2023 FTMBA grads land record number of VC jobs

two guys standing in front of a sedan
Will McKelvey, MBA 23, (right) met with 43 founders in five days on a cross-country trip to Berkeley in 2021 with his college roommate. McKelvey was planning on pursuing venture capital at Haas. He now works at VC fund Lerer Hippeau.

Before Will McKelvey arrived to enroll in the full-time MBA program at Berkeley Haas in 2021, he and his college roommate drove cross-country to California. Along the way, McKelvey, who was planning a career in venture capital, met with as many startups as possible—a whopping 43 founders in five days. McKelvey, an Ohio native, even launched a blog sharing his impressions of venture opportunities from Dayton to Detroit to Chicago.

“You can’t dabble in VC,” McKelvey, MBA 23, who became interested in the economic power of startups while working for Democratic Congressman Ro Khanna for four years, said. “If you decide it’s your thing, go all in. It’s not a space for tourists.” 

At Haas, McKelvey didn’t let up, interning at multiple venture firms and serving as co-president of the Haas VC Club. Now an investor at early-stage VC fund Lerer Hippeau, McKelvey is among a record number of 2023 Berkeley Haas MBA graduates working in the field of venture capital.

Will McKelvey is now an investor at early-stage VC fund Lerer Hippeau.

“VC is the second-biggest sector for finance jobs among our MBAs,” said William Rindfuss, a member of the Haas Professional Faculty who leads strategic programs for the finance faculty group and manages financial services recruiting at Haas. “Only investment banking drew more recent grads.”

Fourteen of the 2023 FTMBA graduates accepted employment in venture capital, a record high. Of that group, half work for venture funds, and half have joined venture arms of tech, health care, and financial services companies, Rindfuss said. 

Rindfuss attributes the growth to the support of the Berkeley Haas alumni network, comprehensive courses in venture capital, including New Venture Finance, an increase in campus resources for VC, and the school’s Bay Area location. 

Proximity to venture firms gives students the ability to explore VC through both in-semester internships and summer internships over the course of the two-year MBA program. Such a portfolio of experiences can lead to full-time offers. But as Rindfuss notes, landing a job in venture capital differs widely from investment banking.

Proximity to venture firms gives students the ability to explore VC through both in-semester internships and summer internships over the course of the two-year MBA program.

That’s where the students’ hard work comes in with landing internships and jobs. While big banks recruit on campus through a structured process, VC firms expect students to get their attention and come to them, which might mean writing whitepapers on emerging subsectors or reaching out to firms with project ideas in order to build their networks.

Just as the Haas Finance Club has long been a major source of support for Haas students pursuing investment banking, the VC Club has grown into a similar resource, Rindfuss said. The club leads an annual VC Speaker Series course, drawing senior partners and associates from Bay Area VC funds, who offer both big picture and tactical advice.

A pivot from tech to VC

For Aparna Chaganty, MBA 23, breaking into venture capital meant landing an internship with Bessemer Venture Partners. An engineer from India with a master’s in information systems (MIS) degree from Carnegie Mellon, Chaganty was a data scientist and product manager at Salesforce when she started exploring a career pivot.

Aparna Chaganty, MBA 23, works for Bessemer Venture Partners in India.

“I really enjoyed building new technology, but I also wanted to know what other paths there were out there,” she said.

Venture capital piqued her interest as a perfect way to combine her tech background with entrepreneurship. “I have always found the growth story of startups extremely inspiring,” she said. “In VC, you can be really close to bringing about change and creating new value in the economy.”

Chaganty ended up accepting a full-time role as an investor at Bessemer Venture Partners in India, an opportunity to return to her home country. Though it hadn’t been her plan at the start, she said she was thrilled by the opportunity to join after Bessemer raised its first India fund. “There is so much entrepreneurship coming out of India,” she said. “Being part of that zero-to-one story is a once-in-a-generation opportunity and being a VC at Bessemer gives me a front-row seat to witness and contribute to that change.”

Crafting your own opportunities

Alex Rohrbach, MBA 23, came to Haas after several years working as a consultant at McKinsey and at an on-demand staffing startup. 

portrait of a man in a blue shirt
Alex Rohrbach, MBA 23, is at Thomvest Ventures.

He discovered that both experiences were applicable in VC. “Very quickly, I could add value to busy VCs who needed extra help,” he said. By doing projects with multiple VC firms during the school year in his free time, Rohrbach got exposure to various funds and VCs, helping him learn how they think and structure deals. 

“Many MBAs don’t realize that they have a lot of skills they can apply on day one with a VC firm,” Rohrbach said. “Aspiring VCs can develop a thesis about an industry, source companies on campus, and help organize events. If you figure out what you’re good at, you can craft your own opportunities.”

Rohrbach graduated with a job at Thomvest Ventures, a 25-year-old San Francisco fund. He spent his summer internship with Thomvest but says it was never a direct path to full-time employment. 

“Each fellowship and internship was a stepping stone, but I didn’t know exactly where I would end up,” he said. In his first year at Haas, he got a fellowship at Pear VC, an early-stage venture firm. He also received a Haas Entrepreneurial Finance Fellowship, providing a $5,000 cash award and mentorship with a Haas alum. “Even more valuable than the money was the access to a mentor – in my case, Andrew Krowne at Dolby Family Ventures,” Rohrbach said. 

Rohrbach also consulted during his first year with Union Labs, a VC firm that past Haasies worked for. 

“I started to build a portfolio of work so that by the time I was interviewing for summer internships, I had a lot I could talk about,” he said. 

Rindfuss and others at Haas hope the number of students pursuing venture capital will only continue to grow as Haasies find homes at more VC firms and bring their experience and advice to future students. 

“As more of our graduates succeed in venture capital, we are developing a stronger pool of alumni that will support our students,” Rindfuss said. “It’s an exciting time.”

Gen AI, hybrid work, and DEIB are hot topics at 6th annual Culture Connect Conference

All of the speakers from day two of the conference pose for a photo on stage.
Photo: Jordan Joseffer

More than 250 business leaders and academic researchers gathered at Berkeley Haas from Jan. 9-10 for the sold-out Culture Connect Conference, sharing challenges and insights on creating high-performing, inclusive cultures in the age of generative AI and hybrid work.

The sixth annual conference, organized by the Berkeley Haas Center for Workplace Culture and Innovation (BCC), featured talks by top leaders from IBM, Lyft, Pixar, LinkedIn, Hubspot, and other leading companies, along with hands-on workshops and discussions. It was led by the center’s Co-Founding Directors Jennifer Chatman and Sameer Srivastava, and organized by Program Director Audrey Jones.

Chatman, the Paul J. Cortese Distinguished Professor of Management at Haas, said she was struck by the stories leaders shared of trying, failing, and trying again as they have experimented in real time with AI and hybrid work. 

“My biggest takeaway is that an experimental mindset is critical as organizations approach these very significant changes that everyone is facing today,” Chatman said. “Organizations are going through seismic shifts in how they are thinking about and conducting work. The conference was fascinating because leaders shared their stories—the good and the bad—as they navigate these changes.”

People sit at tables listening to a presentations in a large event room with big windows.
Photo: David Ho

This was the first year the conference was open to the broader public beyond invited presenters and BCC partners. Attendees included about 100 academics and 150 industry leaders from a diverse range of industries, including health care, biopharmaceuticals, media, tech, financial services, film, government, and nonprofits. Seventy companies represented.

“The combination of research-backed evidence from academics and practical advice from seasoned industry leaders is difficult to bring together but when it happens, it yields a level of insight that could not be achieved by either perspective alone,” added Srivastava, the Ewald T. Grether Professor of Business Administration and Public Policy. “We’re immensely grateful to every speaker, workshop leader, facilitator, and participant who contributed to making this a meaningful event of learning and connecting.”

A person reads a poster about leading culture.
Photo: Jordan Joseffer

Day 1: Diverse perspectives on organizational culture academic research

The first day of the conference emphasized research, with presentations from 34 scholars from around the world who examine culture through the lens of sociology, social psychology, and economics. Keynote talks included Paul Ingram of Columbia on how people tend to conceal social class identities; Doug Guilbeault of Berkeley Haas on how gender biases tend to be stronger and more persistent in online images than in text; Anita Williams Woolley of Carnegie Mellon on how the drivers of collective intelligence in teams differ from individual intelligence; and Leo Bursztyn of the University of Chicago on how to create social change by correcting misperceptions about prevailing norms. 

Former Haas Dean Rich Lyons, Associate Vice Chancellor and Chief Innovation & Entrepreneurship Officer at UC Berkeley, and Laura Hassner, executive director at UC Berkeley Innovation & Entrepreneurship, reported on the success of the UC Berkeley Changemaker program, a campus-wide certificate program including about 30 courses addressing critical thinking, communication, and collaboration—and enrolling about 20% of undergraduates.

Doctoral student Yingjian Liang of Indiana University Bloomington won the Edgar Schein Best Student Paper Prize. Second place went to Danyang Li of Berkeley Haas.

Day 2: Deep dives into three key themes 

Future of work and hybrid workspaces

Yamini Rangan speaks on stage.
Photo: Jordan Joseffer

The second day of the conference was attended by about 200 industry leaders and academics. HubSpot CEO Yamini Rangan, MBA 03 (left), sat down with Chatman (right) for a fireside chat. Rangan said companies should treat culture as a product that management consistently refine. “You have to evolve your culture every day, every week, like a product,” Rangan said. She also emphasized the importance of building a team of leaders, rather than building a leadership team to make culture inclusive. “Culture is how people behave when leadership is absent,” she said.

Nicholas Bloom, an economics professor at Stanford, shared data on how firms are adapting to remote and hybrid work across different sectors of the economy. Bloom noted that the effect of remote work on productivity has been neutral, while the impact on productivity has been typically positive. “Organized hybrid has won,” he said. 

Kristen Sverchek, president of Lyft, detailed the company’s journey with hybrid work, and Martine Haas, a management professor at the Wharton School, offered a framework for thinking about a firm’s hybrid culture. 

Laszlo Bock speaks on stage.
Photo: Laura Counts

In a fireside chat with Srivastava (above right), Laszlo Bock, CEO and co-founder of Humu & Gretel.ai (above left), discussed how to help employees find meaning and connection while using hybrid work models. Bock, who formerly worked in People Operations at Google, shared an impactful exercise used at Google: Find three or four interesting stories about people within the company, and brief execs on these stories again and again so that they retell the stories. These stories aren’t PR, he said—they will resonate to help give a sense of a strong, cohesive culture.

DEIB focus

A panel of five people engage in a discussion on stage.
Photo: Jordan Joseffer

Shifting focus, Co-founder, Coach, and Consultant Kia Afcari (above left) moderated a roundtable on diversity, equity, inclusion, and belonging. 

During the discussion, Reema Batnagar, vice president of people at Pixar (2nd from left), emphasized the importance of using personal stories as a way to foster inclusion and belonging at work. David W. Kim, chief DEI officer at NetApp (2nd from right), discussed why corporate leaders must maintain the momentum of their DEI efforts despite recent pushbacks. David Pedulla, a sociology professor at Harvard (right), highlighted the extent to which various forms of discrimination still persist in the labor market. 

Sa-kiera Hudson, an assistant professor at Haas (middle), shared recent research findings that emphasize the importance of understanding intersectionality, specifically how gender and race can work together to amplify or dampen various forms of bias. Hudson emphasized that people are complex and we should never assume that their experience within a group is aligned with their perceived identity.

Chris Bell and Jamie Woolf pose for a photo on stage.
Photo: Jordan Joseffer

CreativityPartners Chief Associate Chris Bell (above left) and Co-founder and CEO Jamie Woolf (above right) led a workshop on how to create a sense of belonging through mutual storytelling.

 

Generative AI’s transformative role

Nickle LaMoreaux speaks on stage.
Photo: Brandie Brooks

In a fireside chat with Chatman (above right), Nickle LaMoreaux, chief human resources officer at IBM (above left), described how she and her colleagues have been harnessing AI to transform the role of HR in the organization.

 

Three people engage in a discussion on stage.
Photo: Jordan Joseffer

MIT Professor Kate Kellogg (above middle) and Warwick Business School Professor Hila Lifschitz-Assaf (aboove left) discussed a generative AI field experiment conducted at Boston Consulting Group. Hatim Rahman (above right), an assistant professor at the Kellogg School of Management, shared research on the importance of technological certification in the labor market.

Two people engage in a discussion on stage.
Photo: Jordan Joseffer

Teuila Hanson (above left), chief people officer at LinkedIn, emphasized the need to take a people-centric approach when adopting AI tools and technologies, since human skills—including human intuition that AIs lack—are critical. “The future of work is still human,” she said.

Berkeley Haas to offer new master’s degree in business and climate solutions

many students sitting in a classroom wiht professor at the front of the room
Senior Lecturer Andrew Isaacs teaches the Climate Change and Business Strategy class at Haas, which just launched a concurrent MBA/Master in Climate Solutions degree. Photo: Jim Block

The Haas School of Business and the Rausser College of Natural Resources at UC Berkeley have launched a concurrent MBA/Master of Climate Solutions (MCS) degree program to prepare the next generation of sustainability and climate leaders.

The new program, enrolling for fall 2024, will allow full-time MBA students to earn both a Master of Business Administration and a Master of Climate Solutions degree in five semesters, or two-and-a-half years. The application deadlines for the first MBA/MCS cohorts are January 4, 2024, and March 28, 2024.

The MBA/MCS degree is designed for early-career professionals who plan to take their careers to a higher level of business leadership, grounded in understanding of sustainability and climate change challenges and opportunities. 

Berkeley Haas Dean Ann Harrison said the new program will draw from the strength of both schools, allowing students to learn from some of the world’s top minds in climate change, sustainability, and business. 

“Future business leaders will require a depth of training in both business and climate change to work across disciplines and execute competitive strategies,” Harrison said. “This new program will provide a breadth of skill sets, equipping our grads to lead in building a sustainable, low-carbon future.” 

“Future business leaders will require a depth of training in both business and climate change to work across disciplines and execute competitive strategies.” — Haas Dean Ann Harrison.

The program aims to develop critical skills and knowledge in climate data science, carbon accounting, and lifecycle analysis, as well as technological and nature-based solutions.

Students in the MBA/MCS cohort will spend the first year completing MBA core coursework at Haas before moving to classes at Rausser.  The rigorous MBA curriculum includes courses in leadership, marketing, management, finance, data analysis, ethics, and macroeconomics, along with sustainability courses. 

Doubling down on sustainability

Under Harrison’s leadership, Haas has doubled down on sustainability through the creation of the Office of Sustainability and Climate Change and by revamping all of the MBA core courses to incorporate thinking about climate change and other sustainability challenges.

The new MBA/MCS degree program follows Rausser’s launch of its new Master of Climate Solutions degree. MCS courses will translate the fundamental science and groundbreaking discoveries of UC Berkeley experts, enabling professionals to learn how to evaluate technologies, develop just climate strategies, and remove barriers to implementing practical climate solutions. The MCS core curriculum includes teaching in the climate and environmental sciences, climate economics and policies, technological, business and nature-based solutions, training in analytical and quantitative skills, and applied exercises and engagements that emphasize adaptive thinking and problem-solving.

“The Master of Climate Solutions represents a critical step forward in expanding the interdisciplinary and highly interconnected community of practitioners needed to solve the climate crisis,” said David Ackerly, dean of UC Berkeley’s Rausser College of Natural Resources. “Students in the concurrent program will be able to leverage the critical climate knowledge and tools taught in the MCS, as well as the leadership and business skills that are core to Haas.”

“Haas and Rausser both have such impressive track records in climate research,”  added Michele de Nevers, managing director of the Office of Sustainability and Climate Change at Haas. “This program combines our offerings at the master’s level, with a keen focus on professional students, who are clearly positioned to make an immediate impact, and who serve a critical role as translators of academic insights and enacting these insights in the world.”

Addressing the Climate Challenge

All MBA/MCS students will participate in a semester-long capstone program that gives students the opportunity to partner with organizations operating across the business, government, and non-profit sectors. A unique leadership course on organizational, political, and societal change for climate solutions will prepare students to be change agents and leaders in businesses, nonprofits, and government agencies. 

“New research on climate solutions is still critical, but we already know many of the things we need to do to address the climate challenge,” said James Sallee, a professor in the Department of Agricultural and Resource Economics and faculty director of the MCS program. “What we really need are people spread throughout society and the economy who are in a position to take action on climate, and who are equipped with the tools to make the right choices. Educating those students is the vision of the MCS program.”

Summer internships are also crucial to the MBA/MCS program. Students will complete two summer internships, which will allow for deep immersion in different disciplines and more time to build relationships.

Haas now has four dual degree programs, including the MBA/MPH (public health), the MBA/MEng (engineering), and the MBA/JD (law).

A look back: Top Berkeley Haas moments of 2023

Gearing up to welcome a new year is the perfect opportunity to look back at highlights from 2023 at Berkeley Haas. A toast to 2023 wouldn’t be complete without marking the big celebrations, distinct milestones, grand achievements, and more than a few welcomes (alongside some farewells). In no particular order, here are our Top 10 picks for 2023.

    1. 125 years of reimagining business: We celebrated a BIG milestone with a big party on the 125th anniversary of the day that Cora Jane Flood announced the gift that launched the College of Commerce—now the Haas School of Business. Students, staff, alumni, campus and Haas senior leaders, and founding donor Flood’s family member gathered to honor the school’s trailblazers —and our ongoing impact on business and society
    2. Dean of the Year: Dean Ann Harrison was recognized by the business school publication Poets & Quants, which lauded Harrison for leading a major diversity, equity, inclusion, justice and belonging effort; broadening the profile of the Haas faculty, school board, and student body; and helping fundraise a total of $227 million for the school, among other successes. She also made the cover of our fall issue of Berkeley Haas Magazine. Harrison returns from sabbatical in early January.
      Photo of Dean Ann Harrison on campus.
      Harrison gracing the pages of Berkeley Haas Magazine. Photo: Brittany Hosea-Small.

       

       

    3. More major milestones: Berkeley Executive Education (BEE) celebrated its 15th anniversary and Cleantech to Market (C2M) turned 10. Exec Ed has provided top programs to thousands of individuals in leadership, entrepreneurship, and strategy and finance, as well as customized programs for companies, government, and university partners. Promising climate technologies that addressed everything from water desalination to Earth element extraction to lightening-fast battery charging took center stage at a bigger and better than ever December Cleantech to Market (C2M) Climate Tech Summit.

      large group of masters students on stage at Haas
      Students in the Cleantech to Market program at the 2023 C2M Summit.
    4. Our generous community: The Berkeley Haas Development and Alumni Relations team (DAR) team reported a record three-year period in the school’s fundraising history, raising more than $171 million from alumni, faculty, staff, students, parents, and friends. The funds raised this fiscal year—about $56 million—brought Haas to the finish line of its five-year campaign. 
    5. Student walking in front of Haas sign in front of campus
      Photo: Noah Berger

      5. Undergrad’s big shift: We began to bid farewell to our incredible two-year undergraduate program as the Berkeley Haas Undergraduate Program Office received its first round of applications from prospective first-year students for our inaugural Spieker class. The first class of four-year students will enter in the fall.

      Woman and man talking animatedly.
      Dean Ann Harrison with Ned Spieker, BS 66, who with his wife, Carol, funded the undergraduate program’s transformation.
    6. The rise of the Flex cohort: As part of the evening & weekend MBA program, students in the Flex cohort completed their first year of live remote courses, demonstrating an innovative educational model that will serve a greater range of students. Flex provides what many students say they need most: schedule flexibility in a top program. MBA student group gathered at Haas
    7. New brain power: Eight new ladder and 22 professional faculty members joined Haas in fall, bringing their intellect, passion, and unique perspectives to the school. With the new tenure-track arrivals, the ladder faculty—at 96 members—is now the largest it’s ever been and is closing in on Dean Harrison’s goal of 100. 
      A photo collage of all 8 new professors.
      From top row, left to right: New Berkeley Haas assistant professors Eben Lazarus, Cailin Slattery, Shawn Kim, Antoine Levy, Sam Kapon, Erica Bailey, returning professor Alexandre Mas, and new assistant professor Rachel Gershon.

    8. Making headlines: Our faculty were featured in national media outlets more than 500 times this year, bringing expertise to everything from the rising price of gas, to the Silicon Valley Bank fallout, to tech layoffs, to the future of AI.

      Image: AdobeStock

    9. Growth space: Construction continued on the new Berkeley Haas Entrepreneurship Hub, which will allow entrepreneurs at Haas—and across the university—to meet, brainstorm, and invent new startups. The Hub is expected to be completed in fall 2024.

      new entrepreneurship hub at Haas (rendition)
      A photo illustration of the home of the new hub, a Julia Morgan designed building under renovation. The building was constructed in 1908.
    10. Chart toppers: All of Haas’ degree programs once again performed well in key rankings. U.S. News & World Report ranked the EWMBA program #1 (again) and the undergraduate program #2; The Financial Times ranked the FTMBA program #7 globally and #4 in the U.S.; and the MFE program was ranked #4 by QuantNet.

Cutting-edge climate tech takes the stage at 2023 C2M Climate Tech Summit

The C2M summit, held at Spieker Forum in Chou Hall on Dec. 1, brought together eight UC Berkeley graduate student teams (including many Berkeley Haas MBA students). All photos: Jim Block

Promising climate technologies that address everything from water desalination to Earth element extraction to lightening-fast battery charging took center stage at the 2023 Cleantech to Market (C2M) Climate Tech Summit.

The summit, held at Spieker Forum in Chou Hall on Dec. 1, brought together eight UC Berkeley graduate student teams who presented their findings from a year’s work on entrepreneurial projects for C2M company founders. Each team spent nearly 1,000 hours working with founders, assessing new technologies, and investigating paths to commercialization. 

Brian Steel, co-director of the C2M program, which is part of the Energy Institute at Haas, called this year’s summit the most successful to date and reflected on C2M’s growth since its 2008 founding. 

“One of the things that’s so energizing for us as faculty is that the students come to us now with such wonderful depth and breadth of knowledge because cleantech has been around for so long. We feel so fortunate that the world has caught up with the sustainability work we have been doing for 15 years.”

One of the things that’s so energizing for us as faculty is that the students come to us now with such wonderful depth and breadth of knowledge because cleantech has been around for so long. — C2M co-director Brian Steel.

A total of $70,000 in MetLife Climate Solution Awards was awarded to three startups, who were supported by three C2M teams. The three teams honored during the summit were:

  • ChemFinity Technologies, which produces high-performing, highly modular porous polymer materials, won $40,000. The team included Chris Burke, MBA 24; Ethan Pezoulas, PhD 26 (chemistry); Kosuke “Taka” Takaishi, MBA 24; Matt Witkin, MBA 24; Mingxin Jia, PhD 24 (mechanical engineering); and Peter Pang, MBA 24. (The team also received the annual Hasler Cleantech to Market Award, given to the audience favorite.)

    Left to right: Kosuke “Taka” Takaishi, MBA 24, explains the catalytic converter recycling process alongside PhD student Ethan Pezoulas and Matt Witkin, MBA 24.


    The students worked with Brooklyn-based ChemFinity co-founders CEO Adam Uliana and CTO Ever Velasquez, both PhD 22 (chemical engineering). Uliana described the membrane filters the company built as “atomic catchers mitts that are designed to capture just one type of molecule and can be used to tackle water desalination or mineral recovery.”

    Witkin, who worked in economic consulting on decarbonization projects before coming to Haas, said that he mentioned Cleantech to Market in his application essay, as “the perfect course where I could help these innovative climate companies find and scale their impact.”

    “It was an honor working alongside Adam from ChemFinity and my C2M classmates as we considered how ChemFinity could apply and grow its impressive separation technology,” Witkin said.

    six haas students wearing suits in front of a large check
    The first-place ChemFinity team: (left to right) Chris Burke, MBA 24, Kosuke “Taka” Takaishi, MBA 24, Mingxin Jia, PhD 24 (mechanical engineering), Peter Pang, MBA 24, Matt Witkin, MBA 24, Ethan Pezoulas, PhD 26 (chemistry).
  • REEgen, which works to reduce the environmental impact of rare Earth element production, which won $20,000. The team included Carlos Vial, MBA 24; Francisco Aguilar Cisneros, MPP 24; Jeffrey Harris, MBA 24; Kelly McGonigle, MBA 24; Orion Cohen, PhD 24 (physical chemistry); and Sho Tatsuno, MBA 24 (MBA Exchange Program, Columbia Business School). The United States now imports more than 80% of its rare earth needs from China, said Alexa Schmitz, CEO of Ithaca, NY-based REEgen. REEgen is creating a new kind of rare Earth element production using bacteria to leach, recover, and purify rare Earth elements domestically.

    six students wearing business suits holding a large check
    Team REEgen: (left to right) Francisco Aguilar, MPP24, Sho Tatsuno, MBA 24, Orion Cohen,  PhD 24, Kelly McGonigle, MBA 24, Jeffrey Harris, MBA 24, and Carlos Vial, MBA 24.
  • Tyfast, a battery technology startup, which won $10,000. The team included Ankita Singh, EWMBA 24; Erik Better, MBA 24; Nicholas Landgraf, EWMBA 24; and Sterling Root, EWMBA 25. Tyfast builds high-performance lithium ion batteries “to make diesel engines obsolete in construction equipment,” said Tyfast CEO GJ la O’, BS 01, (materials science & engineering). San Mateo-based Tyfast uses a raw material that enables a new class of rechargeable battery, promising to deliver 10 times the power and cycle life with energy density exceeding commercial lithium iron phosphate (LFP) technology.
four students wearing business suits holding a large check
Team Tyfast: (left to right) Erik Better, MBA 24, Nick Landgraf, EWMBA 24, Ankita Singh, EWMBA 24, Sterling Root, EWMBA 25.

Steel said he’s grateful to all of those who support the program, in particular the C2M alumni who return to Haas to serve as coaches, mentors, judges, or speakers—or just to enjoy being a part of the audience.

This year’s event kicked off with speaker Ryan Hanley, C2M 10 and MBA 11, the founder and CEO of Equilibrium Energy, a 100-employee climate technology startup. Barbara Burger, MBA 94, energy director, advisor, and innovator, and former president of Chevron Technology Ventures, also joined a fireside chat with Harshita Mira Venkatesh, MBA 11, who participated in C2M in 2020 and is one of the first business fellows at Breakthrough Energy, founded by Bill Gates in 2015.

“It’s always gratifying to have alumni who were on stage last year come back to support this year’s teams,” Steel said. “People who have been coming to the summit for years appreciate that we keep raising the bar: that our students’ presentations keep getting better and better. It’s very rewarding to have that acknowledgement and appreciation.”

Ginny Whitelow, a director at MetLife, worked with the C2M program as a mentor. “These UC Berkeley students have been so amazing to partner with and have given me an added sense of purpose in my work at MetLife that goes beyond my day to day job,” she said. 

Salaries jump to record levels for 2023 FTMBA grads

Salaries for FTMBA grads continued to increase this year.

Setting a record, annual base salaries for the Berkeley Haas Full-time MBA Class of 2023 increased to an average of $162,831. That’s about $10,000 more than last year, with nearly 70% of the class nabbing signing bonuses averaging $36,777 as well. Notably, 39% received stock options or grants, adding significantly to total compensation. 

“We’re thrilled that starting salaries and compensation packages have continued to grow, reinforcing the strong return on investment on a Berkeley Haas MBA,” said Abby Scott, assistant dean of MBA Career Management & Corporate Partnerships.  “These outcomes are a testament to the high caliber of our students. Our alumni and career management team also play an instrumental role in helping them navigate paths to reach their goals.”

View the 2023 employment report.

Of the total class of 294 graduates, roughly 90% received job offers within three months of graduation, and even more secured opportunities within six months of graduation. Similar to previous years, more than half of the students accepted roles in the technology industry and consulting. A few more highlights from the Career Management Group (CMG):

  • Technology remained the largest industry employer, with about 30% of the class taking positions in the sector. Amazon was the top tech employer.
  • Nearly 28% of the class accepted consulting jobs; the largest number of graduates went to McKinsey (26 hires), followed by Bain (14 hires), this year’s two top employers overall.
  • Financial services hiring increased from 13.7% to about 14.5% of graduates; health care and biotech jumped from 5.1% to 7.5%. Energy-industry roles among grads jumped to 6.6% of graduates from 2% last year, reflecting the increase in climate tech. 
  • About 22% of graduates embarked on “impact careers,” defined as jobs in sustainability, climate tech, healthcare, edtech, and some areas of finance and real estate.
  • A growing number of students (4.4% of the class) accepted positions in real estate, typically in development and investment roles.

McKinsey, Bain top employers

This year’s top employers for Haas—companies that hired three or more graduates—included Amazon, Boston Consulting Group, McKinsey & Company, Deloitte, Bain & Company, EY Parthenon, PayPal, Apple, Evercore, Microsoft, TikTok, and Tesla.

Matt Solowan, MBA 23, is now a consultant at Bain & Co., after interning there while at Haas, finding the people at Bain similar to the people at Haas: “very down to earth, very kind, very warm, very supportive.”

Portrait of MBA grad Matt Solowan
Matt Solowan, MBA 23,  is a consultant at Bain.

While at Haas, Solowan said they worked closely with Julia Rosof, a career coach in the Career Management Group, to prepare for early recruiting opportunities scheduled during ROMBA, the annual LGBTQ+ MBA conference. “After that, I really leaned on the second-year peer advisors who provided me with on-the-job insights and helped to improve my casing and behavioral interview skill,” Solowan said.

In addition to consulting, the tech sector remained a top area of interest for FTMBA graduates, “so we were particularly pleased to see so many land roles this year, given all the churn in the field,” Scott said. 

Highlighting the power of the alumni network, Henry Gordon, MBA 23, landed a position as strategy and planning manager at drone startup Skydio, after chatting with classmate Harrison Zhu, MBA 23. Zhu, a product manager at Skydio, had interned there while at Haas. “I knew he really liked the company and when I was looking for roles this one popped up in my LinkedIn,” Gordon said. “I texted Harrison to ask about it, and three weeks later, I had a job.” 

man wearing a collared shirt in front of a tree
Henry Gordon, MBA 23, is a strategy and planning manager at Skydio.

Since joining Skydio, Gordon said he’s helped guide the company’s strategy as it pivoted from its consumer drone business to the enterprise market. “I was attracted to Skydio because of the enormity of the problems that they are trying to solve”—by providing drones to utilities, fire departments, and other industry customers. “About 30% of my job now is familiar, and the other 70% is totally new.”

Grads land in multiple regions

Lecturer Abigail Franklin, managing director of a program for careers in real estate who works with the Fisher Center for Real Estate & Urban Economics, said alumni working in real estate are particularly critical to her students’ success in finding roles. “Our 2023 graduates did so well in many geographic locations with the best compensation that I’ve seen in my 12 years here,” Franklin said. “It’s really a testament to the real estate alumni we have.”

One example, she noted, are the Haas alumni at privately owned real estate firm Hines, which hired two 2023 Haas MBA graduates this year—one in Chicago and another in Seattle, she said.

A number of 2023 graduates held out until the fall for the right opportunity, based on their specific career criteria—and the Career Management Group continues to support graduates until they find the right role, often reconnecting during future job transitions.

Before coming to Haas, Megan Nelson, MBA 23, worked for Uber in Australia. When she started in 2015, she was one of 20 employees in Sydney, a number that swelled to 400 people by the time she left as senior regional operations manager in 2021.

photo of a woman with long blonde hair
Megan Nelson, MBA 23, is chief of staff at JOLT.

Nelson decided to take a few months off after graduating from Haas before beginning her search for strategy and operations roles last August. With a goal to move back to Australia and work at a startup or scale-up, she jumped to apply for a position as chief of staff at Sydney-based startup JOLT, a company working to support the transition to electric by providing free, fast, and clean EV charging. 

Her new role at JOLT aligns with her love for working for a company at an early stage. “I am focused on a bit of everything, including expanding our CEO’s capacity so he can steer the ship. I’m supporting both Australia and our international markets, and helping build the internal operating structures to enable our teams to sprint.”

Classes at Haas provided a professional lens that Nelson said she applies in the workplace. 

“Haas built my confidence,” she said. “I realized that my background was really valuable. Hearing the perspectives of my peers in the classroom, the courtyard, and over drinks—the people were the best part of Haas. It’s having those rich experiences and interactions, and being able to share my own…it’s these types of learnings that have helped me the most.”

Dean’s Speaker Series: Author Michael Lewis on Sam Bankman-Fried’s unusual org chart and ‘Going Infinite’

It should have been a red flag that FTX’s organizational chart was created behind Sam Bankman-Fried’s back by his personal psychiatrist. Or that Bankman-Fried didn’t even want an org chart in the first place. 

Those were among the anecdotes that financial journalist Michael Lewis shared from his new book in his Dean’s Speaker Series talk, co-sponsored by the Berkeley Center for Workplace Culture and Innovation, with Acting Dean Jennifer Chatman. 

Lewis’ new book, Going Infinite: The Rise and Fall of a New Tycoon, was published Oct. 3, one month before Bankman-Fried was convicted on seven counts of fraud and conspiracy.  

Lewis is one of the most acclaimed authors in the investigative business world, with his nonfiction books having earned two Los Angeles Times Book Prizes and countless No. 1 spots on The New York Times Best Seller list throughout his career. But before he was known for acclaimed investigative works such as Moneyball, The Big Short, and The Blind Side, Lewis was once a businessman himself. 

Inspired to write his first book, Liar’s Poker, after starting his career on Wall Street as a bond salesman at Salomon Brothers, Lewis has continued to cover financial crises and behavioral finance, including in positions at The Spectator, The New York Times Magazine, Bloomberg, Vanity Fair, and more. 

Yet, when Lewis first met with Bankman-Fried in the process of writing Going Infinite, he wasn’t sure what to make of the situation. “It can often take me a year to figure out if there’s a book in something,” he said. 

It was after spending more time with Bankman-Fried that Lewis realized there was a story to be told. Bankman-Fried considered himself to be an “effective altruist,” Lewis said, and aimed to become the “the most important person” in this cult-like movement. Originating around the same time as BitCoin, effective altruism emphasizes one’s duty to serve others and “earning to give.” The problem with this utilitarian-like movement that “aims for good,” according to Lewis, is that it strips out human sympathy and justifies incivility toward colleagues. 

As a result of expecting everyone to “manage themselves,” Lewis explained, Bankman-Fried became more of a “figure” than a leader. In fact, despite having 140 venture capitalists investing, FTX neither had a CFO nor a board of directors. 

“The reason that he was able to just run through the world without having the ordinary checks imposed upon him is that the thing was actually so successful,” Lewis said. “The venture capitalists looked at it and said, ‘Alright, this is different. And yes, something bad might happen, but the bad thing happening is not nearly as bad as us missing out on the next Google.’” 

It was in this context that FTX came crashing down. As a reaction to the financial crisis, the cryptocurrency movement aimed to organize a financial system without the intermediaries and regulators of traditional financial institutions. Coupled with Bankman-Fried’s distrust in org charts—believing they created issues of status—FTX lacked any sort of oversight, instead thriving off of its monetary success with a peak valuation of $32 billion. 

According to Lewis, one of the main takeaways from the story is that “you can’t have financial markets without regulators.” Ultimately, Lewis said he hopes that those who read the book, if anything, take away pleasure from the incredible story of what he describes as a “comedy with a tragic ending.” 

Watch the full Dean’s Speaker’s Series talk.

Read the full transcript:

Professor Jennifer Chatman: Welcome to the Dean’s Speaker Series.  Yay. Go Bears. This is an event that’s actually co-sponsored by the center that I co-direct with my colleague, Sameer Srivastava, the Center for Workplace Culture and Innovation. And I’m Jenny Chatman. I am the acting dean at the Haas School of Business, and I am absolutely thrilled to welcome today Michael Lewis, the renowned author. We know him well. He almost needs no introduction. This morning I was thinking about my favorite book of yours, “Flash Boys.” Is that a weird choice?

It’s a weird choice. I remember I bought it, I was coming back from a large eastern school, and at Logan Airport, I picked it up, and I had all this work to do on the plane, and instead, I opened the cover, and I read it from coast to coast and did zero of my work; so it was, as usual, a gripping book. So Michael’s style, as you know, is to use real-life characters to kind of open up a world of mystery and intrigue. His books are stranger than fiction, and they are so gripping that many of them have been made into Hollywood films, including, pick your favorites, “The Blind Side,” “Moneyball,” which I use in my classes, and “The Big Short.” So Michael, thank you so much for spending some time with us and visiting us here at Haas. It’s great to have you.

Michael Lewis: I’m surprised you didn’t explain how far back we go. I mean, our kids were in school together starting, what was it, preschool? Or was it kindergarten?

Chatman: Well, so we were actually, if truth be told, we were the host parents, and actually, my husband Russell and I, we were host parents to your family coming into the school that our kids went to in kindergarten. And I had no idea who Tabitha was or Michael Lewis. Coincidentally, I had the book “Liar’s Poker” on my nightstand, and they came over for dinner, and I’m asking like, what do you do for a living? And he’s like, “Oh, I write books.” I’m like, “Oh, have you written anything I would know?” “Yeah, “Liar’s Poker,” “Moneyball.” And I’m like, “Oh, you’re that guy.” And I didn’t bring my book down because for some reason my Amazon order came back, sorry, it was Amazon. It came back as the easy-read version. And I’m like, look like I’m 900 years old with this easy read. It was a mistake. But, so we do go way back. And I think you and Russell have cooked pancakes together in—

Lewis: Many times.

Chatman: Various camping sites. So let me just offer some logistics here. We have cards on your seats. If questions occur to you, please pass them to the side. I think, Audrey, if you want to raise your hand, and Sarah. They will be picking up those cards and later we will have time to read those. Be sure to write your name and what program you’re in or what kind of member of our Haas community you are so that we can acknowledge you. And then, finally, before we dive in, I just want to thank a few people for putting these events together. Ooh. One is Sarah Bottger, who does a fantastic job in putting our whole dean’s series together. Thank you, Sarah. Carrie Hults and Audrey Jones have been instrumental in putting this together. So thank you guys so much. OK, so let’s talk about “Going Infinite,” and I—

Lewis: We can talk about anything.

Chatman: Yeah, I know—

Lewis: But, yes. This book is—

Chatman: Because I’m obsessed.

Lewis: Yeah.

Chatman: With this book, so, you may notice that it’s like not even really been opened, but that doesn’t mean I haven’t read it. I actually listened to it for the last two weeks. Michael is the narrator of the audiobook, which is unusual. And they keep saying, when they do the credits, they say, “performed by Michael Lewis,” which is so fun. So you’ve been in my ear for my long runs for the last two weeks, and it’s really a fascinating book; and, of course, has coincided with the events of Sam Bankman-Fried’s fate—emerging fate. And so, why don’t we start with that?

Lewis: Sure.

Chatman: I have some other questions.

Lewis: Yep.

Chatman: OK. So, if you’ve read the book and if you’ve gone to business school, you have thought a lot about expected value calculations. And so my first question is, why did Sam let you write a book about him? What do you think his expected value calculation was for that?

Lewis:  So, I think it was complicated. Is everybody, I mean, I don’t know how much background we need to give people. Does everybody know who Sam Bankman-Fried is in here?

You know, it’s funny, I was in Portland this weekend at a literary festival. It was people who read novels and even poetry. And there were 1,200 people in the auditorium. And I thought, and the person started with this a question that just presumed that the audience knew what FTX was and crypto trading. And I said, “Well, just stop a second.”

Chatman: Yeah.

Lewis: “Does anybody here not know who Sam Bankman-Fried is?” And they go, they all go, “No, we all know.” And it’s just amazing.

Chatman Yeah.

Lewis: The reach of this story.

Chatman: And so if they know, these guys definitely know—

Lewis: These people definitely.

Chatman: OK.

Lewis: These people are ready. So, I’ll tell you how I came about. Came about right here in Berkeley. And he came over to my office because a friend, the Brad Katsuyama, the hero of “Flash Boys,” the main character of “Flash Boys,” called me and said, “I’m about to swap shares with FTX.” And I said, “What’s FTX?” He said, “It’s the fastest growing financial business I’ve ever seen, and we’re going to exchange $300 million of shares in IEX.” Our stock trading, stock exchange with this guy. And he says, “My problem is, I don’t know this guy. I mean, I met him, but he’s odd, and I can’t, I don’t, I’m having a hard time getting a kind of read on him, and nobody knows who he is.” Eighteen months ago, he had no money, and now, he’s worth $22 billion, and he’s in Hong Kong. He says, “Could you sit down with him and just give me a view?” And I took him on a walk up til then for two hours, almost killed him. I mean, this whole scandal could have been avoided if I just took him on a three-hour walk. But he, I mean, he shows up, he showed up, but he comes out in his hiking shorts and his T-shirt. I thought, “He wants to go for a hike. He’s never been on one.” You know, he’s always dressed for one and never taken one. And, he, we go on this walk, and by the end of the walk I was already, I already thought character and situation is as good as it gets. He was—the situation was so bizarre. So I, we can get into why I got interested, but why he was interested is a different question. Because at the end of it, I said to him, “I didn’t know there was a book, I didn’t know what there was.” It often takes me, it can take me a year to figure out if there’s a book in something. But I said, “I just want to come, can I just come along and watch?” I don’t know why I said, “I don’t know what’s going to happen to you, but I want to watch, ’cause what’s happened already is incredible.” And he said, “Fine.” Now, he never once explained to me why he said “fine.” He never once asked me what I was doing or why I was interested. He never once asked, when I’d ask a question, “Why do you want to know that?” He never once asked to see—he didn’t see the book until he got it smuggled into him in jail a week after it came out. So he had no idea what I was up to. But I think what he thought, what he would’ve told his colleagues who were saying, a few of whom were saying, “Why are you letting him in?” was we are on a quest to be the legitimate crypto exchange. The big, the holy grail is to be regulated in the United States to get the approval of the SEC or the CFTC to open a crypto futures trading platform, and those people read Michael Lewis’ books. Now, this was, so that’s the official answer. I think the answer is, he read “Moneyball” when he was a little kid. He was a completely isolated nerd among nerds. He was a person who could read “Moneyball” and think, “Oh, there’s a place for me in the world.” And for some months in his childhood, he wanted to be a baseball general manager, and he got obsessed with baseball statistics. I know this not from him; I know this from his parents. And I think that because I reached him when he was a little kid, he felt some odd connection, and so that he was interested for that reason. But then, of course, what happens is that I become a nuisance in his life. I mean, I spent, I don’t know, I commuted to the Bahamas. I was commuting from here to the Bahamas. I spent 60 nights there over the course of, and I insisted on traveling with him around the country here, and so on and so forth. And I think then, what happened was, what happens with all the subjects, they’re three months in, and they realize it’s too late to turn around. Like they, I’ve seen too much and know too much and like I may be a pain in the neck to have around, but we’re too—it’s too late.

Chatman: Yeah.

Lewis: I had a number of subjects give me that look, like, “How did you do this?” Like, “How did you get this far in?” And we can’t just chuck you out now. I remember Billy Bean actually saying that to me, and, but I think, so I think it just got to the point where it had its own momentum and he let—and som I was there. I mean, where it gets particularly odd is last November, exactly a year ago, almost today, when FTX is imploding, the only people, all the employees have fled the Bahamas. And it’s me, his psychiatrist, him and his parents, and one employee with the COO who’d stuck around to kind of investigate him. But, and that was kind of, I was that kind of in, so it was a privileged ring. It was a privileged view of a bizarre story.

Chatman: Yeah. Yeah, I mean, you write about this effective altruism movement that Sam kind of identified with.

Lewis: Yeah.

Chatman: Right?

Lewis: More than identified with. I mean to appreciate the weird, the media sort of flattens the story.

Chatman: Yeah.

Lewis: And the trial certainly flattens the story. Like, I don’t think the phrase effective altruism was uttered in the courtroom. The jury never would’ve learned that all these people they were hearing from were united by a cult-like belief in this thing. And, so they never got them, the motive. But if you want to understand Sam Bankman-Fried, you’ve got to understand the movement.

Chatman: Yeah.

Lewis: And the movement starts basically when Bitcoin is created. Same kind of year period. And it’s a movement that grows out of work that was done. I mean, it grows out of utilitarianism, but papers that were written by an Australian philosopher named Peter Singer, who was at Princeton when I was actually at Princeton.

Chatman: Yeah.

Lewis: And had a mesmerizing effect on students because he was sort of asking young people, “What’s your obligation to the world? And he would, he started, I think the first paper he wrote the story that kind of hovers in the background of the effect of altruism movement. It’s an anecdote that Singer has in this first paper, where he says, “I’m going to put you in a moral quandary. You’re walking by a pond and you see a small child drowning. You’re wearing your brand-new, $300 shoes. Do you hesitate to take off your shoes before you jump into the pond to pull the child out, who’s drowning out of the pond? Of course, you don’t, you just, you go in and you, the shoes are ruined. So why do you hesitate to, instead of buying those shoes, take the $300 and send it to some poor country in Africa where it would save a child’s life?” And he, so he creates, he created a lot of moral discomfort in a lot of young people, but it never led to any action. I can remember hearing about this guy and people kind of coming out of his class thinking, “I’m rethinking my responsibility to like total strangers.” This, these Oxford philosophers in 2009, a particular one named Toby Ord start to write papers where they say, “We’re going to make, we’re going to take action on the back of Peter Singer’s work,” and Ord writes this paper where he says that, he shows that if he just took half his salary, which he said he intended to do, his academic salary over the course of his lifetime.

Chatman: It’s huge, absolutely huge.

Lewis: Huge, giant Oxford salary, right? I mean, look at you. You’re I mean, you put it into clothing. He was putting into, he—

Chatman: But I would actually take my shoes off because, right? You could swim better if you didn’t have your shoes on. So you could kind of do both.

Lewis: Oh that’s very funny. And you’d be so much faster that the time, yeah.

Chatman: Spoken like a Claremont member swim club.

Lewis: Yeah. Right. Right. Yeah. But they make this argument that they make this, they start essentially proselytizing the idea to young people that it’s a combination of your duty to the world, to other people. And also the twist that really gets inside of the heads of the mathy, sciencey kids that they attract, is that: “We are going to be rigorous about the altruism.” We’re going to actually start to measure the effects—

Chatman: Right.

Lewis: Of the various things you might do with this money. And we’re going to measure it in terms of, I mean, they developed some pretty kind of obstruent units of measurement, but quality life years saved or whatever it is. So you can start to do analysis about, you can measure your performance as an altruist. And Sam Bankman-Fried hears one of these philosophers give a talk when he’s a junior at MIT. And he just thinks that’s right. And they’d done it by, this is 2012, but they, what the philosophers had done at that point, was started to make an argument to especially young American college students—college students in the typical was like math or science at MIT or Harvard or Stanford or here. And the argument was: “If you’re thinking about what you’re going to do with your life, and we’re going to be rigorous and analytical about this, stop thinking about the direct good you would do.” Like, don’t think about, oh, I don’t know, going to be a doctor in Africa. Think about earn to give.

Chatman: Right.

Lewis: Think about this idea that you, hey, “You’re appealing to high frequency trading firms. You can make millions of dollars in the course of your career. Go do that to give it away.” And what I remember when I first heard about this, I was at some Wall Street Conference, and someone came up to me and said, “You’ve got to know about this. You know, we’ve hired a couple of kids, and they’re here because they say they want to make money to give it away.” And this was so perplexing to this Wall Street guy. It was like, no one, I, and it was like the first time in the history of Wall Street.

Chatman: Yeah.

Lewis: That people go to Wall Street to give it away. And actually quite seditious in a way, the point where it actually makes the firm that Sam Bankman-Fried goes to work for.

Chatman: Right.

Lewis: And a bunch of other effective altruists go to work for.

Chatman: Right.

Lewis: Uncomfortable.

Chatman: Right.

Lewis: ‘Cause they sort of, the lever they usually have on the employees is not there anymore. They’re doing it for a different kind of purpose. But, the high frequency trading firms who are recruiting people like Sam Bankman-Fried are sort of fishing in the same pond as the effective altruists philosophers. That they’re looking for mathy, sciencey—

Chatman: Yeah.

Lewis:  You know, analytical young people. And so a lot of these people end up doing what Sam does, going to high frequency trading firm, and with it to earn, to give.

Chatman: Yeah.

Lewis: Now, there’s a whole, we don’t probably want to go off on this too much longer, but there’s a whole turn that that movement—the effective altruism movement—takes, which amplifies the ambition of the people in effective altruism, amplifies it beyond, it’s, they stop thinking about, it’s, so, there’s this cult-like quality, the people—

Chatman: Right.

Lewis: Who become effective altruists. But it’s a kind of anti-cult cult because it’s a cult that’s based on reason and argument. And if you, and unlike a lot of cults, if you win the argument, you can change the cult. And at some point someone wins the argument and the, an argument, and the argument is, “OK, you, we’ve been talking about maximizing the number of lives you’re going to save with the money you make, doing whatever you do. But we’ve been talking about saving the lives of people who are here, now.” There is this problem with existential risks to humanity.

Chatman: Right. Right, right.

Lewis: And it takes many forms. There’s all these risks, this climate change and artificial intelligence and some really horrible pandemic. Something that would wipe out the species, asteroid strikes. If you could do anything to, the argument goes, “If you could do anything to reduce the risks of any of one of these things, you will have saved many, many more lives in the future. Then you could by just focusing on the here and now.”

Chatman: Right.

Lewis: And this decouples even further.

Chatman: Right.

Lewis: The actions that people are taking to do good from the recipients of the goodness.

Chatman: Yeah.

Lewis: It sort of completely strips the action of human sympathy.

Chatman: Yeah.

Lewis: And this is perfect for Sam Bankman-Fried, ’cause he has no human sympathy.

Chatman: Yeah, yeah, yeah.

Lewis: And it’s, but you can’t understand why he’s doing what he’s doing, unless you understand he’s completely, this isn’t phony. He’s complete, he eats, sleeps, and breathes this movement. And his ambition is to be the most important person in this movement. But it’s not like he’s just faking it.

Chatman: Well, I mean, in some ways, I wonder if that was a way that he felt invulnerable. Right, because these grandiose means just, ends justified the means. And in a sense, you could justify—

Lewis: Anything. Yep.

Chatman: Almost anything, including buying most of the luxury housing in the Bahamas and being uncivil to your immediate colleagues who are in front of you. If you imagine you have the greater good in mind and you have the, I’ll call it con—

Lewis: It does let you off hooks.

Chatman: I’ll call it confidence for the moment. But it could border on arrogance to be the one who decides what those existential problems are and how you’re going to prioritize them. I mean, that’s a pretty—

Lewis: You know, he reminded me of somewhere in the middle of kind of figuring out what the story was before I’d start writing it. So I didn’t start writing this ‘til January. So I—

Chatman: Wow.

Lewis: I didn’t really, and I didn’t commit to do it until after it all collapsed. But somewhere in the middle of it, I thought, “I’m watching some odd prelude to the dystopic, some odd foreshadowing of the dystopic artificial intelligence story,” where you, one dystopic artificial intelligence story is, you tell artificial intelligence to do something that you think is good, but you don’t tell it how to do it.

Chatman: Yeah.

Lewis: And so there are no guardrails. So you say, “Could you get me a reservation for dinner tomorrow night at Chez Panisse?” And you don’t say anything else, and it goes and finds that all the tables that Chez Panisse tomorrow night are booked and starts murdering the people who have tables.

Chatman: Right. Yeah.

Lewis: To get you a reservation.

Chatman: I’ve done that.

Lewis: This is Sam, but I thought this is Sam Bankman-Fried. This is just like—

Chatman: Right.

Lewis: You told him what to do—

Chatman: Yeah.

Lewis: But you didn’t tell him how to do it.

Chatman: Yeah.

Lewis: And there’s a, there was a whiff of that about him that was—

Chatman: So—

Lewis: Fun to watch.

Chatman: So, let me try this out on you. So, we have four defining leader principles at Haas that we hold one another accountable for. I don’t know if you saw those when you walked in on our building. We etched them in stone to show that we’re quite serious about them. And I tried to kind of analyze Sam using our four defining leader principles.

Lewis: I knew this was going to happen. This is good. I’m glad this is going to happen, but I knew that eventually my book was going to be a business school how not to book.

Chatman: Well, I know I’m not even sure that’s not actually where I’m going.

Lewis: OK. OK. Go ahead, I’ll listen.

Chatman: But—

Lewis: I’ll try to listen. I’ll listen. Alright.

Chatman: And I am using “Moneyball,” I’m not using—

Lewis: OK.

Chatman: “The Big Short” or any of those in my classes. So yeah. So, OK, so let’s try this out. You all keep me honest, ’cause you know about these four defining leader principles. So he was a student always, right? That’s one of ours. He was a puzzle solver and clearly learning over time as he was going through this journey in the cryptocurrency world. He was thinking beyond himself, we could say as an effective altruist. He was questioning the status quo. He was trying to bypass traditional institutions and regulation, which he had no—

Lewis: Completely true.

Chatman: No interest in.

Lewis: Right.

Chatman: But alas, the last one, which is—

Audience: Confidence without attitude.

Lewis: Wait, what is it?

Audience: Confidence without attitude.

Chatman: Confidence without attitude.

Lewis: Oh.

Chatman: So we like to think of ourselves as a contrast. There’s institutions that have confidence with attitude, right? We have confidence without attitude. And we think that that combination is important. And that’s the one I think you could observe Bankman-Fried as falling short on. And I have to admit I do research on narcissistic leaders, and I have to admit that I could see a narrative in which Bankman-Fried is a narcissist. He’s also sort of an unassuming cult leader, right? That he didn’t intend, but we’ll hold that aside. So narcissistic leaders often prioritize their own success over the success of others. They forego collaboration for their own grandiose ideas. Like, I noticed his advisors would give him advice, and he wouldn’t necessarily take it. And sometimes they would engage in even ethically questionable behavior. They believe that pedestrian rules that apply to other people don’t apply to them. And I think his intellect caused him to think he kind of rose above that. So, do you think there’s anything to the idea that Sam Bankman-Fried is a narcissist?

Lewis: You know, yes. But it, there’s something to the idea. It’s, so, let’s a little, here’s a, is a fun exercise that I engaged in, he and I were talking about. He was obsessed with Donald Trump. I used a, he on the list, to the list of existential risks to humanity that he was handed by the Oxford philosophers. He adds Donald Trump because he thinks that if Trump is president, American democracy is at risk. And without democracy, you’re not going to solve all these other problems. They are much less likely to solve all these other problems. And so he was constantly kind of trying to get inside Trump’s camp. Trump’s mind. He’s trying to pay Donald Trump not to run for president.

Chatman: I heard the number was $5 billion.

Lewis: $5 billion is where they were. But you know, when Trump was—

Chatman: For Trump not to run.

Lewis: And I’m almost certain that they were negotiating, I don’t know this, but I’m almost certain with Donald Trump Jr., because Sam’s, one of the senior executives at FTX, was friends with Donald Trump Jr., and I think that was their path into the Trump world. I’m not sure if the numbers ever actually got to Trump, but I, when he’s, when he was telling me about that, my first thought was, “You don’t really think Donald Trump’s going to take your $5 billion and then not run for president.”

Chatman: Yeah.

Lewis: You know what he’s going to do? He’s going to take your $5 billion and run for president. And so, but—

Chatman: Call it a witch hunt.

Lewis: But that, but yes, whatever. But that part, but it was interesting to watch Sam talk about Trump, ’cause he got Trump, and he got Trump because he rhymed with Trump.

Chatman: Yeah.

Lewis: But he was a little different from Trump. So, Sam’s behavior can read from a distance as narcissism, because in the narcissist, he looks like he’s thinking because he’s not thinking about other people. Sam Bankman-Fried is born without the natural complement of human feeling and is completely aware of this fact. He replaces the, I mean the normal mechanisms that you or I use to get moved through the world. A lot of emotion, a lot of intuition, a lot of feeling. He replaces it with a kind of mathematical calculation.

Chatman: Right.

Lewis: Does it very consciously. Because he’s sort of like, it’s almost like being colorblind. He’s lacks empathy. He lacks—he doesn’t feel pleasure. It’s like there’s something he’s born without some equipment. I’d say the difference between, so that reads as like he doesn’t care about you.

Chatman: Yeah.

Lewis: And that feels like a narcissist. You default to, “Oh, he cares just about himself.” But he actually doesn’t spend a lot of time thinking about himself either.

Chatman: Yeah.

Lewis: I think he cares about himself almost as little as he caress about other people. And so, whereas Trump cares about himself constantly, thinks about himself constantly—

Chatman: Right.

Lewis: Sam didn’t spend any time, when you were with him, he wasn’t talking about himself all the time. In fact, almost never.

Chatman: Yeah.

Lewis: He was always out, he was outer-directed. But it could read as narcissism because—

Chatman: Yeah.

Lewis: Because of the consequences for other people were almost the same.

Chatman: Yeah.

Lewis: But the, it was not as, it wasn’t as un-charming as—

Chatman: Yeah.

Lewis: As what you’re imagining.

Chatman: Yeah.

Lewis: Because he was, it was never about, it never seemed to be about him. It always seemed to be about problems or other things.

Chatman: Yeah. Well, and actually, you’re doing some recording. You know, Michael has a podcast called “Against the Rules.” And this season has been about the trial.

Lewis: Well we did, you know what we did is cheat. So “Against the Rules,” the interesting part to me is, there are these scripted, we do scripted seasons, and that’s work and writing and performing all this. This was just the gabfest about the trial.

Chatman: Yeah.

Lewis: That was more run by, sort of my producer, more than me. And I jumped in a few times.

Chatman: Yeah, but one of the—

Lewis: But I was in the—I was at the trial.

Chatman: Right, but one of the things you said was that you noticed how the judge was even becoming more and more interested in Sam Bankman-Fried. He’s a complicated character. And you—

Lewis: There were a couple of moments where I thought the judge was going to toss everybody out just so Sam could explain Bitcoin to him. Because, Sam among, so almost all my, all my characters have certain traits but one of them is for sure, is they’re all good teachers. They’re— you can learn a lot from them.

Chatman: Yeah.

Lewis: And now, in addition, they’re often also in situations that teach you things inadvertently. They aren’t explicitly teaching you. They’re just kind of, like, the way they move through space is educational. But Sam is both. And when he gets talking, I mean this, that, he’s going to be mesmerizing. And the judge—this is a complicated subject. The judge obviously didn’t know what a computer was and was quite open about it. And I mean, he’s 80 years old, and he does, but he’s smart. And so here he had someone who could actually start to explain in ways he understood—

Chatman: Yeah.

Lewis: What this was and there were just a couple moments where you could, thought you could, see that, “Wow,” the judge thought, “This is interesting. I would like to just learn more here.” And it was a, it was a counterweight to the other thing that was going on pretty clearly in the judge’s head, going all the way back to when Sam was put under house arrest and started to do things that annoyed the judge is that the judge just hated him. Like, just, he was so annoyed by him.

Chatman: Yeah.

Lewis: So you could see the annoyance sort of fade a bit when Sam was allowed to talk at length. And so, he was for, took it to judge just a beat to stop him from doing that. You’re not really supposed to do that in the courtroom.

Chatman: Yeah.

Lewis: Because he was interested.

Chatman: Yeah.

Lewis: Yeah.

Chatman: So, I actually, I want to turn around ’cause I was thinking about the comparison between Bankman-Fried and Trump, but from the other side, which is what we look for in our leaders. And why Trump’s, well, I’ll leave Trump aside, but—

Lewis: Yes, leave Trump aside.

Chatman: Yeah, because Bankman-Fried sort of skyrocketed and was best friends with Tom Brady, and people were flocking to him, but his star dropped quickly and definitively. Right, he was convicted within four and a half hours on seven counts. And we don’t see that happening as quickly with Trump, right? It’s a much, much more complicated situation. But what does that tell us about what we look for in people who we want to influence us?

Lewis: That’s an interesting question. Like, what it is, what was it about Sam? Well, so Sam was a, more of a misleader than a leader, that he was not a, he—the leadership was almost accidental. It was, I mean, he, up until the point, he creates Alameda Research here in Berkeley. You know, this whole thing starts in downtown Berkeley with 20 effective altruists, only two, one of whom Sam has any experience trading anything. Like most of them can’t tell you the difference between a stock and a bond. And they’re starting a high frequency trading firm.

Chatman: So I’ll tell you about that rental. Is Mike Riley here? Mike, are you here? So, our executive education director rented the space to them, but he was so worried about what they were doing that he took it all cash upfront, which he had never done before. I just learned that, so.

Lewis: That’s very funny.

Chatman: Yeah.

Lewis: I wish I’d known that.

Chatman: Yeah.

Lewis: So, it’s very funny.

Chatman: You can footnote that in.

Lewis: Yeah. Footnote. But so—

Chatman: No script.

Lewis: So Sam is leading 20-, 24-year-olds who share his effective altruist. It’s a kind of religion. And he’s the only one who’s really traded successfully and can kind of, seems to know what he’s doing at first. But even then, it only takes four weeks before people are running for the exits. That, like this, that he’s got, I mean, he had the advantage of having fellow cult members and being the only one who knew what he was doing supposedly. And it takes a month before half the firm leaves because they’re terrified of him, of what he might do.

Chatman: Yeah.

Lewis: I mean the whole foreshadowing of what happens, no lab, in the, over, with FTX is right in downtown Berkeley where, he seems to know what he is doing then he’s so unbelievably careless with the money. You know, they’ve raised money from effective, $175 million from rich effective altruist, and they seem to have squandered it. And these other people who were, he’s supposed to be leading, start to wonder what the hell he is doing. And he himself has no ability or to connect with people or interest in managing them. His view is basically: You need to be able to manage yourself. And what happens is, in the Sam Bankman-Fried environment, this is a long way of saying, I don’t think Sam actually was exactly a leader.

Chatman: Yeah.

Lewis: He was a figure, it’s different, and in his environment because, look, he built his house on a gold mine. It was true that becoming a high frequency trading firm in crypto in late 2017 was a really good idea. And if you did it well, you made a lot of money. And they did it well enough, so they made, they did end up making a bunch of money. And it was also true that if you created a crypto exchange that people wanted to trade on, that was just a money machine. So there is, he, and it’s kind of accidental that he even does that, that part of it. So he builds his Beverly hillbillies. He builds his houses on an oil field. So there is a mechanism, there’s conditions for success actually building an organization he had no ability to do. And people around him were forever compensating for his—

Chatman: Right.

Lewis: I mean, look, you have the book, right?

Chatman: Yeah.

Lewis: Can you, if you didn’t read the book, it’s funny, you missed something that’s fun. You want to pull the jacket off. If you pull the jacket off—

Chatman: You mean versus your, versus the audiobook.

Lewis: Versus the audiobook, ’cause you don’t see this, pull the jacket off the hardback. So, and show—

Chatman: Oh, there’s the org chart.

Lewis: There’s the org, so—

Chatman: I was looking all over for that.

Lewis: So this is the world, this is the world that Sam Bankman-Fried creates.

Chatman: OK, this we would not teach in our classes.

Lewis: No, this, but this is so when the whole, so to backtrack this is an anecdote, but it’s an anecdote that there are 40 versions of this anecdote in Sam Bankman-Fried land. When the firm collapses and the bankruptcy people move in, one of the things they say is, “Oh my God, there’s not even a list of employees. There’s no org chart. We don’t know who’s here or who did what.” And it doesn’t exist. And the prosecutors even said, they’re like, “We can’t figure out how this place,” they’re trying to figure out how this place worked. And Sam, so Sam had this principled objection to job titles and organization charts.

Chatman: Yeah.

Lewis: He thought that job titles became excuses not to do whatever your job title was, as opposed to fix a problem. And he thought that org charts created status problems between people. And so he just, he forbid there being an organization chart. However, people in organizations need to know where they are. They need to know who reports to them. They need to know who they report to. They need to know where this, the level of seniority, all that stuff makes people, not having that makes people uncomfortable, especially makes Chinese people uncomfortable. And half the employees were Chinese, or a whole bunch of ’em were. I mean they’re like, in the Chinese companies, the org charts are a really important thing. He, so Sam, as a result of not having any of this organization and not managing anybody, not conventionally leading anybody, Sam has all these psychological emotional issues in his company. Like, everybody’s kind of unhappy.

Chatman: Yeah.

Lewis: And so, to solve them, he solves the problem in a very Sam Bankman-Fried way. He moves his personal psychiatrist, his shrink from here to the Bahamas to be the shrink to everybody. And so sort of like George, his name is George. You deal with all these problems that are caused because of the way I run my company. George, who in the Bay Area had become shrink to the effective altruists. So he was the world’s authority on the inner life of effective altruists. George moved to the Bahamas, and within about six weeks, 100 employees of FTX are on his couch.

Chatman: Yeah.

Lewis: Like, that many people, all wanting to share their problems and the problems all kind of went back to like, there’s no—

Chatman: And he drew the chart, right?

Lewis: So George in therapy starts to ask people where they are.

Chatman: Right, where they are. And what you can see here is that there’s just one box at the top, one box. And all the other boxes are below that one box, which is Sam Bankman-Fried.

Lewis: And he’s got 24 direct reports, none of whom he talks to. And he’s got a CTO who’s over here, Gary Wang, who has no one underneath him because Gary doesn’t speak. And it’s like, and George is figuring out like a psychiatrist, trying to think about t. is thing. And George does this completely in secret because he’s worried Sam’s going to be angry if he finds out that he’s created an organization chart. So before George fled, he’s now hiding in the jungles of Vietnam, I think. But before he fled, he gave this to me on a thumb drive, and my publisher said, let’s stick it on the inside of the jacket cover.

Chatman: Oh my God, that’s so funny.

Lewis: But that’s like, the best picture of the organization. And it’s a little warped because it was done by the shrink based on therapy sessions. But it was, this is like, I don’t know, I what do you do in a business school with this story? You like, hand it to somebody or say read it and never do any of this.

Chatman: Yes, that’s what you do.

Lewis: It’s kind of like—

Chatman: Yeah.

Lewis: I think it is the way you think about it.

Chatman: There are lessons. I mean, I have so many more questions, but I want to get to some of the audience’s questions. So let me finish with this question, which is sort of unresolvable. But you know, on the one hand, we’re a school that embraces entrepreneurship and pushing the boundaries and questioning the status quo and doing what hasn’t been done before. And there’s a way in which you want the Sam Bankman-Frieds of the world to succeed and to push new frontiers and try new things. And the promise of blockchain—there’s something idealistic there. On the other hand, there was essentially zero regulation, which seems to be, at least in part, responsible for all of the negative things that ensued. And so, what have you learned about that balance, right? Should the investors have been much more wary? Is it their own fault that they invested in this operation? Should the government regulators have been on top of it sooner? Should we have clamped down on Sam Bankman-Fried and FTX sooner? I mean, where does that happen in the world of evolution and progress?

Lewis: Well, crypto, I mean, all crypto is created in an opposition to regulation.

Chatman: Right.

Lewis: It’s created an opposition to institutions, to governments, to banks. It’s a reaction to the financial crisis, right, in the beginning. So, it was explicitly anti-regulatory. It had this libertarian streak, and it was in theory, a different way to organize a financial system without all these trusted intermediaries and without the need for regulators, right? But then, what it did very oddly and tellingly, is it recreated the financial system.

Chatman: Yeah.

Lewis: The traditional financial system inside of crypto but without the regulators.

Chatman: Yeah.

Lewis: And so what has resulted is scandal after scandal after scandal. And presumably a lot of things, bad things going on that nobody’s caught because there’s nobody there watching and policing.

Chatman: Well, and it looks kind of like, when you boil it down, it looks like old-fashioned fraud, like commingling funds and investing with your clients.

Lewis: What’s amazing, I mean, this story is so amazing. I regard, I didn’t know quite what to do with the structure of the story because, so Fitzgerald once said, “What Americans really want is a tragedy with a happy ending.” What this was was a comedy with a tragic ending.

Chatman: Yeah.

Lewis: It’s like the opposite of what, the whole thing felt so comic until it, until what happened, you know—

Chatman: Right.

Lewis:  The last year, but, when they start they start, it doesn’t even, I don’t think it even occurs to them that the fact that there’s no distinction between Alameda Research and FTX is that big a deal. They’re an Asian Crypto Exchange. I don’t think any of the Asian crypto exchange has instituted these kind of controls that you would have—

Chatman: Yeah.

Lewis:  In a U.S. exchange. I mean, just the idea that the exchange custodies the traders’ funds, that’s something that’s alien to the U.S. markets, right? You just wouldn’t be allowed here. It’s much less, you can own the biggest trader on the exchange at the same time that you’re custoding the funds on the exchange. All the whole structure’s nuts. And nobody even really questions it. What, if you want to, I’m trying to think of the best way to answer your actual question though is like, “What does it tell us about the, like what should have happened?” And probably what should have happened is the minute serious grownups started to turn up on the scene, venture capitalists, for example, 140 venture capitalists invested in this business, valued it at the end at $40 billion without insisting on there being a board of directors.

Chatman: Yeah.

Lewis: There was no board of directors.

Chatman: I mean, there was no CFO, right?

Lewis: There was no CFO.

Chatman: No CFO, OK.

Lewis: In fact, there’s a line in the book I asked, I was asking Sam about all this right away. And it was, he was, it was comic. He says, what, he says, “They tell me I need a CFO.” I asked him, “What does a CFO do?” And they said, “The CFO keeps track of the money.” He says, “I keep track of the money. Why do I need a CFO?” Well, we saw how well he kept track of the money.

Chatman: Yeah. Right.

Lewis: Right. And, but, no, but the reason that he was able to just run through the world without having the ordinary checks imposed upon him, is that the thing was so actually successful.

Chatman: Yes.

Lewis: That the revenues generated—

Chatman: That’s right.

Lewis: By the exchange were so crazy that the venture capitalist looked at it and said, “Alright, this is different,” but if, and yes, “something bad might happen, but the bad thing happening is not nearly as bad as us missing out on the next Google.”

Chatman: Yeah.

Lewis: And I had, I don’t know how many venture capitalists tell me this might be the next trillion-dollar company.

Chatman: Yeah.

Lewis: And Sam may be the first trillionaire.

Chatman: Yeah.

Lewis: That they thought it had that kind of scope. And so, it tells you about like how loosely the, our conventional world holds its principles.

Chatman: Right.

Lewis: That if when they’re faced with an incredible—

Chatman: Right.

Lewis: Temptation—

Chatman: Yep.

Lewis: That you drop the principles. And it wasn’t just the institutions that did this. Everybody, the celebrities did this, politicians did this.

Chatman: Yeah.

Lewis: There was a kind of a fear of missing out on a thing. And the thing was fun, and it was going, moving fast. And Sam was kind of delightful to be with every time—

Chatman: Yeah.

Lewis: He walked into a room. Everybody wanted to listen to no one but him. And—

Chatman: And the numbers were enormous. I mean, so they were thinking the money in Alameda was like—

Lewis: They were thinking—

Chatman: Rounding error.

Lewis: Yes.

Chatman: $8 billion. What? That’s nothing. We could cover that in 10 minutes.

Lewis: So, but the, so the, it does, I guess one of the takeaways, it’s one of the boring takeaways, but it is a takeaway from the story is, “Yeah, you can’t have financial markets without regulators.” I mean, they’re not going to work. They, you’re going to have violation of trust after violation of trust.

Chatman: Yeah.

Lewis: And funny, if you look at our financial market, at the traditional financial markets, we’ve done a pretty good job at minimizing the amount you have to actually trust somebody, right. Because the regulators—

Chatman: Right.

Lewis: They’re watching them for you, because you’ve got things like deposit insurance and crypto, oddly born out of complete mistrust of—

Chatman: Right.

Lewis: Of the existing financial system. Born out of a kind of mistrust of other people, created to sort of end the need for trust, creates these institutions that require us to trust them even more.

Chatman: Yeah.

Lewis: It’s a strange event.

Chatman: It’s ironic.

Lewis: It is ironic.

Chatman: Yeah.

Lewis: Anyway, I, the, if I wanted to convey to an audience, like, who hadn’t read the book, the main thing I wanted them to take away from the book, is just pleasure. The story is so incredible.

Chatman: Yeah.

Lewis: I don’t know what lessons there are in here.

Chatman: Yeah.

Lewis: But it’s just like an amazing story.

Chatman: Yeah. Well as a psychologist, he’s such an interesting character.

Lewis: Yeah.

Chatman: Yeah. Is this Austin here? Austin.

Audience 1: He’s over here.

Chatman: Oh, Austin. Hey. Austin’s going to ask some questions from the audience.

Lewis: Are these curated?

Audience 1: Maybe.

Chatman: By Austin in real time.

Lewis: Right. Good.

Chatman: He looks trustworthy.

Austin: I would not say the same. So, we’ll change that just a little bit. We’ll switch over to “Moneyball” for a bit. You mentioned that Sam was part of the “Moneyball” generation—also included in that is me. I was 8 when the book came out and then ended up spending some time working for the Milwaukee Brewers. And one of the things I noticed, and granted I had never worked in a front office before, but compared to what you described in Oakland to what I experienced in Milwaukee, the front office was very white. It was very male. Didn’t have, instead of it being all ex-players, it was a mix of some ex-players and people like me, who had maybe played in college, but were, there’s totally to do analytics. Over the past few years, and from some of my buddies who’ve worked at the Dodgers, we’ve seen this change into becoming almost the Ivy League Boys; Club, instead of it being the Baseball Boys’ Club, it’s the Ivy League Boys’ Club. That’s still problematic in my view. So, what would you recommend baseball do to try and fix it to be more representative of maybe just the fan base of the game?

Lewis: Yeah, I don’t know. I don’t know if it has to be representative of the fan base of the game to be good management, but you’re touching on something that’s really interesting to me. So, it is true. in 2002, when you walked into the front office, it was, the dominant culture was the scouting culture. You, it were kind of people who had played in the Minor Leagues, very seldom actually former Major League players, but people who were college players, people who hadn’t valued their formal education very highly. And the, and it was an old boys’ club as opposed, and it’s become a new boys’ club. The problem with the old boys’ club was that it was impervious to like new ideas. It didn’t have any that, the amazing thing about the “Moneyball” story was that it was available to be written in 2002 when most of the ideas that were going to transform the game had been cooked up in 1977. And that for 20-something years, or little, until the Oakland A’s started to grab these ideas that nobody thought they were worth paying attention to, ’cause they were hatched by people who were outsiders. So there was, the revolution happens outside the game. The inside is arrogant, smug, all kind of the same, monoculturey, and so doesn’t assimilate these new ideas. What’s happened? It’s like, “Yeah, the management’s now smarter. It’s, it is better managed.” It is true that relying on better data and better analytics gets you a better outcome than just relying on the intuition of the old boys. But you do lose something, and you, there is sometimes something to that intuition and you lose, you do create an environment where everybody’s kind of thinking the same way all over again. It’s just a, it’s a different way, but they’re all thinking the same way. And I think introducing, I mean the important thing is a kind of intellectual diversity, and you can get that a lot of different ways. But opening what has become the, I mean the nerds are now running the show in baseball, opening that room to some people who aren’t, it seems really important to me. And I think even Oakland A’s would tell you that right now. Yeah.

Austin: Perfect. So then one final question, we’ll build off of effective altruism. It’s something we’ve kind of seen before throughout the, I guess the Silicon Valley mindset. We’ve seen with Elizabeth Holmes thinking that Theranos was going to be this revolution that would change health care forever. Andreessen Horowitz uses the word techno optimistic manifesto. Does this just seem like a rationalization of Silicon Valley save the world, and maybe Sam kind of fell into that? Or do you see Sam as a different character who fell into something completely unique?

Lewis: So I don’t think Sam is principally a Silicon Valley character. I think of him as a creation of Wall Street. That if Sam, virtually any other period of human history, Sam would either have been someone’s food or would’ve been like a high school physics teacher or a math teacher or maybe a college professor. The—

Chatman: Hey now, come on.

Austin: Continue.

Chatman: It’s OK.

Lewis: Not a good college professor.

Chatman: Yeah, no, he’s super smart.

Lewis: No actually, I think he’d been a great college professor.

Chatman: We currency—

Lewis: No, I think he’d been—

Chatman:  Intelligence.

Lewis: I think, think he was born, his parents were professors, kind of assumed he was going to be a professor. He ends up disdaining professors like he just disdains every other grown-up and everything that’s ever been thought or said, including Shakespeare. I love that Sam Bankman-Fried, when he is in high school, argues that Shakespeare sucks. And you can—

Chatman: Yeah.

Lewis: You can prove this statistically.

Chatman: Yeah.

Lewis: It’s just like, it’s just a different way of thinking about the world. So, why isn’t Sam Bankman-Fried just in that role as opposed, and it’s because Wall Street evolved to, got to a point where, has gotten to a place where the things that Sam Bankman-Fried’s mind can do, are highly valued on Wall Street. And there are these institutions, especially the high frequency trading firms, that have become machines for turning math people into money people. And he, I don’t think Sam Bankman-Fried, would’ve ever have landed in Silicon Valley and started a company. People would’ve left after two days. You know, that I didn’t have the company, he didn’t really have that management creator sort of gene. What he had was the trader in him. And so, yeah, he interacted with Silicon Valley ’cause he was raising venture capital. He didn’t think much of it, but that doesn’t, there’s a long list of things he didn’t think much of. So, but I don’t think, I don’t think that’s where, that’s he doesn’t really, he’s not a creature of the place even though he is born out here. He’s a creature of modern Wall Street, and it’s modern Wall Street that has a bit to answer for in him. Not really Silicon Valley.

Chatman: Yeah. Great. Well with that, before you leave, I wanted to, so Michael is actually a big swimmer, and he’s actually pretty fast.

Lewis: So that’s, neither one of those things is true.

Chatman: You know for, he’s pretty—I see him in the pool—he’s pretty fast. I was going to say for people of our generation—

Lewis: So—

Chatman: And so we’re a public university, and we don’t have a lot of cash, but we do have a ton of talent. So, I brought a great crew here to thank you for visiting with us today. We have three of our world class swimmers. We have, and you guys come up as I call you, we have Bjorn Seeliger. Bjorn is a Haas undergrad student. He’s on the Cal Men’s Swim Team, who, they’re two-time defending national champions. So, and I’m just going to go through this for a second. So Bjorn swims—

Lewis: Hey, good to meet you.

Chatman: Michael, you need to listen to this.

Lewis: I’m listening.

Chatman: Because this is going to humble you. So Bjorn swims, Bjorn is a sprinter. He swims free, fly, back, and was an Olympian for team Sweden in the 2020 game. And I just wanted to give you some time. So his, the fastest, and I may not be right about this, but the fastest 50-meter free. And actually Bjorn helped me with backstroke, not, it’s didn’t really help that much but, his fastest 50-meter free is 18 seconds and 71 10th. Is that right? Is 18.71, is that your fastest?

Seeliger: 18.21.

Chatman: 18.20, Oh, sorry. So much lower. Right. OK. So think about your time compared to that. Then we have Tyler Kopp, who is also a Haas undergrad, also on the men’s team, also part of our NCAA Championship Team. He was a finisher at the U.S. Olympic trials. He’s a long distance swimmer. That’s more of my world. So he swam a 16.50. That’s if you have a, like a regular sized pool. My pool, 75 laps. He swam that in 14 minutes and 58 seconds. OK. Seventy-five laps. Right. Takes me up to three days or so to do that. And finally, we have Will Roberts who transferred to swim at Cal. You were at Michigan before, right? Is that right? So Will transferred for graduate school. He was part of the NCAA team as well. He is also a distance swimmer and I saw a 500-free time, which is 20 laps of 4 minutes, 17 seconds, 20 laps. He’s now working in San Francisco and helps athletes start businesses. So, the three swimmers have some gifts for you to thank you for coming to visit.

Lewis: Thank you, so—

Seeliger:  I liked to mention something. So you’ve mentioned that you almost killed, you almost killed Sam Friedman on a two-hour walk. So, we want to make sure you don’t die on a two-hour swim. And we got a little bit of things for you here today. So thank you for coming with you talking.

Lewis: Thank you. Thank you.

Chatman:  Thank you, Michael.

Lewis: Thank you.

Chatman: It’s so great to see you. Thanks for coming. Bye, great to meet you. Hey, thanks everybody. We’ll see you next semester.

Berkeley Haas launches O’Donnell Center for Behavioral Economics to lead the next generation of research

Established with a philanthropic investment of almost $17 million from Robert G. and Sue Douthit O’Donnell, the new center will bring together the best minds from a wide range of fields.

An aerial view of the Haas School of Business campus showing a wide staircase leading up to an arched entry between two buildings.

Berkeley, Calif.—Ever since Nobel laureates George Akerlof and Daniel Kahneman created a 1987 UC Berkeley course that broke the rigid barrier between psychology and economics, the university has led the way in bringing the once-disparate disciplines together into the field of behavioral economics.

More than 35 years later, the Haas School of Business is launching the Robert G. and Sue Douthit O’Donnell Center for Behavioral Economics to advance the field toward its next stage of evolution.

Portrait of a woman with shoulder-length dark blond hair and purple blazer.
Professor Ulrike Malmendier (Photo: Copyright Noah Berger)

“We went from neoclassical economics that considered humans to be perfectly rational, to behavioral economics that brought in social psychology,” says Ulrike Malmendier, the Cora Jane Flood Professor of Finance, who will serve as the center’s faculty director. “Now we want to move the needle further, bringing together the best minds for rigorous research on human behavior from the sciences more broadly—including neuroscience, cognitive science, biology, medicine, epidemiology, and genetics.”

Funded with a philanthropic investment of almost $17 million by Bob O’Donnell, BS 65, MBA 66, and his wife, Sue O’Donnell, the center aims to become the preeminent hub for the maturing fields of behavioral economics and finance, bringing together leading researchers from a wide range of disciplines for collaboration, conferences, and bootcamps, as well as funding promising PhD students and postdoctoral scholars. The center will also host the prestigious Behavioral Economics Annual Meeting (BEAM), co-founded by Malmendier, every three years.

A nexus for cross-disciplinary research

O’Donnell says he was inspired by the pioneering work of Kahneman, Akerlof, Malmendier, and others who gave Berkeley its leading position in behavioral economics. “UC Berkeley is dedicated to integrating business education with other disciplines on campus, which is essential in this area,” he says. “It should have a center devoted to continuing this work.”

The center, says Berkeley Haas Dean Ann Harrison, will create a far-reaching impact across UC Berkeley, a research powerhouse with many areas of strength. “The goal is to cut through barriers that traditionally hinder research across disciplines, such as different ways of presenting data and publishing results, and bring people together in a different way than what’s usually done,” she says. “The O’Donnell Center will be the nexus of a new form of cross-disciplinary collaboration that pushes behavioral economics toward the future.”

Beyond ‘homo economicus’

Traditional economics was based on the assumption that human beings are perfectly rational, profit-maximizing “robots”—sometimes referred to as “homo economicus” or “economic man,” Malmendier says. Behavioral economics brought in insights from psychology and human behavior to explore the predictable foibles in our thinking, such as decision-making biases, fears of losing out, lack of self-control, and overconfidence. A classic example is Kahneman’s pioneering work with Amos Tversky on loss aversion, which showed that people are willing to take greater risks to avoid a loss than to secure a gain.

These ideas have been integrated into economics and finance departments around the world and have deeply influenced public policy and practice. For example, after Nobel Laureate Richard Thaler and Cass Sunstein developed the concept of the “nudge”—interventions that spur people to act in their own self-interest, such as enrolling in a retirement savings plan—hundreds of “nudge units” were established in governmental and private-sector organizations around the world.

Many other Berkeley Haas researchers helped pioneer this intellectual revolution, including finance professor Terrance Odean, BA 90, MS 92, PhD 97, the Rudd Family Foundation Chair, who was convinced by Kahneman to pursue a doctorate in finance rather than psychology and whose work reveals investors’ flawed decision making.

O’Donnell, the center’s founding donor, says he often applied insights from behavioral economics during his career as a portfolio manager for a large mutual fund group. “It represents a further step in the evolution of financial theory comparable to the development of the efficient market hypothesis,” he says. “When combined with existing financial theory, I believe that its insights enhanced results for my clients.”

Yet, during the 17 years he taught an investment class in the Berkeley Haas MBA program, O’Donnell says he sometimes encountered skepticism when he introduced ideas from the field. “Indeed, one student asked, ‘Isn’t all this kind of woo-woo?’”, he says. “Several years later, that student told me how perspectives from behavioral economics had helped her career in finance.”

Experience effects

Now, after more than three decades of foundational work, it’s time to move behavioral economics past its adolescence, Malmendier says. “Behavioral economics made progress by including psychology, but we didn’t include all the other sciences.”

Malmendier, whose groundbreaking work on “experience effects” earned her a Fischer Black Prize in 2013 for the top economist under the age of 40 and a Guggenheim Fellowship in 2017, has focused on complex economic behaviors. She has studied how stressful experiences with recessions, layoffs, inflation, housing bubbles, and political repression make consumer and investor behavior more cautious and risk averse for years afterward, and she has explored how stress can affect our health, careers, education, and other aspects of life in dramatic ways.

To further that work, Malmendier aims to bring a wider range of researchers together and break down silos. For example, collaborating with neuroscientists, neuropsychiatrists, biologists, medical researchers, and epidemiologists who have studied stress and trauma could more precisely demonstrate how past experiences shape our actions today and across generations. Stress impacts the big variables that economists study, such as completing an education, choosing an occupation, and deciding to have a family, she says.

“As we walk through life, our outlook on the world changes, especially if we suffer trauma,” she says. “Neuroscience says our brain gets rewired. There may be a long-term impact of stress on our longevity, on our aging, and on our health.”

Questioning the status quo

Malmendier, who now serves on the German Council of Economic Experts, is passionate about the potential of behavioral economics to help leaders create better solutions to the most complex and urgent problems of our time—from fighting climate change to battling inflation and avoiding financial crises. “If leaders keep in mind people’s emotions, their personal histories, and their psychologies, they can engineer ways to make things more predictable and give people more control over events help them live better lives,” she says. “That is our ultimate goal.”

Photo of a man with light skin, short brown hair, and glasses, wearing a navy blue jacket with white collared shirt.
Professor Stefano DellaVigna

Moving the field forward will also involve rigorous research to reexamine what has come before. For instance, a recent paper by center co-founder Stefano DellaVigna, the Daniel E. Koshland Senior Distinguished Professor of Economics and professor of business, with Elizabeth Linos of Harvard, suggests that leaders should get more realistic about nudge policies—and better at incorporating them into practice. Two government nudge units opened their records to allow the researchers to look at all their interventions. By examining 126 randomized controlled trials of nudge policies involving 23 million people in the United States, the researchers found that nudge interventions are on average effective, increasing the desired outcomes by about 8%. However, the effects are less than those in published academic papers—about one-fifth the size. The authors attribute the difference to publication bias, or the tendency toward publishing only large, surprising results.

“Our study stresses the importance of research transparency,” DellaVigna says. “This transparent access is quite unique and shows a further innovative impact of behavioral economics, which has led to more evidence gathering within governments.”

In a second paper, DellaVigna and Linos, along with Department of Economics doctoral student Woojin Kim, found that even when nudge policies are found to be effective, public agencies implement them only about a quarter of the time, often due to organizational inertia.

In addition to Malmendier and DellaVigna, the center will include a host of affiliated researchers from Berkeley Haas and Berkeley Economics, as well as from across the university. They include Berkeley Haas professors Ricardo Perez-Truglia, Ned Augenblick, Don Moore, and Gautam Rao, PhD 14—who will join Haas in January from Harvard University—as well as Dmitry Taubinsky of Berkeley Economics and others. The founding gift will establish a permanent endowment to support the center and some of its ongoing activities.

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Media Contact: Laura Counts, [email protected], 510.205.9570

Japan’s top economic minister visits Berkeley Haas to spur innovation, collaboration

Photo of three people on a stage. The man in the center is speaking.
Minister Nishimura Yasutoshi (center) speaks with Acting Dean Jennifer Chatman (right).

Nishimura Yasutoshi, Japan’s Minister of Economy, Trade and Industry (METI) visited UC Berkeley and the Haas School of Business this week to spread the message that Japan is making significant investments to transform its economy through entrepreneurship and innovation.

While Japan may be best known for its big companies like Toyota and Sony, “They began as startups first of all,” said Minister Nishimura, speaking through an interpreter in a conversation with Haas Acting Dean Jennifer Chatman. “Entrepreneurship is really in the DNA of the Japanese people.” 

Invited to campus by the Clausen Center for International Business and Policy as part of events surrounding the Asia-Pacific Economic Cooperation (APEC) Summit in San Francisco, Minister Nishimura’s visit also expanded the collaboration between UC-Berkeley and the Japan External Trade Organization (JETRO). During the event, Caroline Winnett, Executive Director of the Berkeley SkyDeck accelerator, signed a memorandum of understanding with JETRO to further advance entrepreneurship, innovation, and scholarship.  

Minister Nishimura also toured SkyDeck, which to date has hosted about 60 Japanese startups through its JETRO partnership. 

In addition to the SkyDeck collaboration commemorated at Minister Nishimura’s talk, Berkeley Haas has a long tradition of partnering with Japanese companies and universities to promote innovation and entrepreneurship. In the past year, the Berkeley Haas Entrepreneurship Program has worked with Tohoku University to train top startups from the Sendai region in Lean Launch methodology. Haas has also hosted leading Japanese companies at the Berkeley Innovation Forum to explore building their innovation and entrepreneurial ecosystems.

To achieve its goal of a tenfold increase in the number of startups over the next five years, the Japanese government plans to send 1,000 entrepreneurs to the Bay Area over a five year span, and to invest in university partnerships, noted Haas Continuing Lecturer Jon Metzler, who helped organize the METI visit to Haas.

“The government of Japan is taking a number of measures to stimulate entrepreneurship, increase new venture formation, and nurture entrepreneurs with a more global mindset—including sending promising entrepreneurs to acceleration programs like Berkeley SkyDeck,” Metzler said.

‘Unicorns and decacorns’

METI Minister Yasutoshi Nishimura spoke to the Berkeley community on Japan’s innovation goals.

After an introduction by Associate Professor Matilde Bombardini of the Clausen Center, Minister Nishimura delivered prepared remarks and sat for Q&A with Acting Dean Chatman. He said everyone who has visited Japan in the past few years is surprised by how much it has changed. 

“In terms of macroeconomy, over the past 30 years because of deflation, it has been a challenging time for Japan. But now we are in an era when big changes are about to take place,” Nishimura said. Within the population of about 125 million, many entrepreneurs have been content to find success within the country. But Nishimura is encouraging young entrepreneurs to think big and “go global.”

“We are looking toward the emergence of many unicorns and decacorns,” he said. 

Nishimura also talked about plans to build a next-generation semiconductor fabrication facility in Hokkaido, which will adopt a 2 nm fabrication processa major technological leap compared to current fabs in Japan.

In addition to the Haas’ Clausen Center for International Business and Policy, the event was hosted in partnership with the Berkeley APEC Study Center, the Institute for East Asian Studies, the Center for Japanese Studies, and Berkeley SkyDeck, with support from the Haas Asia Business Club. The Japan Society of Northern California also helped promote the event. 

Left to right: Chris Bush, executive director of the Institute for Business Innovation; Berkeley Haas Lecturer Jon Metzler; METI Minister Yasutoshi Nishimura; Acting Dean Jenny Chatman; and UC Berkeley Executive Education CEO Mike Rielly.

 

Dean’s Speaker Series: Ruth Porat, CFO of Alphabet and Google, breaks barriers as ‘powerhouse woman in finance’ 

Ruth Porat, president, CFO, and chief investment officer at Alphabet and Google, ranks among the most influential women in finance, having earned spots on both Forbes’ and Fortune’s “Most Powerful Women” lists.

Porat joined the Nov. 1 Berkeley Haas Dean’s Speaker Series, discussing her rich journey from Wall Street to tech.

As a child, Porat said her parents, both scientists, told her to “learn, study, embrace the new, and work really hard.” “And when I graduated from college, I thought I would end up going into labor law,” she said. Later, while earning an MBA degree at Wharton, her path took a turn while taking an amazing mergers and acquisitions accounting class. “That was the game changer for me,” she said. “I ended up applying to Morgan Stanley, starting my career there, and thinking that was the only thing I would ever do: mergers and acquisitions. But as the world changed, I kept moving around.”

After decades on Wall Street, including serving as CFO of Morgan Stanley from 2010-2015, Porat pivoted to the world of technology, joining Google in 2015 as chief financial officer. At Google, Porat was one of the key team members who worked to shift the company’s business model and its name to Alphabet. (Alphabet is the parent company of Google and several former Google subsidiaries.)


(Watch the DSS interview with Ruth Porat)

Even with her years of finance experience, she said she found herself constantly adapting to the new environment at Alphabet—whether by learning new technical tasks or working with new teams.

“The most important thing, from my perspective, is drawing on what you know, but being authentic about what you don’t,” she said. “So just go with it, learn, know that you’ll figure it out.” 

As Google’s longest-serving CFO, Porat continues to utilize her strong finance background to lead. Throughout her career, Porat said she has also discovered the importance of what she calls a “work-life mix.” Unlike the traditional “work-life balance,” which can lead to guilt, she said she prefers to look at life as a kaleidoscope—in which both personal and professional lives co-exist. 

“What I always tell people on my teams is, ‘Look, I trust you. That’s why you’re on my team,'” she said. “If there’s something you need to do at home with kids, with family, do it. Don’t feel guilty, don’t check in with me. And when you need to be here, you know, really torquing it for work, you’ll be doing that. It works out over time.”

Read the full transcript:

Good afternoon, fellow Bears. How are you? I’m Jenny Chatman. I’m the acting dean at Haas. It’s a delight to see you all here for this exciting event. Welcome to today’s Dean’s Speaker Series.

I’m thrilled to welcome Ruth Porat, a powerhouse woman in finance. Ruth has broken barriers her entire career from her start at Morgan Stanley in the mergers and acquisitions department to her current role as president, chief investment officer, and CFO at Alphabet and Google. Ruth has seen finance through many different lenses, private, public, and tech. It is said that she has a magic power of charting paths through uncertainty, especially when she led through the financial crisis of 2008. Ruth has also been decisive in initiating change coming into Google in May of 2015 and being a key member of the team that shifted the business model to Alphabet.

A few months later, Ruth even finds the time to mentor others and serve on several boards, including Blackstone, the Council on Foreign Relations, and Bloomberg Philanthropies. In our ever-changing world, I’m grateful that we can learn from someone who has led with resilience and strength throughout her career.

Ruth, thank you so much for taking the time to come to Haas and speak to us today. So, just a note on our process today: You have note cards on your seats. If you have a question anytime throughout the conversation, please jot down that question, and be sure to put your name and which program you’re from and give it to our monitors, and they will get the question to our question asker. So, we’ll be collecting those cards throughout the event, and we’ll save time at the end to answer those questions. So, I’m now going to turn it over to Madhu Gupta and Paula Gutierrez, who are going to moderate today’s discussion. Thank you.

– Good afternoon everyone, and thank you so much Ruth for being here. We’re super excited to have you.

– Just a huge thanks, just wonderful to be with all of you, and thank you for those very, very kind comments. It’s wonderful to be with the group.

– My name is Paola Gutierrez.

– And I’m Madhu Gupta.

– And we’re both second-year, full-time MBA students. As a school with a strong interest and love for technology, our community is really excited to hear from you today. In our time together, we want to take you and our audience through a journey, first learning about your career, then your leadership development, your strong passion and advocacy for women in technology, and then, finally, your outlook on the future. Does that sound good?

– Sounds good. Let’s go.

– So you come from a family of scientists—your father was a physicist, and your mother was a psychologist. And you yourself have three degrees from economics, international relations, industrial relations, and an MBA from Wharton. So tell us a little bit: What got you into the business world, and why finance as a place to begin your career?

Ruth Porat: So I feel blessed to have had the parents I’ve had. They were humble immigrants who were very focused on education. They always said, “Education is your passport for life.” And my dad, as he said, he was a physicist. We ended up in California when I was pretty young. He was at the Stanford Linear Accelerator Center. And as a young child, when I was in elementary school, he used to take me up to Slack, and we would build gadgets. He taught me how to use a soldering iron when I was in elementary school. And for those of you who don’t know what that is, it gets to a pretty high temperature, and you can melt things, so you can combine component parts. We built a radio—it didn’t really play good music, but I was proud as an elementary school kid to build that. And my mom was a psychologist. And as a young child, she said it was really important as a woman to have a career outside of the home. And she showed me that it was possible. And so their message early on was always, “Just learn, study, embrace the new, work really hard.” And when I graduated from college, I thought I would end up going into labor law. One thing led to another, graduate school, open doors. I ended up taking an amazing class—a mergers and acquisitions accounting class was the game changer for me. Go figure. But it really was. And I ended up applying to Morgan Stanley, starting my career there, and thinking that was the only thing I would ever do. Mergers and acquisitions. But as the world changed, I kept moving around.

– Wow, you’ve had an incredible career journey. You spent 27 years in Wall Street, and then 2015, you joined Google as CFO. So walk us a little bit through that journey and how you navigated two of the most challenging industries for women—I mean both banking and technology—and how that transition was for you.

I think there were, over the years, I came up with a couple of rules that I kept going back to. And one of the most important ones, and I tell my teams this all the time, “Anchor everything in data, and the rest will follow.” And I think as a young woman growing up in the financial services industry, when you have data and you lay it out in a compelling way and it tells a story, and in particular, when you build sensitivity analysis that forces engagement on, “So, what are the key variables? Is it revenue growth, or is it operating expense expectation? Why? Where do you think the world will go?” It sort of just starts to transcend “Who are you,” and, “Why are you there?” And you go right to data, and there was an expression at Morgan Stanley: “The answer is a number.” I think that’s really true. And I always tell my team, “Sensitivity analysis, grab people in a different sort of way.” So anchor in data. I think the other thing that’s really important is: Find a great boss. So, my first project at Morgan Stanley, I was working around the clock, and I never got to go to even internal meetings, let alone client meetings. And finally, after about a month, I was brought into a meeting, and the managing director looked at this guy and said, “So are you the one that I keep hearing about?”, which sort of made it pretty clear he was taking credit for my work, and it taught me, “Go find somebody you really want to work for who will take a risk on you and has your back.” And I did that repeatedly. And probably one of the most important stories for me was, I worked for somebody who eventually became the head of equity sales and trading. And when I was asked to run technology equity capital markets, which is a joint venture between banking and sales and trading, he called me into his office and he said, “I think you’re going to soar, but if you slip, I’m here to backstop you. I will be your senior air cover.” And I just thought that that was such an important phrase. We all need senior air cover, and we all need to be senior air cover for someone. So that’s the second lesson. And then the third, which is sort of a corollary, is when you have that great person, you can also have open-ended conversations about your career. So, my go-to phrase that I think has served me well—and I always advise everyone to use—is: Don’t pinpoint where you want to be and at what time, but say, “What’s my highest and best use,” whenever that opening comes. Because every door that opened for me, virtually every door that opened for me, what came out of that kind of conversation, what’s my highest and best use? And then it would, that person I trusted who took a risk on me, who was backstopping me, would point to something, and we’d have an open dialogue about whether it made sense, whether I wanted to do it. So those would probably be the three most important rules.

– Just a quick follow-up. So many of us, at least MBA students, are looking at pivots in our career. So in that pivot that you made from banking to tech, were there any points of time where you felt a little nervous or kind of unsure of what was what you were going to be facing, and this also very new and growing industry?

– Well, I think pivots are great. I think pivots actually, the most important thing from my perspective is drawing on what you know but being authentic about what you don’t. And so, the pivot from Morgan Stanley to Google wasn’t as dramatic as it seems. I had run tech banking at Morgan Stanley, I’d taken Google public, I knew a lot of the people, but a lot was definitely very new, but probably one of the most important pivots I made. Going back to this conversation, highest and best use, I was asked at one point at Morgan Stanley to take over and run the investment banking business focused on financial services. So banks, insurance companies, asset management. And I had done tech mergers, private equity. So I had a very clear answer, which is, “That sounds horrendously boring.” Like, there’s no way I want to do that. But somebody I trusted who ended up becoming president of Morgan Stanley said, “You got to trust me on this one. Running financial institutions is actually a lot like running tech—25% of the global economy, multi-sector, tech, you’ve got hardware, software, semis, in financial institutions, banking, insurance, et cetera. You got to try this.” And he was trying to be helpful. The first meeting he set up for me was with Larry Fink, who’s the founder and CEO chairman of BlackRock, largest asset manager. And I’m thinking, “OK, this is terrifying.” I know nothing about asset management at this point. So to your question, where there are moments where it’s like, “Why am I here?” Yes, but I concluded, and he was trying to do me a favor, introduced me to one of the most important people in that sector. And I said, “They have a section of BlackRock that is all about technology. I’ll lean into that. I won’t pretend I know asset management, and that’s the most important thing.” Be authentic with what you know—you’ll learn the rest later. And just one last bit, the transition to Google, there was a lot I didn’t know, and I was constantly Googling terms, and I literally, at one point, I’m in a meeting with Larry Page and Sergei Brin, and Larry turns around and sees me doing this, and he said to the group, “She’s Googling everything.” I’m like, “That’s OK. I’m learning.” So just go with it, learn, know that you’re not, you’ll figure it out.

– You’re doing, I guess now, a slightly less dramatic pivot, but you’ve been CFO for 14 years, and now in July, you became president and chief investment officer of Google. So why now? And why the need for this role?

– Well, I felt like the position I’ve had as CFO and still have, it’s a privilege to be in this role, and it’s been extraordinary. And as CFO for eight years and the longest-serving CFO—and I’m still the CFO—and I will, I’m still massively focused on landing our plan and where we go from here. But it just seemed like the right time. Fourteen years as CFO, longest one at Alphabet and at Sundar, and I talked about it, there’s a real opportunity to say, “Where do we sharpen our focus on investments? How can he and I work together on that? And what’s the interplay between investments and global policy?” And I think it’s an exciting time on this planet, and so, it just seemed like the right time. So I’m grateful for it.

– Thank you, Ruth, for sharing your early interest in finance, your career, and how you’ve grown along the way. Shifting gears now a little bit to learn about who Ruth is and the personal experiences that have shaped her. I recently read that, when you interview candidates at Google and Alphabet, you often ask about their battle scars, which, correct me if I’m wrong, but for the audience here, asks, “What has happened to you, and how have you learned from it?” Today, we would love to pose that same question to you and learn a little bit about your personal battle scars and how they have shaped who you are today.

– I do ask that question in every interview. I think it’s a really valuable one to see, “How have people learned, and what pattern recognition do they have as a result of some of the toughest things that you’ve been through in life?” And so, there are probably two worth noting on the personal, ’cause you call, you said personal battle scars on the personal, I’ve had cancer twice. First, in 2002, 2000, I’m sorry, 2001. I’m blocking the whole thing out. 2001, and then again in 2004. And at the time, my kids were very little, first time around 5, 7, and 9, and it was clearly terrifying. I’m completely fine. I’m grateful for the amazing care that I got, but if it taught me anything, it’s to make sure everyone knows: Don’t assume that you can plot out a life on a timeline and defer to later what you want to do now. When I was in the hospital for surgery, I had these three amazing kids. I’ve been married to this amazing man forever. I am really happy with my career there. There were, I was the oldest in the cancer surgical center, and I looked at younger women, and my fear for them was “Had they done what they had wanted to do?” So, all I can say is, whatever it is, “Grab life by the moment.” Every day really is precious. And don’t defer because you don’t actually control the timeline as much as we all would like to think, professional, but I’m fine. So that’s the good news. Medical care is amazing, in terms of professionally, probably the biggest battle scar was going through the financial crisis. And because I didn’t actually go with my instinct on that, no way am I going to do financial services. I did end up running it in 2006, and then crisis, when you were in a bank started in 2007, 2008, secretary Hank Paulson asked if I would, a team of us from Morgan Stanley would, we got seconded to the Treasury Department. I worked with him very closely on Fannie Mae, Freddie Mac, when we went through the various Lehman, et cetera, weekends, and then AIG. And it was extraordinary to go through that and just really see the imperative of making crisp decisions at the right time, in the right way, with the right team.

– Thank you for sharing. I know many of us in this room can draw inspiration from the immense strength and courage with which you’ve navigated these very difficult experiences. Now forging a path in a successful path, I should say, in these industries, does not come without personal sacrifices and evaluating trade-offs. Now, of course, you are no stranger to that, having navigated many challenging periods in your professional life as you just mentioned. So navigating the 2008 financial crisis, a long battle with cancer, and most recently the pandemic and tense economic conditions, what have been the most important lessons that you have learned along the way—and how have they changed the way that you show up and lead every day?

 

– That is a great question. I think one of the most important things I come back to all the time, I say it frequently, is “the absence of information is filled with dirt.” And when you’re going through any crisis, personal or professional, the absence of information is filled with dirt. Those around you fear the worst. And one of my kids, ’cause I also use this expression at home, said, “Actually, mom, when you’re a teenager, sometimes it’s filled with fun,” and he’s totally right. But fundamentally, the absence of information is filled with dirt. And I think that, to me, the fear that our teams had going through COVID, you don’t know everything when you’re going through a crisis, obviously it’s so rapidly evolving, you don’t want to overstate and then under-deliver, but sharing what you know, how you know it, making it clear you care and you want to bring people along, is absolutely imperative. And when I look at all of you thinking, you’re about to enter the workforce, I tell my teams this all the time because also, it’s really important actually, as when you’re on a team, if you don’t tell your boss what you’re doing, sometimes they assume, “Well maybe they’re not actually doing very much or doing what I want them doing.” Communication is really important. I had a boss who said, you can never over-communicate enough. I think that’s right. That’s probably one of the most important. And then the second really important one is something I learned actually from Hank Paulson, secretary Paulson as we were going through the financial crisis. And as I’m sure many of you remember, at one point, the biggest concern was about Greece, and was Greece at a tipping point? And he said the problem when you’re going through a crisis is, “You have to have the will and the means, the political will and the financial means, too often by the time you have the will, you no longer have the means.” Problems get bigger over time. And I think it’s very instructive for all of us. When you see an issue, it’s easier. First of all, it’s easier to prevent than to fix. And it’s easier to fix early than to let it grow. So act, be decisive, you’re always dealing with least-worst options. There’s no good option. Those would be some of the main lessons.

– Thank you. You touched upon how you have led through these very trying times for the world. And, of course, your incredible leadership has earned you the title of the most powerful woman on Wall Street. And one of the most powerful women in the world by Fortune and Forbes. I want to ask you, what do these labels mean to you, and how do you shoulder this responsibility for the women and minorities around you?

– You know, in the early days, it was uncomfortable to hear something like that. But then I realize what’s really important. I am here because of the many women before me who made this possible, my mom, who said, “Have a career,” and I saw you could be a great mom and have a great career. And oftentimes, I’d come home and wonder, “Why did everybody else get to come home?” And their mom was there, mine wasn’t. But I saw what an important role model to us. And she’s really, that generation cleared away so much our, my generation is trying to clear away more for all of you and other underrepresented groups. So I think it’s really important that we, A., understand and see the various roles that women and other underrepresented groups have in these industries and are there for one another. And really, again, that senior air cover backstop be there for one another. Some of the things that we may each think, we’re idiosyncratically going through it. No, probably a number of us have dealt with it before. And so having that open network is really, really valuable.

– Yeah, just to follow up to that, What do you believe is the biggest priority to get more women into tech and leadership roles?

– Well, I think for every organization, it has to start with tone from the top. ‘Cause tone from the top sets that expectation for all. But that’s not enough. You then, I firmly believe, need to ensure that the organization has invested in process systems, and I’m going to come back to it and data, at the end of the day, set your goals, hold yourself accountable, and see how you’re doing with data. Data will tell you, will make it really clear, elucidate where you’re missing. You’re falling short of expectations. But I think of it like any supply chain issue. If it’s not working, you need to basically go back through, “What is it, do a postmortem, what’s not working, what in our supply chain is not working?” And it starts with clarity about what your objectives are, the data, and then putting process around recruiting, retention, training, visibility, every element of it to make it possible.

– You’ve been a strong champion for women in tech basically for all of your career. Even in 2018, you joined your team in the walkout protesting sexual harassment at Google and at the Wall Street Journal Tech Live conference, you asked, “If the tech industry can make cars that drive themselves, why can’t it do better when it comes to sexual harassment?” Many of our MBA students, myself included—and we spoke a little bit about this before coming out to the stage—are focused on centering diversity, equity, justice, and belonging in their careers and future ventures. When you’re thinking of your role as CFO—and now as the chief investment officer—how do you make decisions to advance DE&I, not only in the makeup of employees and the organizational culture but also in the way that products and services are designed and taken into market?

– That’s a great question and so important. Look, I think it starts with a deeply held view. I have, Sundar (Pichai) has, our senior leadership has, that diversity is not, and diversity, equity, and inclusion in an org, is not just the right thing to do, but it builds a much better, stronger, more capable organization. The diversity of views lets you understand and see things that you don’t otherwise see. And so, everything I said about put process and systems so that you’re making sure that you have at the broadest representation that you’re supporting people throughout their careers, giving them the access, the opportunity is key. And then, as we talked about briefly, the impact on product is absolutely imperative. It goes to the same point, one of my favorite stats, 1.3 billion people on the planet have accessibility challenges. So when we think about Google and our mission to organize the world’s information and make it universally accessible, one of the important thing, universally accessible, 1.3 billion people on this planet are in need of some elements of what we can do with technology that will open the ability, access to information, access to different elements. And so it makes our products better. Everybody should be focused on this. I also, as a CFO, one of the things I’m really proud that we do, is we have a digital skills training program. And it started when our colleagues in New York wanted to find people from underrepresented communities in New York, train them to do IT support. Fast-forward many years, it was such a success, their conclusion was, “If we want to really have an impact, what we should do is create certificates that are portable,” which we now have nine, “Build a consortium.” We now have more than 250 companies in the U.S. More than half of the people who go through this program are from underrepresented groups. And what we’re doing is giving them access to high-growth careers. Well-paying careers. And what is extraordinary to me is, if you want to have sustainable economic growth in society, you need to have everybody participating. You need to address the opportunity gap. And so, we’re addressing it through our products, but also through other efforts where we can say, “How do people participate in this growing, thriving, changing economy?” And so, I am proud of it, it’s very core to the way we think about it.

– That’s amazing. Sometimes there are things that we can’t control based on the society and the systems that we work under. So, I want to switch gears a little bit and talk about the things that we can do personally to set ourselves up for success when we’re facing some challenges in our career. So, you’ve been very vocal about not liking and banishing the term “work-life balance” because you believe it sets us up for failure, both men and women. And you are a big advocate for a work-life mix. So can you kind of speak a little bit to what that means and how you’ve created that for yourself?

– Yes, it’s one of my favorite topics. I love your chapters back and forth here. So look, I think where you said it in the question, work-life balance, like balance, the physics of balance is really hard. And I think that when you’re trying to have balance, all you do is feel guilty that you’re not doing enough at work, you’re not doing enough at home. You haven’t, you’ve let somebody down. So the metaphor, you know, I keep coming back to is, “Life is like a kaleidoscope.” If you have one side that’s equal in size to the other, and one’s yellow and the other’s green, that’s pretty boring compared to what life really is. Lots of different shapes, lots of different colors, they move over time. And so, what I always tell people on my teams is, “Look, I trust you. That’s why you’re on my team. If there’s something you need to do at home with kids, with family, do it. Don’t feel guilty, don’t check in with me. And when you need to be here, you know, really torquing it for work, you’ll be doing that. It works out over time.” And to me, it’s that work-life, mixed kaleidoscope that’s really important. And you’re absolutely right. It is for all of us. All of us need to figure out in our lives, how do we actually combine a mix? And for me, a large part of it was kids, but it may be something else. It may be sports or community service or whatever it is, you need a mix. Because the other point is, if you don’t have a mix, I think you burn out on your job. There’s no way that any job, I love my job, I’m so grateful to have this opportunity, but if this was it, I can’t imagine that it would be completely all nourishing. So, figure out a mix, recognize that you’re, do it whenever you want to do it. No timeline thing. Going back to the first question and then that mix is going to nourish you over time.

– A quick follow-up on, you talked about kids was part of your mix and figuring that out. How did you figure out what was right for you and what felt right for you? If you know that being a mom was going to be a big part of that mix, or was that something that you tested, maybe a few things you didn’t like? Try some other things until you found the right recipe?

– Yeah, I probably, if my kids were here, I don’t know what they would say, but hopefully, it would be good. It does start with the fact that my parents were amazing, and as I said, with a mom who worked, I think that really helped because I had a pattern that I saw actually could work. And I think part of the mix element is I didn’t try and have two separate lives. My kids were very aware of what I was doing. And they met the people with whom I worked, so we played games. If I was working on a deal, I would explain how the globe worked and the markets where they open, and we would follow it. Which may sound like a weird set of games. Some of you’re probably like, “Wow, great mom.” But, you know, I, one thing I have right on my dresser ’cause it means so much to me working during the financial crisis, we were literally working around the clock and that AIG awful weekend, or Monday, Tuesday, Wednesday, rather, I was around the clock, and I came home and my kids had each written a little note to me, yellow sticky note, and it totally reflected their personality. The oldest must have been 14 or something at the time, was like, “Mom chillax, this’ll be fine.” Which is his personality. And then the middle guy was like, “This is so important for the country.” And the little guy was like, Mommy, hurry up and fix this because I want you back.” And it was, but they got it. They got, it was, I was doing something that mattered. And to me, that was because we always talked about it. And also because I was present when in everything important in their lives. So that is a way of saying, I really, this whole thing. Can you have it all? Well, I think you can, you just have to define what that is. Maybe there are plenty of things I haven’t been able to do and plenty of things where I wish I could have done more. But it’s a beautiful mix when you think about it. It’s the kaleidoscope.

– Thank you for sharing.

– Sure.

– Yeah. Thank you for taking us along your thoughts on balancing professional and personal lives. And I personally loved the kaleidoscope analogy, so I’m going to be using that. We are now at your, let’s see, eighth year at Alphabet and Google, and congratulations, what an incredible journey that has been for you. Google, as we know, is known for its transformative world, changing ideas, often being the pioneer of groundbreaking innovation. But investing into such projects requires a high degree of risk and uncertainty. How do you evaluate and measure the impact and potential of these projects against the risk and the potential consequences they may carry?

– Yes, it’s a great question. I think, for all of us, coming out of business goals and focusing on finance and capital allocation is one of the most important things that we do. And I think there are really two parts to your question or two parts to the answer—one I learned really early in my career. I was on a deal at Morgan Stanley, the Gillette hostile takeover defense. It was written up in the book from Good to Great. And the reason it was written up is, the CEO said, “Do whatever you need to do to keep me independent, but you cannot touch my R&D budget, and I will not tell you what it is, but I’m better off dead than existing without that budget.” And it ended up, I learned years later it was the Sensor razor. And I think the message I got as that young associate was, “If you don’t invest for long-term growth, you are starting to sow the seeds of your decline.” And so, you are totally right, there are risks associated with it, but there’s a bigger risk not doing it. And so, really important to invest for long-term growth. Now, that needs to be calibrated, you got to have the engine, but by the time you need that growth to kick in, I have seen too many companies across too many industries where they think about it too late, and then they’ve sort of run out of runway. So then, how do you analyze it, to your question? It’s hard to do. I mean, it starts with, again, data. What are the assumptions that you need to look at? And oftentimes, and I learned this really working at Morgan Stanley and thinking through, “How do you determine what to take public in many instances, the articulation of what is the model, how can it evolve, how does it defy what is already out there in the conventional world,” gives you a sense of what’s the art of the possible but also what’s the aspiration and ambition of the CO. Do you have the right team that’s going to drive to get to the top of the mountain? And so the analytics are hard. It has to be a problem that’s worthy of taking on. We often start with, it’s got to be, have the opportunity to really benefit people around the globe in a meaningful way. It has to be big enough to matter. And then you look at, “How is it transforming? Is it truly a different approach, a different experience?” And so, it’s, yeah, and you have to, and then finally, I’m sorry, set metrics along the way so that you can kind of mark yourself, metrics and milestones along the way.

– Thank you for sharing. It’s really fascinating to sort of hear about that data-driven approach that you just described. All of us MBA students in the room today. We are super excited about the future. We’re very hopeful, but at the same time, we are living in very uncertain and anxious times with the emergence of gen AI and the impact it can have on the workforce. Very tense economic conditions and worsening climate change. And the list just goes on, with that. When you think about the future, Ruth, what keeps you up at night? What helps you keep going and what are you most excited about?

– There’s a lot to be excited about, and I think you’re absolutely right. There’s so much to be concerned about. I do think technology throughout history has been a catalyst to solve problems. It’s been a catalyst for economic growth. When we talk about AI, we want to make sure that we’re bold and responsible. We’ve talked about the fact that, when you have a technology, that “is this extraordinary and transformative?”, and then Sundar, our CEO years ago in Davos said, “It’s like fire. It can sterilize water, it can heat your home, it can burn it down. It needs to be properly governed.” So, I think, when I’m very excited, when I look at what AI can do, if I go back to cancer as an example, when I got to Google, shortly thereafter, our amazing team had a breakthrough in early-stage detection of metastatic breast cancer. I had breast cancer. And so, I call my oncologist at Sloan Kettering and said, “Is this as important as it seems, or is this just kind of Silicon Valley believing itself?” And he said, “You cannot, we cannot transform health care, we cannot democratize health care.” That was his language. “We cannot democratize health care without AI.” And to me, that’s extraordinary, because I had amazing care because I was at an extraordinary institution. But not everybody lives near Berkeley or near Sloan Kettering or you name it. Not everyone lives in these areas. And so the upside, whether it’s in health care, and many cancer docs will believe that we will solve many aspects of cancer in our lifetime. That’s amazing, right? Whether it’s with education, whether it’s applying it to climate change, there’s a lot to be excited about. But we do need all of us focused on, “How do we use this productively in the right way?” Climate change is so self-evident that the pace at which the evidence is in front of us that we need to make sure that we’re individually, collectively applying ourselves. And at Google, what we look at is, “What can we do through products and services that will help more than a billion people on the planet make decisions in their daily life?” And, “What can we do at, across Alphabet to transform tech with technology that can transform solutions?” And, “How can we run our data centers 24/7 on carbon-free energy? What do we need to do?” So, we each, I’m concerned and excited, and I think that’s the right way to think about it because what the solutions are here if we apply ourselves with gusto, and we need to collectively own these issues.

– Thank you, I think we definitely needed that inspiration.

– Last question for today. You were in our shoes once at Wharton a few years ago. What is your-

– A few years ago, that’s so generous. A few decades ago.

– Just a few years ago, we have a room full of MBA students here who are very excited to embark back into their professional lives. What would your advice be, and if there’s one thing that you could do differently when you were in business school, what would that be?

– So I feel like you keep asking a question. I give a two-part answer, apologies. But I graduated from Wharton, I’ll date myself because it’s relevant to the story. I graduated in 1987, I started at Morgan Stanley in August of 1987. And for the historians in the room, October of 1987 was the single worst percentage decline in the history of the stock market. And that record has not been broken. So I started my career six weeks before I thought the world—the finance world—was falling apart. It didn’t, if you now go and actually Google it and look at do a chart, right? August 1987, to the present, it’s a tiny blip. It is irrelevant. In the moment, it felt like everything I’d worked so hard for maybe was gone. And what I ended up doing was I thought I would only be in M&A, and I was never going to do anything other than mergers. But new things came out of banking after that. And so, first of all, no matter what the world throws you, I do think these things open up new doors and keep it in context. It feels much worse in the moment. Number two, be open to new ideas. If you love what you’re doing, stay with it. You don’t need to move around. But if you get to a point where I did a number of times in my career where I felt like I was plateauing, I went back to the, “What’s my highest and best use?” And I was open to change. And just make sure you’re working with great people, ’cause they will coach and train you. They will get you up the curve much faster. I ended up hiring somebody when I got to Google who was close to retiring as controller of Intel. He had a bit more time left. But I said, “Come over to Google because we have amazing young rising superstars, but I want someone with your pattern recognition.” And that’s what he did. He got all of the team up the curve really quickly ’cause he brought so much wisdom from his many years of experience. So, lean on those people. If you’re working with great people, they’re going to love to coach and see you rise up, and you’re going to have fun.

– Well thank you, Ruth. It’s been an absolute honor chatting with you today, and I speak, obviously, on behalf of all of us when I say we’re so grateful for the opportunity to learn from you. With that, I think we’re ready to move on to audience Q&A.

– Cool, thank you. Thank you both for the questions.

– I’m Don Moore. I am the associate dean for Academic Affairs here at Haas. Thank you, Ruth.

– Thank you.

– For this wonderful, insightful discussion.

– Is your mic on?

– Your mic’s not on

– It’s not on? Oh, nope. OK, thanks. So let’s see, I have a few questions from the audience. Given the fact that Google’s on the forefront of the AI revolution, can you take us into the future and share with us what your or Google’s vision is for that future and help the aspiring young professionals in the audience place themselves in that future? How should their careers take account of where things are headed?

– So AI, what’s interesting about it is it’s so, so much a part of every conversation that we’re having, but the reality is, of course, we’ve all been using AI for quite some time. Anytime you take, you do a photo search, or anytime you’re traveling and you want to translate to another language, across the board, contact centers are currently using AI to provide operating leverage to the teams they have there directing questions queries most efficiently. So, it is here. That being said, your question is a great question because the inflection is extraordinary, and I think you’re going to see it in every industry and it’s going to, so wherever you are going, whatever you’re going to do, make sure that you’re fluent and fast and, “How can I use AI to either get closer to customers or think about operating efficiencies in my business? Where should I get operating leverage? How can I use it as a risk tool?” Those are sort of the business answers. When I think about the implications for the world, I’ve hit on a lot of it. And to me, that is what’s exciting, the implication for health. So as an example, our leading AI group, Google DeepMind. So at DeepMind, they open source to the world, something called AlphaFold, where it’s basically giving to the world protein structure as a base for researchers, scientists globally to work on drug discovery, climate change solutions. And what I’ve heard doctors say, researchers say is, “This is the most important foundation for drug discovery.” And to me, these types of things are what get me really excited. So, it’ll be in every part of your life. And I think those of you say, “I want to go into governance around it,” that’s a great part as well. Making sure that it is safe, that bias is addressed. Oftentimes, I’m asked, “Well what’s the role if you’re not a computer scientist?” Plenty. Because much of what we do in the real world today has bias embedded in it. You don’t want to just replicate that. So we like to bring in social scientists, humanists to make sure that what you’re looking at, we’re thinking about how to improve upon this. And then the last point I’d make is, I personally really like the concept that it’s not artificial intelligence—it’s augmented. And for each one of us, it should augment what we do. It’s a tool for us to use, but judgment and bringing teams together, creativity, it is going to be a foundation, just like I’m old enough to remember my first calculator, my first PC. These are all operating leverage, and we should use it that way.

– A follow-up question. Google is at the forefront of organizations racing toward the transformative introduction of general AI, and there are some intelligent observers who worry about the risks that unleashing AGI on the world could pose competitors racing toward that frontier may all want to get ahead of their rivals and may all wish that the government imposes some safety regulations on all the competitors. What sorts of regulations would Google like to see imposed?

– It’s a really important question. The White House actually has done a very good job here bringing industry in. And I think the group of us who’ve come together, and they just issued their executive order on AI, but the principles around governance for AI have been very important to do red teaming, to test what you’re doing, to provide transparency, to look at watermarking, all of these issues where you look at it as a collaborative body trying to ensure that we prevent misuse, abuse, and the downside risk. And I think one of the other things that’s been very important that the White House has also done is, what we don’t need is a U.S. solution and a Europe solution, and fill in the blank. So trying, for example, the G7 came out with some added principles, and everyone’s trying to constructively come together to delineate, “What are the rules of the road that will make a difference?” And we’re pleased to see that that is the way people have approached it

– A couple of times already. Today the issue of climate change has come up. How are you thinking about the current climate crisis from the will means perspective? What’s Google’s role, especially from an investment perspective in helping create a better, more sustainable future?

– Well, I’m very proud that from the earliest days the founder, our founders Larry and Sergey had been focused on climate change. And so, we were the first to be carbon neutral than we’d said in 2012. We wanted to match 100% of our energy consumption with renewables, figuring that if you put basically a bid out in the market, you would catalyze more supply. That, at the time, the team thought it would take about a decade to get there but hit that goal by 2017. And so, a number of years ago, we said, “What we now want to do is work on actually not just matching but never emitting. So let’s run all of our data centers, all of our office campuses on carbon-free energy 24/7.” It is not easy to do, but we’re making a lot of progress on it because, again, collectively, we need to set clear aspirational goals. The data are self-evident, they’re going in the wrong direction. And so, that part of that’s about “how do you use AI.” For example, one of the things that we found is we can make our data centers more efficient. We think we’ve had the most efficient data centers on the planet, and yet, with cooling, you can make them more efficient with an application of AI to measurement and looking at where you cite them so that you can actually use alternate source of energy. If anyone wants to come down to Sunnyvale and see our campus there, we’re really proud of the way we’re building, we’re using in our Sunnyvale facility, geothermal energy, you can see our solar panels on the buildings. And so, building it into everything you do is one, the second I’ve already mentioned, “How do we make sure that our products address what people around the globe are asking for, which is how can we each have an impact?” So eco-friendly routing is the one example, and if you search on flights, “What’s the carbon footprint from flights?”, that should motivate every CEO of a company that is the bottom of the list to move higher up on the list. And so again, it’s another form of saying transparency, and then we have some exciting breakthroughs in our… across what we’re doing in research that are still early,

– Such important contributions. So, the issue of the global climate crisis and wise shared guardrails on the development of AGI both necessitate international cooperation. Shefali is a full-time student in our MBA program and a former U.S. diplomat. She asks, “Could you please share more about your engagement with international relations and how this connects with your career in finance and tech?”

– Great question. So, I look, I firmly am of the view that there’s an interplay between public policy and the types of investments that one makes, would want to make. For example, if you’re citing a data center somewhere, you want to make sure that we can actually protect users’ data. That we don’t actually lose it because there’s an expectation. And so, there is unequivocally a linkage between getting the right policy in place and then people do want to invest, invest responsibly. And I think bringing that lens to all of the discussions is key. I saw that unequivocally during the financial crisis, you, and each one of you working, where you work will have technical insight, and the question is, “What actually is in the art of the possible that can land that doesn’t have unintended consequences?” And what’s very important is, you come at it trying to solve the problem for the country, trying to actually step outside and into the role of the person you’re working with. It is extremely transparent when you’re not doing that, and as somebody who sat on the other side of the table, you want to make sure you’re engaging with people who are constructively trying to solve the issues at hand for the broader society and bringing their technical expertise. So I think that interplay between finance, investment, public policy, is a wonderful nexus that enables us to have stronger public policy.

– Have you been able to apply your studies in international relations to your work?

– Well, it’s funny, because my thesis a million years ago was about nuclear energy and nonproliferation of nuclear weapons. And, at the time, I was very clearly saying this is a concern. Fast-forward many decades, not many years, but many decades. And I actually think to the climate change question, there’s a real opportunity, in particular, given we have smaller scale of nuclear energy opportunities to look at what’s the interplay there. And are there ways that we should be rethinking some of the things that I learned many, many years ago. But absolutely, the lessons of history are lessons we keep learning over and over again. And whether it’s how do you solve, how do you bring together the public-private sector to convene in a way that develops and delivers very responsible governance around AI. There are plenty of history lessons there, or whether we think about where else we can execute. I think every discipline that any one of you has gone through, you will find a nugget in there that’s relevant.

– Nebo Iwenofu is a student in our evening weekend MBA program and asks, “You have to have broad knowledge and deep understanding to be successful at your level. How would you coach a leader in your organization to be both broad and deep in their area of responsibility?”

– I think you develop that over time. Don’t expect too much upfront from yourself. Do what you’re doing—do it really, really well. I think there was one point in my career at Morgan Stanley where I actually stepped back as we were getting to the year-end process, and I realized I was working for too many people, I was supporting too many people. I was in equity capital markets, I think, at the time. And so, I had a whole host of business partners, and I think focus yields results, and so, go deep, have a great boss or series of bosses who will coach and groom you. Then, you get expertise that you can then continue to build upon, and you have plenty of time ahead so you don’t need to rush it. I think it’s very easy to be super impatient and not have that context, and you’ll be surprised how over the years it just sort of is like a patchwork quilt that builds on itself.

– If you could go back in time to deliver a message to your 27-year-old self, what would you tell yourself?

– Probably, “It’s going to be OK.” I don’t actually look on things where I’ve messed up. It’s like mistakes. I view them as learning experience, and so, I don’t actually record them that way because they are learning experiences, and I think just keeping things in perspective and appreciating the kaleidoscope that life does evolve over time. There were plenty of times, actually, I finally have a good answer as I was rambling on and on too. Inarticulately, the most valuable is that you’ll be able to get there and learn and grow and just grab the moments when you see them and enjoy it as you go. Don’t feel guilty, maybe, I don’t know what it was in my life, but I have felt guilt all the time. So I’m very articulate about saying, “Don’t feel guilty.” Work-life mix, not work-life balance. It came from feeling guilty, right? That I wasn’t doing enough, and only when I deconstructed why and got to the kaleidoscope and got to the fact that I have amazing kids and incredible partner in life, did I realize be there in the moment and be wherever else you need to be in that moment. And it’s OK. Guilt doesn’t actually do anything productive in life.

– Thank you. We should wrap it up there. Let me thank our question-askers, Madhu and Paola, and thank Ruth for the wisdom that you shared with us today. Thanks to all of you for coming.

– Rather than ending on the word guilt, I’m just going to say, “Have fun.” You’ve got so much ahead of you. So it’s a pleasure being with all of you, and thank you.

Berkeley Haas launches new Climate Solutions Fund 

Aerial view of a massive array of solar panels
An aerial view of Dominion Energy’s Scott Solar farm in Powhatan, Va. (AP Photo/Steve Helber)

The Haas School of Business is launching the first student-led Climate Solutions Fund, the latest addition to its comprehensive curriculum to equip the next generation of business leaders with the financial skills to accelerate the transition to a low-carbon economy.

Beginning in fall 2024, MBA students can enroll in a new course where they serve as investment managers for the $2.37 million fund, learning how to structure financing in complex private markets by co-investing in real-world deals focused on solutions to climate change.

“As the world moves toward a goal of net-zero carbon emissions by 2050, we need financial leaders with the skills to navigate the economic revolution we are facing,” says Professor Adair Morse, co-founder of the Sustainable and Impact Finance Center (SAIF), who conceived of the fund and will lead the course. “This economic revolution will be staggeringly disruptive yet will also be a source of more business opportunities across all parts of the country than we’ve seen in 250 years.”

“As the world moves toward a goal of net-zero carbon emissions by 2050, we need financial leaders with the skills to navigate the economic revolution we are facing.” —Professor Adair Morse

The new fund was made possible by a lead gift from Allan Holt, MBA 76, along with generous founding donations from Larry Johnson, BS 72, Charlie Michaels, BS 78, and his wife Doris, Scott Pinkus, and Professor Laura D. Tyson, former Haas dean and co-founder of SAIF.

“I am thrilled to help Haas take the lead in training leaders in the emerging area of climate finance,” says Holt, a Senior Partner and Managing Director of The Carlyle Group. “Decarbonizing our economy is the critical issue of our time, and I am committed to supporting future leaders who can spur this transition.”

“Decarbonizing our economy is the critical issue of our time, and I am committed to supporting future leaders who can spur this transition.” —Allan Holt, MBA 76

The multi-asset class private Climate Solutions Fund augments Haas’ unique curriculum under SAIF, which teaches investment management with hands-on experiential learning. It rounds out the public markets-focused Sustainable Investment Fund—the first and the largest student-led sustainable investing fund within a leading business school—and the Haas Impact Fund, a seed/startup capital offering.

A new area of finance

The Climate Solutions Fund curriculum will teach students new designs and uses of finance not traditionally taught in mainstream finance courses, where there are dire needs for leadership, according to  Morse, who saw the need for this financial expertise while serving as deputy assistant secretary of Capital Access in the U.S. Department of the Treasury from 2021-23.

Financing the climate transition requires a diverse and technical tool kit: An estimated $4 trillion to $5 trillion per year will be needed to reshape global energy, transportation, food, and waste infrastructure, and to help companies reinvent supply chains and integrate new technologies, Morse says. 

This level of reinvestment will require every finance tool available, including designing financial structures to mobilize government programs and work with community and industry partners,” she says. “Our goal is to expand how we teach students to provide the leadership and expertise that corporations, financial entities, startups, governments, and philanthropies will need to navigate this transition.”

This level of reinvestment will require every finance tool available, including designing financial structures to mobilize government programs and work with community and industry partners.” —Professor Adair Morse

The fund, and the associated MBA course, are the first at a major business school to focus on complex financing strategies within private markets, including growth equity and debt equity; public-private partnerships with federal and state programs; risk mitigation; identifying the underlying technologies to fuel the low-carbon transition; and envisioning new financial products.   

Students enrolled in the Climate Solutions Fund course will assess investment opportunities in U.S.–based for-profit companies, working with outside investment partners to structure deals. Following a pitch competition, student managers will select one finalist to co-invest $100,000 to $300,000 annually. The fund is intended to generate positive returns over time so that future generations of students can build off the capital.

Stock photo of a biogas plant and farm (Adobe Stock)

Comprehensive curriculum

In addition to the “fund-as-curriculum” courses, SAIF also offers other applied innovation courses such as the Impact and Climate Investing Practicum, where faculty guide small teams of MBA students who are paired with impact investing firms to to gain hands-on experience with impact investing strategy, mapping, and measurement projects.

The courses count toward the Michael’s Graduate Certificate in Sustainable Business. Open to both full-time and evening and weekend MBA students, the certificate requires 9 units of required coursework. Students can create a pathway that’s focused on either bringing a sustainability lens to a mainstream business function or building expertise into a specific industry such as renewable energy or green infrastructure.

In addition to Morse, SAIF is led by Professor Panos Patatoukas, The L.H. Penney Chair in Accounting, and Tyson.

Five major areas of sustainability

The new Climate Solutions Fund is part of Haas’ larger effort to ensure that all students are educated in the fundamentals of sustainability. Haas launched the first student-managed SRI fund in the early 2000s and is now the only top business school to work across five major sustainable business areas: energy, sustainable agriculture and food, real estate and urban economics, corporate accountability, and sustainable finance and accounting.

The school has combined research on energy conservation and storage, building efficiency, renewable energy sources, and sustainable food with efforts to include climate and equity into the core business curriculum across all programs. All told, Haas offers more than 25 courses with a focus on sustainability.

For students planning careers in managing sustainability challenges in organizations, Haas is also planning to launch a new joint master’s program in 2024 with the Rausser College of Natural Resources to offer an MBA/MS in Climate Solutions. 

 

Startup Spotlight: Xepelin’s rise in fintech services

Xepelin, co-founded by Sebastian Kreis, MBA 18, rocketed to No. 3 on Poets & Quants’ 2023 Top 100 MBA startups list this year. The company, based in Mexico City, has raised $567 million so far and will use the funds to invest in new markets in Latin America.

headshot of a man

Haas News asked Kreis a few questions about his startup’s success.

Tell us about Xepelin. Xepelin was founded in 2019, the year after I graduated from Haas. Our aim is to be the “digital CFO” for small- to mid-size companies, offering an online platform that helps businesses organize their accounts and automate payments to suppliers and payment advances from customers.  

You’ve had quite a lot of success getting the company funded over the past year. Tell me a little about that.

Last year, the company secured $150 million in equity and a $140 million credit line from Goldman Sachs that we are using to expand software, payment, and working capital services in Mexico. We are headquartered in Mexico City and now have 400 employees. 

How big is the market for your services and what’s your expansion plan?

The companies we are targeting account for over 60% of Latin America’s GDP. These companies present an enormous opportunity for us, with more than $10 trillion in unmet needs. High acquisition and servicing costs have kept them underserved. Xepelin is committed to equipping these companies with efficient access to software tools, payments, and working capital.

The companies we are targeting account for over 60% of Latin America’s GDP.

What resources at Haas helped you become an entrepreneur?

There were two resources I tapped at Haas: learning from entrepreneurs and investors in the Bay Area who had already built successful startups, and working on fintech projects with Lecturer Greg La Blanc. I traveled to Mexico several times while I was at Berkeley because of the size of the market. I studied the metrics, such as credit and software market penetration, before committing to building a regional company, starting in Mexico and Chile. 

Ann Harrison named ‘Dean of the Year’ by Poets & Quants 

dean Ann Harrison in pink jacket standing outside
Dean Ann Harrison was named 2023 Dean of the Year by Poets and Quants. Photo: Brittany Hosea-Small.

Berkeley Haas Dean Ann Harrison, a renowned economist lauded for keeping Berkeley Haas’ six business programs ranked among the world’s best and significantly expanding the breadth and depth of the faculty, has been named Dean of the Year by Poets & Quants.

Poets & Quants Editor-in-Chief John Byrne announced the news to a global audience at a Thinkers50 virtual conference today. Byrne engaged in a sweeping conversation with Harrison that covered the impact of globalization on workers, the responsibilities of government and business in fighting climate change, the critical role of diversity on campus, and the enduring importance of the MBA.

“The MBA is a wonderful degree,” Harrison said. “It combines the rigor of statistics, data analysis, hard-core quant skills with skills like how to work with people, marketing, and how to sell,” she said. “What’s wonderful about an MBA is that it allows you to combine these different skills. Other degrees don’t offer that combination.” Haas MBA students care about making an impact, she added, “not just a great paycheck.”

Harrison has amassed an unimaginable and nearly breathtaking record of achievement. —John Byrne, Poets & Quants

In his Poets & Quants article, published today, Byrne wrote that Harrison has amassed an “unimaginable and nearly breathtaking record of achievement” during her four-and-a-half years as dean. Harrison, who has led Haas since January 2019 and was reappointed to a second term last February, said she was “deeply humbled” by the honor.

“I am so lucky to be surrounded by a tremendous community at Haas—students, staff, faculty, and alumni who are always going beyond themselves,” she said. “It’s only together that we can seek solutions to climate change, build a more inclusive society, and fuel innovation in all its forms. This is a business school that embodies excellence. I feel great pride in our past and am thrilled to have the opportunity to create impact for the future.”

Harrison is the second woman to lead Haas; Professor Laura Tyson served previously. As the former director of development policy at the World Bank and a longtime professor, Harrison has focused her research on international trade and global labor markets.

Big Changes

Since joining Haas from Wharton, Harrison has made big changes, Byrne noted. She has led a major diversity, equity, inclusion, justice & belonging (DEIJB) effort, broadening the profile of the Haas faculty, school board, and the student body. The school’s entering full-time MBA class this year is 41% women, 47% U.S. minorities, and 13% U.S. underrepresented minorities overall. 

Harrison has woven sustainability content deep into the curriculum while maintaining the school’s historical focus on entrepreneurship and innovation. 

“The challenges of climate change permeate all aspects of business: supply chain, economics, management, and finance,” she said. “In the latter field, we have pioneered new ways of investing. We need to hire in all these dimensions. It is a big agenda and we are making a lot of progress in a lot of different ways.”

Harrison also oversaw the launch of the first Flex online MBA cohort at any top business school. Applying learnings from the pandemic, Haas used new technology to make the MBA available to expanded groups of international students and working parents who require flexible schedules.

Under Harrison’s leadership, Haas also stepped up fundraising, raising a record total of $227 million, including $56.1 million during the last fiscal year. The school also secured the largest single gift in the school’s history—$30 million from alumnus Ned Spieker, BS 66, and his wife, Carol, BS 66—to turn the undergraduate program into a four-year program.

Figuring it out together

In the Poets & Quants article, Courtney Chandler, Chief Strategy & Operating Officer and Senior Assistant Dean at Haas, noted that Harrison “hasn’t stayed in one lane as dean.”

“She’s ambitious, and she sees the full potential of Haas within UC Berkeley and is driven to realize that potential,” she said. “She has not been that one-dimensional dean and that is incredibly impressive.”

“She’s ambitious, and she sees the full potential of Haas within UC Berkeley and is driven to realize that potential.” —Senior Assistant Dean Courtney Chandler

Harrison’s record as a highly cited scholar has also helped her lead the school’s professors, Byrne said. 

“It’s hard to get faculty to buy-in to a dean’s vision, but she has been able to do that effectively,” Erika Walker, senior assistant dean for instruction, who has been at Haas for nearly 20 years, told Byrne. “She relates so well to them…. Ann is very thoughtful about where we should be going. A lot of her success stems from her ability to get the buy-in and then enlist others to figure it out together.”

Professor Catherine Wolfram (left) talks with Dean Ann Harrison (center) and Professor Ulrike Malmendier (right) at a Dean’s Speaker Series event.

During her second term, Harrison said she will continue to work with her team to build upon the school’s academic excellence as well as the student experience at Haas. One important goal is to ensure that the school’s degree programs remain the best in the world, she said.

In its 2023 b-school ranking, the Financial Times named the Berkeley Haas Full-time MBA Program #7 worldwide and among the top four U.S. programs, a record high. The Evening & Weekend MBA Program ranked #1 among part-time MBA programs in U.S. News & World Report, and the highly-selective Haas Undergraduate Program ranked #2. The Financial Engineer ranked the Master’s in Financial Engineering (MFE) Program #1 in the world. 

Harrison earned her BA from UC Berkeley in economics and history, and her PhD from Princeton University. She held previous professorships in UC Berkeley’s College of Agricultural and Resource Economics, as well as at Columbia University and the Wharton School, where she was the William H. Wurster Professor of Management.  

An avid hiker, Harrison told Poets & Quants that returning to UC Berkeley and California has allowed her to use time off to explore the state’s cliff-lined beaches, redwood forest, and the Sierra Nevada Mountains, “a paradise for those who love the outdoors.”

Harrison is the 13th dean and the third woman to be named Dean of the Year by Poets & Quants, which covers business school education.

Dean’s Speaker Series: Sal Khan on how ‘delusional optimism’ led to free, world-class education for anyone, anywhere

man on a large video screen speaks to students at Haas
Khan Academy CEO and Founder Sal Khan traced his journey to provide free and accessible online education to kick off the fall  Dean’s Speaker Series Sept. 19.

With more than 150 million users in more than 190 countries since its founding in 2008, nonprofit Khan Academy has become an educational staple for students and instructors alike. 

Khan Academy CEO and Founder Sal Khan traced his journey to provide free and accessible online education during the first fall Dean’s Speaker Series talk Sept. 19. 

After graduating from Harvard Business School in 2003, Khan worked as a hedge fund analyst, having told his friends “I’m going to do this long enough so that I could become independently wealthy.” Around the same time—having always been passionate about education—he began tutoring his cousin over the phone using an interactive notepad. From there, Khan expanded his lessons to include family and friends, even writing software to create deep item banks—databases of questions—to help them practice. 

With advice from a friend, he began incorporating video, uploading his lessons to YouTube—and by 2008, Khan Academy reached almost 100,000 users. Even with the nonprofit’s initial traction, however, Khan noted the risks that come with starting any new business. 

“I think anytime you do anything entrepreneurial—for-profit or nonprofit—you have to start with that delusional optimism. You assume that surely the market, the investors, the philanthropists, whatever, whoever the stakeholders are, they’re going to recognize the value of what you’re creating. And oftentimes, it doesn’t happen as fast as you think,” Khan said. 

I think anytime you do anything entrepreneurial—for-profit or nonprofit—you have to start with that delusional optimism.

Despite receiving offers from venture capitalists, Khan turned them down to maintain control and ensure his organization remained free and accessible. Nine months later, current Khan Academy Board Chair Ann Doerr made an initial donation, which led to a lunch meeting and eventual working relationship.

After Bill Gates talked about his own kids using the platform at the 2010 Aspen Ideas Festival, Khan had another meeting to discuss ways to support Khan Academy’s future. This, coupled with more funding from Google, allowed Khan Academy “to become a real organization,” Khan said.

Since then, Khan Academy has expanded to include more than 70,000 practice problems with translations into more than 50 languages. The nonprofit is also partnered with upward of 500 school districts, even having its own accredited schools: Khan Lab School in Silicon Valley and Khan World School, a partnership with Arizona State University. Now, Khan Academy is launching Khanmigo, an AI educational chatbot, to help instructors and students understand how to use AI to support learning. 

In terms of running and scaling a nonprofit with an impact like Khan Academy, Khan cited the importance of teams maintaining a clear mission. 

If you can grow and maintain your talent and your alignment, a 300-person team can outperform a 30,000-person team.

“The hardest thing is, as you grow, to maintain alignment. If you can grow and maintain your talent and your alignment, a 300-person team can outperform a 30,000-person team,” Khan explained. “Alignment is not just communication. And this is a muscle that I don’t think people in Silicon Valley exercise enough—being very clear with team members: ‘Look, this is what we’re doing. If you’re excited about that, awesome. If you’re not, this might not be the place for you.’ That is kind of strong language, but I have found it to be very powerful language because otherwise people are just trying to pull (the organization) in all sorts of different directions.” 

Watch the full DSS talk below.

Read the full transcript:

– Good afternoon, welcome. I’m Don Moore, acting dean here at the Haas School of Business. I’m thrilled to welcome all of you to the first Dean Speaker Series of the year. Today’s guest, as you know, is Sal Khan, founder and CEO of Khan Academy. Sal holds two bachelor’s degrees of science and a master’s in electrical engineering from MIT and an MBA from a school called Harvard Business School, which you may have heard of. Sal became passionate about education while he was an undergraduate at MIT. He developed math software for children with ADHD and tutored fourth- and seventh-grade public school students. While working as a hedge fund analyst in 2004, Sal began tutoring his young cousin in math over the telephone with an interactive notepad. Within a couple years, he added more than a dozen relatives and family friends to his online classes. In 2008, he founded Khan Academy with a mission to provide free, world-class education for anyone, anywhere. Khan Academy now partners with more than 500 school districts and schools across the United States to help teachers tailor instruction to each student. Khan Academy is now used in more than 190 countries. There are more than 150 million registered users around the world and translations into more than 50 languages. Today, Khan Academy’s platforms include more than 70,000 interactive practice problems, as well as videos and articles that cover a range of subjects from pre-K to 12th grade. Khan Academy is piloting a new tool called Khanmigo, which gives students an entirely new way to use AI to learn. He also wrote a book, The One World Schoolhouse where he presents his radical vision for the future of education with a goal of leveling the playing field for access for all to world-class education. Thanks, Sal, for taking the time to join us today and to talk with us about your work. Now I’ll turn it over to today’s moderators, MBA students Anu Tej and Mrudula Vemuri.

– Thank you for that introduction. I’d like to just introduce myself one more time. My name is Mrudula Vemuri. I’m an EWMBA class of 2024. And I’d also love to share my first story using Khan Academy. I was desperately in need of help with my calc homework, and I had a calc final looming in college, and I turned to Khan Academy, and it hasn’t failed me ever since. Even through my macro and finance courses here at Haas School of Business, I’ve used Khan Academy, and it’s helped me all along the way, so I can’t wait to see what they have in the future.

– OK, I am Anu and I’m a full-time MBA class of 2024. I first learned about Khan Academy just after my undergrad. I had joined this early stage startup, and I was given a task to do data analysis, and I had no idea how to do it, and one of my teammates came to me and said, “Oh, you might want to check out Khan Academy for some of the concepts.” And I started with high school statistics that night, and I was like, “Oh my God, I needed this in college. I needed this in high school.” All this while I thought I suck at statistics, I did not. I was able to do that analysis that I did; and like Mrudula, I was able to pass my macro economics last year because of Khan Academy. Thank you so much for helping us. So I want to start,

– [Sal] Always good to hear the stories.

– I want to start with the origin story, Sal. I know you were tutoring students during your high school, and I also know that you will tell your friends when you are working in a hedge fund that ‘I want to work in hedge fund long enough to start my own school someday.’ So tell us more.

– Yeah, first of all, thanks for having me here, and as I said, always great to hear y’all’s stories. Yeah, I’ve always had this interest in education. I think going back to maybe even elementary school where we all had good moments in our education experience; and then we all had some not-so-good moments. And usually, some of those not-so-good moments are feeling a little bit bored or feeling disengaged or seeing some of your friends bored or disengaged. And so I’ve always been fascinated that there’s got to be a better way to do this. Anyway, you fast-forward to, I graduated from undergrad. My first career was in tech. Then after that, I go to business school. After business school, I find myself, I’m at a small hedge fund in Boston at the time, and I graduated from business school in 2003, and it’s now 2004. I had just gotten married. My family was visiting me up from New Orleans, which is where I was born and raised up in Boston. And even before that, actually, to answer your question directly, when I was working at the hedge fund—and this is what I did tell myself—but I would tell my friends who were like, “Well, what’s your lifelong goal?” I was like, “Well, I’m going to do this long enough so that I could become independently wealthy,” which I have not achieved, but I did the other, well, the thing I wanted to do after I wanted to be independently wealthy, so I can start a school on my own terms. I thought that would be the most fun thing to do, to be one day, be like a Dumbledore-type figure, but once again, in some ways have to convince anyone that, and we could talk more about, there’s some benefits of having to convince people things. But when it became clear that my cousin Nadia needed help, she didn’t even know that she needed help, but I knew that she needed help. She was in seventh grade, and she was put into a slower math track, which had all sorts of potential negative implications for her future. I offered to tutor her remotely when she went back to New Orleans. She agreed. And so, yeah, we got on the phone. We used to use instant messenger at the time to just communicate. We could see each other’s writing, et cetera. Slowly but surely, she got caught up with her class, even ahead of her class. At that point, I become what I call a tiger cousin. I called up her school, I said, “I really think Nadia Raman should be able to retake that placement exam from last year.” They said, “Who are you?” “I’m her cousin.” And they let her take it. And the same Nadia who was being tracked into a remedial track was now put into the advanced track. 

So I was hooked. I started tutoring her younger brothers, Armand and Ali, and it was working with them, and word spreads in my family, free tutoring is going on. So before I know it, there’s 10, 15 cousins, family friends that I’m tutoring on a regular basis. My day job, I was at the hedge fund, but markets close. I’d get on conference calls with, for the most part, my cousins, a few family friends.

But that’s how I started, and I was enjoying it. I was connecting with family, but I was also, I believed that there’s a way of approaching a lot of this subject matter that could be very intuitive and even enjoyable for my family. I also saw that there was a common pattern, and I saw this pattern throughout my education. The reason why folks struggle isn’t because they aren’t bright. It isn’t because they don’t have good teachers or they’re not hardworking. It’s usually because they have gaps in their knowledge. And by the time you get to an algebra class, it’s really hard to address those gaps of, say, dividing decimals or negative numbers. And those gaps happen in a traditional system because kids just keep getting moved ahead, even if they get a 60 or 70 or 80%, or they forget stuff. So that’s when I started writing some software for my cousins, too, ’cause I honestly couldn’t find any good practice on the internet at the time. This was back in 2004, 2005. Because I wanted them to get as much practice as they need. So I was creating these very deep item banks that were partially computer generated, et cetera. And that was the first Khan Academy. It had nothing to do with videos at the time. 

Then in 2006, by this point, we had moved out to the Bay Area. I was at a dinner party showing off the software. I’m a super cool dinner party guest, and the host of the dinner party, his name’s Zuli, I have to give him full credit. He said, “Well, this is cool, Sal, but how are you scaling your lessons?” And I said, “Yeah, it’s hard to do with 15 cousins what I was originally doing with just a handful.” And he said, “Well, why don’t you make some videos, upload them onto YouTube for your family?” I told him, “That’s a horrible idea. YouTube is for cats playing piano. It’s not for serious math.” But I got over the idea that it was not mine. And I gave that a shot. And that took on a life of its own, obviously. My cousins famously told me they liked me better on YouTube than in person. I think what they were saying was that they enjoyed having an on demand, not feeling shy, not feeling embarrassed. If it’s 11 p.m. and they had a question, they could access it. I believe they still enjoyed being able to get on the phone with me to go a little bit deeper. But then a lot of other people started discovering it. And then by 2008, there were about 50 to 100,000 folks using it on a monthly basis. And that’s where I incorporated it as a not-for-profit, a mission-free, world-class education for anyone anywhere. 2009, I frankly had trouble focusing on my day job. We had some savings at this point. My wife was a medical fellow, so she was still in training. Our first child had just been born, so our expenses were going up, but we were saving some money for a down payment out here in the Bay Area, which we all know is not a joke, even back in 2009. But we felt, well, maybe if we give it a year, hopefully someone will fund this philanthropically. So that’s when I took the plunge, and that first year wasn’t easy, but eventually, it worked out.

– Well, thank you. I know that I have personally shamelessly rewinded many, many videos. In my personal experience interacting with Khan Academy, I noticed that there’s a huge breadth of topics. Were you familiar with all of these topics before the beginning of Khan Academy? And if not, how did you teach yourself so many different things?

– Great question. The simple answer is no. I think that there, with that said, well, I can surprise folks with my breadth. Let me just say that I’m definitely above average. But there’s certain topics that I did know very, very well, math being one of them. I would say math and physics and some other parts of science I knew very, very well where I could kind of get into it. I didn’t need necessarily a reference or a textbook. 

With that said, once Khan Academy became a more professionalized organization and we wanted to make sure we covered all of the standards, we now have a team who’s curating the questions and figuring out the scope and sequence and instead telling me, “Hey, they’re using a different term nowadays for,” I mean, the most famous example is when I was in school, it was called atomic weight. Now it’s average atomic mass. Or let’s redo a video. So there’s definitely support now, but in those early days, but even now, I take joy; and maybe there’s folks in this room who feel the same way that if you learn to learn something well, that that is actually a very transferable skill to almost anything. And it goes against what I think most people are indoctrinated into in school. My biggest pet peeve is when I hear someone say, “I’m a math person,” or “I’m a humanities person.” And unfortunately, you’ll sometimes hear it from educators. In fact, you’ll almost always hear it from, you want to give a math teacher anxiety, ask them to engage in the humanities, or you want to give humanities teacher anxiety, ask them to engage in math. And even at a high school level, like, you graduated from high school, right? Like, this shouldn’t be something… So unfortunately, I think sometimes that not optimal signaling happens to students. 

But I think generally speaking, if you learn to understand something really well in any domain and you build that muscle of, like, asking the right questions: Wait, how does A lead to B? I’m not just going to take it as a leap of faith. I need to understand it, prove it to me. How does this make intuitive sense? You can take that to almost any domain. And I’ve always been, some of the subjects in Khan Academy are things like history, and I’ve always really been fascinated by history. I don’t have any formal training in it, but I’ve been fascinated both on just, like, these are real human stories that happened. How can it not be interesting? But then also I’ve always been sometimes frustrated on not being able to place things in time and space and seeing timelines and things like that. So I’ve tried to take that tack and when we try to cover some of that on Khan Academy, and we’ve gotten positive feedback. And then there’s certain even science topics that, when I took it in college, I took organic chemistry in college. It was not a class where I was like, “Oh, this makes intuitive sense.” I got through the class, I got a fine grade, I did what I needed to do, but I didn’t get out of that class thinking like, “Oh, I see the beauty in organic chemistry.” So when it was almost, as a challenge, some of those organic chemistry videos are still up there on Khan Academy. When I did this almost 10 years ago, I said, “Before I even press record on that first video, I’m going to just sit and immerse myself in organic chemistry for several weeks until I learn to love it, until I learned there must be an intuition behind it.” And there is and actually, it all boils down to electronegativity, actually. You don’t have to memorize as many mechanisms as you think. And I would call up friends and stuff like, “Explain this to me. Why is this happening?” And someone would say, “No, we don’t know. That’s an area of research.” I was like, “Well, someone should tell the students that too, so they don’t bang their head on a table and they’re like, I’m actually trying to figure out an area of open research.” So yeah, I don’t know it all, for sure. And I do use Khan Academy when I’ve already made 80 videos in a certain course and they want an 81st. I sometimes have to watch some of the videos that I already made in order to get up to speed.

– Oh my God, thank you so much for that. Can you tell us, I mean, you briefly took us through from your undergrad, to, like, starting of Khan Academy for your cousins and, like, the whole journey ’till today? But can you tell us what would you consider your first big break in your life? This can be before Khan Academy or after.

– Oh, big break. Oh, so many breaks. I’ll give you more than one. Probably the first is when I was in second grade, my older sister was three years older than me, and she was, like, the star student. She was in the gifted program. I thought I was in the gifted program because they take you out; they took me out of class every day into some kind of enrichment thing. It turned out it was speech therapy. So I was being in a different, I was put in a different category than my sister, but because I was Farah’s younger brother, I think the school said there must be something there. And so they kept testing me. And so the first break was I went from speech therapy into this kind of gifted enrichment program that they had. It was Louisiana Public Schools, not famous, but it was a really good program. I still remember that first day, 7 years old, I walked into a classroom, unlike any other classroom I had ever seen, there were just, like, five or six kids in the room. Some kids were playing chess, some kids were drawing, some kids were playing “Where in the World is Carmen Sandiego?” And there were two teachers. I mean, it was well-resourced if you really think about it in hindsight. And they’re like, “Oh, Sal, come on in.” And I walked up to both the teacher’s desks and they said, “Oh yeah, so what are you into?” And I said, “Well, I really like drawing. I really like puzzles.” And so they’re like, “OK, so we’ll draw and do puzzles.” And I didn’t even want to tell anyone about this thing ’cause I thought it was some type of, like, secret racket going on inside of my school that would be taken away from me if people knew what it was. But that I consider a break because one, that opened my eyes to what school could look like if everyone was really engaged and interested. And I think most of my memories from elementary school are that, so it had a real impact on me. 

I mean, there’s a bunch of other breaks. I would say another, I’ll give my sister credit. When I was in, we didn’t have a lot of money, raised by a single mother. My mom was essentially making minimum wage eventually. And I remember when my sister was applying to college and I asked her, “What’s your first choice?” She said, “Brown University.” And I said, “You’re nuts. Brown University’s tuition is twice what our mom makes per year. Like, there’s no way that you’re going to Brown University.” And then my sister explained to me about financial aid and this and that. And my sister got in and was able to go. I mean, she still had some significant debt, and I think it’s gotten more generous since then, but it was very generous. It’s much better than what we thought it would be. So, that I considered a break of sorts ’cause that opened up my aperture to what’s possible. 

You fast-forward, I mean, I’ll give a couple, well, I’ll fast-forward to the Khan Academy ’cause I think there was a big break there, which is, I talk about quitting my job. Me and my family are now living off of savings. I think anytime you do anything entrepreneurial for-profit or nonprofit, you have to start with that delusional optimism. You assume that surely the market, the investors, the philanthropists, whatever, whoever the stakeholders are, they’re going to recognize the value of what you’re creating. And oftentimes, it doesn’t happen as fast as you think. When I quit my day job, I was talking to some philanthropists, but very quickly, those pitted out. They really didn’t know what to make, how to make sense of what we’re trying to do at Khan Academy. And about nine months into that, it was stressful. I was waking up in the middle of the night. We were digging into our savings, about $5,000 a month. It was quickly not a down payment on a house anymore. And I was really questioning every, I’d given up a good career that I, for the most part, enjoyed. And then it was, yeah, about nine months in, all of a sudden, a $10,000 donation came in. I immediately emailed the person, her name is Ann Doerr. She’s now our chairperson. But at the time, I said, “Dear Ann, thank you so much for this incredibly generous donation. This is the largest donation Khan Academy has ever received. If we were a physical school, you would now have a building named after you.” And Ann responded back and said, “Well, that’s surprising to me. It’s actually surprising to me you’re a one person operation. I thought this was, like, a real thing. I see you’re in Mountain View. I’m in Palo Alto. I’d love to have lunch and learn more about what you’re doing.” So we have lunch, and Ann kind of asked me, “What’s your goal?” I said, “Look, I filled out free, world-class education for anyone anywhere.” And says, “Well, that’s ambitious. How do you see yourself doing that?” And I said, “Well, I’m building out all these exercises, videos, I’m going to go into all subjects, all grades, all and all this practice software to allow kids to learn at their own time and pace. I had already started building some teacher tools so the teachers could keep track of it. I had a notebook of testimonials from around the planet.” I said, “Eventually I want to localize this into languages of the world.” And Ann said, “Well, that’s ambitious, but how are you supporting yourself?” And I told her in as proud of a way as possible, I said, “I’m not.” And she kind of processes that. She pays the bill, and then we part ways. And about 10 minutes later, I’m driving into my driveway in Mountain View and I get a text message from Ann and it says, “You really need to be supporting yourself. I’ve just wired you a hundred thousand dollars.” So that was a good day a little bit. So that was great…

I’ll list one more ’cause the story only gets crazier. About two months after that, this is now about May of 2010, I want to say, or maybe June. I’m running a summer camp ’cause I never thought online is a replacement for physical. I always thought online could be a liberation of the physical, so you could do more games and simulations and things like that. So I was literally running a trading floor of seventh graders, and I start getting text messages from Ann, which you can imagine I now take very seriously. And there were five or six text messages that were coming. It was a little bit disjointed, but Ann was essentially writing, this is Ann writing, “I’m at the Aspen Ideas Festival. I’m in the main pavilion. Bill Gates on stage last five minutes talking about Khan Academy.” So I didn’t know what to make of this. And y’all can look, if you do a web search for like Bill Gates, Aspen Institute, Khan Academy 2010, you should find this video. But I found this video when I boot, I booted a seventh grader computer, and I found a delayed broadcast or a recording of it where Walter Isaacson asked Bill Gates, “What are you excited about?” Open question. And Bill Gates just, “There’s this guy Sal Khan. He’s got this website, Khan Academy. I use it with my kids. I use it myself.” And I was like, “Is this really happening?” And I remember that night I showed my wife that. I’m like, “What do I do now? Do I call him up? Like, what’s the protocol here?” And they left me in that state for about two weeks. Two weeks, I’m in actually this walk-in closet where I still am about to, worldwide headquarters of Khan Academy, about to record a video. And my cell phone rings, it’s a Seattle number, and I answer it. “Hello?” “Hi, this is Larry Cohen. I’m Bill Gates’ chief of staff. You might’ve heard that Bill’s a fan.” “Yeah, I heard that.” “And if you’re free in the next few weeks, we’d love to fly you up to Seattle and figure out ways that we might be able to collaborate.” And I was looking at my calendar for the month, completely blank. So I said, “Yeah, sure. I got to cut my nails next Wednesday, but I’m happy to meet with Bill.” But anyway, we had that meeting, and it was very similar to the meeting with Ann. And so by fall of 2010, and actually I was having similar meetings at around the exact same time with executives from Google, and I can talk more about that, who were trying to fund a, they were going to fund five projects that could change the world was their charter. And then fall of 2010, it all converged. So that was a major break. The Gates Foundation and Google, on top of the money the donors gave, allowed us to become a real organization.

– Wow, thank you for sharing all of those big breaks. And I hope that a lot of us in this room are hoping for our next one. Just to go back a little bit further down memory lane, who was a favorite teacher in your past and how would their role be transformed by Khan Academy and generative AI and ChatGPT that’s coming into the world now?

– Oh, good question. I’ve answered the favorite teacher, but not the combo one. I’ll give credit to, I talked about that first day in second grade, Ms. Kraus and Mr. Cell in that enrichment class. I think what would’ve happened if Khan Academy existed then, some of that “Where in the World is Carmen Sandiego” play would’ve been Khan Academy play. And you would’ve had some kids in Metairie, Louisiana, accelerating dramatically in math and science and other subjects. 

Ms. Ellis was my fifth-grade social studies teacher. And I remember her because in hindsight I realized how brilliant she was. She ran her fifth-grade class like a humanity, a college graduate seminar. I remember she used to just peel an orange at the front of the classroom and just ask us questions all day about like, “So why do you think they did this? And why do you think this happens? And what would’ve had been different if they didn’t decide to declare war and et cetera, et cetera.” And I always found it really interesting, and later, I realized how special it is to have a teacher like that. If Khan Academy, Khanmigo and all of this existed, yeah, I think it would’ve provided even more space for that type of Socratic dialogue because students could get a lot of the core skills at their own time and pace. And if you have the AI to also be able to supplement and you can ask some questions that you might otherwise be embarrassed to ask in class, all the better. 

Let’s see, I remember Ms. North was a really cool teacher in middle school who once again liked a very Socratic, very philosophical type of question. She was our English teacher.

And then in high school, Mr. Hernandez, who was a math teacher, but he was also the advisor. It might not surprise you, I was the president of the math club, and he was our advisor, and he kind of treated me as a colleague, which was really great. Like, we would plan things together. And I really appreciated that. 

And then Ms. Kennedy, who ran journalism. She also ran it, like, we would just run, she ran it like a company, like, we ran the newspaper and she was like the chairman and she would advise us and help us. 

And I should also, when I was in high school, I did dual enrollment at the University of New Orleans, and there was a professor there, Dr. Santania, who when he realized that I was taking some very advanced math courses with him. And when he realized that I didn’t have a computer at home, nor could I afford one, he got me a job at the university doing research with him. And that’s essentially how I first got access to a computer and I started learning how to program, et cetera. So yeah, I don’t think—I might not be here if any of those folks maybe weren’t there.

– Wow, thank you for sharing those inspirational stories and how those people have impacted your life. I know that you’ve told us that learning the ability to learn is of utmost importance, but what’s a skill that took a lot of time or attempts to master for you?

– Oh, that’s a good question. I mean, if I go refer back to what I’ve already told you, learning to speak properly. I still have to pause before I say hospital ’cause until I was about 8 years old, I would say hostable. And I still sometimes will if I’m not really, really careful. So I always say hospital, I pause. So I’ll say that. 

Other things, well, I’ll say at the other end of my life, and this is one that unfortunately a lot of folks I think haven’t invested enough in is, in 2015, so eight years ago, like, weird things were happening. Like, I started getting claustrophobic on planes. Like, I would get on a plane, and I’d, like, want to get out as soon as possible. Like, it was not a pleasant experience. And I’m, like, something’s off, and I wasn’t sleeping well. And in hindsight it was really; I was probably too stressed, and t’s like a frog in boiling water. It just creeps up slowly, and it manifests itself in these really weird ways. But I started taking meditation very seriously at that point, really just so that, ’cause I had to travel, and I, just to see if it would make the planes more pleasant. But that practice of meditation I now take very, very, very seriously. And a lot of times, especially people who are ambitious, who want to do big things in the world, they try to kind of account for their own time as much as possible. And they try to be as on and as productive. And I still do that. I try to be as productive as I can when I’m on, but the off time is just as important, arguably more important. And I think it’s easy to overlook. So it’s taken me—it took me, when was that? I was 39 years old when that happened. It took me 39 years to realize that. And I think every year, I realized that more and more and every year, I take more permission with myself to, “I’m going to go to the sauna today,” or “I’m going to take this meeting walking around the park,” or “you know what, I’m just going to cancel these three meetings ’cause I don’t think I really need to be in that. And instead I’m just going to go meditate outside.” And I actually think that makes me more productive and it makes me a better entrepreneur, leader, whatever you want to call it.

– Wow, I think especially MBAs needed to hear that. We definitely need some off time and definitely some meditation to help us feel grounded. I did that just again before getting on stage. And maybe you answered this, but I’m going to ask this again. What is a topic or a skill that you think everyone should learn that is traditionally left out of K-12 education?

– Oh, so much. I mean, look, I’m talking to a bunch of MBAs. A lot of what I learned in the first year of business school, like accounting and the core of finance and how do you price something and present value? The mathematics of it are, like, middle school mathematics. It’s not super difficult. I don’t see any reason why that shouldn’t be taught in middle school or worst case, in high school. Anyone who just needs to think about one day starting a business or trying to decide whether they’re going to rent versus buy a house, they should learn that. 

So I would say those types of skills and at minimum, personal finance skills, and this is something that schools are increasingly, at least states are passing legislation for schools to teach it. I think the schools without help are going to have difficulty ’cause like who’s going to teach it? Well, we’ve been working on this for many years, but we’ve recently launched a full financial literacy course. It’s targeted at the high school level, but honestly it’s useful for anybody where it’s like, people, well, I remember, I had an MBA and the first time I went to buy a house, I was just like, “Why do I need title insurance? What is title insurance?” You’re like, “What is this thing? And exactly how does escrow work, right?” So I think that type of thing is super, super useful. 

There I had a brief period in undergrad where I wanted to be a, well, I’ll say there’s a class I took actually in, I was going to talk about, I briefly thought I wanted to be a lawyer, but then there was a class I took in business school called business law. But it was essentially, it was a crash course in law. And I remember thinking, “This could have been taught to me when I was in seventh or eighth grade.” Like, it should have been taught to me in seventh. Most people get through the whole education, including a college degree or including graduate school, and they don’t understand the legal system, which seems pretty darn important. So yeah, I would throw in financial literacy, legal system, basic finance, and accounting. Those are the big ones.

– Thank you. So our next question is: You’ve started Khan Academy and registered it as a nonprofit organization, and you’ve continued to run it as a nonprofit. How did you decide on this business model, and why not a private company?

– Hmm, yes. And there’s actually I think now three business school cases on this decision. How it’s evolved, it’s interesting. My day job at the time, I was a hedge fund analyst, which was arguably the most for-profit activity. It was only for-profit. Like, there’s no other benefit, or well, liquid capital markets and pricing efficiency, every hedge fund on the margin is helpful. But anyway, it’s primarily for-profit. But while in that job, I was able to be a really, it was interesting to be an observer of how organizations’ behavior was driven by capital structure. That honestly, you had annoying people like me, hedge fund analysts calling you and trying to figure out whether you’re going to meet or miss your earnings this coming quarter. And usually, the way that executives are compensated at these firms are based on stock performance and things like that. And I also saw when the debt holders are senior versus to when you have a strong founder versus when you’re in the second generation and the founder’s left, very few of these organizations are able to stay. There are for-profit organizations that start with a strong, mission-driven founder and are able to stay true to that until something happens to the founder or until the founder doesn’t have control of the organization anymore, right? Private equity just bought it or well, now the founder owns 20%, but 80%, it’s a public company now, or the founder dies, goes away, gets fired, and now someone else is taking over. There’s very few examples you can give. 

And there is an irony that the only class in business school—I don’t know about Haas—but where I went to business school, they didn’t fail anybody, but they would give you these like internal grades and the only grade that I would’ve been, like, the equivalent of a fail if they actually failed anyone, was a class called social entrepreneurship. Because I was so skeptical of some of these nonprofits, I was just like, “Yeah, they tell a good story, they pull on your heartstrings, but is that really going to cure cancer? Is that really going to blah, blah, blah, blah.” And that’s what I wrote in the essay until I realized that that was the not-for-profit that the professor started, but not a good idea. But it didn’t fail anyone, so not a big deal either. It allowed me to speak my truth. 

So I was cynical, but being in the hedge fund world, I said, “I want this Khan Academy project to just always be there.” I read a lot of science fiction. I was like, “what if this could be like a new type of institution, like the next Oxford or Smithsonian, but it could be on a completely different scale. It could be for billions one day and maybe it could last for hundreds of years.” And if you look at that, the only organizations that can be true to that type of a mission are not-for-profit organizations. And so, it’s sometimes delusional to say that you want to be the next Google or the next Facebook or the next Amazon. That’s hard enough. It’s arguably even a little bit more delusional to say that you want to be the next Oxford or you want to be the next thousand-year institution, but you live once, why not try?

– And what are some of the biggest challenges you faced while running and scaling a nonprofit organization? I know it’s very unique and different from running a for-profit company. A lot of our classmates who are in this room today are either building their own organizations like this or want to join one and lead one of these organizations.

– Yeah, if you asked me in 2000, if you asked me in late 2009, I would’ve said the biggest challenge is raising money and convincing people that you’re legitimate. I, at the time, took the most naive strategies and look, the advantage that Khan Academy had or that I had was that I was making something that was discoverable by people. I think it’s a very different thing if you’re starting a not-for-profit where you’re taking donations from one group and then you’re going someplace in the world and then you’re putting that money, I’m probably not the best person to ask on how do you start a not-for-profit like that. But here, not only was I making something that people could find and discover, but it was happening, it was growing, in those early days it was growing 15, 20% per month. So it was on this kind of exponential growth curve that people would associate with a high-growth tech company. And look, VCs were coming up to me and they were saying, “Hey, I’ll write a hundred thousand dollars check right now. You can quit your day job.” And it was tempting and I would take the second meeting with them, but the second meeting, they started talking about premium offerings and putting this behind a paywall and that and this is how you’re going to, and I’m like, no, and I was getting letters from kids that I knew and families that I knew would not be able to use the tool if this VC had their way. And so that’s why I kept turning that down, and luckily, my naive strategy kind of worked with people like Ann discovering it. And eventually, I mean, you can’t plan for Bill Gates just showing. I have a theory that I sometimes play with that benevolent aliens are using Khan Academy to prepare humanity for first contact. And some of what I told you of like, these things that seem a little bit more than just chance. Those are my data points. I have more. I actually think the benevolent aliens help set me up with my wife as well, so that I can prepare humanity for first contact through Khan Academy. But I have some good stories there.

But the real difficulties, I think, beyond that first validation, which is a hard one, and it was really hard. I mean, I kind of laugh about that nine months where I really didn’t know what I felt like; I kind of ruined our financial future. But once we started to have resources, I think it is, and we were a little bit, we are still unusual. We’ve been able to attract very good talent. Like, the main arguable advantages that a for-profit has over a nonprofit is access to capital, access to talent and potentially some notion of the incentives make you act in a different way, which could be good or bad. Access to capital, at least in those, in hindsight, I’m happy that the access to capital we’ve had, our budget is a real budget where it’s like 60, $70 million a year now. And it’s primarily philanthropic. So we have been able to do that. 

Now, there have been other for-profit organizations, including in EdTech, that started a year or two after Khan Academy; and they get higher and higher valuations, and they’re able to do these really huge rounds and raise a hundred million, raise 500 million, raise a billion dollars. And as a 30-year-old, I would’ve been somewhat envious of that. Now, I don’t envy that at all because that creates all sorts of distortions and pressures. And the hardest thing is, as you grow, to maintain alignment. If you can grow and maintain your talent and your alignment, a 300-person team can outperform a 30,000-person team. I’m not saying this even as an exaggeration. I 100% believe this. Like, you see this playing out in the real world right now. I mean, OpenAI is a 300-person team. I think they’re outperforming many 80-, 90,000-person teams on what they’re doing ’cause they are aligned. And to some degree, probably the scarcity of capital in their early days helped drive that. And their group that I know very intimately now, and I know some of the 90,000-person organization, some of them were our original funders very well as well. But yeah, I think that alignment, when you get to like 20 people, you start realizing that people just don’t always assume the obvious, what you think is the obvious thing ’cause you’re not just having conversations on the way to the snack counter or whatever. And so you have these growing pains. There are like 20 people, 50 people, 100 people, 200 people. And so now I’m a big believer in like, you can’t overinvest in alignment and alignment is not just communication. And this is a muscle that I don’t think people in Silicon Valley exercise enough, is being very clear with team members of like: “Look, this is what we’re doing. If you’re excited about that, awesome. If you’re not, this might not be the place for you.” That is kind of strong language, but I have found it to be very powerful language because otherwise, people are just trying to pull it in all sorts of different directions.

– Thank you. And just to, like, double down on that last few statements: As your business grew, what were your main culture objectives, and how did you maintain or create that company culture? Did you have any hiring strategies or professional development plans that you leaned into? Tell us more about that.

– Yeah, no, it’s a good, I segued well into your next question. My early days, like, my first job out of college was at Oracle. I was a product manager there and I got very cynical, very fast. I was like this big company, I’m just sitting in meetings all day, well, anyway, I don’t want to name, well, there’s some fun stories there, but my manager at the time had some views about the efficiency and how it could be improved at the organization. 

But that made me, like, there was a time where I said, “Khan Academy is always going to have, is always going to be a startup. It’s going to be a perpetual startup. I don’t want it to ever be a large company because large companies become bureaucratic and people just sit in meetings all day.” And so I had a view of “Let me just hire the smartest people I can and get out of their way and have as few meetings as possible.” That can sometimes be good, but it leads to issues at some point. Smart people, if they’re not aligned, can easily try to pull in different directions. And if you’re not communicating enough, you’re not going to get enough alignment. So over time, I’ve started to realize that it’s very important to, that we are a place where people can bring their full selves to. And because look, you’re spending a large chunk of your life doing work. And so, I try to—Khan Academy is a place where you shouldn’t be embarrassed to say that you’re going to take an hour to go meditate. You should be proud of that. You should even say that as an example. And look, a lot of that comes from me setting an example. It’s one thing to say it. It’s another thing to say, “Hey, I can’t attend that meeting because I’m going to be meditating,” and that sends a signal to other people. “Or I can’t do that evening meeting because I said that I’m going to do this event with my family that night.” So I think it’s very important to put those guardrails and all of that. 

But I think culturally what I take a lot of, what I try to put a lot of energy into is making sure people are aligned. Like, disagreeing is great. Like, let’s disagree while we’re talking about the tactics of something, but we’ve got to make a decision and then we’ve got to commit to that decision, otherwise we’re just never going to go anywhere. And if you can’t truly commit to the decision and then that goes into the, like, this might not be the right place, right? Like, otherwise, you’re just going to be constantly trying to undermine it in passive-aggressive ways. So I think that’s another cultural thing. 

I’ll say another cultural thing that I’ll say, which is, I think, obviously words like DEIB or letters like DEIB are, like, a big deal these days and they always have, and I’ve always been a very big believer in that. But I do believe that sometimes it is viewed as a signal for you are a left-leaning organization, or you say DEIB, but you really mean that you subscribe to these ideas that other people might not subscribe to, which is almost the opposite of DEIB, right? The whole argument behind diversity is that when you have different viewpoints, people who are different than you, now reasonable, and people who aren’t trying to shut each other down, et cetera. But if you have different reasonable viewpoints, that’s going to get your eventual decision to be a better place and people with very different experiences. And I remember a wake-up call for me was we had a senior executive at Khan Academy, this was about five or six years ago, and it was at an offsite, and all of a sudden, and he was an older gentleman and he said, “I was afraid to say this, but now I feel comfortable with y’all enough to say this. I’m an evangelical Christian and I’m a Republican.” And I remember when he said that, like half the team was like, “Wow, you’re so brave for saying that.” And then the other half of the team was saying things like, “Who did this guy vote for? And what’s his view on this and this?” And that was an eye-opener for me. It’s like, we can say DEIB, but we aren’t DEIB if that guy, who was really good at his job, who everyone really liked to work with, was afraid to even say what religion he is. And so what I try to do now is push everyone on DEIB where I say, “That’s not to hire more people that agree with you. That is to hire people who are truly from diverse perspectives that can push us to get to a better place.” So I think I take those words more seriously than a lot of other corporations that do it in a very performative way. I think there’s, most executives, if I’m honest, say I’m not going to get involved. I’m going to hire someone else to do that. And I’m just going to keep nodding and hope for the best versus actually trying to get true DEIB.

– Thank you for that. After hearing the inspiring story of the origin of Khan Academy, our ambitious and idealistic students here have questions for you. If you’re interested in asking a question, please go ahead and step to the mic right there in the aisle and tell us who you are and then go ahead with your question.

– Sal, thank you. Is this on? Probably not. OK, it is. Sal, thank you. My name is Doris. I’m a second year, and I lead our Haas Education Club here, which everyone should join. Aside from that pitch, oh, first off, I grew up hearing your videos, watching your videos, so I’m very familiar with that voice and today, I’m able to put that voice to the face and it’s great. My question for you is what is the largest gap that you see in American education today?

 

– Oh yeah, it’s a big one. I’ll say at least two. I’ll say the big one is, we fundamentally have a seat time based system, especially in high school, but even in college as well, right? In high school, we know the Carnegie units, which is like, you get a Carnegie unit when you sit in a year in math, a Carnegie unit, a year in English, et cetera. And even college, high school graduation requirements and college entrance requirements have stuff like you need to take three years of math. You need to take two years of foreign language. That, in no way, talks about whether you learn the math or learn the foreign language. So I would love to go more to an outcome-based or competency-based system that’s like, you should get to this level of math before graduating from high school. You should get to this level of reading, this level of writing. And if you don’t, you have the opportunity incentive to keep working on it. It’s not like it’s an all-or-nothing type of thing, but if you go there fast, great, you can get there fast and you can work on other things. 

I think college should be the same, the fact that it’s all credit-hour based and that magically, regardless of what you major in, it’s all kind of like a four-year program. Yeah, there’s some arguments behind it from a stage of life point of view. So I would go to a competency-based, a corollary to that is being mastery-based, which is this idea that if students have a gap, a conceptual gap, that they have the opportunity, the incentive to continue to work on it. So if you’ve got a B in computer science, and two years later, you’ve mastered that material, you should be able to do something that allows you to show that you’re now at an A level, your transcript should be able to be upgraded, so to speak. And a correlator to that is, allow students to learn at their own time and pace.

– [Doris] Thank you.

– Hi, my name’s Patty Debenham. I run a center here for Haas students all about social impact. And I’ve been a big fan for a long time. I loved your book and at the end, you painted a terrific vision of a new kind of higher education that doesn’t cost $70,000 a year. I mean, even Berkeley, a public institution, is crazy expensive. I’d love to hear how you’re thinking about that now and how it can be possible that my 10-year-old doesn’t have to pay 70, well, I don’t have to pay $70,000?

– Yes. No, this is something I’ve been thinking a lot about and many of y’all know, I mean, I wrote that book, and then the year after I’m like, it’s one thing to write about a book. It’s a whole other thing to try to implement it. So I did start a school and now schools based on the principles in that book. We have Khan Lab school out down here in Mountain View and Palo Alto. And now there’s this Khan World school that we started with Arizona State University, which is a virtual high school. So the virtual middle and high school, and then Khan Lab school down here is K-12. 

But the big question is: What about higher ed? And there’s a couple of tactics that we’re taking. One is we are actively exploring ways that Khan Academy, mastery on Khan Academy can result in college credit. So one method is if you can make essentially some version of dual enrollment via Khan Academy available to anyone on the planet, and it’s essentially it’s free or near free, and they can get a lot of these first- or second-year classes out of the way; that automatically lowers the cost of college education and actually increases the capacity for more people to get through the physical doors, so to speak. But the really cool thing would be if—and I don’t care if I’m involved—but someone, and there’s some universities, I think, that are already touching on that. There’s, like, Waterloo in Canada, which many of y’all know is an excellent, one of the world’s best engineering schools. Kids graduate from there, not with debt, but with savings because they use the co-op program so effectively, internships. And there’s another advantage where, while the Stanford and the Berkeley and the MIT kids are in classes in the fall and the spring, the Waterloo kids are getting, they get a monopoly in all the internships at all of the places, and they’re getting paid. And so that’s why not only are they getting better experience, they’re more employable. So I think a model like that would be really interesting. I would love to see it in the U.S. I know there’s a lot of talk these days about downtown San Francisco having emptied out. I’ve whispered to a few folks, “Hey, someone should start a university there, but make it so it’s free and not free through philanthropy.” Maybe you need some philanthropy to get it going, but in the long run, it’s free because the students are able to do a lot of real-world work that can be used to both pay the university and pay the students. So yeah, we’ll see. We’ll see. Yeah, your 10-year-old, I have about eight years to work on that. We’ll see what happens.

– Thanks for taking the time, Sal. My name is Asif. And a subject that talks about that learning to learn and critical thinking that you mention a lot is philosophy and looking at some of your books, maybe you’re a fan as well, but academic philosophy is famously dull, whereas the practical impacts of a philosophy educated population society is invaluable. So I’d love to get your thoughts on philosophy in the education system and maybe if you’re incorporating it into Khan World School or Labs.

– Yeah, so we definitely incorporate, like, when I think about what a great education looks like, I think you definitely should have Socratic dialogue about things like philosophy. I mean, there’s other types of things that you can get into really good, thoughtful debates and discussions about, but philosophy’s definitely like half of all the discussions that you could easily have. And at Khan World School, Socratic seminar is actually the anchor point for the whole school. And we’ve partnered with Steve Levitt’s group at the University of Chicago to create a whole list of topics. And half of them are literally philosophical, but they’re real-world philosophical to make it not just abstract. So there’s, like, literally a debate for middle school and high school students on things like should we leverage CRISPR to modify the human genome? Go. And all sorts of philosophical debates start to emerge from that. Will AI be a net positive or negative for humanity? Is GDP the best way to measure progress? You have to learn economics and history and math, but there’s a lot of philosophy in that. So yes, I’m a big fan of it. We’re definitely trying to, implementing the schools we’re doing. 

The AI that we just, Khanmigo, which we built, we partnered with OpenAI over the last year. We launched with GPT-4 several months ago. One of the things that you can get into debates with the AI about frankly all of these topics and more, so that’s one way to hopefully scale it out a little bit more. And then we do have some content already on, and this is more academic philosophy. We’ve partnered with an organization, so that content is on Khan Academy. But yeah, I definitely think it is important. It is one of those things that I think you could have it in almost any subject. And I think that’s actually probably the way to make it, you tie it to real-world issues that is happening every day on the news. Like, reasonable people aren’t getting into debates about these things. Those are great fodder for philosophy.

– [Asif] Thank you.

– Hi, first off, a huge thank you. I was a public school teacher in New York City and Khan Academy liberated my classroom to be a standard space, like collaborative problem-solving space.

– [Sal] Oh, that’s good to hear. That’s the dream.

– My students in Brownsboro were, like, outperforming Westchester white, like, rich students because of work like yours.

– [Sal] If you have any information, I’m always looking of, anyway, but yeah, go.

– I’m looking for an internship this summer. But people looked at, and what made Khan different from me is that you trusted me as an educator to understand data and you gave it to me so I could use it. And you trusted my students to have the data too. That was better than ST, better than I learned, better than anything else. But people looked at me as an educator as unique because I knew how to use the data. My big fear going into AI and ChatGPT is how do we support and build a teacher force that is able to use that technology to liberate their classrooms?

– Yeah, that’s a great question. And what I’m hopeful about, obviously, it’s still very early days, we’re building this right now with all of our Khanmigo stuff. We realize it’s great; Khanmigo can act as a tutor, but it’s even more powerful that it can act as a teaching assistant. And some of that is to help with things like lesson plans and rubrics and give a first-pass grade and writing progress reports, which as you know, as a former teacher, take up a lot of your time.

– [Audience Member] A lot of time.

– So that’s good. But I also think that generative AI means the end of these, like, kind of spreadsheet looking dashboards that you’re familiar with because now it’s like you’re having an analyst. And we already have implemented some aspects of this where a teacher, instead of seeing the dashboard, right, and then having not every teacher can do what you did. And like looking at the dashboard and figuring out which kids could use what, they can just talk to the AI and say, “Hey, so what’s going on?” And the AI can say, “Well, for the most part, the students are doing all right. Here’s five kids who are, for the most part, struggling with these three concepts. Here’s an idea for a mini lesson that you could do with these three kids while the other, or these five kids while the other 20 or 25 students work at their own. Or if I were to group, or here’s an idea for a lesson, and by the way, I would group the kids this way for this reason. This third of the class is really struggling, this third is OK, this third is ready for some really enrichment. They’re getting bored. Let’s give them something else.” This isn’t science fiction anymore. And then if you want the data and the AI will say, “Oh, and by the way, if you don’t believe me, click here for the spreadsheet.” But I think that’s going to make it much more accessible to all teachers. You’re going to be able to text with the dashboard, so to speak, and say, “What should I do? What insights are here? What do you recommend I do next with the students?”

– [Audience Member] Thank you.

– Hey, Sal, my name’s Alex. Following up on that a little bit on the Khan World Academy, I was listening to the podcast with Steve Levitt, and initially I was skeptical, but then I heard the student talking about her experience and it started making a lot more sense. And so I was more curious if you can go in on, like, how you continue to design that curriculum and also what your vision is to scale that up so that more students can have an experience like that?

– Yeah, I mean the beauty of Khan World School and ASU, we did it ’cause ASU already runs ASU prep, which already has 40,000 students, so they know how to scale. And they already have a charter in the state of Arizona, which means ASU prep. And now Khan World School is free to any student in the state of Arizona. And hopefully, we can get charters in other states as well. So that free, world-class education for anyone, anywhere can be true beyond Arizona ’cause this is a full school. 

 A lot of the principles are what we’ve learned over 10 years running the physical Khan Lab School. And also what I wrote 10, 11 years ago in The One World Schoolhouse, students learning at their own pace, having more agency autonomy, the adults, the teachers, the guides, whatever you want to call them, their time focused more on unblocking students, motivating students, advising students, driving Socratic seminars versus lecture, et cetera, et cetera. And with a virtual environment, you’re not bound by time or space in the same way. And we also wanted to show that you could do virtual much better than people did it in the pandemic where it was soul-crushing. And so, we anchor it with a Socratic dialogue. Kids get an hour or two of synchronous community-building discussion advisory every day, but then they have a lot of autonomy to do other things. 

And to your point, Steve Levitt, who everyone knows here from Freakonomics, famous economist, he’s not a sucker for bad data. But as far as we can tell, these kids are not learning 20, 30% faster. They’re learning two x, three x faster, and they’re enjoying it. And there’s stuff we’re not even measuring like the seminar ’cause there aren’t any standardized tests for how good someone is at seminar. But we feel confident that these are well-rounded students that are going to really thrive later on.

– [Alex] Thank you.

– Thanks, Sal. My name is Vinit, and I’m in the MBA program. So recently, I started getting excited and passionate about using technology and AI to perhaps achieve, like, educational parity. And so I was at this San Francisco tech meetup, and I started going around and just started pitching this idea to some folks. Look, we don’t need to teach children or kids how to use computers or even learn how to code anymore. Like, AI can generate code. We need to just provide them more creative ways to play with code or sort of just give them, like, the fundamental building blocks like Legos using AI and they can just sort of create apps on their own and feel empowered about themselves. And what ended up happening throughout the course of the evening was when I talked to the investor community, like the VCs and folks, they would just look at me like, no, no, like EdTech’s a very, very difficult business model. You’re either going to have to sell to the parents or schools, which is no joke. And then there happened to be folks there that were parents and many of them were technologists famously creating apps for adults. But then when it comes to their own kids, they would say like, “No, I just want my kids to play outside, be in the nature. Like, I personally believe that technology hasn’t really given us anything meaningful in form of, yeah, education other than Khan Academy, of course.” But I mean, it is valid concern giving tha the rates of stress, anxiety and focus attention for teenagers or preteens especially has gone up quite a lot recently. So, yeah. I don’t really have a question. I guess I would wonder how I really want to remain optimistic, and you’re one of the few people that I see that are optimistic still in this space. So when you’re not speaking to a room of full of people that have already bought into this idea, I guess, how do you convince those folks, whether it’s parents or investors or whoever it is?

– Yeah, well, I think a bunch of stuff you said resonates with, I think the VCs you’re talking to are right. EDTech is a hard thing especially if you’re trying to get VC-like returns. It’s a very hard thing. And if you want to get VC-like returns, you probably will have to sacrifice some of, maybe some of your principles around like, OK, let’s make this a thing for rich kids, and maybe it helps them cheat a little bit or something like that. Honestly, there are multi-billion dollar publicly traded EDTech companies, that is their business model. I won’t name names. So it is hard ’cause it’s, and it’s even harder if you’re trying to introduce a new paradigm around, in your case, engineering/coding. 

My answer to the screen time is, it’s not about screen time is neutral. There’s some very good uses of screen time. Obviously, if a student is writing a paper, coding, doing some graphical art, I argue Khan Academy. But even that needs to be within reason. For my own children, I still want them to go outside, play with their friends. If someone visits Khan World School or especially Khan Lab School, if they visit, you’re going to see kids not on a computer all day. They do probably use a computer more than your average school, but they’re also getting more social interaction than your average school because they’re not sitting in lectures all day, either. So Khan Lab school kids are constantly working on projects and collaborating and walking around the space. They don’t have to sit in one chair all day. So I’m a big believer in that. So my advice would be, you might be trying to tackle too many degrees away from where people’s comfort zone is right now, but maybe there’s a way to take that same tool and show that you could use it to create, like, enterprise apps or things like that, and college students could use it to start companies. That could probably get, I could imagine, VCs wanting that even to start their own incubator. They create an app like that, and people could come in and just write apps really, really, really fast and get product market fit tests really, really fast. That could be an interesting model. 

But maybe there’s other things if you find the right partner with Lego or something, I don’t know, it’s not easy to pull off. Who knows? I don’t want to discourage you either ’cause what I was doing in 2008 or 2009, people found far, far more ridiculous than what you are doing. So people thought not-for-profit, YouTube videos, personalized learning, all of these stuff, was sounded ridiculous.

– [Vinit] Thank you.

– Well sadly, we are out of time. Thank you for the time that you’ve spent with us today, Sal.

– [Sal] Thanks for having me.

– Thanks to our moderators, Anu and Mrudula. Thanks to all of you for joining us. This has been a wonderful and inspiring hour. I hope you’ll join us again for future Dean Speaker Series. Have a wonderful day.

Putting her story in the Haas story: 125th anniversary celebration honors founding donor Cora J. Flood

Exactly 125 years after Cora Jane Flood announced the gift that launched UC Berkeley’s College of Commerce, Haas students and staff packed the school’s sunny courtyard to celebrate this milestone.

Haas is not only the second-oldest business school in the country and the first at a public university. “Haas is the only leading business school to be founded by a woman, Cora Jane Flood, who was known as Jennie,” said Professor and Acting Dean Don Moore. “Haas is also the first top business school to be led by two women deans—Laura Tyson and Ann Harrison.”

Dean Ann Harrison unveiled a new plaque honoring Flood. “Now, students, staff, faculty, alumni, and visitors can learn her name and be inspired by her far-sighted philanthropy,” said Harrison, who is on sabbatical this fall but returned for the event.

Flood, the daughter of silver baron James Clair Flood, gave a gift of securities and real estate with an estimated value of $463,133.39, constituting the largest private gift received by the then-30-year-old university. According to the book “Business at Berkeley: The History of the Haas School of Business” by Sandra Epstein, “By 2013, the gift’s value had grown to over $25 million, comprising one of the largest endowments on the Berkeley campus.”

The courtyard event was part of an ongoing celebration this fall of Haas’s 125th anniversary. See photo highlights and check out the video and transcript below, and read more about how Haas has been reimagining business for more than a century in a special issue of Berkeley Haas magazine.

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Full event event video:

Transcript

Erika Walker, Senior Assistant Dean for Instruction

Good afternoon. I am Erika Walker, Senior Assistant Dean for Instruction at Berkeley Haas.

As we gather for today’s ceremony, we want to acknowledge that UC Berkeley sits on the territory of xučyun, the ancestral and unceded land of the Chochenyo speaking Ohlone people, the successors of the sovereign Verona Band of Alameda County. This land was and continues to be of great importance to the Muwekma Ohlone Tribe and other familial descendants of the Verona Band.

We recognize that every member of the Berkeley community has benefitted, and continues to benefit, from the use and occupation of this land since the institution’s founding in 1868. Consistent with our values of community, inclusion and diversity, we have a responsibility to acknowledge and make visible the university’s relationship to Native peoples. As members of the Berkeley community, it is vitally important that we not only recognize the history of the land on which we stand, but also, we recognize that the Muwekma Ohlone people are alive and flourishing members of the Berkeley and broader Bay Area communities today.

I would now like to welcome Professor and Acting Dean Don Moore to the podium.

Professor Don Moore, Acting Dean and Associate Dean for Academic Affairs 

Thank you, Erika. And welcome, everyone! Thank you so much for joining us this afternoon. What an honor it is to serve as the acting dean of this exceptional business school while Dean Harrison is on sabbatical. I hope you are all having a great start to the semester so far.

This year, we look back on 125 years of reimagining business at Haas, all the way to 1898, the year of our founding as the second-oldest business school in the United States.

In 1898, we might have been listening to “The Entertainer” on our gramophones, watching the short film The Astronomer’s Dream on the kinetoscope, or trying on a new bowler hat. California had recently transitioned from Mexico to the United States. Berkeley had a population of 5,000. The bicycling craze was giving women a new avenue of independence. That year, the Golden Bears beat Stanford at the Big Game, 22-0!!

This was also a pivotal time for business, which was coming into its own as a profession on par with law and medicine. Smart management was sorely needed in an era of wild economic growth, robber barons and corruption, fortunes made and lost in immense new enterprises. These new businesses needed to make sense of thousands of employees, strategic mergers, and ballooning divisions.

This was also a pivotal time for business, which was coming into its own as a profession on par with law and medicine. Smart management was sorely needed in an era of wild economic growth, robber barons and corruption, fortunes made and lost in immense new enterprises. These new businesses needed to make sense of thousands of employees, strategic mergers, and ballooning divisions. —Don Moore

Where better than a great university in the pioneering West to order and transform the way we worked? Good sense was not enough; mass scale was a necessity; and only the skilled and sophisticated would thrive. Learning the systems and theories of professional management was a logical—and necessary—next step. A new institution would need to draw scholars from the rest of the world to Berkeley, and produce brilliant minds of its own.

And so it did. The College of Commerce, which we now know as Haas, was founded with just three students. Now we have over 2,500 students in six programs, more than 300 ladder and professional faculty members, and more than 43,000 alumni in 81 countries around the world.

We are also the first business school founded at a public university. Haas is the only leading business school to be founded by a woman, Cora Jane Flood, who was known as Jennie. Haas is the first top business school to be led by two women deans—Laura Tyson and Ann Harrison, respectively.

And we are the first school built entirely with private donations on the UC Berkeley campus. We are incredibly grateful to all of the donors who have supported our school.

Of course, the Berkeley Haas legacy includes more than a century of stellar researchers and teachers, including two Nobel laureates. We are fortunate to be able to attract exceptional staff. And we are more than the sum of our parts. My colleague and fellow acting dean Jenny Chatman will say more about what really makes us exceptional. 

Professor Jennifer Chatman, Acting Dean and Associate Dean for Academic Affairs  

Thank you so much, Don. I am honored to be serving the school with you this fall.

As a scholar of culture, I want to note that Berkeley Haas stands out in yet another way: in being the preeminent mission-driven business school, as Poets & Quants has described us.

The Haas School’s values stretch back a long way. The man for whom our school is named, Walter A. Haas, Sr., graduated from the College of Commerce in 1910. He held forward-looking views on social welfare and public affairs that were influenced by the school’s first woman instructor, Jessica Peixotto. That influence led him to grow Levi Strauss & Co. into one of the country’s largest socially responsible businesses.

All of these priorities grew into our four Defining Leadership Principles, which I know you know well: Question the Status Quo; Confidence Without Attitude; Students Always; and Beyond Yourself. To put these principles into action in our three core areas: innovation and entrepreneurship, sustainability, and inclusion.

Of course, they are all inextricably linked. Berkeley Haas boasts a world-class team for diversity, inclusion, justice, and belonging. The school has built and continues to build remarkable access, while simultaneously equipping all of us to be more inclusive leaders. Sustainability and entrepreneurship are always top of mind at Haas. And thanks to our location in Berkeley—the epicenter of innovation—we have been and continue to be the heart of what’s next.

Finally, I am so pleased that several members of the chancellor’s cabinet are joining us today. Berkeley Haas’ deep ties with Cal are precious, and we don’t take them for granted.

Executive Vice Chancellor and Provost Ben Hermalin has a special connection to Berkeley. He has held a significant number of roles at Haas: as professor, associate dean, interim dean, and winner of multiple teaching awards. Ben, thank you for being with us today.

Ben Hermalin, Executive Vice Chancellor and Provost, UC Berkeley:

Thank you, Jenny!

It is true that Berkeley Haas is dear to my heart. But it is also a treasured and essential star in the Cal constellation. This is a vibrant, visionary school that provides students, faculty, staff, and alumni much of the meaning that I believe gives us purpose as individuals and as institutions. One way the school does that is by attracting award-winning scholars, who illuminate their classrooms and advance the world’s knowledge. Berkeley Haas strives to teach and shape business in ways that are valuable to a broad spectrum of people, in profound and material ways. We try to go beyond in deed and not just in word. We always have a lot more work to do—to be as inclusive and just; bold and confident; smart and ethical as we can. That is the best way for us all to stay true to those who built this institution and to our counterparts in the future. Congratulations on this momentous anniversary!

Don Moore:

Thank you, Ben.

This occasion is so special to the Berkeley Haas community that Dean Ann Harrison has returned today (from her sabbatical this fall) to share it with us. Ann, please join me onstage.

Dean Ann Harrison:

Thank you so much, Don! What a beautiful day, as it so often is in Berkeley. I am thrilled to be here with you all. I do feel as though I am reaching across more than a century and saying thank you to Cora Jane “Jennie” Flood. I am grateful for her confidence, generosity, and foresight, and believe she would have found today to be a powerful testament to her intention. We are so fortunate that there are Flood family members here with us today celebrating this occasion.

In her declaration to the Regents of the University of California on September 13th, 1898, Jennie Flood wrote of her bestowal that it “shall be devoted to some branch of commercial education.” The bold idea to create a College of Commerce had been proposed by Berkeley graduate and entrepreneur Arthur Rodgers in 1883. Jennie Flood turned Rodgers’s vision into reality.

125 years of groundbreaking education is a remarkable achievement for any business school, especially given the immense changes the world has undergone. Having reimagined business, we are well positioned to lead in a world of change. We look back with pride, but we move forward to make an impact for future generations. Keeping our eye on innovation and entrepreneurship, sustainability, and inclusion is more important than ever.

It is high time that we make Jennie Flood a permanent part of our campus. I am honored to unveil this plaque, which commemorates our founder and allows us to put a name—and a face—to the origins of Berkeley Haas. Now, students, staff, faculty, alumni, and visitors can learn her name and be inspired by her far-sighted philanthropy. Her father, James Clair Flood, was the son of immigrants who took an eighth-grade education and an entrepreneurial spirit to become one of the “Silver Kings” of Gilded Age San Francisco and a UC Regent. Jennie often accompanied him to his business meetings, and I would go so far as to say she was an informal student of business herself!

And now, we’ll reveal our new plaque in her honor.

What a beautiful addition to our campus and to our continuing story. Berkeley Haas has staying power. We’re not going anywhere—we’re just getting better.

Please come over during the reception and check it out!

Don Moore:

Thank you so much, Ann. To tie together the whole web of Haas-tory from our esteemed founder to our current dean, I am happy to report that former dean Rich Lyons is here with us to celebrate. He is such an important part of our legacy, both philosophically and musically. To that end, he has brought his guitar to send us out snapping our fingers. Take it away, Rich!

Rich Lyons, Associate Vice Chancellor for Innovation and Entrepreneurship

(Lyons performs a special Haas-themed version of “The Bare Necessities,” singing and playing acoustic guitar.)

Don Moore:

A perfect note to end on. Thank you so much to everyone for joining us today. Please enjoy some refreshments and bask in this beautiful day and community. Here’s to the world-changing 125 years behind us, and to all the triumphs ahead.

Go Bears!

Haas welcomes hundreds of new undergrad, MBA, PhD students to campus

Berkeley Haas welcomed an accomplished group of nearly 700 new full-time MBA, undergraduate, and PhD students to campus, kicking off the start of the fall 2023 semester. (The new evening & weekend and executive MBA classes arrived on campus earlier this summer.)

Full-time MBA program

A total of 244 new full-time MBA students kicked off five days of Week Zero orientation last Monday. Orientation included sessions on academic life at Haas, diversity, equity, inclusion, justice and belonging (DEIJB), team building, and career planning.

Wendy Guild, the new assistant dean of MBA programs at Haas, welcomed the class. “I want to celebrate the fact that you are here,” she said, noting that 2023 is a special year for Haas, marking the school’s 125th anniversary. “We have staying power,” she said. “We’re not going anywhere… We’re just getting better.”

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A total of 244 new full-time MBA students in the Class of 2025 arrived last week for Week Zero orientation. Wendy Guild, assistant dean of MBA programs, welcomed the group, noting that Haas is celebrating a special 125th anniversary this year.
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The new MBA class is comprised of 41% women; 20% are first-gen.
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Prof. Don Moore, acting Haas dean, urged students to reach out to each other and take advantage of the resources at Haas, especially when the curriculum gets tough. "All of us want to see you succeed," he said.
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Introducing the Gold Cohort!
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Introducing the Axe cohort!
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Introducing the Oski cohort!
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Introducing the Blue cohort!
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The Haas Undergraduate Program team welcomed 421 new students Monday. A total of 3,306 students applied to the program.
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The undergraduate class includes103 transfer students and 240 continuing UC Berkeley students.
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New students met up in the Haas courtyard throughout orientation.
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All photos by Jim Block and Noah Berger.

New students participated in a whirlwind of orientation activities—from a scavenger hunt to an ice cream social to cleanup work at a local nonprofit that supports people who are homeless.

The MBA students are an accomplished group, with an average of nearly six years of work experience, with 20% coming the tech sector and 24% from consulting.

Remy Freire, MBA 25, was a consultant at Bain & Company in Washington D.C. before coming to Haas.

“I’m interested in climate tech and renewable energy and I thought that the MBA would be a chance to take classes and do an internship in that area, and get some hands-on experience. A lot of folks are interested in this at Haas and I’ll be meeting people with similar interests to mine.”

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Imogen O’Connor, MBA 25

The class boasts 41% women and is richly international, including students from 39 countries.

Imogen O’Connor, MBA 26, worked as an analytical manager with the National Health Service (NHS) in the UK before she came to Haas.

“What really prompted me to do an MBA was around change management and leadership because I was coming up against a lot of barriers in the NHS,”  she said. “I really care about health care and just helping people. I think I need to develop certain skills in order to do that properly.”

The class has an average collective GMAT score of 732, and GREs of 163 quant and 161 verbal, and an average GPA of 3.63.

Eric Askins, director of MBA admissions, told the students to expect to learn from peers who come from a variety of backgrounds and experiences. Notably, 20% of the students in this class are the first generation of college students in their families. Fourteen of the new students are pursuing a dual MPA/MPH (public health) degree; nine are enrolled in the MBA/MEng (engineering) program.

Orientation week alumni speaker Lo Toney, MBA 97, founding managing partner at Plexo Capital, shared his wisdom with the class, encouraging students to explore and take advantage of the breadth and depth of the UC Berkeley and Haas campus resources, focus on academics in the first quarter in particular, and reach out to alumni to build a network.

Undergraduate program

The entering undergraduate class is 421 students strong this year.  The new class includes 103 transfer students and 240 continuing students, as well as new undergraduates students enrolled in special undergrad programs including The Global Management Program (GMP), The Robinson Life Science, Business, and Entrepreneurship Program (LSBE) (25 students), and the Management Entrepreneurship and Technology (M.E.T).

Acting Dean and Professor Don Moore, whose research covers leadership and confidence in business and beyond, welcomed the students.

“You’re joining a community of innovators, renowned researchers, entrepreneurs, and movers and shakers who have made a profound impacts on business and on society,” he said.

“You’re joining a community of innovators, renowned researchers,  entrepreneurs, and movers and shakers who have made a profound impacts on business and on society.” – Acting Dean Don Moore

Moore said the long list of leaders who embody the Berkeley Haas Defining Leadership Principles (Question the Status Quo, Confidence Without Attitude, Students Always and Beyond Yourself) includes professional golfer Collin Morikawa, BS 19, who won the 2020 PGA Championship; Nabeela Syed, BS 21, the first Muslim Indian-American and the youngest woman to serve in the Illinois House of Representatives; and gaming entrepreneur Kevin Chou, BS 02, who with his wife,  Dr. Connie Chen, provided the largest-ever personal gift to UC Berkeley by an alumni under the age of 40 to help fund Chou Hall.

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Undergraduate students mingle in the Haas courtyard. Photo: Noah Berger

Emma Hayes Daftary, assistant dean of the undergraduate program, told the students that “the DLPs will challenge you to shift from what you, as an individual, can achieve, to what we, as a community, can accomplish.”

“We are living in a time of tremendous global transition, and within this time of upheaval and transition comes an urgent call for informed, collaborative, effective leaders,” she said. “There are urgent issues that are facing us—urgent issues that will require extraordinary leadership to develop and execute solutions to solve them.”

PhD program

The PhD program welcomed its largest-ever cohort of 19 new students from around the world—including Russia, China, Ethiopia, India, South Korea, Nigeria, Portugal, Canada, and Germany.

New students include Abdulmuttolib (Abdul) Salako, Ziyi Liu, Sean Chen, Sarah Danner,  Hanna Yu, Sara Shemali, Jordan Mickens, Nikita (Nick) Akimov, Wenxiao Yang, Srikanth Janjirala, Yutao Chen, Maggie Ye, Skyler Chen, David Gravanita , William Zhang, Zi Yang Chen, Nathan Godin, Nick Otis, and Fikremariam (Fikre) Gedefaw.

View PhD student profiles here.

new Phd students at Haas in a group photo in Chou Hall
(From back row left-right) Abdulmuttolib Salako, Ziyi Liu, Sean Chen, Sarah Danner,  Hanna Yu, Sara Shemali, Jordan Mickens, Nikita (Nick) Akimov, Wenxiao Yang, Srikanth Janjirala, Yutao Chen, Maggie Ye, Skyler Chen, David Gravanita , William Zhang, Zi Yang Chen, and Nathan Godin. Missing from photo: Nick Otis, and Fikremariam (Fikre) Gedefaw. Photo: Jim Block

Berkeley M.E.T. launches a pre-collegiate summer camp

A group of high school students with arms around each other in front of a Berkeley MET sign
The M.E.T.ia summer program is for rising high school juniors and seniors with an aptitude for math and science. (Photo by Adam Lau/Berkeley Engineering)

The UC Berkeley M.E.T. (Management Entrepreneurship and Technology) Program this summer launched a pre-collegiate program that brings high school students to campus to explore how engineering and business intersect.

Fifty rising juniors and seniors in the new M.E.T. Innovation Academy (M.E.T.ia) took residence on the Berkeley campus for two weeks in July for the program, which is designed to provide real-world experience in solving business and technology challenges.

The program is designed to provide real-world experience in solving business and technology challenges.

Students visited world-renowned corporations and organizations, interacted with successful entrepreneurs from the heart of Silicon Valley, and met Berkeley M.E.T. student entrepreneurs. M.E.T. is a dual degree program launched in 2017 by the Haas School of Business and the College of Engineering at UC Berkeley. The program, designed for students with a strong aptitude for math and science, was held July 17-28.

“As a school we are mission-driven to change society for the better—and the Innovation Academy gives us a chance to expose a diverse group of students to new ideas that could potentially change the world,” said Saikat Chaudhuri, faculty director of the undergraduate M.E.T. program. 

Students in the M.E.T.ia summer program pitched during a Shark Tank style session at UC Berkeley’s Blum Hall over the summer. (Photo by Adam Lau/Berkeley Engineering)

The group participated in interactive workshops focused on topics such as how to think like an entrepreneur; self-driving and energy-saving cars; developing business plans and resumes; accessing venture capital, and launching startups. 

The students also headed off campus for visits to Berkeley-based Ambi Robotics, an AI-powered robotics company with UC Berkeley roots, and to San Francisco-based audiovisual company Dolby. 

The program wrapped up with a Shark Tank-style pitch session, with student teams presenting their capstone projects to a panel of judges. Judges included serial entrepreneur Nilesh Bhandari; Sibyl Chen, general manager at UC Berkeley SkyDeck; and Darren Cooke, executive director of the UC Berkeley Life Sciences Entrepreneurship Center.

Sahil Puranik, a rising high school senior from Fremont, California, pitched an idea to turn food waste into energy.  Pitching during the program helped boost his confidence in presenting and collaborating, he said. “Before, I never really had the confidence to talk to people I didn’t know,” he said. “But after this program, I found it a lot easier to just reach out to people who have shared interests.”

M.E.T.ai drew 50 students who lived on campus for two weeks while participating in the new program. (Photo by Adam Lau/Berkeley Engineering)

“Not only has this program shown me the importance of learning from others, but also about passing down what I have learned from my experiences—skills and lessons that I hope to teach to others,” student Jay Ananth added.

Another program highlight was an IPO simulation led by Michael Grimes, BS 87, EECS,  the head of Global Technology Investment Banking at Morgan Stanley and the M.E.T. program’s founder. The session taught students about how an IPO works in the real world. “It was fascinating to see the different forces manipulate the price, but all within a set of rules,” M.E.T.ia student Kaelen Cazzell said.

Due to strong interest in the program, next year’s M.E.T. class size will increase to 70. Chaudhuri said he looks forward to what the students will accomplish.

“There are so many existential challenges right now,” Chaudhuri said. “There’s climate change, geopolitical tensions, transportation that needs to be disrupted, and healthcare that isn’t covering everybody. I think there are incredible opportunities for students to affect change.”

Donors fuel three record years of Berkeley Haas fundraising

Haas campus at sunset with the Campanile
Haas at sunset. Photo: Noah Berger

Building on three years of fundraising momentum, Berkeley Haas raised more than $56 million for the school in fiscal 2023.

Under the leadership of Dean Ann Harrison, the Berkeley Haas Development and Alumni Relations team (DAR) team reported a record three-year period in the school’s history, raising more than $171 million from alumni, faculty, staff, students, parents, and friends.

“The Haas community continues to come together to provide incredible support to the school,” Harrison said. “These generous gifts will be used to help us continue to expand our faculty, enrich our students, and empower our alumni as we work for a more sustainable and equitable future. We are truly grateful.”

The total amount raised in 2023 includes $4.1 million from 3,554 donors to the Haas Fund, which is used to retain faculty and provide student scholarships, as well as to support alumni programs and career services.

Haas also achieved its UC Berkeley-wide Light the Way campaign goal of raising $400 million in July, six months before the close. Launched in 2014, The Light the Way campaign is a historic effort to raise $6 billion. The campaign ends on December 31, 2023.

More notable highlights this year for Haas include:

  • Raising four gifts of more than $5 million in a single year, a first in the school’s history.
  • Launching an HBCU MBA Fellowship with founding gifts from five alumni. The first-of-its-kind endowment will provide tuition support to MBA students who have attended a Historically Black College or University.
  • Funding a new Berkeley Haas entrepreneurship hub, which is slated to open in fall 2024. 
  • Posting more than $500,000 in challenge matches during an epic Big Give one-day online fundraiser.

Alumni engagement highlights from the past year:  

Alumni volunteers, advisors, mentors, and speakers again stepped forward to serve the school in the past year, in efforts including:

  • Serving as speakers at events and in classrooms, and as case competition judges throughout the year. 
  • Sharing their stories on 27 episodes of the OneHaas podcast (with a total of 21,622 downloads)
  • Advising students in all of our degree programs with career and admissions support.
  • Helping Haas organize and host its second annual virtual Alumni Diversity Symposium
  • Sourcing and sharing 619 job posts through the alumni—powered Hire Haas campaign.

Berkeley Haas also returned to a full slate of alumni events this year, hosting three special regional events with Dean Ann Harrison in London, Los Angeles, and New York. Over 2,400 Haas community members participated in our signature events, with more than 1,200 returning for the annual MBA Reunion Weekend and Alumni Conference.

“We are incredibly grateful to all of our generous donors and alumni volunteers who continue to support our short- and long-term vision as a top business school,” Assistant Dean and Chief Development Officer Howie Avery said.

For more information about investing in the school’s priorities and/or becoming a volunteer please contact Howie Avery or the Development and Alumni Relations office.