The Experience

Key Concepts

• Creating Something from Nothing: A course at Stanford GSB Executive Education focusing on the creative process.
• Three Things Game: An improv game designed to illustrate the principle of generating a high volume of ideas.
• In-the-Moment Creativity: The ability to adapt and generate creative solutions in unpredictable, real-time situations.
• Accounting as Communication: Viewing accounting not just as numbers, but as a way for companies to communicate with stakeholders.
• Optimization and Simulation Modeling: A data-driven approach to formalizing and finding the best solutions to complex problems.
• Leading with Values: A core class on business ethics, focusing on organizational and societal principles.
• Interpersonal Dynamics ("Touchy Feely"): A distinctive elective focused on developing interpersonal competencies and authentic relationships.
• Stanford Seed: An international initiative bringing GSB expertise to entrepreneurs in emerging markets.
• GSB at 100: A series celebrating the 100th anniversary of the Stanford Graduate School of Business.

The Creative Process and In-the-Moment Creativity

Christian Wheeler, a marketing professor, leads a class at Stanford GSB's Executive Education program called "Creating Something from Nothing." This program offers a high-level overview of the creative process, aimed at executives who manage creative teams.

The "Three Things" Game

A key teaching method employed is the "Three Things" game, an improv exercise designed to foster rapid idea generation.

• Methodology:
  1. One student chooses a category.
  2. Another student quickly names three items within that category, prioritizing speed over accuracy.
  3. The roles then reverse.
• Example:
  • Student 1: "Three things that are red."
  • Student 2: "Apple, cherries, raspberries."
  • Student 1: "Three things."
  • Student 2: "Three animals."
  • Student 1: "Cat, dog, elephant."
• Key Principle: Professor Wheeler emphasizes that "More ideas equals better best idea." He stresses that the best ideas often emerge later in the sequence, and one should continue generating ideas even when they feel finished. This principle highlights the importance of quantity in the initial stages of idea generation.

Differentiating Creativity Types

Wheeler distinguishes between long-term creativity (e.g., developing a new market strategy) and "in-the-moment creativity." The latter is crucial for navigating unpredictable environments and responding effectively to unexpected challenges, such as difficult Q&A sessions with investors. He states, "The future is inherently unknowable. Our environments are increasingly unpredictable. The world is changing at an ever faster rate." This underscores the need for adaptability and immediate creative problem-solving.

Accounting as a Form of Communication

Susie No, an assistant professor of accounting, challenges the perception of accounting as a "boring subject."

• Perspective: She frames accounting as a "form of communication" used by companies to interact with external stakeholders like competitors, regulators, investors, and society.
• Connecting to Business: No emphasizes linking accounting to ethics and business strategy to make it more dynamic.
• Real-World Application:
  • She uses real companies' financial statements to illustrate concepts. For instance, Meta's financial statements are used to discuss valuing companies built on user networks and ideas.
  • Disney's financial statements are employed when discussing fixed assets and impairments, prompting students to analyze the impact of COVID-19 on amusement parks.
• Impact on Learning: This approach makes learning personal, allowing students to connect accounting questions to business models, objectives, and competitive landscapes, leading to more active and engaging discussions.

The Language of Business and Long-Term Value

Ed Dhan, MBA Class of 1963 Professor of Management, highlights the enduring importance of accounting knowledge.

• Core Argument: "Accounting really is the language of business." He argues that the higher one ascends in an organization, the more critical it is to understand this language.
• Long-Term Relevance: While a product manager might not interact with financial statements daily, senior roles require the ability to translate group performance into the unified language of assets, liabilities, revenues, expenses, and forecasted financials used at the executive level.
• Delayed Gratification: Dhan notes that the full benefit of accounting education may not be realized until years after graduation, when students reach positions where financial reporting is central to their decision-making.

Optimization, Simulation, and the Role of AI

Dan Yonu, an associate professor of Operations, Information, and Technology, teaches optimization and simulation modeling.

• Methodology: The approach involves:
  1. Data-Driven Problem Solving: Being quantitative and measuring as much as possible.
  2. Modeling: Formalizing messy problems into a structured format.
  3. Optimization: Determining the best decisions consistent with constraints to achieve an objective.
• Impact of AI: The rise of AI complicates this process. Yonu stresses the importance of students understanding how AI models produce results, not just accepting them.
• Maintaining Human Agency: He advocates for students to remain "in charge" and not delegate all decision-making to AI. The goal is to keep the "human in the loop" for responsible tool usage, preventing roles from becoming minimal.
• Analogy: Susie No uses a similar analogy for AI in accounting, comparing it to a calculator. Students can use calculators once they understand the underlying math, but they must grasp the mechanics first. AI can be a search tool, but not a substitute for understanding fundamental principles.

Leading with Values and Interpersonal Dynamics

Ken Shotts, professor of political economy, co-teaches "Leading with Values," a core class on business ethics.

• Levels of Values:
  • Individual: Good intentions.
  • Organizational: Incentive structures, informal norms, authority (compensation, promotions, monitoring systems, celebrated behaviors).
  • Societal: Legislative bodies, regulatory bodies, civil society, which channel capitalism's energies for broad benefit.
• Challenging Tropes: Shotts cautions against the idea that positive societal impact will "naturally happen." Intentional channeling mechanisms are necessary.

Interpersonal Dynamics ("Touchy Feely")

David Bradford, retired senior lecturer and co-creator of "Interpersonal Dynamics," describes the course as a place where "the learning comes from other students."

• Learned Competencies:
  • Asking open-ended questions.
  • Empathy.
  • Giving behavioral feedback.
  • Emotional awareness.
  • Congruent communication.
  • Learning how to learn.
• Outcome: Students build more open, trusting, and authentic relationships.
• Transformational Impact: Andrea Corny, a lecturer and faculty lead for the course, describes it as a "profound shift in how people see themselves and their relationships." Sharing vulnerabilities, when done appropriately, can bring people closer. Students realize their behavior significantly impacts relationships and that they have choices.
• Real-World Impact: Students report that the course has "saved marriages," "saved jobs," and made them "better people" and "better leaders." The core idea is that "leadership begins with humanity and humility."

Stanford Seed and Global Impact

Darius Teter, Executive Director of Stanford Seed, explains the initiative's mission.

• Mission: To provide world-class business training and resources to founders and CEOs in emerging markets (Africa, Indonesia, South Asia) to make businesses more resilient, foster bold visions, and execute them.
• Goal: To bring GSB learnings on leadership and business building to markets with limited access to such expertise.
• Economic Impact: Teter emphasizes that entrepreneurs building businesses are the "backbone of every successful economy," creating new jobs and innovation, especially in smaller businesses facing hurdles in technology, networks, finance, and basic business practices.
• Optimistic Enterprise: The GSB is described as an "optimistic enterprise," with its leadership, including former Dean John Leven and current Dean Sarah Su, embodying this mindset. This optimism fuels the belief that individuals can succeed as leaders.

Synthesis and Conclusion

The Stanford Graduate School of Business, celebrating its 100th anniversary, offers a multifaceted educational experience that blends academic rigor with practical application and personal development. Through diverse teaching methods, from improv games to real-world case studies and immersive interpersonal dynamics, GSB professors aim to equip students with the skills to navigate a complex and unpredictable world. Key themes include fostering creativity through idea generation, understanding business through the language of accounting, applying data-driven approaches to problem-solving with an awareness of AI's role, leading with ethical values, and developing profound interpersonal skills. The GSB's mission extends globally through initiatives like Stanford Seed, empowering entrepreneurs in emerging markets. Ultimately, the GSB emphasizes that learning is not just about acquiring knowledge but about what that knowledge makes possible, fostering leaders who are not only skilled but also human-centered and purpose-driven. The success of the GSB is attributed to a synergistic combination of curious students, dedicated faculty, and supportive staff, all working together to "change lives, organizations, and the world."