Start With Why

What are the big ideas?

1. The Power of Authenticity: This book emphasizes the importance of authenticity in business and leadership, which is achieved when an organization's "Why," "How," and "What" are balanced. It highlights that people don't buy what a company does but rather why it does it. Effective communication requires starting with the "Why" and using "What's" as proof. (Chapter PART 2)
2. The Significance of the Golden Circle: The book introduces the concept of the Golden Circle, which is a framework for understanding why some organizations become cultural phenomena. It consists of three layers - What, How, and Why. Many companies focus too much on "What" and neglect "Why," leading to missed opportunities. (Chapter PART 3)
3. The Celery Test as a Decision Filter: The Celery Test is a metaphor for filtering decisions based on an organization's clearly defined "Why." It helps maintain trust and clarity in decision-making by consistently aligning "What" and "How" with the "Why." (Chapter PART 4)
4. The Role of Leaders: The book emphasizes that leaders are the ones who inspire people and build a strong "Why" for their organizations, creating followers who act not because they are swayed but because they are inspired. Leaders provide support for those who want to contribute rather than having all the great ideas themselves. (Chapter AFTERWORD)
5. Understanding Your Personal "Why": The book also encourages individuals to understand their personal "Why," as it can help them find meaning and purpose in their lives and work. Knowing your "Why" can lead to better decision-making, stronger relationships, and increased loyalty from others. (Chapter PART 6)

Chapter Summaries

Preface

Takeaways

• Discovering your "Why" can change your perspective on life and restore passion.
• Share valuable ideas with loved ones to inspire change.
• Practice what you preach to authentically promote an idea.
• A message that resonates with people will spread organically.
• Focusing on "Why" in work can lead to fulfillment and motivation.

Introduction

Takeaways

• Starting with "Why" is essential for inspiring and leading others, rather than just fixing what's not working. (Introduction)
• The Wright brothers succeeded in inventing the first airplane despite being underfunded and less educated than their well-equipped competitor, Langley, by focusing on their vision and inspiring their team. (Story of the Wright brothers)
• Steve Jobs and Steve Wozniak ignited the personal computer revolution by envisioning a technology that would give individuals the power to challenge corporations and change the world, and successfully building a company around it. (Story of Apple)
• Martin Luther King Jr.'s ability to inspire led him to unite a country and bring about civil rights for all, rather than just speaking eloquently or having charisma. (Story of Martin Luther King Jr.)
• Inspirational leaders create followers who act not because they are swayed but because they are inspired, making them more profitable, innovative, and able to sustain success over the long term. (Conclusion)

Quotes

“There are leaders and there are those who lead. Leaders hold a position of power or influence. Those who lead inspire us.”

“Great leaders, in contrast, are able to inspire people to act. Those who are able to inspire give people a sense of purpose or belonging that has little to do with any external incentive or benefit to be gained. Those who truly lead are able to create a following of people who act not because they were swayed, but because they were inspired. For those who are inspired, the motivation to act is deeply personal. They are less likely to be swayed by incentives. Those who are inspired are willing to pay a premium or endure inconvenience, even personal suffering. Those who are able to inspire will create a following of people—supporters, voters, customers, workers—who act for the good of the whole not because they have to, but because they want to.”

“Studies show that over 80 percent of Americans do not have their dream job. If more knew how to build organizations that inspire, we could live in a world in which that statistic was the reverse - a world in which over 80 percent of people loved their jobs. People who love going to work are more productive and more creative. They go home happier and have happier families. They treat their colleagues and clients and customers better. Inspired employees make for stronger companies and stronger economies.”

PART 1 - A WORLD THAT DOESN’T START WITH WHY

Takeaways

• Manipulations are a valid strategy for driving a transaction or behavior that occurs only once or on rare occasions.
• Loyalty is important for businesses seeking long-term success and relationships, but manipulations do not help build it.
• Manipulations cost money and can lead to stress for both the buyer and seller.
• The economic crisis of 2008 was a result of widespread use of manipulations in business decisions.
• An alternative to manipulations is focusing on building genuine relationships, causes, and beliefs that inspire loyalty and long-term success.

Quotes

“This is important because our behavior is affected by our assumptions or our perceived truths. We make decisions based on what we think we know.”

“You have to be careful what you think you know.”

“There’s barely a product or service on the market today that customers can’t buy from someone else for about the same price, about the same quality, about the same level of service and about the same features. If you truly have a first-mover’s advantage, it’s probably lost in a matter of months. If you offer something truly novel, someone else will soon come up with something similar and maybe even better. But if you ask most businesses why their customers are their customers, most will tell you it’s because of superior quality, features, price or service. In other words, most companies have no clue why their customers are their customers. This is a fascinating realization.”

“If most companies don’t really know why their customers are their customers or why their employees are their employees, then how do they know how to attract more employees and encourage loyalty among those they already have?”

“There are only two ways to influence human behavior: you can manipulate it or you can inspire it.”

“Like so many before it, the company confused innovation with novelty.”

PART 2 - AN ALTERNATIVE PERSPECTIVE

Takeaways

• Authenticity is achieved when an organization's WHY, HOW, and WHAT are in balance.
• People don't buy what a company does; they buy why it does it.
• The human brain is wired to make decisions based on emotions (WHY) before rational considerations (WHAT).
• Effective communication in business requires starting with the WHY and using WHATs as proof, rather than leading with features or benefits.
• People are more likely to trust and build long-term relationships with organizations whose values align with their own.
• Decisions that feel right but lack a clear emotional context can be explained and justified when rooted in a strong sense of WHY.
• Focusing on doing business with those who believe in your WHY leads to increased trust, authenticity, and long-term success.

Quotes

“WHAT: Every single company and organization on the planet knows WHAT they do. This is true no matter how big or small, no matter what industry. Everyone is easily able to describe the products or services a company sells or the job function they have within that system. WHATs are easy to identify. HOW: Some companies and people know HOW they do WHAT they do. Whether you call them a “differentiating value proposition,” “proprietary process” or “unique selling proposition,” HOWs are often given to explain how something is different or better. Not as obvious as WHATs, many think these are the differentiating or motivating factors in a decision. It would be false to assume that’s all that is required. There is one missing detail: WHY: Very few people or companies can clearly articulate WHY they do WHAT they do. When I say WHY, I don’t mean to make money—that’s a result. By WHY I mean what is your purpose, cause or belief? WHY does your company exist? WHY do you get out of bed every morning? And WHY should anyone care? When most organizations or people think, act or communicate they do so from the outside in, from WHAT to WHY. And for good reason—they go from clearest thing to the fuzziest thing. We say WHAT we do, we sometimes say HOW we do it, but we rarely say WHY we do WHAT we do. But not the inspired companies. Not the inspired leaders. Every single one of them, regardless of their size or their industry, thinks, acts and communicates from the inside out.”

“people don’t buy WHAT you do, they buy WHY you do it.”

“The problem was, they advertised their product as a “5GB mp3 player.” It is exactly the same message as Apple’s “1,000 songs in your pocket.” The difference is Creative told us WHAT their product was and Apple told us WHY we needed it.”

“People don't buy what you do; they buy why you do it. And what you do simply proves what you believe”

“the course of time, all of Apple’s competitors lost their WHY. Now all those companies define themselves by WHAT they do: we make computers. They turned from companies with a cause into companies that sold products. And when that happens, price, quality, service and features become the primary currency to motivate a purchase decision. At that point a company and its products have ostensibly become commodities. As any company forced to compete on price, quality, service or features alone can attest, it is very hard to differentiate for any period of time or build loyalty on those factors alone.”

“Even with objective metrics in hand, the argument about which is better or which is worse without first establishing a common standard creates nothing more than debate.”

“Instead of asking, “WHAT should we do to compete?” the questions must be asked, “WHY did we start doing WHAT we’re doing in the first place, and WHAT can we do to bring our cause to life considering all the technologies and market opportunities available today?” But”

“Our need to belong is not rational, but it is a constant that exists across all people in all cultures.”

“But when a company clearly communicates their WHY, what they believe, and we believe what they believe, then we will sometimes go to extraordinary lengths to include those products or brands in our lives.”

“We are drawn to leaders and organizations that are good at communicating what they believe. Their ability to make us feel like we belong, to make us feel special, safe and not alone is part of what gives them the ability to inspire us. Those whom we consider great leaders all have an ability to draw us close and to command our loyalty. And we feel a strong bond with those who are also drawn to the same leaders and organizations.”

“That’s the problem with love; we only know when we’ve found it because it “just feels right.”

“Companies that fail to communicate a sense of WHY force us to make decisions with only empirical evidence. This is why those decisions take more time, feel difficult or leave us uncertain.”

“Henry Ford summed it up best. “If I had asked people what they wanted,” he said, “they would have said a faster horse.”

“Great leaders are those who trust their gut. They are those who understand the art before the science. They win hearts before minds. They are the ones who start with WHY.”

“Products with a clear sense of WHY give people a way to tell the outside world who they are and what they believe. Remember, people don’t buy WHAT you do, they buy WHY you do it. If a company does not have a clear sense of WHY then it is impossible for the outside world to perceive anything more than WHAT the company does. And when that happens, manipulations that rely on pushing price, features, service or quality become the primary currency of differentiation.”

“If the leader of the organization can’t clearly articulate WHY the organization exists in terms beyond its products or services, then how does he expect the employees to know WHY to come to work?”

“For values or guiding principles to be truly effective they have to be verbs. It’s not “integrity,” it’s “always do the right thing.” It’s not “innovation,” it’s “look at the problem from a different angle.” Articulating our values as verbs gives us a clear idea … we”

“The only way people will know what you believe is by the things you say and do, and if you’re not consistent in the things you say and do, no one will know what you believe.”

“There are many ways to motivate people to do things, but loyalty comes from the ability to inspire people. Only when the WHY is clear and when people believe what you believe can a true loyal relationship develop.”

“Ironically, the woman’s initial interest may have been generated based on those elements. She agreed to go on the date because her friends told her that Brad was good-looking and that he had a good job and that he knew a lot of famous people. Even though all those things may be true, WHATs don’t drive decision-making, WHATs should be used as proof of WHY, and the date plainly fell flat.”

“Working hard for something we do not care about is called stress, working hard for something we love is called passion.”

PART 3 - LEADERS NEED A FOLLOWING

Takeaways

• The Golden Circle is a framework for understanding why some organizations and ideas become cultural phenomena, while others struggle.
• It consists of three layers: What (the product or service), How (the unique selling point or process), and Why (the purpose, belief, or cause).
• Many companies focus too much on the "What" and neglect the "Why," which can lead to lackluster results and missed opportunities.
• The Law of Diffusion states that new ideas and technologies follow a predictable pattern of adoption, with innovators and early adopters leading the way.
• Successful movements and businesses tap into the belief systems and values of their audiences and build a strong "Why" that resonates deeply.
• Martin Luther King Jr.'s "I Have a Dream" speech is an example of effective communication of a powerful "Why," which inspired millions to take action.

Quotes

“Trust does not emerge simply because a seller makes a rational case why the customer should buy a product or service, or because an executive promises change. Trust is not a checklist. Fulfilling all your responsibilities does not create trust. Trust is a feeling, not a rational experience. We trust some people and companies even when things go wrong, and we don’t trust others even though everything might have gone exactly as it should have. A completed checklist does not guarantee trust. Trust begins to emerge when we have a sense that another person or organization is driven by things other than their own self-gain. With trust comes a sense of value—real value, not just value equated with money. Value, by definition, is the transference of trust. You can’t convince someone you have value, just as you can’t convince someone to trust you. 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.”

“There are only two ways to influence human behavior: you can manipulate it or you can inspire it.

Very few people or companies can clearly articulate WHY they do WHAT they do. By WHY I mean your purpose, cause or belief - WHY does your company exist? WHY do you get out of bed every morning? And WHY should anyone care?

People don’t buy WHAT you do, they buy WHY you do it.

We are drawn to leaders and organizations that are good at communicating what they believe. Their ability to make us feel like we belong, to make us feel special, safe and not alone is part of what gives them the ability to inspire us.

For values or guiding principles to be truly effective they have to be verbs. It’s not “integrity,” it’s “always do the right thing.” It’s not “innovation,” it’s “look at the problem from a different angle.” Articulating our values as verbs gives us a clear idea - we have a clear idea of how to act in any situation.

Happy employees ensure happy customers. And happy customers ensure happy shareholders—in that order.

Leading is not the same as being the leader. Being the leader means you hold the highest rank, either by earning it, good fortune or navigating internal politics. Leading, however, means that others willingly follow you—not because they have to, not because they are paid to, but because they want to.

You don’t hire for skills, you hire for attitude. You can always teach skills.

Great companies don’t hire skilled people and motivate them, they hire already motivated people and inspire them. People are either motivated or they are not. Unless you give motivated people something to believe in, something bigger than their job to work toward, they will motivate themselves to find a new job and you’ll be stuck with whoever’s left.

Trust is maintained when values and beliefs are actively managed. If companies do not actively work to keep clarity, discipline and consistency in balance, then trust starts to break down.

All organizations start with WHY, but only the great ones keep their WHY clear year after year.”

“Being the leader means you hold the highest rank, either by earning it, good fortune or navigating internal politics. Leading, however, means that others willingly follow you—not because they have to, not because they are paid to, but because they want to.”

“Those who lead are able to do so because those who follow trust that the decisions made at the top have the best interest of the group at heart. In turn, those who trust work hard because they feel like they are working for something bigger than themselves.”

“Cultures are groups of people who come together around a common set of values and beliefs. When we share values and beliefs with others, we form trust. Trust of others allows us to rely on others to help protect our children and ensure our personal survival.”

“A company is a culture. A group of people brought together around a common set of values and beliefs. It’s not products or services that bind a company together. It’s not size and might that make a company strong, it’s the culture—the strong sense of beliefs and values that everyone, from the CEO to the receptionist, all share. So the logic follows, the goal is not to hire people who simply have a skill set you need, the goal is to hire people who believe what you believe.”

“As Herb Kelleher famously said, “You don’t hire for skills, you hire for attitude. You can always teach skills.”

“Great companies don’t hire skilled people and motivate them, they hire already motivated people and inspire them. People are either motivated or they are not. Unless you give motivated people something to believe in, something bigger than their job to work toward, they will motivate themselves to find a new job and you’ll be stuck with whoever’s left.”

“Average companies give their people something to work on. In contrast, the most innovative organizations give their people something to work toward.”

“The role of a leader is not to come up with all the great ideas. The role of a leader is to create an environment in which great ideas can happen.”

“The lack of a clear set of values and beliefs, along with the weak culture that resulted, created the conditions for an every-man-for-himself environment, the long-term impact of which could yield little else than disaster. This is caveman stuff.”

“If the people aren’t looking out for the community, then the benefits of a community erode. Many companies have star employees and star salesmen and so on, but few have a culture that produces great people as a rule and not an exception.”

“Some in management positions operate as if they are in a tree of monkeys. They make sure that everyone at the top of the tree looking down sees only smiles. But all too often, those at the bottom looking up see only asses.”

“Innovation is not born from the dream, innovation is born from the struggle.”

“The farther right you go on the curve, the more you will encounter the clients and customers who may need what you have, but don't necessarily believe what you believe. As clients, they are the ones for whom, no matter how hard you work, it's never enough. Everything usually boils down to price with them. They are rarely loyal. They rarely give referrals and sometimes you may even wonder out loud why you still do business with them. "They just don't get it," our gut tells us. The importance of identifying this group is so that you can avoid doing business with them.”

“Don’t forget, the superior Betamax technology did not beat out the substandard VHS technology as the standard format for videotape in the 1980s.”

“If they had started their sales pitch with WHY the product existed in the first place, the product itself would have become the proof of the higher cause—proof of WHY.”

“When you start with WHY, those who believe what you believe are drawn to you for very personal reasons. It is those who share your values and beliefs, not the quality of your products, that will cause the system to tip.”

“He gave the “I Have a Dream” speech, not the “I Have a Plan” speech.”

PART 4 - HOW TO RALLY THOSE WHO BELIEVE

Takeaways

• The Celery Test is a metaphor for filtering decisions based on an organization's clearly defined WHY.
• Best practices are not always best, as what works for one organization may not work for another.
• Consistently aligning WHAT and HOW you do with your WHY is essential to maintain trust and clarity in decision-making.
• Being clear about your WHY enables others to understand your beliefs and attract like-minded individuals or organizations.
• Inconsistent actions that deviate from an organization's WHY can dilute its message and undermine trust.

Quotes

“It’s not Bill Gates’s passion for computers that inspires us, it’s his undying optimism that even the most complicated problems can be solved.”

“Charisma has nothing to do with energy; it comes from a clarity of WHY. It comes from absolute conviction in an ideal bigger than oneself. Energy, in contrast, comes from a good night’s sleep or lots of caffeine. Energy can excite. But only charisma can inspire. Charisma commands loyalty. Energy does not.”

“Regardless of WHAT we do in our lives, our WHY—our driving purpose, cause or belief—never changes.”

“The vision is the public statement of the founder’s intent, WHY the company exists. It is literally the vision of a future that does not yet exist. The mission statement is a description of the route, the guiding principles—HOW the company intends to create that future. When both of those things are stated clearly, the WHY-type and the HOW-type are both certain about their roles in the partnership. Both are working together with clarity of purpose and a plan to get there. For it to work, however, it requires more than a set of skills, it requires trust. As”

“There are leaders and there are those who lead. Leaders hold a position of power or influence. Those who lead inspire us. Whether individuals or organizations, we follow those who lead not because we have to, but because we want to. We follow those who lead not for them, but for ourselves. This is a book for those who want to inspire others and for those who want to find someone to inspire them.”

“The WHY exists in the part of the brain that controls feelings and decision-making but not language. WHATs exist in the part of the brain that controls rational thought and language.”

“Put bluntly, the struggle that so many companies have to differentiate or communicate their true value to the outside world is not a business problem, it's a biology problem. And just like a person struggling to put her emotions into words, we rely on metaphors, imagery and analogies in an attempt to communicate how we feel. Absent the proper language to share our deep emotions, our purpose, cause or belief, we tell stories. We use symbols. We create tangible things for those who believe what we believe to point to and say, "That's why I'm inspired." If done properly, that's what marketing, branding and products and services become; a way for organizations to communicate to the outside world. Communicate clearly and you shall be understood.”

“COMMUNICATION IS NOT ABOUT SPEAKING, IT’S ABOUT LISTENING”

“In order to improve HOW and WHAT we do, we constantly look to what others are doing. We attend conferences, read books, talk to friends and colleagues to get their input and advice, and sometimes we are also the dispensers of advice. We are in pursuit of understanding 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. Even if the industries, sizes and market conditions are the same, the notion that “if it’s good for them, it’s good for us” is simply not true.”

PART 5 - THE BIGGEST CHALLENGE IS SUCCESS

Takeaways

• The WHY is the purpose, cause or belief that inspires a company to exist.
• Companies built around a clear WHY have a deep sense of direction and focus.
• WHAT a company does is the manifestation of its WHY.
• Leaders who embody their companies' WHY inspire those around them to believe in it as well.
• The Law of Diffusion helps spread the message of a strong WHY.
• Companies that lose sight of their WHY can face significant challenges and decreased performance.
• Apple, Southwest Airlines, Costco and Wal-Mart are examples of companies with clear and inspiring WHYs.
• Sam Walton, Steve Jobs, Herb Kelleher, Jim Sinegal and Colleen Barrett embodied their companies' WHYs and inspired those around them to do the same.
• Companies that focus on shareholder value at the expense of their WHY can face negative consequences.
• The Celery Test is a way to assess whether a company's actions align with its stated purpose or cause.

Quotes

“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.”

“Passion alone can't cut it. For passion to survive it needs structure. A why without how has little probability of success.”

“Successful succession is more than selecting someone with an appropriate skill set—it’s about finding someone who is in lockstep with the original cause around which the company was founded. Great second or third CEOs don’t take the helm to implement their own vision of the future; they pick up the original banner and lead the company into the next generation. That’s why we call it succession, not replacement. There is a continuity of vision.”

“When people know WHY you do WHAT you do, they are willing to give you credit for everything that could serve as proof of WHY.”

“When they are unclear about your WHY, WHAT you do has no context. Even though”

PART 6 - DISCOVER WHY

Takeaways

• The Golden Circle consists of three layers: What, How, and Why.
• Most organizations know their "What" (what they produce or sell) and some may even know their "How" (how they do it), but very few know their "Why" (the purpose, cause, or belief that inspires them).
• The "Why" is the most powerful part of an organization because it's the reason why it exists and what inspires people to support it.
• Knowing your "Why" can help organizations make better decisions, build stronger relationships, and inspire greater loyalty from customers and employees.
• Individuals can also benefit from understanding their personal "Why," as it can help them find meaning and purpose in their lives and work.
• The Law of Diffusion states that ideas, messages, and products only spread when they satisfy three criteria: the right people hear the message at the right time in the right context.
• To be effective, leaders must understand the context of their audience and tailor their message to resonate with them.
• The "Megaphone" is a tool that can help individuals and organizations amplify their message and reach more people.
• Start with WHY is not about manipulating or convincing others to believe something, but rather about inspiring and leading them towards a shared goal.
• By focusing on our own "Why," we can inspire and lead others to do the same, creating a positive ripple effect that can change the world.

Quotes

“Finding WHY is a process of discovery, not invention.”

“Greatness is not born from one success. Greatness is born from persevering through the countless failed attempts that preceded.”

“Every company, organization or group with the ability to inspire starts with a person or small group of people who were inspired to do something bigger than themselves. Gaining clarity of WHY, ironically, is not the hard part. It is the discipline to trust one's gut, to stay true to one's purpose, cause or beliefs. Remaining completely in balance and authentic is the most difficult part.”

“As anyone who starts a business knows, it is a fantastic race. There is a statistic that hangs over your head - over 90 percent of all new businesses fail in the first three years. For anyone with even a bit of competitive spirit in them, especially for someone who defines himself or herself as an entrepreneur, these overwhelming odds of failure are not intimidating, they only add fuel to the fire. The foolishness of thinking that you're a part of the small minority of those who actually will make it past three years and defy the odds is part of what makes entrepreneurs who they are, driven by passion and completely irrational.”

“When you compete against everyone else, no one wants to help you. But when you compete against yourself, everyone wants to help you.”

“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 to outdo themselves. The pursuit, for those who lose sight of WHY they are running the race, is for the medal or to beat someone else.”

“Imagine if every organization started with WHY. Decisions would be simpler. Loyalties would be greater. Trust would be a common currency.”

AFTERWORD

Takeaways

• Leadership is about having followers who choose to join you, not based on power or authority.
• A leader inspires people by thinking, acting, and speaking in a way that motivates them to follow.
• Leaders lead people, not organizations or companies.
• The second leader on the deserted island was followed because of his vision and ability to communicate it clearly.
• Vision and communication are essential components of effective leadership.
• Leaders have a clear "why" that drives their actions and inspires others to join them.
• Leaders provide support for those who want to contribute, rather than having all the great ideas themselves.
• Leadership is about inspiring action and working towards a shared goal.

Quotes

“Leadership is always about people.”

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

“Our visions are the world we imagine, the tangible results of what the world would look like if we spent every day in pursuit of our WHY.”

Discussion

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