Simon Sinek: How to Build a Company That People Want to Work For | Inc. Magazine
Summary
TLDRIn this insightful startup boot camp live chat, Diana Ransom interviews Simon Sinek, an ethnographer and author, who emphasizes the significance of understanding 'why' organizations exist beyond their products or services. Sinek stresses that the most successful companies, like Apple and Virgin, are driven by a deep-seated purpose that resonates with their core beliefs and values. He distinguishes between leadership, a learned skill, and entrepreneurship, a mindset, suggesting that while leadership can be taught, entrepreneurship's inherent problem-solving nature may be innate. Sinek also discusses the importance of a company's origin story and how it fuels passion and longevity in business.
Takeaways
- 🧠 Every organization operates on three levels: what they do, how they do it, and why they do it. The 'why' is often overlooked but is crucial for long-term success.
- 💡 The 'why' of a company is its origin story, typically stemming from a personal struggle or a deep-seated need that the founder(s) experienced.
- 🔥 Companies with a strong 'why' that goes beyond profit tend to outlast and outperform their competitors because they inspire passion and loyalty.
- 🌱 The 'why' is not about the product or service but about the human values and beliefs that drive the company's existence.
- 🤔 Finding passion in business often comes from understanding who we are and what we believe in, rather than what we sell.
- 🌟 Successful leaders and organizations, like Apple and Martin Luther King Jr., have a clear and compelling 'why' that resonates with people on a deep level.
- 📈 The 'why' is essential for aligning a company's actions with its core beliefs, which in turn drives innovation and sustainable growth.
- 🛠 Leadership is a skill that involves a significant mindset shift from being responsible for tasks to being responsible for people and their outcomes.
- 🚀 Entrepreneurship is not just about owning a small business; it's about being a problem solver with a unique perspective on the world.
- 📚 While some aspects of entrepreneurship can be taught, the innate qualities that make a successful entrepreneur might be harder to instill.
Q & A
What is the significance of understanding 'why' an organization exists?
-Understanding 'why' an organization exists is crucial because it goes beyond the 'what' and 'how' of operations. It's about the purpose and reason for the company's existence, which can inspire employees and differentiate the company from competitors. Organizations that know their 'why' tend to last longer and outperform those that focus solely on making money.
How do organizations typically define their 'why'?
-The 'why' of an organization is often defined by its origin story, which is rooted in the founder's personal experiences or a problem they or someone close to them faced. This personal connection creates passion and gives the organization a unique reason for existence beyond just making money.
What is the role of passion in defining an organization's 'why'?
-Passion is derived from personal experiences and values, and it's essential for defining an organization's 'why'. It's the driving force that keeps the company motivated and aligned with its purpose, even as it grows and evolves.
How does Tony Hsieh's approach to business at Zappos reflect his 'why'?
-Tony Hsieh's 'why' at Zappos is not about selling shoes but about delivering happiness and providing excellent customer service. His passion for human connection and employee well-being is what drives the company's culture and success.
What is the difference between leadership and management as discussed in the script?
-Leadership is a mindset and practice skill that involves taking care of people who are responsible for results, whereas management often focuses on the results themselves. Leadership is about inspiring and guiding others, while management is about organizing and controlling.
Why is it challenging to learn entrepreneurship according to the speaker?
-The speaker suggests that entrepreneurship is not easily taught because it involves a unique way of seeing the world and solving problems. While skills for running a small business can be taught, the innate problem-solving mindset of an entrepreneur might be harder to instill.
What is the importance of a CEO's role in preaching the cause rather than just selling the product?
-A CEO's role in preaching the cause is to inspire and align employees with the company's mission and values. This creates a sense of purpose and belonging, which can lead to higher engagement and better performance.
How did Steve Jobs articulate Apple's 'why'?
-Steve Jobs articulated Apple's 'why' by focusing on empowering individuals through technology. He believed in democratizing access to personal computing to enable people to stand up to corporations, which was reflected in Apple's products and advertising.
What is the significance of an organization's origin story in determining its 'why'?
-An organization's origin story is significant because it provides the foundational narrative that shapes the company's purpose and values. It's often the source of passion and inspiration that drives the organization's actions and decisions.
How does the speaker relate the success of Martin Luther King Jr. to the concept of 'why'?
-The speaker relates Martin Luther King Jr.'s success to his ability to articulate the 'why' behind the Civil Rights Movement in a compelling way. King's speeches resonated with the core values of equality and justice, uniting people around a common cause.
What is the difference between a small business owner and an entrepreneur as per the speaker's perspective?
-According to the speaker, a small business owner is someone who owns a small business, while an entrepreneur is a problem solver with a unique perspective on the world. Not all small business owners are entrepreneurs, and entrepreneurs can own large businesses as well.
Outlines
🧠 The Power of 'Why' in Organizations
In this segment, Diana Ransom interviews Simon Sinek, discussing the significance of understanding 'why' an organization exists beyond its products or services. Sinek emphasizes that while many organizations know what they do and how they do it, few grasp their true purpose. He explains that the most enduring companies are those founded on a deep, personal 'why'—often stemming from the founder's own struggles or passions. These companies are not just in business to make money but to fulfill a higher purpose. Sinek also touches on how this understanding can be crucial for startups defining their mission and how the 'why' should be rooted in personal stories and human values rather than market opportunities.
🌟 Leadership and Entrepreneurship Insights
This paragraph delves into the concepts of leadership and entrepreneurship. Sinek argues that leadership is a skill that is often not taught effectively, even in MBA programs, which tend to focus more on management. He describes leadership as a mindset shift from being responsible for tasks to being responsible for people. Sinek also distinguishes between small business owners and entrepreneurs, suggesting that not all small business owners are entrepreneurs. Entrepreneurs, according to him, are problem solvers who see opportunities differently. He questions whether entrepreneurship can be taught, suggesting that while skills for running a business can be learned, the entrepreneurial mindset might be innate. The conversation also touches on the idea that the success of companies like Apple and leaders like Martin Luther King Jr. stems from their ability to articulate a compelling 'why' that resonates with people's values and beliefs.
Mindmap
Keywords
💡Why
💡Ethnographer
💡Origin Story
💡Passion
💡Leadership
💡Entrepreneurship
💡Empathy
💡Customer Service
💡Personal Suffering
💡Social Movement
💡Empowerment
Highlights
The importance of knowing why you do what you do, rather than just what you do.
Organizations function on three levels: what they do, how they do it, and why they do it.
Few organizations understand their 'why', which is distinct from making money.
Organizations with a clear 'why' tend to last longer and outperform their competition.
Defining 'why' involves an origin story, often stemming from personal suffering or a need.
Weak companies are built around perceived market opportunities without personal passion.
Passion in business comes from who we are, not necessarily what we sell.
Leadership is a skill and practice that is rarely taught effectively.
Leaders are responsible for preaching the cause, not just selling the product.
Apple's success is tied to its origin story and Steve Jobs' belief in empowering individuals.
Martin Luther King Jr.'s success in civil rights was due to his ability to articulate 'why'.
Entrepreneurship is about problem-solving and seeing the world differently.
The debate on whether entrepreneurship can be taught and the distinction from small business ownership.
Leaders Eat Last: the concept that leaders should prioritize the needs of their team.
The transformation from individual contributor to leader involves a significant mindset shift.
The role of personal experiences and upbringing in shaping our 'why' and passion.
The impact of a leader's beliefs and values on the culture and success of an organization.
Transcripts
[Music]
hi everyone I'm Diana Ransom features
editor here at Inc and I'm pleased to
welcome you all today to a startup boot
camp live chat with a good friend Simon
cnic how are you um I'm well thank you
he's an ethnographer by training he's an
adjunct at the Rand Corporation and he
also consults with organizations of all
sizes from startups to the military and
um to toop it off he's also delivered
the third most viewed TED Talk to date
since it makes sense to start with why
yeah uh your book let's go ahead and go
take it from there what is the uh
basically can you speak about the
importance of knowing why you do what
you do rather than what you do sure
every organization on the planet knows
what they do um some know how they do it
but very few understand why and at the
end of the day every single organization
even our own career always functions on
these same three levels it's a
biological constant it's just how our
brains take in information and we make
decisions and so you have to know all
three but the problem is most
organizations don't know why and what
I've learned um and spoken about and
written about is that uh those few
organizations those few CEOs who truly
understand why their company exists and
this has nothing to do with making money
that's a result um but literally why do
we need their company to exist because
you can buy whatever they sell somewhere
else usually um those are the companies
that tend to last long longer and
outperform their competition when an
organization or a company is just
starting what how do they Define why
they do what they do well why at its
core is a is an origin story the best
companies are ones where the the founder
or a small group of Founders personally
suffered or something someone close to
them suffered something they couldn't
get something or they had to overcome
something they couldn't find another
market and so they produced it
themselves the weakest companies are the
ones where somebody reads a magazine
sees a market opportunity and attempts
to you know build a business around it
and the reason is simple is because
there's no passion for something that we
perceive a market opportunity around but
when we personally suffer something or
somebody around us personally suffers
something or we can't get something this
is the source of of passion and so the
ability to put that story into words the
ability to truly understand why this has
to exist on a very human level that goes
Way Beyond the product or the service is
what keeps the inspiration alive as the
company continues to grow it's
interesting um Tony Shay is often sort
of been quoted as saying how he isn't
necessarily passionate about what he
does or what he sells what zapo sells
it's more or less he's passionate about
customer service so there are it strikes
me as there are different aspects of
business that people can be passionate
about um how do you suggest finding that
passion so our passion comes from who we
are not necessarily what we sell um it's
true Tony doesn't necessarily care about
shoes you know what he cares about is
human beings what he cares about is his
his employees and he cares that his
employees take care of his customers and
that's how it works he's really obsessed
with having having a good time
delivering happiness as he calls it um
and what he sells is incidental he could
have sold anything um and so our why
comes from like I said who we are how
we're raised um it's the sum total of of
of our experiences when we were kids and
our wies are fully formed by the time
we're 18 1920 and the rest of our
careers simply offer us opportunities to
bring our cause to life to bring that
purpose or cause to life and when we do
something that is consistent with what
we believe we feel passion um when we
have to work hard for something we don't
believe in it's called stress you work
just as hard if not harder when you're
passionate than you are when you're
stressed the difference is one of them
it feels good and the other one it
doesn't so if you look at Great
organizations whether it's apple or
virgin you know every company that
virgin's ever started is Richard Branson
his personality as a human being is the
personality of the companies his beliefs
his values are imbued into the
organization in other words they're the
same thing his companies are one of the
things that he's done in his life to
bring who he is to life um we know this
is the case in small companies but it
doesn't change when those companies get
big so you talked about Apple you also
mentioned Martin Luther King um often um
in your speeches and in your book um I
wonder if you can kind of talk about why
this organization apple and why you know
this person Martin Luther King was so
successful because it strikes me as
maybe it's just a matter of good
marketing remember civil rights problems
existed long before Martin Luther King M
long before Martin Luther King I mean
what happened to the whole beginning of
the 20th Century you know there there
was there were issues and there was
strife and there was Uprising but how
come there was no Civil Rights Movement
um and what it did is it took a person
to put the cause into words beyond what
they wanted Beyond how to do it into
words so compelling we understood why we
had to do it you know it was deeply
deeply human um it was about all men are
created equal goes back to the very
founding values of the United States and
and it resonated and it brought people
together because we can disagree on how
to do it um but we can't but what we
what we find alignment on is is why
we're doing it in the first place so
what can companies and entrepreneurs um
take away from that experience a CEO's
responsibility is to preach the cause
not just sell the product but so that
all of the people who work to the who
join the company understand that they're
they're joining somewhat of a social
movement um uh Steve Jobs was really
good at this I mean the people who
worked there really thought they were
going to change the world you know and
they still do they did and they and they
did and this that was a credit to jobs
preaching the cause and preaching the
cause and if you go back to the origin
story of Apple um here was this new
technology called the personal computer
and job um was a populist he believed in
power to the people um and he believed
that this technology could really
Empower a human being to stand up to a
corporation um but and that would never
happen unless they made it simple to use
so it wasn't just about Simplicity and
design it was about giving power to
people and if you've noticed since the
dawn of Apple to this current day they
only have individuals in in they
advertising one person rising up that
old 1984 commercial of one person
running into this orwellian scene it's
one person dancing with an iPod it's I'm
a Mac I'm a PC it's really about the
individual and about empowerment had
Apple started in in in the '90s it would
have been a doom it would have been an
online it just happened to be the
technology of the day it had nothing to
do with the technology it had to do with
his own personal beliefs and the
technology was simply a means to an ends
um and this is what gave them the power
to diversify their their portfolio as
well which is it was about the product
in the first place it was always about
the people so it sounds like it's it
would be rather hard um from the way you
kind of put it to learn entrepreneurship
or to learn how to be a leader
leadership is a skill leadership is a
practice skill um and it's rarely taught
unfortunately and when it is taught it's
not taught well most of the MBA programs
don't really teach leadership they call
it leadership but they teach management
um leadership is this really really um
sort of sophisticated change in mindset
um when we're very Junior the only thing
we have to do is be good at our jobs and
they teach us how to use the software or
use the technology so that we can get
good at our jobs they give us training
some people get Advanced degrees on how
to do the job accounting or whatever you
know and if you're really good at your
job they'll promote you and eventually
you'll get promoted to a position where
you're now responsible for people who do
the job you used to do but nobody
teaches us how to do that and this is
why we get managers is because the
people who are now put in charge of us
are actually better at the job than we
are that's what got them promoted they
can't help them themselves and so we
have to go this through this transition
um some people make it slowly some
people make it quickly and unfortunately
without training some people will never
make it we have to go this through this
transition where we are no longer
responsible for the results we now
become responsible for the people who
are responsible for the results we're no
longer responsible for taking care of
the customer we're now longer we're now
responsible for the people who are
taking care of the customer this is what
leadership is and it's a practice skill
and it's the same thing as becoming a
parent your lifestyle will will change
and now everything is centered around
taking care of another human being
that's what leadership is
entrepreneurship is different you know
I've had these discussions and debates
with people whether you can teach
entrepreneurship there's a huge
difference between being an entrepreneur
and being a small business owner um um
not all small business owners are
entrepreneurs and some entrepreneurs are
own huge businesses Richard Branson's an
entrepreneur he owns 300 companies worth
multiple billions of dollars he's an
entrepreneur so let us not confuse small
business owner and entrepreneur an a
small business owner owns a small
business an entrepreneur is a problem
solver it's the way they see the world
they see the world differently and I
would debate whether we can teach that I
think we can teach some of the the
skills of building a small business but
I I'm I'm the jury is still out for me
whether we can teach entrepreneurship uh
oh I'm sure all the MBA programs across
the country are going to love that one
okay so let's skip ahead to your your
next book um your latest book uh Leaders
Eat Last
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