00:00:01
how do you explain when things don't go
00:00:03
as we assume or better how do you
00:00:07
explain when others are able to achieve
00:00:09
things that seem to defy all of the
00:00:11
assumptions for example why is Apple so
00:00:15
Innovative year after year after year
00:00:17
after year they're more Innovative than
00:00:19
all their competition and yet they're
00:00:22
just a computer company they're just
00:00:23
like everyone else they have the same
00:00:25
access to the same Talent the same
00:00:27
agencies the same Consultants the same
00:00:29
media
00:00:30
then why is it that they seem to have
00:00:32
something
00:00:33
different why is it that Martin Luther
00:00:36
King led the Civil Rights Movement he
00:00:39
wasn't the only man who suffered in a
00:00:41
preil rights America and he certainly
00:00:43
wasn't the only great orator of the day
00:00:45
why him and why is it that the wri
00:00:49
brothers were able to figure out
00:00:51
controll powered man flight when there
00:00:53
were certainly other teams who were
00:00:54
better qualified better
00:00:56
funded and they didn't achieve powered
00:01:00
man flight and the right Brothers beat
00:01:01
them to it there's something else at
00:01:04
play
00:01:05
here about 3 and a half years ago I made
00:01:08
a discovery and this discovery
00:01:11
profoundly changed my view on how I
00:01:14
thought the world worked and it even
00:01:16
profoundly changed the way in which I
00:01:18
operate in
00:01:21
it as it turns out there's a pattern as
00:01:24
it turns out all the great and inspiring
00:01:27
leaders and organizations in the world
00:01:29
whether it's apple or Martin Luther King
00:01:30
or the R Brothers they all think act and
00:01:33
communicate the exact same way and it's
00:01:36
the complete opposite to everyone else
00:01:40
all I did was codify it and it's
00:01:42
probably the world's simplest idea I
00:01:46
call it the Golden
00:01:55
Circle why how what this little idea
00:02:00
explains why some organizations and some
00:02:02
leaders are able to inspire where others
00:02:04
aren't let me Define the terms really
00:02:06
quickly every single person every single
00:02:09
organization on the planet knows what
00:02:11
they do
00:02:12
100% some know how they do it whether
00:02:16
you call it your differentiating value
00:02:17
proposition or your proprietary process
00:02:19
or your USP but very very few people or
00:02:22
organizations know why they do what they
00:02:24
do and by why I don't mean to make a
00:02:27
profit that's a result it's always a
00:02:29
result by why I mean what's your purpose
00:02:31
what's your cause what's your belief why
00:02:34
does your organization
00:02:37
exist why do you get out of bed in the
00:02:39
morning and why should anyone care well
00:02:43
as a result the way we think the way we
00:02:44
act the way we communicate is from the
00:02:46
outside in it's obvious we go from the
00:02:47
clearest thing to the fuzziest thing but
00:02:50
the inspired leaders and the inspir or
00:02:52
inspired organizations regardless of
00:02:55
their size regardless of their industry
00:02:57
all think act and communicate from the
00:03:00
inside
00:03:01
out let me give you an example I use
00:03:04
apple because they're easy to understand
00:03:05
and everybody gets it if Apple were like
00:03:08
everyone else a marketing message from
00:03:11
them might sound like this we make great
00:03:15
computers they're beautifully designed
00:03:17
simple to use and user friendly want to
00:03:20
buy
00:03:21
one me and that's how most of us
00:03:24
communicate that's how most marketing is
00:03:26
done that's how most sales is done and
00:03:27
that's how most of us communicate
00:03:28
interpersonally we say what we do we say
00:03:30
how we're different or how we better and
00:03:32
we expect some sort of behavior a
00:03:33
purchase a vote something like that
00:03:35
here's our new law firm uh we have the
00:03:37
best lawyers with the biggest clients we
00:03:39
have you know we always perform for our
00:03:40
clients do business with us here's our
00:03:42
new car it gets great gas mileage it has
00:03:45
you know leather seats by our car but
00:03:47
it's uninspiring here's how Apple
00:03:50
actually
00:03:52
communicates everything we do we believe
00:03:56
in challenging the status quo we believe
00:03:59
in thinking
00:04:00
differently the way we challenge the
00:04:02
status quo is by making our products
00:04:04
beautifully designed simple to use and
00:04:06
user friendly we just happen to make
00:04:09
great computers want to buy
00:04:11
one totally different right you're ready
00:04:14
to buy a computer from me all I did was
00:04:16
reverse the order of the information
00:04:17
what it proves to us is that people
00:04:19
don't buy what you do people buy why you
00:04:21
do it people don't buy what you do they
00:04:23
buy why you do it this explains why
00:04:26
every single person in this room is
00:04:29
perfectly comfortable buying a computer
00:04:30
from Apple but we're also perfectly
00:04:33
comfortable buying an MP3 player from
00:04:35
Apple or a phone from Apple or a DVR
00:04:38
from Apple but as I said before Apple's
00:04:40
just a computer company there's nothing
00:04:41
that distinguishes them structurally
00:04:43
from any of their competitors their
00:04:44
competitors are all equally qualified to
00:04:47
make all of these products in fact they
00:04:48
tried a few years ago Gateway came out
00:04:51
with flat screen TVs they're eminently
00:04:53
qualified to make flat screen TVs
00:04:55
they've been making flat screen monitors
00:04:56
for years nobody bought one
00:05:02
and
00:05:03
Dell Dell came out with MP3 players and
00:05:07
pdas and they make great quality
00:05:09
products and they can make perfectly
00:05:11
well-designed products and nobody bought
00:05:13
one in fact talking about it now we
00:05:15
can't even imagine buying an MP3 player
00:05:17
from Dell why would you buy an MP3
00:05:19
player from a computer company but we do
00:05:21
it every day people don't buy what you
00:05:23
do they buy why you do it the goal is
00:05:26
not to do business with anybody with
00:05:28
everybody who needs what you have the
00:05:30
goal is to do business with people who
00:05:33
believe what you
00:05:34
believe here's the best part none of
00:05:37
what I'm telling you is my opinion it's
00:05:40
all grounded in the tenants of biology
00:05:42
not psychology biology if you look at a
00:05:45
cross-section of the human brain looking
00:05:47
from the top down what you see is the
00:05:48
human brain is actually broken into
00:05:50
three major components that correlate
00:05:53
perfectly with the Golden Circle our
00:05:55
newest brain our Homo Sapien brain our
00:05:58
neocortex corresponds with the what
00:06:00
level the neocortex is responsible for
00:06:03
all of our rational and analytical
00:06:05
thought and language the middle two
00:06:08
sections make up our lyic brains and our
00:06:11
lyic brains are responsible for all of
00:06:12
our feelings like trust and loyalty it's
00:06:17
also responsible for all human behavior
00:06:19
all decision-making and it has no
00:06:21
capacity for language in other words
00:06:24
when we communicate from the outside in
00:06:26
yes people can understand vast amounts
00:06:28
of complicated information like features
00:06:30
and benefits and facts and figures it
00:06:32
just doesn't drive behavior when we
00:06:34
communicate from the inside out we're
00:06:36
talking directly to the part of the
00:06:38
brain that controls behavior and then we
00:06:40
allow people to rationalize it with the
00:06:43
tangible things we say and do this is
00:06:45
where gut decisions come from you know
00:06:48
sometimes you can give somebody all the
00:06:50
facts and your figures and you say I
00:06:51
know what all the facts and details say
00:06:53
but it just doesn't feel right why would
00:06:55
we use that verb it doesn't feel right
00:06:57
because the part of the brain that
00:06:58
controls decision making doesn't control
00:07:01
language and the best we can muster up
00:07:02
is I don't know it just doesn't feel
00:07:04
right or sometimes you say you're
00:07:06
leading with your heart or you're
00:07:07
leading with your soul well I hate to
00:07:08
break it to you those aren't other body
00:07:10
parts controlling your behavior it's all
00:07:12
Happening Here in your lyic brain the
00:07:14
part of the brain that controls
00:07:15
decision-making and not language but if
00:07:18
you don't know why you do what you do
00:07:21
and people respond to why you do what
00:07:23
you do then how will anybody how will
00:07:25
you ever get people to to to to vote for
00:07:27
you or buy something from you or more
00:07:28
important
00:07:29
be loyal and want to be a part of what
00:07:32
it is what that you do again the goal is
00:07:35
not just to to sell people who need what
00:07:36
you have the goal is to sell to people
00:07:38
who believe what you believe the goal is
00:07:40
not just to hire people who need a job
00:07:44
it's to hire people who believe what you
00:07:46
believe I always say that you know
00:07:48
there's uh if you if you if you um hire
00:07:52
people just because they can do a job
00:07:53
they'll work for your money but if you
00:07:55
hire people who believe what you believe
00:07:56
they work for you with blood and sweat
00:07:58
and tears and nowh nowhere else is there
00:08:00
a better example of this than with the R
00:08:02
Brothers most people don't know about
00:08:04
Samuel Pont Langley and back in the
00:08:07
early 20th century the pursuit of
00:08:09
powered man flight was like the do come
00:08:11
of the day everybody was trying it and
00:08:14
Samuel Pont Langley had what we assume
00:08:17
to be the recipe for success I mean even
00:08:20
now you ask people why did your product
00:08:22
or why did your company fail and people
00:08:24
always give you the per same permutation
00:08:25
of the same three things under
00:08:27
capitalized the wrong people bad market
00:08:30
conditions it's always the same three
00:08:32
things so let's explore that Samuel Pont
00:08:35
Langley was given $50,000 by the war
00:08:38
department to figure out this flying
00:08:40
machine money was no problem he held a
00:08:43
seat at Harvard and worked at the
00:08:45
smithonian and was extremely well
00:08:47
connected he knew all the big mines of
00:08:48
the day he hired the best mines money
00:08:52
could find and the market conditions
00:08:54
were fantastic the New York Times
00:08:56
followed him around everywhere and
00:08:58
everyone was rooting for Langley and how
00:09:01
come we've never heard of Samuel
00:09:02
Pierpont Langley a few hundred miles
00:09:05
away in Dayton
00:09:06
Ohio orille and Wilbur Wright they had
00:09:10
none of what we consider to be the
00:09:12
recipe for Success they had no money
00:09:14
they paid for their dream with the
00:09:15
proceeds from their bicycle shop not a
00:09:17
single person on the R Brothers team had
00:09:20
a college education not even Orville or
00:09:22
Wilbur and the New York Times followed
00:09:24
them around
00:09:26
nowhere the difference was Orville and
00:09:29
Wilbur were driven by a cause by a
00:09:31
Purpose By A belief they belied that if
00:09:33
they could figure out this flying
00:09:35
machine it'll change the course of the
00:09:39
world Samuel Pont Langley was different
00:09:42
he wanted to be rich and he wanted to be
00:09:44
famous he was in pursuit of the result
00:09:46
he was in pursuit of the riches and lo
00:09:49
and behold look what happened the people
00:09:51
who
00:09:52
believed in the Wright brothers dream
00:09:54
worked with them with blood and sweat
00:09:55
and tears the others just worked for the
00:09:58
paycheck and they tell stories of how
00:10:00
every time the R Brothers went out they
00:10:02
would have to take five sets of Parts
00:10:03
because that's how many times they would
00:10:05
crash before they came in for
00:10:07
supper and eventually on December 17th
00:10:11
1903 the right Brothers took flight and
00:10:14
no one was there to even experience it
00:10:17
we found out about it a few days
00:10:19
later and further proof that Langley was
00:10:22
motivated by the wrong thing the day the
00:10:25
right Brothers took flight he quit he
00:10:28
could have said said that's an amazing
00:10:30
Discovery guys now will improve upon
00:10:32
your technology but he didn't he wasn't
00:10:35
first he didn't get rich he didn't get
00:10:36
famous so he quit people don't buy what
00:10:40
you do they buy why you do it and if you
00:10:42
talk about what you believe you will
00:10:44
attract those who believe what you
00:10:45
believe well why is it important to
00:10:47
attract those who believe what you
00:10:51
believe something called the law of
00:10:53
diffusion of innovation and if you don't
00:10:55
know the law you definitely know the
00:10:56
terminology the first 2 and a half% of
00:10:58
our our population are our innovators
00:11:02
the next 13 and a half% of our
00:11:04
population are our early
00:11:06
adopters the next 34% are your early
00:11:08
majority your late majority and your
00:11:11
laggards the only reason these people
00:11:13
buy touch tone phones is because you
00:11:15
can't buy rotary phones
00:11:16
[Music]
00:11:18
anymore we all sit at various places at
00:11:21
various times on the scale but with the
00:11:22
law of defusion of innovation tells us
00:11:25
is that if you want Mass Market success
00:11:27
or mass Market acceptance of an idea you
00:11:30
cannot have it until you achieve this
00:11:33
Tipping Point between 15 and 18% Market
00:11:36
penetration and then the system tips and
00:11:40
I love asking businesses what's your
00:11:41
conversion on new business and they love
00:11:43
to tell you oh it's about 10% proudly
00:11:45
well you can trip over 10% of the
00:11:46
customers we all have about 10% who just
00:11:48
get it that's how we describe them right
00:11:50
that's like that gut feeling oh they
00:11:51
just get it the problem is how do you
00:11:53
find the ones that just get it before
00:11:54
you're doing business with them versus
00:11:56
the ones who don't get it so it's this
00:11:59
here this little Gap that you have to
00:12:02
close as Jeffrey Moore calls it crossing
00:12:04
the chasm because you see the early
00:12:06
majority will not try something until
00:12:09
someone else has tried it first and
00:12:13
these guys the innovators and the early
00:12:15
adopters they're comfortable making
00:12:17
those gut decisions they're more
00:12:18
comfortable making those intuitive
00:12:20
decisions that are driven by what they
00:12:22
believe about the
00:12:24
world and not just what product is
00:12:26
available these are the people who stood
00:12:28
online for 6 hours to buy an iPhone when
00:12:30
they first came out when you could have
00:12:32
just walked into the store the next week
00:12:33
and bought one off the shelf these are
00:12:35
the people who spent $40,000 on flat
00:12:38
screen TVs when they first came out even
00:12:40
though the technology was
00:12:42
substandard and by the way they didn't
00:12:43
do it because the technology was so
00:12:45
great they did it for themselves it's
00:12:48
because they wanted to be first people
00:12:51
don't buy what you do they buy why you
00:12:52
do it and what you do simply proves what
00:12:55
you
00:12:56
believe in fact people will do the
00:12:58
things that prove what they believe now
00:13:00
let me give you a successful example of
00:13:03
the law of diffusion of
00:13:05
innovation in the summer of
00:13:08
1963 250,000 people showed up on the
00:13:12
mall in Washington to hear Dr King
00:13:15
speak they sent out no
00:13:18
invitations and there was no website to
00:13:20
check the date how do you do that well
00:13:25
Dr King wasn't the only man in America
00:13:27
who was the who was a great orator he
00:13:29
wasn't the only man in America who
00:13:30
suffered in a preil rights America in
00:13:32
fact some of his ideas were bad but he
00:13:35
had a gift he didn't go around telling
00:13:38
people what needed to change in America
00:13:40
he know he went around and told people
00:13:41
what he believed I believe I believe I
00:13:44
believe he told people and people who
00:13:47
believed what he believed took his cause
00:13:49
and they made it their own and they told
00:13:51
people and some of those people uh
00:13:53
created structures to get the word out
00:13:55
to even more people and lo and behold
00:13:58
200 50,000 people showed up on the right
00:14:01
day on the right time to hear him speak
00:14:05
how many of them showed up for
00:14:08
him
00:14:10
zero they showed up for themselves it's
00:14:13
what they believed about America that
00:14:16
got them to travel on a bus for 8 hours
00:14:17
to stand in the sun in Washington for in
00:14:19
the middle of August it's what they
00:14:21
believed and it wasn't about black
00:14:23
versus white 25% of the audience was
00:14:26
white Dr King believed that there are
00:14:29
two types of laws in this world those
00:14:31
that are made by a higher authority
00:14:32
authority and those that are made by man
00:14:35
and not until all the laws that are made
00:14:36
by man are consistent with the laws that
00:14:39
are made by the higher authority will we
00:14:40
live in a just World it just so happens
00:14:43
that the Civil Rights Movement was the
00:14:45
perfect thing to help him bring his
00:14:47
cause to life we followed not him not
00:14:50
for him but for ourselves and by the way
00:14:52
he gave the I Have a Dream speech not
00:14:54
the I have a plan
00:14:57
speech
