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Some Impressionistic Take away from the Book of
Simon Sinek
Start with Why ?
Ramki
ramaddster@gmail.com
About the Author
 Simon is an unshakable optimist. He
believes in a bright future and our ability to
build it together.
 Described as “a visionary thinker with a
rare intellect,” Simon has devoted his
professional life to help advance a vision
of the world that does not yet exist; a world
in which the vast majority of people wake
up every single morning inspired, feel safe
wherever they are and end the day fulfilled
by the work that they do.
 Simon is the author of multiple best selling
books including Start With Why, Leaders
Eat Last, Together is Better, and The
Infinite Game.
 ... "Why are some people and organizations more innovative,
more influential, and more profitable than others?
 Why do some command greater loyalty from customers and
employees alike?
 Even among the successful, why are so few able to repeat their
success over and over?
 People like Martin Luther King Jr., Steve Jobs, and the Wright
Brothers might have little in common, but they all started with
why. It was their natural ability to start with why that enabled
them to inspire those around them and to achieve remarkable
things. In studying the leaders who've had the greatest influence
in the world, Simon Sinek discovered that they all think, act, and
communicate in the exact same way -- and it's the complete
opposite of what everyone else does.
Prelude
 Sinek calls this powerful idea The Golden Circle, and it provides a
framework upon which organizations can be built, movements can be
lead, and people can be inspired.
 And it all starts with WHY. Any organization can explain what it does;
some can explain how they do it; but very few can clearly articulate why.
 WHY is not money or profit--those are always results. WHY does your
organization exist?
 WHY does it do the things it does? WHY do customers really buy from
one company or another?
 WHY are people loyal to some leaders, but not others? Starting with
WHY works in big business and small business, in the nonprofit world
and in politics.
 Those who start with WHY never manipulate, they inspire. And the
people who follow them don't do so because they have to; they follow
because they want to. Drawing on a wide range of real-life stories, Sinek
weaves together a clear vision of what it truly takes to lead and inspire
...
Prelude
 Behavior needs to reinforce the Why.
 Be authentic. Know your Why and align ALL decisions,
actions and communication with the Why.
 Guiding principles need to be focused around meaningful,
action statements, not nouns.
 Say: find creative ways to solve problems, instead
of innovation.
 Ignore the competition. Only focus on the Why.
Practical Application
1
A World that doesn’t start with why
 We make decisions based on what we think we know.
 It wasn’t too long ago that the majority of people believed the
world was flat. This perceived truth impacted behavior. During this
period, there was very little exploration.
 People feared that if they traveled too far, they might fall off the
edge of the earth. So for the most part, they stayed put. It wasn’t
until that minor detail was revealed — the world is round — that
behaviors changed on a massive scale.
 Now consider how organizations are formed and how decisions
are made. Do we really know why some organizations succeed
and why others don’t, or do we just assume?
 As we all know, however, not all decisions work out to be the right
ones, regardless of the amount of data we collect.
 Sometimes the impact of those wrong decisions is minor, and
sometimes it can be catastrophic.
Assume You Know
 Whatever the result, we make decisions based on a
perception of the world that may not, in fact, be completely
accurate.
 When faced with a result that doesn’t go according to plan, a
series of perfectly effective short-term tactics are used until
the desired outcome is achieved.
 But how structurally sound are those solutions?
 There is a wonderful story of a group of American car
executives who went to Japan to see a Japanese assembly
line.
 At the end of the line, the doors were put on hinges, the same
as in America. But something was missing. In the United
States, a line worker would take a rubber mallet and tap the
edges of the door to ensure that it fit perfectly.
Assume You Know
 In Japan, that job didn’t seem to exist. Their Japanese guide
looked at them and smiled sheepishly. “We make sure it fits
when we design it.”
 Every instruction we give, every course of action we set,
every result we desire starts with the same thing: a decision.
 There are those who decide to manipulate the door to fit to
achieve the desired result, and there are those who start from
somewhere very different.
 Though both courses of action may yield similar short-term
results, it is what we can’t see that makes long-term success
more predictable for only one.
Assume You Know
 According to Sinek, there are two ways to attract customers:
inspiring the carrots or manipulating the sticks.
 Most of the sales tactics used by businesses today involve
manipulation.
 These include price, promotions, fear, aspirations, peer pressure,
and novelty.
 Pricing and promotions are the most commonly identified forms
of sales manipulation, but fear, aspirations, peer pressure, and
novelty tend to be more discrete.
 Regardless of the type of manipulation, it is important to
understand these are short-term solutions which end up leading
to a cycle of repeated manipulation.
 Continuing too far down this path will impact long-term
profitability, but there is another way which is revealed in chapter
three.
Carrot & Sticks
Carrot & Sticks
Manipulation Does Not Create Loyalty
 “There are only two ways to influence human behavior: you can
manipulate it or you can inspire it.”
 “Typical manipulations include: dropping the price; running a
promotion; using fear, peer pressure or aspirational messages;
and promising innovation to influence behavior--be it a purchase,
a vote or support.”
 “Selling based on price is like heroin. The short-term gain is
fantastic, but the more you do it, the harder it becomes to kick
the habit.”
 “I cannot dispute that manipulations work...But there are trade-
offs. Not a single one of them breeds loyalty. Over the course of
time, they cost more and more. The gains are only short-term.”
 “Loyalty is when people are willing to turn down a better product
or a better price to continue doing business with you.”
Carrot & Sticks
2
An Alternative Perspective
 The core of Simon Sinek’s “Start With Why” is his discovery
of The Golden Circle. There are three parts of The Golden
Circle: Why, How, and What.
 Why: Very few people or companies can clearly articulate
why they do what they do. This isn’t about running a
profitable company—that’s a result. Why is all about your
purpose. Why does your company exist? Why do you get out
of bed in the morning? And why should anyone care
 How: Some people and companies know how they do what
they do. Whether you call them a ‘’differentiating value
proposition’’ or a ‘’unique selling proposition,’’ HOWs are
often given to explain how something is different or better.
The Golden Circle
The Golden Circle
 What: Every single company on the planet knows what they do.
This is true no matter how big or small the company is, or no matter
what industry they belong to. Everyone can easily describe the
products or services their company sells or the job function they
have within the company.
 When we start with “Why”, we go from the inside out of the circle.
“Why” is the reason to buy and the “What's” merely represent the
tangible products as a proof of that belief. “What's” are the reasons
we can point to rationalize why we so much like a company over
another.
 Simon Sinek cites the example of Apple. In his opinion, Apple is
technically no different from its competitors. But Apple
communicates from the “Why.” Apple’s “Why” is to challenge the
status quo and empower the individual. And their challenging the
status quo is a pattern repeating in all they say and do, which is the
reason why people perceive Apple as authentic.
The Golden Circle
 Chapter four begins by focusing on human nature’s desire to
belong. This desire drives us to pursue others who share the
same “Why” as us. And oddly enough, the Golden Circle
matches the way our brain operates.
 Neocortex: Our neocortex, corresponds with the “What” level.
This is responsible for all our rational and analytical thought
and language. This allows us to look through vast amounts of
facts and figures, but it doesn’t drive behavior.
 Limbic Brain: The middle two sections make up our limbic
brain and are responsible for all of our feelings, like trust and
loyalty. This roughly corresponds with the “Why” level. This
area of the brain is responsible for all human behavior and all
our decision making.
 We want to be around people and organizations who are like
us and share our beliefs.
This Is Not Opinion, This Is Biology
This Is Not Opinion, This Is Biology
 When companies start with “Why”, with what they believe, they will
tap into our innate drive to include those products as symbols of our
values and beliefs.
 They make us feel special like we belong to something bigger, and
we feel a sense of tribe affiliation with all the others buying the
same products.
 Most companies generally start with “Whats” and “Hows” because
that’s what their customers ask for. They ask for great quality, low
price, 24-hour service and lots of features.
 And it’s all scientifically sounding because it’s based on data. But
according to Simon Sinek, that’s a load of baloney. The part of the
brain controlling decision making is different from the part of the
brain reporting back “Why” that decision happened. So all those
focus groups and questionnaires are probably of little value.
 Quoting Henry Ford, “If I had asked people what they wanted they
would have said a faster horse.”
This Is Not Opinion, This Is Biology
 Chapter five continues down the path of explaining how the Golden
Circle is important, but ONLY in the right order.
The three degrees of certainty:
 When we can only point to tangible elements or rational
measurements, the highest level of the confidence we can give is: “I
think this is the right decision.”
 When we make gut decisions, the highest level of confidence we can
offer is: the decision feels right, even if it flies in the face of all the facts
and figures.
 The ability to put a “Why” into words provides the emotional context for
decisions. When you know your “Why”, the highest level of confidence
you can offer is: “I know its right.” When you know the decision is right,
not only does it feel right, but you can also rationalize it and easily put it
into words.
 The goal of business should not be to do business with anyone who
simply wants what you have. It should be to focus on the people who
believe what you believe.
Clarity, Discipline & Consistency
Clarity, Discipline & Consistency
3
Leaders need a Following
 Trust begins to emerge when we see that people and organizations are
driven by reasons that go beyond the self-serving. Aligning Why, How
and What is a way to build that trust.
“What” and differentiation
 Companies that act like commodity producers have a constant
challenge to differentiate themselves from the competition. Chasing the
competition, trying to match them feature-for-feature only deepens the
“What” culture.
“Why” and flexibility
 Because consumers are inspired by “Why” you do what you do,
companies that begin communicating with the “Why” have a greater
flexibility in the market. Take the example of Apple and Dell. Apple
makes computers. Apple also makes iPads and iPhones.
 Dell, on the other hand, is defined by “What” they do. Dell does
computers, so consumers don’t feel comfortable buying anything else
from them like say, a tablet or a smartphone. They tried expanding into
different verticals but quickly retreated to “focus on their core business”.
Emergency of Trust
Emergency of Trust
 Simon Sinek also cites the First Mover Advantage when “Why” is in the
picture. Take the case of Creative versus Apple. Creative was far more
capable of producing an mp3 player, and they were the first. But they
marketed their offering as a “5GB mp3 player”, more like a “What.” Instead,
Apple marketed the iPod as “1000 songs in your pocket” giving us the “Why”
that we need.
“Why” and hiring
 When employees belong, they will guarantee your success. And they won’t
be working hard and looking for an innovative solution for you, they will be
doing it for themselves.
 The goal is to hire those who are passionate about your “Why”, your purpose,
cause or belief, and who have the attitude that fits your culture. Once that is
established, only then should their skillset and experience be evaluated.
 Great companies do not hire skilled people and motivate them; they hire
already motivated people and inspire them. Companies with a strong sense of
“Why” are able to inspire their employees. Such employees are more
productive and innovative, and the feeling they bring to work attracts other
people eager to work there as well.
Emergency of Trust
How a Tipping Point Tips
 How do you differentiate between a fad and an idea that can
change lives forever?
 The ones who queued up for hours, or days outside an Apple
store to buy the latest iPhone are all early adopters and
belong to the left side of the curve. The people on the far right
instead are never content and never loyal. For a business, it
would be prudent to get to know the far right side of this curve
better, so that you don’t waste time and money in trying to
convert them. While some of them might end up doing
business with you, they’ll probably switch to one of your
competitors at the drop of a hat if they get a better deal.
 The goal of a business then is to be crystal clear about their
“Why” and find people who believe what you believe. Once
you get enough of the 15-18% on the left side of the bell
curve, they will encourage the rest to follow.
The Law of Diffusion of Innovations stated by Everett M. Rogers pertains to the bell
curve of product adoption. The curve outlines the percentage of the market who
adopt your product, beginning with the Innovators (2.5%), followed by Early Adopters
(13.5%), Early Majority (34%), Late Majority (34%) and Laggards (16%).
Law of Diffusion
4
How to Rally those who Believe
Start With Why But Know How
 Energy motivates but charisma inspires. Energy is easy to see, measure
and copy. All great leaders have charisma because all great leaders have
clarity of “Why”; an undying belief in a purpose or cause bigger than
themselves.
 Sinek cites the example of Bill Gates and Steve Ballmer. Steve Ballmer was
energetic. Bill Gates, in spite of being shy and awkward, is charismatic.
When Steve Ballmer speaks people are energized, but that tends to
dissipate quickly. When Bill Gates speaks people listen with bated breath.
They remember those lessons for weeks, months or even years. Charisma
commands loyalty while energy doesn’t.
“Why” and “How” Types
 Behind every “Why” type of leader, is a “How” type of leader who brings the
“Why” to life.
 “Why” types are the visionaries with overactive imaginations. They tend to
be optimists who believe that everything they can imagine can be
accomplished and they tend to be focused on things most people can’t see,
like the future. “How” types instead are more practical and more realist and
tend to be focused on the things most people can see and tend to be better
at building them.
The cone represents a company or
an organization — an inherently
hierarchical and
organized system. Sitting at the top of
the system, representing the WHY is
a leader; in the case of a company,
that’s usually the CEO (or at least we
hope it is).
The next level down, the HOW level,
typically includes the senior executives
who are inspired by the leader’s vision and
know HOW to bring it to life. Don’t forget
that a WHY is just a belief; HOWs are the
actions we take to realize that belief, and
WHATs are the results of those actions.
Start With Why But Know How
 Interestingly, Simon Sinek says that “How” types can be very
successful but rarely do they build billion dollar businesses
that change the world. And while a “How” type doesn’t
necessarily need a “Why” type to succeed, a “Why” type
always needs a “How” type or they’ll end up as starving
visionaries.
Vision and Mission Statement
 The difference between “Why” and “How” types also
introduces the difference between the vision and mission
statements of an organization.
 The vision is the founder’s intent, “Why” the company was
founded. The mission is a description of “How” the company
will create that future.
 When both are clear, it will help the “Why” and the “How” type
of leaders to have clearly defined roles in the partnership.
Know Why. Know How. Then What?
 When a company is small, a founder has plenty of direct contact with
the outside world. As it grows the leader’s role changes. He/she will no
longer be the loudest part of the megaphone; he/she will become the
source of the message that is to flow through the megaphone.
 The “Why” exists in the part of the brain that control feelings and
decision making but not language. “Whats” exist in the part of the brain
that controls rational thought and language.
 The leader is the inspiration, the symbol of the reason we do what we
do. They represent the emotional limbic brain. What the company says
and does represent the rational thought and language of the neocortex.
 Most companies struggle to differentiate or communicate their true
value to the outside world. When we as human beings struggle to put
emotions into word, we rely on metaphors, imagery, and analogies in an
attempt to communicate how we feel. We use symbols. We create
tangible things for those who believe in what we believe to say. If done
properly, that’s what marketing products and services are; a way for
organizations to communicate to the world outside.
Communication is not about Speaking, it is about Listening
 There are people who walk around with Harley- Davidson
tattoos on their bodies. Some of them don’t even own the
product.
 The reason is simple. After years of Harley being crystal clear
about what they believe, after years of being disciplined about
a set of values and guiding principles, and after years of being
doggedly consistent about everything they say and do, their
logo has become a symbol. It no longer simply identifies a
company and its products; it identifies a belief.
 Most companies have logos, but few have been able to
convert those logos into meaningful symbols. Because most
companies are bad at communicating what they believe.
 For a logo to become a symbol, people must be inspired to
use that logo to say something about who they are and what
they believe.
The Celery Test
 We often look for the best practices of others to help guide us. But it
is a flawed assumption that what works for one organization will
work for another.
 It is not just WHAT or HOW you do things that matters; what matters
more is that WHAT and HOW you do things is consistent with your
WHY. Only then will your practices indeed be best.
 Imagine you go to a dinner party, and somebody comes up to you
and says, “You know what you need in your organization? M&M’s. If
you’re not using M&M’s in your business, you’re leaving money on
the table.”
 Somebody else comes up to you and says, “You know what you
need? Rice milk. The data shows that all the people are buying rice
milk these days. You should be selling rice milk in this economy.”
While you’re standing over the punch bowl, yet another person
offers some sage advice: “Oreo cookies,” he says. “We made
millions from implementing Oreo cookies in our organization. You’ve
got to do it.”
The Celery Test
 Still somebody else comes up to you and says, “Celery. You’ve got
to get into celery.”
 You get all this great advice from all these highly accomplished
people. Some of them are in the same industry. Some of them are
more successful than you.
 Some of them have offered similar advice to others with great
success. Now, what do you do?
 You go to the supermarket, and you buy celery, rice milk, Oreos and
M&M’s. You spend a lot of time at the supermarket walking the
aisles. You spend a lot of money because you buy everything. But
you may or may not get any value from some or all of these
products; there are no guarantees.
 But one thing’s for sure: when you’re standing in line at the
supermarket with all of these items in your arms, your celery, rice
milk, Oreos and M&Ms, people will walk right past you, and nobody
can see what you believe.
The Celery Test
 But what if you knew your WHY before you went to the
supermarket? What if your WHY is to do only things that are
healthy?
 To always do the things that are good for your body? You’ll get all
the same good advice from all the same people; the only
difference is, the next time you go to the supermarket, you’ll buy
only rice milk and celery. Those are the only products that make
sense. It’s not that the other advice isn’t good advice; it’s just not
good for you.
 Filtering your decisions through your WHY, you spend less time
at the supermarket, and you spend less money, so there’s an
efficiency advantage also. You’re guaranteed to get value out of
all the products you bought.
 And, most importantly, when you’re standing in line with your
products in your arms, everybody can see what you believe.
Others who are healthy will see you as someone like them.
5
The Biggest Challenge is Success
 In this chapter, Sinek talks about companies which have lost sight of their
original “Why.”
 Take the example of Volkswagen and Walmart. Volkswagen literally
means “car of the people” and its image has always been that of reliable,
affordable cars for everyone.
 The original VW Beetle was a cheerful symbol of freedom and a simple,
carefree life. So when they introduced the super-expensive, $70,000 VW
Phaeton, that flew against their own “Why” and sold nothing.
 Walmart was a more serious case. Walmart was started by Sam Walton
with the idea of helping people and communities by providing products at
low prices. However, after the death of its founders, the company focused
only on low prices, forgetting about helping people and the communities
they entered. It ended up becoming a cutthroat business towards its
suppliers, employees and the communities it was a part of. Walmart got
into serious trouble when it lost its initial “Why.”
 Sinek says that gaining a clarity of “Why” is not the hardest part. The
hardest part is the discipline to trust one’s gut over outside advice and to
stay true to your cause or belief.
When Why goes Fuzzy
 An Idea. That’s probably where every company starts. At the
beginning, ideas are fueled by passion.
 That very compelling emotion that sometimes causes us to
do irrational things.
 But for passion to thrive and survive, it also needs structures
and “How's.” Most companies fail because both “How's” and
“Whys” need each other.
Split Happens
6
Discover Why ?
The Origin of Why
 You’ve probably heard that before you start a business,
market research is key. You do your market research, know
your customer and then build your niche. Sinek, however,
disagrees.
 According to Sinek, the “Why” does not come from looking
ahead at what you want to achieve and then figuring out an
appropriate strategy to get there.
 It is not born out of market research or for that matter even
extensive interviews with customers or employees. It comes
from looking in the completely opposite direction from where
you are right now. Finding the “Why” is a process of discovery,
not invention.
 The “Why” is within you. And once you find and know your
“Why”, the hardest part is to remain true to it.
The New Competition
 When you’re up against the world, competing with everyone else,
no one wants to help you. But when you compete against
yourself, everyone wants to help you.
 Now let’s think about how we do business. We’re always
competing against someone else. Better quality. More features.
Better service. We’re always comparing ourselves to the
competition. And no one wants to help us.
 What if we showed up to work every single day to be better than
ourselves? For no better reason than to want to leave the
organization in a better state than we found it?
 All organizations start with “Why”, but only the great ones keep
their “Why” clear year after year. Those who forget “Why” they
were founded show up to the race every day to outdo someone
else instead of outdoing themselves.
 You are your best competition.
 Inspirational leaders start by identifying their purpose, cause or
vision.
 They follow the concentric rings of the “Golden Circle,” starting
with establishing their mission with “Why” in the center, then
moving outward to “How” and then “What.”
 “Why” stems from your core purpose, the reason “you get out of
bed in the morning.”
 Your How explains the ways your product or service is unique and
desirable.
 Your What defines the obvious aspects of your product or position
with your firm.
Key Take Aways
 Less successful leaders and companies work from the outside
in: What-How-Why. Successful organizations and leaders work
from the inside out: Why-How-What.
 This is because “people don’t buy What you do, they buy Why
you do it.”
 Visionary leaders rely on their gut or intuition and can identify a
void in the market before their potential customers spot it.
 Set out to do business with your ideal customers: those who
share your beliefs and will recruit others to your cause.
 New hires who share your passion are “good fits” and will be
your best employees and your company’s future leaders.
Key Take Aways
 Examples of asking Why:
 Why does your company exist? (not profits; profits are the
result.)
 Why should people care?
 To motivate action, you can manipulate or inspire.
 Manipulation includes: price, promotions, fear, aspirations, novelty,
peer pressure (endorsements).
 Manipulation is best for transactions that will likely only happen
once, not building loyalty.
 Inspiring people requires a real purpose, a Why.
 A clearly expressed Why helps separate you from the rest.
 Humans want to belong to communities and culture.
 Clients identify with brands that articulate a clear Why.
 Clients cannot identify with the What without the Why.
Key Take Aways
 It is not logic or facts but our hopes and dreams, our hearts
and our guts, that drive us to try new things.
 Trust begins to emerge when we have a sense that another
person or organization is driven by things other than their
own self-gain.
 An Apple pitch that leads with Why: Everything we do, we
believe in challenging the status quo. We believe in thinking
differently. The way we challenge the status quo is by
making our products beautifully designed, simple to use and
user-friendly. And we happen to make great computers.
Wanna buy one?
Meaningful Quotes
 When you force people to make decisions with only the
rational part of their brain, they almost invariably end up
“overthinking.” These rational decisions tend to take longer
to make, says Restak, and can often be of lower quality. In
contrast, decisions made with the limbic brain, gut decisions,
tend to be faster, higher-quality decisions. This is one of the
primary reasons why teachers tell students to go with their
first instinct when taking a multiple-choice test, to trust their
gut.
 “I can make a decision with 30 percent of the information,”
said former secretary of state Colin Powell. “Anything more
than 80 percent is too much.”
Meaningful Quotes
Thank you
Your comments
ramaddster@gmail.com

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Start with why

  • 1. Some Impressionistic Take away from the Book of Simon Sinek Start with Why ? Ramki ramaddster@gmail.com
  • 2. About the Author  Simon is an unshakable optimist. He believes in a bright future and our ability to build it together.  Described as “a visionary thinker with a rare intellect,” Simon has devoted his professional life to help advance a vision of the world that does not yet exist; a world in which the vast majority of people wake up every single morning inspired, feel safe wherever they are and end the day fulfilled by the work that they do.  Simon is the author of multiple best selling books including Start With Why, Leaders Eat Last, Together is Better, and The Infinite Game.
  • 3.  ... "Why are some people and organizations more innovative, more influential, and more profitable than others?  Why do some command greater loyalty from customers and employees alike?  Even among the successful, why are so few able to repeat their success over and over?  People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers might have little in common, but they all started with why. It was their natural ability to start with why that enabled them to inspire those around them and to achieve remarkable things. In studying the leaders who've had the greatest influence in the world, Simon Sinek discovered that they all think, act, and communicate in the exact same way -- and it's the complete opposite of what everyone else does. Prelude
  • 4.  Sinek calls this powerful idea The Golden Circle, and it provides a framework upon which organizations can be built, movements can be lead, and people can be inspired.  And it all starts with WHY. Any organization can explain what it does; some can explain how they do it; but very few can clearly articulate why.  WHY is not money or profit--those are always results. WHY does your organization exist?  WHY does it do the things it does? WHY do customers really buy from one company or another?  WHY are people loyal to some leaders, but not others? Starting with WHY works in big business and small business, in the nonprofit world and in politics.  Those who start with WHY never manipulate, they inspire. And the people who follow them don't do so because they have to; they follow because they want to. Drawing on a wide range of real-life stories, Sinek weaves together a clear vision of what it truly takes to lead and inspire ... Prelude
  • 5.  Behavior needs to reinforce the Why.  Be authentic. Know your Why and align ALL decisions, actions and communication with the Why.  Guiding principles need to be focused around meaningful, action statements, not nouns.  Say: find creative ways to solve problems, instead of innovation.  Ignore the competition. Only focus on the Why. Practical Application
  • 6.
  • 7. 1 A World that doesn’t start with why
  • 8.  We make decisions based on what we think we know.  It wasn’t too long ago that the majority of people believed the world was flat. This perceived truth impacted behavior. During this period, there was very little exploration.  People feared that if they traveled too far, they might fall off the edge of the earth. So for the most part, they stayed put. It wasn’t until that minor detail was revealed — the world is round — that behaviors changed on a massive scale.  Now consider how organizations are formed and how decisions are made. Do we really know why some organizations succeed and why others don’t, or do we just assume?  As we all know, however, not all decisions work out to be the right ones, regardless of the amount of data we collect.  Sometimes the impact of those wrong decisions is minor, and sometimes it can be catastrophic. Assume You Know
  • 9.  Whatever the result, we make decisions based on a perception of the world that may not, in fact, be completely accurate.  When faced with a result that doesn’t go according to plan, a series of perfectly effective short-term tactics are used until the desired outcome is achieved.  But how structurally sound are those solutions?  There is a wonderful story of a group of American car executives who went to Japan to see a Japanese assembly line.  At the end of the line, the doors were put on hinges, the same as in America. But something was missing. In the United States, a line worker would take a rubber mallet and tap the edges of the door to ensure that it fit perfectly. Assume You Know
  • 10.  In Japan, that job didn’t seem to exist. Their Japanese guide looked at them and smiled sheepishly. “We make sure it fits when we design it.”  Every instruction we give, every course of action we set, every result we desire starts with the same thing: a decision.  There are those who decide to manipulate the door to fit to achieve the desired result, and there are those who start from somewhere very different.  Though both courses of action may yield similar short-term results, it is what we can’t see that makes long-term success more predictable for only one. Assume You Know
  • 11.  According to Sinek, there are two ways to attract customers: inspiring the carrots or manipulating the sticks.  Most of the sales tactics used by businesses today involve manipulation.  These include price, promotions, fear, aspirations, peer pressure, and novelty.  Pricing and promotions are the most commonly identified forms of sales manipulation, but fear, aspirations, peer pressure, and novelty tend to be more discrete.  Regardless of the type of manipulation, it is important to understand these are short-term solutions which end up leading to a cycle of repeated manipulation.  Continuing too far down this path will impact long-term profitability, but there is another way which is revealed in chapter three. Carrot & Sticks
  • 13. Manipulation Does Not Create Loyalty  “There are only two ways to influence human behavior: you can manipulate it or you can inspire it.”  “Typical manipulations include: dropping the price; running a promotion; using fear, peer pressure or aspirational messages; and promising innovation to influence behavior--be it a purchase, a vote or support.”  “Selling based on price is like heroin. The short-term gain is fantastic, but the more you do it, the harder it becomes to kick the habit.”  “I cannot dispute that manipulations work...But there are trade- offs. Not a single one of them breeds loyalty. Over the course of time, they cost more and more. The gains are only short-term.”  “Loyalty is when people are willing to turn down a better product or a better price to continue doing business with you.” Carrot & Sticks
  • 15.  The core of Simon Sinek’s “Start With Why” is his discovery of The Golden Circle. There are three parts of The Golden Circle: Why, How, and What.  Why: Very few people or companies can clearly articulate why they do what they do. This isn’t about running a profitable company—that’s a result. Why is all about your purpose. Why does your company exist? Why do you get out of bed in the morning? And why should anyone care  How: Some people and companies know how they do what they do. Whether you call them a ‘’differentiating value proposition’’ or a ‘’unique selling proposition,’’ HOWs are often given to explain how something is different or better. The Golden Circle
  • 17.
  • 18.  What: Every single company on the planet knows what they do. This is true no matter how big or small the company is, or no matter what industry they belong to. Everyone can easily describe the products or services their company sells or the job function they have within the company.  When we start with “Why”, we go from the inside out of the circle. “Why” is the reason to buy and the “What's” merely represent the tangible products as a proof of that belief. “What's” are the reasons we can point to rationalize why we so much like a company over another.  Simon Sinek cites the example of Apple. In his opinion, Apple is technically no different from its competitors. But Apple communicates from the “Why.” Apple’s “Why” is to challenge the status quo and empower the individual. And their challenging the status quo is a pattern repeating in all they say and do, which is the reason why people perceive Apple as authentic. The Golden Circle
  • 19.  Chapter four begins by focusing on human nature’s desire to belong. This desire drives us to pursue others who share the same “Why” as us. And oddly enough, the Golden Circle matches the way our brain operates.  Neocortex: Our neocortex, corresponds with the “What” level. This is responsible for all our rational and analytical thought and language. This allows us to look through vast amounts of facts and figures, but it doesn’t drive behavior.  Limbic Brain: The middle two sections make up our limbic brain and are responsible for all of our feelings, like trust and loyalty. This roughly corresponds with the “Why” level. This area of the brain is responsible for all human behavior and all our decision making.  We want to be around people and organizations who are like us and share our beliefs. This Is Not Opinion, This Is Biology
  • 20.
  • 21. This Is Not Opinion, This Is Biology
  • 22.  When companies start with “Why”, with what they believe, they will tap into our innate drive to include those products as symbols of our values and beliefs.  They make us feel special like we belong to something bigger, and we feel a sense of tribe affiliation with all the others buying the same products.  Most companies generally start with “Whats” and “Hows” because that’s what their customers ask for. They ask for great quality, low price, 24-hour service and lots of features.  And it’s all scientifically sounding because it’s based on data. But according to Simon Sinek, that’s a load of baloney. The part of the brain controlling decision making is different from the part of the brain reporting back “Why” that decision happened. So all those focus groups and questionnaires are probably of little value.  Quoting Henry Ford, “If I had asked people what they wanted they would have said a faster horse.” This Is Not Opinion, This Is Biology
  • 23.  Chapter five continues down the path of explaining how the Golden Circle is important, but ONLY in the right order. The three degrees of certainty:  When we can only point to tangible elements or rational measurements, the highest level of the confidence we can give is: “I think this is the right decision.”  When we make gut decisions, the highest level of confidence we can offer is: the decision feels right, even if it flies in the face of all the facts and figures.  The ability to put a “Why” into words provides the emotional context for decisions. When you know your “Why”, the highest level of confidence you can offer is: “I know its right.” When you know the decision is right, not only does it feel right, but you can also rationalize it and easily put it into words.  The goal of business should not be to do business with anyone who simply wants what you have. It should be to focus on the people who believe what you believe. Clarity, Discipline & Consistency
  • 24. Clarity, Discipline & Consistency
  • 25. 3 Leaders need a Following
  • 26.  Trust begins to emerge when we see that people and organizations are driven by reasons that go beyond the self-serving. Aligning Why, How and What is a way to build that trust. “What” and differentiation  Companies that act like commodity producers have a constant challenge to differentiate themselves from the competition. Chasing the competition, trying to match them feature-for-feature only deepens the “What” culture. “Why” and flexibility  Because consumers are inspired by “Why” you do what you do, companies that begin communicating with the “Why” have a greater flexibility in the market. Take the example of Apple and Dell. Apple makes computers. Apple also makes iPads and iPhones.  Dell, on the other hand, is defined by “What” they do. Dell does computers, so consumers don’t feel comfortable buying anything else from them like say, a tablet or a smartphone. They tried expanding into different verticals but quickly retreated to “focus on their core business”. Emergency of Trust
  • 28.  Simon Sinek also cites the First Mover Advantage when “Why” is in the picture. Take the case of Creative versus Apple. Creative was far more capable of producing an mp3 player, and they were the first. But they marketed their offering as a “5GB mp3 player”, more like a “What.” Instead, Apple marketed the iPod as “1000 songs in your pocket” giving us the “Why” that we need. “Why” and hiring  When employees belong, they will guarantee your success. And they won’t be working hard and looking for an innovative solution for you, they will be doing it for themselves.  The goal is to hire those who are passionate about your “Why”, your purpose, cause or belief, and who have the attitude that fits your culture. Once that is established, only then should their skillset and experience be evaluated.  Great companies do not hire skilled people and motivate them; they hire already motivated people and inspire them. Companies with a strong sense of “Why” are able to inspire their employees. Such employees are more productive and innovative, and the feeling they bring to work attracts other people eager to work there as well. Emergency of Trust
  • 29. How a Tipping Point Tips  How do you differentiate between a fad and an idea that can change lives forever?  The ones who queued up for hours, or days outside an Apple store to buy the latest iPhone are all early adopters and belong to the left side of the curve. The people on the far right instead are never content and never loyal. For a business, it would be prudent to get to know the far right side of this curve better, so that you don’t waste time and money in trying to convert them. While some of them might end up doing business with you, they’ll probably switch to one of your competitors at the drop of a hat if they get a better deal.  The goal of a business then is to be crystal clear about their “Why” and find people who believe what you believe. Once you get enough of the 15-18% on the left side of the bell curve, they will encourage the rest to follow.
  • 30. The Law of Diffusion of Innovations stated by Everett M. Rogers pertains to the bell curve of product adoption. The curve outlines the percentage of the market who adopt your product, beginning with the Innovators (2.5%), followed by Early Adopters (13.5%), Early Majority (34%), Late Majority (34%) and Laggards (16%). Law of Diffusion
  • 31. 4 How to Rally those who Believe
  • 32. Start With Why But Know How  Energy motivates but charisma inspires. Energy is easy to see, measure and copy. All great leaders have charisma because all great leaders have clarity of “Why”; an undying belief in a purpose or cause bigger than themselves.  Sinek cites the example of Bill Gates and Steve Ballmer. Steve Ballmer was energetic. Bill Gates, in spite of being shy and awkward, is charismatic. When Steve Ballmer speaks people are energized, but that tends to dissipate quickly. When Bill Gates speaks people listen with bated breath. They remember those lessons for weeks, months or even years. Charisma commands loyalty while energy doesn’t. “Why” and “How” Types  Behind every “Why” type of leader, is a “How” type of leader who brings the “Why” to life.  “Why” types are the visionaries with overactive imaginations. They tend to be optimists who believe that everything they can imagine can be accomplished and they tend to be focused on things most people can’t see, like the future. “How” types instead are more practical and more realist and tend to be focused on the things most people can see and tend to be better at building them.
  • 33. The cone represents a company or an organization — an inherently hierarchical and organized system. Sitting at the top of the system, representing the WHY is a leader; in the case of a company, that’s usually the CEO (or at least we hope it is). The next level down, the HOW level, typically includes the senior executives who are inspired by the leader’s vision and know HOW to bring it to life. Don’t forget that a WHY is just a belief; HOWs are the actions we take to realize that belief, and WHATs are the results of those actions.
  • 34. Start With Why But Know How  Interestingly, Simon Sinek says that “How” types can be very successful but rarely do they build billion dollar businesses that change the world. And while a “How” type doesn’t necessarily need a “Why” type to succeed, a “Why” type always needs a “How” type or they’ll end up as starving visionaries. Vision and Mission Statement  The difference between “Why” and “How” types also introduces the difference between the vision and mission statements of an organization.  The vision is the founder’s intent, “Why” the company was founded. The mission is a description of “How” the company will create that future.  When both are clear, it will help the “Why” and the “How” type of leaders to have clearly defined roles in the partnership.
  • 35. Know Why. Know How. Then What?  When a company is small, a founder has plenty of direct contact with the outside world. As it grows the leader’s role changes. He/she will no longer be the loudest part of the megaphone; he/she will become the source of the message that is to flow through the megaphone.  The “Why” exists in the part of the brain that control feelings and decision making but not language. “Whats” exist in the part of the brain that controls rational thought and language.  The leader is the inspiration, the symbol of the reason we do what we do. They represent the emotional limbic brain. What the company says and does represent the rational thought and language of the neocortex.  Most companies struggle to differentiate or communicate their true value to the outside world. When we as human beings struggle to put emotions into word, we rely on metaphors, imagery, and analogies in an attempt to communicate how we feel. We use symbols. We create tangible things for those who believe in what we believe to say. If done properly, that’s what marketing products and services are; a way for organizations to communicate to the world outside.
  • 36.
  • 37. Communication is not about Speaking, it is about Listening  There are people who walk around with Harley- Davidson tattoos on their bodies. Some of them don’t even own the product.  The reason is simple. After years of Harley being crystal clear about what they believe, after years of being disciplined about a set of values and guiding principles, and after years of being doggedly consistent about everything they say and do, their logo has become a symbol. It no longer simply identifies a company and its products; it identifies a belief.  Most companies have logos, but few have been able to convert those logos into meaningful symbols. Because most companies are bad at communicating what they believe.  For a logo to become a symbol, people must be inspired to use that logo to say something about who they are and what they believe.
  • 38. The Celery Test  We often look for the best practices of others to help guide us. But it is a flawed assumption that what works for one organization will work for another.  It is not just WHAT or HOW you do things that matters; what matters more is that WHAT and HOW you do things is consistent with your WHY. Only then will your practices indeed be best.  Imagine you go to a dinner party, and somebody comes up to you and says, “You know what you need in your organization? M&M’s. If you’re not using M&M’s in your business, you’re leaving money on the table.”  Somebody else comes up to you and says, “You know what you need? Rice milk. The data shows that all the people are buying rice milk these days. You should be selling rice milk in this economy.” While you’re standing over the punch bowl, yet another person offers some sage advice: “Oreo cookies,” he says. “We made millions from implementing Oreo cookies in our organization. You’ve got to do it.”
  • 39. The Celery Test  Still somebody else comes up to you and says, “Celery. You’ve got to get into celery.”  You get all this great advice from all these highly accomplished people. Some of them are in the same industry. Some of them are more successful than you.  Some of them have offered similar advice to others with great success. Now, what do you do?  You go to the supermarket, and you buy celery, rice milk, Oreos and M&M’s. You spend a lot of time at the supermarket walking the aisles. You spend a lot of money because you buy everything. But you may or may not get any value from some or all of these products; there are no guarantees.  But one thing’s for sure: when you’re standing in line at the supermarket with all of these items in your arms, your celery, rice milk, Oreos and M&Ms, people will walk right past you, and nobody can see what you believe.
  • 40. The Celery Test  But what if you knew your WHY before you went to the supermarket? What if your WHY is to do only things that are healthy?  To always do the things that are good for your body? You’ll get all the same good advice from all the same people; the only difference is, the next time you go to the supermarket, you’ll buy only rice milk and celery. Those are the only products that make sense. It’s not that the other advice isn’t good advice; it’s just not good for you.  Filtering your decisions through your WHY, you spend less time at the supermarket, and you spend less money, so there’s an efficiency advantage also. You’re guaranteed to get value out of all the products you bought.  And, most importantly, when you’re standing in line with your products in your arms, everybody can see what you believe. Others who are healthy will see you as someone like them.
  • 42.  In this chapter, Sinek talks about companies which have lost sight of their original “Why.”  Take the example of Volkswagen and Walmart. Volkswagen literally means “car of the people” and its image has always been that of reliable, affordable cars for everyone.  The original VW Beetle was a cheerful symbol of freedom and a simple, carefree life. So when they introduced the super-expensive, $70,000 VW Phaeton, that flew against their own “Why” and sold nothing.  Walmart was a more serious case. Walmart was started by Sam Walton with the idea of helping people and communities by providing products at low prices. However, after the death of its founders, the company focused only on low prices, forgetting about helping people and the communities they entered. It ended up becoming a cutthroat business towards its suppliers, employees and the communities it was a part of. Walmart got into serious trouble when it lost its initial “Why.”  Sinek says that gaining a clarity of “Why” is not the hardest part. The hardest part is the discipline to trust one’s gut over outside advice and to stay true to your cause or belief. When Why goes Fuzzy
  • 43.  An Idea. That’s probably where every company starts. At the beginning, ideas are fueled by passion.  That very compelling emotion that sometimes causes us to do irrational things.  But for passion to thrive and survive, it also needs structures and “How's.” Most companies fail because both “How's” and “Whys” need each other. Split Happens
  • 45. The Origin of Why  You’ve probably heard that before you start a business, market research is key. You do your market research, know your customer and then build your niche. Sinek, however, disagrees.  According to Sinek, the “Why” does not come from looking ahead at what you want to achieve and then figuring out an appropriate strategy to get there.  It is not born out of market research or for that matter even extensive interviews with customers or employees. It comes from looking in the completely opposite direction from where you are right now. Finding the “Why” is a process of discovery, not invention.  The “Why” is within you. And once you find and know your “Why”, the hardest part is to remain true to it.
  • 46. The New Competition  When you’re up against the world, competing with everyone else, no one wants to help you. But when you compete against yourself, everyone wants to help you.  Now let’s think about how we do business. We’re always competing against someone else. Better quality. More features. Better service. We’re always comparing ourselves to the competition. And no one wants to help us.  What if we showed up to work every single day to be better than ourselves? For no better reason than to want to leave the organization in a better state than we found it?  All organizations start with “Why”, but only the great ones keep their “Why” clear year after year. Those who forget “Why” they were founded show up to the race every day to outdo someone else instead of outdoing themselves.  You are your best competition.
  • 47.
  • 48.  Inspirational leaders start by identifying their purpose, cause or vision.  They follow the concentric rings of the “Golden Circle,” starting with establishing their mission with “Why” in the center, then moving outward to “How” and then “What.”  “Why” stems from your core purpose, the reason “you get out of bed in the morning.”  Your How explains the ways your product or service is unique and desirable.  Your What defines the obvious aspects of your product or position with your firm. Key Take Aways
  • 49.  Less successful leaders and companies work from the outside in: What-How-Why. Successful organizations and leaders work from the inside out: Why-How-What.  This is because “people don’t buy What you do, they buy Why you do it.”  Visionary leaders rely on their gut or intuition and can identify a void in the market before their potential customers spot it.  Set out to do business with your ideal customers: those who share your beliefs and will recruit others to your cause.  New hires who share your passion are “good fits” and will be your best employees and your company’s future leaders. Key Take Aways
  • 50.  Examples of asking Why:  Why does your company exist? (not profits; profits are the result.)  Why should people care?  To motivate action, you can manipulate or inspire.  Manipulation includes: price, promotions, fear, aspirations, novelty, peer pressure (endorsements).  Manipulation is best for transactions that will likely only happen once, not building loyalty.  Inspiring people requires a real purpose, a Why.  A clearly expressed Why helps separate you from the rest.  Humans want to belong to communities and culture.  Clients identify with brands that articulate a clear Why.  Clients cannot identify with the What without the Why. Key Take Aways
  • 51.  It is not logic or facts but our hopes and dreams, our hearts and our guts, that drive us to try new things.  Trust begins to emerge when we have a sense that another person or organization is driven by things other than their own self-gain.  An Apple pitch that leads with Why: Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use and user-friendly. And we happen to make great computers. Wanna buy one? Meaningful Quotes
  • 52.  When you force people to make decisions with only the rational part of their brain, they almost invariably end up “overthinking.” These rational decisions tend to take longer to make, says Restak, and can often be of lower quality. In contrast, decisions made with the limbic brain, gut decisions, tend to be faster, higher-quality decisions. This is one of the primary reasons why teachers tell students to go with their first instinct when taking a multiple-choice test, to trust their gut.  “I can make a decision with 30 percent of the information,” said former secretary of state Colin Powell. “Anything more than 80 percent is too much.” Meaningful Quotes