All Segments
Ruth Porat, CFO at Alphabet and Google
36 segments available
“You’re at the table because people want your voice. It’s easy to forget that. Don’t keep second guessing. If you have a point of view, the reason you were hired is because people want to hear it.” Ruth Porat, CFO at Alphabet and @Google, spoke today on campus for the academic year’s last View From The Top. Not investing for the long term could be one of tech’s greatest vulnerabilities, she said, and advised students to keep thinking about investment for the long haul. ”What I’ve seen is that if you don’t invest in the long term, you’re sowing the seeds of your own destruction.” Porat was interviewed by Lepi Jha Fishman, MBA ’19.
Segments Timeline
Ruth Porat's Early Influences
Ruth Porat shares her family's challenging history, emphasizing the value of education instilled by her father, a Holocaust survivor. He believed education was a 'passport for life,' which shaped her values and commitment to learning. Her mother's encouragement of women pursuing careers further influenced her path, highlighting the importance of passion and professional fulfillment.
"[Music] Ruth I'm so glad to be here with you today and as we learned from Laura's amazing introduction Ruth grew up close to Stanford where her father was an engineer at the original slack Stanford Li..."
Lessons from Early Career Challenges
Porat recounts her early career at Morgan Stanley during the 1987 stock market crash, reflecting on the fear and uncertainty she faced. She learned the importance of flexibility and seizing unexpected opportunities, which led her to explore new roles in private equity despite her initial reservations. This experience taught her the value of adaptability in a changing market.
"them perfect there's so much to cover from your early beginnings to Morgan Stanley - now alphabet in Google so let's jump in before your parents landed here in Silicon Valley they had a very very diff..."
Navigating Career Transitions
Ruth discusses her decision to leave Morgan Stanley for Smith Barney, driven by the influence of sponsors. However, she quickly regretted the move and returned to Morgan Stanley, emphasizing the importance of open communication about career aspirations. Her experience highlights the significance of maintaining relationships and the potential for second chances in one's career.
"one the importance of education and two the gratitude to be in a country where you do have freedoms that so many people don't have and so those are probably the most profound my mother was amazing a p..."
The Call to Serve: Advising the Treasury
In 2008, Ruth Porat was called to advise the U.S. Treasury during a financial crisis. She describes the urgency of the situation and the critical decisions made to stabilize Fannie Mae and Freddie Mac. This experience underscored the importance of having a diverse team with both entrepreneurial spirit and seasoned expertise to navigate complex challenges.
"working with people who are really smart and take a risk on you they may open doors that you don't even appreciate our doors to be opened and it I didn't use the word sponsor back then it probably too..."
The Right Choice in Crisis
Ruth reflects on the moral imperative to act during critical moments in history. She recounts the decision-making process at Morgan Stanley regarding whether to advise the Treasury, emphasizing the necessity of speaking up for what is right. This segment illustrates the ethical responsibilities leaders face during crises and the impact of their choices on the broader financial landscape.
"where people were looking out for me might get derailed quickly because maybe the people I've been working for men because they were so few women back in the day in leadership positions maybe they got..."
Building a Diverse Team
Ruth Porat discusses the importance of assembling a diverse team that combines entrepreneurial spirit with seasoned experience. She emphasizes the value of having team members who are willing to take risks alongside those who have learned from past challenges, enabling creative and practical solutions.
"team that actually has instinct based on experience and it really informs how I think about the type of team I pulled together I want to have a mix of people who are extraordinary entrepreneurial will..."
The Right Choice in Crisis
Porat reflects on her decision to join the team advising the U.S. Treasury during a financial crisis. She stresses the importance of speaking up and making the right choices during critical times, highlighting that sometimes there is only one correct option in history.
"continued to be a pretty painful fall why did you decide to join that team it sounds I mean you're not one to shy away from work but it sounded particularly precarious well it was there was more to it..."
Your Voice Matters
Ruth Porat shares a powerful message about the importance of recognizing one's value in a professional setting. She encourages individuals to trust their perspectives and not second-guess themselves, as they were hired for their unique viewpoints.
"were being asked to help at a time that was so precarious for not just the US economy about the global economy and we had skills that would be relevant we should we should serve so message there is ea..."
Transitioning to Google
Porat recounts her transition from Morgan Stanley to Google, explaining her initial reluctance to take another CFO role. She describes how a conversation with Bill Campbell led her to consider the CFO position at Google, a company she had long admired.
"moving moving a little bit ahead - there's so much to cover I think so you tell me let's see so February 2015 also correct my days upon writing the Morgan Stanley ship you went on to serve as CFO for ..."
Instilling Financial Discipline
Ruth Porat discusses her approach to implementing financial rigor at Google, including setting business milestones and incorporating employee stock options into budgets. She reflects on the challenges of balancing discipline with maintaining the company's innovative culture.
"proud of and to leave Morgan Stanley and CFO there and like I don't want to just go do that and so I thought I knew I didn't want to just do that I didn't want to be a CFO and so I went to Bill Campbe..."
Investing for the Long-Term
Porat emphasizes the critical importance of long-term investment for sustainable success. Drawing from her experiences, she warns that neglecting long-term planning can lead to detrimental outcomes, a lesson she learned during her time at Morgan Stanley.
"amazing place to be when you joined Google was known for its slogan don't be evil less so it's processees arguably and you had the way to financial rigor including by having managers set business mile..."
The Importance of R&D
Ruth Porat shares a pivotal lesson from her career regarding the necessity of maintaining a robust R&D budget. She recounts a past experience that highlighted how essential it is to invest in research and development to ensure a company's independence and future success.
"on at Morgan Stanley I had the opportunity to work on an M&A deal the hostile defense of Gillette and that deal was subsequently written up in the book from good to great and the reason was so that wa..."
Data-Driven Decision Making
Porat discusses the significance of data in making informed business decisions. She advocates for providing teams with clear data to help them prioritize and make choices, emphasizing that analytical rigor is essential for effective leadership.
"for the long-term I think the other thing is people need to make choices and that sort of goes to the financial crisis I learned so many things working with Hank Paulson one of the things he said was ..."
The Quark Test
Ruth Porat introduces the 'Quark Test,' a principle she uses to ensure clarity in communication and decision-making. She explains that if someone cannot succinctly articulate their ideas, it indicates a lack of clear thinking, underscoring the importance of concise and data-backed presentations.
"choices and stack rank now obviously unless you squeeze the envelope tight enough nobody has to make choices so that's where probably the some of the nicknames come in but but but it for all of you th..."
Standing Together in Crisis
Porat reflects on a recent employee walkout at Google in response to ethical concerns regarding executive misconduct. She emphasizes her commitment to diversity, inclusion, and ethical leadership, stating the importance of unity and addressing issues collaboratively.
"express it in numbers you're probably not thinking clearly so the quark tests at Morgan Stanley and amongst my Google colleagues they they know what the quark test is and I think it's a really helpful..."
Lessons from Wall Street to Silicon Valley
Ruth Porat draws parallels between her experiences on Wall Street and her current role in Silicon Valley. She discusses the importance of applying lessons learned from the financial crisis to the tech industry, particularly regarding responsible investment and ethical practices.
"issues we're all in this together thank you it's an ongoing it's an ongoing discussion and and and that was very interesting to be able to to hear about it thank you you did mention it Harrison betwee..."
The Imperative of Long-Term Investment
Porat identifies the greatest vulnerability for tech companies as the failure to invest for the long term. She discusses how innovation and long-term thinking are crucial for sustaining success, using Google's early initiatives like 20% time and the moonshot factory as examples.
"that will address both of you know both either of those very important guiding principles and you bring up privacy privacy is a great example from the earliest days at Google there was a deep deeply f..."
Navigating Monopolies and Market Dynamics
In a discussion about the potential monopolistic nature of big tech companies, Porat emphasizes the benefits consumers experience from competition and innovation. She reflects on the vibrant ecosystem in tech and the importance of maintaining a balance between growth and regulation.
"in other places there are things that companies should and could be doing individually but I think I saw that on Wall Street as well some companies just kind of have in this and I wish it was yesterda..."
Identifying Vulnerabilities in Tech
Porat discusses the lessons learned from the financial crisis, particularly the need to identify vulnerabilities in technology companies. She stresses that neglecting long-term investment can lead to failure, drawing on historical examples to illustrate her point.
"quick aside I was a first year out of Stanford intern in the Civil Division so my answer has nothing to do that means Jen look I think that there's there's a lot of the question if the reality is when..."
The Evolution of Alphabet's Vision
Reflecting on the restructuring of Alphabet, Porat explains how the company's focus has shifted to address challenges and opportunities. She highlights the importance of allowing Google to concentrate on its core mission while exploring innovative projects through other bets.
"and focus on innovation so if you look at the companies in technology that were the leaders 20 years ago most of them are not still the leaders and so it really is this imperative around investing for..."
Traits for Success Across Industries
Porat shares insights on the traits that have enabled her success in both investment banking and as CFO of Alphabet. She emphasizes clarity of thought, the importance of using one's voice, and the value of having sponsors who can open doors in one's career.
"getting pulled into short termism how does alphabet when you restructure it it in 2014 15 15 thank you how does alphabet when you were stretch in 2015 the vision that you had for alphabet then how doe..."
Delivering Bad News with Calm
In a candid moment, Porat reflects on her reputation for delivering bad news during the financial crisis. She discusses the importance of truthfulness in communication and how maintaining a calm demeanor can help navigate challenging situations in leadership.
"it's been a lot oh I've been counting so you you personally spent almost 30 years on Wall Street where you grew and businesses and stabilized ones on the brink of crisis and you're now here in Silicon..."
The Role of Voices in Leadership
In this segment, Porat shares insights from Bill Campbell's book, emphasizing the need for leaders to hear from all team members, especially those who are quiet. She illustrates how creating an environment where every voice is heard can lead to innovative ideas and better decision-making.
"period what was fascinating to me about him is he kept wanting to get the bad news and I felt when not that he wanted to get bad news he wanted to get what I thought was truth let me put it that way I..."
The Art of Sponsorship
Porat elaborates on what she looks for in a sponsor, emphasizing the importance of intelligence, ethics, and mutual benefit in the relationship. She recounts her early career experiences and how she learned to seek out mentors who could help her grow while also benefiting from her contributions.
"time-honored tradition here at the GSB well we got to do it well okay might you indulge me yes please go so Donald Trump calls he needs a leader who knows markets and technology no one better than you..."
Learning from Difficult Leaders
Ruth Porat shares a personal story about working with a challenging but brilliant leader early in her career. She explains how this experience taught her the value of perseverance and the importance of learning from those who push you to excel, even in tough situations.
"sponsor what were the things that you looked for in a sponsor that you identified someone who is smart and extremely ethical so when they were solving a problem they were thinking about what I also ne..."
Public vs. Private Sector Leadership
Porat compares her experiences in the public and private sectors, discussing the unique challenges each presents. She emphasizes the importance of being mission-driven and using data analytics to inform decisions, regardless of the environment, highlighting the need for effective problem-solving.
"career I was so grateful to somebody who was a sponsor so grateful for all the doors that he was opening and then I realized you know what he's getting at least as much out of this as I am because I'm..."
Transformational Bets at Google
In this segment, Porat discusses Google's approach to making large transformational bets, including acquisitions and strategic investments. She stresses the importance of long-term thinking and innovation, particularly in areas like cloud computing and machine learning, to drive future growth.
"lead and shape our world it's a great question like for me one of the most important things is to find a place where you care about the mission of the organization you're part of whether it's in the p..."
Investing for the Long Term
Ruth Porat emphasizes the necessity of investing for the long term in technology. She discusses various areas where Google is focusing its investments, including cloud services and health technology, and explains how these efforts are crucial for improving lives and ensuring future success.
"I don't view them as ads distinct because it's problem-solving for something that's important hi Ruth I had a question around the large bets that Google continues to make so Google consistently is obv..."
Reimagining Urban Life
Porat touches on the innovative projects like Sidewalk Labs that aim to rethink urban living. She discusses the potential benefits of self-driving cars and how reimagining city infrastructure can lead to better resource allocation and improved quality of life.
"way where we're all using devices today and how do you think about what are these home devices and have searched was its desktop its mobile it's also what are the home devices the one has that enable ..."
The Role of a Senior Sponsor
In this closing segment, Porat reflects on her current role as a senior leader and the importance of being a sponsor for others. She discusses how she allocates her time to mentor and support emerging leaders, emphasizing the reciprocal nature of sponsorship in professional growth.
"last question please can people hear you though the oak hole with sidewalk labs yes [Laughter] could you talk about being a sponsor now that you're more senior and how you decide to allocate that time..."
The Role of Sponsorship in Careers
Ruth Porat shares her insights on the importance of being a sponsor in the workplace, especially in senior roles. She discusses how she allocates time to mentor and support her team, emphasizing the value of structured conversations about career paths. Porat reflects on her own experiences with sponsorship and the impact it has had on her career.
"promise but like when you said 500 my god there's a lot going on in the world of reimagining what can life be let alone the number of lives that can be saved when you go to self-driving cars but you h..."
Embracing Uncertainty
As she engages with graduating students, Ruth Porat encourages them to embrace uncertainty in their career paths. She shares her own journey and the unexpected opportunities that arose. Porat emphasizes the importance of being open to learning and growth, regardless of whether one chooses tech or finance.
"but then I'm also sending out a note to all of my team that's okay I just finished that if I have the time to do it I want my team to be doing it with their team and so ensuring you're in a place wher..."
Choosing Your Path: Tech vs. Finance
In a lightning round, Ruth Porat discusses the decision between pursuing a career in tech or finance. She advises students to focus on the quality of their experiences and the people they work with, rather than strictly choosing one path over the other. Porat highlights the importance of learning and personal growth in any career journey.
"I'm fine you are our last hope for our final view from the top wisdom I thought I'd ask you some questions that I know are keeping us all up at night are you are you ready for a lightning round sure g..."
The Regret Minimization Framework
Ruth Porat reflects on the concept of regret minimization, inspired by Jeff Bezos. She encourages students to take risks and pursue their passions without fear of failure. Porat emphasizes that the experiences gained along the way are invaluable, and that one should not shy away from opportunities due to potential regrets.
"of the view I wouldn't have had this opportunity had I not done my prior one and one thing led to another so I'm not trying to skirt your answer but I really think it is more about the people and qual..."
AI and Healthcare Innovations
In this segment, Ruth Porat discusses the transformative potential of AI and machine learning in healthcare. She shares examples of advancements in diagnosing breast cancer and how technology can enhance the capabilities of doctors. Porat expresses excitement about the future of healthcare and the role of data in improving patient outcomes.
"ever regret something you've got plenty of time big data or bite-sized data I think there's a lot of is phenomenal that we're we're living in like we haven't talked that much about AI and machine lear..."
The Future of Technology and Society
Ruth Porat concludes by reflecting on the extraordinary times we live in, driven by technological advancements. She emphasizes the potential for innovation to address critical societal issues, from healthcare to transportation. Porat's vision highlights the importance of leveraging technology to create a better future for all.
"really to provide that kind of access to quality diagnosis amazing one more story I was with a doctor recently and I asked him about this and he said it's amazing the ability with the ability to see w..."