Stanford GSB MBA, MSx, PhD Class of 2025 Graduation Ceremony

Stanford Graduate School of Business Graduation Ceremony 2025 Summary

Key Concepts:

• Fan of Outcomes: A range of future possibilities for stock prices, economic growth, inflation, or investment returns.
• Data vs. Intuition: The balance between analytical data and experience-based intuition in decision-making.
• Idealism vs. Practicality: The relationship between big dreams and small, tangible steps to achieve them.
• Dharma: A Sanskrit concept emphasizing fulfillment from doing one's duty rather than seeking rewards.
• Force Multipliers: People who challenge your thinking and help you become a better person.

Welcome and Introduction

The ceremony commemorates the 100th anniversary of the Stanford Graduate School of Business (GSB). The interim dean recognizes the faculty, staff, families, and friends for their support. Early graduates are highlighted, including Charles Overfelt and Melvin Sanguinetti (MBA class of 1927), Elizabeth Walls Breed (class of 1931), Ping Kale Yung (class of 1931), and Ben Eastman (NBA 1935), showcasing the diverse paths taken by GSB alumni. The GSB has always attracted pioneers who create new knowledge, industries, and business models. Core attributes of GSB graduates include work ethic, resilience, leadership, and adaptability to change.

The Class of 2025

The class of 2025 entered in 2023, comprising students from 55 countries with diverse backgrounds in government, technology, education, and investment management. They made a conscious decision to pause their careers and pursue an MBA. The world has changed significantly since they started, with the rise of AI, political shifts, and fundamental questions about higher education and the value of an MBA.

Dean's Address: Financial Modeling and Decision-Making

The Dean shares key concepts from his financial modeling class.

• Value is about future decisions: Past achievements are less important than future actions.
• Uncertainty and the Fan of Outcomes: Financial models rely on assumptions that are inherently flawed. Uncertainty creates a "fan of outcomes," representing a range of future possibilities.
• Navigating the Fan: The goal is not to predict the future but to prepare for a range of possibilities. Confidence comes from skills, frameworks, and insights gained from peers.
• Reoptimizing and Pivoting: The ability to adapt to new information is crucial for creating value.
• Building Your Model: The future is yours to model, incorporating both controllable (values, character, integrity) and uncontrollable (AI, tariffs, political change) factors.

Commencement Speakers: Asha Merti and Rishi Sunak (Class of 2006)

Asha Merti and Rishi Sunak, a GSB couple from the class of 2006, deliver the commencement speech. They share three key lessons:

1. The False Comfort of Data Alone (Rishi's Lesson from Asha):
   • Rishi, a "numbers guy," initially relied heavily on data analysis.
   • Asha encouraged him to trust his intuition and experience.
   • Example: In December 2021, as Chancellor of the Exchequer, Rishi used his understanding of data to question the need for another national lockdown due to the Omicron variant. He then used his intuition to argue against the lockdown.
   • "As a leader, the only decisions that reach your desk are the difficult 50/50 ones."
   • "If you want to lead, it's not a question of data or intuition. You've got to get comfortable with both."
2. The Relationship Between Big Idealistic Dreams and Small Practical Steps (Asha's Lesson from Rishi):
   • Asha, driven by a desire for widespread change, initially held "diehard idealism."
   • Rishi emphasized the importance of practical steps to achieve transformational change.
   • Example: Asha founded "Lessons at 10" and the "Richmond Project" to promote education and financial literacy.
   • "Idealism is inspiring, but if it's untethered from reality, there is no traction."
   • "Being practical is a power move. It's not the enemy of idealism...it's running partner."
3. The Importance of Worrying Far Less About the Outcome (Dharma - A Shared Lesson):
   • Dharma: Finding fulfillment in doing one's duty rather than seeking rewards.
   • Successes and failures are part of leadership.
   • Example: Rishi's failure to become Prime Minister in 2022 led to more time with his family. When the opportunity arose again, Asha reminded him of his duty to serve the country.
   • "Dharma isn't just relevant in public service. It means that you'll have the resilience and clarity you need to overcome whatever's thrown at you without losing your way or being submerged by ego."

Concluding Remarks

The speakers encourage the graduates to surround themselves with "force multipliers" who challenge their thinking. They emphasize the importance of maintaining relationships and staying open to different perspectives. They express hope that GSB graduates will continue to be global leaders.

Recognition of Graduates

• PhD Graduates: The doctoral class of 2025 is recognized, with their dissertation advisors hooding them. Diane Lei reads their names and dissertation topics, highlighting their contributions to various fields.
• Master of Arts and Business Research Graduates: The recipients of the Master of Arts and Business Research are acknowledged for their expertise.
• MSX Graduates: The Master of Science in Management (MSX) graduates are presented, with the top 10% designated as Robert Joss Scholars. Dwas Neil Ponyi receives the George GC Parker Prize.
• MBA Graduates: The MBA class of 2025 is presented. The top 10% are designated as R.J. Miller Scholars. Noel Telju receives the Ernest C. Arbuckle Award, and Isabella Heg receives the Alexander A. Robichek Student Achievement Award in Finance. Ian McCrae is named the Henry Ford II Scholar.

Conclusion

The ceremony concludes with a final round of applause for the GSB class of 2025. Graduates are encouraged to stay involved with the school and contribute to future classes. A reception is held at the Knight Management Center.