https://m.youtube.com/watch?v=nokBj14p4Mc Quote: a leader has followers, that’s it All leaders have one thing, and one thing only: followers. That's it It has nothing to do with rank. It has nothing to do with intelligence It has nothing to do with seniority What is a follower A follower is someone who volunteers to go where you go Model: innovation vs novelty Real innovation changes the course of industries, if not the way we live our lives It is the difference between steps and leaps Anecdote: Colgate toothpaste Model: 2 ways to influence behaviour Manipulate Inspire Business manipulation: price Dropping price Promotions, 2 for one, free toy inside Value added Giving things away for free, to reduce someone's risk, so they'll choose you over the competition. And it works. Business manipulation: fear as all parents know Business manipulation: aspirational messages None of them breed loyalty. None of them create trust. And over time they cost more money. And over the course of time it increases stress. Both for the buyer and for the seller. Inspiration Eg Apple computers Southwest Airlines Martin Luther King John F. Kennedy Regardless of their size. Regardless of their industry. Every single one of these leaders. Every single one of these organisations. Thinks, acts and communicates the exact same way. And it's the complete opposite of everyone else. Model: Golden Circle Why How What Distinguishes those with the capacity to inspire versus everyone else (3) What Products you sell Services you offer (2) How Differentiating value proposition USP (unique selling proposition) Proprietary process These are the things, that you think, make you - different or - special or - stand out from the competition (1) Why Not to make money, that’s a result Purpose Cause Belief Why does your organisation exist? Do we really need another company to do what you're doing? Do we really need another one? How most people communicate: We go from the clearest thing to the fuzziest thing Outside in How inspirational leaders communicate: Inside out Outside in vs inside out examples Outside in Apple We make great computers They are beautifully designed, simple to use, and user friendly Wanna buy one? Outside in car Here’s our new car It’s got great gas mileage, leather seats, tinted windows Outside in lawyers Here’s our law firm We went to all the best schools, we’ve got all the best lawyers, we win all our cases, we work with all the big firms Inside out Apple Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use, and use friendly We just happen to make great computers. Wanna buy one? All competitors have defined themselves by what they do. “we make computers” Apple has defined themselves by why they exist. to challenge the status quo to give and individual the opportunity to stand up to big brother, and choose a simpler alternative Three things are required Clarity of why - You have to know why you do what you do Discipline of how - You have to hold yourself and your people accountable to your own guiding principles and your own values Consistency of what - Everything you say and everything you do, has to prove what you believe. This is the concept behind authenticity What authenticity means is that the things you say and the things you do, you actually believe We form communities and cultures Community Culture Country Company A group of people with the same values and beliefs When we’re surrounded by people who believe what we believe, trust emerges. Trust is a feeling. It’s an experience. Distinction: trust vs reliable Trust and reliability are unrelated Reliable = doing everything you say you’re gonna do Trust = a feeling born out of a common set of values and beliefs. Our very survival depends on our ability to find those people so that we can form trust. We're more likely - to take risks - to explore - to experiment Someone from within our community will come to our help, or watch our backs, or help us up. Without trust, we still have the will to survive. The difference is, it's every man for himself. In trusting groups When there is stress, the organisation comes together to solve the problem In groups without trust When there is stress we back off and the thing collapses. The most basic human desire is to feel like we belong. Find all the people who believe what you believe Strike up a conversation Dating Making friends Networking It’s not scalable. “every single decision we make, as individual or as organisation, is a piece of communication. It is our way of saying something about who we are and what we believe, in an attempt to attract people so that they may form trust with us and we may form trust with them.” We look for symbols Eg. Harley Davidson When you are in an environment, where you don't feel like you belong, you seek out anyone with the same values and beliefs as you so that you can start to form trusting relationships. You cannot replace these human experiences and these human feelings over the internet. Model: human brain has 3 parts Neo-cortex = outer section Rational thought Analytical thought Language Limbic brain = inner two sections Feelings (Eg. trust, loyalty) Behavior Decision making No capacity for language you can't ask people: why do you do business with us, why do you like us. They can't tell you. The part of the brain that controls behavior does not control language. So they rationalize. Leadership What you're able to do is to put into words the way they see in themselves. What you're able to do is to put into words the values and beliefs that they hold dear. And they are drawn to you because they feel that they can trust you and that they can start to form community around you. Leadership puts our own desires and our own values and our own beliefs into words. “There is an inextricably link between leadership and communication. Those who lead are the ones who can clearly talk about what they believe. And those who can clearly talk about what they believe are the ones who lead.” “When people believe what you believe, they will work for you with blood and sweat and tears. When people don’t believe what you believe, they work for your money.” “The goal is not to surround yourself with everyone who needs what you have. The goal is to surround yourself with people who believe what you believe.” Distinction: repeat business vs loyalty “There is a difference between repeat business and loyalty. Repeat business means I’ll do business with you over and over and over again. Loyalty means I’ll turn down a better product at a better price to continue doing business with you.” [[quote-prove-to-the-outside-world-who-i-am.md|Quote_ prove to the outside world who I am]] Well, you see. I see myself as someone who likes to challenge the status quo. And so it's very important for me to surround myself with all the people and the products and the brands to prove to the outside world who I am. Because I am using these things to tell people who I am. In an attempt to attract people who believe what I believe. So that I can start to form strong bonds of trust. Because my own survival depends on it. It is a symbol of who I am. Because Apple is so clear about what they believe, so disciplined in how they do it and so consistent in what they do. That symbol now serves as a representation of who I believe I am. And if I surround myself with enough of these symbols. And if I'm consistent enough, you'll know something about me. Model: Law of diffusion of innovation Bell curve: Innovators, early adopters,… 2.5% Innovators 13.5% Early Adopters 34% Early Majority 34% Late Majority 16% Laggards We all fit at various times at various reasons across this standard deviation Innovators & Early Adopters are very comfortable making intuitive decisions. Happily try new things Majority (early and late) is more practical. Care about price, quality, service, features. They will not try something until someone else has tried it first. Drop price Value added Promotions Reduce risk Model: the tipping point 15-18% market penetration (of people who believe what you believe) After, mass market becomes available. It’s easy to get 10% loyalty, love you Book: crossing the chasm - Jeffery More The chasm is between 10% and the tipping point Model: four reasons for a product or company to fail Didn’t have enough money Poorly executed / didn’t have a good product Bad people / wrong people Bad market conditions He gave the 'I have a dream' speech, not the 'I have a plan' speech. Nobody was inspired by any plan, ever. Model: para-social relationships Q&A (1) Can you talk some more about ‘How’? How is about process and structure. It’s about how we do things. What = tactics How = strategy We set a goal (what) and figure out a strategy to get there (how) If we miss the goal, we either change the goal or change the strategy. Why = vision / purpose / cause How they are going to do that, what they are going to do, is all driven by why. Not by the goals. The goals are the waypoints All three are equally important (why, how, what) Every organization on the planet, functions on all three levels. But most of us are only even aware of two of them. Quote: Vision without execution Vision without execution is hallucination -- Thomas Edison Model: Leader = visionary + great commicator (48:00) (2) Does why evolve? (48:20) No Model: you have only one why Model: why does not change Companies is the same. At the founding of the company, the why is born. A company is one of the things that an entrepreneur has done, to bring to life something they believe. The great companies, usually solved a real human problem. The companies that really struggle to survive, are the ones who are just looking for some market opportunity, and they pour money into it, because they can't rally people to commit to anything. They can't rally people to sacrifice. Model: partnership between how and why (51:00) Examples Steve Jobs & Steve Wozniak Bill Gates & Paul Allan Walt Disney & Roy Disney Grew up together / brothers Great partnerships are usually childhood friends or family. The quality of the relationship, and the trust, and the fact that you share common values and beliefs is much higher if you grew up the same way. (3) How does a company survive it’s founder? (53:50) Model: the split “The biggest challenge any organization has, is it’s own success.” Founded: what and why are linked Success: they split ![[./resources/video-start-with-why-simon-sinek.resources/enimage1609351817772.jpg]] Symptoms of the split More obsessed with what the competition is doing than what you are doing Asking others what you should be “the whole concept of ‘asking our customers what they want’, thw whole process is inauthentic, it’s either what you believe” Oldtimers start saying “yeah, it’s not like it used to be. I know we’re making more money than we used to, and I know we’re growing faster. But I dunno, it’s just not the same. The young ones don’t get it. I dunno.” Stress goes up, passion goes down Steve Jobs left Apple, Mike Dell left Dell, Howard Sheltz left Starbucks. And then they had to come back. “As they were the founders, simply being there, reminded people why they come to work.” [[model-dunbars-number-5-15-50-150.md|Model_ Dunbar’s number]] Model: company succession (51:00 ; 57:00) The greatest challenge companies have in succession is not to find someone to manage the company. It's to lead the people. The opportunity for succession, is not to hire the brilliant engineer. But to hire somebody who doesn't want to reinvent the why, but simply take the torch that was already lot and say 'now I will cary it into the next generation' Very, very few companies have gotten succession down. And the reason is, they take these visionary CEOs and replace them with the COO or the CFO. They take a visionary and replace it with a structure builder. As soon as I hear a CFO or COO, if they were good at their job, is taking over the company, it's going through a split, I promise. Eg. Apple: Steve Jobs -> Tim Cook