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Steve Friedman from Rockstar Excel demonstrates how to standardize names in Excel by combining data from different sources with varying formats. Names are typically found in three formats: first name followed by last name, last name comma first name, or first and last name in separate columns. Using separate columns is recommended for flexibility. Friedman suggests using three columns for first name, last name, and full name. Redundancy is not an issue and allows for easier data manipulation. He then shows how to combine separate columns into the full name format.