The Last Lecture

UAGC | Interview with Steve Forbes

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Hello, students, and welcome to your MBA program. We are beyond excited and honored to have Mr. Steve Forbes with us today. That's right. Steve Forbes, as in the Forbes School of Business and Technology. Steve is the chairman and editor-in-chief of Forbes Media.

He writes the fact and comment editorial column for each issue of the Forbes magazine. He's a four-time recipient of the Crystal Owl award and has authored a number of thought-provoking books. Steve's thoughts and opinions are very sought after, as he appears on a number of television programs. Additionally, Steve was twice a candidate for presidency of the United States.

My name is Brenda Forde, and I'm the MBA program chair for here at the Forbes School of Business and Technology. For all of our students, I wanted to get some thoughts from Steve regarding the program you are starting. So Steve, what value do you see earning an MBA in today's marketplace?

Well, the purpose of an MBA is to give you the tools you need to go back out into the work world and be more productive and have more opportunities than ever before. So part of it is practical knowledge, part of it too is giving you the self-confidence by completing this course that you can face situations that are unanticipated. We always face crisis. So it's about pursuing opportunities and dealing with the inevitable challenges that come your way in the business world.

Great, Steve. Let's now get more specific to the MBA program. We have carefully planned the overall program to cover current business topics. And it's a balance, as you were mentioning, a balance of theory, but to your point, much more practical real world skills.

Each course has been carefully designed to enhance specific skills. Steve, I wanted to get your thoughts on several of these skills that we've built into our MBA program. Let's start with leadership. How do you see that being important in the business world?

It's through leadership you get things done. And leadership is not barking out orders like a drill sergeant in the military. That's not going to work. You have to figure out how do you get trust, how do you get that sense of direction, how do you get to people with diverse backgrounds-- left brain, right brain, young or old working for a common cause. And so it's inspiring trust and also conveying that you have the competence, even if it's an unknown area you're going into to see the thing through successfully.

What's your thoughts on critical thinking, analyzing issues, making decisions, overcoming problems, demonstrating originality? How do you see that play out in the work world?

Well, one of the things that marks a leader is seeing things that others don't. And one of the things you can start training yourself for is when you look at something, you see a certain product. But do you see possibilities there?

The most vivid example, of course, is Starbucks. Anyone can make coffee. Everyone sells it. Airlines still serve a version of it for free. The last I looked, it was Starbucks that saw the idea that if you created in a certain way, put in a certain atmosphere, you could turn this common commodity into a high margin business.

So look around you and do that critical thinking. And when a problem arises, see is there an opening here for an opportunity, not just a problem? As Peter Drucker said, you don't make money solving problems. You make money pursuing opportunities. So even when a crisis comes your way, figure out how can I turn this into something that moves the ball forward?

In our MBA program, we're emphasizing not only written skills. But we're practicing a lot of oral communication skills as well. What do you see the importance of that being in the business world?

Well, communications comes through practice. For most of us, we're not born great operators. We have to learn how to do it. And part of good communications is what is it you're trying to communicate? What is the point you're trying to get across?

And this is where you should read Hemingway, Ernest Hemingway and others. Simplicity, as Churchill said, the English language can be very forceful when you use simple sentences, use active verbs. And so that way, you can learn to get points across.

But also, you have to figure out with your audience, who are you talking to? What is it you want them to react to? The message for one audience may not work with another audience. So it attunes you to what people you want from people, what they want from you. It's selling.

I mean, the whole point of free markets is meeting the needs and wants of other people. And that partially comes from understanding their needs and wants. As Steve Jobs once said, when he was asked do you do marketing surveys, he said, no, because people don't know what they wanted until I show them.

But for having figuring out-- and by golly, he did marketing when he had the product-- but in terms of coming up with something, you'll often have to rely on your gut. So communication's verbal. That comes from practice. And the key thing is at the beginning, you're going to be terrible. You're probably going to be very, very nervous. And it just comes through sheer practice.

Warren Buffett had to learn how to communicate. So don't be bashful that you're not going to get the Academy Award the first time you go up. Constant repetition-- I should say, practice-- is the key to success in communications.

That is great advice for our students. And hopefully, our students will listen to that over and over as they complete their assignments throughout the program. That's great.

And they shouldn't hesitate. Even though it may seem vain, go before a mirror. Try to see how people are going to see you and convey something. Go on YouTube and see how others do it-- both well and not so well. And you'll learn, and you'll pick it up.

Great points-- thanks, Steve. The last one I want to talk about is vision, being strategic. How do we be able to see it, articulate it, and make it happen? A critical component of our core coursework is this. What is your take on the skill of being able to identify the vision?

Well, vision is another word for where do you want to go. What is it you're trying to achieve and involves two parts of it. One is perhaps seeing something that others don't or reaching a certain goal but also then figuring out how do you achieve it. Everyone has great ideas, but making it happen is quite something else and seeing what others don't. I'm talking about Steve Jobs again.

When he went to Menlo Park-- a research area for Xerox-- back in the late 1970s, he saw something they were working on that Xerox didn't realize the importance of what became the mouse. He saw the importance of it. He developed it. He didn't invent it, but he saw something there that even the inventors did not.

So always look and keep asking yourself, where do we want to go? And also see things that others don't, which will inspire others to give you that indispensable asset, trust.

I want to now turn our attention. I hope you're going to be OK with this. But we're hoping for a slightly more personal question. An important part of success is branding, be it a company or for yourself.

You carry the well-known name, the brand of Forbes. So in a way. You're a brand. For our students, can you give us your perspective on how you create and protect the brand?

Well, brand is shorthand for a message for what it is you're trying to do. And for us, I learned as a kid, in the first issue of Forbes, founded by my grandfather over 100 years ago-- 101 years ago-- he said in the first issue of Forbes he was an immigrant to this country-- one of 10 children, grade school education, very little money.

But when he started Forbes, he said in the very first issue. He said the purpose of business is to produce happiness, not to pile up money and what we call today entrepreneurial capitalism. And that's what you have to keep in mind-- have that purpose and then things become a lot easier. You know the old saying, if you don't know where you're going, every road will take you there.

Steve, do you have any final thoughts you want to present to our MBA students as they start their program?

My grandfather, one of his favorite words was sticktuitiveness, really going through things. A lot of times, things are a lot of scut work. There's no glamor in it.

You're wondering where it's going. But stick to it and also realize you will make mistakes. None of us arrive on this stage fully formed.

We learn. And sometimes we learn painfully, but it doesn't mean the end of the world. Got plenty of people, great men, great women have had stumbles but pick yourself up and realize you have it within you to move forward. Don't fall back and stay fallen back. Get up and move ahead

Steve, such wonderful advice for students. I want to thank you for taking the time today and talking with our students. Thank you very much.

Thank you and good luck to you.

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