What It Takes: Lessons in the Pursuit of Excellence

by Stephen A. Schwarzman

Since this was a company that made loans to students, I figured one place to start was with universities. Harvard had the largest university endowment, so as a recent graduate, I called and got an appointment with Harvard’s treasurer, George Putnam. Putnam was the head of Putnam Investments, a giant mutual fund company he had founded in the late 1930s. For a first-year banking associate with his little road-show book begging for an investment, meeting Putnam was like meeting one of the gods of New England. I opened my pitch book and began my windup. “Mr. Schwarzman,” said Putnam, interrupting me. “Can you please close your book?” I closed the book, nervously. “Mr. Schwarzman, have you ever heard of the UJA?” The UJA, the United Jewish Appeal, three letters it never occurred to me would be crossing George Putnam’s lips. “Yes, I’ve heard of the UJA.” “Have you ever heard of card calling?” Card calling was a common practice at the UJA’s fundraising dinners. The chairman would call out the names of all potential donors, announce what they gave last year, and everyone would listen for what they were going to give this year. It was a way to create a level of expectation and apply peer pressure. “Let’s start this meeting over, Mr. Schwarzman. You say, ‘Mr. Putnam, you’re the treasurer of Harvard University, and I’m starting the largest—what will be the largest—student loan lending business in the United States, and I’ve got you down for $20 million.’ Now, say that.” I said it. “T...

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