STANFORD GRADUATE SCHOOL OF BUSINESS—Timothy Ling, president and COO of Unocal, spoke passionately about leadership (realize your weaknesses and actively listen to others), reflected on how his priorities have shifted (he doesn't work weekends so he can spend time with his three boys), and counseled students to appreciate their peers (three of his former classmates have played key roles in his career at Unocal) Sept. 12 during the first View From the Top speech of the academic year.

Today Ling, who earned his MBA at Stanford in 1989, heads one of the world's leading natural gas and crude oil exploration and production companies, but his career has taken some non traditional turns. Before coming to Stanford, he worked as a scientist for the U.S. Geological Survey and planned to start a small oil company. Following graduation, however, Ling's career took an eight-year detour to McKinsey, where he worked as a consultant, making partner in five years. When he did eventually switch back to the oil business, it was to become the CFO of Unocal.

Leadership Lessons

Going from a consultant to a leader of an $11 billion enterprise has had its challenges Ling admits. If you think you've made a few missteps in your job, consider Ling's experience at a meeting scarcely a month into his tenure at Unocal. After Ling made a blunt comment about the nature of the oil business, a board member swiftly escorted him out of the room and threatened to fire him if he heard a remark like that again. Then he told Ling why. "He really helped me understand what my responsibility was, what my perception was, and the magnification of my words because of the situation I was in. That type of coaching was uniquely foundational," said Ling.

Coaching and listening, it turns out, have become the cornerstone of Ling's leadership style. He first learned the importance of people skills at age 19, when, due to financial problems, he took time off from college. Working at a factory, Ling managed employees who were older and more experienced than he and realized that he needed to understand what motivates people and how to gain their trust to be a successful manager. At Unocal that lesson has become even more important. "Ultimately, you can't figure out the right things to do unless you can really parse out what's going on in the minds of your organization. …If you haven't developed the ability to really understand and squeeze out of these people what's worrying them, what the reality of the businesses are, you've got a problem."

And while most people don't like talking about their weaknesses, said Ling, embracing your vulnerabilities is a critical aspect of winning leadership. "If you want to truly develop as a leader, you don't want to focus on what you're good at…. Only when you actually open the kimono to your vulnerabilities, can you absolutely start saying, 'Okay, that's something I've got to get better at.' …When you know your weakness, you know the kind of people you want to put on your team, " Ling said.

Personal Reflection

Reflecting on his personal life, Ling counseled students to chase goals for the right reasons and find balance in their lives. For him, goals like earning a huge salary and being on the cover of a magazine have been replaced over time by spending quality time with family and seeing his employees thrive. "It's the satisfaction of seeing groups you've sponsored succeed. If there's something you can get addicted to, it's small victories." Ling also adheres to a strict no-work-on-weekends policy so he can spend time with his three young boys.

Corporate governance might put some to sleep, Ling joked, but he couldn't resist hitting on the importance of having a strong moral compass. "The deepness of those values embedded in you only gets tested when you're truly in situations where those values can cause sacrifices," said Ling. "If you don't have those values deeply embedded in you, it's really easy to say, 'I don't want to know about it, but let's get it done.' Values will always be a foundation about how you lead and how people you're leading think about you."

Ling's Lessons for Stanford MBAs

Ling was enthusiastic throughout his speech but especially enjoyed talking about his time at Stanford and advising students on how to get the most out of their two years in the MBA program.

First, he advised, make getting to know your classmates a priority. "This group of friends, allies, confidants, and partners is going to ultimately develop into a group of business partners," he says. "From day one, recognize this." For Ling, this has certainly proved to be true. The second largest owner of Unocal is Ling's former classmate. Another sits on the board and still another was the principal in a major Russian oil deal Ling just completed.

One more key piece of advice: get the most out of the experience but don't make it a grind. "It's still table stakes to know accounting and finance," but he adds, "open your arms wide." Also, he counsels students to take advantage of leadership opportunities - both grabbing them in study groups and clubs and observing classmates in them.

Of course, hindsight is always 20/20 but Ling admitted there are a few things he wishes he had known during his MBA days. Playing four intramural sports (especially inner tube water polo), like he did, was "overdoing it." At the same time, he said, it's important to remember to try new activities especially ones you might not be good at because "the safety net is so intact" in the low-risk environment of school. "Get out of the comfort zone…You ought to always be in a high wire act, personally and academically."

As for job tips? Ling has some unconventional advice, especially from a former consultant. "Don't follow the vortex," he counsels. As a scientist, Ling had literally never heard of consulting firms such as McKinsey or JP Morgan before coming to Stanford. But three months into school, all his classmates did was talk about the importance of securing an internship at a big bank or consulting firm so he followed suit. In retrospect, he said "nobody can remember their summer job…[It is the same] with your first job out. You can avoid the vortex and do some really special things."