Blackstone's Stephen Schwarzman on Hiring Phenomenal People

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Summary

In this video, Steve Schwarzman, CEO and co-founder of Blackstone, shares insights about his entrepreneurial journey and leadership philosophy. He discusses the early challenges he faced as an entrepreneur, the importance of strategy and differentiation, and the key factors in building a successful business. Schwarzman also talks about the transition from being an entrepreneur to being a CEO, the importance of hiring the right people, and the need for constant learning and adaptation in a rapidly changing industry.

Questions & Answers

Q: How did Steve Schwarzman overcome the early challenges of being an entrepreneur?

Schwarzman explains that being an entrepreneur is much harder than one imagines, and the failure rate is high. He and his co-founder did extensive thinking and planning before starting their business, focusing on developing a strategy and differentiation to offer something distinctive in the market. They also met regularly to discuss their goals and objectives for the business.

Q: How did Schwarzman approach hiring the right people at Blackstone?

Schwarzman believes that hiring the right people is crucial for any successful organization. They look for individuals who are smart, nice, and consistent with the company's values. They want people who are self-reliant, adaptable, and can contribute to the intellectual capital of the firm. Schwarzman emphasizes the importance of creating a culture where people feel secure, valued, and have autonomy in their work.

Q: How did Schwarzman transition from being an entrepreneur to being a CEO?

Schwarzman acknowledges that being a CEO requires a different skill set than being an entrepreneur. He had to learn how to manage people, be careful with his words and actions, and provide direction and vision for the organization. He highlights the importance of articulating the core values of the business and being consistent with those values. Schwarzman also emphasizes the need to surround himself with talented individuals who share the same values.

Q: What is Schwarzman's leadership philosophy?

Schwarzman's leadership philosophy is centered around creating a culture where people feel secure and valued. He believes in treating people with respect, providing feedback, and allowing people to have autonomy in their work. He emphasizes the importance of having a clear strategy, constantly learning, and adapting to a changing environment. Schwarzman also mentions the need for leaders to be careful with their words and actions, as they have a significant influence on the organization.

Q: How did Schwarzman overcome resistance to change in his business?

Schwarzman acknowledges that change is often difficult for people, and he has encountered resistance when implementing changes in his business. He believes in explaining the motives behind the change and ensuring that the changes are beneficial and well-executed. Schwarzman also mentions the importance of making people comfortable with the change by introducing it gradually and addressing their concerns.

Q: What motivated Schwarzman when he first started his business, and what motivates him now?

Schwarzman's motivation has always been to learn and do new things. He enjoys being in charge, dealing with complexity, and solving problems. He also mentions that making money was an initial motivation, but as he grew older, the motivation shifted towards creating and leaving a meaningful legacy. Schwarzman emphasizes the importance of finding something you love and continuing to learn and grow in that field.

Q: How did Schwarzman ensure his business got the right people for the right seats?

Schwarzman believes in hiring individuals who are consistent with the company's values and possess the necessary skills and capabilities. He emphasizes the importance of conducting thorough interviews, talking to people to understand their adaptability and emotional stability, and predicting future behavior. Schwarzman also mentions the importance of not overlooking negative feedback about potential hires and making sure that the organization's culture aligns with the individuals being hired.

Takeaways

Schwarzman's journey as an entrepreneur and CEO highlights the challenges and rewards of starting and building a successful business. His insights on hiring the right people, creating a culture of trust and growth, and adapting to change are valuable for aspiring entrepreneurs and leaders. Schwarzman's emphasis on learning, constant improvement, and staying true to one's values provides a roadmap for success in any industry.