Building Institutions That Last Centuries: Jon Levin's Vision for Stanford GSB in an Era of Institutional Distrust

Stanford GSB Dean Jon Levin reveals how elite business education adapts to eroding institutional trust while maintaining century-spanning impact through principled leadership and global perspective.

Jon Levin, Dean of Stanford Graduate School of Business, explains why he chose building enduring institutions over startup opportunities and how elite education must evolve as public trust in institutions declines.

Key Takeaways

• Academic research creates real-world impact when professors get opportunities to apply theoretical work to actual policy and business problems
• The post-WWII U.S. model of combining great research with great students in universities created Silicon Valley's innovation ecosystem
• Institutional erosion forces business leaders to explicitly address company purpose and societal contribution rather than assuming shared values
• International diversity in business education becomes more valuable during geopolitical tensions, fostering understanding between countries
• Long-term institutional thinking focuses on 30-50 year outcomes rather than short-term metrics like graduation employment rates
• Teaching excellence requires both persistence to master the craft and innovation to avoid becoming stale over decades
• Self-awareness through experiential learning proves more transformative than traditional academic coursework for leadership development
• Serendipitous collisions on campus create entrepreneurial opportunities that remote learning cannot replicate

Timeline Overview

• 01:56–10:15 — Academic Excellence and Real-World Application: John Bates Clark Medal recognition, auction design research for FCC spectrum allocation, and the joy of taking theoretical economics into practical policy implementation
• 10:15–16:30 — Stanford's Institutional Advantage: Two Nobel Prize winners in three years, post-WWII strategy of combining research excellence with student education, and how this model created Silicon Valley's innovation epicenter
• 16:30–23:07 — Entrepreneurial Environment vs Institutional Commitment: Twenty percent of MBA graduates start companies immediately, Levin's preference for century-spanning institutional impact over startup opportunities
• 23:07–27:27 — Leadership in Trust-Deficit Era: Measuring success through 30-50 year alumni impact, being affirmative rather than defensive about institutional values, preparing students for polarized business environment
• 27:27–34:47 — Global Education in Nationalist Times: Forty percent international student body, importance of diversity during U.S.-China tensions, student responses to Ukraine war demonstrating cross-cultural empathy
• 34:47–39:12 — Academic Family Influence: Growing up with Yale president father, dinner table intellectual curiosity, teaching as combination of persistence and innovation requiring continuous craft development
• 39:12–47:06 — Alumni Success Patterns: Looking for academic achievement plus leadership potential, transformation from investment banking pipeline to 300 different organizations, heterogeneous career paths beyond traditional business roles
• 47:06–END — Faculty Excellence and Campus Serendipity: Professors' obsessive dedication to final class impact, the "Touchy Feely" interpersonal dynamics course, COVID-19 revealing irreplaceable value of in-person collisions

From Theory to Policy: When Academic Research Changes the World

Jon Levin's career exemplifies how academic economics can create massive real-world impact when professors get opportunities to apply their research. His work on auction design didn't remain in academic journals—it helped allocate hundreds of billions of dollars in radio spectrum.

• Spectrum allocation challenge emerged in the 1990s when the U.S. needed to distribute scarce radio frequencies to wireless carriers efficiently
• Stanford faculty innovation led by Paul Milgram, Bob Wilson, and Preston McAfee designed auction mechanisms adopted by the Federal Communications Commission
• Theoretical application allowed Levin to help design the 2017 FCC auction that reallocated TV station spectrum for broadband wireless use
• Research satisfaction comes from finding problems that interest you, developing theoretical understanding, then implementing solutions in the real world

This bridge between academic theory and practical application represents what Levin loves most about being a business school professor—the opportunity to take scholarly insights and directly influence policy and business outcomes.

The Post-WWII Innovation Strategy That Built Silicon Valley

Levin traces Silicon Valley's dominance to a strategic decision made after World War II that fundamentally differentiated the U.S. from other countries' approaches to research and education.

• Wartime revelation showed that science and engineering would determine competitive advantage, exemplified by the Manhattan Project's strategic importance
• Vannevar Bush's vision in "Science: The Endless Frontier" created the national strategy of locating the best research in universities alongside the best students
• Competitive funding model through the National Science Foundation emphasized openness, transparency, and idea sharing rather than centralized research institutes
• International comparison shows most countries separate great researchers in institutes from student education, missing the synergistic benefits

This 75-year-old strategy created the conditions for Silicon Valley's emergence as the global innovation epicenter, where great research universities directly feed entrepreneurial ecosystems.

Why Institutions Matter More Than Startups

Despite being surrounded by entrepreneurial energy and having students who regularly pitch compelling business ideas, Levin chooses institutional building over startup opportunities because of his belief in century-spanning impact.

• Enduring contribution means building something that will benefit people for hundreds of years rather than seeking immediate returns
• Institutional strength compounds over time as good decisions in hiring faculty and admitting students create lasting value for future generations
• Continuity benefit provides a sense of contributing to something larger than individual achievement
• Values preservation through institutions like Stanford that stand for openness, truth-seeking, and diverse perspectives becomes more important during polarized times

This long-term institutional thinking contrasts with the startup mentality of building from zero, representing a different but equally valuable approach to creating lasting impact.

Leading Through the Trust Deficit

The erosion of trust in institutions represents the biggest change Levin has witnessed during his tenure, fundamentally altering how business leaders must operate and how business schools must prepare students.

• Assumption breakdown means leaders can no longer take for granted that stakeholders share basic assumptions about company purpose and operation
• Communication imperative requires more effective listening and explanation of decisions rather than relying on institutional authority
• Student preparation must now explicitly address questions about capitalism, entrepreneurship, and corporate purpose that previous generations could assume
• Defensive vs. affirmative leadership approaches—focusing on bedrock principles and values rather than reactive defensiveness when facing criticism

This environment demands that business leaders develop skills in navigating polarized societies and complex stakeholder expectations that weren't necessary in previous decades.

Global Education During Nationalist Times

Stanford GSB's 40% international student body creates educational value that becomes even more important during periods of geopolitical tension, though it faces new challenges.

• Educational enhancement occurs when classroom discussions include perspectives from Nairobi, Beijing, Singapore, and London rather than just U.S. viewpoints
• Cultural bridge-building helps create understanding between countries even when political systems are at odds
• Talent contribution brings highly capable people who either stay in the U.S. or export American values and entrepreneurship globally
• Current challenges include deteriorating U.S.-China relations and the risk of losing valuable international perspectives due to nationalist pressures

The Ukraine war response demonstrated this value—Russian and Ukrainian students found ways to empathize with each other while organizing humanitarian efforts.

Teaching as Craft: Persistence Plus Innovation

Levin's philosophy that teaching combines persistence and innovation reflects his belief that excellence in education requires both mastering fundamental skills and continuously adapting approaches.

• Craft development means recognizing that teaching is much harder than experts initially expect, requiring years of refinement
• Persistence necessity involves working through the learning curve of explaining complex concepts clearly and fostering meaningful classroom discussions
• Innovation requirement prevents staleness that can occur when teachers become too comfortable with established approaches
• Peak performance maintenance requires finding ways to stay at the highest level for years rather than declining after initial mastery

This framework applies to any professional skill where initial competence must evolve into sustained excellence over decades.

The Transformation of Business School Demographics

Over Levin's 20+ year tenure, Stanford GSB has shifted from a pipeline feeding investment banking and consulting to a diverse ecosystem connecting 300 different organizations.

• Historical model involved recruiting roughly half of students from investment banks and consulting firms, then sending them back to similar roles
• Current diversity includes professional athletes, musicians, military officers, journalists, and entrepreneurs representing 50-60 countries
• Gradual change occurred slowly enough that year-to-year differences seemed minimal, but the 20-year transformation is radical
• Heterogeneous outcomes now span startups, tech companies, various investing roles, and global organizations rather than traditional business careers

This evolution reflects broader changes in career paths and the recognition that business skills apply across diverse industries and roles.

The "Touchy Feely" Class: Self-Awareness as Leadership Foundation

Stanford GSB's interpersonal dynamics course, nicknamed "Touchy Feely," represents a 50-year-old insight that self-awareness forms a crucial foundation for effective leadership.

• Experiential learning involves sitting in small groups and discussing how people show up in interactions rather than traditional lecture formats
• Self-awareness development helps students understand their impact on others and how they come across in professional settings
• Transformative impact leads many alumni to cite this single class as the most impactful experience at Stanford or in their lives
• Leadership preparation recognizes that technical business skills alone don't create effective leaders without emotional intelligence

This course exemplifies how truly transformative education goes beyond knowledge transfer to fundamental personal development.

Faculty Excellence: Obsessive Dedication to Student Impact

The quality that distinguishes Stanford GSB's best faculty members is their obsessive dedication to creating meaningful learning experiences, going far beyond subject matter expertise.

• Emotional investment shown by professors who spend extensive time thinking about how to make their final class memorable and impactful for students
• Craft commitment demonstrates that great teaching requires caring deeply about the student experience rather than just delivering content
• Continuous improvement involves constantly refining approaches to better serve student learning rather than relying on established methods
• Impact focus emphasizes creating moments that "blow students' minds" rather than simply covering required material

This level of dedication explains why Stanford attracts and retains faculty who could command high salaries in industry but choose academic careers.

The Irreplaceable Value of Serendipitous Collisions

The COVID-19 pandemic revealed both the potential and limitations of remote education, highlighting aspects of campus life that technology cannot replicate.

• Technology capabilities proved much more advanced than previously assumed, enabling continued operations during lockdowns
• Missing elements included personal connections, chance encounters, and post-class conversations that drive innovation
• Campus collisions create opportunities like Scott Cook's discovery of Evan Spiegel based on thoughtful classroom questions
• Creativity catalyst emerges from bringing talented, aspirational people together in physical spaces where unexpected interactions occur

This insight applies equally to corporate environments debating remote work policies—some aspects of innovation require physical proximity and serendipitous encounters.

Measuring Success Across Generations

Levin's approach to measuring institutional success focuses on 30-50 year outcomes rather than short-term metrics, reflecting the long-term nature of educational impact.

• Proxy metrics like graduation employment rates provide useful short-term indicators but miss the fundamental purpose
• Generational impact requires waiting decades to understand whether students actually made significant differences in the world
• Optimization challenge creates difficulty for administrators whose tenure is shorter than the outcome measurement period
• Institutional thinking demands maintaining focus on long-term impact despite pressure for immediate results

This framework challenges leaders in any field to consider whether their success metrics align with their ultimate goals.

Jon Levin's perspective demonstrates how institutional leadership requires balancing immediate operational needs with century-spanning vision. His approach to Stanford GSB shows how elite institutions can maintain relevance and impact while adapting to changing social and political environments.

The key insight from his experience: building institutions that last requires unwavering commitment to core principles while continuously adapting methods to serve each generation's needs.

Practical Implications

• Embrace institutional thinking when building organizations meant to last beyond current leadership tenure
• Focus on long-term impact metrics rather than optimizing for short-term success indicators
• Develop both persistence and innovation in professional skills requiring sustained excellence over decades
• Prioritize self-awareness training for leadership development beyond technical competencies
• Create physical spaces for serendipitous encounters when fostering innovation and collaboration
• Address societal purpose explicitly rather than assuming stakeholders share organizational values
• Maintain global perspectives during nationalist periods through diverse team composition
• Apply academic research to real-world problems rather than keeping theoretical work isolated
• Build bridges between different knowledge domains to create unexpected value combinations
• Invest in experiential learning that transforms personal understanding rather than just conveying information