Leading in a Time of Transformation: Dean Sarah Soule on Rethinking the MBA

What is the value of an MBA today? How can students at Stanford Graduate School of Business be better prepared to lead in a world of rapid transformation? Those questions set the stage for “Rethinking the MBA in Real Time,” a conversation hosted by the Corporations and Society Initiative (CASI) on October 21 with the GSB’s new dean, Sarah Soule. Drawing on her background in organizational behavior, Soule explored how future leaders can cultivate not only competence, but also curiosity and courage as they navigate an increasingly unpredictable global landscape.

CASI student leader Dylan Ackerman began by asking how the challenges facing higher education today are shaping Soule’s priorities as dean. Soule noted that universities are under strain on multiple fronts due to issues that have been building for more than a decade.

Dean Soule pointed to the growing criticism of universities, sparked in part by publicized cases of academic misconduct and media narratives questioning whether academia still produces “good ideas”.  The problem, she explained, isn’t a lack of innovation, it’s identifying and recognizing what is truly important amid the overwhelming volume of publications and data, a challenge that has weakened public trust.

Soule also observed that there is growing skepticism about the purpose and benefits of a college degree, especially given its increasing cost. Families naturally wonder whether the major investment involved leads to stable and fulfilling careers. Concerns about “administrative bloat” and institutional inefficiencies have intensified the skepticism.

“I think all of this at the same time was happening when many Americans certainly were starting to question the value of higher ed.”

Dean Soule highlighted other pressures facing universities, from deep cuts in federal research funding to mounting uncertainty around student and work visas.  She noted that agencies such as the National Institutes of Health (NIH) and the National Science Foundation (NSF) are being “gutted,” with Stanford alone losing more than a hundred grants. Some of those grants were terminated for political reasons, creating ripple effects across academic budgets and research capacity. These challenges, she admitted, are among the issues that keep her up at night, alongside the tightening of H-1B and student visa policies that threaten the flow of international talent.

Yet, she framed this not as a crisis, but as a moment of reckoning, and an opportunity for institutions like the GSB to reaffirm their mission, rebuild trust, and reimagine how they prepare future leaders.

“I think part of what we need to do right now, we, meaning higher education, is decide what the new kind of social contract is with U.S. citizens, and with people abroad,” she said, posing this question. “What have we done for you lately?”

Soule expressed optimism about the GSB’s ability to demonstrate the enduring value of higher education. She emphasized that Stanford business graduates embody the school’s mission through their real-world impact, by launching ventures, creating jobs, and driving positive change not only in businesses in many industries, but also in government and educational institutions.

“We've got to be able to tell that story,” she insisted. “And telling that story is easier when we tell the stories of what alums of the GSB are doing and what you are going to be doing in the world.”

When asked how the GSB can ensure students remain prepared for a rapidly changing environment, Dean Sarah Soule shared insights gathered from her conversations with alumni during Stanford’s centennial events. She used the opportunity to meet with alums across industries to learn what skills and qualities they now look for in business school graduates and find out how the GSB can continue to equip students for success.

The answers, she said, were as varied as the sectors GSB alumni now lead. Yet one theme stood out: the pace of change. Many executives noted that what seems to matter most today may shift in a matter of weeks. This clearly emphasizes the need for adaptability as a defining quality of leadership.

“Having that kind of flexibility and agility throughout the early stages of one’s career” is key, she said.

Soule noted that alumni consistently stressed the importance of developing a basic fluency in emerging technologies, particularly artificial intelligence and large language models (LLMs). Students do not need to function as engineers, she said, but they must understand these tools well enough to lead teams and make informed decisions. Equally important are human abilities and strengths such as entrepreneurial thinking, grit, resilience, and the ability to pivot in response to change.

Alumni also highlighted leadership as a defining focus for the GSB. Beyond technical skills and knowledge, Soule explained, students must cultivate wisdom, judgment, and moral clarity, the deeper qualities that guide effective decision-making.

“I've also heard people use the term virtue, the moral compass to think deeply about those decisions that you will be making and being able to understand your own values.”

She noted that this emphasis on principled leadership closely aligns with CASI’s mission, which encourages students to recognize how their choices as business leaders shape society. Soule said that the combination of these capacities is what distinguishes GSB graduates and defines the enduring value of their degree.

“The kind of critical, analytical skills needed to make good, sound decisions, that's one piece of it. And another is the understanding that you, as a leader who's developed all these wonderful personal leadership skills, are not doing this in a vacuum, right? You have to be acutely aware of the context in which you lead.”

Soule spent time explaining the GSB Leadership Model, which she helped develop with another organizational behavior professor. Grounded in research and refined through alumni input, the model identifies five key competencies:

• Self-awareness: understanding one’s values, motivations, and biases.
• Perspective-taking: cultivating empathy for others’ experiences.
• Communication: mastering verbal, written, and nonverbal fluency, including active listening.
• Decision-making: exercising sound judgment informed by analysis and reflection.
• Context: recognizing that leadership unfolds within complex, shifting systems.

The elements that determine the context, Soule emphasized, are especially critical in today’s interconnected world.

“It's not enough to understand them,” she said. “You have to be able to navigate them and understand that they're rarely going to be aligned. And then finally have the courage to change them when you need to or when society needs you to do that.”

Soule stated that as the new Dean of the GSB the leadership model will be one of her priorities. She hopes to make it a more visible, defining element of the GSB experience for all students.

When asked about AI adoption at the GSB, Soule said the pace has been “staggering,” with nearly all faculty now using AI tools in their research, which in turn is driving rapid innovation in the classroom. Rather than mandating AI integration, the GSB is taking a bottom-up approach, encouraging faculty to experiment, share insights, and develop new courses organically.

She noted that Stanford’s access to practitioners from the tech, legal, and policy sectors gives the GSB a distinct advantage in bringing real-world expertise directly into the classroom.

“This is something that is actually unique here. A lot of our peers really struggle with this, and this is something that we should be very proud of.”

Soule closed by saying she believes AI will transform nearly every function within organizations, requiring future leaders to double down on judgment, wisdom, and ethics as they navigate this shift. She added that AI also raises urgent ethical and environmental questions.

“It's one thing to marvel at this wonderful technology, but I think we all should be thinking not just what AI will do, but what it should do, and what are the broader impacts of AI. We should be asking these questions.”

Soule’s message to GSB students was clear: leadership today demands not only analytical rigor and technological fluency, but also adaptability, moral courage, and an understanding of context. By embodying these principles, GSB graduates can reaffirm the enduring value of business education and lead with integrity and insight in a world that never stops changing.