For Immediate Release: June 7, 2006
Contact:  Jim Aisner, jaisner@hbs.edu, (617) 495-6157

HBS ALUMNUS HENRY PAULSON RETURNS AS CLASS DAY SPEAKER

Henry Paulson (MBA 1970) Photo: Stuart Cahill

BOSTON - Henry M. “Hank” Paulson, Jr. (MBA 1970) had at least one thing in common with the 900 graduating MBA students he addressed today as the distinguished speaker at Harvard Business School’s annual Class Day ceremonies (the traditional prelude to Commencement, which will take place tomorrow). He is about to begin a new job. After working for over 32 years at the investment banking firm of Goldman Sachs and serving as chairman and CEO since 1999, he is poised to become the next Secretary of the Treasury.

About to leave a job and firm he loved to take on the challenge of “doing something for my country,” Paulson, who was a member of both Phi Beta Kappa and the football team at Dartmouth College before making his way to HBS, offered words of advice to the MBA Class of 2006, who packed the School’s Burden Auditorium on a rainy afternoon that drove students, along with their families and friends, inside.

According to Paulson:

• Avoid short-term temptations as you aim for long-term success. “I made the decision long ago,” he said, “that there just aren’t any shortcuts. You need to start at the bottom and learn a craft, learn an industry, and build a record over a long period of time. True happiness comes from doing things that are difficult. If they’re easy, there’s no real satisfaction.”
• Pick the job that’s right for you. From the Internet several years ago to private equity today, “there’s always going to be something that’s in vogue,” Paulson observed. But choosing a job isn’t a matter of figuring out what’s hot and what’s not. Instead, “I always ask people to step back and ask, ‘What is your skill set? What do you enjoy doing? What’s the work environment that’s most suitable for you?”
• Keep your moral compass. “Good people can do bad things,” when they get caught up in a “group think” environment that’s headed in the wrong direction, he warned. “Even if someone who is very senior to you suggests something you don’t think is right, don’t be afraid to ask a question and object. You should not feel guilty, because that person, in fact, is trying to ruin not only your career but your life.”
• Figure out a way to strike a balance between your professional life and your personal life. Paulson said he didn’t know anyone who had achieved great success in business at the expense of a happy and fulfilling personal life who felt good about the trade-off. “But people are naïve if they think that their business is going to solve this problem for them. It’s up to you,” he told the students, “to figure out how to say ‘yes,’ how to say ‘no.’ The most important decision I make every morning is how and where I’m going to spend my time.”

Paulson also painted a picture of a world that would be quite hospitable to the newest crop of Harvard Business School MBAs. From the U.S. to China and India, “this is by far the best global economy that I have seen in my career,” he said. Along with economic opportunities, however, come risks, since the integration of markets around the world leads to more volatility. “An event occurring in one place in the world can affect us all. There will be very few islands of stability, whether we are talking about economies, industrial sectors, or companies.” And with all this comes a cascade of change. “The most successful of you,” Paulson asserted, “will embrace change, and some of you may even be able to say that it’s your friend.”

As they applauded Paulson’s remarks, the members of the MBA Class of 2006 seemed eager to go forth and apply his words to their deeds.