Steve Schwarzman, cofounder and CEO of Blackstone, one of the world’s largest investment firms, shares his journey in his memoir “What It Takes.” This comprehensive account not only delves into his life but also imparts invaluable lessons on leadership, ambition, and the transformative power of artificial intelligence.
The Origins of an Ambitious Leader
Schwarzman’s early years were marked by a drive that set him apart. Growing up in an entrepreneurial family in Philadelphia, where his father ran a curtain store, he was surrounded by business acumen. However, while his father was content with a single store, Steve harbored greater ambitions. His high school days were filled with initiatives like bringing top bands to perform, and in college, he founded a dance society, ostensibly to meet girls but also to refine his organizational skills.
His journey in finance began at Lehman Brothers, where he joined as a trainee and discovered his true calling. The year 1985 marked a turning point when he co-founded Blackstone with Pete Peterson. From a modest start, Blackstone grew into a behemoth managing over $500 billion in assets.
Clarity of Purpose and Thinking Big
A recurring theme in Schwarzman’s narrative is the need for clarity of purpose. Leaders must dare to think big and realize the profound impact of AI. One of his favorite sayings encapsulates this ethos: “It is just as easy to do something big as it is to do something small.” This belief has been a cornerstone of his approach to leadership and business.
The Courage to Act
Schwarzman emphasizes that successful leaders possess the confidence and courage to act decisively. They take risks when others hesitate and act when others are paralyzed by indecision. This trait, he argues, distinguishes true leaders from mere managers. “To be successful, you have to put yourself in situations you have no right being in,” he asserts. This mindset has propelled him through numerous challenges, ultimately leading to success.
Stepping Up to Lead: Insights from Renowned Figures
Leadership is not merely about managing tasks but about inspiring and influencing others. Several notable figures have shared their wisdom on what it means to lead:
- Peter Drucker: “Leadership is lifting your vision to higher sights, raising your performance to a higher standard, building your personality beyond normal limitations.”
- Barack Obama: “Change will not come if we wait for somebody else, or some other time. We are the ones we’ve been waiting for. We are the change that we seek.”
- Sara Blakely: “Don’t be intimidated by what you don’t know. That can be your greatest strength and ensure that you do things differently from everyone else.”
- Steve Blank: “Great entrepreneurial DNA is comprised of leadership, technological vision, frugality, and the desire to succeed.”
- Nelson Mandela: “Courage is not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”
- Maya Angelou: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
- Steve Jobs: “Your time is limited, so don’t waste it living someone else’s life … Have the courage to follow your heart and intuition.”
- Jack Ma: “Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine.”
Defining Leadership in the Modern World
As we approach 2030, with 3.5 billion people expected to make up the global workforce, the nature of leadership is evolving. With approximately half likely to be self-employed, leadership in various forms will be essential. However, surveys reveal a leadership crisis: many employees believe they can perform better without their supervisors, and only 15% feel truly engaged at work.
Leadership vs. Management
“Managing” involves control and efficiency, while “leading” is about inspiration, motivation, and enabling others to achieve more. Managers do things right; leaders do the right things. This distinction is crucial in understanding why leadership is more about influencing people and providing a sense of direction and purpose.
The Role of a Leader
Leadership is not confined to a job title or position of authority. It is a choice, rooted in confidence, vision, courage, and the ability to engage others. Leaders look ahead, shape the future, and help others navigate through disruptions to the status quo.
- Indra Nooyi: “I think the fundamental role of a leader is to look for ways to shape the decades ahead, not just react to the present, and to help others accept the discomfort of disruptions to the status quo.”
- Zhang Ruimin: “Leaders of other enterprises often define themselves as captains of the ship, but I think I’m more the ship’s architect or designer. That’s different from a captain’s role, in which the route is often fixed and the destination defined.”
- Chris Kempczinski: “The single most important thing I have to do as CEO is ensure that our brand continues to be relevant.”
- Adena Friedman: “I think my leadership style can be called ‘collaborative command.’ You bring different opinions into the room, you allow for a really great debate, but you understand that, at the end of the day, a decision has to be made quickly.”
- Hubert Joly: “We need an urgent refoundation of business and capitalism around purpose and humanity. To find new ways for all of us to lead so that we can create a better future, a more sustainable future.”
Shaping the Future: The Essence of Leadership
Leaders must envision and shape the future. According to Marissa Mayer, former CEO of Yahoo!, leadership is about helping others believe in a better tomorrow. This forward-looking approach is vital for navigating the complexities of today’s business environment.
The Leadership Code
Dave Ulrich’s “The Leadership Code” outlines five overarching roles of leaders:
- Strategist: Leaders shape the future.
- Executor: Leaders make things happen.
- Talent Manager: Leaders engage today’s talent.
- Human Capital Developer: Leaders build the next generation.
- Personal Proficiency: Leaders invest in their own development.
Ulrich emphasizes that leadership should not be developed in a vacuum. Instead, it should connect leaders to strategy and value creation. The most crucial question for leaders is, “Where are we going?”
The Strategic Role of Leaders
Modern leaders need to set a clear purpose, envision the future, and articulate ambitions. This strategic contribution is essential for organizational success. Leaders like Warren Buffett remind us that while delivering returns to shareholders is crucial, the real challenge lies in defining a purpose and being the moral compass of the organization.
New Leadership Paradigms
Leadership today is less about command and control and more about inspiration, influence, and action. Leaders are seen as catalysts, communicators, connectors, and coaches:
- Catalysts: Stimulating and stretching the organization, asking important questions, adding energy and urgency.
- Communicators: Articulating purpose, vision, and direction, building empathy and trust.
- Connectors: Encouraging collaboration and innovation, connecting ideas and people.
- Coaches: Supporting and enabling others to deliver better results, encouraging confidence.
Purpose-Driven Leadership
Organizations like Danone exemplify purpose-driven leadership. Their leadership style, defined by “CODES,” emphasizes behaviors that bring values and beliefs to life:
- Create a meaningful future: Challenge the status quo and generate breakthrough ideas.
- Open connections inside and out: Embrace new thinking and develop networks.
- Drive for sustainable results: Foster a culture of speed, agility, and sustained value creation.
- Empower yourself and diverse teams: Release the power of teams with support and freedom.
- Self-aware: Recognize personal strengths and development needs to maintain balance.
Quiet Leaders, Inspiring Leaders
Pablo Isla, CEO of Inditex, exemplifies quiet leadership. His unassuming nature and focus on team success have driven Inditex’s remarkable growth. Isla’s leadership style avoids hierarchy, emphasizes humility, and empowers frontline managers.
Growing as a Leader
As leaders progress, their roles evolve from technical to strategic, from managing tasks to managing portfolios. This transition requires a shift in perspective and responsibility. Leadership development involves moving from a functional expert to a general manager, from short-term to long-term thinking, and from managing activities to optimizing value creation.
Evaluating Leadership Styles
Understanding your natural leadership style is crucial. Leaders often need to adapt their style to different situations. For example:
- Transformational: Encourages growth and opportunity.
- Visionary: Provides direction and builds confidence.
- Pacesetting: Energizes teams to achieve goals.
- Servant: Supports others to act as they see fit.
- Coaching: Empathetically supports individual needs.
- Affiliative: Reassures and builds team cohesion.
- Laissez-faire: Entrusts people to deliver results.
- Transactional: Provides clear tasks and interventions.
- Bureaucratic: Follows defined processes.
- Consultative: Seeks input before making decisions.
- Persuasive: Explains decisions and seeks to persuade.
- Autocratic: Directs actions, often in crisis situations.
The Impact of Leadership
Leadership is ultimately measured by its impact on people and organizational performance. Effective leaders inspire and influence others, driving activities that achieve organizational goals. The success of leaders like those at Real Madrid’s Santiago Bernebéu stadium underscores the importance of empowering teams to respond and make decisions in real-time.
Wrapping Up
Steve Schwarzman’s memoir “What It Takes” offers profound insights into leadership, ambition, and the power of thinking big. By embracing clarity of purpose, daring to act, and realizing the transformative potential of AI, leaders can shape the future. The journey of leadership is about continuous growth, adaptation, and the relentless pursuit of excellence. It is about inspiring others to believe in a better tomorrow and guiding them towards achieving it.
Leaders must embody courage, humility, and vision. They must engage, inspire, and amplify the potential of their teams. As the world evolves, the need for effective leadership has never been greater. The lessons from Schwarzman and other renowned leaders provide a roadmap for aspiring leaders to navigate the complexities of the modern business landscape and create a lasting impact.
