By Christine Lagarde, Managing Director, International Monetary Fund Chicago, May 16, 2015
Good morning. It is a great honor to return to IIT and celebrate
together. I would like to thank President Anderson for his kind
invitation and all of you for your warm welcome. I would also like to
thank all faculty members who have done so much to bring us here today.
Let me start with a full disclosure of my highly personal interest in today’s ceremony.
I am the proud mother of one of the 2,591 graduates whose
accomplishments are being recognized today. As an immensely proud mom, I
would like to extend a special welcome to all families and friends who
are joining this wonderful commencement exercise. This is a joyous
moment for all of us.
Today the center of our universe is right here in Chicago, on the Ed
Glancy Field. Today you – the graduates of this great university – have
the right to feel like the new masters of the academic universe.
Hard work, boundless energy, relentless curiosity, and incredible
talent: these are some of the qualities that helped you achieve success
in the classroom. These are the qualities that you can now bring to bear
on some of the world’s most exciting challenges. The world is not short
of that!
In other words, after writing the prologue, you are now ready to draft your own 21st-century
legacies in engineering, architecture, business, design, law, and
science and technology. What an incredible privilege, what a great
responsibility!
Of course, many of you already know that the line from college to
career is unlikely to be perfectly straight. There will almost certainly
be plenty of twists and turns, ups and downs and bumps along your way.
But many of you will also realize that your starting point could
hardly be better. And this is why we are here today – to celebrate the
beginning of your journey, the starting point of a new adventure. It is a
day of hope. It is a day of promise. It is a day of joy – for all of
us.
With this in mind, I would like to talk about three things that could help along the journey:
- First, reinventing yourself and welcoming change and risks.
- Second, standing up for your values and ideas.
- Third, encouraging transformational change in others.
If you will indulge me, I would like to introduce these points by
briefly recounting personal experiences that have shaped my life. Of
course, my experiences may not be the ultimate nuggets of wisdom. But as
Mark Twain once said: “It is better to have old second-hand diamonds than none at all.”
1. Reinventing yourself and taking “smart risks”...
So here is my first story – about risk and reinvention. Let me be
clear, I am certainly not a risk junkie. I do not jump out of airplanes;
I do not hang out in casinos; I do not even drink alcohol. So far, so
boring. But there is a pattern in my personal journey that I would
describe as going from “cozy” to “crazy”. As in: “Why would you give up
your cozy life? Are you crazy?”
I heard the French version of that question 42 years ago, when I traded my cozy
world in France for a new life – with my American host family and my
American school in Bethesda, Maryland. I was 17, and soon enough I was
homesick and missing my family and friends. And I was recovering slowly
from a profound emotional and cultural shock.
But I was also incredibly excited to be exposed to new ideas, a new
language, and new ways of thinking. And I am forever indebted to those
people who welcomed me and who allowed me to experience the most
transformational year of my life.
Let me give you another example of “cozy to crazy” – and it happened
right here in Chicago. In 1999, after years of studying at law school
and hard work as a young – and then not so young – lawyer, my partners
at Baker & McKenzie elected me chairman of this global law firm.
Working and living here in Chicago allowed me to thrive as a lawyer, as a
leader, and as a mother of two wonderful boys. I could not have made it
without the support and tolerance of my family and the help of my great
colleagues and friends – some of whom are here today.
But in 2005, I received a call from Paris: the Prime Minister was
asking me to join the French government. When your country calls you to
public service, there is really only one answer you can give. So I gave
up my cozy chairman’s life in Chicago, packed my bag and flew
immediately to Paris. In my haste and excitement, I left my reading
glasses behind. So for her first few days of office, the newest French
minister was blinking and squinting a lot!
Going from “cozy” to “crazy” allowed me to move from the private
sector to national public service to international public service; from
France to the United States to the world.
One of the major lessons I have learned during that journey is this:
be prepared for change, be willing to take “smart risks”, don’t be
afraid to re-invent yourself.
This is precisely what you have been doing here at IIT. You have
taken a financial risk – or maybe your parents have – by attending this
great university. And you have transformed yourself through learning.
You are no longer the person who stepped into the classroom on your
first day.
I encourage you to take “smart risks” and to raise your
risk-tolerance to the next level – the global level. In today’s
hyper-connected world, I think it is more important than ever to take a
global perspective in your personal and professional life.
Forty-eight percent of you – of all IIT students – are non-U.S.
nationals hailing from 97 countries – which shows the remarkable
openness and pulling power of this university. Traditionally, many of
these students would want to stay here in the U.S. But a growing number
of them will happily return home to pursue opportunities in fast-growing
economies, particularly in Asia and Africa.
These students are taking a truly global view. They will overcome
boundaries. So, too, will their American classmates who want to leave
their mark on the world. Think of the IIT architecture graduates who
have been reshaping the skylines of cities worldwide. Think of the IIT
engineering and business graduates who are now reshaping the world of
smartphone apps that drive our social interactions, financial
transactions, and media consumption.
Whether you are from Milwaukee or from Mumbai, from Chicago or from
Shanghai, from Paris or Panama City, you have the opportunity to bring
your act to the global stage! Imagine that you have no boundaries, and
please do not set mental boundaries for yourself – they are even worse.
But let me add a word of caution: taking “smart risks” and
reinventing yourself also means leaving room for the unexpected, for the
perfectly unplanned. And that is particularly true in business and technology.
Quick question: did you know that the world’s biggest hotel company
does not own any hotels; that the world’s biggest taxi company does not
own any cabs; that the world’s biggest news agency does not own any
newspapers. Which companies am I talking about? Of course, you all know
the answer: Airbnb, Uber and Facebook.
Only a few years ago, these companies did not exist and it would have
been unthinkable to even ask a question like that. But ever since a
little company called Amazon.com started selling books online, we have
come to expect the unexpected. Disruption – through technology and
market forces – is the only known variable. Everything else is
guesswork.
There is only so much in life that you can plan and foretell. I am
not suggesting that you can lean back and relax. Quite the opposite. It
was Thomas Jefferson who said: “I am a great believer in luck and I find the harder I work, the more I have of it”.
2. Standing up for your values and ideas
This brings me to my second story – about standing up for your values and ideas.
It does not always work. For example, I highly respect my fellow
human beings and cannot accept the death penalty. So I decided to go to
law school in Paris to become a criminal lawyer and defend death penalty
cases. So much for my own values. In the meantime, a new President was
elected in my country whose first action was to eliminate the death
penalty. Never mind, I pursued my goal.
As a young lawyer, I interviewed with the best law firm in the
country. I was told that I was hired at a good salary, but that I would
never make partner. When I asked why, they told me it was because I was a
woman. So I looked at them fiercely, walked out the door, ran down the
stairs, and never looked back. I should have said thank you. I felt much
stronger, even with no job.
In many ways, a situation like that is inconceivable in today’s
corporate world. Any recruiter uttering these words would almost
certainly face a discrimination lawsuit.
There are many values and ideas that are worth standing up for. Two
things – including respect for others and gender equality – have always
mattered to me; they matter to me every day.
To achieve greater fairness in schools, universities, and in the
workplace, we need to remove the barriers that continue to hold back
women – and that is especially true in the technology sector.
Your generation is already benefiting from major shifts in gender
norms and expectations – and this is partly because of places like IIT.
This university has a strong record of encouraging women and minorities,
especially in its science and technology programs.
But the tech industry itself has been lagging behind. In Silicon
Valley, for example, some of the hottest startups have yet to understand
that holding back women is bad for innovation and bad for business.
Studies have shown that – without female leaders – women are
significantly less likely to win endorsement for their ideas than their
male colleagues. This translates into a loss of market opportunities and
lower growth potential. What a great opportunity for your generation to
stand up for your values and ideas!
By the end of this decade, your generation – the millennials – will
make up half the U.S. labor force. And as a result, your values – on
everything from gender, to ethics, to management style, to work-life
balance – may become the workplace standard. But don’t rely too much on
demographics. Increase your chances by standing up for greater respect
and fairness now!
And while you are making a difference at school, at home, at work,
many of you will also want to take a wider perspective on the pressing
issues of our time. Protection of our planet, eradication of poverty,
reduction of inequality: these are some of the topics that many of you
already care deeply about.
You can do even more. Imagine that you turn your social media
accounts into megaphones; that you pester your friends and foes alike;
that you talk to those who do not already agree with you; that you go
wild and put a bumper sticker on your smartphone. And that you don’t
forget to vote – with your money, with your feet, and with your ballot!
Whatever you choose to do, ignore the barriers of mockery and
conventional wisdom, stand up for your values at the local and global
levels! Trust me: you will feel better and stronger, and the next
generation will thank you.
3. Encouraging transformational change in others
This brings me to my third and final story – about encouraging transformational change in others.
The real heroes of this story are my great colleagues at the
International Monetary Fund. In 2011 – at the height of the sovereign
debt crisis in the Euro Area – they produced a highly controversial
piece of research on European banks.
European leaders had been insisting that their banking systems were basically OK. But our
analysis showed that these banks were sitting on massive amounts of
bonds that were worth only a fraction of the value listed in their
books. We were pretty sure that the emperor had no clothes. And we were
extremely worried that this could be Europe’s Lehman Brothers moment.
So, I gave a speech to make a loud and clear call for action. The
pushback was swift and hard – with bankers and ministers lining up to
publicly discredit our analysis and criticize me. But over the next 12
months, these banks did exactly what we were calling for – raising
hundreds of billions of euros in fresh capital. And European leaders
began to revamp the regulatory structures to create a safer and sounder
banking system.
This was a defining moment for me personally and, of course, for the
IMF. As you know, the IMF lends money to countries in times of distress,
so they can get back on their feet. But we also play a key role in
sounding global alarm bells and encouraging global cooperation. At its
best, the IMF is – in the words of economist John Maynard Keynes – a
“ruthless truth-teller”. In 2011, we told an inconvenient truth – and it
mattered.
My point is this: you can create a lasting legacy by encouraging
transformational change in people, companies, and communities. And you
can do this in two dimensions – to help resolve pressing problems, and
to help others achieve their potential.
But there is a catch: you cannot really move others if you
are standing still. If you want to inspire others – at work and in your
private life – you need to move out of your own comfort zone. As the
Roman philosopher Seneca once said: “It is difficult to bring people to
goodness with lessons, but it is easy to do so by example.”
And always remember that transformation is a laborious business. It
requires guts, grit, and generous amounts of time and energy. Many of
you know exactly what I am talking about. Many of you feel the need to
do even more: take a break, get off the grid, and spend meaningful time
with others – as mentors, friends, professors, and engaged citizens.
Whether you are teaching a class, running a summer camp, or listening to
a heart-broken friend late at night, you have the chance to learn
together, to dream together.
Imagine that you are transforming, inspiring, and improving not only
others but yourself along the way. This will make you better and
stronger!
Conclusion
Better and stronger: you have grown here, you have learnt here, you
have made new friends and met new people, you have engaged, and you have
loved it. Don’t be sad because it’s over; be happy that it happened.
“Les voyages forment la jeunesse.” “Young people are shaped by the journeys they make.” Shape your
journey by welcoming change and risks, by standing up for yourself, and
by encouraging transformational change in others! That journey will
shape you.
I could not be happier and – as a mom – I could not be prouder to see
you here today at this new starting point. Every day of our life, from
the very first day, you have transformed us. We have conveyed
our values and ideas, and we have watched you take risks – sometimes at
your peril and always accompanied by our trepidation.
Your journey, your adventure continues from this new starting point. It will transform you, and you will transform us. Bon voyage!
Thank you.
