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William C. ByhamLeadership Consultant

ExcellenceL E A D E R S H I P

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATION

NOVEMBER 2009

“ Leadership Excellence is an exceptionalway to learn and then apply the best andlatest ideas in the field of leadership.”

—WARREN BENNIS , AUTHOR AND

USC PROFESSOR OF MANAGEMENT

Management 2.0Management 2.0Frozen CareerPipelinesFrozen CareerPipelines

LeadingChangeLeadingChange

UrgentEnterprise

UrgentEnterprise

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ExcellenceL E A D E R S H I P

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATIONAL PRODUCTIVITY

V O L . 2 6 N O . 1 1 N O V E M B E R 2 0 0 9

S IMON S INEK

Inspire PeopleInspiration always beatsmanipulation. . . . . . . . . .13

S TEVE BALLMER

Thriving TodayI’m enthusiasticabout the future . . . . . . .14

C HIP R. B ELL AND

JOHN R. P ATTERSON

Growing ChampionsDo four thingsconsistently . . . . . . . . . . .15

LOUIS C ARTER AND

PATRICK C ARMICHAEL

Best PracticesGo beyond

benchmarking. . . . . . . . .16

W ILLIAM A DAMSAND C YNTHIA A DAMS

Transform or Reform?We need many moretransformational leaders. .17

T ERRY R. B ACON

Character PowerBuild trust andsustainability. . . . . . . . . .18

N ORM S MALLWOODAND JON YOUNGER

Decoding LeadershipAccelerate the develop-ment of future leaders . .19

JEFFREY A. K RAMES

Costly MistakesAvoid seven commonleadership snafus . . . . . .20

LINDA A CKERMANA NDERSON ANDD EAN A NDERSON

Leading ChangeAvoid 10 mistakes. . . . . . 3

JIM K OUZES

Urgent EnterpriseInstill a sense of urgency. . .4

G ARY H AMEL

Management 2.0Reinvent your systems. . . 5

K EVIN C ASHMAN

720-Degree DevelopmentDevelop the whole person.6

BILL G EORGE

Defining MomentLead in a crisis . . . . . . . . .6

JIM M CN ERNEY

Leading in a DownturnStart flying high again. . .7

JEFF IMMELT

An American RenewalIt starts with quality. . . . .8

W ILLIAM C. B YHAM

Frozen Career PipelinesKeep hi-pos moving. . . . 10

WARREN BENNIS

What Matters MostCultivate adaptive capacity.11

G IFFORD ANDELIZABETH P INCHOT

Free IntrapriseCreate systems basedon free choices . . . . . . . .12

High HopesEndangered Rothschild giraffe maketheir way across Africa’s Great Rift

Valley as pelicans pass overhead. Only about 500of these giraffe exist, their habitat severe-ly depleted. But about 60 are breeding atthe Soysambu Conservancy, a non-profitwhose goal is to preserve the ecosystem

to benefit future generations.

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what they do. This has nothing to dowith money or profit—those are results.By Why , I mean what’s your purpose,cause or belief ? Why does your compa-ny exist? Why did you get out of bedtoday? And why should anyone care?

As a result, we think, act, and com-municate from the outside-in of theGolden Circle: We tell people What wedo, How we think we’re different or better, and then we expect a behav-ior—a purchase. But all the great lead-ers think, act, and communicate fromthe inside-out—they all start with Why.

Apple , for example, follows the prin-ciples of the Golden Circle , and thatearns them the ability to inspire inno-vation and loyalty. If Apple were likeeveryone else, a marketing messagefrom them would start with What , thentry to differentiate with How. But here’show Apple actually communicates: “Inall we do, we believe in thinking differ-ently—we challenge the status quo bymaking our products beautifullydesigned and simple to use. We justhappen to make great computers.”

It’s a very different feel-ing—no manipulations—bystarting with Why. Peopledon’t buy What you do, they buy Why you do it. What youdo—your products and ser-vices—and how you commu-nicate serve as the proof of what you believe.

When you communicatefrom the outside-in, starting

with What , people can understand thefacts, figures, features, and benefits— but it doesn’t drive their behavior.When you communicate from theinside-out, starting with Why , youinfluence behavior, and the tangiblethings you say and do enable people torationalize their decisions.

Great leaders never try to rationalizewhy you should or shouldn’t do some-thing. They don’t start by telling youWhat to do. Great leaders all start withWhy. They tell you what they believe,their purpose or their cause and thenask you to join their cause.

We follow leaders and buy fromcompanies that inspire us , not becausewe have to or because we are manipu-lated to do so, but because we chooseto. We follow those who inspire us—not for them, but for ourselves. Andwhat the great leaders do to inspire usis tell us why they do what they do—they always start with Why. LE

Simon Sinek is the author of Start With Why (Penguin). Call212-995-9199 or email info@startwithwhy.com.

ACTION: Start with why.

THERE ARE TWO WAYS

to influence behav-ior: you can manipulate

it, or inspire it. Manipulations are sim-ple and effective short term, but theyare expensive to maintain and unsta- ble long-term. Inspiration takes morediscipline, but the long-term impact isastounding. The ability to inspire dis-tinguishes good leaders from great ones.

Examples of manipulations includedropping your price or having a pro-motion to overcome perceived risk orobjections to close the sale. In market-ing, fear is a wonderful manipulator,as is peer pressure. When a companytells us that they serve 70 percent of themarket as a reason to do busi-ness, they are using peerpressure to close the deal.

Aspirational messages,though positive, are also man-ipulations. You can convincesomeone to go once to thegym with an aspirationalmessage, for example, but toget them to go three days aweek requires inspiration.

Manipulations work—that is whythey’re so pervasive. But they’re costlyto maintain, their gains are short-term,and they don’t breed loyalty. Wheremanipulations work by offering exter-nal motivation, real loyalty comes frominspiration—an internal motivation born out of values and beliefs. Loyalcustomers, and employees, are morevaluable because they not only buyover and over, but they’ll turn down a better product and a better price tokeep doing business with you. Theonly way to build loyalty is to inspire it.

So, how do you inspire loyalty? Great and inspiring leaders think, actand communicate the same way—andtheir simple pattern of behavior, theGolden Circle , that explains why someleaders are so good at inspiring action.

Every person and organizationknows What they do—they knowwhat products or services they sell.Some know How they do it, whetheryou call it your differentiating value

proposition or your proprietary processor USP . But few leaders or organiza-tions can clearly state Why they do

Inspire PeopleS i m p l y s t a r t w i t h w h y.

by Simon Sinek

PEOPLE INSPIRATION

L e a d e r s h i p E x c e l l e n c e

Reprinted with permission of Leadership Excellence: 1-877-250-1983