It is hard to imagine a better and more appropriate person to inspire students entering the challenging world of business and leadership than Bill McNabb.

As Chief Executive Officer, President, and Chairman of the Board at Vanguard, McNabb took over control just weeks before the financial crises started in 2008 and has led Vanguard to its strongest position ever.

He took the opportunity to impart some of the wisdom that got him through the challenging times to graduates gathered at the Penn State Great Valley’s 2016 spring commencement. Here’s the transcript.

[quote bgcolor=”#c9bc97″]

Thank you, Chancellor Nemes. And good evening, everyone.

It’s an incredible honor to be here tonight and let me offer congratulations for your accomplishments. Tonight is the culmination of many hours of hard work and sacrifice. From classes attended after long days at the office to the assignments completed late at night or on the weekends, you have truly earned your graduate degrees. Well done!

Now, I have been tasked with dispensing wisdom to this esteemed crowd. That’s a pretty lofty task, and I’m not sure if what I have to say is wise. What I can share with you are those things I know to be true based on my own experiences and observations.

So, here’s the truth. We are living in the most complex and complicated environment in the history of man. (I promise, we’ll get to more positive thoughts in a minute.)

We all feel it. The pace of change has accelerated at an unbelievable rate and the world we live in seems to shift and evolve day-by-day, minute-by-minute.

When Alexander Graham Bell patented his version of the modern telephone in 1876, he changed the future of communications. But it took nearly 70 years for his pioneering invention to take hold in a majority of U.S. households. Compare that with the introduction of the iPhone in 2007—one of the first smartphones to use a touchscreen. Nine years later, two-thirds of Americans have a smartphone that serves as a pocket-size phone, computer, camera, DJ, navigation system, and more.

It’s not just how we communicate that’s changed; it’s also:

• how we find information
• how we organize our lives
• how we learn
• how we stay healthy
• how we conduct business
• how we wage war
• and how we broker peace.

As leaders, you will be challenged to not only operate in this environment but to also help your teams and your companies adapt to this ever-changing landscape.

Leading in challenging times

When I became CEO of Vanguard, I had worked at the firm for 22 years and had seen my fair share of challenges—the crash of ’87, the rise of the dot-coms and the resulting tech wreck of the early 2000s, and numerous recessions. But, two weeks after I became CEO, Lehman Brothers filed for bankruptcy, and the financial world as we knew it changed forever. It was the beginning of what we now call the Great Financial Crisis, and it tested our firm in ways I never imagined.

We were operating in unknown territory with no roadmap to guide us. What we did have was a deeply held commitment to do right by our clients and our employees, whom we call crew. We also had decades of experience that taught us to think long-term and not let immediate circumstances drive our strategic decisions. In the end, we emerged from those turbulent times stronger and more focused than ever.

Would I want to go through another financial crisis anytime soon? Hardly. But when I reflect on how well Vanguard weathered the uncertainty and stress of 2008 and its aftermath, I’m both proud of our past and optimistic for our future.

You are faced with an equally challenging environment. Consider:

• Issues that were once considered region- or country-specific are now global in scope.
• Twenty years ago, China was 2% of the global economy; today it’s 15%, so when the Chinese economy stumbles, international markets react.
• A decision by Britain to stay or leave the EU will have repercussions worldwide.
• Terror attacks in remote parts of the world can roil markets and affect us all.
• And political clashes over income disparity and civil rights impact our colleagues, friends, and family in very personal ways.

In other words, the world grows smaller every day.

Embracing the unknown

In his book, The World is Flat, Tom Friedman says, “Today’s workers need to approach the workplace much like athletes preparing for the Olympics, with one difference. They have to prepare like someone who is training for the Olympics but doesn’t know what sport they are going to enter.”

That is the challenge you all face: to lead in a world where uncertainty and change are the norm. You’ll need to be flexible and nimble, but also firmly grounded in the fundamentals of your business. There are no shortcuts to long-term success, but there are an abundance of lesser known paths to explore.

In my opinion, it’s a fantastic time to lead. It’s a time that’s ripe for what economists call “creative destruction”, where new ideas have room to grow and thrive. Throughout American history, we’ve seen tough times produce real innovation—64% of S&P 500 companies were created during times of economic stress. The depression of the late 19th century produced the light bulb, the radio, and refrigeration, while the Great Depression of the 1930s brought us the helicopter, fiberglass, and, yes, the Philly cheesesteak. It may be hard to top that, but I have no doubt we’ll look back at the Great Financial Crisis as an incubator of great and enduring ideas.  

Building long-term success

Yet, we’ll also look back and remember that many companies didn’t make it. Banks failed, businesses closed, and government bailouts kept some firms alive. So what was the difference between those that struggled and those that succeeded? There is no magic formula, but I can point to four traits that helped us, and I believe they are applicable to any company in any field.

The first trait is passion. You have to love what you do and know what you stand for if you’re going to lead through challenging times. And if I can share a professional tip, it’s a lot easier to love what you do when you care deeply about the people you’re affecting.

• Have passion for your customers. Remember that they’re the reason you do what you do. Respect them and put their needs above all else.
• Have passion for your company. Take pride in the work that you do and the people you do it with. Be part of something special.
• Have passion for the community in which you operate. Vanguard employs 10,000 crew members in the Great Valley area. 130 Penn State Great Valley graduates are Vanguard crew members. We are part of your community and you are part of ours. It’s our responsibility to give back where we can and invest in the future of this region.

Passion for these three Cs—customers, company, and community—will help you weather challenging times and, even more importantly, give great meaning to your work.

The second trait that served us well during the crisis was our global perspective. Going back to Thomas Friedman’s book, the title tells you everything you need to know: The world is flat. Not only has the competitive playing field been leveled, but the collaborative playing field has been leveled, too. The boundaries of time, language, and geography are quickly receding as technology binds us closer together.

In 2008, Vanguard was very much a U.S.-centric company. We had small outposts in Europe and Australia, but our resources and operations were focused on U.S. markets. That all changed in the crux of the crisis. To remain competitive in a flattened world, we would need to become a truly global company. We’re still on that journey today, but I can tell you we’ve made huge strides in making that physical and psychological shift. New offices in London, Toronto, Hong Kong, and Beijing reflect our growing global footprint. But, more importantly, we’re beginning to look at the world through new eyes and with a deep appreciation for the perspectives and contributions of our international crew.   

The third trait I would point to as crucial to our success is a growth mindset. Some of you may be familiar with Carol Dweck’s research about fixed and growth mindsets. People with fixed mindsets view their abilities as if they are carved in stone. Those with growth mindsets believe change is both possible and welcome.

Tonight, as we celebrate your new degree, it’s clear to me which mindset this group has. Your willingness to learn, change, and grow will serve you well in the years to come. As leaders, you have to be willing to try and fail and try again. That’s certainly not easy. But, if you elect to stand still and wait for the perfect moment to experiment with a new idea, you’ll be left behind.

The final trait that I’ll leave you with today is grit, which is closely tied to the growth mindset I just described. People with a growth mindset believe that they can change; people with grit persevere until that belief comes true. Angela Duckworth recently published a book of research on this subject, and she found that the difference between those who succeed and those who don’t comes down to a “never give up” attitude. She describes grit as “having stamina…sticking with your future, day in, day out, not just for the week, not just for the month, but for years, and working really hard to make that future a reality. Grit is living life like it’s a marathon, not a sprint.”

You’ll be glad to hear that you already have a head start on this: Angela found in her research that adults who earned an MBA or other graduate degree were grittier than those who simply graduated from four-year colleges. I’m not surprised to hear it. You don’t earn a graduate degree in your spare time by giving up at the slightest inconvenience.

But, if you subscribe to Angela’s view that grit means living life like it’s a marathon—and I do—then welcome to about mile 10. Today, you’re embarking on the next leg of the race. This is commencement after all. It’s a beginning, not an end, and I encourage you to treat it as such. Look ahead into this complex and complicated world we live in and seek out your place in it. And remember:

• Have passion for what you do and respect for the people you do it with.
• Keep a global perspective. The world is flat and boundaries are disappearing.
• Maintain a growth mindset. Embrace what’s possible.
• And tap into your grit. It’ll get you exactly where you want to go.

Thank you, and congratulations on your fantastic achievement!

[/quote]