This video introduces a framework called the "Golden Circle" which explains how inspiring leaders and organizations communicate and operate. It delves into the biological reasons why starting with "Why" is crucial for driving behavior and fostering loyalty.
The Golden Circle: Why, How, What
- Every person and organization knows What they do. This is the clearest and most tangible aspect.
- Some know How they do it, which involves their unique selling proposition, proprietary process, or differentiated value.
- Very few people or organizations truly know
Why they do what they do.
- "Why" is not about making a profit; profit is a result.
- "Why" refers to your purpose, cause, or belief. It's why your organization exists, why you get out of bed, and why anyone should care.
The Power of "Inside-Out" Communication
- Most people and organizations communicate from the outside-in: they state What they do, then How they're different, and expect a desired behavior (e.g., a purchase or vote). This approach is uninspiring.
- Great inspiring leaders and organizations (like Apple, Martin Luther King Jr., and the Wright brothers) communicate from the inside-out: they start with their Why, then explain How they bring that belief to life, and finally state What they do.
- Action Point: Frame your messages by starting with your core belief or purpose. Then explain the processes or methods, and finally, present your products or services as proof of your belief.
- Key Insight: People don't buy *what* you do; they buy *why* you do it. What you do simply serves as the tangible proof of your beliefs.
Biological Basis for "Why"
- The human brain's structure perfectly correlates with the Golden Circle:
- The neocortex (our newest brain) corresponds to the "What" and is responsible for rational, analytical thought and language. It processes facts and figures but doesn't drive behavior.
- The limbic brains (middle two sections) correspond to the "Why" and "How." They are responsible for feelings (trust, loyalty), all human behavior, and decision-making, but have no capacity for language.
- When you communicate from the inside-out ("Why" first), you're speaking directly to the part of the brain that controls behavior and decision-making. This explains "gut feelings" – when something "doesn't feel right" even if all the facts logically align.
- Action Point: Understand that decisions are often emotional and intuitive, driven by the limbic brain. Appeal to beliefs and feelings first, then provide rational details.
Attracting Believers, Not Just Customers
- The goal is not to do business with everyone who needs what you have, but to do business with people who believe what you believe.
- This principle extends to hiring: hire people who believe what you believe, and they will work with passion and dedication, not just for a paycheck.
- Example: The Wright brothers were driven by a belief to change the world, attracting dedicated individuals who worked tirelessly. Samuel Pierpont Langley, motivated by riches and fame, failed despite superior funding and talent because his team worked only for the money.
The Law of Diffusion of Innovation and the "Why"
- To achieve mass-market success, an idea or product must reach a tipping point of 15-18% market penetration.
- Innovators (2.5%) and Early Adopters (13.5%) are the ones who are comfortable making intuitive, gut decisions based on what they believe. They are drawn to the "Why."
- The Early Majority (34%) will only try something after others have tried it first.
- Action Point: Focus your communication on attracting innovators and early adopters who resonate with your "Why." These individuals are crucial for "crossing the chasm" and enabling mass adoption.
- Example: TiVo, despite being a superior product, failed commercially because it communicated "What" it did (pauses live TV, skips commercials), alienating the majority. Martin Luther King Jr. inspired 250,000 people by sharing his belief ("I believe, I believe, I believe"), attracting followers who shared his vision for a just world.
True Leadership Inspires
- Leaders hold a position of power or authority.
- Those who lead inspire us. We follow those who lead not because we have to, but because we want to; not for them, but for ourselves and what we believe.
- Key Insight: Inspiration comes from starting with "Why." Leaders who articulate their purpose and beliefs can ignite passion and loyalty in others.