4 LEADERSHIP PRINCIPLES
Stanford GSB 2013 Graduation Speech by eBay CEO John Donahoe
Thank you, Dean Saloner.
Good afternoon distinguished faculty, friends, family … and most importantly, graduates of the class of
Congratulations! I am honored to be here with you today. I always love coming back to the GSB because it conjures
up wonderful memories from my time at Stanford.
If you are like me, you will always cherish your time here. And I’m sure many of you have developed friendships
that will last a lifetime. Today, though, is less about looking back, and more about looking
Many of you know what your next step will be. Others may still be exploring.
But no doubt, each of you is thinking about what kind of impact you will have in the world.
For me, creating a life and career filled with meaning and purpose is about leadership. And that’s what I want to
talk about today.
Leadership is a topic I have spent much of my life exploring, trying to be the best leader I can be … while also
trying to be the best person I can be, in every aspect of my life. And for me, the challenges of being a good
leader and leading a full life are deeply intertwined.
Now let me say right up front that my definition of being a leader includes you. Whether you are joining a
start-up, a tech company, a non-profit or even a consulting firm — in my book, by virtue of your talents and your
GSB education, all of you will be leaders.
So as you go into the world and launch your careers, I want to share with you four leadership principles that I’ve
learned over the past 25 years. These timeless principles have helped me navigate my work and my life, and I hope
they will be helpful to you.
Principle No. 1: Link your work with a sense of purpose.
It doesn’t matter what industry you choose, what company you join, or what your particular role may be. What
does matter is connecting your day-to-day energies to something that is deeply meaningful to
Now, most people don’t think of management consulting as a purpose-driven profession. But I spent the first 20
years of my career at Bain because I found meaning in my work. Simply put I like helping people. And whether it was
working with clients, engaging employees or connecting with the communities in which we operated, I could link what
Bain did with something that mattered to me.
That’s also what brought me to eBay. At first, I didn’t think eBay was right for me. But then I met eBay’s founder,
Pierre Omidyar. And I asked Pierre how he defined success for eBay. He didn’t talk about growth rates, revenues or
stock price. Pierre said: “John, it’s not about the numbers; it’s about how much impact we can have in people’s
lives around the world.” I knew then that I had found my next opportunity to deeply link my work with a sense
Discover what really motivates and inspires you, and make sure you can link this to your work. This will make you a
more authentic and effective leader. And it will give you the perseverance required to succeed over
Principle No. 2: Never stop learning.
No one will care about your career as much as you do. And only you can be responsible for your learning. It can’t
be delegated. One common trait I have observed in the most successful leaders is that they take their own growth
and development very seriously. Great leaders are never too proud to learn.
When I graduated from the GSB, I believed that my bosses and mentors would impart everything I needed to know to be
successful. Boy, was I wrong!
I quickly learned that the perfect Yoda-like mentor didn’t exist, and no one person had all the wisdom I was
Instead of learning a lot from one person, I now learn a little from a lot of people … and today I try to learn
something from every person that I interact with. Every interaction teaches me something … and in this way,
everyone is my teacher.
And here is a little secret – the more successful you are, the more you need to learn and grow. As you gain more
responsibility, the demands and challenges rise exponentially. Your commitment to learning has to be continuous and
That leads me to Principle No. 3: The most valuable learning often comes during difficult
Parents and faculty
, think of the most valuable learning experience in your life.
: from what phase of your young careers have you learned the most?
I’m guessing that many of you will point to challenging or difficult times as your best learning experiences. This
has certainly been true for me.
Simply put, tough times teach character – and I would argue that character is the most important quality a
leader can have.
Let me give you a personal example from early in my career: In the early 1990s Bain nearly went bankrupt. The whole
world had written us off, our outlook was grim, and there was a brief time where we couldn’t even make
Yet this turned out to be a defining moment in the firm’s history – and in my career. A few leaders came together
to forge a special bond, and we made a shared commitment to overcome adversity and build a great company. This was,
without doubt, a character-building moment – both for the organization and for me as a young
Over the past seven years, I have had a similar experience leading the turnaround at eBay. That too, has been a
character-building experience for our company and for me at a different stage of my career.
In difficult periods, you really get a sense of who you are, what you’re made of, and what’s really important to
you. It is during the difficult periods that you learn the importance of teamwork and commitment. It is during the
difficult periods that you learn how to persevere and have faith.
And last, Principle No. 4: Build your full life, not just your work life.
I understand many of you are concerned about work-life balance, and how your future employers are going to address
I would turn the question back to you: How will you create your own balance?
My wife and I have tried to balance dual careers for the past 30 years. We are partners and true equals. There have
been periods where I have followed her career, and times where she has sacrificed for mine.
At the same time we worked very hard at building a healthy family life, and today we are blessed with four
wonderful children. This has meant many trade-offs, sacrifices and lots of second-guessing.
And I can tell you, that there has been no single moment where we achieved the perfect work-life balance – and
that’s okay. We have realized that pursuing a full life and pursuing balance is a journey and not a destination …
and the fact that we are willing to keep at it is what counts.
I will also tell you that some of my most valuable leadership training has come from my experience being a husband,
a father and a friend. The skills you learn in your personal life – listening, empathy, and humility — are
invaluable for success at work.
So embrace the challenge of building your full life, not just your work. Real life gives you the stuff to be
a real leader.
In summary, I hope these four timeless principles give you some guideposts to staying true to who you are … to
being an authentic, purpose-driven leader, to learning throughout your life, to building character in tough times
and to having a career and a life that is fully enriching and rewarding.
I want to close by sharing some words from John Gardner, who has written extensively on the topic of personal
renewal. Over the past 20 years I have kept a laminated copy of this quote in my wallet as part of my life-long
journey. I pull it out frequently as a source of inspiration:
Meaning is not something that you stumble across, like the answer to a riddle or the prize in a treasure hunt.
Meaning is something you build into your life. You build it out of your own past, out of your affections and
loyalties, out of the experience of humankind as it is passed on to you, out of your own talent and understanding,
out of the things you believe in, out of the things and people you love, out of the values for which you are
willing to sacrifice something.
The ingredients are all there. You are the only one who can put them together into that unique pattern that will be
your life. Let it be a life that has dignity and meaning for you.
Class of 2013 – the future is yours … I can’t wait to see what you do with it.