The last time Microsoft CEO Steve Ballmer walked into Bishop Auditorium at Stanford University, he was a first-year student. Today, he shared some insights from his 27 years as a business leader at Microsoft.

During a lunchtime discussion attended by more than 450 enthusiastic students from Stanford’s business and engineering schools, Ballmer provided real-world advice on business leadership, management and the opportunities ahead for Microsoft. The discussion was one of the highlights of Ballmer’s day-long visit to Silicon Valley on Thursday.

Ballmer sprinkled his advice throughout the hour-long gathering, which was moderated by Robert Joss, dean of the Stanford Graduate School of Business. He told the students that one of the keys to successful business management is the ability to maintain balance – “manage the yin and yang” – in key areas, such as people and project management and business outlook. He talked about the importance of helping employees stretch their skills while still holding them accountable. Leaders have to be well-versed in the key issues the company faces, but not micromanage each issue. They need a genuine sense of optimism in their company while still remaining realistic about its prospects. If not, they lose the respect of employees and the media, he said.