Translator: Amantia Gjikondi Reviewer: Dita Bytyci How do you explain when things do not go as we assume? Or rather, how do you explain it when others are able to achieve things that seem to challenge all assumptions? For example: Why is Apple so advanced? Year after year, after year, after year, they are more advanced than all their competitors. And so far, they are just a computer company. They are like everyone else. They have the same access to the same talent, the same agency, the same consultant, and the same media. Then why is it, that they look like they have something different? Why was Martin Luther King who led the civil rights movement? He was not the only man who suffered before civil rights in America.
And he certainly was not the only great orator of the day. Why him? And why is that the Wright brothers were able to understand the power of control, the direction of flight where there were probably other groups that were more qualified, better funded, and they had not achieved the flight of the empowered man and the Wright brothers beat them in it. There is something else in the game here. About three and a half years ago I made a discovery, and this discovery changed profoundly my view of how I thought the world worked. And that profoundly changed the way it was I act on it. As it turns out – there is a model – as it turns out, all the great and inspiring leaders and organizations around the world, such as Apple, or Martin Luther King or the Wright brothers, they all think, act and communicate in the same way.
And this is the complete opposite with everyone else. All I did was codify it. And that's probably the idea the simplest in the world. I call this the golden circle. Why? Are you? What? This little idea explains why some organizations and some leaders are able to inspire while others cannot. Let me define the terms really very quickly. Every single person, every organization on this planet know what they do, 100 percent. Some know how they accomplish it, how you call it, the differentiated value of your proposal or your ownership process or your USP. But, very very few people or organizations know why they do what they do. And starting from "why" I do not mean "to make a profit". This is a result. It is always a result. By "why" I mean: what is your purpose? What is your cause? What is your faith? Why does your organization exist? Why do you get out of bed in the morning? And why should anyone care? Well, as a result, the way we think, the way we act, the way we communicate is internally.
It is clear. We go from the clearest things to the most obscure things. But inspired leaders and inspirational organizations regardless of their size, regardless of their industry, everyone thinks, acts and communicates from inside – outside. Let me give you an example. I am taking the Apple example because it is simple to understand and everyone understands it. If Apple were like everyone else, a marketing message from them would sound this way. "We make good computers. They are beautifully designed, easy to use and comfortable in access. Will you buy one? "Blah. And that's the way most people communicate. This is how most marketing is done. This is how the biggest sales are realized. And how most of us communicate We say what we do, we say how we are different or how we are the best and we expect some kind of behavior, a purchase, a vote, something like that.
Here is our new law firm. We have the best lawyers with the strongest clients. We always act for our clients who do business with us. This is our new car. It gets great gas mileage, It has leather seats. Buy our car. But this is not inspiring. This is how Apple actually communicates. "Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo realized by making our products beautifully designed, easy to use and comfortable to access. We are here just to make computers better. Do you want to buy one? " Very different or not? You are ready to buy a computer from me.
All I did was change the way I provided the information What proves to us is that people do not buy what you do; people buy why you do it. People do not buy what you do; buy why you do it. This explains why that every person in this room is perfectly quiet to buy a computer from Apple. But we are also completely calm by buying an MP3 from Apple, or an Apple phone or a DVR from Apple. But like I said before, Apple is just a computer company. There is nothing that distinguishes them structurally by each of their competitors. Their competitors are all equally qualified to make all of these products. In fact, they tried. A few years ago, Gateway hit the market with flat screen TVs. They are extremely skilled at making flat screen TVs.
They have been making flat screens for years. No one has bought. Dell came to market with MP3s and PDAs. And they make good quality products. And they can make very well designed products. And no one has bought. In fact, talking about it now, we can not imagine to Buy an MP3 from Dell | Why would you buy an MP3 from a computer company? But we do it every day.
People do not buy what you do; buy why you do it. The goal is not to do business with anyone who needs what you have. The goal is to do business with people who believe what you believe. This is the most beautiful part. None of this is my opinion. It is all based on the principles of biology. Not psychology, biology. If you look at a cross section of the human brain, looking from top to bottom, What you see is that the human brain is actually destroyed in three main components perfectly related to the golden circle. Our new brain, our homo-sapiens brain our neocortex, corresponding to the level of "what". The neocortex is responsible for everything our rational, analytical thoughts and linguistic. The space between the two sections makes up our brain fluctuations. And our brain fluctuations are responsible for all our feelings, both faith and loyalty. It is also responsible for all human behavior, for all decision-making and there is no capacity for language. In other words, when we communicate internally people can understand vast amounts of complicated information as characteristics and benefits and facts and figures. This simply does not guide the behavior.
When we can communicate from the inside out, we are talking directly to the part of the brain that controls behavior, and then we let people justify it, with the tangible things we say and do. This is where internal decisions come from. You know, sometimes you can give it to someone all the facts and figures, and they say, "I know what all the facts and details say, but that's just not right. " Why should we use the verb, does not "feel" right? Because the part of the brain that controls decision-making, does not control language. And the best we can say is, "I do not know. She just does not feel right." Or sometimes you say you are leading with your heart, or you are leading with your soul. But, I hate to break it for you, they are not trivial parts of the body that control your behavior. Everything happens here in our brain fluctuations, the part of the brain that controls decision-making, not language. But if I do not know why he does what he does, and people answer why he does what he does, then how do you get people vote for you, or buy something from you, or, most importantly, be faithful and you will be part of what it is that you do.
Again, the goal is not just to sell to people who need what you have; the goal is to sell to people who believe what you believe. The goal is not just to hire people who need work; is to hire people who believe what you believe. I always say that, if you hire people just because they know how to do the job, they will work for your money, but if you hire people who believe what you believe, they will work for you with blood, sweat and tears And in no other country is there a better example of this than with the Wright brothers. Many people do not know about Samuel Pierpont Langley. And if we go back to the beginning of the 20th century, following the flying man empowerment was like the web of the day. Everyone was trying it. And Samuel Pierpont Langley had, what we assumed, to be the recipe for success.
What I mean is that even now you ask people. "Why the product or why did your company go bankrupt?" and people always give the same change all three things the same, sub-capitalization, wrong people, bad market conditions. They are always three things in the same way, let's find out. Samuel Pierpont Langley was given $ 50,000 by the War Department to detect the flying machine. Money was not a problem. He had a position at Harvard and worked at the Smithsoanian and was well connected. He knew all the great minds of the day. He employed the best minds that money could find. And the market conditions were fantastic. The New York Times followed him everywhere. And everyone had a purpose for Langley.
So how is it possible that you have never heard of Samuel Pierpont Langley? A few hundred miles away in Dayton Ohio, Orville and Wilbur Wright there was nothing of what we consider to be the recipe for success. They had no money. They paid for their dreams with the proceeds from their bicycle shop. No single person from the Wright brothers team there was no university education, nor Orville or Wilbur. And the New York Times followed them around for nothing. The difference was, Orville and Wilbur were expelled for a reason, by a purpose, by a belief. They believed that if they could detect this flying machine, this would change the course of the world.
Samuel Pierpont Lngley was different. He wanted to get rich, and he wanted to become famous. He was in pursuit of the result. He was in pursuit of wealth. And little by little, look what happened. People who believed in the dream of the Wright brothers, worked with them with blood, sweat and tears. Others worked for income. And they tell stories of how the Wright brothers came out every time, they had to take five sets of pieces, for this was the number how many times they would collide before coming there for dinner. And, finally, on December 17, 1903 the Wright brothers made a flight and no one was there just to experience it. We found out about her a few days later. And further it was proved that Langley was motivated by something wrong, the day the Wright brothers set off on the flight, he gave up.
He could have said, "This is a wonderful discovery guys, and I will improve it with technology, "but he did. He was not the first, he did not get rich, he did not become famous, so he gave up. People do not buy what you do; they buy why you do it. And if you talk about what you believe in, you will attract those who believe what you believe.
But why is it important to attract those who believe what you believe? Something called the law of innovation distribution. And if you do not know the law, you certainly know the terminology. The first two and a half percent of our population are our innovators. The next 13 and a half percent of our population are our early adapters. The other 34 percentages are your starting point, your last most and your backlog. The only reason these people buy touch phones is because you can not buy with rotating phones. (Laughter) We all sit in different places at different times on this scale, but what the law of innovation distribution tells us is that if you want massive market success or mass market acceptance of any idea you can not have it until you reach this turning point between 15 and 18 percent market penetration.
And then the system tips. And I love to ask businesses, "What is your conversion to new business?" And they love to say, "Oh, it's about 10 percent," with pride. Well, you can tax over 10 percent of customers. We all have about 10 percent that just "get it". That's the way we describe them, really. It's like that deep feeling, "Oh, they just get it." The problem is: How do you find those who get it? before you are doing business with them against those who do not understand it? So this is here, this little gap, that you have to close, as Jeffrey Moore calls it, "crossing the abyss." Because, you see, most early I will not try anything until someone else have tried it before.
And these guys, the Early Innovators and Adapters, they are comfortable making these profound decisions. They are more comfortable making these intuitive decisions guided by what you believe about the world and not just to what product is available. They are the people who stood in line for six hours to buy an iPhone when it hit the market, when they could only spend the next week in the store and buy one from the shelf.
These are people $ 40,000 on the flat screen TVs when they first came out and why technology has been substandard. And, by the way, they did not because the technology was very good. They did it for themselves. It's because they wanted to be the first. People do not buy what you do: they buy why you do it. And what it simply does verifies what you believe.
In fact, people will do things that prove what they believe. The reason that man bought the iPhone in the first six hours, standing in line for six hours, it was because of what they believed about the world, and how they wanted everyone to see them. They were the first. People do not buy what you do; they buy why you do it. So let me give you a famous example, a famous failure and a famous success of the law of distribution of innovation. First, the famous failure. This is an example of advertising.
As we said before, a second ago, the recipe for success is the right money and the right people and the right market conditions. Or not? You need to succeed afterwards. Watch TiVo. By the time TiVo came on stage, about eight or nine years ago from today, they are the simple product with high quality in the market, hands down, there is no dispute.
They were very well funded. Market conditions were fantastic. I mean, we now use TiVo as a verb. I download videos to my outdated video recorder almost every time But TiVo is a failed ad. They have never made money. And when they went to the IPO, their shares were about $ 30 or $ 40 and then fell, and it has never been traded over 10. Actually, I do not even think it is traded with over 6, with the exception of a few small parts. Because as you can see, when TiVo launched their product, they told us everything they had. They said, "We have a product that currently stops TV, that goes beyond advertising, that moves forward to what you are seeing on TV and that memorizes your visual expressions even without asking. " And most cynics said, "We do not trust you. We do not want it. We do not like it.
"You are scaring us." But if they were to say, "If you're the human type who likes to have complete control in every aspect of life, boy, do we have a product for you. This stops the TV moment, passes the commercials, memorizes your expressions, etc …. etc. " People do not buy what you do; they buy why you do it. And what you do only serves us to prove what you believe. Now let me give you a successful example of the law of distribution of innovation. In the summer of 1963, 250,000 people showed up at the mall in Washington to listen to the speech of Dr. King. They did not send invitations and there was no website to check the date. How do you do that? Well, Dr. King was not the only man in America who was a great orator. He was not the only man in America to suffer before civil rights in America. In fact, some of these ideas were wrong. But he had a gift. He did not go around telling people what it took to change America.
He would go around and tell people what he believed. "I believe. I believe, I believe," he told people. And the people who believed what he believed took his case, and made it their own, and told the people. And some of these people created structures to get the word out to even more people. And little by little, 250,000 people showed up on the right day, at the right time, to listen to his speech. How many of them showed up there for that? Zero. They appeared there for themselves. That's what they believed about America that made them travel by bus for eight hours, and stay in the sun in Washington in mid-August. It's what they believe, and it was not about blacks versus whites. 25 percent of the audience was white. Dr. King believed that there are two types of laws in the world, those that are built by a high authority and those that are man-made.
And not until all the laws are man-made are in accordance with the laws made by the higher authorities. we will live in a righteous world. This has happened only so that the Civil Rights Movement to be the perfect thing to help him to bring his case to life. We followed him, not for him, but for ourselves. And as far as I know, he told us the speech of "I have a dream", not the "I have a plan" speech. (Laughter) Listen to the politicians now with their full 12-point plans.
They are not inspiring anyone. Because there are leaders and there are those who lead. Leaders have a position of power or authority. But those who lead inspire us. Even if they are individuals or organizations, we follow those who lead, not because we have to follow them, but because we do not want. We follow those who lead, not for that, but for ourselves. And this is what starts with "why" that has the ability to inspire them around us or find others that inspire them. Thank you very much. (Applause).