How do you explain why things don’t go as assumed?
Why are some organizations and leaders seemingly more successful?
Example Questions: Why is Apple so innovative? Why did Martin Luther King lead the Civil Rights Movement? Why did the Wright brothers succeed in controlled flight?
Key Discovery
A pattern exists explaining why some leaders and organizations inspire while others don’t.
Introduces The Golden Circle: Why? How? What?
The Golden Circle Explained
Terms Defined
What: Every organization knows what they do.
How: Some organizations know how they do it (their unique process or proposition).
Why: Very few know why they do what they do (purpose, cause, belief).
Conventional Communication
Most communicate from outside-in: What -> How -> Why
Inspired leaders and organizations communicate from inside-out: Why -> How -> What
Practical Example: Apple
Conventional: "We make great computers. They’re beautifully designed and user-friendly. Want to buy one?"
Apple’s Approach: "Everything we do, we believe in challenging the status quo and thinking differently. We just happen to make great computers. Want to buy one?"
Key Insight: People don’t buy what you do; they buy why you do it.
Biological Basis
Human Brain Structure
Neocortex: Corresponds to 'What'. Responsible for rational and analytical thought and language.
Limbic Brain: Corresponds to 'Why' and 'How'. Responsible for feelings, behavior, decision-making, has no capacity for language.
Communication Impact
Outside-in: Factual, detailed, analytical but doesn’t drive behavior.
Inside-out: Influences decision-making as it targets the limbic brain.
Case Studies
The Wright Brothers vs. Samuel Pierpont Langley
Wright Brothers: Driven by a belief in changing the world, despite lack of resources and qualifications.
Langley: Motivated by wealth and fame, despite ample resources and support.
Result: Wright brothers succeeded, Langley gave up after Wright's success.
Importance of Inspiring Belief
Purpose-driven employees and followers show more loyalty and dedication.