Why are some organizations or individuals consistently more innovative?
Examples: Why is Apple so innovative? Why did Martin Luther King lead the Civil Rights Movement? Why did the Wright Brothers achieve controlled powered flight?
Discovery of the Golden Circle
Concept: A pattern exists among inspiring leaders and organizations.
Golden Circle:
Why: Purpose, cause, belief.
How: Differentiating values or processes.
What: The actual product or service.
Main Idea: Leaders and organizations that inspire think, act, and communicate from the inside out (starting with 'Why') rather than outside in.
Communication Styles
Traditional Marketing:
Example: "We make great computers. Want to buy one?"
Apple's Approach:
"Everything we do, we believe in challenging the status quo. Want to buy one?"
Conclusion: People don’t buy what you do, they buy why you do it.
Biological Basis
Brain Structure:
Neocortex: Rational thought, language (corresponds with 'What').
Limbic Brain: Emotions, behavior, decision-making (corresponds with 'Why').
Implication: Effective communication should engage the limbic brain to inspire behavior.
Importance of Belief
Hiring Philosophy:
Hire those who believe what you believe.
Employees who share beliefs will be more committed and motivated.
Examples of Success and Failure
Wright Brothers vs. Samuel Pierpont Langley
Wright Brothers:
Driven by a belief in changing the world through flight despite no funding or formal education.
Langley:
Well-funded, well-connected, but driven by personal gain (wealth and fame), which led to his failure.
Law of Diffusion of Innovation
Stages:
Innovators (2.5%), Early Adopters (13.5%), Early Majority (34%), Late Majority (34%), Laggards (16%).
Tipping Point:
Mass market success occurs between 15% and 18% market penetration.
Examples of Commercial Success and Failure
Failure: TiVo
Challenges:
High-quality product but failed to connect with consumers on an emotional level.
Marketing Mistake:
Focused on features rather than understanding consumer beliefs.
Success: Martin Luther King Jr.
Inspiration:
Spoke of beliefs and ideals, attracting those who shared his vision.
Not just a great orator but a leader who inspired action based on shared beliefs.
Conclusion
Leadership vs. Authority:
Leaders inspire others to follow voluntarily, rooted in shared beliefs.
Final Thought: Start with 'Why' to inspire action and attract followers who believe what you believe.