly, RelayRides has developed a robust peer-to-peer rating sys-

tem. Before borrowers choose to borrow a car, they can check what others

said about it. If a car owner doesn’t keep the car clean or well maintained,

borrowers will know that, and the car owner will consequently enjoy

fewer rentals. In addition, borrowers are held responsible for their ac-

tions, and may be banned from the community for returning cars late or

dirty. By creating a reliable system that keeps members responsible for

their actions, the quality of the service is enhanced, but more importantly,

members know they can trust the service and, in turn, the community.

Empower the community. One thing I learned at Kiva and quickly saw

at RelayRides is that the community is smarter, more creative, and more

effective than any company can be. When a service relies heavily on its

members, it must give those members a way to be heard and drive the di-

rection of the service. Kiva did not realize this early on, so its passionate

community created Kiva Friends, an independent way to organize and be

heard. Kiva Friends is a forum where the entire imaginable gamut of Kiva

issues is discussed, from marketing strategies to conversations about

quirky loans. Kiva Friends also created a number of useful tools that Kiva

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184 PASSION AND PURPOSE

didn’t provide, such as Kiva Toolbars with links and RSS feeds. It was

also a mechanism for lenders to band together to protest when Kiva

made a decision the community didn’t like.

My favorite story about Kiva Friends tells what happened when some-

one noticed a loan they felt was inappropriate: seemingly funding an ille-

gal activity. Kiva Friends organized an around-the-clock schedule for

members to put the loan in their checkout basket, without actually com-

pleting the “purchase” of the loan, thus preventing anyone else from

funding the loan. For over twenty-four hours, Kiva Friends passed

around responsibility for blocking the loan, taking turns as it subse-

quently expired from each member’s pending checkout basket. The com-

munity would not cease until Kiva finally removed the loan.

I learned this principle—the unstoppable power of community—at

Kiva, and continue to think of ways we can leverage our RelayRides com-

munity to get smarter and provide a better service. Regardless of the

amount of research we do, we’ll never understand a neighborhood as well

as someone who actually lives there. We’ve developed a RelayRides

Ambassador program, which allows someone to self-organize a critical

mass of members (four cars and fifty borrowers within a one-mile radius);

once that legwork is done we’ll come in and set up the service. The Re-

layRides ambassadors understand their own community, what their needs

are, and the best way to spread the word—all things that would waste time

and money for RelayRides to figure out on its own. The result is a better

service for members, more communities with better tailored coverage, and

fewer impediments and unnecessary costs for RelayRides as a business.

While communities have long been a part of some companies, it’s

clear to me that this connection is the future of business. Cultivating

and leveraging communities makes clear sense for the bottom line be-

cause it provides better service and coverage at a lower expense. In addi-

tion to potentially being profitable, it is good for the community. As our

world becomes more fragmented with the myriad diversions and divi-

sions that seem to be splitting people apart, a renewed emphasis on asso-

ciation and commonality is absolutely critical. And it is my thought that

by leveraging this latent desire for community, it’s not only businesses

that can flourish, but also the people they serve.

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Mobile Millennials

JASON GURWIN is a serial entrepreneur. After graduating from

Wharton with an economics degree, Jason started two successful

companies in the media and entertainment space. He graduated

from Harvard Business School in May 2011 and now serves as CEO

of Pushpins, the mobile coupon company he cofounded while at

Harvard. He is passionate about the power of mobile applications

to change people’s everyday lives.

I was sitting in a wooden outhouse feverishly trying to get a signal before

anyone could catch me. It was the summer of 2000. For the sixth con-

secutive year, I was at sleepaway camp in Casco, Maine. As a geeky over-

weight fourteen-year-old, spending the summer in the great outdoors

was not my top choice. I had been using the Internet since the days of

CompuServe and Prodigy, and being away from it for a whole month was

a struggle. If you were to ask my bunkmates about that summer, you

would probably hear the story of the kid with the “bowel issues.” But if

you dug a little deeper, you would get a slightly different story of my

repeated trips to the bathroom.

Finally, it connected. In poured the world’s information. My AOL

e-mail, the score of the Yanks game, news of the latest Survivor castoff.

And this was all from a toilet in the middle of nowhere! This was before

any smartphone or even a handset with a text Web browser. It was

thanks to my Omnisky external wireless modem tethered to the back of

my Palm V PDA.

For months, I had been saving up for the device. From the moment I

cashed in my life savings, I was hooked. Today, having the power of the

world’s information at your fingertips seems trivial, but back then it was

remarkable. Despite being among the earliest of adopters, I could never

have imagined how disruptive mobile would become.

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186 PASSION AND PURPOSE

Originally, mobile phones merely duplicated the desktop online experi-

ence. Today, technology built into smartphones capturing location, motion,

touch, and video combined with a consistent Internet connection has

changed the way we interact with content, people, locations, and even

physical objects. From place-shifting live television using SlingPlayer

Mobile, microblogging on Twitter, checking in on Foursquare, or interact-

ing with products with my company, Pushpins, these innovations have

turned the mobile device into the digital layer on top of the analog world.

Besides a twelve-month lapse in judgment as a management consul-

tant, I am a serial entrepreneur and I always will be. Instead of artwork,

my bedroom is covered in whiteboards with mockups and ideas—some

good, others ridiculous (anyone want a box of investment banker trading

cards?). My first two companies helped solve time-consuming problems

for TV networks and movie studios. They brought in more than just beer

money, but were not big enough to change the world.

Coming to business school, I wanted to create a company that could

revolutionize an industry. So in fall 2009, with three section mates, I

started a next-generation mobile coupon company called Pushpins. It

was clear to me that the coupon market was ripe for disruption.

In fact, every year 285 billion paper coupons are delivered by brands—

the same way it was done over a hundred years ago. While there have been

attempts to shift coupons to digital delivery, requiring either at-home print-

ing or text messaging, this has become only a tiny fraction of the overall

coupon market. Why? Rather than creating a new type of promotion specif-

ically designed for the mobile platform, companies were trying to create the

digital “paper” coupon, without having the same scale as paper distribution.

So we created the “pushpin,” a targeted-location-based promotion dig-

itally tagged to the physical barcodes of products in stores. Shoppers can

scan the barcodes of their favorite products and redeem rewards or sav-

ings directly on their phones. The savings is then automatically credited

to the shopper at checkout. With smartphones expected to outpace

feature phones by the end of 2011, the technology and distribution nec-

essary for this market to change will be in place.

While building Pushpins, I have come to appreciate how difficult it is

to shift a traditional experience to a mobile one. With the potential to

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Technology 187

digitally interact with millions of people at any moment—how should you

do it? By understanding mobile’s relevance to your business and by taking

advantage of its uniqueness as a platform, you can develop a deeper con-

nection with your customers than ever before.

Ask yourself WWAD: What would Apple do?

Lesson: Design a unique experience for mobile. Leverage mobile technology, but don’t abuse it.

A bad mobile strategy is purely duplicating a desktop Web app on mo-

bile. Companies must take advantage of smartphone technology to make

the user experience even better than the desktop counterpart.

Apple is the master of this. If you look at any of its applications, like

Keynote or iMovie, they are completely reinvented for mobile. For in-

stance, Keynote for iPad heavily relies on multitouch gestures. You can

resize a graph with a pinch or edit it with a double tap. In iMovie for

iPhone, movies are automatically edited based on themes, instead of

manually cut by the user as in the desktop version.

It’s about taking advantage of differences not only in software, but also

in hardware. With Pushpins, we use the phone’s camera as a barcode

reader. This makes it easy for users to interact with products in the store.

Sega uses motion sensing controllers for games like Super Monkey Ball.

Bump allows you to pass your contact information by identifying your

proximity to another user’s phone. Ocarina uses the microphone to cre-

ate a digital musical instrument.

When it comes to defining the user experience, focus on utilizing

the platform to improve the customer’s interaction with the world

around them. There is a tendency, especially for the business-minded,

to include anything and everything. Because more is obviously better,

right? Wrong.

Take Copy and Paste. They are such simple features, but weren’t inte-

grated until two years after the release of the original iPhone. Why?

Apple needed to redefine it for a touch interface. Design your app with

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188 PASSION AND PURPOSE

that mentality. How can I simplify the experience for my users? It’s not

by giving them everything, it’s understanding how your value proposition

is different on a mobile platform and delivering it using the best features

of the smartphone. Don’t create the digital “paper” coupon; create a

“pushpin.”

Mobile is everywhere . . . are you?

Lesson: Stay consistent to your brand, but be creative in your execution.

It is important to understand what mobile really is. At its core, it is a sec-

ond screen. It is a dashboard to everyday life that makes every moment

an online experience. Mobile allows companies to keep customers en-

gaged whenever, wherever.

For brands, this means you can grab user mindshare at any moment.

ESPN Scorecenter sends push alerts of score changes of your favorite

teams. Nike+ makes the Nike brand a core component of your running

experience. Kraft iFood Assistant gives you recipes with Kraft products

when you’re preparing a shopping list. As a brand you must maintain the

relationship with the consumer on the go.

Mobile also creates the opportunity to gain access to users in places

you couldn’t before. For example, Pushpins pushes shoppers’ savings in-

aisle rather than having users clip or print coupons at home. A restaurant

review site could provide information on the top dishes to simplify

choosing a meal. A sports team could deliver live video of other relevant

games to enhance the in-stadium experience. A hotel could allow guests

to check out directly on their phone. A TV network could provide real-

time chatter to viewers of their show.

Mobile can display all the relevant information that could not be up-

dated in real time in the physical world. Before you were working with a

static billboard; now you are working with an interactive display. Take

advantage of it.

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Technology 189

Is mobile core or supplementary to your business?

Lesson: Focus on the consumer experience. A big brand can drive initial downloads, but a bad consumer experience will prevent repeat usage.

For companies like eBay and Electronic Arts, it is a core component. For

others, like Delta Air Lines or Pepsi, it is more supplementary. If it is

supplementary, you face the difficult decision of whether to integrate

with successful applications or make your own. Pepsi, for example,

elected to go the “make” route, creating its own location-based game

called Pepsi Loot rather than rewarding people on Foursquare.

While building Pushpins, we grappled with this very issue when talking to

numerous large grocery chains. Every conversation involved the same ques-

tion: why should we support your application instead of creating our own?

It is natural for a brand to want to own the customer experience.

However, there is a tension between what companies want and what

consumers want. Companies want a fragmented app experience; con-

sumers want a consolidated one. For example, we allow shoppers to use

our platform in fifteen hundred stores nationwide. Imagine if instead of a

single unified app, we licensed our technology and shoppers had to

download a different application for each retailer. Ultimately, if a partner

can drive your brand better than you can, let them!

How can you take advantage of your consumer’s hardware?

Lesson: Let the consumer make the hardware investment, not you!

Smartphones are powerful pieces of hardware. Given the abundance of

smartphone users, companies can often shift the cost of hardware from

the business to the consumer. Instead of installing a price checker

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190 PASSION AND PURPOSE

in-store, allow shoppers to find prices on their phones. Instead of in-

stalling paper ticketing machines, send users scannable boarding passes

or movie tickets. Instead of having waitstaff, allow users to order food via

an app. Instead of having parking meters, have users pay directly on their

phone.

Before building expensive technical infrastructure, consider whether

you could instead run software on the consumer’s hardware. It can pro-

vide a huge cost savings and does not deteriorate with age.

Mobile creates a compelling opportunity for everyone from fifteen-

year-old app developers to large Fortune 500 corporations. Similar to the

introduction of the Internet, it has taken time to evolve. When you think

back to the launch of the iPhone app store, the app selection was limited

at best. When developers finally understood how to take advantage of the

hardware, it revolutionized the way people could interact, consume, and

create content.

It’s nearly impossible to predict where mobile will go in the future with

annual hardware overhauls and subsequent software enhancements.

However, it certainly will be more social and interactive. Regardless of

what the future of mobile entails, it’s key to stick to the fundamentals.

Delight the consumer. Make the experience unique. Be creative in your

execution. Make the experience contextually relevant. Leverage your

users’ existing hardware. Most important, though, you must understand

that mobile is everywhere. It’s at your favorite baseball game. It’s at your

local grocery store. And it’s even at that small wooden outhouse in Casco,

Maine.

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Technology 191

INTERVIEW WITH . . .

Joe Kennedy CEO of Pandora

Joe Kennedy shares his key lessons learned across numerous tech-

nology companies, provides insights on generational differences

he’s observed, and talks candidly about learning from mistakes.

What learnings did you take from your previous work experiences and how did they help you at Pandora?

1. The value of focus: Spending many years in a very large organiza-

tion taught me the value of focus. How is it that a small, young

company with very limited resources has any chance of beating

large established companies with all sorts of resources? Focus.

The power of an entire team of people spending all of their time

and energy working to achieve just one thing. In early 2005, we

rolled out the vision to transform the B2B company then known

as Savage Beast Technologies into Pandora, a personalized Inter-

net radio service. One of the engineers asked, “How do we think

we can ever beat Yahoo!, MSN, and AOL [the leaders in Internet

radio at the time]?” The answer: they have far more resources

than we have and they have established market positions . . . but if

all of us focus all of our energy on being the best in the world at

just this one thing, we can beat them.

2. Fueling customer enthusiasm: Saturn taught me the incredible

power of unexpectedly good customer service. Just as Saturn own-

ers were amazed to shop for a car and not face haggling over price,

I’d like to think that Pandora users are impressed that a free ser-

vice offers such responsive and friendly listener support. One day

back in 2006, a listener sent an e-mail seeking help getting

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192 PASSION AND PURPOSE

Pandora to work on his AirPort Express. Within twenty minutes he

had a friendly e-mail back detailing exactly what he needed to

do—instructions that worked out perfectly for him. It’s something

that happened thousands of times a month—but he was so im-

pressed that he wrote back and asked if we happened to be look-

ing for any investment. To make a long story short, he ended up

leading a large investment round. While this outcome makes for a

great story, what really matters to us is that our approach to serv-

ing our listeners adds fuel to their enthusiasm—enthusiasm that

often leads to word of mouth, further fueling our growth.

3. Leadership diversity: Fresh out of business school, I remember the

irresistible desire to surround myself with others with a similar

background. It took some time for me to learn that hiring in your

own image and likeness ultimately means hiring people who share

your strengths, which can be fun, but also means hiring people

who share your weaknesses and your blind spots, which is often

deadly. While it’s easy to say and understand, it’s hard to bring this

thought into practice: the best team is one that has widely differ-

ent talents and experiences yet shares a sense of common purpose

and mutual respect.

As CEO of a company that encourages the sharing of music between friends, you must hold social networking close to your heart. What are the major social networking trends you see in the next five to ten years?

The only prediction one can make after watching the past fifteen years

of Internet development is that society will become more and more

networked. Those who thought they knew exactly how this megatrend

would play out have been proven wrong over and over again—just ask

the people at Friendster and MySpace who thought they had caught

lightning in a bottle . . .

We’re seeing the rapid rollout of location-based applications, most notably Foursquare and, recently, Facebook Places. What is your view

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Technology 193

of the evolution of this space? Do you see m-commerce someday overtaking e-commerce?

Mobile connectivity is changing and will continue to change life and

society, but we’re still in the top of the first inning. Mobile commerce

is already growing at a triple-digit annual pace.

As you hire new recruits at Pandora, what do you see as the most profound changes between this generation of young adults and previous generations?

There have been three big changes that I can see.

The first change is the blurring of the line between the “workplace”

and the “not-work places” in our lives. Work-life balance used to hinge

on the physical, place-based separation of work and not-work. The

great challenge and the great opportunity we face today is the ability

to work almost any time and any way. The newest adult generation

seems to embrace the opportunity side of this, approaching work more

flexibly in terms of when and where it takes place.

The second change is the adoption of a view that sees a career as

consisting of a series of many different employers. I don’t know of any

young adults today who look to find a single employer for their entire

career—or even have the view that their career will involve only two or

three employers. Many employees seem to embrace the opportunity

to take responsibility for their own career development, building their

skills and experiences throughout their working life.

The third change is the preference to get to work without hopping

into a car. Today’s young adults have embraced city living to a far

greater degree than their parents and grandparents. Mass transit fits

this lifestyle—and many choose to not even own a car. Combined

with everyone’s growing concern about the environment, jobs that re-

quire hopping into a car are less attractive than those that can be

reached by walking, biking, or mass transit. I was talking with a real

estate developer in the San Francisco Bay area who observed that al-

most all of the office buildings on the peninsula south of the city are

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194 PASSION AND PURPOSE

now in the wrong place: close to the Route 101 freeway but away from

the mass transit lines that the new generation wants to take to work.

What are the three biggest mistakes you’ve made in building your companies? How would you do things differently if you had your time over?

The biggest mistake I’ve made in the time I’ve been at Pandora was

very early on. As we were approaching launch, we prioritized launch-

ing a subscription version of the service over an ad-supported, free to

the consumer version. It’s not just that this decision proved—

quickly—to be wrong, it’s that, in retrospect, I think we made the de-

cision for the wrong reason. No one on the team had ever been part of

an ad-supported company before and I think we were somewhere be-

tween ignorant and afraid. The right answer could only have come if

we had had a full set of experiences and perspectives in the room—

but instead we made the decision that I think we were just more com-

fortable with. The good news is that we were raising a new investment

round and the investor we ultimately picked was a very strong voice in

favor of prioritizing the ad-supported free version. He made a solid

case and, to our credit, we listened and changed course—and hired a

very experienced ad sales executive to be part of the senior leadership

team.

At E-LOAN we made one of the classic mistakes that young, cash-

flow-negative companies make: raising less money in good times than

we could have because we believed that the company would continue

to improve, and thus additional money could be raised at a higher val-

uation at some future point in time. The flaw in our thinking was not

that company performance would improve—in fact it did; rather, the

flaw was the belief that valuation is driven by factors intrinsic to the

company rather than extrinsic. Despite the company’s significant

improvement, the deterioration in investment conditions resulted in a

valuation roughly 75 percent less than what the company was able to

command in strong market conditions. The harsh reality is that overall

investment and economic conditions often affect valuations more

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Technology 195

than company performance. If a company is cash flow positive, there

is much less risk associated with the timing of fund-raising; however,

if I ever find myself in a cash-flow-negative company again, I would

start by thinking about how much money it needs to go from cash flow

negative to cash flow positive assuming bad economic conditions (e.g.,

a recession) and then try to raise double whatever amount that calcu-

lation shows.

While E-LOAN ultimately turned out to be quite successful, grow-

ing from $20 million to more than $150 million in annual revenue

(with solid profitability) over the course of my years there, in truth it

was quite a struggle. I think the reason it was a struggle is that we fell

into a trap that other smart young MBAs might be prone to falling

into: assuming that the rational appeal of what we were offering would

drive consumers and those helping them (e.g., realtors) to embrace it.

In truth, the financial and emotional magnitude of the transactions we

were involved with (home purchases) meant that a purely rational ap-

proach would leave us blind to some very important emotional consid-

erations. Yes, we could save people thousands—often tens of

thousands—of dollars over the course of their mortgage, but con-

sumers took great comfort from having a local mortgage broker whom

they could see and touch—and realtors loved having a local person

they knew they could light a fire under if and when the need arose.

In truth, changing consumer behavior is really hard. It’s not just about

the rational benefits the change may bring; the cost, particularly the

emotional cost, of change can never be underestimated.

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CHAPTER 6

Learning Educating Tomorrow’s Leaders

Five years from now, on the web—for free—you’ll be able to find the

best lectures in the world. It will be better than any single university.

—Bill Gates1

By many conventional measures, the next generation is one of themost educated in history, and young businesspeople are certainly looking to educational experiences, within and beyond their everyday

jobs, to make them better managers and leaders.

Yet there’s a growing feeling among young business leaders that current

learning models are not enough. Because of the rapid pace of technologi-

cal development, increasing globalization, a more uncertain economic

outlook, and myriad other reasons that will make future careers look dras-

tically different from those of the previous generation, young leaders are

increasingly embracing newer and more diverse ways of learning. After

all, they’re preparing themselves for jobs that probably haven’t been in-

vented yet. There’s the somber recognition that the skills built over a

lifetime—in universities, internships, and the first job—are no longer

enough to prepare them for a more complex and uncertain world. Given

this realization, how are young leaders learning to lead? How do they like

to learn?

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198 PASSION AND PURPOSE

Arguably the two places that have the most impact in helping young

business leaders develop the competence and character to succeed, espe-

cially in the early years of their careers, are business schools and the

world’s corporations. This is not to say that other experiences are any less

valid. As this chapter highlights, entrepreneurship also offers significantly

valuable learning experiences if approached the right way. Nonetheless,

business schools and corporations stand out because the large majority of

young leaders cut their teeth in these places early in their careers. Both

play formative roles in helping young people gain early experiences that

enable them to develop a sense of purpose and to exercise their passions

in concrete ways. Indeed, in our survey of five hundred current or recent

MBAs, work experience in a consulting firm, investment bank, or operat-

ing company and a stint in business school rank as the top places where

young people feel they learn the most about being a leader.

Business Education: From Profits to Purpose

Graduate business schools don’t have a monopoly on developing leaders,

nor should they. Yet they are rare among educational institutions for ac-

tively emphasizing leadership development in their curricula. The world’s

business schools profess developing leaders as their central institutional

purpose. Harvard Business School, for instance, proclaims that its mis-

sion is “to develop leaders who make a difference in the world.” The mis-

sion of the Stanford Graduate School of Business is “to create ideas that

deepen and advance our understanding of management and with those

ideas to develop innovative, principled, and insightful leaders who change

the world.” Founded in 1881, the Wharton School at the University of

Pennsylvania was the first collegiate school of business, and was inspired

by Joseph Wharton’s vision to educate the “pillars of the State, whether in

private or in public life.”

Business schools possess enormous scale in helping build better lead-

ers, and are gaining in prominence. There are now 12,807 institutions of-

fering business degrees worldwide. Almost 850,000 business degrees

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Learning 199

were conferred in 2007–2008.2 In 2007, 150,000 graduate business de-

grees were awarded in America alone, compared to 5,000 in 1950.3 This

is more than three times the number of law degrees and eight times the

number of medical degrees. In India alone, 1,600 schools offer the two-

year MBA. And interest in the MBA continues to grow. In 2009, the

GMAT exam was taken a record 265,613 times, and Harvard Business

School received a record 13,000 applications.4 Despite the outrage di-

rected at MBA graduates during the global financial crisis that began in

2008, the degree is still seen by most as a ticket to upward mobility. It re-

mains one of the world’s most coveted stamps of approval, especially in

the developing world, where there is a dearth of qualified managers.

These institutions are influential. What are they teaching?

Business schools have traditionally excelled at teaching core knowl-

edge. Witness the plethora of course offerings that cover everything from

the basics of finance and marketing to entrepreneurship and private eq-

uity. But business schools have recognized that to remain relevant, they

have to do a better job of helping graduates develop two other key traits of

successful leaders: practical skills and a higher sense of purpose. As this

chapter shows, young business leaders themselves clamor for these

changes, and as a result, there are a number of implications for graduate

business education.

First, business schools are now asserting a greater role in teaching val-

ues, character, and higher purpose. When Nitin Nohria became the new

dean of Harvard Business School in 2010, he argued that business faced

an inflection point because of a “crisis of legitimacy.” Nohria explained

how business schools must play a stronger role in teaching both “compe-

tence” and “character.”5 Today’s twenty-somethings grew up believing that

they can do well by doing good, and Nohria is right to recognize this shift.

Most of all, they believe that leadership can be learned, and that it almost

always takes years of self-reflection, discipline, and intense practice.

Second, business schools are doing a better job breaking down the wall

between the classroom and the real world. Young leaders are learning by

doing, and opportunities to take the MBA experience out of the class-

room and to the local community, to industry hubs such as Silicon Valley,

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200 PASSION AND PURPOSE

or to countries around the world have now become the norm. This is not

entirely new. The late C. K. Prahalad, for instance, helped his students at

the University of Michigan work on projects with companies around the

world. What is different now is how business schools are bringing this ac-

tivity from the periphery to the core of their curricula. Each year, hun-

dreds of HBS students participate in field-based learning—such as

country immersions, company field studies, and individual student field

research. Schools are also doing a better job teaching and encouraging

entrepreneurship. Today, more than two-thirds of U.S. colleges and uni-

versities teach entrepreneurship.6

Third, business schools are more focused on interdisciplinary skills, in

recognition of the integrative nature of business. As Richard Barker ar-

gued in an article in the Harvard Business Review, “The skill of integration

is the distinguishing feature of a manager and is at the heart of why busi-

ness education should differ from professional education. The key is to

recognize that integration is not taught but learned. It takes place in the

minds of students rather than in the content of program modules.”7

Learning to Lead in the Real World

Beyond business schools, corporate training and development have be-

come a much more crucial ingredient in the professional satisfaction of

the next generation of leaders.

Undeniably, the next generation will want to continue learning in the

workplace. For most, joining an established management program in a

recognized operating company, consulting firm, or investment bank will

remain attractive choices after business school. In the MBA class of

2009, 57 percent of HBS graduates joined the consulting or financial

services industries, and we don’t see this drastically changing in the next

few years.8 Next-generation leaders still value corporate experience as a

significant platform for learning.

In our survey, 61 percent agree or strongly agree with the statement,

“I find corporate training and education programs crucial to my

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Learning 201

professional development.” Indeed, virtually all our contributors found

value in the experience of working for an established company with a

strong set of mentors. Those who agreed that leadership can be taught

ranked work experience in a consulting firm, investment bank, or operat-

ing company among the top three most important places where they’d

learned leadership (see figure 6-1).

Corporate training is a big business. The largest companies, such as

GE and AT&T, spend up to $1 billion annually on training alone.9 The

quality of development programs has a direct impact on employee reten-

tion. In a Louis Harris and Associates study, 41 percent of employees who

had poor training opportunities planned to leave within the year. In con-

trast, only 12 percent of those who felt their company provided excellent

opportunities planned to leave.10

What does this mean for young business leaders and managers respon-

sible for supporting the growth of a strong pipeline of leaders?

An employee’s fit and alignment with an organization’s purpose have be-

come paramount. We touched on the concept of the “whole person” in an

earlier chapter. The next generation of leaders no longer sees a silo that

separates professional and personal worlds—for them, work is an expres-

sion of individuality and personhood. This has an immense implication for

0 5

Work experience in a consulting firm or Investment bank

The most important places where I feel I’ve learned the most about leadership and being a leader are:

Work experience in an operating company (P&G, GE, Coca-Cola, etc.)

Family

Nonprofit organizations

Percent of respondents who ranked option first (n=356)

Business school

10 15 20 25

F I G U R E 6 - 1

Where MBAs say they learned leadership

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employee selection. This means corporations, nonprofits, and even public

sector organizations will have to do a better job of making sure potential

employees clearly align with the organization’s values, purpose, and cul-

ture. For many millennials at the beginning of their career, work is also

about being in a place where they can discover a sense of purpose. They’re

buying into not just a job or a prestigious training program but also a belief

system that guides their future choices. Companies such as P&G, McKin-

sey, and IBM, for instance, are famous for corporate identities and value

systems that cut across traditional cultural and national lines.

Young leaders expect to learn as much about themselves as about the

job in the early years of their career. As a result, learning has become

more experimental, with an emphasis on failing fast early in one’s career,

and using that set of experiences to iterate one’s way to success. It has

also become more self-directed, with young leaders trying out a myriad of

experiences to test their fitness and competence for the challenge at

hand. They understand the importance of mentors—inside and outside

work. It’s no surprise that in today’s start-ups, building a formidable board

has become one of the most crucial tasks of an entrepreneur.

202 PASSION AND PURPOSE

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The Leadership Boot Camp Training the Next Generation of Corporate Leaders

KISHAN MADAMALA is a former store team leader at Target. He com-

pleted his MBA in 2010 at Harvard Business School, where he was

awarded a Rock Entrepreneurial Fellowship. Kishan tells the story of

a whole generation who were trained as “good analysts” but were

poor leaders, and how this learning gap represents the single

biggest opportunity for business schools and corporations.

“This store has so many problems, I have to take a shower after I visit it.”

And with that comment, my boss, the district manager, handed me the

keys to the retail store I was supposed to manage. He wished me luck,

shook my hand, and drove off. Here I was, just a few years out of college,

responsible for three hundred employees and $55 million in sales.

Despite my solid training in store operations, I was not ready for the

demanding leadership test ahead of me.

I’m a millennial. My generation grew up in the nineties, during an

economic boom. Many of our parents did well for themselves and, in

turn, took care of us in every possible way. We don’t know sacrifice as

well as the generations before us. There were no major wars and no deep

recessions during our coming of age. As a result, many of us grew up

lacking a certain toughness and resiliency. I believe what you’ve heard

about millennials is largely true—the limited attention span, the need for

praise and constant affirmation. We are rarely told what we are doing

wrong or how we may have to personally change our behaviors. The over-

whelming praise and positive feedback can propel a young person to

coast along without undertaking any deep introspection. I was a shining

example of this problem.

Learning 203

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Good Thinkers, Unprepared Leaders

Our generation is rising to leadership, and we are unprepared. Prior

to business school, most MBA students were analysts. Historically,

two-thirds of the entering class at top MBA programs have come

from finance or consulting. At best, going through one of these

analyst training programs is an intellectual exercise. Much like an

extension of school, they require participants to gather facts, scope

out possibilities, and suggest answers. Accordingly, the type of

feedback given to analysts is quite different from the feedback given

to executives. In those first few years after college, we were told how

to be more diligent and more careful and thoughtful. Reformat this

financial model or adjust these PowerPoint slides. Our organizations

had a point, though—to develop us into efficient and thoughtful

analysts. This form of constructive criticism unfortunately left us

with a colossal gap in our leadership skill set. Analysis is just one

part of leadership. Executives are given feedback on their style,

their communication skills, and their ability to drive alignment and

execution through a group of people. If we are to give MBAs and

future corporate leaders training in leadership, it is this feedback that

we must provide.

Those of us who earned MBAs spent two years in the classroom

studying marketing, finance, and strategy, among other core curriculum

topics. We even had a sprinkling of leadership and organizational behav-

ior classes. We studied these topics from afar, though. Just as we dis-

sected the strategy of leading global firms, we analyzed the behaviors of

leaders, separating out the correct actions from the incorrect ones. This

decision analysis was far removed from our personal leadership develop-

ment. To succeed in these classes, we didn’t need to be introspective or

reveal anything about who we were. This need for real leadership train-

ing is the biggest challenge and opportunity facing business education

today.

204 PASSION AND PURPOSE

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The “Punk Kid” Learns How to Lead—the Hard Way

In my first job out of college, I was an analyst, and not a particularly good

one. I became bored easily. I was evaluated on the small details of my

spreadsheets and the style of my note writing on the firm’s internal

account database. I felt like I was being trained to be a sidekick, not a

leader, and I was skeptical of whether being good at the former would

really guide me toward becoming the latter. I wanted to learn by doing,

so I decided to try my hand at retail. There, I was lucky enough to stum-

ble into a feedback-rich environment.

My store was a turnaround store. Sales were down from the year be-

fore. Key departments were critically understaffed and underperforming.

Even the building itself was falling apart. Built in the mid-1980s, the

store had been updated only once in the last twenty years. On my first

day, the main water pipe ruptured. We had to shut down the store rest-

rooms and rent portable toilets for our customers—not the most ideal

reflection on new management. Amid all the mess, I walked into that

building every day thinking, “If I don’t change things here, no one else

will.” That awesome sense of responsibility was stressful, but it truly gave

me purpose—a purpose I had not had in my previous desk job.

My predecessor had been let go for not executing well. He was, how-

ever, a favorite among the employees for his overly nice demeanor and

understanding temperament. That history made this particular store

manager position a difficult one to inherit—anything less than overt

friendliness would make me “mean” or “cold” and any push toward

execution, precisely what I was brought there to do, would make me

“demanding” and “unfair.” Was there any way to win?

Within my first month, employees called the corporate whistleblower

hotline to accuse me of plotting to fire half the workforce. A department

supervisor (an employee two levels below me, reporting to one of my

direct reports) yelled in my face in an obscenity-laced tirade, and my HR

manager informed me that several employees approached her, asserting

Learning 205

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206 PASSION AND PURPOSE

that they would not work for some “twenty-four-year-old punk kid.”

Of course, I was twenty-five at the time. If they had only known . . .

All this had a deep personal effect on me. Like many my age, I was

used to following instructions and being liked, appreciated, and re-

warded for doing so. Instead, my actions didn’t please even half the peo-

ple they affected. My behaviors were scrutinized under a microscope.

My impatience became offensive. My failure to listen became a failure

to influence. I had to change my behaviors. My job demanded it.

I grew up more in those two years than in any other period in my life.

I started to get a sense for what it took for me to be a leader. That was a

lesson not learned through any seven-point business book or any man-

agement case study. Leadership, I learned, is deeply personal. It is not

about your output—your slide deck, your financial model, or your re-

search report. It’s not even about your strategy or your vision, so much as

it is about you. The real you. Not the Monday morning you, the Sunday

afternoon you. The unrecorded you. The imperfect, vulnerable, yet pas-

sionate you.

Retraining the Next Generation of Leaders

Corporate America has been left with a big gap in its talent pipeline. It is

the gap between intellectual analysts and self-aware leaders. It is the

divide between knowledge and execution. Knowing and believing in the

right answer is not enough. The recommendation slide at the end of the

presentation is not enough. As HBS professor Richard Tedlow once said,

“You need more than conviction. You need the courage of your convic-

tions.” How can the next generation develop the personal qualities, like

courage, necessary to bridge the leadership gap?

There could be a number of approaches, of course. My experiences as

an MBA student and as a field-based manager of a large team have led

me to believe in one particular solution—we should build a leadership

boot camp. Boot camp is of course a colloquial term for military recruit

training. This training is meant to transform civilians into soldiers by

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Learning 207

simulating the stress of combat ahead of time. Similarly, I believe busi-

ness schools and corporations should simulate the stress of real leader-

ship. This approach would fundamentally change the pedagogical bent

of business schools, but do so with the student’s growth in mind.

Let’s take my friend Rafaela as an example. She’s starting business

school this year after a two-year stint as an entry-level associate at a top

consulting firm. Rafaela has a sharp wit and an endearing smile. She has

a way of charming and disarming nearly everyone she meets. In short,

Rafaela is a star in the making. Still, like the analysts I mentioned earlier,

her work was devoted to honing her problem-solving skills. She never

received any deep, leadership-oriented feedback. Imagine that Rafaela

went through a full semester within the two-year MBA devoted to lead-

ership skill building. It wouldn’t be too difficult to pair her and her fellow

MBA students with undergraduates interested in business. Rafaela

would have the chance to lead a team of five or six undergrads toward a

project goal, something she had never been responsible for previously.

Each week, there would be an assessment of the team’s work, but more

importantly, a chance for Rafaela to gain feedback from her direct re-

ports. They would tell her how motivated they felt by her, how honest

they thought they could be with her, and specifically which of her behav-

iors made them work harder and which frustrated them. The business

school could also recruit a volunteer team of experienced leaders to act

as observers and mentors to Rafaela, providing additional sources of

feedback. One such observer, Clint, the manager of a small local chain

of coffee shops, would tell her that she needed to follow up better with

her employees. Often Rafaela would just assume her directions would be

followed, without bothering to check in later to verify progress. Within

this feedback-oriented forum, Rafaela could learn to correct that slightly

condescending tone she never knew she had. She would gain toughness

by battling through discussions with that uncooperative team member.

She would learn more about who she was, and who she needed to be, to

lead effectively.

To make the program more robust, business schools should operate

more businesses. Relatively simple, nontechnical businesses like the

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208 PASSION AND PURPOSE

campus bookstore, café, or even a car wash could be established with the

goal of letting MBA students learn by running them for a semester.

Again, feedback could come at the students from all corners—

customers, employees, and supervisors. MBAs may think these busi-

nesses are beneath them, but leading them might prove crucial to their

leadership development.

This type of training, if well done, could change the landscape of

MBA recruiting. MBA programs will have produced self-aware, battle-

tested leaders. The consulting and financial firms would continue to

recruit, of course, but new types of companies would also find this skill

set increasingly valuable—the midsize company looking for a new VP,

the small business looking for a potential CEO, and the large multina-

tional operating company looking for a line manager. Operating compa-

nies might be able to lure MBAs away from consulting and finance

because they can bring them in at higher levels and pay them accord-

ingly. The new MBA leadership skill set would justify that upgrade.

Imagine if MBAs were balancing offers to be general managers of a

hotel, or a distribution center, alongside offers of an associate position in

investment banking. In the post-financial-crisis world, a job that offers

real leadership opportunity along with in-the-ballpark pay might have a

fresh appeal.

Of course, business schools don’t have a monopoly on training lead-

ers. Corporate leadership programs must also adapt to keep their talent

pipeline robust and ready. Operating companies can create similar lead-

ership boot camps for their strategy and financial analysts, pairing these

individuals with those in front-line operations. Procter & Gamble gives

its analysts an experience in stores where they stock shelves with the

products they handle. Why not do the same in its manufacturing plants,

giving these promising leaders a chance to run a small part of the assem-

bly line? Consulting and investment banks can partner with nonprofit

organizations to create cross-company training exchanges. Bain &

Company offers pro bono consulting services to nonprofits. Why not

expand this relationship, allowing consultants to be responsible for

managing a food drive or the operations of a homeless shelter?

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Learning 209

In this time of economic uncertainty, leadership of multinational firms

is part of my generation’s calling. Through this recession and reordering

of global economic power, our duty to lead differently is becoming in-

creasingly apparent. We still have time to prepare our generation. Lead-

ers need practice and feedback. Business schools and corporate training

programs should provide both. Our collective future demands it.

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The MBA of Hard Knocks Why Fast Failure Is the Best Thing for Business Education

PATRICK CHUN is a venture capitalist and technology investor at

Bain Capital Ventures. Patrick graduated from Harvard Business

School in 2010, where he was copresident of the HBS Student

Association, the student body of Harvard Business School. Patrick

explains how his greatest learnings at business school did not

occur in the classroom or even result from his successes, but

rather from his failures, and how business education is at a unique

juncture to foster innovation by encouraging experimentation and

fast failure.

“Wow, we failed so much.” These were the first lines my Student

Association (SA) copresident Scott Daubin uttered as we were

preparing our final newspaper message to the entire student body. It was

ten o’clock on a balmy Monday evening, the copresidents of the next

class were taking over in a week, and after working with our successors

for four weeks during the transition period, Scott and I were ready for a

reflective debrief on our time at the helm of the student body.

We looked back on a year of fun but challenging times. We had been

dealt a demanding student body, drastic cuts in sponsorships, and an

administration that was itself facing difficult, inward-facing questions

about the direction of its educational program. It wasn’t all gloom and

doom; after all, we had launched several innovative new events, sold over

a half a million dollars of SA products to help subsidize student costs, and

remained steadfast in our dedication to representing the student voice.

But as we reflected on what we had learned during the year, we could not

help but think about the great opportunity we had to lead, fail, and learn.

210 PASSION AND PURPOSE

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Learning 211

Learning Through Failure

The memories that resonate most loudly with me even now are not the

ones that grace my resume or class schedule. Even the great moments

with friends and colleagues were memorable highlights of a fun time

away from the working world, but concrete takeaways from those experi-

ences are usually lost on me during my daily grind.

Rather, when I think about my two years in business school, I instantly

gravitate to the moments of hands-on learning when my hard work did

not lead to the intended results, and when we had to change direction to

adapt to trying times. These were the times when, after performing the

requisite detailed analysis and consensus building, I felt conviction for a

specific strategy, yet at the end was clearly wrong. These were the times

when I faced a fork in the road, and realized afterward that I had chosen

the wrong path. While many of these decisions and leadership opportuni-

ties happened on campus and were less risky than equivalent ones in the

workplace, they still involved significant risk: financial, reputational, and

relationship implications were often on the line.

Along with the classroom discussions and my pre-MBA experiences,

I feel like the most insightful learning happened when I was able to

implement what I learned, and to learn from both failures and successes.

Whether as a student leader facing a financial or strategic dilemma, as a

fledging entrepreneur building a minimum viable product to test with

users, or even simply as a classmate forging professional relationships

with the diverse student base on campus, the opportunities to fail fast

and learn have provided me with incredible insights into leadership,

strategy, and implementation that would have been incredibly difficult

in the more risk-filled corporate setting that I was in before starting my

MBA.

I strongly believe that the best way for business schools to create

battle-tested leaders and foster innovation is to not only allow students

to fail, but to encourage them to fail fast. My own personal experiences

at business school are testament to the power of failing, adapting, and

learning from those other situations to make lessons stick.

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212 PASSION AND PURPOSE

Facing Failure Head-On

When Scott and I were handed the reins of the student body in April

near the end of our first year, we were superpsyched. We had several

goals in mind, one of which was strategically and financially important:

to raise significant sponsorship money to counteract the challenges of

the worsening economic situation.

In retrospect, we took ourselves down the path of failure from day

one. As we were building our executive team postelection, Scott and I

had what started as a simple idea: why not create an executive commit-

tee position dedicated to raising sponsorship money? Previously, this

fund-raising had been done solely by the copresidents themselves, but

based on talking with a bunch of nonprofits, we knew that such a fo-

cused role could be successful. Plus, we were already looking to fill a

marketing role we knew was desperately needed, and as we rationalized

the role to ourselves, we began to see how the responsibilities of both

marketing and fund-raising could go hand-in-hand. We cavalierly de-

cided to create this new position and did a search for a new “chief mar-

keting officer” (CMO) position that included both of these hefty

responsibilities. After fielding interest from more than fifteen candidates,

we were excited to find somebody we thought was perfect for the job. We

walked her through the role, gave her direction on our targets, and cre-

ated a game plan for the summer.

By midsummer, Scott and I were beginning to face the grim realiza-

tion that we were likely going to miss our fund-raising target. We knew

the challenging economy would make this an uphill battle, and that com-

panies that usually supported our events were tightening their purse

strings, but we began to see where we had clearly failed to think about

elements of our implementation. At the end of the summer, it became

clear to both of us that we were in a serious conundrum: without this

extra funding, we would likely have to cut spending on student services,

which would lead to long debates not only between us but more broadly

with our executive committee on what events or services would need to

be trimmed and how to deal with any backlash.

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Learning 213

Scott and I were facing our first big leadership challenge, and it was

something we would have to solve even before second-year classes

began. By the time we were back in Boston, we had raised only about

20 percent of our upside funding target. Realizing we had not done

enough contingency planning, Scott and I spent three weeks tediously

going through every line of our budget to understand where there was fat

to be trimmed, focusing first on events or product subsidies that were

not broadly enjoyed by the class. We worked with our CMO, starting by

admitting our failure to scope the role correctly, and then moving on to

creating an emergency plan to do follow-up outreach and figure out cre-

ative opportunities for raising money in nontraditional ways. We pre-

pared a communication plan for delivering the budget news to not only

the student senate, who had to approve any changes, but also to the

entire school, sticking to our promises of financial transparency. We also

began work on understanding how this impacted our budget, to ensure

we were clear with the auditors and school supervisors who were tasked

with ensuring we were responsible fiscal stewards. In the midst of fail-

ure, we were learning by doing.

I wish I could say that the fund-raising experience ended on a happy

note—unfortunately, we failed to hit our target and had to readjust our

budget and realign our executive team with the new realities of the situa-

tion we were facing. However, coming out of this experience, and myriad

others like it over the course of the school year, Scott and I got a hands-

on opportunity to lead, learn, and in many moments, fail. We learned a

lot about topics that we were simultaneously covering in our case stud-

ies. Regarding leadership, we learned how we had personally failed to

empower our CMO and provide her with the right tools and support to

succeed with two very different responsibilities. From the recruiting

front, we saw how our “brilliant idea” to create a supercharged role that

changed too many things at once created a situation where we were

stretching one person in too many directions. We also learned about the

nitty-gritty realities of budgeting, dealing with a demanding auditor while

“reporting to” a large group of type-A personalities who would pick apart

anything we brought to them. Much of this we were also covering in

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214 PASSION AND PURPOSE

cases in the classroom: learnings from our first-year leadership, financial

management, and strategy classes would come to mind as I was tackling

these real-world problems. But by dealing head-on with failures like this,

I and hundreds of other student leaders on campus were given a unique

opportunity to take what we learned in class, apply it, and iterate.

Failing at Business School

Ironically enough, however, the personal success that business school

candidates have achieved prior to coming to campus may be part and

parcel of the challenge management education is now facing. Looking at

the backgrounds that populate any top business school campus, you tend

to see a strikingly similar profile: young leaders with strong academic

performance at a reputable university, rigorous job experience requiring

strong analytical and strategic thinking skills, and an amazing breadth of

activities and interests. What’s really ironic about the picture, however, is

the one truly deep learning experience that’s missing from the equation:

failure. Many students build a fantastic resume to get into an MBA pro-

gram, and then get their MBA to secure their spot in a fantastic com-

pany. Risk taking is usually not in the resume, and some may even say

the DNA, of many of these candidates.

“If concepts from books are easy, what’s hard?” asks Seth Godin, the

best-selling business author and entrepreneur. His two-word response:

“doing it.”11 In 2009, Seth began blogging about an innovative free alter-

native MBA program he had developed and was testing with a small

group of aspiring entrepreneurs. After running the experiment for six

months, Seth (himself an MBA) described some of his learnings from

the program, and in not too subtle terms, shared his insight that “knowl-

edge was easy to transmit” and that the academic aspect of the learning

was “not particularly essential.” For young leaders who come from great

academic and work backgrounds and are accepted to top business

schools, it is usually not the analytical toolkit that is missing. Rather, it’s

the actual “doing.” Seth even describes exactly what the word doing

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Learning 215

could mean: “Picking up the phone, making the plan, signing the deal.

Pushing ‘publish.’ Announcing. Shipping.”

I would love to see the curricula of major business schools reshaped to

highlight the self-driven experience, with a focus on not only how to

drive toward success, but also how to recognize and quickly bounce back

from failure. I feel that my greatest learnings from business school came

not from the classroom, but from my varied experience as a leader, entre-

preneur, and colleague. As student body president, I had the opportunity

to test my leadership mettle with a class of 1,800 demanding peers. As

an entrepreneur, I had the opportunity to write a business plan for,

launch, and then shutter a small recruiting venture business. As a re-

search analyst, I had the chance to coauthor a full-fledged business case

and try to implement buy-in on the case with several parties on campus.

Business schools have a unique opportunity to shift their worldview

and see themselves more as an immersive two-year social network plat-

form, fostering a web of multidirectional interactions between students,

classroom learning, professors, and alumni. By combining student lead-

ership opportunities, support for entrepreneurial activity, and school-led

structured group work that provides real business exposure, MBA pro-

grams can give students an opportunity to lead, fail, and learn in a less

risky environment.

Henry Ford, a frequent protagonist in cases I read in business school,

is famous for saying, “Failure is simply an opportunity to begin again, this

time more intelligently.” At a time when the core tools for knowledge and

learning are more readily available, and at a lower cost than ever, busi-

ness schools can create differentiation by helping students move from

just “learning by studying” to “learning by doing.” The next wave of inno-

vative business education will encourage students to feel less risk in

learning by doing, and provide the tools and opportunities similar to what

start-up incubators do for human talent, helping prepare and grow for

life after school.

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The New Corporate Classrooms Training’s Tectonic Technological Shift

MICHAEL B. HORN is the cofounder and executive director for edu-

cation of Innosight Institute, a not-for-profit think tank devoted to

applying the theories of disruptive innovation to problems in the

social sector. He is also coauthor of Disrupting Class: How Disrup-

tive Innovation Will Change the Way the World Learns with Clayton

M. Christensen and Curtis W. Johnson. Michael found his passion in

using technology to advance education in America.

I was a senior at Yale on September 11, 2001. Prior to the events that un-

folded that morning, I did not have a plan for what I would do after grad-

uation. But after that day, although I still had considerable uncertainty

over what I would do with my life, I knew that whatever it was, making a

contribution to society would be an important part of it.

This desire led me to work for David Gergen, a former adviser to four

U.S. presidents, as his research assistant after graduation. Here I had the

chance to track and write about public policy, think about the big chal-

lenges of our times, and interact with a variety of people making a differ-

ence in the world through an array of pathways.

After my time working for Mr. Gergen, I attended the Harvard

Business School and had the good fortune of taking Professor Clayton

M. Christensen’s class for second-year students, titled Building and Sus-

taining a Successful Enterprise. The class changed my life. The theories

of innovation that Professor Christensen taught had so much explanatory

power—from business to one’s personal life—that they literally reshaped

how I saw the world.

While in the class, I learned that Professor Christensen needed a

coauthor for a book about applying his theories to help address the

216 PASSION AND PURPOSE

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Learning 217

struggles of the United States’ K–12 public education system. Because

education is one of the biggest challenges facing the country, I was

excited by the possibility of applying Professor Christensen’s theories

to something so important. I pursued the opportunity, and Professor

Christensen soon signed me up for the project. Little did I know that

working toward transforming the country’s education system from its

present monolithic factory model to a student-centric one would con-

sume my life from that day forward and lead me on my own entrepre-

neurial journey—cofounding the Innosight Institute, a nonprofit think

tank devoted to applying the theories of disruptive innovation to develop

solutions to problems in the social sector, with Professor Christensen

and another classmate, Jason Hwang.

Education and learning are changing radically. New technologies are

shifting the way people consume education. And that shift may very well

occur outside of the K–12 education system first. Corporations and

organizations are leveraging these advances to disrupt old models of

corporate training—and have the potential to improve the learning

experiences of their employees and impact the bottom line in tangible

and significant ways.

The Rise of Online Learning

Online learning is on the rise, and as a disruptive innovation, it has the

potential to transform learning for everyone. Over 4 million K–12 stu-

dents in the United States take online courses.12 In 2010, 30 percent of

high school students reportedly took at least one online course,13 and

projections show that by 2019, 50 percent of all high school courses will

be delivered online.14 In the fall of 2009, over 5.6 million postsecondary

students were taking at least one online course—an increase of 21 per-

cent from the year prior.15 And for some time now, corporations have

been shifting significant portions of their training online.

The implications of these trends for young leaders in their twenties,

managers, and businesses are significant.

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In the past, we treated education as a monolithic exercise. We often

taught in lecture format, and because of the numbers of students in a

given class or training session, we had to teach everyone the same thing

on the same day in the same way at the same pace. This would be fine if

we all had the same learning needs, the same background knowledge,

the same experiences, and the same learning pace.

But that isn’t the case at all. Some master a topic quickly and grow

bored by the repeated explanations in a class; others master the same

topic more slowly and find the teacher or trainer is moving too fast. And

when we move on to another topic or subject, the opposite could be true.

Companies have long acknowledged that their employees differ from

each other in meaningful ways. Just witness the widespread use of the

Myers-Briggs test within many organizations and its impact on how peo-

ple manage.

But if corporations recognize individual differences and if those differ-

ences extend to people’s learning needs, why do firms so often fall into

the traditional monolithic training patterns like mass lectures and one-

size-fits-all training sessions? And why have we endured it?

Until recently, the answer has been that this was really the only viable

and economical way to teach and train large numbers of people. It wasn’t

just corporations that did this; schools embraced a factory model of

monolithic education in the early 1900s when they began mass educa-

tion because it was the only feasible way. Corporations could escape this

model periodically because they had the means to employ tutors,

coaches, or mentors to work one-on-one with employees; but for the

most part, monolithic education has been the norm.

The New Long Tail in Corporate Learning

This is beginning to change. Technology has ushered in an era of “mass

customization” in the arts and manufacturing. Many of us now take it for

granted that there are companies that will design products and services

for the “long tail”—and indeed many of us demand that they do.

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Increasingly, technology, in the form of computer-based or online

learning, has the potential to do the same in education. And the current

tech-savvy generation of corporate employees is likely to accept nothing

less.

Online learning is inherently modular—and therefore it has the po-

tential to customize learning and training for differing individual needs.

Because time is naturally variable in online learning, I can learn at the

pace that makes sense for me. If I understand a concept, I can move past

it. If I don’t, I can review it until I do. I can follow different content

paths to understanding the concept if need be. I’m not held back or

passed over in the online “classroom” because I don’t have to move at

lockstep speed with everyone else in the training.

Furthermore, with online learning, managers can allow people to learn

at the times that make sense for them. They don’t have to interrupt a

work stream because a training session is at a given time and thereby

ruin productivity. In essence, online learning can enable learning at any

time, any place, any path, and any pace.

Corporate Learning in an Age of Disruption

Increasingly, corporations around the world are utilizing this emerging

disruption—and far more quickly than have traditional education institu-

tions. In 2006, for example, a whopping 40 percent of all professional

development for corporations occurred online. This disruption has en-

abled corporations not only to do their training more economically in

many cases, but also, if implemented effectively, to achieve far better re-

sults than they have before.

This emergent model has at least three implications for managers.

In online learning, rather than look for whether an employee has put

in her hours for a given training course, a manager can instead focus on

the outcomes: did the employee master the new information she needed

to learn? Although end-of-training assessments have always been an op-

tion, with online learning, managers can loosen the time requirements

Learning 219

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220 PASSION AND PURPOSE

and just focus on whether a student masters each concept in the course

as she progresses.

The evolving innovations in online learning also create new hiring

and training options for managers. For example, Western Governors Uni-

versity, an online university started by nineteen governors, offers an in-

triguing value proposition.16 Seeing the high incidence of retraining in

U.S. corporations, it approached employers to learn what competencies

new hires ideally needed. Understanding that set of competencies,

Western Governors then asked, “How would we know if someone mas-

tered those competencies?”—and designed appropriate assessments to

do just that. It then found the best online curriculum to train people to

master those assessments. Rather than have students progress by the

arbitrary time units of the semester or the credit hour, which results in

highly variable learning outcomes, Western Governors offers compe-

tency-based degrees, so that a student earns credit or a degree only when

she has successfully mastered the required concepts.

Historically, managers have considered college degrees in making

their hiring decisions, but this is highly imperfect, as a college degree

is not proof of a prospective employee’s knowledge or competency.

College diplomas are only a proxy for competency. With the possibility of

competency-based degrees in the emerging online universities, however,

managers in the future should begin to demand that universities certify

the practical competencies of their graduates so that they can have full

confidence in what their hires will be able to do. This will likely result in

an evolving set of online degrees that focuses on specific business niches

that are much more useful to hiring managers.

In addition, several thousand corporations now have their own corpo-

rate universities, up from four hundred in 1990. And universities such as

Bellevue, which serves students worldwide through its online programs

and is the largest private university in Nebraska, are partnering with

corporations.17 Corporations today spend more than $16 billion on em-

ployee tuition assistance programs; 87 percent of U.S. corporations offer

this perk. But most of these dollars are not spent in strategic ways that

both advance the company’s business objectives and help employees.18

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Learning 221

Bellevue partners with corporations to solve this problem not only by al-

lowing employees to earn degrees from an accredited university, but also

by providing specific and targeted training that furthers a corporation’s

key business objectives, as they’ve done with partners such as the Home

Depot and Verizon.

Bellevue measures the return on investment of training programs like

these to make sure that the investment is paying off for the corporation

as well as the employee—a practice that smart managers should adopt.

For example, U.S. Bank found that improving specific modules of a

course designed to train branch managers resulted in a triple-digit ROI

that increased both demand deposit activity and consumer loan activity.

Finally, in the future, customization of corporate learning will only get

easier and more affordable. Although today third parties create much of

the content, increasingly there will be opportunities for corporations to

create what we call a “facilitated network,” in which employees create

content and others consume it, a trend that will revolutionize learning.

Disruption is often a two-stage process. In the first stage, an innovator

makes a product much more affordable and simpler to use than what ex-

ists currently. But making the product is still complicated and expensive.

This is what has happened in online learning to this point. In the second

stage of disruption, additional technological change makes it simple and

inexpensive to build and upgrade the products.

Is it far-fetched to think that employees not trained in teaching could

effectively create usable content for learning? Not at all. One of the most

exciting findings in education is that people often learn better when they

teach than when they listen. To visualize how this might work, think

beyond the creation of blogs and wikis to an even richer use of Web 2.0

technologies. Platforms that enable nonprogrammers to build remark-

ably sophisticated software for specific purposes are becoming increas-

ingly common in software markets.

There are already signs that this is happening. Sun Microsystems, for

example, launched its Social Learning eXchange (SLX) in 2008 to move

its training to a “Learning 2.0” model. SLX utilizes an informal and collab-

orative approach to learning with user-created content at its core—or, as

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222 PASSION AND PURPOSE

Karie Willyerd, Sun’s chief learning officer said, it is where “YouTube

meets iTunes.” A study compared the use of SLX to traditional instructor-

led training and unearthed some stunning results. First, its use was wide-

spread. It enabled “near instantaneous deployment of critical training

titles versus the time required for course development.” Second, the cost

of developing this content was significantly lower. As a result, the ROI of

SLX was a whopping 7,505 percent. In other words, for every dollar in-

vested in SLX, it reduced the need to invest in Web-based training by

$75. The content created, while shorter, remained of high quality.19

The Future: Not Settling for Anything Less

The revolution that has occurred in every facet of society continues to

drive the discussion around social learning and the implications for lead-

ing organizations. The generation entering the work force today and over

the next many years is likely to want on-demand training built for their

individual needs—and won’t be willing to settle for anything less, as

they’ll see it as a bureaucratic waste of time. Having grown up in just this

kind of world, there is no reason they will check those experiences at the

door of any business, especially as the technology continues to evolve to

better enable learning and eliminate our historical one-size-fits-all ap-

proach. We’ve just brushed the tip of the iceberg, and the results could

be staggering—not just for learning in the workplace, but also for ad-

dressing some of our society’s more pressing problems more broadly. This

is what motivates me every day to continue to push for innovation and

transformation in our education system.

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Tackling Financial Illiteracy

ALEXA LEIGH MARIE VON TOBEL is the founder of LearnVest, Inc., and

serves as its chief executive officer and director. She received an

AB in psychology with honors, with a citation in romance lan-

guages and literature at Harvard College. Alexa feels passionate

about making personal finance education fun and accessible to

everyone. She believes that for the next generation of students,

mastering financial literacy will be just as important as learning to

read or write.

College graduation—a major milestone, a celebration of accomplish-

ment, a time of excitement and anticipation. However, for most college

seniors, the end of college comes with an average of $4,138 in credit

card debt.20

I graduated college in 2006 and headed straight to a job at Morgan

Stanley, where I would work as a trader in the New York Global Propri-

etary Credit Group.

A few weeks before my graduation, I was sitting around a table with

friends, lingering over a Sunday brunch. We were discussing our

post-college lives, complete with new careers and new cities. It was over

the course of this casual conversation that I had a realization: though I

was headed for a career on Wall Street, I had no grasp on my personal

finances. Sure, I had a checking account, a savings account, and even a

Roth IRA that my parents helped me set up as a teenager. But I could

not really explain the difference between a Roth and a traditional IRA.

Nor did I have any idea what my credit score was or how to check it.

How did I get through two decades of education, culminating in one of

the top universities in the country, without ever learning these basic

skills?

Learning 223

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224 PASSION AND PURPOSE

Financial Literacy: A Snapshot

Upon graduation, I felt like I had no foundation of knowledge for manag-

ing my money, and the truth is that I was not alone. Indeed, financial

education is one of the major challenges for our generation. We are not

yet financially savvy. Past educational methods—namely, relying on our

families for advice—are clearly not working. How else can we explain

the fact that only one in three teens knows how to read a bank state-

ment, balance a checkbook, and pay bills?

As these teens grow older, their finances only get more and more com-

plicated. A shocking statistic from the American Bankruptcy Institute

shows that college students represent 19 percent of all those who filed

for bankruptcy.21 And 25 percent of young adults rate their financial situ-

ation as “poor.”22 Another survey shows that money is the number one

thing young people worry about.23

How do the overall problems that this generation faces translate to fi-

nancial concerns? This generation is growing up in a new economic envi-

ronment, and as a result, saving money is “in.” The growing number of

personal finance sites and their focus on budgeting speak to this im-

mense market need.

So while the job market and economic climate might seem bleak,

there is some good news: I believe that we are a generation who desires

change. Just as I would have loved to learn how to manage my money

before graduating from Harvard, so do 84 percent of college students

indicate a wish for financial education.

This massive problem of financial illiteracy is not easy to fix. The truth

is that finances by nature are complicated, and they only grow increas-

ingly so. (Take the subprime mortgage crisis, for example.) Our knowl-

edge needs to grow along with changes in the financial world, but we

have a lot of catching up to do. If we can fix this widespread problem of

money concerns and instead help young adults feel savvy about their

personal finances, they can turn their attention to other things. Why not

transform money from a stressor that inhibits young adults to a manage-

able arena that allows them to follow their passions?

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Learning 225

Whether we like it or not, money greatly impacts our lives. To make

your greatest happiness a reality, you’ll need the power of understanding

your finances. Ignoring them is simply not an option.

The LearnVest Story

During my time at Morgan Stanley, I decided to explore my interest in

financial literacy. I undertook the (major) side project of researching

what financial tools were already out there. I found a significant gap be-

tween dry books and expensive financial planners. Neither of these two

options was particularly desirable, and I simply could not find a resource

that spoke directly to me.

After working at Morgan Stanley for a few years, I enrolled in Harvard

Business School. In my first semester at HBS, I learned invaluable infor-

mation about how to run a company, from various leadership styles to op-

erations management. Ultimately, I realized that as an entrepreneur, there

is nothing more important than doing, so I put my HBS degree on hold

and dedicated myself fully to building a personal finance company of my

own, LearnVest—a name comprised of the words learn, earn, and invest.

Many might think that taking a leave of absence from HBS is a crazy

thing to do in any economy, and most would agree that it was particularly

crazy in the heart of the greatest recession America had seen in decades.

But the collapse of Wall Street seemed like a sign that financial educa-

tion was necessary now more than ever.

The most useful advice I heard was to truly know your audience.

What would be the best way for a twenty-something to tackle his

finances? More specifically, what would be the best way for a twenty-

something woman to do so? In my research, not only had I discovered a

lack of resources for my generation, but there were also no resources that

spoke to me as a woman—barring glittery pink books advising against

excessive shoe purchases. We defined the LearnVest audience as women

ages eighteen to fifty, with a focus on young women in their first years

out of college and in the real world.

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226 PASSION AND PURPOSE

Statistics clearly demonstrate that women have been underserved by

financial services companies and are particularly lacking in financial edu-

cation and literacy. Although the average female income has soared

63 percent over the past thirty years and women control approximately

60 percent of the wealth in the United States, women are nearly twice as

likely as men to retire in poverty.24 This inequality in the world of money

has serious implications, as 70 percent of women say they are carrying so

much debt that it makes them unhappy, and 90 percent of women feel

insecure when it comes to their personal finances.25

With this audience of young women in mind, we leveraged technology

to share personal finances with as many users as possible. We created

our website, www.learnvest.com, where users take a brief diagnostic test

that generates a personalized action plan. By providing relevant content

and walking users through financial milestones step-by-step, we hope to

make finances uncomplicated and even fun. We cover everything from

how to open a credit card to how having a baby affects your finances,

alongside useful tools and calculators.

Running a start-up is a challenging journey, but we seem to have hit a

nerve. I’m proud to say that in just one year, LearnVest has helped over

one million people make a better financial decision.

Lessons and the Way Forward

Although financial literacy is a major issue for our generation, it is one

we should be willing to correct. A study showed that it is not a lack

of time that prevents women from becoming more involved in their

finances. Rather, it is a lack of knowledge.26 Finding the proper tone

and medium to share that knowledge can be a significant challenge, but

there are many ways to address financial literacy.

The first is the straightforward route of infusing financial literacy into

our education system. We need to teach students that understanding the

basics of personal finance is just as critical as learning how to read and

write. Personal finance classes should be a graduation requirement at all

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www.learnvest.com

Learning 227

high schools, and these classes should focus on real-life examples to fully

convey the importance of money in the real world. High school is a great

time to share this information, as the transition to college is a time of

independence—and often of financial independence.

Personal finance should be included in many levels of education.

Though business schools address the world of high finance, it is critical

to equip future business leaders with a deep understanding of personal

finance as well.

There is also a major opportunity for large Fortune 500 companies to

provide financial education to their employees. Companies can include

personal finance in training programs for new hires, helping them under-

stand their paycheck and 401(k) before diving into a career. Given the

numerous free personal finance resources out there, companies have

many options for forming partnerships and rebranding these resources to

share with employees in a powerful way that benefits both sides.

The topic of financial literacy is something that the government has

taken steps to improve, but it simply cannot move fast enough to help

the great number of people currently in need of education. Every little

bit helps, though, and this seems to be a growing concern for policy mak-

ers. The Social Security Administration, for example, has awarded the

Rand Corporation, a Washington, D.C., think tank, a grant to research,

evaluate, and improve LearnVest. Steps like these on the side of the gov-

ernment can add the needed momentum to bring this challenge to cen-

ter stage.

Although “financial education” sounds like a daunting subject, I am

confident that we can achieve it. If we can help prevent personal finance

from being a source of concern, anxiety, and confusion, then it is cer-

tainly a worthwhile pursuit. If anything good has come out of the broader

financial situation that our generation has encountered—watching Wall

Street crumble right in front of us—it is this call to action around finan-

cial literacy.

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The Education of a Millennial Leader

JONATHAN DOOCHIN is the founder of the Leadership Institute at

Harvard College and chairman of the Board of Overseers. He also

serves as the CEO of Leverett Energy, a firm focused on financing

and developing energy efficiency and renewable energy. He has

spent time as a management consultant at McKinsey & Company

and is a serial entrepreneur. Jon explores three themes that guide

the future of leadership development.

Leadership Can Be Taught

When I was eight, an academic tutor told my parents I probably wouldn’t

learn to read or spell, and I likely would not attend college. My scores on

the Tennessee Assessment Test, the state’s SATs for third graders, were

in the lowest percentile, and my reading and spelling were at best that of

a first grader. But my teachers and parents refused to see my struggle as

fate and taught me to see my potential. From them, I learned not to give

up on myself or others even when reality seems hopeless. They spent

countless hours with me—one-on-one—working through my dyslexia.

And that experience, from an early age, taught me the importance of re-

flection and optimism, the impact of mentorship, and the potential of

thinking like an entrepreneur. I gradually learned to become what I per-

ceived to be a leader—always acknowledging my imperfections but never

giving up; playing to my strengths, while learning from my weaknesses;

and never allowing those weaknesses to define me. Moreover, my experi-

ence built in me a conviction that leadership, like any other subject, can

be taught.

Believing that we can use structured curricula and experiential exer-

cises to teach leadership to people of any age, I cofounded the Leader-

ship Institute at Harvard College (LIHC) during my senior year. LIHC is

228 PASSION AND PURPOSE

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Learning 229

now a hub for learning how to lead at Harvard—and a place where next-

generation leaders on campus take seriously their responsibilities not

only to each other and to their communities, but to the idea that they

can and should learn to lead. Run by college students, supported by

graduate student mentors, and overseen by recent graduates and profes-

sors, LIHC is founded on the idea that leadership development is a trial-

and-error process that causes individuals to reexamine their perspective

of the world, pursue objectivity by placing themselves in others’ shoes,

and develop a vocabulary of underlying theories that define their per-

sonal leadership style. It’s one model for what I think is a growing and

useful trend—leadership education.

Teaching Leadership

Despite the often prevailing opinion that leadership is highly contextual

and individualized, I believe there are a few major themes that distin-

guish the future of leadership development. My passion is building lead-

ers, and I believe both young leaders and the organizations that seek to

cultivate them could benefit from employing these themes. Three of

these themes—holistic self, the leader as architect, and collective

mentorship—have broad applicability and have been foundational to our

success at LIHC, in companies I have operated, and in my family life.

Discovering the Holistic Self

All of us are constantly undergoing a journey of self-discovery, aware-

ness, and change. This process may ebb and flow throughout a person’s

life, but to accelerate leadership development and organizational growth,

it is critical to cultivate and encourage that personal journey. This focus

on individual reflection, fulfillment, and holistic development is the most

significant component of creating a motivating and rewarding environ-

ment. Moreover, to be the strongest leaders, we must first work to

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230 PASSION AND PURPOSE

understand ourselves—our biases as well as our strengths—because only

then do we become at home with ourselves, more objective in our deci-

sions, and more able to see the world from the point of view of those we

impact. Only then can we leverage our strengths to make the greatest

difference.

At LIHC, we engage this process primarily through Leadership Devel-

opment Groups (LDGs). LDGs, part of a curriculum created by Bill

George, work by dividing large groups of individuals into smaller groups

that foster self-discovery through reflection and social interaction. Few

people fully understand their own personal life stories, the times they

have failed and how they picked themselves up, what they truly want to

do, or what brings them happiness. Bound by strict mutually agreed

upon confidentiality, these LDGs help members uncover their life sto-

ries, allowing them to see and understand themselves in a way that they

rarely have in the past. This is because in our busy professional and so-

cial lives, we rarely have the time to step back and reflect. We are un-

aware of many things that define us—my growing up with dyslexia, for

example—yet these powerful insights into our formative experiences can

give us strength and direction. Instances where we failed, events that

changed who we are no matter how silly or small to others, are experi-

ences from which we can draw immense strength by realizing that if we

found ways to fight through past failures, we can undoubtedly make it

through future crises. Conversely, understanding what creates our happi-

ness can help us find meaning and satisfaction in our daily lives. Doing

this for individuals within an organization aligns the goals of the organi-

zation with its staff, while improving the productivity and effectiveness

of employees. The opportunities for reflection are broad, and help partic-

ipants in LDGs better understand their “authentic” selves.

The more self-aware individuals become, the more they’ll understand

whether they align with an organization. Poor performers typically aren’t

deficient because of any inherent deficit, but rather because they don’t

fit their job or company. Often, this misalignment isn’t discovered until

both individual and employer have become dissatisfied, colleagues have

felt the effects of the lack of motivation, and productivity has suffered

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Learning 231

across the team. The development of more reflective organizations can

drive individual fulfillment and collaborative gain, particularly with a

young generation that’s more comfortable with personal reflection in a

professional context. And this kind of narrative-driven self-discovery can

help a young person become more thoughtful, confident, and focused as

he or she strives for leadership.

Structuring Success

In the past, entrepreneurship was the domain of a select few. Today, with

information and social networks at our fingertips, a generation of leaders

is evolving with entrepreneurship in their DNA. But our tendency to-

ward entrepreneurship must be focused, structured, and refined to de-

velop meaningfully.

While working at McKinsey & Company and the U.S. Department of

Energy, as well as building a handful of companies from the ground up, it

has become clear to me that leaders must learn to structure organiza-

tions and tasks effectively to create sustainable organizations. By “struc-

ture,” I mean stepping back and seeing the big picture, breaking

problems into manageable parts, planning their resolution in detailed

succession, designing the necessary norms and principles, and matching

the skills and capabilities of those in the organization to the problem it-

self. Such structure doesn’t emerge just from a charismatic leader. With

a skill set in structuring organizations and teams, very quiet individuals

can drive sustainable success. If you ask people what they need within

an organization, they may often say “a break” or “less work.” However,

these people are often simply suffering from a lack of structure and di-

rection and a misalignment of their talents and the work they’re doing.

To be a good leader, one must be a good listener—discerning needs ver-

sus wants, observing flaws in systems, and acting to leave a sustainable

structure that remains independent of the leader.

Young leaders must work to develop this structure. When I started my

first business, dropping out of Harvard College after freshman year to

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232 PASSION AND PURPOSE

start a high-end car brokerage business, it was a grab-bag process of

innovation—where do I get cars, how do I transfer large sums of money,

where do I learn what a Ferrari actually is? Though this model worked,

its potential was limited by a staff of one and an organization that was

not optimized, not scalable, and not sustainable in my absence. As I

brought on six staff members without fully developing the necessary

structure, I was forced to realize that a leader who doesn’t step back and

put in place the right norms and structures—even down to creating a

personal daily routine that sets aside and protects time to structure work

as well as personal needs—will unquestionably constantly struggle to

build an effective and sustainable enterprise. The amount of time, tal-

ent, and effort consumed in restructuring situations where young leaders

have failed to plan is not only a detriment to productivity, but an insur-

mountable drain on limited resources that may cause an all-star organi-

zation or project to fail.

The first concept every student at LIHC is taught after they learn the

organization’s mission and vision is a Gantt chart timeline. We could call

it structured leadership. Each student is responsible for her own time-

line and budget projections, laying out what activities she will lead over

the next semester. If she wants others to work with her, she has to con-

vince them to join. Students are asked to present, at every level of the

organization, a timeline and budget showing what they would like to

accomplish, their goals for impact, and their detailed plans for achieving

them. Each timeline is approved and then made public within the orga-

nization. This forces each student to lead his own piece of a project—

even if that student is a team of one—and creates accountability while

encouraging him to take ownership of the process from start to finish.

Developing Collective Mentorship

A collective mentorship model is one in which each individual in the or-

ganization is encouraged to build a personal board of advisors, have a

mentor and mentee, and cultivate strong professional peer networks.

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Learning 233

The collective mentorship model does not assume that only individuals

of a certain age, experience, or status have the answers. Rather, it har-

nesses a collective and connected approach by believing that people can

learn just as much from peers as from superiors. Social networks—often

peer to peer—that provide collective mentorship can play a much more

significant role in both personal and professional problem solving.

Trusted mentors help leaders take the crucial first step: acknowledging

the existence of the problem and talking about it openly.

I’ve been blessed with a number of dedicated mentors in my life—

from parents and teachers who helped me overcome the limits of

dyslexia to those who counsel me on my businesses today. Breaking

down walls of “professionalism,” I’ve tried to present those mentors with

an honest picture of me—my thoughts, experiences, struggles, and moti-

vations. And they’ve helped me fight through difficult times and grow as

a person. I, in turn, have experienced some of my most satisfying mo-

ments working as a peer mentor with others and helping them succeed.

Through a personal board of advisors, LIHC members have different

people they can consult to develop ideas, clarify moral standards, and

thoughtfully pursue personal and professional development. These types

of networks not only act to strengthen individuals by giving them sup-

port, but also encourage self-understanding and reflection. Moreover,

they allow LIHC members to think about a personal problem in a dy-

namic way, in the same way they’ve been using the Internet and social

connectivity in tackling business problems.

It’s an arrangement that can be fulfilling to both sides. Having a

mentee often teaches the mentor as much as the mentee, as it requires

mentors to think critically about issues they may also face, encourages

them to act as an example, and hones their leadership skills.

Learning to Lead

Each of us has the capacity to lead. Each of us, likely, has also shied

away from leadership at times. We’ve been told we simply don’t have

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234 PASSION AND PURPOSE

what it takes—the intelligence, the charisma, the genetics—and, too

often, we’ve listened. Increasingly, however, there is more awareness

among young people that all of the mysterious qualities that once de-

fined “leadership” are not inherent, but eminently teachable. And a gen-

eration defined by increasing interconnectedness and diversity

understands better than previous generations that although there are

universal principles of leadership, the model for leadership is not one-

size-fits-all, but should be individualized as we play to our own strengths

and personalities.

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Learning 235

INTERVIEW WITH . . .

Rich Lyons Dean of the Haas School of Business, University of California–Berkeley

Rich Lyons is the Bank of America dean of the Haas School of Busi-

ness, UC Berkeley. Prior to becoming dean in July 2008, he served

as the chief learning officer at Goldman Sachs in New York, a posi-

tion he held since 2006. As chief learning officer, Rich was respon-

sible for leadership development among the firm’s managing

directors.

How do you think MBA students’ attitudes and motivations toward the degree and, more broadly, toward business education have changed in the past twenty years? How do you see them changing in the next twenty years?

A question like this, of course, involves generalizations, so I’ll start

with that caveat. Nevertheless, I think there are trends that everybody

is seeing. I think that MBAs seem to be more purpose-driven in the

way they think about their careers. This might be a generational thing,

so it could be true of students in lots of different fields. They are less

willing to compartmentalize their professional and personal lives.

They want a professional life that’s more aligned with their personal or

private values. And they’re willing to give up more to maintain that

alignment.

A second characteristic is that students seem to be even more

interested than before in both in- and out-of classroom learning

and development. They’re expecting to draw insights and meaning

directly from experience while they’re in the program. They’re think-

ing about the curriculum in the total curriculum sense, by which I

mean a set of experiences that we might associate with a degree or

with a program.

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236 PASSION AND PURPOSE

I think an additional trend is the recognition that despite not having

a completely flat or borderless world, careers need to take someone

across geographies. It’s become a must that students think more

broadly about geographies in their career. Of course, some students

were thinking that way twenty years ago and many businesses were

very global twenty years ago. But now it’s hard to even find an MBA

student who isn’t thinking that way or an MBA program that doesn’t

recognize that it needs to address that need. And I would expect this

to continue for the next twenty years. I see no reason why the global

economic environment will reverse this trend.

How are MBA programs responding to these trends and where do they need to respond differently?

I think they need to address it on many different fronts, so there isn’t

any one answer to that question.

One very simple front is that having only 10 or 20 percent interna-

tional students in an MBA program is way too little. I think rubbing

elbows with people from different cultures and different geographies

is an absolutely fundamental starting point. I think the relative devel-

opment of non-U.S. business schools and the demand they’re attract-

ing is representative of this.

There are many other areas that are important as well. One of

course, has to do with curriculum. To what degree are international

global issues discussed in the core classes and in elective classes?

Every business school now has an experiential learning or action-

learning curriculum within the larger curriculum. And the question is

how many international opportunities are within the experiential

learning curriculum because there’s nothing like going to a place and

actually working there, even if for a short period of time.

I don’t think it’s necessary for a business school to have a remote

presence everywhere. My own view here may differ from some other

people’s, but I actually think that “place” is still an important part of

many business schools. The set of experiences that arise out of the

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Learning 237

ecosystem within which a business school operates is crucial. And to

completely distribute that ecosystem, online or in a separate campus,

may take some of the essential elements away.

We talked about changes at the business school level. But what do you think are the most important things that today’s MBA students need to learn?

Every business school is going to answer this a little differently. And I

think that’s fine, because there is no one way to think about this.

Setting a direction for an organization often means starting with the

future and working backward. So the way I easily talk about this is I

say, “Look, my kids are ten and seven, and my wife and I think about

our kids differently than how our parents looked at us.” This notion

that certain commercial paths are no longer viable or sustainable is, in

many ways, defining of our time. Our parents had a worldview that we

had an inexhaustible world, an inexhaustible set of opportunities.

Today when you a look at the model of society and modern

economies—things like health care expenditure or energy use or the

economics of aging, or access to safe water around the world, or car-

bon, or public education. This list goes on and on. Many of those

areas in the last twenty to thirty years cannot sustainably be extrapo-

lated in a linear way. So that’s a huge opportunity.

I’m not going to be around in 2080 but my kids are, so these unsus-

tainable paths need to get bent between now and 2080. I think the

business sector will play the lead role in bending the paths, and get-

ting the right public policy and the right nonprofit elements to this

larger picture are also going to be essential. So how do we make

sure we have the right human capital in the system to bend those

pathways?

To get more tangible, what’s the competency model? At Haas, we

want to tether our vision around sustainability because it feels like a

defining feature of our time. It is a sufficiently long cycle that we can

think about human capital in ten-, twenty-, thirty-year horizons. And

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238 PASSION AND PURPOSE

then we ask, what is the task of an innovative leader—what does she

or he do?

There are ten items on our capabilities list. Everything on this list

needs to meet two criteria. One, recruiters have to say, “That’s what

I’m looking for. That’s what I interviewed for.” Two, everything on this

list has to be grounded in the social sciences. If our faculty heard

some of the items on the list and said, “That’s right out of the top ten

best-seller lists in that new faddish book,” then they would spit the

idea out. And they should spit it out. So we needed to make sure we

could deliver a list of capabilities with some intellectual heft and some

foundation.

I won’t go through all ten but let me give you some examples.

Here’s one: problem framing.

Business leaders and CEOs say to me, “Rich, we will always be

problem solvers, that’s a given. We will always need problem solvers.

But you know what I am not getting enough of? I don’t have enough

people who are willing to lift their heads up from a transactional mode

and seek more deeply upstream in the problem finding and problem

framing stages. I don’t have people who feel comfortable disengaging

for two hours and writing down one, two, or three sentences that

define exactly what the problem is. And if they can’t do that, then

they are going to be wasting a lot of time trying to address the wrong

problems.”

The second one is experimentation. We had a talk by Google here

at Berkeley Haas recently about innovating at scale. Google has thirty

thousand employees now, and the question is, how do you keep inno-

vating at a large organization? If I had to summarize that whole talk in

a single sentence or question, it would be this: what would your busi-

ness look like if the cost of experimentation went to zero? How might

we do distribution, or how might we do brand management, or how

might we do an organizational restructuring? That will require people

to ask not how competent do I feel in this decision, but rather, what

data would I like to have to make it, and what experiments can I de-

sign to get those data?

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Learning 239

What do you think are the big changes that firms will need to adopt in the way they teach or conduct learning within their firms, particularly as they bring on board more next-generation leaders?

I think one thing implicit in your question that I agree with is that part

of the deal in attracting talent and winning the “talent war” is provid-

ing a road map of professional development that people can see, that

they understand, and that they want. This is absolutely fundamental.

Let me just take the examples that I gave: problem framing and ex-

perimentation. Why are there so few problem-framing skills? If busi-

ness leaders are saying they want it, why don’t they just develop it?

Why isn’t it happening? I think that’s a very important question.

And I think that question helps to answer your question. My best

answer is in a lot of these organizations, the norms and values, the

culture, for want of better words, don’t consciously and deliberately

recognize and compensate people for doing the problem framing and

for doing the hard thinking. CEOs and business leaders can say, “I

need people who can disengage and can think hard and spend a few

hours on a few sentences,” but in reality we keep such a transaction-

oriented rewards system. I think the firm needs to ask, “And why do

we have too little of this? And how deeply into ourselves do we have to

look in order to change the context so we can get more of it?” And

some of those are actually going to require changes in things like cul-

ture, norms, and values.

On a more philosophical level, can leadership and ethics be taught? How do you think business schools and corporations should be teaching these?

It’s a fundamental question. First of all, can leadership be taught? I

have to ask the question, to whom? Because we have to recognize that

particularly at the top business schools, we are seeing a remarkable

slice of human capital. This is a group of people who are in the top

percentile of leadership potential. We select for that. And can we de-

velop their leadership capacity when we’re working in that segment?

Absolutely, because their potential is so large. The crucible that we

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240 PASSION AND PURPOSE

can fill is so big. I think the question “Can business schools teach

leadership?” is very different from the question “Can leadership be

taught in some very abstract sense to a representative person?”

I believe business schools can teach leadership.

Some people say, “You can’t teach ethics, Rich, these people are all

adults. That had to happen when they were five, seven, or twelve. It’s

way too late.” A lot of people put that view forward.

I think that view is not correct. Here’s why. Suppose I’m the CEO

of a company, and I say that all of my employees are twenty-seven or

older, and I cannot influence when they are going to behave ethically,

and I cannot influence their ethical judgment. That would be a terri-

ble thing to say, and it would be a terrible thing to think. What should

a CEO say? No CEO should say, “Don’t worry about ethical behavior

in my firm because every one of my people has taken a thirty-hour

ethics training course.” Bad answer, right? That’s kind of the equiva-

lent of, “Do you have ethics in your core curriculum?” Ethics in the

core curriculum is a very good thing, but that in and of itself is a bad

answer to the question.

What would a CEO say and how do we think about this in a busi-

ness school perspective? I think a CEO should say this: “Ethics is in

everything we do. It’s in the norms and values that guide every judg-

ment call that’s made in this firm; it’s in our culture. We look for, we

hire for it. We drill it into every business process. It’s in everything I

do.” I think that’s the right answer. Leadership in many ways is a state

of mind. Have we created the culture, an expectation among these

students? Leadership is not being the CEO; leadership is influencing

outcomes. Leadership is often without formal authority. I think that

for a lot of these folks, there are the skills of leadership but there’s also

the mind-set. It’s not about me.

When a lot of people get to that point, they’re ready to be followed.

I usually put it this way to our students. I say, how many of you have

been in an organization where somebody one or two levels above you

did something that was in his or her best interest, but not in the best

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Learning 241

interest of the organization? Did you notice? Did anybody not notice?

Will you ever forget it?

Leadership is not made from authority. It’s made from trust and fol-

lowership and the idea that it is really not about you. Once you start to

get that, then people will start to want to follow. And you will start to

have influence even if you don’t have the authority.

That’s certainly part of what we try to do, on top of building skills

among students. Those are all important skills. But ultimately, I think

it’s about providing somebody a mind-set so that they can understand

why a leadership example is working so beautifully and what world-

view is behind it.

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Moving Forward

We’ve presented our work in six themed chapters covering admittedly

broad ground—from embracing globalization to competing using the lat-

est technology. Throughout the course of collecting these stories, inter-

viewing senior leaders, and conducting our business school survey, we

formed views on how today’s young leaders will shape the future of busi-

ness. We think that over the coming few decades, these leaders will:

• Successfully combine their interests across sectors, cross-pollinating

previously tired industries with new insights. There is an increasing

desire among young leaders to “connect the dots” and successfully

combine their diverse interests to create meaningful impact—for

example, by bringing for-profit analytical skills to leadership posi-

tions in the nonprofit sector, or by applying lessons learned in life to

business leadership positions. This will continue and will open new

arrays, possibilities, and opportunities in areas that previously

lacked innovation.

• Understand globalization more comprehensively. Today’s young lead-

ers live in a world where understanding and harnessing the effects

of globalization is essential to successful business leadership. As a

result, they are using experience in other cultures to enhance their

capacity for global leadership. As this continues, we’ll be able to

further our understanding of the forces driving an increasingly

interconnected world.

• Fully embrace diversity. To establish themselves as future leaders, it

is increasingly important that young leaders accumulate diverse

leadership experiences today that will better enable them to lead

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244 PASSION AND PURPOSE

increasingly diverse groups of people—creating more “wholeness”

and happiness in the workplace of the future.

• Sharpen the focus on sustainability. Today’s young leaders are more

interested than any in recent memory in creating a more sustain-

able world—and breaking the trade-off between sustainable

products and higher prices. They will learn how to push their

organizations toward more sustainable production frontiers without

compromising financial outcomes.

• Live as technology natives. We observed that effective young leaders

are already fluent in the sales and marketing tools of tomorrow—

social media and location-based networks, regardless of their current

industry or job function. They are self-taught technology experts. As

technology reaches ubiquity in both the developed and developing

world, young leaders will leverage their understanding as users of

technology to improve the performance of their organizations.

• Learn in new and innovative ways. In the future, young leaders will

harness new tools to learn in ways previous generations couldn’t

have imagined. Young leaders believe leadership can be taught—

and are including in their definition of leadership the character and

authenticity to lead with purpose.

• Assume the mantle of leadership. Most of the individuals we spoke

to view leadership as a responsibility, consistently referring back to

obligations to those around them, and speaking and writing in

detail about what leadership means. Many seem to view leading

others as a “calling” starting, in many cases, at a very young age. As

business becomes more tightly integrated with society as a whole, it

will be crucial for young leaders to assume their leadership posi-

tions with a sense of grace, humility, and serious responsibility.

Though Passion and Purpose originated from the ashes of the 2008

global financial crisis, we’ve been amazed at the level of optimism about

107124 99a 243-254 r2 vs 9/19/11 8:01 PM Page 244

the future. But is unbridled passion, without purpose, the best way to

conclude this book? We didn’t think so. In the same way that we tapped

senior industry leaders to have the final word on individual chapters, we

asked Nitin Nohria, dean of Harvard Business School, to contribute his

thoughts as a capstone for the book. Why Dean Nohria? He is a global fig-

ure—hailing from India but working and traveling frequently. He’s head

of one of the most powerful business institutions in the world. And he

drives innovation, successfully changing the status quo in every major

leadership position he’s held. Most of all, however, he’s a quiet, humble,

and patient individual. This balance of passion and purpose is what

makes him the perfect capstone.

Finally, our project of does not stop where this book ends. In fact, one

of the challenges we faced writing about the leaders of tomorrow was the

sheer volume of inspiring quotes and stories we encountered at every

turn. Although only a fraction of the individuals we met could make the

print edition, we couldn’t resist profiling a host of others online. In fact,

we’re started thinking of the website as something even bigger—an en-

during dialogue between young leaders and their more senior counter-

parts that will travel well beyond the covers of this book. As a Passion and

Purpose reader, we encourage you to join the conversation at www.hbr.

org/passion-purpose. We look forward to seeing you there.

Moving Forward 245

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www.hbr.org/passion-purpose

246 PASSION AND PURPOSE

CAPSTONE INTERVIEW WITH . . .

Nitin Nohria Dean of the Harvard Business School

Dean Nohria discusses the future role of business in society, the

significance of innovation over the next century, and the impor-

tance of remaining patient in an increasingly fast-paced world.

Let’s start from the beginning. Why did you choose business as a profession?

It goes back to very early childhood experiences I had with my father. I

still remember when I was very young, probably ten, my father was CEO

of a large company. Part of his job was to go out and build plants all over

the countryside. In India at that time, the government often gave incen-

tives for large companies to create plants in underdeveloped parts of the

country. So I remember going with him to these groundbreaking cere-

monies that commemorated a new plant being built on site.

We’d go and there was, literally, absolutely nothing. These were

barren areas, and other than a little tent that had been created for that

particular groundbreaking ceremony, there was nothing. And then

sometimes, seven or eight years later, I went back to these places and

where there had been nothing, there was this bustling township. It

was an amazing transformation. Where there had been no plant, there

was now a series of plants because the original plant had attracted

suppliers and those suppliers had in turn attracted new companies. I

remember meeting people in these places whose lives had been trans-

formed by business. They had gotten jobs. They had been able to send

their own kids to school. They had been able, in some cases, to send

their kids to college—and not only in different places, but to schools

and colleges established in these particular neighborhoods because

business had created enough prosperity to fund them.

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So in a very deep, visceral sense, I came to realize that business had

this amazing power to transform society and to create prosperity in a

number of ways.

When I first went to study chemical engineering in IIT Bombay, my

hope was at some point to become an entrepreneur. My first instinct

on about business was to create one myself. And so when I graduated

from IIT Bombay—even though I was going on to the PhD program at

MIT—my initial hope was still to be an entrepreneur. In fact, I had

even signed a technology license with an Irish company to go out and

create a company when I graduated. But it was at MIT that I discov-

ered that in so many ways, being an academic was like being an

entrepreneur—it was just being an intellectual entrepreneur. You could

choose a topic of your own, and go out and study it. And in an odd way,

by accidentally discovering the field of leadership and organizational

behavior, I learned that I could study the things that fascinated me—

which were people like my father, and the whole act of leadership and

management. That’s how I got attracted to the idea of a career in busi-

ness and then in particular, a career as a business academic.

Much of this book explores how young leaders are impacting the world in new ways. Have you seen changes in the ways students are thinking about business during your time at HBS?

One thing that has been constant is that students come to Harvard

Business School, or choose business education as something that they

want to do, because they view it as an accelerator for success. That

I think has always been true. You accelerated because new options

opened up for you. You accelerated because you can go back and rise

faster in your organization. We have always attracted ambitious people

who want to get ahead in life.

There have always been dreams of how one can exercise leadership

to make a difference in the world. And even though that’s our stated

mission, “to educate leaders who make a difference in the world,”

I don’t think it’s just what people write on their application forms to

get in. There’s a very large number of people who do have dreams

Moving Forward 247

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about how, through business, they can make a difference in the world.

And I think that’s been an important part of Harvard Business School

and the students whom we’ve attracted throughout my time here at

the school.

I think what has changed over time is different fields have risen and

fallen in terms of importance. When I first came to the school, which

was in 1988, consulting and investment banking were both still hot.

By the late nineties, entrepreneurship had become very hot, particu-

larly during the dot-com boom. At various points in the middle, real

estate seems to be something that becomes hot and kind of falls off.

So in some ways, the students are always searching for what seems to

be the hot sector of the economy, and they pursue that. What’s hot

changes all the time, so there’s a dynamism in what our students go

into. If you look further back in the first decades of the school, we

were having people who were going into railroads, and then we had

people going into consumer packaged goods.

You know, everybody worries, “Will the school only produce people

who are in consulting and finance?” But we forget that the world al-

ways changes and as the opportunity structure changes, our students

go to different things. So just in the last five or seven years, we’ve

begun to see clean tech as one of the fastest-growing paths in terms of

where people will go from HBS. Health care has also become one of

the fastest new sectors. Social enterprise—which was not even a cate-

gory when I first came to HBS—is extremely popular. So what I think

is striking is the constant dynamism in how people are looking for new

things, and I expect that dynamism will continue. You pick people

who are ambitious, who have aspirations—a combination of wanting

to do well for themselves but also do well for society. And as that inter-

section evolves, the desires of our students evolve as well.

Part of that dynamism is the set of values that people bring to leadership, and those values have changed throughout the years—most acutely in the past two to three years when some have called into question the very legitimacy of business leaders

248 PASSION AND PURPOSE

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Moving Forward 249

in society. How have you seen people’s or MBAs’ attitudes toward leadership change over the years? How might that change moving forward?

I think there have been moments in this period where the lure of

short-term gains was so high that our students, like many other people

in business, were captivated, then captured by it. During the dot-com

boom you could create a company and in eighteen months, you

became a multimillionaire, multibillionaire—if there’s money to be

made, you don’t want to be the fool who’s sitting on the sideline while

others are doing it, right?

What has been true in business through millennia is that any place

in which you can make money very quickly isn’t long-lived. And I

think that’s a little bit of the trap, the sort of short-term trap, which

occasionally business leaders fall into and something that we’ve now

lived through in recent times as well. It’s as if a few people benefited

from the positive externalities and many, many people got left paying

for the negative externalities of this most recent round of short-term

value creation. I think that’s what’s caused a greater anxiety about the

culture of business in recent times.

How do you see people dealing with that moving forward, especially young businesspeople? Do you see a change in the way they view business or in the way they exercise leadership?

It’s my hope they do. I was struck by the recent MBA Oath move-

ment. The specifics of the MBA Oath are actually less important than

the signal it represented. Here was a group of students who felt it re-

ally important to declare that they stood for different values than what

were being portrayed as the values of business leaders—that we’re all

about greed, we’re only in it for ourselves, we don’t care about society

more broadly. So here is a group of people who said, “No, no, no, I

didn’t join business because those are my values. I joined business be-

cause I really believe in the kind of positive role that business has for

society. And what I want to stand for as a business leader is a differ-

ence in our values.”

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The world is increasingly interconnected, and these global links will become stronger in the future. What differences do you see among leaders around the world? Is there anything that American business can learn from and better develop in terms of values, or attitudes, norms, for doing business?

I think there are quite different values that animate business in differ-

ent parts of the world. In Europe, I think that respect for the role of

the state is still very high, for the most part. In America, we’re enor-

mously suspicious of the role of the state. In parts of Asia, there is

great respect for the state, but there are other parts of Asia, like in

India, where there’s no respect for the state. I think the same is true in

Latin America, where in some parts of Latin America the state enjoys

respect and in other parts the opposite is true.

One thing that Americans need to recognize is that the relationship

you can have with the state doesn’t have to be one of permanent

hostility—you can actually have a productive relationship with the

state as well. While regulation can often overreach, as we have found

recently, the complete absence of regulation is equally problematic.

So some form of productive regulation might be a useful thing for us

to think about.

The other difference that you certainly have in America is that

when things go wrong, relative to any other place that I know,

Americans are willing to cut their losses and move on. You look at

Japan and other places, there’s so much anxiety about the costs of

confronting the mistake you made because it’s going to inevitably lead

to social dislocation of some kind. They just postpone taking pain that

is necessary to confront the mistakes that they made. Whereas I think

one of the great strengths of the American economy, relative to any

other economy that I know, is this capacity to say, “Okay, we made

some mistakes, but this is going to be costly; we’re going to take the

costs, we’re going to write off the cost quickly.” Look at the length of a

recession in America. America recovers from recessions faster than

most places do because they’re willing to take the losses more quickly.

But it cuts the other way too. So you can say in some countries, there

250 PASSION AND PURPOSE

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is more empathy for people who are disadvantaged. Whereas in

America, some of that empathy might be missing, but that lack of

empathy also creates this capacity to move forward more quickly.

Another issue that I think is very important is that Americans have a

self-concept of being much more committed to innovation than any

other part of the world. And for the most part, I think that’s true. The

American capacity for innovation and entrepreneurship is much greater

than it is anywhere else. But the rest of the world is catching up very

fast. So I think that we in America have to be more conscious of recog-

nizing that the global battlefield is now not just about other countries

competing on low-cost wages relative to American entrepreneurship

and innovation, but other countries are also going to compete on inno-

vation and entrepreneurship, in addition to just competing on low cost.

And this is a very profound shift in terms of the dynamics of global com-

petition that I’m not sure we in America have fully come to terms with.

That’s an interesting point about innovation. A lot of people would argue that innovation within organizations often comes from younger people. Do you see qualities in the next generation of business leaders that could help to drive that push for innovation? And if so, how can organizations start to effectively use those next-generation leaders to drive innovation?

This is a whole generation of people who have grown up very re-

sourceful at getting ideas from any place, because they’ve grown up on

the Internet and they’ve grown up with a view that whatever problem I

want to solve, I have access to solving that problem in all kinds of

ways. Social networking makes you resourceful in a combination of

ways. It’s not that you can just get data; you can also actually connect

to other interesting people from anywhere in the world. If you think

about the core of all innovation, it’s actually a creative recombination

of ideas and people. So most innovation is not actually inventing

something new; instead it’s putting together existing things in new

ways. This was Schumpeter’s great insight. And if you actually study

the history of science or you study the history of innovation, it is a very

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252 PASSION AND PURPOSE

rare thing that is genuinely novel. Most things are creative recombina-

tions. I think that there’s a generation of people growing up whose

capacity to do that is much greater than it ever used to be before—

just because that’s the way they inherently think of organizing

themselves.

There’s a series of very significant challenges that business and so-

ciety face, that will require this kind of imagination to address. How

do you balance energy security with environmental sustainability?

How do you leverage the amazing innovations in health care that allow

us to all live longer, with the cost that these imply? How will we get 3

billion people on the planet the stuff that the 1 billion already have? If

we imagine that the resource intensity of producing a car which these

people will one day have is the same as the resource intensity of pro-

ducing it for the first 1 billion, we’re dead. We’re not going to be able

to make it happen.

There have to be fundamentally different innovative ideas for how

we even produce existing stuff for the next 3 billion people who all

want it. So you have to make the Tata Nano at $2,000, but we’ll have

to ask the question, what’s the next price point at which a car is going

to get made? Or what’s the next value proposition for how one thinks

about each of these things? Because if we just think that all we’re

going to do is to recreate the existing value chain of the 1 billion for

the other 3 billion, the planet can’t sustain it. There are not enough

resources in the world to do that. But I’m of the view that this genera-

tion of people who are now growing up in schools and colleges will be

resourceful enough to do it because they’ve been educated with a

different kind of mind.

What’s your word of hope and word of caution for this generation?

The word of hope is that there’s so much to do right now. The biggest

example is those 3 billion people in the world who haven’t yet bene-

fited from the prosperity that business can create. That is an extraordi-

nary opportunity for business leaders. Just think about that:

three-quarters of this planet still haven’t benefited from what business

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can help provide. And the one-quarter that have benefited also have

their challenges. I think that almost nothing that is of any significance

in the world today—environmental sustainability, digital revolution,

health care—I can’t think of a single problem of any significance that’s

going to be solved without business playing not just a role, but a lead-

ership role. So to me, that’s the amazing hope that exists for anybody

who’s entertaining a career in business today.

The caution that I would have is this: don’t get too impatient with

yourself. There’s something about the Facebook generation that

because things start and end in three minutes, you might believe that

all the answers to all of these questions also have to start and end in

three minutes, and that they will all get done in some super-rapid

cycle in which everything is getting done. The speeding up of the

world doesn’t mean that everything in your life can be sped up the

same way. Have the capacity to be patient, to be committed to the

long term, to be able to devote years of energy into something, as

opposed to just minutes. That’s going to be an important part of what

people need to be prepared for. But if they’re prepared for this, the

opportunities are endless.

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APPENDIX

About the Passion and Purpose MBA Student Survey

The idea for the MBA Student Survey emerged as we began to gather the

individual stories behind Passion and Purpose. We noticed several recur-

ring themes—new endeavors in unfamiliar lands; bringing the “whole

person” to work; the convergence of private, public, and nonprofit ca-

reers. As business students ourselves, we wanted to measure the preva-

lence of these trends, and develop empirical evidence that certain values,

beliefs, and attitudes on the future of leadership are widespread among

MBAs, and not just shared by a few individuals.

We invited MBA students to participate in an online survey between

September and October 2010. We polled a total of 510 respondents, a

relatively substantial sample, and one that reflects the MBA population

in terms of gender and country of origin. Due to time limitations, our sur-

vey is heavily skewed toward one school, with 44 percent of respondents

coming from Harvard Business School. In addition, we polled only Amer-

ican business schools; thus the survey is not meant to represent attitudes

of MBAs around the world. Finally, the sample focuses on current or re-

cent MBAs, with 89 percent of respondents graduating between 2010

and 2012 (see a summary of the respondents in figure A-1).

To us, launching the survey just made sense. First, having quantitative

data to complement individual, personal stories helped frame the differ-

ent themes in a wider context. These stories were made more interesting

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256 PASSION AND PURPOSE

when we uncovered some fascinating facts from the survey, as shown in

figure A-2.

The findings in this survey have very interesting implications for young

individuals, senior managers, companies, and business schools alike. For

example, if young people expect to work in more than four countries

throughout their lifetime, how can business schools do a better job of

globalizing the MBA experience? How can private sector companies de-

velop young managers who also desire to understand the public and non-

profit sectors? How should young people think about their paths to

50.0%

29.0%

10.0%

11.0%

Year of graduation

2012

2011

2010

2009 and below

Country of origin

Canada

Brazil

China France

United States

India

Mexico

United Kingdom

Others

Gender

62.20%

37.80%

Male

Female

School of origin

Harvard

KelloggMIT Sloan

Tuck

Stanford

Wharton Darden

Others

F I G U R E A - 1

Snapshot of survey respondents

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 256

Appendix 257

leadership when 80 percent of their peers believe that this generation

views leadership differently than previous ones? We hope this survey can

provide an initial platform for understanding answers to some of these

questions.

Second, the MBA Student Survey supplements existing surveys that

seek to measure trends and attitudes that set young business leaders

apart. These studies inform corporations in their hiring and talent devel-

opment strategies, and guide colleges and universities around the world

in curriculum development. For instance, the IBM Institute for Business

Value conducted a global student survey contrasting the views on leader-

ship of current CEOs and senior managers with those of students around

the world. Similarly, the Graduate Management Admissions Council,

popularly known for administering the GMAT exam, conducts an annual

Alumni Perspectives Survey, but mostly focuses on employment, career

paths, and salary levels of MBA graduates. More generally, the Pew Re-

search Center conducts research on the values and attitudes of American

millennials. The MBA Student Survey is different from these surveys by

Intellectual challenge

2.4

92%

is the most important reason for choosing a job.

is significantly more important than compensation or prestige.

The number of social networks, on average, our respondents are members.

agree that increased workplace diversity can lead to better business outcomes—especially diversity in gender, professional experience, and functional expertise.

4.6

84%

80%

The number of countries respondents intend to work in within 10 years after graduation.

believe that it is essential for business leaders to understand the public and nonprofit sectors.

believe that this generation views leadership differently from previous generations.

F I G U R E A - 2

Fascinating facts from the MBA Student Survey

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258 PASSION AND PURPOSE

focusing entirely on current or recent MBAs and their views on the

trends discussed in this book. The survey is by no means a representation

of the whole picture. We encourage readers to take the time to explore

these other reports as they also yield fascinating findings, especially for

young people interested in launching a career in business.

Finally, widespread online social networks and do-it-yourself research

tools such as SurveyMonkey have made it easy and inexpensive to gather

all this information. The technology for generating a relatively substantial

data set in an expedient, almost-free manner was an opportunity too good

to miss.

An Emerging Leadership Ethos

Perhaps the most interesting part of the survey involved hearing the atti-

tudes of young leaders on the future of leadership. Four out of five cur-

rent or recent MBAs believe that “this generation views business

leadership differently than previous generations.” To explore this even

further, we asked the open-ended question, “What is the biggest and

most imaginative way leadership in the 21st century will evolve?” We

then categorized respondents’ answers within several of the trends we al-

ready saw in this book to get a quantitative measure of its relative impor-

tance, as well as provide some excerpts of the responses (see figure A-3

and table A-1).

Young businesspeople interpreted these changing views on leadership

in diverse ways. Echoing the convergence of business interests with

broader societal and public interests highlighted in the first chapter, a

common sentiment that was voiced by many was summed up by one re-

spondent: “Business leaders will be forced to recognize and serve a

broader community of stakeholders than in previous generations.” An-

other respondent was more explicit on the role of business and business

leaders, firmly believing that “management will no longer be explicitly re-

quired to act first and foremost to the financial benefit of shareholders.”

Another noted the very personal nature of leadership, arguing that it is

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 258

Appendix 259

“less about climbing a ladder within an established organization. The 21st

century is more about defining the ladder through one’s actions.”

Young leaders are imagining a more global, complex, and fast-paced fu-

ture. The top three most imaginative ways young leaders envision the fu-

ture of leadership are clear: the rise of global leaders, the role of

convergence in business, and leaders who are also technology natives.

For young leaders, globalization doesn’t simply mean getting a plum

overseas temporary assignment. With the rise of powerful emerging

economies and the relative decline of American dominance, a global ca-

reer now means moving across countries over extended periods of time,

and designing a career path to grapple with that eventuality. After all,

young MBAs expect to work in an average of 4.6 countries after business

school. This doesn’t just refer to jobs in big corporations. As one leader

quipped, even start-ups today have learned how to be more global from

the beginning.

Global leaders

Convergence

Technology natives

Collaborative leadership

Embracing diversity

Empowerment

Personal authenticity

Ethical leadership

Complexity and uncertainty

Sustainability

Others

0.0% 5.0% 10.0%

n = 276

15.0% 20.0%

F I G U R E A - 3

The most imaginative ways leadership will evolve in the twenty-first century

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 259

260 PASSION AND PURPOSE

TA B L E A - 1

Excerpts from the MBA Student Survey: How future leaders are reimagining leadership

Theme Direct quotes

Global leaders “Leaders must know how to operate in a global climate. Simply understanding your local national surroundings will no longer be sufficient.”

“Leadership will require people to learn more about the world around them as businesses, even start-ups, become more international.”

“Leadership will increasingly be attributed to improving the lives of others around the world.” “Leaders must be able to adapt their styles to the most powerful developing economies of the 21st century.”

“Leaders need to integrate the development of emerging economies with the growth and development of the for-profit sector.”

Convergence “Management will no longer be explicitly required to act first and foremost for the financial benefit of shareholders.”

“Where people see market leadership in the social enterprise sector to find a free market way to solve our generation’s socio- economic problems.”

“Unite social impact and business; expand stakeholder view beyond shareholders; corporations must accept responsibility to community and a more global world.”

“More comprehensive understanding of the ecosystem (not just en- vironmental but political and social) that business operate in. Using that understanding to lessen negative impacts of a business and increase competitive advantage and other positive impacts.”

“Business leaders will be forced to recognize and serve a broader community of stakeholders than in previous generations.”

“It will evolve into having a greater purpose than simple profit sharing or shareholder value creation.”

Technology natives “Being able to utilize social media and networks, virtual and real- world, to broadcast and influence others.”

“Technology will make the flow of information more easy and quick. Leaders will not have the power or the control of information anymore.”

Collaborative leadership “There will be a greater acceptance of and reliance on fluid leader- ship diffused throughout organizations, rather than leadership being found in defined organizational structures.”

“Drawing upon the collective experience of the masses rather than focusing on the expertise of select individuals.”

Embracing diversity “Team diversity will be ever more important—therefore, leaders must learn to be more effective with their messages and increase the frequency of these messages in order to retain and motivate their best and brightest.”

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 260

As they move around the world, young leaders are coming to terms

with the convergence of the private, public, and nonprofit sectors. They

believe that human enterprise and the progress of civilizations require

close collaboration of all three. As such, they see themselves as no longer

bound simply by the beliefs, attitudes, and practices of any single domain.

They need to understand and be comfortable working in all three. The

role of business itself will converge with other nonfinancial measures—

young people see the objective of corporations expanding beyond share-

holder value.

They will do this with the support of diverse teams—firmly believing

that diversity in gender, nationality, professional experience, and func-

tional expertise lead to better outcomes. Mobile, social networking, and

cloud computing technology will enable leaders to quickly process enor-

mous amounts of data into useful information and extend the boundaries

of their organizations to leverage the power of the crowd.

Appendix 261

“There will be a pressing need to understand cross function/indus- try roles as business and economies are increasingly intertwined.”

Empowerment “Leaders will not be able to be autocratic in the future because news-sharing and opinion-influencing has become so decentral- ized and democratic. It will be far more important for leaders to be persuasive since they will not be able to control crowds or people by brute force.”

“Leadership will become decentralized, away from the top ranks and into the hands of the doers. The lines between those inside and those outside a corporation will get fuzzier.”

“Leadership emphasis is already shifting from focusing on charis- matic superstars who guide the masses, to valuing team leader- ship to transcend the limitations of any one individual.”

Personal authenticity “Leadership will be less about climbing a ladder within an estab- lished organization—the 21st century is more about defining the ladder through one’s actions.”

“When they concentrate on developing self-awareness, understand the value of interdependence (rather than independence), and perceive their seminal role in developing human values and social enterprise.”

Ethical leadership “Leaders will be forced to be more transparent about everything from their decision making to their personal lives.”

“True leaders in the 21st century will have to take proactive actions to ensure they are following fundamental ethics rather than just doing what everybody else is doing.”

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 261

262 PASSION AND PURPOSE

62% 71%

58% 91%

91% 91%

81% 79%

69% 69%

67% 72%

75% 67%

89% 80%

87% 83%

0% 10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

10 0%

By working abroad, I have learned new skills that will be valuable to my career.

Working in different countries has helped me learn more about myself and what I

plan to do in the future.

Increased workplace diversity can lead to better business outcomes.

Alternative energy and environmental sustainability offer meaningful career

paths for people in my generation.

Companies I have worked for have attempted to become more environmentally sustainable.

Leadership can be taught.

I was able to customize my business school experience to my unique personal needs

and interests.

There is increasing overlap between business, nonprofits, and the public sector.

It is essential for business leaders to understand the public and/or nonprofit sectors.

Percent of respondents who agree or strongly agree with the following statements

Male Female

F I G U R E A - 4

Beliefs and attitudes of young leaders

107124 99b 255-262 r2 vs 9/19/11 8:02 PM Page 262

Notes

Introduction

1. Pew Research Center, “The Millennials: Confident. Connected.

Open to Change,” February 24, 2010, http://pewresearch.org/pubs/1501/

millennials-new-survey-generational-personality-upbeat-open-new-

ideas-technology-bound.

2. IBM Future Leaders Survey.

Chapter 1

1. Jonathan Rauch, “This Is Not Charity,” The Atlantic, October 2007,

http://www.jonathanrauch.com/jrauch_articles/bill_clinton_reinvents_p

hilanthropy/.

2. “Nonprofits’ Decade of Growth Outpaces Economy,” Urban Insti-

tute, 2006, http://www.urban.org/publications/901011.html.

3. Dennis Cauchon, “Federal Pay Ahead of Private Industry,” USA

Today, March 8, 2010, http://www.usatoday.com/news/nation/2010-03-

04-federal-pay_N.htm#chart.

4. HBS Social Enterprise Initiative, “History,” http://www.hbs.edu/

socialenterprise/about/history.html; http://www.socialenterpriseclub.org/

home.aspx.

5. http://en.wikipedia.org/wiki/Jessica_Jackley.

6. HBS Career Services, “EC Job Market Update, 2009,” http://

my.hbs.edu/mbadocs/admin/careers/presentations/ec_job_market_

update_09.pdf.

7. Stanford Graduate School of Business, “Joint & Dual Degrees,”

http://www.gsb.stanford.edu/mba/academics/joint_dual_degrees.html.

8. Tracy Mueller, “Profit with a Purpose,” Texas, January 14, 2010, http://

blogs.mccombs.utexas.edu/magazine/2010/01/14/profit-with-a-purpose/.

9. “Kenya Rivals Agree to Share Power,” BBC News, February 28,

2008, http://news.bbc.co.uk/2/hi/africa/7268903.stm.

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 263

10. “Awakening Movement in Iraq,” World, New York Times, October

19, 2010, http://topics.nytimes.com/top/news/international/countries-

andterritories/iraq/awakening_movement/index.html.

Chapter 2

1. IBM Institute for Business Value, “Inheriting a Complex World:

Future Leaders Envision Sharing the Planet,” IBM Global Business Services

Executive Report, http://www-935.ibm.com/services/us/ceo/ceostudy2010/

futureleaders.html.

2. Eric Beinhocker and Elizabeth Stephenson, “Trend to Watch:

Globalization Under Fire,” HBR Now (blog), July 20, 2009, http://blogs.

hbr.org/ hbr/hbr-now/2009/07/trend-to-watch-globalization-u.html.

3. PPI Trade Fact of the Week, “The Number of Transnational Com-

panies Grows by 2,500 a Year,” PPI Trade & Global Markets, December

3, 2008, http://www.dlc.org/ndol_ci.cfm?contentid=254841&kaid=108&

subid=900003.

4. Renee Dye and Elizabeth Stephenson, “McKinsey Global Survey

Results: 5 Forces Reshaping the Global Economy,” McKinsey & Com-

pany, 2010.

5. IBM, “Inheriting a Complex World.”

6. Yojana Sharma, “Changes Looming in Global Student Market,”

University World News, September 13, 2010, http://www.university-

worldnews.com/article.php?story=20100918074621118.

7. “Indian Firms’ Foreign Purchases: Gone Shopping,” The Economist,

May 28, 2009.

8. Eric Beinhocker, Ian Davis, and Lenny Mendonca, “The Ten

Trends You Have to Watch,” Harvard Business Review, July–August 2009.

9. IESE Business School, International Center for Work and Family,

http://www.iese.edu/es/files/ICWF%20-%20Art%C3%ADculo%20Family%

20Business%20Dominate_tcm5-3230.pdf.

10. “Education,” Peace Corps information page, http://www.

peacecorps.gov/index.cfm?shell=learn.whatvol.edu_youth.

11. For a quick read on “One Cow Per Poor Family,” see the Rwandan

Ministry of Agriculture’s Web page at: http://www.minagri.gov.rw/index.

264 Notes

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 264

php?option=com_content&view=article&id=207%3Agirinka-program&

catid=66%3Agirinka&Itemid=43& lang=en.

12. The Rwandan government’s agriculture transformation plan is

called “PSTA II: Strategic Plan for the Transformation of Agriculture.” It

is available at http://www.primature.gov.rw/index2.php?option=com_

docman& task=doc_view&gid=903&Itemid=95.

13. For more on the history of what happened at the Hotel des Diplo-

mates (now the Kigali Serena), see Chris McGreal, “Veneer of Normal-

ity,” The Guardian, February 19, 2008, http://www.guardian.co.uk/world/

2008/ feb/19/rwanda.

Chapter 3

1. Harvard Business School, “Statistics,” http://www.hbs.edu/about/

statistics/mba.html.

2. Harvard Business School, “Perspectives: MBA Class Profile,”

http://www.hbs.edu/mba/perspectives/class-statistics/.

3. Bloomberg Businessweek, “Full-Time MBA Profiles: Insead,” June 9,

2011, http://www.businessweek.com/bschools/rankings/full_time_mba_

profiles/insead.html.

4. Accenture, “Optimistic Outlook,” January 19, 2010, http://newsroom.

accenture.com/news/despite+obstacles+millennial+women+over-

whelmingly+positive+about+career+prospects+accenture+research+fin

ds.htm.

5. Celine Roque, “Mix Up the Workweek by Setting Your Own ‘20-

Percent Time,’” Web Worker Daily, March 12, 2010, http://webworker-

daily.com/2010/03/12/mix-up-the-workweek-by-setting-your-own-20-per

cent-time/.

6. Paula Burkes Erickson, “Firms Offer Flexible Hours to Keep Em-

ployees Happy,” April 13, 2007, ScrippsNews, http://www.scrippsnews.

com/node/21201.

7. Chuck Salter, “Calling JetBlue,” Fast Company, May 1, 2004,

http://www.fastcompany.com/magazine/82/jetblue_agents.html.

8. Justin Rohrlich, “Religious CEOs: Tyson Foods’ John Tyson,”

Minyanville Media, May 19, 2010, http://www.minyanville.com/

Notes 265

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 265

special-features/articles/john-tyson-christian-church-chaplain-

methodist/5/19/ 2010/id/28276.

9. Human Rights Campaign, “Domestic Partner Benefits,” http://

www.hrc.org/issues/domestic_partner_benefits.htm.

10. Elizabeth Gudrais, “Family or Fortune,” Harvard Magazine, January–

February 2010.

11. Ibid.

12. Herminia Ibarra, Nancy M. Carter, and Christine Silva, “Why

Men Still Get More Promotions Than Women,” Harvard Business Review,

September 2010.

13. Nancy M. Carter and Christine Silva, “Women in Management:

Delusions of Progress,” Harvard Business Review, March 2010.

14. M. Argyle, “Do Happy Workers Work Harder? The Effect of Job Sat-

isfaction on Job Performance,” in How Harmful Is Happiness? Consequences

of Enjoying Life or Not, ed. Ruut Veenhoven (Netherlands: Universitaire

Pers Rotterdam, 1989); and M. Argyle, The Psychology of Happiness, 2nd

ed. (London: Routledge, 2001).

15. T. M. Amabile, S. G. Barsade, J. S. Mueller, and B. M. Staw, “Af-

fect and Creativity at Work,” Administrative Science Quarterly 50 (2005):

367–403.

16. Deloitte, “Redesigning the Workplace,” http://www.deloitte.com/

view/en_US/us/About/Womens-Initiative/Redesigning-the-Workplace/

index.htm.

17. Jennifer Ludden, “The End of 9-to-5: When Work Time Is Anytime,”

National Public Radio, March 16, 2010, http://www.npr.org/templates/

story/story.php?storyId=124705801.

18. Robin Lloyd, “Best Benefit of Exercise? Happiness,” Live Science

on FoxNews.com, May 30, 2006, http://www.foxnews.com/story/0,2933,

197466,00.html.

19. Deloitte, “Health and Fitness,” http://careers.deloitte.com/united-

states/students/csc_general.aspx?CountryContentID=16417.

20. “Deloitte Prague Cup 2008,” http://www.flixya.com/video/

1316961/Deloitte_Prague_Cup_2008; Bain & Company, “Outside the

Office,” http://www.joinbain.com/life-at-bain/beyond-the-desk/outside-

the-office.asp.

266 Notes

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 266

21. ROTC has been around for decades, a nationwide college scholar-

ship program that pays for school in return for a few years of military ser-

vice. Besides helping hundreds of thousands of Americans pay for college

over the years, it has also ensured that a wide cross-section of young

Americans serve as officers in our nation’s volunteer military. Harvard

kicked ROTC off campus at the height of its protests of the Vietnam War,

and did not allow it back until 2011 when Congress repealed the “don’t

ask, don’t tell” policy that had been Harvard’s stated reason for keeping

ROTC off-campus until that time.

Chapter 4

1. See http://www.un.org/documents/ga/res/42/ares42-187.htm.

2. Deloitte, “Generation Y Going for ‘Greener’ Cars,” http://www.

deloitte.com/view/en_AU/au/services/deloitte-private/thoughtleadership/

c56520a25cba6210VgnVCM200000bb42f00aRCRD.htm.

3. Ibid.

4. Johnson Controls, Generation Y and the Workplace Annual Report

2010, http://www.scribd.com/doc/36668143/Oxygenz-Report-2010.

5. OECD, http://www.oecd.org/dataoecd/29/14/45188043.pdf.

6. Matt Symonds, “At Business School, Sustainability Takes Center

Stage,” Bloomberg Businessweek, September 24, 2009, http://www.

businessweek.com/bschools/content/sep2009/bs20090924_229220.

htm.

7. “Sustainability Rankings for ICT Industry Put Vodafone, Nokia on

Top,” GreenBiz.com, February 26, 2010, http://www.greenbiz.com/news/ 2010/

02/26/sustainability-rankings-ict-industry-put-vodafone-nokia-hp-top.

8. “GE: Ecomagination Revenue to Hit $17 Billion in 2008,”

Environmental Leader, October 22, 2008, http://www.environmentalleader.

com/2008/10/22/ge-ecomagination-revenue-to-hit-17-billion-in-2008/.

9. Kelly Smith, “Walmart Expects Its Suppliers to Reduce Green-

house Gas Emissions,” Green Power Blog, March 21, 2010, http://www.

ecoelectrons.com/green-power-blog/bid/36727/Walmart-Expects-Its-

Suppliers-to-Reduce-Greenhouse-Gas-Emissions.html.

10. Walmart corporate website, “Sustainability Index,” http://walmart-

stores.com/Sustainability/9292.aspx.

Notes 267

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 267

11. Nestlé’s Second Annual Creating Shared Value Forum, May 27, 2010

(transcript available at http://www.nestle.com/Resource.axd?Id=1C7FD9CF-

16F5-4846-BAE3-978BABFA2C39).

12. Daniel Brooksbank, “Bloomberg Chief Outlines ESG Data Strat-

egy,” Responsible-Investor.com, June 24, 2010, http://www.responsible-in-

vestor.com.

13. Accenture, A New Era of Sustainability, UN Global Compact–

Accenture CEO Study 2010, http://www.unglobalcompact.org/docs/

news_events/8.1/UNGC_Accenture_CEO_Study_2010.pdf.

14. 2009 HP Global Citizenship Report, http://www.hp.com/hpinfo/

globalcitizenship/pdf/fy09_fullreport.pdf.

15. Jerry Lewis, “Mars Wants Sustainable Cocoa Certification to In-

clude Productivity,” April 23, 2010, http://www.huffingtonpost.com/jerry-

lewis/mars-wants-sustainable-co_b_549874.html.

16. Cape Wind, Inc., “Cape Wind Will Reduce Over a Million Tons of

Greenhouse Gas Emissions Per Year,” August 27, 2002, http://www.

capewind.org/news11.htm.

17. National Oceanic and Atmospheric Administration (NOAA),

“Trends in Atmospheric Carbon Dioxide,” http://www.esrl.noaa.gov/gmd/

ccgg/trends/#mlo_growth.

18. Nicholas Stern, The Economics of Climate Change: The Stern Re-

view (London: HM Treasury, 2007).

19. John Leaning, “Dueling Wind Farm Polls Encourage Skepticism,”

Cape Cod Times, November 12, 2002.

20. “Support for Cape Wind Rises Ahead of Hearings Next Week,”

Cape Cod Today, March 6, 2008.

Chapter 5

1. Jeremy Reimer, “Total Share: 30 Years of Personal Computer Market

Share Figures,” http://arstechnica.com/old/content/2005/12/total-share.

ars/4.

2. Ibid.

3. Thomas Kang, “Global Smartphone Sales Forecast by Operating

System: 2002 to 2015,” Strategy Analytics, October 14, 2010,

268 Notes

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 268

http://www.strategyanalytics.com/default.aspx?mod=reportabstractviewe

r&a0=5818.

4. Nick Saint, “Whole Foods Is Pushing Its Foursquare Promotion

Hard,” Business Insider, August 27, 2010, http://www.businessinsider.

com/wholefoods-is-pushing-its-foursquare-promotion-hard-2010-8.

5. http://shopkick.com/.

6. Ibid.

7. http://twitter.com/#!/BRITNEYSPEARS.

8. Christopher Steiner, “Meet the Fastest Growing Company Ever,”

Forbes.com, August 12, 2010, http://www.forbes.com/forbes/2010/0830/

entrepreneurs-groupon-facebook-twitter-next-web-phenom.html.

9. Wailin Wong, “Gap’s Groupon Pulls in $11 Million,” Chicago Tri-

bune, August 20, 2010, http://articles.chicagotribune.com/2010-08-

20/business/sc-biz-0821-groupon-20100820_1_gender-and-zip-code-chi

cago-startup-coupon-site.

10. Jennifer Van Grove, “Mayors of Starbucks Now Get Discounts

Nationwide with Foursquare,” Mashable, May 17, 2010, http://mashable.

com/2010/05/17/starbucks-foursquare-mayor-specials/.

11. “Site Profile for MySpace.com,” Compete, http://siteanalytics.

compete.com/myspace.com/; Emma Barnett, “Facebook Hits 500m: So-

cial Media by Numbers,” The Telegraph, July 21, 2010, http://www.

telegraph.co.uk/technology/facebook/7903071/Facebook-hits-500m-so-

cial-media-by-numbers.html.

12. Robin Wauters, “Lycos Is Still Around—Sold by Daum to Ybrant

in $36 Million Deal,” TechCrunch, August 16, 2010, http://techcrunch.

com/2010/08/16/lycos-ybrant/.

13. Faith Merino, “Etsy Raises $20M for Some $300M Valuation,”

VatorNews, August 27, 2010, http://vator.tv/news/2010-08-27-etsy-

raises-20m-for-some-300m-valuation.

Chapter 6

1. M. G. Siegler, “Bill Gates: In Five Years the Best Education Will

Come from the Web,” TechCrunch, August 6, 2010, http://techcrunch.

com/2010/08/06/bill-gates-education/.

Notes 269

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 269

2. Association to Advance Collegiate Schools of Business, 2010 Busi-

ness School Data Trends.

3. Rakesh Khurana, From Higher Aims to Hired Hands: The Social

Transformation of American Business Schools and the Unfulfilled Promise

of Management as a Profession (Princeton, NJ: Princeton University Press,

2009).

4. Graduate Management Admission Council, “Profile of GMAT

Candidates,” http://www.gmac.com/gmac/ResearchandTrends/GMATStats/

ProfileofCandidates.htm.

5. Harvard Business School, “Perspectives: MBA Class Profile,”

http://www.hbs.edu/mba/perspectives/class-statistics/.

6. “A Post-Crisis Case Study: The New Dean of Harvard Business

School Promises ‘Radical Innovation,’” in Schumpeter (blog), The Econo-

mist, July 29, 2010, http://www.economist.com/node/16691433.

7. Richard Barker, “No, Management Is Not a Profession,” Harvard

Business Review, July–August 2010.

8. Harvard Business School, “Statistics,” http://www.hbs.edu/about/

statistics/mba.html.

9. Lou Dubois, “How to Implement a Continuing Education Pro-

gram,” Inc.com, August 18, 2010. http://www.inc.com/guides/2010/08/

how-to-implement-a-continuing-education-program.html.

10. Harris Interactive, Harris Vault archive,

http://www.harrisinteractive. com/Insights/HarrisVault.aspx.

11. Seth Godin, Learning from the MBA Program, 06/04/2009,

http://sethgodin.typepad.com/seths_blog/2009/06/learning-from-the-

mba-program.html.

12. Sam S. Adkins, “The U.S. PreK-12 Market for Self-Paced eLearn-

ing Products and Services: 2010–2015 Forecast and Analysis,” Ambient

Insight Targeted Report, January 2011.

13. “The New 3 E’s of Education: Enabled, Engaged, Empowered;

How Today’s Students Are Leveraging Emerging Technologies for Learn-

ing,” Speak Up 2010 National Findings, Project Tomorrow 2011, April

270 Notes

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 270

2011, http://www.tomorrow.org/speakup/pdfs/SU10_3EofEducation_

Students.pdf.

14. Clayton Christensen, Curtis W. Johnson, and Michael B. Horn,

Disrupting Class: How Disruptive Innovation Will Change the Way the

World Learns (New York: McGraw Hill, 2008).

15. I. Elaine Allen and Jeff Seaman, “Class Differences: Online Edu-

cation in the United States, 2010,” Babson Survey Research Group and

the Sloan Consortium, November 2010.

16. George Lorenzo, “Online Degrees Make the Grade: Employer Ac-

ceptance Now Common,” commissioned by Western Governors Univer-

sity, July 2008, http://www.wgu.edu/about_WGU/george_lorenzo.pdf.

17. “The Future Is Now,” BizEd, May–June 2008, http://www.aacsb.

edu/publications/archives/mayjun08/24-35_bized_mj08.pdf.

18. Human Capital Lab, Bellevue University, “Talent Management

Showcases Human Capital Lab and Bersin & Associates Tuition Assis-

tance Research,” October 19, 2009, http://www.humancapitallab.org/

news.php?id =29.

19. Human Capital Lab, Bellevue University, “Sun Learning Services

Sun Learning eXchange (SLX),” June 30, 2010, http://www.

humancapitallab.org/article.php?id=221.

20. Kathy Chu, “Average College Credit Card Debt Rises with Fees,

Tuition,” USA Today, April 12, 2009, http://www.usatoday.com/money/

perfi/credit/2009-04-12-college-credit-card-debt_N.htm.

21. Dave Ramsey, The Total Money Makeover: A Proven Plan for Finan-

cial Fitness.

22. “Personal Finances: The Final Frontier for Social Media; Results

of a National Survey of Young Adults,” conducted for AARP, October

2009, http://www.lifetuner.org/press/Personal_Finance__Final_Frontier_

for_Social_Media.pdf.

23. Ibid.

24. On average female income, see Suze Orman, Women and Money:

Owning the Power to Control Your Destiny (NY: Spiegel & Grau, 2007); on

Notes 271

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 271

women’s control of wealth, see “Women: The Fragile Financial Super-

power,” http:// knowledge.allianz.com/en/globalissues/demographic_

change/gender_diversity/women_money_us.html.

25. On debt levels, see Liz Perle, Money, A Memoir; on financial inse-

curity, see “Woman Fear Retirement More Than Men—For Good Rea-

son,” ConsumerAffairs.com, July 23, 2008, http://www.consumeraffairs.

com/news04/2008/07/retirement_women.html.

272 Notes

107124 99c 263-272 r2 vs 9/19/11 8:03 PM Page 272

Acknowledgments

Writing Passion and Purpose has been a humbling and heartening experi-

ence. By design, it has been a collaborative effort—three authors, dozens

of contributors, hundreds of survey respondents, and a bevy of editors

and supporters. We are deeply grateful to all of those who have worked so

hard to make Passion and Purpose a reality. Any virtues in this book are a

credit to those who have helped us.

A special thanks is due to Peter Olson. From the beginning, Peter was

our guide, our mentor, and a constant source of creativity and encourage-

ment. Drawing on his wealth of experience in the publishing business,

Peter coached us through every step of the proposal writing process.

Without him, this book would not have been written.

We’re similarly indebted to the classmates, friends, and professors who

provided us with ideas, reviewed our early drafts, helped with survey distri-

bution, and encouraged us to persevere. This list includes Nitin Nohria and

professors Clayton Rose, Carl Kester, Tom Eisenmann, James Sebenius,

John Macomber, Nic Retsinas, Arthur Segel, Richard Tedlow, Ray Weaver,

and Joe Badaracco. We’d also like to thank Jim Aisner and our friends at

The Harbus—Elana Green, Joanne Knight, and Kay Fukunaga—as well as

Joey Castillo, Jerome Uy, Victor Calanog, William Panlilio, Gerald Yeo,

Tyone Almeida, Jonathan Harris, Andrew Hirsekorn, Sunil Pandita, John

Peek, Abhijit Dutta, Katharine Bowerman, and Nancy Howley.

We’d also like to thank Daisy Dowling, who shared her experience of

going through the proposal writing and manuscript process, and Anne

Myra Suarez and Jonathan Chu for their help in transcribing source doc-

uments and performing valuable research. We’d also like to express our

appreciation to the administration and staff at Harvard Business School

for providing us with resources required to complete the manuscript and

related research.

107124 99d 273-274 r1 rs 10/8/11 3:46 PM Page 273

274 Acknowledgments

Of course, the heart of this book is its pool of talented and passionate

contributors—those appearing in these pages and those providing con-

tent online and in other forums. Both the emerging and senior leaders

have been a genuine inspiration to us, and it was a privilege to work with

each of them. We’d also like to thank the participants in the MBA Stu-

dent Survey—whose views and opinions helped shape our thinking and

strengthened our conclusions—and all those at schools around the coun-

try who helped us reach this diverse pool of respondents. We’re particu-

larly grateful to Professor Bill George. Professor George is a living

reminder of “true north” leadership, a brilliant teacher, and a friend and

mentor to many. His support has been inspirational.

We could not have written, published, or promoted this book without

the talented and tireless team at Harvard Business Press. Melinda

Merino and Courtney Cashman were invaluable throughout the manu-

script development process, and their passion for bringing out the stories

of young leaders was contagious. Similarly, Jen Waring, Stephani Finks,

Julie Devoll, Nina Nocciolina, Liz Baldwin, and the rest of the Press team

have been instrumental in shaping the final product.

Finally, there are a few acknowledgments we’d like to make individually.

John would like to thank his family—John, Shea, Chris, Dustin, Elliot,

Sandy, Josh, Margaret, Karen, and Bryan—for their love and support.

And, as always, he is deeply grateful for the contributions and encourage-

ment of his wonderful wife, Jackie.

Oliver would like to thank his parents, Willy and Nanette, for nurturing

his entrepreneurial dreams, and his siblings, Joseph, Patrick and Patricia.

He is grateful for Jordana Valencia and her tireless patience and encour-

agement, and for Jennifer Kelly and Franz Alfonso for their patience as he

balanced a start-up with writing the manuscript.

Daniel would like to thank Mel, who was a constant source of inspira-

tion and ideas and who endured his endless enthusiasm for this work.

Daniel is forever grateful for his Mum, Dad, and brother Jason and their

unconditional love—sent all the way from home.

107124 99d 273-274 r1 rs 10/8/11 3:46 PM Page 274

Index

Accenture, 102, 155–156 accounting practices, 24, 25 Adams, Henry, 48 affirmative action, 110 Afghanistan

development in, 34–40 dreamfly in, 20–22

Aggarwal, Sanyogita, 61–66 agriculture

cocoa farming, 157 in India, 62–66 in Rwanda, 85–90 in Tanzania, 74–78

alignment of employees, 201–202 leadership education and, 230–231 of mission and values, 25–26 stakeholder, funding and, 32

Al Qaeda, 35–36 Alumni Perspectives Survey, 257 Amabile, Teresa, 126 Amazon Mechanical Turk service,

179–180 American Bankruptcy Institute, 224 Amyris, 149–150 Anderson, Ray, 168 Apple, 115, 187–188 Armano, David, 171 arts, 28–33 assessment

of happiness, 129 of public service program impact,

71–72

of risk, 39 assumptions, 107 asthma, 146 AT&T, 201 authenticity, 113–114, 120 authority, 241

Bain & Company, 16, 208 Bankers Without Borders, 43, 44 Barcott, Rye, 23–27 Barton, Dominic, 3, 7, 91–97 best practices, 15

in the arts, 31–33 business, for nonprofits, 24–25 nonprofit, for businesses, 25–26

Bill & Melinda Gates Foundation, 16, 23–24

Bloomberg, Michael, 12 Bluegrass Irrigation, 124–125, 129 boards and board members, 202,

232–233 Bockstette, Valerie, 151–157 Boston Consulting Group, 74 branding, 188 Brokaw, Tom, 130 Bronstein, Josh, 110–117 Buffett, Warren, 20 Bump, 187 Bush, George W., 12 business models

microfinance, 14 self-sustaining, 7

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 275

276 Index

Cape Wind, 158–163 capitalism, 154 Care.com, 120, 123 career paths, 239

boxed, 15 cross-sector, 12–14 generational differences in, 136 globalization and, 92–93 international, 56–60, 236 number of jobs in, 193 pace of change in, 53 specialization and, 52–53 sustainability as opportunity in,

149–150, 166–167 Carolina for Kibera, 23–27 Carrefour, 61 Carter, Kimberly, 104–109 Centers for Disease Control and Pre-

vention, 146 change

corporations as agents of, 41–46 differences in adaptation to, 108 difficulty of effecting, 148–149, 195 openness to, 94 pace of, 47–48 resistance to, understanding, 64–65 resistance to, in the arts, 29–31

Chao, Elaine, 12 Chidambaram, P., 12 China

lessons from, 95 “rise of the rest” and, 60 students from, 59 sustainability initiatives in, 165

Christensen, Clayton M., 216–217 Chun, Patrick, 210–215 civic engagement, 67–73 Civil Society Institute, 161 Clark, Shelby, 181–184 Clean Power Now, 158–163 climate change, 158–159, 165. See also

sustainability

Clinton, Bill, 11, 16 Clorox Company, 147–148 coaching. See mentors and mentoring Coca-Cola, 51, 103, 167, 168 Cohen, Ben, 168 Coleman, John, 4 collaboration, 7, 77, 260 communication

about sustainability, 141 diversity and, 115, 116–117

communities building online markets and,

177–178, 180 empowering, 183–184 power of, 183 rebuilding, 88–90 stakeholder, 258–259 in sustainable project development,

162, 169–170 competency-based education, 220–221,

237–238 complexity, 6–7, 57–58 conflict management, 115–116 constraints, 76 consultants, 40 context

in development programs, 88–89 globalization and, 92 sustainability and, 157

convergence. See sector convergence cost-benefit analysis, 24, 88–89 Craigslist, 176, 177 creativity. See also innovation

happiness and, 126 mobile technology and branding, 188

crowd-sourcing, 2, 6 cultures. See also diversity

bridging, 71 of family businesses, 62–63 globalization and, 91–92 inclusive, 138 leaders adapting to local, 135

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 276

Index 277

nonconforming, 104–109 one-firm, 91–92 resistance to change in, 31 style switching and, 135 trust, 65–66 values and, 58–59

Cummings, Charley, 158–163 curiosity, 97 Cusack, Jake, 34–40 customers, 93

diversity of, 100, 134–135 from emerging economies, 95–96 purchase decision factors and, 141 rationality and, 195 segmentation of, 172

customer service, 191–192 customization of learning, 220–222

Daily Show, The, 161 Dalai Lama, 55 Daubin, Scott, 210 decision making, 93, 113 Deloitte Consulting LLP, 127,

128–129, 141 Delta Air Lines, 189 Dev Bhumi Cold Chain Ltd.,

61–66 developing economies, 1

in conflict zones, 34–40 growth of vs. developed countries,

95–96 “rise of the rest” and, 60

development in conflict zones, 34–40, 85–90 cost-benefit analysis in, 88–89 Cusack on, 34–40 education in, 79–84 funding models for, 76 participatory, 24–27 reconciliation and, 85–90 sustainable, 42–43

Disrupting Class: How Disruptive Inno- vation Will Change the Way the World Learns (Horn, Christensen, and Johnson), 216

distribution, 176–177, 180 diversity, 2, 8, 99–138. See also global-

ization Bronstein on, 110–117 Carter on, 104–109 commonalities in, 106–107, 134–135 conflict management and, 115–116 desire for similarity vs., 192 Dohadwala on, 118–123 embracing, 243–244 expanded definition of, 100–101, 103,

135–136 fear of, 105–106 future of initiatives on, 138 Henretta on, 134–138 managing for, 108–109, 115–116 Moulton on, 130–133 organizational flattening and,

114–115, 116 professionalism and, 112–113 Schumacher on, 124–129 wholeness and, 116

Dohadwala, Tasneem, 118–123 Doochin, Jonathan, 228–234 dot.com bubble, 171, 249 dreamfly global initiative, 5, 17–22. See

also thedreamfly.org DuPont, 169

eBay, 176, 177, 189 Edna McConnell Clark Foundation,

31–32 education, 2, 9, 197–241

business school curricula and, 198–200, 215, 236

charter schools in, 151 Chun on, 210–215

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 277

education (continued) civic engagement and, 67–73 competency-based, 220–221,

237–238 for convergence, 14–15 cross-sector influences on, 50 diversity in, 100 Doochin on, 228–234 experience valued over, 62 exploration in, 18–19 failure in, 210–215 financial, 223–227 foreign students on, 59, 236 future of, 248 Global Citizen Year in, 79–84 Horn on, 216–222 inadequacy of current models, 9,

197–198 innovative, 244 interdisciplinary, 48 on interdisciplinary skills, 200 international opportunities in,

236–237 for leadership, 228–234 level of young leaders, 6, 9, 197 Lyons on, 235–241 Madamala on, 203–209 online, 217–222 real-world experience in, 199–202 secondary interests in, 52 on sustainability, 142–143, 144, 166 technology in, 216–222 values in, 199

Electronic Arts, 189 E-LOAN, 194–195 empathy, 84, 251 employees

alignment of, 201–202 attracting diverse, 112 as corporate change agents, 41–46 diversity of, 99–100 education assistance for, 220–221

empowerment of, 126 flexible workplace for, 102–103, 119,

122–123, 127–128, 136 getting buy-in from, 66 individualization and, 102–103 as “intrapreneurs,” 147–148 preparation of, for work, 81 sustainability and, 142–143, 144

Employee Value Proposition (EVP), 136–137

empowerment, 164 community, 183–184

entrepreneurship academia compared with, 247 Arabian Gulf, 70–73 in conflict zones, 34–40 convergence and, 17 in development programs, 86 learning from, 198 learning from failure in, 53 teaching, 200

environmental awareness vs. intelli- gence, 140–141

ESPN Scorecenter, 188 Excelestar Ventures, 118–123 exercise, 128–129 experience

cross-sector, 12–14 diversity and, 8 in education, 199–200 globalization and, 93–94 global perspective from, 58–59 as learning norm, 84 seeking new, 97 valued over education, 62

externalities, 58–59, 89–90

Facebook, 113, 115, 172 Places, 192–193

failure conflict zone development and, 39

278 Index

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 278

cutting losses on, 39, 250 learning from, 53, 210–215 resiliency and, 97

Falik, Abigail, 79–84 family. See work-life balance family businesses, 62 fear, 105–106 feedback, 204, 207, 208 Festo, Tabitha, 23 financial literacy, 223–227 Fishman, Annie, 145–150 flexibility

job, 136 workplace, 102–103, 119, 122–123,

127–128 focus, 191, 244 Ford, Henry, 215 Founder Collective, 175 Foursquare, 172, 174, 186, 192–193 Frei, Frances, 113–114

Gamble, James, 134 Gates, Bill, 14, 20, 132, 197 Gates Foundation. See Bill & Melinda

Gates Foundation Gelb, Peter, 29, 30–31, 33 gender, 62. See also diversity

financial literacy and, 225–226 work-life balance and, 102–103,

118–123 workplace flexibility and, 137

General Electric, 201 Capital, 149 ecomagination program, 153

generational differences, 6–7 analysts vs. leaders, 203–209 in attitudes about work, 135–136,

193–194 in diversity, 114 education level, 6, 9, 197 Gergen on, 47–48

technology in, 171, 172–173 genocide, 86–87 George, Bill, ix–xiv Gergen, David, 3, 7, 47–54, 216 Germany, racism in, 104, 105–106 Gillette, 164 Global Citizen Year, 79–84 globalization, 1, 2, 7, 55–97

Aggarwal on, 61–66 Barton on, 91–97 career paths and, 56–60, 92–93 changing views of, 56 complexity and, 57–58 Falik on, 79–84 Goodman on, 67–73 identity and, 58–59 Laidlaw on, 74–78 leadership development and, 56–60 leadership skills and, 93–94 Maloney on, 85–90 “rise of the rest” and, 60 understanding, 243 values and, 58–59

GMAT exam, 199, 257 Godin, Seth, 214–215 Goldman Sachs, 168 Goodman, Andrew, 58–59, 67–73 Google, 14, 102–103, 238 Gore, Al, 143, 146–147 Graduate Management Admissions

Council, 257 Grameen Foundation, 44 Grauer, Peter, 155 Greatest Generation, The (Brokaw),

130 gross domestic product (GDP)

climate change and, 159 nonprofit, 11

Groupon, 173–174 Gudrais, Elizabeth, 119 Gulati, Daniel, 5 Gurwin, Jason, 185–190

Index 279

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 279

happiness, 124–129, 136–137 exercise and, 128–129 leadership and, 230 managing for, 129

Harman, Sidney, 52 Harvard Business School

applications to, 199 Corporate Social Responsibility

Interest Group, 146–147 diversity in, 100 field-based learning in, 200 Leadership Fellows Program,

152 LGBT life at, 113–114 mission of, 198 Pitch for Change, 81 Portrait Project, 151 Social Enterprise Club, 12, 77–78,

146 Social Enterprise Conference, 32 Social Enterprise Initiative, 12

Hawken, Paul, 139, 168 health and health care, 50

physical fitness and, 128–129 sustainability and, 145–147

Hennepin County Human Services and Public Health Department, 127–128

Henretta, Deborah, 3, 8 Hewlett-Packard (HP), 156 Holliday, Chad, 167 Home Depot, 221 Homer, Chris, 175–176 Horn, Michael B., 216–222 Hotel Rwanda, 86–87 HP. See Hewlett-Packard human capital. See talent Human Rights Campaign, 103 humility, 132–133 Hwang, Jason, 217 hybrid organizations, 12 hybrid vehicles, 141

IBM, 202 Corporate Service Corps, 84 Future Leaders Survey, 6–7 Global Leaders Survey, 56, 57 Institute for Business Value, 257

identity, 4–5 based on profession, 22 core values and, 27 corporate, 202 globalization and, 58–59 hiding, 111–112 nonconforming, 104–109 self-awareness and, 82

iMovie, 187 impact assessment, 71–72 incentives

in development programs, 88–89 happiness and, 136–137 sustainability and, 164

Inconvenient Truth, An (Gore) 143, 146–147

India agriculture in, 62–66 business schools in, 199 Dev Bhumi Cold Chain Ltd. in,

61–66 “rise of the rest” and, 60 students from, 59

innovation American commitment to, 251 disruptive, 216–222 diversity and, 116, 117, 137 experimentation and, 238 future of, 251–252 pace of, 96 profitability and, 160–161 resistance to in the arts, 29–31 sustainability and, 147–148

INSEAD, 100 Instituto Exclusivo, 125–126 intellectual challenge, desire for, 6 Internet, 1, 171

280 Index

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 280

government innovation in, 51 leadership skills and, 49 trust and, 183

investment conflict zone development and

long-term, 38 in mobile technology, 189–190 in sustainability, 142, 155, 157,

165–166 iPhone, 190 Iraq, development in, 34–40 Isdell, Neville, 168 It Happened on the Way to War: A

Marine’s Path to Peace (Barcott), 23

Jackley, Jessica, 12 JetBlue, 103 Jobs, Steve, 114, 115 Johnson, Curtis W., 216–217 JPMorgan, 41–43 Just, Alex, 68, 69 Just Enough: Tools for Creating Success

in Your Work and Life (Stevenson), 128

Kennedy, Joe, 8–9, 191–195 Keynote, 187 Kibera, Africa, 23–27 Kiva, 12, 181–182, 183–184 Kraft, 167 Kraft iFood Assistant, 188

Laidlaw, Katie, 74–78 Lassiter, Joe, 176 leadership

accepting, 244 analysis vs., 203–209 in the Arabian Gulf, 72 around the world, 250–251 authentic, 113–114

authority and, 241 buy-in for public service programs,

44–45 concentric circles in, 49 for diversity, 102–103, 113–114, 192 education for, 228–234 empathy in, 84 feedback and, 204, 207 globalization and, 56–60 humility and, 132–133 lack of diversity in, 100 legacy of, 167–168 long and short view in, 96–97 one-size-fits-all, 64–65 self-awareness and, 206–209 service and, 130–133 skills for, 49–50, 93–94 structured, 232 sustainability and, 164, 168–169 trust and, 241 values in, 47 wholeness and, 116, 229–231

Leadership Development Groups (LDGs), 230

Leadership Institute at Harvard College (LIHC), 228–234

learning. See also education cross-sector, 50, 77 diverse styles of, 117 for employees, 137 globalization and, 7 innovation in, 244

LearnVest, 225–227 Lehman Brothers, 118 Leung, Antony, 12 Linden, Larry, 167 location-based technology, 1, 172, 174

future of, 192–193 Pushpins, 185–190

long-tail view, 99, 102 in climate change models, 159 in corporate learning, 218–219

Index 281

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 281

Louis Harris and Associates, 201 Lubin, Oliver, 175–176 Lycos, 174 Lyons, Rich, 3, 9, 235–241

Madamala, Kishan, 203–209 “Make Your Own Luck” (Stevenson),

168 malaria prevention, 41–42 Malmstrom, Erik, 36 Maloney, Christopher, 59, 85–90 management

corporate learning and, 219–222 for diversity, 108–109, 115–116 globalization and, 60, 92 for happiness, 129 interdisciplinary, 60 trade-offs in, 124–129 work-life balance and, 113, 123

Marcelo, Sheila, 120 marketing, 147–148 markets

building online, 175–180 researching, 72 subsidies in, 178–179 two-sided, 174, 176–177

Mars, 157 Massachusetts Institute of Technology

(MIT), 51, 158–159 Mass Career Customization (MCC),

127 mass customization, 218–219 MBA Oath movement, 249 MBA Student Survey, 3, 255–262

on cross-sector career importance, 13–14

crowd-sourcing in, 2 on diversity, 100–101 on international careers, 56–57, 59 on sustainability, 139–140 on technology, 173–174

McKinsey & Company, 16, 43, 202 Global Survey, 57 happiness metrics at, 129 responses of, to globalization, 91–92

McNamara, Robert, 12 media, risk assessment based on, 39 Mendhro, Umaimah, 17–22 mentors and mentoring, 202

collective, 232–233 for convergence, 14–15 diversity and, 108 feedback from, 207, 208 in leadership education, 228–234 in nonprofits, 33 timing of, 121 women and, 121

Metropolitan Opera, 29–31, 33 Michigan State University, 141 microfinance programs, 14, 43,

181–182 Microsoft Corporation, 19, 22 military, ideal of service in, 130–133 MITS Altair 8080, 171 mobile technology, 172, 173, 185–190 Mohamed, Salim, 23, 26–27 Moles, Kelli Wolf, 41–46 Morgan Stanley, 61, 223, 225 Moulton, Seth, 130–133 Mountain School, Vermont, 145 Mozah Bint Nasser Al-Misned, 68–69 multinational organizations

convergence in, 16 globalization and, 57–58 organization issues for, 70–71

Myanmar, 118–123 Myers-Briggs test, 218 MySpace, 174

Nakache, Patricia, 180 Netflix, 103 networks. See also social media

282 Index

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 282

facilitated, 221 social, 233, 251

Nike+, 188 Nohria, Nitin, 3, 245–253 nonprofit sector

accounting practices for, 24, 25 arts, 27–33 business best practices for, 24, 25 Carolina for Kibera, 23–27 funding models for, 32, 76 impact assessment for, 71–72 Mendhro on, 17–22 mission-values alignment in, 25–26 overhead in, 32 revenue levels in, 11 stakeholder approach in, 26 transitioning to nationals in, 72–73

Nooril-Iman Foundation, 118

Obama, Barack, 49 Ocarina, 187 Office, The, 110 Oliver, Mary, 151 Olson, Peter, 5–6 Open Doors report, 79 optimism, 244–245 organizational structure, 70–71

diversity and, 114–115 entrepreneurship and, 230 sustainability and, 141

Pakistan, 17–18 Paley, Eric, 175, 179–180 Palin, Sarah, 114 Pandora, 191–195 passion, 4–6 patience, 252–253 Paulson, Hank, 12, 168 pay it forward, 107 Peace Corps, 80

Pepsi, 189 performance issues, 126, 127 Petraeus, David, 130 Pew Research Center, 6, 257 photovoltaic panels, 148–149 physical fitness, 128–129 Porter, Michael, 51, 152, 154 poverty

gender differences in, 226 participatory development and, 24–27

Prahalad, C. K., 200 Prius, 156–157 private sector

as change agent, 41–46 in conflict zone development, 36–40 employment levels in, 11 family businesses, 62

privatization, 12, 14 problem framing, 238, 239 problem solving, 207, 238 processes, 32 Procter & Gamble, 8, 134–138, 164,

202, 208 professionalism, 112–113 profitability

conflict zone development and, 38–39 as motive in conflict zones, 35–40 nonprofit sector, 11–12 performance assumptions and,

194–195 short-term vs. long-term, 249 as spur to innovation, 160–161 sustainability and, 8, 51, 139–170 triple bottom line approach to,

152–153 Project Poverty, 42–43, 44, 45 Project Spark, 41 protectionism, 57 publicity

for Global Citizen Year, 82 for public service programs, 45 for QatarDebate, 70

Index 283

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 283

public relations, sustainability as, 152 public sector

in conflict zone development, 36–40 employment levels in, 11–12 private sector lessons for, 38–39 regulation and, 49 role of, in business, 249

public service programs, 41–46 for employees, 128 measuring impact of, 71–72

purpose, 4–6, 201–202, 235 Pushpins, 185–190

QatarDebate, 67–73 Qatar Foundation, 68–69 Quincy, 28

Rand Corporation, 227 Rauch, Jonathan, 16 recession

learning from, 7 negative stereotypes from, 5 poor values as cause of, 25–26 protectionism and, 57 sustainability and, 149–150

reconciliation, 85–90 regulation, 49, 250

diversity viewed through, 110–117 environmental, 154

Reinhart, James, 175–180 relationships

in Indian agriculture, 65–66 leadership and, 2, 205–206 sustainability and, 160 work-life balance and, 102–103,

118–123 RelayRides, 8, 181–184 religion, 103 renewable energy, 51

marketing, 148–149

wind farms, 158–163 reputation systems, 183 resilience, 97, 203

failure and, 215 resource scarcity, 7, 142–143, 165–166.

See also sustainability results-only work environment

(ROWE), 127–128 return on investment

of training, 221, 222 review processes, 45 “rise of the rest,” 60 risk

anticipating, 94 avoiding in education, 214 in conflict zone development, 39 evaluation of, in development

programs, 85–90 sustainability and, 152–157 trampoline vs. safety-net view and,

152–157 R. J. Reynolds, 103 Roberts, Carter, 3, 8, 164–170 Romney, Mitt, 12 Roshan Telecom, 40 Rubenstein, David, 53 Rwanda, 85–90

Salazar, Ken, 161 Sant, Roger, 167 SAP, 156 Saturn, 191 Savage Beast Technologies, 191 Sawhill, John, 167 School for Field Studies Center for Sus-

tainable Development, 146 Schumacher, Benjamin, 124–129 sector convergence, 2, 7, 11–54, 243

Barcott on, 23–27 career management for, 14–15 cross-sector careers and, 12–14

284 Index

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 284

Cusack on, 34–40 education on, 79–84 generational differences in, 7 Gergen on, 47–54 leadership and, 166–167 Mendhro on, 17–22 Moles on, 41–46 nonprofit/for-profit dialogue and, 33 organization management for,

15–16 perspective from, 94 transfers in, 50–51 Wallace on, 28–33

security, 40 Sega, 187 Segovia, W. Oliver, 4–5 self-awareness, 206–209 sensitivity training, 102, 110 service, ideal of, 130–133 sexual orientation, 103, 111–112 shareholder value, 26 shopkick, 172 significance, 128 Singapore government, 16 SlingPlayer Mobile, 186 social enterprises, 7, 32, 74–78 Social Learning eXchange (SLX),

221–222 social media, 172, 174

dreamfly and, 21–22 offensive vs. defensive corporate use

of, 49–50 for online community building,

177–178 professionalism and, 115 trends in, 192 work-life balance and, 113

social return on capital, 88–89 Social Security Administration, 227 social value, 5

of business, 246 of development programs, 85–90

technology and, 181–184 Solyndra, 148–149 Spears, Britney, 173 specialization

interdisciplinary study vs., 48 limiting, 52–53

stakeholders, 26, 258–259 Stanford Graduate School of Business,

198 Staples, 128 Starbucks, 50, 156, 174 Stevenson, Howard, 128, 168 Stewart, Jon, 161 strategic planning, 24–25 style switching, 135 subscription services, 194 Sun Microsystems, 221–222 Super Monkey Ball, 187 suppliers, 93 sustainability, 2, 8, 139–170

authenticity and, 155 Bockstette on, 151–157 business models for, 7 career paths and, 165–167 at Coca-Cola, 51 community involvement in, 162,

169–170 as competitive factor, 143–144, 168 Cummings on, 158–163 definition of, 139 in development projects, 42–43 education on, 142–143, 144, 166 environmental awareness vs. intelli-

gence and, 140–141 as fad, 165 Fishman on, 145–150 focus on, 244 footprint reduction and, 156 green bubble in, 143, 165–166 investment in, 155, 157 leadership for, 168–169 marketing, 147–148

Index 285

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 285

sustainability (continued) mass awareness of, 142, 143,

146–147 of philanthropy, 41–46 product development and, 156–157 profitability and, 8, 51, 139–170 rankings on, 144 regulation and, 49, 154 Roberts on, 164–170 trampoline vs. safety-net view of,

152–157

talent. See also mentors and mentoring cross-sector training of, 16 developing, 33 generating local, 72 globalization and development of, 96 hiring global, 91 pipeline development, 208 proactive searches for, 40 public service programs and, 43–44 sustainability and, 168 universities’ role in developing, 51

technology, 2, 8–9, 171–195 business strategy and, 174 Clark on, 181–184 clean, 149–150, 248 connecting offline resources and,

182–183 constant connectivity from, 96 in education, 216–222 fluency in, 244 globalization and, 92 Gurwin on, 185–190 hardware cost shifting, 189–190 Kennedy on, 191–195 location-based, 1, 172 management and, 92 mobile, 172, 185–190 pace of change in, 115

Reinhart on, 175–180 social good and, 181–184 two-sided marketplaces and, 174 user experience in, 187–188 Web 2.0, 172, 173 work-life balance and, 113

TechnoServe, 74–78 Tedlow, Richard, 206 Texas Instruments, 103 thedreamfly.org, 17–22. See also dream-

fly global initiative thredUP, 5, 8, 175–180 3M, 103 TOMS shoes, 15 Toyota, 156–157 training programs

for convergence, 14–15, 16 online, 218–222 real-world experience in, 200–202 return on investment of, 221 sensitivity, 102, 110

Trinity Ventures, 180 trust

in Indian agriculture, 65–66 leadership and, 241 online systems and, 183

Twitter and, 113, 173, 186 Tyson Foods, 103

uncertainty, 54 conflict zone development and, 38 globalization and, 56–57

UN Global Compact, 155–156 Urban Institute, 11 U.S. Agency for International Develop-

ment (USAID), 38–39 U.S. Bank, 221 U.S. Postal Service, 179–180 U.S. State Department, 79 U.S. Treasury Department, 11

286 Index

107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 286

value creation, 32–33 convergence and, 16 shared, 151–157 sustainability and, 143–144

values alignment of, 25–26 changes in, over time, 248–249 core, 27 education and, 239 in family businesses, 66 financial crisis resulting from poor,

25–26 globalization and, 58–59 happiness and, 124–129 of leaders, 47 teaching, 199, 239–241 trade-offs with, 124–129 women and, 123 work-life balance and, 102–103,

119–120 Verizon, 221 vertical integration, conflict zone devel-

opment and, 39–40 vision, 164 Vitamin Water, 128 volatility, 57, 94

Wallace, Christina, 28–33 Walmart, 61, 153, 167 Walton, Sam, 20 war, economic development in, 34–40 Web 2.0, 172, 221–222 well-being, subjective, 128 Western Governors University, 220 Wexner, Les, 53

Wharton, Joseph, 198 Wharton School, 198 Whole Foods, 172 wholeness, 102–103

alignment and, 201–202 authenticity and, 113–114 conflict management and, 115–116 diversity and, 110–117 happiness and, 126–127, 136–137 leadership and, 229–231 self-awareness and, 206–209 sexual orientation and, 111–112 women and, 122–123

“Why Men Still Get More Promotions Than Women” (Ibarra, Carter, and Silva), 121

Willis, Ali, 68, 69 Willyerd, Karie, 222 wind farms, 158–163 work-life balance, 102–103, 113, 235

expectations for, 136–137 generational differences in, 193 women and, 118–123

world order, 1 worldview, 6–7 World Wide Web, 171 World Wildlife Federation, 167

Yale School of Management, 12, 146 Yelp, 172 Young Entrepreneurs Alliance (YEA),

128

Zuckerberg, Mark, 172

Index 287

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107124 99e 275-288 r1 vs 9/19/11 8:05 PM Page 288

About the Contributors

Sanyogita Aggarwal leads business development at Dev Bhumi Cold Chain Ltd. in Delhi, India. She received her MBA at Harvard Business

School in 2010. San talks about the decision to return to India after

studying abroad and the surprising, often counterintuitive, lessons she’s

learned in bringing global best practices to a traditional family business.

Rye Barcott cofounded Carolina for Kibera in 2001. He graduated from Harvard with an MBA and MPA, is a TED Fellow and a World Economic

Forum Young Global Leader, and works at Duke Energy. His first book, It

Happened on the Way to War: A Marine’s Path to Peace, was published by

Bloomsbury in April 2011. He is passionate about participatory development.

Valerie Bockstette graduated from Brown University with a degree in economics and international relations. After three years as an investment

banker, she came to Harvard Business School and discovered her passion

for social impact. She is currently a director at FSG, a nonprofit consult-

ing firm specializing in shared value strategies.

Josh Bronstein has been a human capital consultant since 2005, special- izing in talent and change management strategies. Josh holds an MBA

from Harvard Business School and a bachelor of science in industrial and

labor relations from Cornell University. He is passionate about helping

people bring more of themselves to work.

After five years in the consulting practice, Kimberly Carter now works as a senior manager in the Leadership Development Group focused on tal-

ent development and corporate university launch for Deloitte. Kimberly

earned a BS in accounting from Florida A&M University and a minor in

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German from Florida State University. She is passionate about education

and leadership development.

Patrick Chun is a venture capitalist and technology investor at Bain Capi- tal Ventures. Patrick graduated from Harvard Business School in 2010,

where he was copresident of the HBS Student Association, the student

body of Harvard Business School. Patrick explains how his greatest learn-

ings at business school did not occur in the classroom or even result from

his successes, but rather from his failures, and how business education is

at a unique juncture to foster innovation by encouraging experimentation

and fast failure.

Shelby Clark graduated from Harvard Business School in 2010. Prior to HBS, Shelby received a degree in biomedical engineering from North-

western University. After serving as a director at Kiva, he started Re-

layRides, the world’s first peer-to-peer car-sharing service backed by

Google Ventures, where he now serves as CEO. Shelby is passionate

about companies with a cause.

Charley Cummings remains vice president of Clean Power Now. After graduating from Brown University in 2006 with a degree in public policy,

he spent three years as a management consultant. His other experience

includes designing the corporate social responsibility strategy of an or-

ganic soup company and working for a member of the House of Com-

mons in the British Parliament. He graduated from Harvard Business

School in May 2011. He is a passionate believer in clean technology and

renewable energy.

Jake Cusack is a former Marine Corps officer who served in Iraq as a sniper platoon commander and intelligence officer from 2005 to 2008.

He graduated with a joint degree from the Harvard Business School and

Harvard Kennedy School in 2011, and has written extensively about en-

trepreneurship and economic growth in Afghanistan. He is passionate

about economic development in conflict zones.

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After graduating from Wellesley College, Tasneem Dohadwala joined an equity sales strategy team at Lehman Brothers. She left to join the

Nooril-Iman Foundation, where she executed a program of economic

self-sustainment in Myanmar and construction of a medical clinic in

Yemen. After graduating HBS in 2009, she cofounded Excelestar Ven-

tures. She reflects on the evolving roles and expectations of women in

business.

Jonathan Doochin is the founder of the Leadership Institute at Harvard College and chairman of the Board of Overseers. He also serves as the

CEO of Leverett Energy, a firm focused on financing and developing en-

ergy efficiency and renewable energy. He has spent time as a management

consultant at McKinsey & Company and is a serial entrepreneur. Jon ex-

plores three themes that guide the future of leadership development.

Abigail Falik is the founder and CEO of Global Citizen Year and a recog- nized expert in the fields of education reform, international development,

and social innovation. For her work as a leading social entrepreneur, she

has received awards from the Draper Richards Foundation, the Mind

Trust, and the Harvard Business School. Abigail has made a commitment

to using global immersion as a way to equip the next generation of leaders

with the empathy and insight needed to overcome twenty-first-century

challenges.

Annie Fishman graduated from Yale University with a BA in environmen- tal studies and political science. She came to Harvard Business School

after working in the nonprofit sector. After graduating from HBS, she

held a number of brand management positions and is currently senior

marketing manager for Amyris Biotechnologies. She’s the current vice

president of the HBS Green Business Alumni Association and a passion-

ate believer in achieving the impossible.

Andrew Goodman graduated from the Harvard Business School in 2010 as a Baker Scholar. Before attending HBS, Andrew cofounded QatarDe-

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bate, a civic engagement initiative that aims to develop and support the

standard of open discussion and debate among students and young peo-

ple in Qatar and the broader Arab world. Andrew’s story helps young lead-

ers appreciate the importance of cultural intelligence, the right

partnerships, and a pipeline of local leaders in building ventures in unfa-

miliar markets.

Jason Gurwin is a serial entrepreneur. After graduating from Wharton with an economics degree, Jason started two successful companies in the

media and entertainment space. He graduated from Harvard Business

School in May 2011 and now serves as CEO of Pushpins, the mobile

coupon company he cofounded while at Harvard. He is passionate about

the power of mobile applications to change people’s everyday lives.

Michael B. Horn is the cofounder and executive director for education of In- nosight Institute, a not-for-profit think tank devoted to applying the theories

of disruptive innovation to problems in the social sector. He is also coauthor

of Disrupting Class: How Dispruptive Innovation Will Change the Way the

World Learns with Clayton M. Christensen and Curtis W. Johnson. Michael

found his passion in using technology to advance education in America.

Katie Laidlaw is a consultant in the New York City office of the Boston Consulting Group. Prior to joining BCG, Katie was a senior associate at

the Parthenon Group and served as executive director of Inspire, Inc., a

nonprofit organization that advises community-based nonprofits. She is

passionate about international development and future growth in public-

private partnerships.

Kishan Madamala is a former store team leader at Target. He completed his MBA in 2010 at Harvard Business School, where he was awarded a

Rock Entrepreneurial Fellowship. Kishan tells the story of a whole gener-

ation who were trained as “good analysts” but were poor leaders, and how

this learning gap represents the single biggest opportunity for business

schools and corporations.

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Chris Maloney works as a management consultant on projects for public and private sector clients across Africa, especially in agriculture, health

care, and policy. A native of New York, he holds a BA in economics and

African/African-American studies from Stanford University, and both an

MPA/International Development and an MBA from Harvard University.

In reflecting on his experience in Rwanda, Chris realizes how unfamiliar

environments abroad can lead one to reevaluate traditional notions of

business risk and social return.

Born in Pakistan and raised in Saudi Arabia, Umaimah Mendhro was the first woman in her family to leave the country for higher education. She

studied human development at Cornell University and completed her

MBA from Harvard Business School as a Baker Scholar. Umaimah is cur-

rently a senior manager at Microsoft Corporation, where she leads corpo-

rate entrepreneurship and incubation efforts. She is also the cofounder of

thedreamfly.org, a global initiative that strives to create human connec-

tions across communities in conflict around common causes.

Seth Moulton graduated from Harvard College in 2001 and served four tours as a Marine Corps infantry officer in Iraq, two as a platoon com-

mander and two as a special assistant to General David Petraeus. In

2011, he graduated with a joint degree from Harvard Kennedy School

and Harvard Business School. He is passionate about service and bring-

ing his experience in the Marines to bear in the private sector.

James Reinhart is the founding CEO of thredUP, an online kids’ clothing swap. He believes in the power of social technology for creating new online

communities. Prior to attending the Harvard Business School and the

Kennedy School, while working in the Bay Area, he helped develop one of

the nation’s premier public schools, Pacific Collegiate School—recently

named the number seven high school in America by U.S. News & World

Report. He cofounded Beacon Education Network, a charter management

and school turnaround organization, and was a Goldsmith Fellow in Social

Enterprise at HBS and a George Fellow at the Center for Public Leadership.

About the Contributors 293

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Benjamin Schumacher is from Lexington, Kentucky, and studied psy- chology at Washington University in St. Louis. Ben has worked in man-

agement consulting for Deloitte Consulting, McKinsey & Company, and

Instituto Exclusivo in La Paz, Bolivia. He holds an MBA from Harvard

Business School and finds happiness working with education-oriented

nonprofits.

Alexa Leigh Marie von Tobel is the founder of LearnVest, Inc., and serves as its chief executive officer and director. She received an AB in psychol-

ogy with honors, with a citation in romance languages and literature at

Harvard College. Alexa feels passionate about making personal finance

education fun and accessible to everyone. She believes that for the next

generation of students, mastering financial literacy will be just as impor-

tant as learning to read or write.

Originally from Lansing, Michigan, Christina Wallace now lives in New York City where she is the cofounder of Quincy, an early-stage online

women’s professional apparel company. She holds a BA in mathematics

and theater studies from Emory University and an MBA from Harvard

Business School. She has worked as a professional musician, actress, the-

ater director, and arts administrator at organizations including Theater

Emory, Georgia Shakespeare, Actors Express, the Schwartz Center for

Performing Arts, and the Metropolitan Opera. Contact her through

www.christinamwallace.com.

Kelli Wolf Moles worked in investment banking at JPMorgan in New York before graduating from Harvard Business School with the class of

2011. Kelli is founder and CEO of Project Spark, a nonprofit that promotes

sustainable philanthropy and organizes volunteer trips. Kelli is passionate

about helping businesses give employees greater purpose through public

service.

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www.christinamwallace.com

About the Authors

John Coleman holds an MBA with High Distinction from Harvard Business School, where he was a Dean’s Award Winner for leadership and

service and Class Day speaker. He also holds a MPA from the Harvard

Kennedy School, where he was awarded both a George Fellowship and a

Zuckerman Fellowship for public leadership.

Raised in Columbus, GA, John attended Berry College as an under-

graduate, where he was a U.S. national public speaking champion in

2004. He has experience in both asset management and the nonprofit

sector, and his work and education have taken him to places like Europe,

Asia, and the Middle East. John published a book on communications

in 2009 and has written for numerous publications including Harvard

Business Review and Forbes.com.

After school, John returned to management consulting at McKinsey &

Company and lives in Atlanta with his wife, Jackie. He is passionate about

his faith, his family, writing, public policy, and leadership development.

Daniel Gulati holds an MBA from Harvard Business School, where he was both a George F. Baker Fellow and an Arthur Rock Entrepreneurial

Fellow. He was selected to receive the Robert F. Jasse Distinguished

Award in Entrepreneurship & Leadership.

Daniel holds a Bachelor of Commerce with Distinction (Economics

and Accounting) from the University of New South Wales, where he

served as an Associate Lecturer in Accounting. He has been a Senior As-

sociate at the Boston Consulting Group and worked at Macquarie Bank.

Daniel is currently the Founding CEO of FashionStake, a venture-

backed fashion company based in New York City. Prior to FashionStake,

Daniel founded and successfully exited two consumer products companies.

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www.forbes.com

Born and raised in the Philippines, W. Oliver Segovia holds an MBA with Distinction from Harvard Business School where he was a

LeBarron-MacArthur-Ellis Fellow and a board director of the Harbus

News Corporation. Oliver graduated with honors from the Ateneo de

Manila University, where he was an Asian debating champion and found-

ing editor of a student business journal.

In 2005, Oliver won first prize in the World Bank International Essay

Competition for his work on an educational social venture. Growing up in

a family of entrepreneurs, Oliver is passionate about emerging markets,

innovation, entrepreneurship, and leadership. His work experience spans

consumer products, publishing, real estate, and e-commerce. Oliver

worked with Procter & Gamble Asia, where he helped launch new prod-

ucts and marketing campaigns in emerging markets.

Oliver has lived in Singapore, Bangkok, and Boston. After business

school, he returned to Manila and cofounded a real estate company and

an e-commerce start-up.

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Contents
Foreword
Introduction
Chapter 1: Convergence

Floating Above the Boxes
Learning from Kibera
Commerce and Culture
Iraq, Afghanistan, and the Business of Peace
Business in the World
Interview with David Gergen

Chapter 2: Globalization

Bridging Two Worlds
QatarDebate
Emerging Social Enterprise
Global Citizen Year
The Business of Reconciliation
Interview with Dominic Barton

Chapter 3: People

Nonconforming Culture
Diversity Day
Women and the Workplace
Joyful on the Job
People Leadership from Baghdad to Boston
Interview with Deb Henretta

Chapter 4: Sustainability

A Sustainable Career
From Safety Nets to Trampolines
The Value of Community Partnerships in Addressing Climate Change
Interview with Carter Roberts

Chapter 5: Technology

Building an Online Marketplace
Technology and Social Good
Mobile Millennials
Interview with Joe Kennedy

Chapter 6: Learning

The Leadership Boot Camp
The MBA of Hard Knocks
The New Corporate Classrooms
Tackling Financial Illiteracy
The Education of a Millennial Leader
Interview with Rich Lyons

Moving Forward
Capstone Interview with Nitin Nohria
Appendix: About the Passion and Purpose MBA Student Survey
Notes
Acknowledgments
Index
About the Contributors
About the Authors