• Business
    • Case Studies
    • Companies
    • Growth
    • Strategy
  • Functional
    • Finance
    • HR
    • Marketing
    • Science & Tech
  • Leadership
    • Be a Leader
    • Books
    • LDR Show
    • Leadership Nuggets
    • Movie Wisdom
    • Podcasts
    • Women & Leadership
  • Personal
    • Character
    • Values
    • Competence
  • Podcasts
  • Videos
  • E-Mag
  • Assessments
  • Subscribe
  • About Us
Leaderonomics.com
Leaderonomics.com
  • Business
    • Case Studies
      Crisis Communication: The Good, the Bad, and the Ugly

      Crisis Communication: The Good, the Bad, and the Ugly

      The 5 Step Plan to a Winning Social Media Presence

      The 5 Step Plan to a Winning Social Media Presence

      Embracing Digital To Power Growth

      Embracing Digital To Power Growth

      Malaysia: Celebrating A Nation's History

      Malaysia: Celebrating A Nation's History

    • Companies
      The Secret Sauce Behind the Success of a Co-Working Space

      The Secret Sauce Behind the Success of a Co-Working Space

      Women in Leadership: Opportunities, Balance, Challenges and Support

      Women in Leadership: Opportunities, Balance, Challenges and Support

      "As you keep developing your skills, you become like a fine wine", Says Nithin Kamath

      "As you keep developing your skills, you become like a fine wine", Says Nithin Kamath

      Why Connection is the Key to Organisational Performance

      Why Connection is the Key to Organisational Performance

    • Growth
      Don’t Underestimate the Impact of Disengaged Employees

      Don’t Underestimate the Impact of Disengaged Employees

      The Importance of Legacy in Leadership

      The Importance of Legacy in Leadership

      The Secret Sauce Behind the Success of a Co-Working Space

      The Secret Sauce Behind the Success of a Co-Working Space

      Women in Leadership: Opportunities, Balance, Challenges and Support

      Women in Leadership: Opportunities, Balance, Challenges and Support

    • Strategy
      Don’t Underestimate the Impact of Disengaged Employees

      Don’t Underestimate the Impact of Disengaged Employees

      Pssst! Are You Overworked?

      Pssst! Are You Overworked?

      "As you keep developing your skills, you become like a fine wine", Says Nithin Kamath

      "As you keep developing your skills, you become like a fine wine", Says Nithin Kamath

      What If You Ran Your Business Like an Over-Achieving Spanish Soccer Club?

      What If You Ran Your Business Like an Over-Achieving Spanish Soccer Club?

  • Functional
    • Finance
      How Your Personality with Money Can Influence Your Financial Decisions

      How Your Personality with Money Can Influence Your Financial Decisions

      Making It in Corporate Finance

      Making It in Corporate Finance

      The Disruption in Accounting and Finance

      The Disruption in Accounting and Finance

      An Income for Everyone

      An Income for Everyone

    • HR
      The Six Pillars of Vibrant Workplace Culture

      The Six Pillars of Vibrant Workplace Culture

      A Lesson in Leadership from the HR Perspective

      A Lesson in Leadership from the HR Perspective

      Understanding Performance Management Today

      Understanding Performance Management Today

      Change and Disruption: Fight It or Embrace It?

      Change and Disruption: Fight It or Embrace It?

    • Marketing
    • Science & Tech
      May the 4th Industrial Revolution Be with You: Part 1

      May the 4th Industrial Revolution Be with You: Part 1

      6 Key Digital Trends to Look Out for in 2020 and Beyond

      6 Key Digital Trends to Look Out for in 2020 and Beyond

      How Embodying Trust Builds Big Picture Leadership Capability

      How Embodying Trust Builds Big Picture Leadership Capability

      The Future of the Wood Manufacturing Industry in Malaysia

      The Future of the Wood Manufacturing Industry in Malaysia

  • Leadership
    • Be a Leader
      Caring in Leadership Isn't a Luxury - It Lies at the Heart of a Team's Success

      Caring in Leadership Isn't a Luxury - It Lies at the Heart of a Team's Success

      A Lesson in Leadership from the HR Perspective

      A Lesson in Leadership from the HR Perspective

      Fastest Woman on Earth Leaves Competition in the Dust

      Fastest Woman on Earth Leaves Competition in the Dust

      Should a 4-Day Workweek Be the New Norm?

      Should a 4-Day Workweek Be the New Norm?

    • Books
      Lessons from Tara Westover's Memoir, 'Educated'

      Lessons from Tara Westover's Memoir, 'Educated'

      Michelle Obama Says One Decision Separates People Who Achieve Success from The Rest

      Michelle Obama Says One Decision Separates People Who Achieve Success from The Rest

      Why You Should Assess A Leader’s Capacity For Critical Thinking And Judgment

      Why You Should Assess A Leader’s Capacity For Critical Thinking And Judgment

      5 Skills You Need To Be A Great CEO

      5 Skills You Need To Be A Great CEO

    • LDR Show
      It Started as a Fluke: Making It in the Hotel Business

      It Started as a Fluke: Making It in the Hotel Business

      Leaving a Mark That Goes Beyond Business

      Leaving a Mark That Goes Beyond Business

      Through the Ups and Downs of Business

      Through the Ups and Downs of Business

      Coding Made Easy with Low Code

      Coding Made Easy with Low Code

    • Leadership Nuggets
      Leadership in Four Dimensions: Jonas Prising on Human Resources, Malaysia and Leadership

      Leadership in Four Dimensions: Jonas Prising on Human Resources, Malaysia and Leadership

      "Have Intentionality In Your Daily Life", says Kim Underhill

      "Have Intentionality In Your Daily Life", says Kim Underhill

      "Explorers Are Map Makers", Says Jana Stanfield

      "Explorers Are Map Makers", Says Jana Stanfield

      Leadership Nuggets: Worry Not When We Fail

      Leadership Nuggets: Worry Not When We Fail

    • Movie Wisdom
      What I Learnt About Leadership from the Game of Thrones

      What I Learnt About Leadership from the Game of Thrones

      Lessons From Dwayne ‘The Rock’ Johnson

      Lessons From Dwayne ‘The Rock’ Johnson

      Leadership Lessons From Madam Secretary

      Leadership Lessons From Madam Secretary

      Lessons From A 68-Year-Old Classic That Changed The Face Of Visual Storytelling

      Lessons From A 68-Year-Old Classic That Changed The Face Of Visual Storytelling

    • Podcasts
      The Importance of Legacy in Leadership

      The Importance of Legacy in Leadership

      The Secret Sauce Behind the Success of a Co-Working Space

      The Secret Sauce Behind the Success of a Co-Working Space

      Understanding Performance Management Today

      Understanding Performance Management Today

      Personal Change Affecting  Your Career

      Personal Change Affecting Your Career

    • Women & Leadership
      Women in Leadership: Opportunities, Balance, Challenges and Support

      Women in Leadership: Opportunities, Balance, Challenges and Support

      3 Easy Ways Women Can Demonstrate Their Authority at Work

      3 Easy Ways Women Can Demonstrate Their Authority at Work

      Be A Leader With Queen Oprah

      Be A Leader With Queen Oprah

      5 Lessons from the Life of Chetna Sinha

      5 Lessons from the Life of Chetna Sinha

  • Personal
    • Character
      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      How to Overcome Overthinking and Get More Done

      How to Overcome Overthinking and Get More Done

      11 Things Organised and Productive People Do Every Day

      11 Things Organised and Productive People Do Every Day

      Hiking – Reflections That Will Take You to Greater Heights

      Hiking – Reflections That Will Take You to Greater Heights

    • Values
      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      Hiking – Reflections That Will Take You to Greater Heights

      Hiking – Reflections That Will Take You to Greater Heights

      The Power of Compassion in Leadership

      The Power of Compassion in Leadership

      Raise Your Game: Forming Your Identity

      Raise Your Game: Forming Your Identity

    • Competence
      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      J.K. Rowling Says Success Has Nothing to Do With 'Destiny'

      How to Overcome Overthinking and Get More Done

      How to Overcome Overthinking and Get More Done

      11 Things Organised and Productive People Do Every Day

      11 Things Organised and Productive People Do Every Day

      Infographic: How Good Are Your Problem Solving Skills?

      Infographic: How Good Are Your Problem Solving Skills?

  • Podcasts
  • Videos
  • E-Mag
  • Assessments
  • Subscribe
  • About Us
  • Follow
    • Facebook
    • Twitter
    • Linkedin
    • Youtube
    • Instagram
Home
Leadership
Be a Leader

“Why How What” Inside-Out Leadership: The Difference Between Winners And Losers

April 29th, 2013 Be a Leader, Leadership

Share this article

Facebook Twitter Google+ LinkedIn Pinterest
“Why How What” Inside-Out Leadership: The Difference Between Winners And LosersBe a Leader

Photo Source: Casey

By ROSHAN THIRAN

roshan.thiran@leaderonomics.com

A couple of years ago, I was perplexed by an issue. Why are some people and organisations more innovative, more influential, and more profitable than others, even though they may be less funded, less equipped, and possibly far inferior? Why do some command greater loyalty from customers and employees alike?

Everywhere, small start-ups were outwitting big giants, and “little” people like Nelson Mandela, Gandhi and Sam Walton were out-muscling far more advanced and illustrious opponents. Why is Apple considered more innovative than Samsung, even though Samsung wins more innovation awards?

Mozilla is a small foundation with less than 60 employees but their Firefox product is far superior to mighty Microsoft’s IE, which has more resources, talent and funding. A couple of years ago, I interviewed Wikipedia founder Jimmy Wales on The Leaderonomics Show. Wikipedia had one employee yet eliminated heavy-weights Encyclopaedia Britannia and Microsoft’s Encarta to become the world’s largest encyclopaedia.

This question kept bugging me until I met Simon Sinek via a TED Talk, who similarly grappled with this issue. He studied the lives of Martin Luther King, and the Wright brothers, who did not have as much funding or expertise as Samuel Langley in the aviation wars, yet won against the odds. Sinek found that successful people think and act completely opposite from the others who end up “losing”.

He used three words – WHY, HOW and WHAT in a concept he named “the golden circle”. The outermost circle, labelled “What” represents, for example, a company’s product. The next circle, “How” would be the technology behind this product, and the innermost circle represents “Why” the company makes the product.

With successful individuals, everything started with “Why” followed by “How” and finally “What”. Sinek discovered that the “losers” communicate in the exact opposite manner. He adds, “any organisation can explain what it does; some can explain how they do it; but very few can clearly articulate why”. Success can easily be replicated if we all start practising “inside-out” instead of “outside-in” leadership.

The Why-How-What model is actually grounded in biology. Our brain is split into the neo-cortex and the limbic brain. The neo-cortex (how and what) is responsible for all our rational, analytical thought and language. Our limbic brain (why) is responsible for feelings, trust and all human behaviour and decision making with no capacity for language.

When we communicate from the inside-out, we are speaking directly to the parts of the human brain that control behaviour. The neo-cortex will then follow, rationalising that behaviour. When we communicate from the outside-in, people may understand vast amounts of complicated information, but may not trigger behaviour. This is why you can give someone all the benefits of your product but they still don’t buy your products while in some cases (as with Apple iPhone 4 with receptor problems), people would still flock to the product.

“People don’t buy what you do, they buy why you do it. And what you do serves as the proof of what you believe” ~ Simon Sinek

WHY

Steve Jobs once said, “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about how you’re led.” Jobs understood clearly how to lead and it meant starting with the “why”.

The crux of Sinek’s idea lie within this centre “why” circle. The “why” represents an entrepreneur’s beliefs and passion. Why does your organisation exist? This is probably the most important strategic question your business needs to answer yet most people answer this question with “making money”.

Making money is necessary for survival but cannot be your sole purpose. After all, we all need good health to live but that doesn’t make good health the purpose of living. Your “why” should be enduring and involve a social contribution and be worthy – bringing a sense of purpose.

Here are some examples – Google (let’s organise the world’s information), Mozilla (let’s kill Microsoft), Apple (let’s reinvent the status quo), Wikipedia (let’s all contribute knowledge and create a true depository of global information), AirAsia (enabling everyone to fly) and Leaderonomics (let’s transform the nation).

Neurologist Aron Buchman claims people who understand their “why” in life, actually live longer and have lower risk of suffering from Alzheimer’s. He adds, “People with high purpose in life have a lower risk of dying and developing disability. We found that people with high purpose in life at the beginning of the study had a two-and-a-half times lower risk of developing dementia.”

Knowing your “why” gives you direction. You tend to have more opportunities than you could possibly pursue. Knowing why you exist helps you decide what you will do and what you will intentionally choose not to do.

HOW

After your “why” is formulated, you can then figure out “how” you are going to accomplish the “why”. Take Walmart, the world’s largest retailer. It started with a simple “why” – Everyday Low Prices. Sam Walton wanted to create a store where customers didn’t need to cut coupons, compare prices or engage in non-value added activities to obtain the lowest price. Then, he went about the “how.”

He built an entire infrastructure to support his “why” including the world’s best supply chain, an EDI system that ensured cost efficiency, hiring of “lower cost” retired folks, establishing stores in remote locations where rental was lower, completely cutting out advertising and keeping his corporate team as lean as possible.

Most organisations benchmark Walmart and try to copy its “how”. However, the “how” at Walmart has its foundation on its “why”, thus making copying immaterial.

AirAsia’s “why” was to ensure “everybody can fly”. Their “how” was to build an entire infrastructure to support this “why”. To enable everyone to fly, they needed to manage costs and price tickets from zero (for those with no money) to full price (for those who can afford to pay). If their “why” was to be the “best low-cost airline”, all their tickets would be priced low.

Essentially, the “how” are ways the “why” gets accomplished – your value system, your processes and structures, your infrastructure, the talent in your organisation and the eco-system you create to support your “why”. Wikipedia’s “why” enabled them to build an entire web eco-system (how) with a global volunteer and policing organisation.

Martin Luther King most famous speech was “I have a dream” not “I have a plan”. We all fall victim to needing to have plans but we should learn from history and always start with the dream. Learn to start with purpose, not product.

WHAT

Amazon.com is a business that defies logic – an online retailer that has become the biggest bookstore in the world. Jeff Bezos, its CEO and founder, knew his “what” – to open an online book store. But unlike others, he didn’t start with “what”. He spent countless hours in traditional brick-and-mortar bookstores trying to figure out “why”. As Bezos visited bookstores, he realised there was an “experience” people went through buying books.

People read parts of the books, compared books, browsed the best-seller lists and got frustrated when a book they wanted was out of stock. Bezos quickly understood his “why” – to become “earth’s biggest bookstore”. He later refined his “why” to “We seek to offer Earth’s Biggest Selection and to be Earth’s Most Customer-Centric company.”

His “how” was to ensure the “experience” in a traditional bookstore was replicated whilst the frustrations (ie. lack of book titles) was addressed. This infrastructure that he built cost millions but guaranteed Amazon provided a truly unique customer experience – his “why”. Finally, after this entire infrastructure was built, he focused on the “what” – the actual products and services that Amazon offered – books, music and videos. The “what” may have started out as a bookstore, but once he understood his “why”, it progressed into much more.

Likewise, Apple started out as a computer company, but its “why” was to make a dent in the universe. Apple believed that “everything we do, we do differently”. It believed in challenging the status quo. That was its “why”. And “how” it challenged the status quo was by hiring talented people and making beautiful products with great designs. And finally, “what” Apple does is make computers, MP3 players, phones or anything that supports their “why”. We often communicate starting from the “what”. Companies communicate “what” they’re selling. But the truth is, people don’t buy what you do. They buy why you do it.

FINAL THOUGHTS

There is a difference between giving direction and giving directions. Direction is the end destination (your “why”) to which you are headed whilst directions (your “how” and “what”) is the plan to get you there. Leaders often give directions when they should be setting direction. Martin Luther King inspired many to make a difference on racism. Interestingly, his speech began with “I have a dream” and not “I have a plan.” We think a great business begins with a solid business plan. But numerous businesses built on solid business plans don’t last either. Instead, start with “why” and you may just end up inspiring millions.

Roshan Thiran loves to ask “why”.  In fact, he just loves to ask questions in general. His big motto in life is that ‘questions change the world, not answers.’ To reach Roshan or to email him, send an email to: roshan.thiran@leaderonomics.com

To watch a great video from the “Be a Leader” series on “Why, How & What”, click below:

 

 

Roshan Thiran

Roshan is the founder and CEO of the Leaderonomics Group. He believes that everyone can be a leader and make a dent in the universe, in their own special ways. Connect with Roshan on Facebook, LinkedIn or Twitter for more insights into business, personal development and leadership. You can also email him at roshan.thiran@leaderonomics.com.

http://www.leaderonomics.org

Share this :

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Tags
  • AirAsia
  • Difference
  • Experience
  • How
  • Leadership
  • Losers
  • Questions
  • Walmart
  • What
  • Why
  • Winners
Next article Caring -A Critical Element To Leadership Success
Previous article Why Workplace Diversity Is Important For Every Organisation

Related Posts

Are You A Giver Or Receiver? Be a Leader

Are You A Giver Or Receiver?

The Challenges Of Modern Day Leadership Leadership

The Challenges Of Modern Day Leadership

Malaysia’s Historical Significance Be a Leader

Malaysia’s Historical Significance

Committing To A Cause: Leadership Makes The World Go Round Career

Committing To A Cause: Leadership Makes The World Go Round

Caring in Leadership Isn't a Luxury - It Lies at the Heart of a Team's Success Be a Leader

Caring in Leadership Isn't a Luxury - It Lies at the Heart of a Team's Success

Life After SPM: Your Search For Your Passion Personal

Life After SPM: Your Search For Your Passion

1 Comment

  1. Priyanka
    February 22, 2019 at 3:57 pm Reply ↓

    This is an important article that all leaders in India need to read. Than you for sharing

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Bahasa Malaysia | English

Pick of The Week

Dec 7th 6:47 AM
Functional

The Six Pillars of Vibrant Workplace Culture

Dec 6th 9:08 AM
Leadership

A Lesson in Leadership from the HR Perspective

Dec 5th 9:00 AM
Business

Don’t Underestimate the Impact of Disengaged Employees

NEW – The Leaderonomics Show

https://www.youtube.com/watch?v=Ft7JHfu_PL4

Leaderonomics FM – Now on Spotify/iTunes!

https://leaderonomics.com/wp-content/uploads/2019/07/Leaderonomics-FM.wav
  • Business
  • Functional
  • Leadership
  • Personal
  • Podcasts
  • Videos
  • E-Mag
  • Assessments
  • Subscribe
  • About Us
  • Back to top

About Leaderonomics.com

Leaderonomics.com is a leadership portal owned by Leaderonomics, a social enterprise passionate about transforming nations through leadership development. Leaderonomics.com features leadership insights, trends, CEOs, thought leaders, HR leaders and inspiring real-life stories for your personal and professional development.

Contact Us | Terms of Use | Privacy Policy      
Disclaimer: The opinions expressed on this website are those of the writers or the people they quoted and not necessarily those of Leaderonomics.
[Sitemap | RSS]
Copyright © 2010-2019 Leaderonomics Media Sdn Bhd. All rights reserved