BOOK SUMMARY

Why Manipulation is not the same as inspiration

Simon believes that true leadership means having the ability to inspire people, to provide them with a purpose outside of any benefits or incentives. That these people have the ability to lead because they truly inspire their followers. There is no manipulation or coercion, followers are inspired and feel fulfilled by the work that they do.

In Start With Why, Simon explains that behaviour is influenced in two ways; inspiration, or manipulation. .

Today, we are more familiar with manipulation. Sales, promotions, advertising, marketing, it’s all versions of manipulations. And there’s a reason for this, manipulation works!.

Using the example of attracting customers to purchase a product you are selling; it’s prices, promotions, fear, aspirations, novelty and peer pressure that are used to manipulate and motivate a purchase. Although these techniques may help you make a sale, they do not benefit any long-term gains. They do not encourage loyalty.

"Leadership is the ability to rally people not for a single event, but for years. In business, leadership means that customers will continue to support your company even when you slip up."

The aim should be to inspire loyal customers. Loyal customers results in returning business. A loyal customer is so inspired by your brand that they are willing to turn down a better price or product to continue doing business with you.

THE GOLDEN CIRCLE

The Golden Circle is a concept described by Simon, it shows how certain leaders have the ability to inspire action rather than simply manipulating people to act. Simon emphasises that the majority of leaders however, choose manipulation over inspiration when it comes to motivating followers. Simon uses three tiers to differentiate between companies and their motivations; What, How & Why.

Every company in the world knows WHAT they do -e.g. they can describe and define their product or service. Some companies know HOW they do what they do -e.g. they know that their unique selling point is the reason they stand out. Very few companies know WHY they do what they do (and it's not to make money, this is a result). Why do you get out of bed in the morning, what is the companies purpose, and why should anyone care?

Simon uses Apple as the example of an inspirational company. The format a normal company would use to communicate their product goes like this; ‘this is what we do, and this is how we do it.

However, inspiring companies such as Apple start with why, they reverse the order of information, e.g;

WHY - In everything that we do, we believe in challenging the status quo and thinking differently. (This part engages the consumer on an emotional level.)

HOW - The way we do this is to design products that are beautifully designed and easy to use. (The how and the what serve as evidence of the why.)

WHAT - We just so happen to make great computers. Wanna buy one?

”It's not a debate about better or worse anymore, it's a discussion about different needs. And before the discussion can even happen, the WHYs for each must be established first."

LEADERSHIP

Back to biology again, Simon identifies humans attraction to those with similar beliefs and values. We desire these things to align, and with that we build trust. For a true leader to inspire and build a following, they need to be trusted.

Trust: Taking it back to the limbic brain, trust is not rational or logical, it’s an emotional feeling.

"You have to earn trust by communicating and demonstrating that you share the same values and beliefs. You have to talk about your WHY and prove it with WHAT you do. Again, a WHY is just a belief, HOWs are the actions we take to realise that belief, and WHATs are the results of those actions. When all three are in balance, trust is built and value is perceived."

When it comes to hiring employees, you have to be looking for those who share the same beliefs and values as you. Skills are secondary. Successful employees with be passionate about your why.

"Great companies don't hire skilled people and motivate them, they hire already motivated people and inspire them."

Simon describes a great organisation as one with a strong sense of culture and belonging. This protects the people inside the organisation, and they know that because of the shared beliefs and values, the organisation, and fellow colleagues, can all work together as one, and have each other’s back. There’s no fear or mis-trust.

Tipping points: The Law of Diffusion outlines mass-market success as being achieved once you’ve reached 15%-18% of your market. The early majority waits until someone else has tried it first before they sign up. Simon suggests that the tipping point is when a business’ growth or idea is rapidly moving. This is the point of mass-market acceptance.

"The goal of business then should not be to simply sell to anyone who wants what you have—the majority—but rather to find people who believe what you believe, the left side of the bell curve. They perceive greater value in what you do and will happily pay a premium or suffer some sort of inconvenience to be a part of your cause. It is the percentage of people who share your beliefs and want to incorporate your ideas, your products and your services into their own lives as WHATs to their own WHYs."

Simon points out that once you have enough people on your side, the rest will be encouraged to follow. The influencers need to be people who share your beliefs. They will voluntarily share your messages, your ideas, and the rest will be inspired.

RALLYING BELIEVERS

Simon’s Golden Circle is actually a birds eye view of a cone which represents the three-dimensional structure of organisations. An organisation cannot be made up of entirely one type of person. It’s the combination of the why-types and the how-types that create inspirational partnerships. Simon explains this by looking at the billion dollar visionary company, Apple. Steve Jobs is the why - the visionary, and Steve Wozniak was the how - he made it happen. One without the other is almost useless. Leaders sit at the top of the cone, they are the why, the how-types sit below the leader and they take on the responsibility for making the leaders visions happen. It’s arrangements like this that mean Apple can innovate an industry, they are more than just another organisation selling products, they are a social movement creating change.

”It's no coincidence that the three-dimensional Golden Circle is a cone. It is, in practice, a megaphone. An organisation effectively becomes the vessel through which a person with a clear purpose, cause or belief can speak to the outside world. But for a megaphone to work, clarity must come first. Without a clear message, what will you amplify?"

Without clear communication of values and beliefs, a company or organisation will struggle to reach the consumers in the way they want. Marketing and branding is so important, it’s the vehicle for companies to communicate what the products and services stand for, what they can become. Marketing and branding needs to inspire believers, it needs to allow consumers to attach their own beliefs and values to a product. It needs to create trust and a loyalty in their following, so consumers will continue to buy their products or use their services despite what else is available on the market.

”If WHAT you do doesn't prove what you believe, then no one will know what your WHY is and you'll be forced to compete on price, service, quality, features and benefits; the stuff of commodities

CHALLENGES

Simon recalls attending the Gathering of Titans where americas most successful entrepreneurs gather together. 80% had achieved their financial goals! although 80% didn't feel successful. As their companies had grown, they had lost a sense of their why. They still knew what they did and how they did it, but their why had gone fuzzy. And of course, this was difficult to put in to words.

”Achievement is something you reach or attain, like a goal. It is something tangible, clearly defined and measurable. Success, in contrast, is a feeling or a state of being. Achievement comes when you pursue and attain WHAT you want. Success comes when you are clear in pursuit of WHY you want it."

When a company focuses on the how and the what, they lose sight of the why. The passion and innovation withers and they simply come to work, do the required bare minimum to reach present goals, and consider the job done. The drive for more is gone. Simon explains the school bus test. If the founder we're to get hit by a bus and die, would the business be effected? The challenge isn't to cling on to the leader forever, but to find a way of keeping the vision alive and clear. It’s time to switch the focus, the majority of organisations will track their progress based on what they do - the money they make. However, this means the why can lose clarity. Measuring other metrics such as positive customer feedback and worklife balance can mean the why stays in focus.

”For great leaders, The Golden Circle is in balance. They are in pursuit of WHY, they hold themselves accountable to HOW they do it and WHAT they do serves as the tangible proof of what they believe."

THE BIG WHY

”The WHY does not come from looking ahead at what you want to achieve and figuring out an appropriate strategy to get there. It is not born out of any market research. It does not come from extensive interviews with customers or even employees. It comes from looking in the completely opposite direction from where you are now. Finding WHY is a process of discovery, not invention."

Leadership requires two things:

“Leadership requires two things: a vision of the world that does not yet exist and the ability to communicate it.”