Lecture Notes: The Importance of 'Why' and the Golden Circle

Introduction and Key Questions

• Main Questions:
  • Why do some achieve what seems to defy assumptions?
  • Why is Apple so innovative, year after year?
  • Why did Martin Luther King lead the Civil Rights Movement?
  • How did the Wright brothers succeed in powered flight over better-funded teams?

Discovery of a Pattern

• Key Insight: A pattern exists in how inspiring leaders and organizations operate, termed the "Golden Circle."
  • The Golden Circle: Consists of three questions: Why? How? What?
  • This approach explains why some leaders and organizations inspire more than others.

The Golden Circle Explained

• What: Every organization knows what they do.
• How: Some know how they do it - their unique selling proposition or process.
• Why: Very few know why they do what they do.
  • "Why" refers to purpose, cause, or belief - not profit.
  • The focus is on the inner purpose and belief, which should guide actions, not just results.

Case Studies

• Apple Example:

  • Traditional marketing focuses on what and how (e.g., great computers, user-friendly design).
  • Apple's approach: "Everything we do, we believe in challenging the status quo."
  • People buy from Apple not because of what they sell but why they do it.

• Wright Brothers:

  • Driven by a belief in changing the world.
  • Had no money, formal education, or media support – succeeded due to their strong "why."
  • Compared to Samuel Pierpont Langley, who had resources but was motivated by fame and profit.

Biological Basis

• Human Brain Structure:
  • The neocortex correlates with the "what" level - responsible for rational thought and language.
  • The limbic brain correlates with the "why" - deals with feelings, decision-making, and behavior without language capacity.
  • Effective communication targets the limbic brain, driving behavior and loyalty beyond facts and figures.

Law of Diffusion of Innovation

• Adoption Categories: Innovators, early adopters, early majority, late majority, and laggards.
• Mass-market success requires tipping point (15-18% market penetration) for widespread acceptance.

Examples of Success and Failure

• TiVo's Failure:

  • High-quality product but failed commercially due to uninspiring marketing focusing on features.

• Dr. Martin Luther King, Jr.:

  • Inspired by articulating beliefs, not merely plans.
  • His message resonated because it aligned with the audience's beliefs and aspirations.

Conclusion

• Key Takeaway:
  • Leaders and organizations that start with "why" inspire others.
  • Success is not based on what you do, but why you do it, which attracts those who share your beliefs.
  • Leadership and inspiration are about belief and purpose, not just plans and strategies.