Ever wondered why some organizations, like Apple or Wal-Mart, skyrocket to success while others fade into oblivion? How did companies like Southwest Airlines maintain their purpose even after the departure of their founders? Ever pondered over the invisible force that inspires people and creates value within a company? Dive into the world of the 'Golden Circle', a concept that can revolutionize your understanding of leadership, motivation, and success. Are you ready to uncover the power of 'Why'?

Start with Why

The Wright brothers, Apple, and Martin Luther King Jr. have one thing in common: they all started with ‘why’. They were not the most resourceful, but they had a purpose and a vision that inspired people and changed the world. 

Have you ever wondered why some people become natural leaders while others don't? The truth is, anyone can learn this pattern of inspiring leadership. The Wright brothers, despite lacking funds and formal education, changed the world with their first manned flight. Their secret? They started with ‘why’. They were driven by a deep passion for flight and inspired others to share their vision. 

The same pattern can be seen with Apple. It wasn't just about creating personal computers; Steve Wozniak and Steve Jobs aimed to level the playing field and change how the world operated. Their ‘why’ was to empower the individual. And guess what? Apple did just that, repeating this pattern over and over again, challenging conventional thinking and inspiring others. 

Dr. Martin Luther King Jr. also started with ‘why’. His vision was not only to bring civil rights for all but to inspire a nation to change for the good of everyone. His message of "I have a dream" resonated deeply with people, not because they had to, but because they wanted to be part of the change. 

Don't you find it fascinating how these leaders, regardless of their field or industry, all share this common pattern of starting with ‘why’? What if we all could learn to adopt this pattern, to inspire and be inspired? Imagine a world where over 80% of people love their jobs, where trust and loyalty are customary, where companies are stronger and economies more robust. 

Can 'Starting with Why' Be the Secret to Inspirational Leadership and Success?

On a chilly January day, a 43-year-old man was sworn in as the chief executive of his country. Can you guess who it was? If you assumed it was JFK, you're mistaken. It was Adolf Hitler. The point? We make assumptions, often based on incomplete or false information. This affects our behavior and decisions. 

In the same vein, we make assumptions about why certain organizations succeed and others don't. We want to make educated decisions, and some of us gather data formally (through polls or market research) or informally (from friends or personal experiences). But even with data, not all decisions are right. They are based on our perception of the world, which may not be entirely accurate. 

Think about an example from the automobile industry. American car executives visiting a Japanese assembly line noticed that there was no worker adjusting the doors to fit perfectly as they did in America. The Japanese had designed the doors to fit from the beginning. The difference between adjusting and designing for fit exemplifies two approaches to decision-making. One is short-term, the other is long-term and requires understanding why things need to fit by design, not by default.

In today's market, customers can buy almost any product or service from someone else at a similar price, quality, level of service, and features. Many companies can't explain why their customers choose them over others. 

Companies can influence human behavior through manipulation or inspiration. Manipulation includes techniques like price manipulation, promotions, fear tactics, aspirational messages, peer pressure, and novelty. While manipulation works and can lead to short-term success, it doesn't breed loyalty, costs more over time, and increases stress for both the buyer and seller.

Consider the example of the American car industry. They relied heavily on manipulations to build their business. When the 2008 oil crisis hit, their promotions and incentives became untenable. Without a loyal customer base, they suffered. 

The economic crisis of 2008 serves as a stark example of the dangers of manipulations. The collapse of the housing market and the banking industry were due to decisions based on manipulations. Employees were manipulated with bonuses that encouraged short-sighted decision-making. Loans encouraged aspiring homebuyers to buy more than they could afford. 

Manipulations can become addictive because they work, and they're widespread. They have become a mainstay in American business, and the system pressures us to use them. However, they weaken organizations over time and raise stress levels. 

Decoding the Dangers of Manipulation: The Hidden Costs of Short-term Success

In the world of leadership and motivation, there is a naturally occurring pattern that can inspire change and action: The Golden Circle. 

The Golden Circle finds order in human behavior. It helps us understand why we do what we do. The rings of The Golden Circle start with WHY and moving outward towards HOW and WHAT, respectively. It asserts that we can achieve more if we start everything we do by asking WHY. 

Take Apple Inc., for instance. Their success isn't typical. Their innovative streak, combined with their ability to attract a cult-like following, is a great example of the principles of the Golden Circle in action. Rather than focusing on what they do or how they do it, their message starts with why, a purpose or belief. This belief is what has given Apple a disproportionate influence in the market and what inspires customer loyalty.

The Golden Circle concept explains customer behavior in a way that’s not just valuable for changing the world. It also has practical applications for improving leadership, corporate culture, hiring, product development, sales, and marketing. It can even explain loyalty and how to turn a simple idea into a social movement. 

Great leaders and organizations are those who start with WHY. Their ability to communicate what they believe gives them the ability to inspire us. These leaders win hearts before minds. They are the ones who truly understand the art of leadership is about following your heart. 

When companies fail to communicate their WHY, it leaves consumers with nothing but stress or doubt. But when they start with WHY, communicating their beliefs clearly, consumers feel a kinship with them. A company's product or service becomes a symbol of the values and beliefs they hold dear. 

In the end, people don't buy WHAT you do; they buy WHY you do it. This isn't a rational decision, it's a matter of belief. It's not about the price, features, service, or quality. It's about the cause the company or brand represents. This is the power of the Golden Circle. This is the power of WHY. 

Are You Harnessing the Power of the Golden Circle? Why Your 'Why' Might Be the Key to Success?

Nature always strives to find balance, and so should we. This principle permeates the Golden Circle concept. 

Let's start with Clarity. Do you know WHY you do WHAT you do? If you can't articulate this, how can your team, your customers, or your voters understand your purpose? To inspire, we need to start with the clarity of WHY.

Next, we have the Discipline of HOW. Once you know your WHY, you need to figure out HOW to bring it to life. This can be seen in the systems and processes within an organization and the culture. For instance, do your values guide your actions? Can you hold your organization accountable to these guiding principles? 

Then, we have Consistency of WHAT. Every action you take should validate your WHY. If you can't consistently demonstrate what you believe through your actions, how can anyone trust you?

Consider Apple, for instance. They believed in challenging the status quo and we understood that. Because of this mutual understanding, we view their products as authentic. Their success is built on this authenticity, something that can only be achieved with clarity of WHY. 

Now, imagine doing business like dating. You wouldn't start a date by showing off your credentials, right? Similarly, in business, you need to communicate your WHY before you talk about your WHAT. It's about building a relationship based on values and beliefs, not just showing off your resume.

Finally, remember that the decision-making process is not just about thinking, it's about feeling. Successful entrepreneurs trust their gut. But to scale this, you need to put your WHY into words. This provides emotional context and a clear understanding for those around you. 

Balancing the Golden Circle: The Power of WHY in Inspiring Action

In the late 1980s, Continental Airlines was a disaster. Employees felt mistreated, customer satisfaction was low, and the company was facing bankruptcy. In 1994, Gordon Bethune took over as CEO. Bethune believed in caring for employees first, echoing the philosophy of Herb Kelleher, the head of Southwest Airlines. This belief was revolutionary: happy employees create happy customers, which in turn please the shareholders.

Bethune transformed Continental's toxic culture. He made the workplace more enjoyable and emphasized the importance of teamwork. He also implemented a bonus program that rewarded all employees for the company's success, fostering a sense of unity and shared goals.

Trust is crucial in any organization. It's not just about fulfilling responsibilities; it's about creating a feeling of mutual respect and shared values. Trust emerges when people feel that the company or person they're dealing with has motives beyond their own self-interest. Trust creates value because it's tied to a shared belief or purpose.

Just like in business, trust is key to societal advancement. We trust people who share our values and beliefs. This trust allows us to take risks and contribute to the collective good. This is why great companies don't just hire skilled people; they hire people who believe what they believe.

Let's consider Martin Luther King Jr. He didn't just have a dream; he had a strong sense of why that dream was important. His belief resonated with others who shared his values and dreams. This shared belief created a powerful movement that tipped the scales towards civil rights in America.

Similarly, companies need to give their employees something to believe in. They need to create an environment where great ideas can happen, where people feel they're part of something bigger. This is how companies like Apple inspire innovation. They give people a purpose, and this purpose drives creativity and progress. 

In contrast, companies that focus on what they do rather than why they do it often struggle. Take TiVo, for example. Despite having an innovative product, they failed to resonate with customers because they didn't communicate why their product was important. They focused on features and benefits, rather than sharing a belief or purpose. As a result, they failed to reach the tipping point of mass-market success.

Can Trust Spark a Company's Turnaround: Lessons from Continental Airlines, Wright Brothers, and more?

Imagine a stage. Onto it bursts Steve Ballmer, the charismatic successor to Bill Gates as CEO of Microsoft, his energy palpable. He's a crowd-pleaser, but what happens when he steps off the stage? Can his energy alone sustain a company of 80,000 people? 

Contrast this with Bill Gates, the shy, awkward genius who doesn't fit the stereotype of a corporate leader. When he speaks, people listen. His words inspire, they resonate long after he's finished speaking. Gates may not have Ballmer's energy, but his charisma shines through, inspiring audiences. It's not about his passion for computers, it's his belief that even the most complex problems can be solved. Gates embodies the idea that great leaders have a clear purpose or cause bigger than themselves.

Now, let's shift the scene to a small town in Ohio where a young Neil Armstrong dreams of flying. His path to becoming an astronaut seems destined. But not all paths are so clear. Take Jeff Sumpter, who fell into banking after a summer internship arranged by his mother. He's good at his job, but his passion isn't banking. It's his 'why' that gets him out of bed every day, his belief in a cause bigger than himself.

Bill Gates inspires with his 'why', his belief in the power of technology to unlock human potential. He may not have made PCs, but he saw why we needed them. Today, his work with the Bill and Melinda Gates Foundation reflects the same 'why', the same belief in removing obstacles to help people reach their potential.

The lesson here? Charisma comes from clarity of 'why'. It's conviction in a purpose greater than oneself. Energy may excite, but charisma inspires and commands loyalty. 

Consider the Wright brothers. Inspired by stories of flight, they dreamed of a world where taking to the skies was as easy as catching a bus. Similarly, John F. Kennedy rallied people around his belief in serving the nation. These leaders used their 'why' to inspire others to join them in bringing their vision to life. 

But a 'why' without a 'how' is just a dream. Consider Martin Luther King Jr.'s fight for civil rights. He dreamed of equality, but it was Ralph Abernathy who gave structure to that dream, showing people how to make it a reality. 

So, what's your 'why'? What bigger cause or purpose do you believe in? And who are the 'how' people who will help you bring your vision to life? Remember, great things happen when a group of believers rally around a common purpose, cause or belief.

Unlocking the Power of 'Why': The Charismatic Leadership of Gates, Armstrong, and King Jr.

In a dystopian gray world, hundreds of uniform drones were listening to a giant talking head, spouting propaganda of control and perfection. Suddenly, a blonde woman in red shorts and a white t-shirt bursts into the room, sledgehammer in hand. 

This was the scene of the 1984 Apple advertisement that launched the Macintosh computer. But it was more than just an ad; it was a manifesto, a symbol of Apple's belief in challenging the status quo and empowering the individual. 

Apple knows their WHY, and they make sure we know it too. Their advertising, their products, their partnerships, everything they do is a testament to their belief. Take their 'Think Different' campaign; it didn't just showcase rebels because they were rebels but because they embodied the same rebel spirit that Apple did. And Apple's ads never show groups, always individuals, because empowering the individual spirit is their WHY.

But as a company grows, the leader's role changes. They become the source of the message, the symbol of the company's WHY. Steve Jobs wasn't just the CEO, he was Apple's WHY personified. And it's the leader's job to inspire, to ensure that there are people in the team who believe what they believe and can bring that belief to life.

When a company's actions are in line with its WHY, it creates loyalty and trust. For example, Disney's actions consistently promote good, clean family fun, and that's why we trust them with our children. Southwest Airlines, with their policy of open seating, shows their belief in freedom and equality.

On the flip side, when a company's actions are not in line with its WHY, it can be jarring. Take Volkswagen’s introduction of a $70,000 luxury model. It didn't fit with their image as the 'people's car,' and people didn't buy it.

So, how can a company ensure that their actions match their WHY? By applying the 'Celery Test.' If your WHY is to do things that are healthy for your body, then when you go shopping, you're going to buy celery and rice milk, not M&Ms or Oreos. And when people see you with your celery and rice milk, they'll know what you believe. 

When you start with WHY, everything you say and do will resonate with those who share your beliefs. And that's how you build trust, loyalty, and a successful brand.

Does Your Company's 'Why' Resonate with Your Customers? How Apple and Disney Got It Right!

Sam Walton, the legendary founder of Wal-Mart, was driven by a clear purpose or a 'Why' - the belief that if he took care of people, they would take care of him. This belief propelled Wal-Mart to become a retail colossus with $44 billion in annual sales. 

However, after Walton's death in 1992, Wal-Mart gradually lost sight of its 'Why' and became fixated on 'What' it did – offering low prices. The focus shifted from serving people to maximizing profits, leading to a decline in the company's reputation and a series of scandals.

Similarly, when Bill Gates left Microsoft, the company lost its clarity of 'Why'. Gates founded Microsoft to empower people and make them more productive. However, after his departure, Microsoft became just a software company. In contrast, companies like Southwest Airlines have successfully maintained their 'Why' even after the departure of their founders as they ingrained their cause into their culture.

So, why is it crucial for companies to remember their 'Why'? Because 'What' a company does can be easily measured and tracked, usually in monetary terms. However, 'Why' a company does what it does is harder to articulate and measure, but it is what truly inspires people and creates value. It is the belief or cause that the company stands for. 

When a company loses sight of its 'Why', it suffers a split – the separation of tangible success (What) and intangible success (Why). This split can lead to a decline in inspiration, morale, and ultimately, success. Therefore, successful succession is about finding a leader who aligns with the original 'Why' and is ready to lead it into the next generation. 

Preserving the 'Why': The Secret to Sustained Corporate Success

In the midst of the Vietnam War-era Northern California, two young men, Steve Wozniak and Steve Jobs, envisioned a world where individuals could stand up against immense power. This vision ignited the creation of Apple Computer, a company designed to empower the dreamers and idealists to challenge and triumph over the status quo. 

Their journey began in 1971 when they created the Blue Box, a device that allowed people to avoid paying long-distance rates on phone bills. This was their first act of defiance against the monopoly power of Ma Bell, American Telephony, and Telegraph. A few years later, they began their revolution against the computer industry giants, including IBM, with their revolutionary Apple computers. 

By their third year in business, they had grown into a $100 million company, achieving billion-dollar status within only six years. Their success wasn't merely about producing quality products, it was about championing the creative spirit of the individual. Their WHY was to empower individuals, a mission that was reflected in all their products, services, and marketing.

Their story teaches us that success comes from understanding your WHY - your purpose, cause, or belief. It's about staying true to this WHY and inspiring others to join you in this mission. It's not about competing against others, but about striving to be better than you were yesterday, about inspiring people to do things that inspire them. 

Think about it, what if we showed up to work every day simply to be better than we were yesterday? What if our goal was to inspire people to do things that inspire them? If we all started with WHY, if our leaders started with WHY, decisions would be simpler, loyalty would be greater, trust would be commonplace, and innovation would flourish. 

How Did Steve Jobs and Steve Wozniak Use Their 'Why' to Triumph Over Giants and Revolutionize the Industry?

Understanding one's purpose, often referred to as "why," is crucial. This concept is applicable to leadership, where influential leaders like Martin Luther King Jr., Steve Jobs, and the Wright brothers started with a 'why' - a deep-seated purpose that inspired others. 

This principle also applies to organizations where the 'why' forms the foundation of their vision and influences their actions, leading to the creation of products or services that resonate with their purpose. Furthermore, a clear 'why' can foster loyalty and trust, encouraging employees and customers to align with the organization's vision.

Starting with 'why' holds immense value. This principle serves as a potent tool in leadership and business, fostering inspiration, loyalty, and trust. It emphasizes the pivotal role of 'why' in decision-making, asserting that it directly engages the part of the brain responsible for such choices, thereby influencing others on a deeper, emotional level. Discovering our 'why' and utilizing it to steer our actions and inspire others, leads to the creation of a more resilient and motivated world.

Trust also plays a crucial role in leadership and business, since it is an emotional response that arises when we sense that a person or organization is driven by more than self-gain. It is vital in building successful teams and fostering loyalty. 

The Golden Circle concept, which starts with 'WHY' and moves outward towards 'HOW' and 'WHAT', is a powerful tool for understanding and influencing human behavior. Notably, companies that communicate their 'why' effectively are seen to create deeper connections with consumers, fostering loyalty and trust.


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