For its first-ever virtual graduation ceremony, IIT-Bombay had Stephen Schwarzman, founder, chairman and CEO of Blackstone, the world’s largest alternative asset investment firm, address its 2020 graduating class on August 23 afternoon by video. Blackstone is one of the largest private market investors in India with assets of $40 billion in market value, and the largest owner of commercial real estate in the country.
“If only we knew then how drastically the world was about to change. This year has turned nearly every aspect of our lives, upside down, with the coronavirus pandemic bringing unexpected challenges and disrupting big and small plans around the world,” said Schwarzman, who visited the IIT campus earlier in March this year.
He emphasised how India had a unique position especially when it came to technology, where it had established global leadership through its talent. “India produces an incredible 1.5 million engineers every year – that’s almost eight times the number produced in the US where I helped found the MIT Schwarzman College of Computing. India’s high standards in engineering education were established by the IITs, and this has become increasingly apparent on the world stage ––And also, on the Blackstone stage.”
A hunting ground for Blackstone
Schwarzman, a billionaire who is counted as one of the world’s best investors, thanked IIT for making Blackstone what it was in India. His firm, which manages nearly $500 billion, hired more than 50 professionals from the IITs and fifteen of the sixteen members of its India private equity team were IIT-ians, including nine IIT Bombay alumni such as Amit Dixit who ran Blackstone’s private equity business in India and was co-head for Asia.
Demonstrating how far reaching IIT management had gone worldwide he told the students that “four of the ten largest tech companies in the world – Microsoft, Alphabet, IBM and Adobe – have CEOs of Indian-origin, two of which – Sundar Pichai and Arvind Krishna – are IIT graduates. I’m sure you were aware of these IIT-ians, but did you also know that of the 72 Indian-origin engineers who have founded unicorns across the world, 50 percent are IIT alumni.”
Schwarzman went on to tell them that as IIT alumni they represented the next generation of future leaders and would define the global technology landscape.
“You will help build a world in which technology fundamentally alters life as we know it. I hope you also feel a strong sense of responsibility for ensuring that technology evolves in a way that benefits all of mankind,” he said adding that his 50-year career in business had led him to author his first book What It Takes: Lessons in the Pursuit of Excellence in which he had included the top rules for success, and the four important ones were as followed:
The four cardinal rules
The first: aim high. “I have always believed that if you’re going to commit yourself to something, it’s as easy to do something big as it is to do something small. Both will consume your full time and energy, so think carefully about their ultimate upsides and potential,” he said. “In the long term it’s important to reach for a fantasy that is worthy of your pursuit.”
Second: every crisis is an opportunity. “One of the most valuable skills I have learned is the ability to identify new opportunities, even in moments of crisis or after experiencing a setback,” Schwarzman said. “Take the current global pandemic for example. While daunting, the unprecedented nature of this crisis presents a unique opportunity for you to sharpen your ability to spot risk early on in your career.” Ask yourself, he told students to question what decades-long trends were being challenged?
How is it changing how people think and behave?
Third: innovate. “As I look at the world today, one of the most pivotal drivers of future global growth will be artificial intelligence. The game-changing nature of AI cannot be understated – it will impact almost every field of human endeavor. But whether the technology will be a force for good or whether it will disrupt society and life as we know it remains to be seen,” he said.
Everyone needs to take steps to maximize AI’s benefits while minimizing its risks. But as India’s leading technologists, “the burden falls even more squarely on your shoulders. It will be up to you to define India’s role in the global transformation being driven by AI and to ensure that India is included in the conversation on international governance and cooperation in this area,” he said.
Fourth: hold yourself accountable, he told the class of 2020. Remember two words: excellence and integrity. “As graduates of IIT, you don’t need me to tell you about excellence. As for integrity, the easiest way I can explain it is in terms of reputation. To earn a great reputation, think long term. Stick to your core values and never deviate from your sense of right and wrong,” he said.
In conclusion, the co-founder of Blackstone told graduates that success boiled down to rare moments of opportunity and to be open, alert, and ready to seize them. “The most accomplished individuals have the confidence and courage to act when opportunity appears. They accept risk when others are cautious and act when everyone else is frozen, but they do so wisely.”
Pavan Lall is a senior journalist based in Mumbai.
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