Lecture on "Why" and the Golden Circle

Key Questions

• Why are some organizations and leaders able to defy expectations and achieve notable success?
• Why is Apple consistently more innovative compared to its competitors?
• Why did Martin Luther King lead the Civil Rights Movement?
• How did the Wright brothers succeed in achieving controlled, powered flight before others?

Introduction to the Concept

• A pattern exists among great leaders and organizations: they think, act, and communicate differently.
• The concept is encapsulated in the "Golden Circle" which includes three layers: Why, How, and What.

The Golden Circle Explained

• What: Every organization knows what they do.
• How: Some can articulate how they do it (unique selling proposition, differentiated process).
• Why: Very few can state why they do what they do (purpose, cause, belief).

Importance of "Why"

• Profit is a result, not the "why."
• "Why" relates to purpose and belief, the reason to get out of bed.
• Inspired leaders and organizations communicate from the inside out, starting with "why."

Example of Apple

• Common message: "We make great computers." (uninspiring)
• Apple’s message: "We believe in challenging the status quo by making our products beautifully designed and user friendly."
• People buy "why" Apple does it, not "what" they do.

Biological Basis

• Human brain structure aligns with the Golden Circle:
  • Neocortex: Rational thought, analytical thought ("What").
  • Limbic brain: Feelings, trust, loyalty, decision-making, no language capability ("Why").
• Effective communication must target the limbic brain to drive behavior.

Case Study: Wright Brothers vs. Samuel Pierpont Langley

• Wright Brothers: Driven by a purpose to change the world, supported by people sharing their belief.
• Langley: Motivated by fame and wealth, lost motivation when beaten.
• Outcome: Success requires a shared belief, not just resources.

Law of Diffusion of Innovation

• Population segments: Innovators, Early adopters, Early majority, Late majority, Laggards.
• Success requires reaching the tipping point at 15-18% market penetration.
• Early adopters and innovators are driven by beliefs, not just product features.

Examples of Success and Failure

• TiVo: Failed due to focus on product features rather than beliefs.
• Martin Luther King: Mobilized people through shared beliefs, not detailed plans.
• Politicians: Often uninspiring due to lack of compelling belief-driven messages.

Conclusion

• Leadership is not about authority, but about inspiring others.
• Start with "why" to lead and inspire, creating followers who act for themselves, not for the leader.