Simon Sinek: How to Build a Company That People Want to Work For | Inc. Magazine

Summary

In 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.