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	REMARKS TO BUSINESS STUDENTS KANSAS STATE UNIVERSITY, 22 February 1989

[Handwritten addition: OSU Sat. Appreciate the packed house.]
Thank you, Dean [Handwritten addition: Randy] Pohlman (Pullman). [Handwritten addition: First time to Manhattan OSU '51 Jack Hartman —
Questions — open season on Boone —]
I enjoy speaking to young people... I've talked with them at universities on the East Coast, the West Coast and various points in between.
The enthusiasm I've seen in the 70,000 to 80,000 students I've spoken to in the past 5 years is reassuring.
You are the future of this country, and I feel optimistic about where you're headed.
Looking around in my travels, I've noticed a few common denominators among today's young people:
— Willing to work hard
— Want to make money
— Want to avoid big bureaucratic companies
— Want to make their own decisions
— And they want government involvement
For over two hundred years, people have moved to the U.S. for the same reason:
— The freedom to succeed... or to fail and be able to try again
America's greatest asset is an abundance of opportunity.
Education is [Handwritten addition: one of] the key[Handwritten addition: s] to success. We must make sure all students get a chance to obtain the key that will open the door they choose.
The entrepreneurial spirit seen on college campuses and in growth companies is good news for American business and good news for America:
— The Good Ol' Boys Club is on the way out (Explain Pay, Perks, Power & Prestige)
A new breed is coming in.
A recent Wall Street Journal article reported that almost half of the college students surveyed said they thought starting their own business was a good way to succeed.
[Handwritten addition: Tough way to do it — get some experience]
When people from my generation were asked the same question, [Handwritten addition: by the WSJ] only 20% said it was a good idea.
I get asked frequently, “How can I do what you've done?”
First, get a good education, get prepared... (Cowboys’ Quarterback)
Stay fit . . . It makes a big difference on your outlook, your ability to think clearly.
Learn to analyze well:
— Assess the risks
— Assess the prospective awards
There's a lot said about instincts and gut feelings, but those won't work if you don't have the background to make a decision.
The next step is very important. Once you've made your analysis, don't be afraid to make a decision.
One of the most common problems in business is the "Ready-aim-aim-aim-aim" syndrome:
— You must be willing to fire
This doesn't mean you should get in a rush; it took me more than 20 years to build Mesa Limited Partnership... (Opportunities, like trains, come by regularly).
Always be realistic, Entrepreneurs are dreamers, yes, but dreams don't generally come true without planning:
— Don’t get caught daydreaming
Another important point is, don’t forget what drives people in business:
— Profit is the key motivator; don't ever apologize for making money honestly
The profit motive is why people buy Mesa stock or any other stock. My role as General Partner is to maximize shareholder returns.
[Handwritten addition: I am an employee of the stockholders —]
That leads me to the biggest problem in Corporate America today.
The incentives of entrepreneurship do not exist in our large corporations.
Managements don't always have the shareholders’ interests at heart.
We must reestablish that shareholders are the ownem of public companies, and managers are employees.
Accountability to owners is the key to restoring America’s competitiveness.
The expansion of inefficient corporate bureaucracies has stifled entrepreneurship and destroyed morale.
In my day (1950s), young people flocked to large corporations for job security. Today, they are avoiding the bureaucracies and taking risks, which is leading to a more competitive business climate.
[Handwritten addition: Don’t be afraid to take a look at them. I did — Gulf PPCo Unocal etc.]
The secret to attracting and keeping the best employees is to challenge them, give them as much responsibility as they can handle and reward them for their efforts.
[Handwritten addition: Like football coach — must have the players.]
To illustrate the concepts I've been talking about, let’s look at Mesa’s structure:
— 95% of employees are stockholders
— 90% of my net worth is in Mesa (5% ownership)
— We all know who we work for... the stockholders ($310 million a year)
— Our people move fast; either up or out. We can make mistakes, but we learn from them and we’re not afraid to make decisions
— Average age; 36 (Would be lower if I left)
The most important thing you need to remember is, always play by the rules:
— Never think you have to cheat to win; you don’t even need to bend your principles
KSU Wildcats Steve Henson and LaKeith Humphrey are known nationally as great players... Cheating just once could ruin their future basketball careers.
There’s been a lot of talk about an ethics crisis in Corporate America.
We don’t have an ethics crisis: We have a leadership crisis... It all goes back to the top.
[Text stricken: You must lead by example. If you cheat anywhere along the line, you’ll set the tone for your fellow employees and you’ll end up paying dearly for it.]
Success comes from hard work. You’re going to have to come early and stay late.
But that doesn't mean you have to give up your personal life.
[Handwritten addition: Ex. TBP — Golf etc. — 4 stops today — yesterday weekend]
Learn to organize your time, and you’ll find there's time for everything.
[Handwritten addition: Make the bull sessions 10 min instead of 2 hours]
Have your fun, but do everything in moderation.
Keep success as well as failure in perspective.
In a nutshell, [Text stricken: if you][Handwritten addition: get a good education,]keep fit, work hard, analyze well, and play by the rules, I promise you you’ll make money and have fun doing it.
Thank you.
By the way... Good luck against OU in basketball tonight.

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