The Importance of WHY

The Golden Circle

Every organization needs to define its fundamental purpose, philosophy, and values. The mission statement clarifies the essence of organizational existence. It describes the needs the organization was created to fill and answers the basic question of WHY the organization exists.  A mission statement provides the basis for judging the success of the organization and its programs. It helps to verify if the organization is on the right track and making the right decisions. It provides direction when the organization needs to adapt to new demands. A powerful mission statement attracts donors, volunteers, and community involvement.

Effective leadership requires two things:  a vision of the world that does not yet exist and the ability to communicate this vision. Where does this vision come from? This is the power of WHY. Great leaders do not start with what needs to be done. Leaders start with WHY we need to do things. Leaders inspire action. Leaders who inspire rather than manipulate can clearly articulate WHY they do WHAT they do. What is your purpose or cause? WHY does your company exist?

People do not buy WHAT you do, they buy WHY you do it.

When a product becomes a WHAT it becomes a commodity. Commodity markets are a rush to the bottom: brands are perceived as interchangeable by consumers. Market share depends on being cheaper, flashier or easier, not better. The example given is toothpaste. Is there any meaningful difference between brands?

Apple is an example. Apple’s WHY is to challenge the status quo - to empower the individual user. They set out to be different from the competition, not just better.

Portable digital music totally upended the music industry. The first mp3 player was developed by Creative Technology Ltd. which advertised the WHAT of their Zen - “a 5GB mp3 player”. Apple did not introduce the iPod until almost two years later. Apple advertised their WHY - “1000 songs in your pocket”. iPod sales crushed those of the innovator, Creative Technology.

Leaders need Followers. Followers need WHY.

Do you know the story of the Endurance’s ill-fated expedition to Antarctica? The ship was trapped in ice and the crew suffered many months of deprivation, but there was no mutiny, and no one died. It appears that Sir Ernest Shakleton, leader of the expedition, hired men who believed in his WHY. They remained committed to the mission in spite of the poor circumstances.

Southwest Airlines has a WHY of being the champion of the common man. In the 1970s they hired flight attendants who where cheerleaders and majorettes who came to the role with an attitude of spreading optimism.

My favorite example is the medieval stonemasons building cathedrals. The work was difficult and repetitive, and the stonemasons did not live long enough to see the final result, but they remained motivated by a higher calling - the WHY. These stonemasons  knew they were building a cathedral to the glory of God. This was enough to inspire many years of hard work.

The role of a leader is not to come up with all the great ideas. The role of a leader is to create an environment in which great ideas can happen. It is the people on the front lines who are best qualified to find new ways to do things.

Founders need Successors. Successors need WHY.

All founders eventually leave or die. For an organization to continue to inspire after the departure of the founder, the founders WHY must be extracted and integrated into the culture of the organization. A strong succession plan will find a leader who is inspired by the founder’s cause and be prepared to lead it into the next generation.

Is it time for action?

Has your organization’s WHY become fuzzy? Can front line staff articulate your corporate purpose? Are they encouraged to contribute to organizational innovation? Do you have a strong succession plan?

Please contact SWB Consulting Services for assistance with these challenges.