I joke about it but these the symbols
and the things that we use and the
things that we say to communicate about
ourselves matter and the matter are not
just for fun for decorating offices but
there’s a social component all of this
thing that’s a big deal and the reason
it’s a big deal is you know because
we’re social animals these are the
question is you know why should we hang
out with each other why should we trust
each other and and my interest is you
know I’m interested in things like how
do you change your world and to change
the world you need lots and lots and
lots and lots of people and it’s not
technology and it’s not these things
that’s always people you know Twitter
and Facebook didn’t create revolutions
in the Middle East it was people showed
up in a square to be a part of something
that’s bigger than themselves that
changed those regimes and continued to
try to change those regimes and though
the technology is an enabler though
technology helps spread the word about
where people should go fundamentally it
was the people who showed up that made
the difference and so when we talk about
leadership I think it’s necessary that
we define what a leader is leadership
has nothing to do with rank or authority
all that is is rent authority all
leaders you know I read the same books
as everybody else and you know we’ve all
met the books about you know know your
style of leadership and how do you
adjust your style of leadership to fit
the situation and path so that’s not
leadership that’s management leaders
only have one thing and you only need
one thing to be a leader followers
that’s it that’s all you need and it has
nothing to do with your rank or your
position in society or in an
organization if people will follow you
if they volunteer because a follower is
somebody volunteers to go where you’re
going right you can use authority to get
people to go where you’re going if you
want
but why should they choose a volunteer
something raises their hands as I choose
to go where you’re going that’s a
following the question is why should
anyone follow you as an organization or
as an individual the question is why
should anyone follow you so there’s only
two ways to influence your behavior you
can manipulate it or you can inspire
those are your options
examples of manipulation in the business
world were all very familiar with
dropping your price for example if you
drop your price low enough people who’ll
do business with you this is the concept
of – sale promotions – for one free toy
inside or in the b2b space we call it
value-added concept is the same it’s
giving stuff away free to reduce
someone’s risk so they’ll choose you
over the competition right it’s
manipulative in nature you see this a
lot in technology what companies like to
call innovation as really selfie the
1970s there are two choices of Colgate
toothpaste and now you know how many
there are 37 37 right but this things
are fine things were good and then
competition increased globalization the
other world is flat competition crease
and the metric went down whether its
profitability or revenue or market share
does matter
the metric went down so what do they do
they added a new product this one has
fluoride and people went through shiny
they tried something new right and then
everybody else copy because as we all
know there’s not a single product or
service available in the market today
that people can’t buy from somebody else
for about the same price about the same
quality about the same service about the
same feature train and if you have
something truly innovative somebody will
try and copy them and whether they’re
truly better or not is irrelevant
because you know the fact of the matter
is they’ll give you a run for your money
so this idea of novelty which companies
mistakenly called innovation real
innovation changes the course of
industries of not society iTunes fact
machine like oh that’s real innovation
adding a camera to your cell phone is a
wonderful feature but it’s not
innovation and this is what happened and
what happens with so many organizations
though so here we go Colgate back in the
1970s they add a new line extension and
people are attracted to the latest shiny
thing the competition copies and now
everybody has the same thing so it
worked the first time we’ll do it again
they added another line extension and
then another one and another one and
another one and before you know it
they’ve got 37 different line extensions
and what’s their big challenge what to
put them both most companies complain
about these things how do we
differentiate this is funny how do we
get out of a problem that we created for
ourself
this is funny but this idea of novelty
just you know sort of latish anything is
is really the manipulate apartment now I
can’t dispute that these and many many
other manipulations work they absolutely
do that’s why organizations use them the
problem is not a single one of them
breeds loyalty
the problem is over the course of time
that costs more money somebody has to
pay and over the course of time to
increase stress both for the buyer and
the seller it is stressful to be a
decision-maker bombarded by manipulation
of huh manipulation how do I choose
what’s right for me how do I choose the
solution the system of flat-screen TV
preferences that’s right for me it’s
hard to make decisions it’s called
stress but it’s also stressful to be the
seller when the marketplace is one in
which it’s all manipulative bombardment
of these messages
the question is how do I stand out how
do I get my message through how do I get
people to hear me and listen to me and
then ultimately kind of get people to go
where I’m going this is largely the
world we live in today this is good more
here’s an alternative they will turn it
in is called expiration and there are a
few leaders a few organizations that
rely vastly more an inspiration than
manipulation and I’ll talk about and
that’s the ones that we’re all familiar
with it to the apples of the world of
Harley Davidson Southwest Airlines but
you see this capacity to inspire amongst
great leaders as well Nelson Mandela
Martin Luther King you know JFK and what
we know about all those meters with the
capacity to inspire is that regardless
of their size regardless of their
industry they command greater loyalty
from both employees and Riddle oil tea
from customers they can charge a premium
if they want to they are more innovative
my definition of innovation they have an
unbalanced about a success and a
balanced amount of influence in their
industries and most importantly they can
sustain all of these things for the long
term in other words what they’ve done is
they’ve inspired people to choose to
follow them
what I learned was that regardless of
their size regardless of their industry
every single one of these leaders
organizations with the capacity to
inspire thinks act and communicates the
exact same way
and it’s the complete opposite to
everyone else all I did was write it
down and it’s probably the world’s
simplest idea I call it the golden
circle basically three concentric
circles pulls on why how what this
little idea that distinguishes those
with the capacity to inspire versus
everyone else that’s defined the terms
of you quickly every organization on the
planet knows what they do is the things
we sell the products we sell the
services we offer the jobs we do some
know how they do it would you call it
your differentiating value proposition
or your proprietary process or your USP
it’s the things that you think make you
different from special or stand out in
the crowd but very very few people and
very very few organizations can clearly
articulate why they do what they do and
by why I don’t mean to make money don’t
mean to achieve the mission those are
results by why I mean what’s your
purpose what’s your cause what’s your
belief why does your organization exist
why did you get out of bed this morning
and why should anyone care as a result
the way we think the way we act the way
we communicate is from the outside in we
tell people what we do we tell them
how we how we’re different on how we’re
better and we expect some sort of
behavior or purchase a vote support
whatever but not those leaders
organizations with the capacity to
inspire every single one of them
regardless of their signs regardless of
their industry thinks act and
communicates
from the inside out let me give you an
example I use Apple a lot just because
they’re easy to get we all understand it
if Apple was like everyone else a piece
of communication would sound like this
we make great computers they’re
beautifully designed simple to use and
user friendly what a buy one that’s
normal we tell people what we do we tell
them how we’re different on how we’re
better and then we expect some sort of
behavior right here’s our new car it’s
got tinted windows leather seats great
gas mileage to choose it here is our law
firm we’ve got all the best lawyers we
went to all the best schools we would
all of our cases reportable the biggest
firms you know choosing but here’s how
Apple actually they start with watching
everything we do they say we believe in
challenging the status quo we believe in
thinking differently the way we
challenge the status quo is by making
our products beautifully designed simple
to use and user friendly is happened to
make great computers one of my one
it’s totally different trickery no
manipulation no celebrity endorsements
or all I did was reverse the order of
the information when it starts to show
us that it’s not what you do that
matters that’s why you do it and people
don’t buy what you do they buy why you
do it that’s why every single person in
this group is perfectly comfortable with
the idea that Apple sells computers
we’re also perfectly comfortable with
the idea that Apple sells phones and mp3
players and DVRs Apple is just a company
that’s all they are it’s a corporate
structure every single one of their
competitors has equal an open access to
the same resources the same agencies the
same talent the same consultants the
same media it is a zero-sum game every
single one of their competitors is
equally qualified to make every product
that Apple makes the difference is those
organizations have defined themselves by
what they do we make computers where
Apple has defined themselves by why they
exist and what they do simply serves as
the tangible proof of what they believe
Dell the company perfectly qualified to
make every product that Apple makes a
few years ago came out with PDAs and mp3
players and nobody bought one why would
we buy an mp3 player from a computer
company it doesn’t make sense but we do
it every day because it’s not what you
do that matters it’s why you do it and
what you do serves as the tangible proof
of what you believe now the importance
of these tangible proofs is they become
the symbols they tell us something about
the you are and what you stand for
like those posters in the hallway get to
know a little bit about somebody or
someone based on the things they say the
things they do every single decision we
make in our lives is a piece of
communication it’s our way of saying
something to the outside world why
simply because we need to attract the
people who believe what we believe
you see when you’re surrounded by people
who believe what you believe something
remarkable happens trust emergence and
make no mistake of it trust as a feeling
a distinctly human experience when we
are surrounded by people who believe
what we believe when we trust others and
others are willing to trust us we’re
more war more likely and competent to
take risks to explore to experiment
which requires failure by the way
knowing that if we fall over we turn our
backs others will look out for us or
help us up when we need them
absent trust we still have the need to
survive and yet absent Trust we become
much more selfish it’s got about all
about me numero uno right you want to
know what happened to Lehman Brothers
they were so good at what they did they
were so good at how they did it but
there’s no sense of purpose or cause
that bound them together no clear sense
of why and so the slightest shimmy the
whole thing collapsed not a month’s not
in weeks in days in days because it the
slightest shimmy people stood up and
said I’m out of here
got to look out the numero uno got bills
to pay a mouths to feed
they became selfish their behavior can
they’re not the first organization to go
through scandal they’re not the first
organization to suffer hard Financial
Times great organizations those are the
clears that Y with a clear whine when
the organization shimmies everybody
comes together to solve the problem why
because our very survival depends
talking about survival this is caveman
stuff
the reason the human race is so
successful is not because we’re the
strongest it’s not even because we’re
the smartest because we’re social
animals it’s because we have the ability
to form communities to fajn cultures
what’s a community what’s a culture it’s
a group of people with a common set of
values and beliefs
what’s a country it’s a group of people
with a common set of values and beliefs
what’s a neighborhood it’s a group of
people with a common set of values
beliefs what’s a company it should be a
group of people with a common set of
values and beliefs surround yourself
with people who believe what you believe
and they will work for you with blood
sweat and tears if they don’t believe
what you believe they work for your
money and the reason is simple it’s
because when I’m surrounded by people
who believe what I believe my own
survival goes up and people are willing
to follow me and we’re willing to follow
each other when there’s trust right the
most basic human desire on the planet is
to feel like we belong how many of you
are from the DC area okay are you
friends with everybody in DC why not
they’re all from the same city why would
you all be friends because when you go
to Houston and you meet someone from DC
you’re like hey hey I’m from DC and
you’re best friends right when you go on
a family vacation and you’re in Paris
with your family you’re standing there
in the Paris metro and you hear an
American accent behind you you turn on
say hey what you guys don’t think so
just over like hey hey we’re from DC and
you’re best friends right because when
you’re in an environment where you don’t
feel like you belong you seek out anyone
who may share some of the same values
and beliefs as you and you start to form
very real and strong buds with these
people you know these people will give
you a recommendation for dinner or what
you should go see while you’re in Paris
and you will absolutely listen to them
you know this is the same reason why
when you’re you’re committed to making a
decision one way or another I know what
TV I’m going to buy you know and one of
your best friend says now man you got to
buy the other one all of a sudden it
either completely flew you’re through
your whole decision making or research
into a tizzy or you’ll literally choose
the other television simply because
somebody you trust
who do you think knows more than you do
is the you know the local TV guy right
is my TV right he knows we trust him and
we can’t be relied on to do everything
by ourselves this is the need to form
communities because we can only survive
and we can only excel and progress if we
help each other we work together this is
the reason for trust because we can’t
double-check everything that we’re told
so we rely on these values and believes
that I trust you
I believe that you’re gonna steer me in
the right direction not because of me
but because of the greater good okay to
it now you’re walking down the street
you know you happen to bump shoulders
with somebody they say where you going
you say I’m gonna go buy this the Sony
TV you know and they say oh I know TVs
you should buy the LG you’re gonna
ignore them now they may actually know
more than you but because you don’t know
who they are
there’s no sense of trespass no sense of
a long time ignored the problem is how
do you find the people who
now we are innately wired to find those
who like I said our very survival
depends on our ability to find those who
believe what we believe right if I ask
you to go out in the street right now
and find the people who believe what you
believe you know exactly what to do
you’re gonna you’re to go outside and
you’re gonna start to fall you’re going
to start conversations right and you
really get a good feeling about somebody
or you want you’ll have an instant
connection or you won’t right we call
this making friends or dating or
networking we know how to do it we know
how to do it problem is it’s not
scalable because you’re the only one who
can do it but if you know what symbols
deliver what if I told you to God’s eye
and find all the people wearing red hats
there’s one there’s one there’s one
there’s one there’s one they’re easy to
find because you know what’s simple to
look for it even if they don’t know what
you know color their own habits even if
they don’t know their otherwise you know
what you’re looking for you can see them
you know this is what I was saying
before which is every decision we make
in our lives as a piece of communication
the things we saying the things we do
there are people who walk around the
party Davidson logos on their body right
this is a corporate logo right there
it’s going to be walking around with
Procter and Gamble in their own right
but the reason they put it there is not
because of the motorcycle that’s because
they’re telling you about themselves
because Harley is so clear about what
they believe so disciplined about how
they do it so consistent and what they
do it gets to the point that everything
they say and everything they do serves
as a symbol for the set of values of
beliefs and we use those symbols then
attempt to communicate to the outside
world something about who we are this is
important because
of biology of human decision-making this
is not my opinion if you look at a human
brain from the top down human brain
evolved into three major areas that
corresponds precisely with this little
idea the outside area that corresponds
with the one area is our neocortex
responsible for all of our rational and
analytical thought and language the
middle two sections make up our limbic
brains and our limbic brains are
responsible for all of our feelings like
trust and loyalty it’s also responsible
for all human behavior all
decision-making and it has no capacity
for language so yes people can
understand vast amounts of complicated
information in facts and figures and
features and benefits and data it just
doesn’t drive behavior but when you
start with why you’re talking directly
to the part of the brain that controls
behavior problem is it doesn’t have
language this is why we say we get gut
feeling this is where gut feelings come
from there is no part of your stomach
that controls behavior right and it and
it’s not happening in your bones you
can’t feel it in your bones and you know
it’s not in your blood and you’re not
following your heart you know what we’re
looking to do is ascribe it to different
parts of the body because the part of
the brain that controls behavior and
decision-making doesn’t control language
and so we make things up we rationalize
right this is why the question why do
you love your husband or why do you love
your wife is a difficult question why do
you why do you love your wife I don’t
know that’s where most people start but
you spent 20 years with her you don’t
know why you married right and then we
start rationalizing just fun I can rely
on her
I’ve been there when I need her the
golden retriever right and then you
start saying things then I start saying
things that don’t even make sense right
she completes me know what that means
how do you find someone how you take out
an add-on match for someone to complete
you you know like I had a left arm and a
left leg and I’m looking for a woman
with the right arm and a right leg make
one I don’t know what that means what
we’re attempting to do is put into words
the feelings that we have towards
another person with a part of the brain
that doesn’t control anger to either
rationalize or just make things up you
do the exact same thing at work how do
you describe the people at work we you
know you just you love them and like
they get right that’s we say they get I
love that guy he gets it right and how
do you describe the people that no
matter how hard you work or how much
data you show them how much irrefutable
evidence you give them they just don’t
get it and that’s again what what’s it
how do you find the people who get it
before you work with it for three months
to realize that they don’t yet this is
where it exists the problems that exists
in the part of the brain that doesn’t
control language so we make things up
but we use symbols for this little thing
to work you have to have three things
number one you have to have clarity of
why because if you don’t know why you do
what you do howl anyway – you have to
have discipline of how you have to hold
yourself and your people accountable to
your own guiding principles of your own
values and thirdly you have consistency
of what everything you say and
everything you do has to prove what you
believe we live in the tangible world at
the end of the day oh why is just a
belief that’s all it is house of the
actions we take to realize that belief
and what – the results of those actions
the things we say the things we do and
if you don’t save do the things you
actually believe no one will know what
you believe
this is the concept behind authenticity
I’m tired and bored of people telling us
we have to be authentic refer to buy
from the authentic brand they prefer to
vote we have been to Canada playing
implement authenticity how do you go
back to your office tomorrow and make
sure everything you do from this point
on is gonna be more authentic what’s the
first thing you’re gonna do no clue it’s
totally unnatural what authenticity
means the things you say the things you
do you actually move and what you’re
doing is putting out symbols those red
hats everything you say and everything
you do you’re putting on information
that allow other people to know what you
believe and if they believe what you
believe not only that you and they drawn
to you you start to form bonds of trust
simply because they have an
understanding where they they they know
that you understand them or the way you
were raised is similar to the way they
were raised or you understand the world
that they live in when you heard that
American accent on the parents subway
instantaneously you knew just from that
accent that these people in the strange
land had a similar understanding to the
way you view the world to the way you
grow up they know the things that you
know they’ve seen the things that you
see that’s different from this
environment the strange environment that
you’re in this is what brands and
companies serve to us if they are clear
of why they do what they do and how they
do it consistent what they do everything
they say and everything they do can
serve as a symbol a way for us to
communicate something about ourselves to
find people who believe what we believe
does this have to do with changing the
woman find enough people who believe
what you believe and things start to
happen right leadership all great
leaders have the capacity for only two
things let’s imagine we’re out on a on a
ship for a three-hour tour and we get we
get blown offshore get blown of course
would land onto a beach and here we are
stranded on the beach stranded on this
desert island how we gonna get off the
island right so here we are how we gonna
get off the island so one of us stands
up and says I will leave we’re social
animals we like that you like that some
things have nominated themselves to me
and he does that see is okay
who has good ideas about how we should
get out this half of you do you think we
should build a boat I like it I like it
I like it you think we should light a
fire good good you think we start
looking for food good good okay let’s
take a vote another guy stands up and
says as we were coming into the island
I saw a fishing village off to the west
side I saw a mass and I saw smoke which
means there’s probably people there and
I’m gonna go look for help and I don’t
know how I’m gonna get through these
woods but I’m gonna get through these
woods and I’m gonna get help it if you
if you want to join me I’ll I’ll need
the help and if you don’t want to come
that’s okay because when we find help
I’ll come back and get you who are you
gonna follow who you’re gonna follow
you follow the second guy right there’s
no data to prove that that after that
fishing village exists we have no
photographs no one else saw it there’s
no study that was conducted it’s only
his conviction his undying belief that
that future that does not yet exist is
real and he has the ability to
communicate it he could have stood up
and said this isn’t going to work I’m
going through the woods and marched off
would anyone who followed him no he’s a
visionary but he’s not a leader we had a
lot of those people who we work with
they walk around frustrated and angry
that no one gets it make all the
solutions to all the problems and they
do they are absolutely visionary they
can see the future that no one else can
see the problem is they don’t have the
capacity to put it into words they’re
not leaders simultaneously you also have
where conversely you also have those
with the gift of gab you have those with
a remarkable ability to communicate but
no vision these are the ones who stand
up and give rousing speeches about the
importance of us working together and
how we’re never going to get up as
Island if we don’t work together we all
feel really great after speech and yet
we have no idea we’re gonna get off the
island
leaders have two things they have
ability to see the world see a world
that does not yet exist yet and the
ability to communicate it in terms so
clear that the rest of us can imagine it
and want to commit to help to build
I don’t know how to get through the
woods either but I’ll go with you I
don’t know what to do but sign me up
this is how you inspire people to join
it’s not based on what they can do it’s
not based on their resumes it’s based on
whether they believe what you believe
and it’s their desire to commit blood
and sweat through tears
to help you build that world that does
not yet exist leaders of one job and one
job only to remind people every single
day why we started in this journey in
this first place because it gets hard
and when you’re in the woods and you’re
digging through the trenches and you’re
going around the boulders you’re trying
to get out you haven’t it gets difficult
and you have the leader reminds us that
that’s where we’re going it’s that
fishing villages that hope it’s that
hope and that’s what inspires people to
choose to come to follow leadership
the ability to stand on the street
corner put your own red hat on and
simply talk about what you believe
better in hat gotta have gotta read
happier and all the people who believe
what you believe are eerily drawn to you
even if they don’t know their own why
even if they can’t see their own right
if you really draw to you because you’re
putting into words the beliefs they have
you’re putting it to work towards a
world that they imagine that they want
to commit to help build even though they
don’t know how to put it – it’s either
what they’ll say is I don’t know I trust
that guy I don’t know I know it’s crazy
but it just feels right I know it’s nuts
but I’m gonna quit what I’m doing
because that’s what I want to be a part
of fulfillment you know that over 90% of
us go home at the end of the day feeling
unfulfilled by our work that’s
difference between something that was
really liking your job and loving your
job now I like what I do but I don’t
love it get us but you like your job
I really like my job I can pay well you
know I like the people I work with but
do you love your job well I wouldn’t go
that far
right like is rational love is intensely
emotion
that’s what we mean by making emotional
connections it doesn’t mean making
people cry it means giving people
something to believe it means giving
something for people to latch on to for
them to be a part of innovation happens
not at the top innovation happens at the
edges what great leaders do is not come
up with all the ideas what great leaders
do is come up with is give the creative
environment which great ideas come and
they give the tools to the people who
sign up and say I believe and I will
commit and I will risk to help you build
that world and the leader gives you
tools and gives you permission to go out
and figure out a way how to do it but
they remind us of the direction
that’s what great leaders do Martin
Luther King didn’t change America by
walking across a bridge with five of his
smartest friends he changed America
because he put into words a dream that
he had that inspired tens of thousands
of people to march behind them across a
bridge that changed America the power is
always derived in the people
the leader the leader speak points the
direction together there are leaders and
there are those who lead leaders hold a
position of power or influence or rank
but those who lead inspire us and
whether they’re individuals or
organisations we follow those who lead
not because we have to but because we
want to we follow those who lead not for
them but for ourselves this is for
people who want to inspire others to be
a part of something bigger than
themselves
this is for those who want to find
someone to inspire them so that they can
be part of something bigger than
thank you very much question yes we’re
gonna open up to questions we are taping
this so if you have a question raise
your hand and I will bring you the mic
so don’t just start asking the question
do you have any great examples or even
not-so-great examples
companies that have managed to transform
there are no examples of companies that
started off as outside incompetence
right
they well I shouldn’t say that companies
that start out simply because they want
to make money and it’s simply for the
result for something else
you know when the startup comes to me
says we want you to be a part of what
we’re doing I go good why did you start
the company who do you want to flip it
in five years there’s nothing right
because who’s gonna be inspired to join
that who’s gonna work with blood sweat
and tears for that unless you’re one of
the four people at the top that might
unlikely but might reap that benefit hey
right there’s no blood sweat and tears
there so if we exclude those what
happens more commonly is not that they
start from the outside in is that what
happens is it goes fuzzy the biggest
challenge any organization will have is
its own success because when an
organization is founded what it does and
why it does it are inextricably linked
right so all organizations look exactly
the same there’s some sort of metric
it’s usually money but it can be
anything anything countable right and
time and when the organization is
founded what they do and why they do it
or any trick will be like that it’s
really exciting and the visionary
founders who can see the world and kind
of articulate it everybody gets it
everybody is inspired by the they make
silly decisions like quick or perfectly
stable job to come and be a part of this
madness because it just feels right I
don’t know I trust those guys have
nothing them into something right and
everything’s great and everybody’s
making gut decisions we all live
together and we all socialize together
and we get along together and because
we’re around each other again right the
problem is as you start selling more of
whatever you’re doing no longer can
those few people make all the decisions
decisions of being every meeting right
and so you have to start hiring people
who hire people who hire people
people hired me to make decisions based
on what and so even though you might be
selling more and the company is growing
and everything looks good the metric
standpoint the problem is the Y starts
to go fuzzy right this is what you’re
talking about and this is called the
split right symptoms of the split are
things like when passion goes down and
stress goes up symptoms of the split are
things like when the old-timers say it’s
not like it used to be nice I don’t know
why it’s not like it used to be I mean I
know it’s bigger than we’ve ever been I
know we’re growing fast in the way that
were grown I don’t know what it is it
just they have trouble putting into
words because the feeling me the
connection they had to discipline this
organization was bigger than them that
feeling has gone away now it’s just
about managing how we’re doing it and
what we’re doing right this is what we
call it in business we call it tactics
and strategy we don’t even have a word
for this right except the problem is is
every organization on the planet
functions in all three levels I don’t
think the Y is more important I think is
as important but we ignore it goal
strategy you know and so you articulate
a goal you figure out a strategy to
achieve that goal if you miss your goal
you can change the goal you change the
strategy and there you go there’s your
business it’s stuck
right you forgot why you started in the
first place that’s called the split when
you become more obsessed with what your
competition is doing and less obsessed
about what you’re doing companies that
go through the split you know when your
companies are small how much competitive
or an analysis do they do nothing can’t
afford it all they have is their vision
and the drive to achieve it when
companies get huge they stop worrying
about why they were found and stop
worrying what everybody else is doing
big companies don’t have big ideas that
can’t be innovation without why small
companies have big ideas and big
companies buy them
that’s the norm right so when a company
goes through a split so what you’re
saying is they start from the outside in
right how do you soak them so we they
think what happened as it went fuzzy the
opportunity is to remind people why we
started down this path in the first
place here companies talk about going
back to basics what does that mean what
it means is why did we start on this
journey in the first place and the
problem is is most companies can’t even
get there the best they can give you is
growth to build a company and this is
weird sort of goal-setting you know it’s
like asking somebody where you going
vacation are you gonna get their room
ninety five cool but where you going
vacation the VMO we’re hanging in their
room and they become this certain growth
what’s our strategy where why you had
that strategy we gotta grow why do you
have to grow up
it’s become this ridiculous circular
what’s the reason you need to grow do
you have to grow the goal is to
articulate a destination where you going
California don’t know how I’m gonna get
there and that’s where opportunity shows
that’s organization happens because
you’re totally agnostic as to the route
that you take and the measurements the
goals serve as signposts to make sure to
remind you that you’re going in the
right direction but they’re not the
destinations they’re signs along the way
and we confuse the destination with the
science so the opportunity is to
literally go back in time and ask
yourself the question which is why did
we bother why was it worth the risk what
was so important that we had to quit our
jobs and take the risk to do this that
nobody else could do it right we could
have got jobs and done it in our
companies we could have done it
internally wherever we started what was
so important that we had to do this
ourselves no I didn’t want to work for
the man anymore
know what was so important that it
necessitated you taking a risk that over
90% of all small businesses been
available right that’s usually where the
passion started and so that’s usually
where their passion went away to become
obsessed with the metric you forget
about passion the trophy first
that’s a tendency of vision those are
pretty is a pretty good question if
you’ve ever had the chance to see sorry
training given I have judged to see it
happen have you seen their way back sure
absolutely absolutely so in 1985 Steve
Jobs first unobservant company right by
a very good executive you know Scully
was brought in from Pepsi with it you
know came up pets he challenged
brilliant you know executive nothing
wrong with him the problem was
Scully showed up to manage a business
and Jobs was leading a movement because
great organizations function like social
movements they give people something to
believe in and to belong right Jeff
there’s no difference between Apple and
the civil rights movement none none it’s
part of my identity part of who I am
something I committed to I believe it
right he’s pushed out his own company
and what happened to the company more
like this and then Jobs came back and
Howard Schultz left Starbucks Howard
Schultz was forced to come back that
Michael Dell F Dell and Michael Dell was
forced to come back if Bill Gates just
left Microsoft and we’ll see you in
it’s not that these guys are gone into
the matter quite the opposite
right it’s because they physically
personify the cause around which they
founded their organization the challenge
that they have is that they never
probably extracted it from the person
and built it into the organization so it
becomes the cult of the personality and
not and not the organization’s cause
right worse they assign their successor
to be a how type another white line
there’s basically two types of equals
how types in those white lines right how
types get very well in the world make
lots of money achieve greatness
you know they function very well in the
world that exists in them in front of
their eyes but then let it change the
world a billion other businesses why
types can change the world of build
billion-dollar businesses right how
types don’t need white types unless
they’ve been operated massive scale why
types must have mountains and the
problem is is because these white types
do these guys with the vision and the
ability to communicate it because they
they need help to get to get there
these the CFO’s or cos there’s number
twos right which really it’s focused on
one and two it’s one in a partnership to
different skills that they promote this
guy to be in this job so visionary and
chief was now replaced by operator and
chief doesn’t inspire and you see all of
these organizations become very
operationally focused they start to have
problems here they boot that guy out and
replace with somebody else’s even more
operations focus but it’s that that went
and so you don’t have to have the
original guy come back you have to have
somebody who believes in the original
cause and they want to not light their
own torch but take the torch that was
lit for them and carried on its next
more often than not that dustpan and the
companies get big included so long sir
and the reason is this because the
outside world is not measured we’re not
looking at it and we’re certainly not
building companies to last a hundred
years we were talking about it for the
last time makes bill accidentally in
short periods 80% of the Dow indexes 30
years or younger 35 years ago into the
average lifespan of a Fortune 1000
companies 40 years or less and that’s
the lifespan of a career about a company
by cinoman preneur the company grows
really fast early 20s they’re retired
they’re 60 the putters on fumes
reviewers and the things start to not
work so well and it starts to get
chopped up bloated and that kind of
weird that you don’t really have old
companies they’re all young companies
that’s sad and that’s for this reason
it’s for this reason that lasts as long
as the human being
but there are great example that last
longer United States of America is it
really
you know the United States of America is
an entrepreneurial venture founded by a
bunch of guys who would like you know
what we can build a better country you
know and here’s the thing that you know
all of these revolutions that are having
in the Middle East that you talked about
one constitutional reform we want
constitutions but they’re missing a
vital piece the Constitution simply lays
out how we’re gonna build our country
right what really made America America
the Declaration of Independence that was
the seminal document that said why we
need our own country because we believe
that that that all men are created equal
and that everyone has opportunity and
amongst all this with equality every
single one of us has is entitled to
certain unalienable rights including
life liberty the pursuit of happiness
show me another country in the world
that has happiness a feeling in their in
their founding document and is this
clear articulation of why which we have
shorthand for the American dream what is
the American dream because me to get to
buy a house start a business doesn’t
mean you get to go to college maybe what
it means is that we’re all equal we all
have equal opportunity and we can do
what everyone and think about the
immigrants that we attract it’s not that
all immigrants make good citizens
it’s the ones who are attracted to this
country make great citizens because they
were drawn to this and sometimes our
countries and balances sometimes it’s
but it’s there and it’s an image it is
been here for long plus years so that’s
how good it is that’s how good it is but
it’s not the Constitution the
Constitution lays that happened
it’s just structural level
it’s the Declaration and very few
so we’ve talked a lot about the
commercial world the Dells and apples of
this world put to bring it into a more
geopolitical growth how would you say
the death of Osama bin Laden without
kind of what effect that organization
you know al-qaeda is is a special
organization because they followed this
to a team they’re not a hierarchical
organization they’re in network
bin Laden very very good job of
articulating this right all wise are
positive by the way there’s no such
thing as that I can find what we find
morally reprehensible is the manner in
which they carried out their their
clothes I mean their causes rise up the
Arab spirit and take control of your own
life
it’s right they hate them local
dictatorships as much as they hate us I
think it anything with making anything
that’s impressive right positive with
the manner in which they do it what
scares me but al Qaeda is that we know
that the average Arab on the street is a
moderate goes back to true we also know
that the average Arab on the street
finds one hapless September 11th or
ansible
romantic it scares me why is so clear
contacts up Hawaii as its context right
is that when you interview the average
Arab on the street they say I’m against
what happened on September 11th but I
understand it and when a moderate
rational person can rationalize apart
behavior that’s something to be afraid
of
and that’s what I find scariest the
assassination Elena
bin Laden is a good thing I think on two
levels one is it about us and one’s
about that for one it sends a signal to
say we’re patient and
no one can get away and it made
everybody go whoa
and plus you know they make fun of us
we’re so reliable technology and
listening to electronic that and as a
human being that turn up right which is
awesome
right so now it shows that they’re
they’re not infallible right and so if
we can get him we can get anything and
we will so that that from a messaging
standpoint but more importantly I think
there’s a philosophical one for us which
is we had an open world that never had
closed you know every single society
every single culture in the world has
ceremonial variable because we mean it
means we need the closure on the event
and you know when you break up with your
boyfriend your girlfriend what something
happens to be well you know what Clojure
now we need those seminal events to
service closure and this is why you know
the POWs in MI a you know now still
they’re still walking around in Vietnam
looking for remains of some of these
POWs you know from 40 or 50 or 60 years
ago because their families cannot have
closure until they can very even a piece
a bone a bone fragment of their luck and
so what I think it does is it gives it
gives us closure for a very open wound
most portable now we could really focus
so not to belabor this theme but how
how does it extend into the martyr top
so one of the elements to make a leader
martyr continuing leadership after death
yeah so the martyrdom we do the same
thing with some of our great leaders and
we build statues Department of the King
and Gandhi and you know we don’t call
the martyrs but we build statues to them
and it’s not for them per se but they
become the symbols of the set of values
of the league’s we can point the statute
marking to the king and say that’s what
we believe right we use the simple to
articulate the things that we have our
trouble articulately so I think true
martyrs are not anybody who’s willing to
do it but you know there there is a
martyr where he can become a symbol for
the cause and it still goes to a
question of whether new leadership will
continue to communicate that that sense
of why you know like I said that this
for me the scariest thing about al-qaeda
is that they are very goodness and you
and I think what’s more interesting than
the martyrdom question because you know
that that’s just a symbol that was
created I mean it happens that they
would use it I mean why wouldn’t they
write symbols matter that’s why they’ve
moved to the Twin Towers they could have
killed way more people other ways but
they would attack a symbol of our mark
prosperity
what’s more interesting is that you
can’t find fight a why with a what you
can only fight a why with another wife
right so you can’t stand up and give
facts and figures as to its against this
we can’t stand up and our politicians
are terrible at this and they say well
you know they’ve killed way more
innocent Muslims and we have it we make
every effort to avoid killing innocent
so they target doesn’t matter
the numbers are irrelevant if numbers
you cannot fight a why with a what you
can only fight it with an alternative
quantity and so if there why is all
about rise of the Arabs for to take
control okay offer them an alternative
means right our why the United States
why is that is that everyone can have if
they want we take for granted we take it
for granted that our children wake up
every single day believing that their
future is brighter than their current
state even in a bad economy we believe
the future is brighter than that
we take it for granted because that’s
who we are we’re crazy Americans that
believe in the stuff you go into them at
least their children do not believe
their futures bright as our current
state they believe it’s either the same
or worse so how do we spread up how do
we give them hope that the futures
brighter because if you don’t believe
the futures brighter and what’s the
point what’s the point of applying to at
least do something you can get a little
money for your family and guess live you
know you make something for yourself
because they have a shame based society
we don’t you constantly hear the
Palestinians justifying their actions in
terms of humiliation like we don’t even
register that because you don’t care
about things like humiliation when would
we ever done anything cuz we were
humiliated as a country never happen
right but we don’t have a shame a
society and so when you’re a young kid
who doesn’t have a job who lives at home
with your parents and you can’t find a
wife because you live at home and you
know you know who knows what’s gonna
happen there’s a great organization
called the efe foundation run by Ron
Reuter
well I think has tapped into something
remarkable and after September 11th he
saw what happened in bad that he would
never want something like that to happen
again
for fear that something would happen to
his kids right and so he set up the EOP
foundation to help 18 to 24 old young
men and women across the Middle East
learn the hard and soft skills that they
need to find job and and it’s working
and there’s hope and they’re starting to
believe that their futures brighter than
the current state and America needs to
do the same thing we even need to not
convince people that we’re good we need
to export our wife the America should be
building you know the American Institute
for Entrepreneurship locally locally
staffed funded with some of our money
and if you go into this building we will
teach you how to balance a check balance
of PML we’ll teach you how to start a
business we’ll teach you how to you know
the hard tough skills to find jobs will
teach how to interview we’ll teach you
how to take control of your own life
we’re exploiting the thing that they
recognize is for which is our why and so
that’s how you find a why with a why you
give them an alternative way to pursue
the same thing
so the martyrdom is is less of an issue
it’s how do you offer other symbols that
are as powerful if not more powerful
that they can use to to self-actualize
I’m part of that because I would even
take control of my life as opposed to
have a part of that because that we’ve
I’m a Republican I have a Democrat
ranked alternative it’s alternative
interpretations of the same pursuit not
better or worse just different not
better or worse just yeah so when
looking at the amount they have set up
there you look at the American
congressional climate you can see that
the majority of the country is very
dissatisfied how its operating and it
pretty clearly fits your body no but how
deeply entrenched we are at the graph on
your right side of the split that’s head
do you see your old circles something
that writes itself before here’s the
here’s what we lack in America
leadership right go back a few years 20
or 30 years you could rattle up the
names of leaders raters when you agreed
with them politically or not I could
have Margaret Thatcher and Ronald Reagan
box-like Hubbell you know Lee Iacocca
you know Jack Welch you know like
Valenza right
you’ll rattle up the name right there’s
no shortage of causing these days give
me five give me five great leaders from
business or private senora
public sector it may be a senator who
inspires me not none
if you’re lucky got one or two are the
ones we have are like old they’re dumb
like Bill Gates he’s retired you know
Warren Buffett he’s gonna die you know
like they’re not there we’ll give me
leader there’s no one articulating the
future of the world that doesn’t exist
yet you know that go back and listen to
the inauguration speeches of Ronald
Reagan and John F Kennedy there he goes
pick your politics I don’t care
they use these exact words World Peace
in their inaugural speeches both you
know Kennedy talked about world peace
peace Warhol obsessively so did Reagan
there’s massive idealism and people have
had undying belief in the future that
was brighter than that we know nobody
utters the word world peace you sound
like a crackpot but we need it we need
something right we don’t have leaders is
the public there’s also a massive irony
that could that Congress stands up and
criticizes Wall Street for destroying
our economy because they were fixated on
a short-term game that they could get or
these mortgage-backed securities at the
expense of the greater economy ironic
don’t you think that they’re all fixated
on winning the next election at the
expense of the greater country right
it’s like
the hypocrisy is overwhelming right and
the problem is is that is that that
everybody is into what next and very few
are willing to sacrifice even their own
political careers because it’s the right
thing to do and it’s that courage to put
your own career on the line because you
believe it’s the right thing to do and
if you don’t win the election it doesn’t
change anything you’re gonna pursue the
same thing in a different job what we
lack is leaders and because we lack
leaders just like in an organization
with an organization where the Y goes
fuzzy we become much more
self-interested we no longer give to the
greater good we no longer wake up to
help the guy next to us that we now wake
up to help ourselves it’s what happens
we’ve got to survive and absolutely
clear connection to connect us that’s
what happened to big crap that’s exactly
what’s happening this country the reason
we becoming more polarized the only
people who watch box are people who
agree with everything on Commerce and
the other people who watch MSNBC or
people who agree with it nobody’s
watching each other trying to learn
about each other we used to the ratings
on television to get more and more and
more and more polarizing more than
they’ve ever been in decades because now
we only listen to people who agree with
us as opposed to how can we work
together things like something victim
right we totally lack leadership I’ll
give you a given example so in the same
November of 2009 Barack Obama gave
speech the joint session of Congress to
sell nash national health care to the
american population right and after all
you how you do is and hello is nice to
meet you he started his speech with
there were 30 million uninsured
he started with Aflac
you’ve got to be kidding right and we
know I don’t even have to tell you what
happens in that thing right it’s in that
conversation right for the absolute
disaster and continues right imagine if
you started with y imagine if you given
that speech and he doesn’t even have to
give his wife and get America’s mom
imagine he stood up and said over 200
years ago our founding fathers believed
that we needed a new country they
believed that all men are created equal
and endowed with these unalienable
rights life liberty the pursuit of
happiness
pursuit of happiness these are the three
founding columns upon which our country
is built so let’s talk about the first
one let’s talk about life this countries
that was powerful nation in the world
America is the largest economy in the
world we have the most powerful military
in the world and only our president is
called the leader of the free world then
explain to me how a bunch amongst
Western civilized nations about Western
Western democracies United States has
had one of the highest infant mortality
rates in the world how dare we call
ourselves a leader when we cannot even
provide a doctor in every child our Dell
we call ourselves leaders until we can
provide every single one of these
founding columns for every citizen in
the United States there are 30 million
uninsured Americans now the facts don’t
approve it why would not the reason to
sell it to us in the first place and you
can get all the same objective it’s too
difficult it’s too big I know what are
you doing to help it’s too expensive you
would put a dollar on the life of one of
our children
we have context we have reason your
cause its indefensible you’re either
with us to help us build us or get out
of the way we don’t have anybody who
speaks to us in those terms we have
nobody with a consistent vision of what
the future could be that we’re willing
to volunteer to follow them to help them
build it love it I wanted to come from
anywhere
politics private sector I’m looking for
anyone to articulate a world in a
hundred years what the world could look
like if we do what we’re doing in the
grave the census successfully and by the
way will inspire other countries to join
us too soapboxing all right we’ll take
we desperately need leaders we
desperately need this our country has
gone through this in a major major way
and because America is such a leading
force in the world we do everything
first like we succeed big first and we
fail big first and so if America can get
this right then we will lead others to
do the same thing because they’re not
far behind we’re just the first one to
go through that such a major way because
that’s what we do you know we’re the
crazy pigheaded ones that do everything
first so I’m listening to your
discussion I’m trying to get beyond the
idea of profitability as the watch is
that’s just the way my mind is
programmed so if you look at nonprofit
like a charity organizations if you’re
like Avon you raise money for breast
cancer and you’re Susan komen and you’re
greatly depressed answer how do you sell
you or why that’s more important
take money for essentially something
that’s
that money is going to the same thing
like buy toothpaste why is one better
than the other how do you sell that fine
I mean again it’s not matter these Mac
versus PC one is not better than the
other either believe in this one give me
the map you know not for profits I hate
the term fun of course there is a
problem the profit isn’t money profit is
when the in is bigger than the out right
where we’re saving more people who have
cancer that people are dying with cancer
that’s the measurement and you damn well
better be profitable except the metric
is no longer money of course you’re for
problems right it’s little bit and by
calling it not for profit you demonize
this thing and yet they spend 80% of
their time and energy trying to raise it
right so it’s not about better or worse
that’s which one do I feel emotionally
connected to and usually we’re drawn to
the one where we have some sort of
personal connection you know my mother
has MS so my family is very involved in
the MS Society right priority would that
diagnosis we were in a cold at all Amen
society right thought that I didn’t care
it’s just I have no personal connection
to those are locating those things
obviously but now the question is how
well they articulate why they do what
they do and why it was important than to
start yet another charity that raises
money for seemingly the same thing is
exactly the same right which is we want
to get involved with these charitable
organizations not because of what they
do but look at least and and because
giving money and being a part of those
associations say something about Who I
am not about what they’re doing right so
they’re the the thing that sort of the
balance of these things is is not for
profits or charity organizations are
really good at the cause stuff but not
so good at the structures right
the commercial world really good at the
structure world stuff not so good at the
clothes no and it’s not better or worse
at right around dualities that vote
should look a little funny tougher there
causes one more solutely if they
understood the structure stuff better
and didn’t think of this is dirty right
and those guys would build organizations
that were more profitable amount of
greater loyalty and we’re more
innovative they could learn a little bit
more about this social
Causey stuff right because great
organizations stand for something so
again these things aren’t comparisons
about what you do what you do which
one’s better it’s what you stand for and
and do I want to be a part of what
you’re doing do I want to volunteer to
follow you because of the world that you
articulated and we can’t just default to
a world without cancer I got that right
if everybody was successful all the
cancer organizations that maybe you’re
right but what’s your specific
contribution that’s interesting to them
and a lot of charity organization
you know does a great job charity water
and the reason they do a great job it’s
not just because they’ve got the cost of
the thing that I love about them if you
give to them right they have this new
thing where you donate your birthday get
about this so if you turn 34 this year
and you donate your birthday what you
did you send out an email to all your
friends and say instead of giving me a
birthday present I want you to donate
$34 to charity more it takes you know
whatever $5,000 the builds well I don’t
know right so sounds all fine and good
in today’s money but here’s where
they’re really right they will send you
an email with a photograph of the actual
well that your birthday built right with
your name on the actual well at your
birthday bill so what most charities
don’t do is they wrote they’re heavy and
why but they never show that the actual
specific tangible results of the
if we give into it we give into the
vacuum and they give us statistics fifty
percent goes right towards the cause and
not it you know but there’s nothing
tangible with business we’ve seen the
tangible stuff what but it’s not
associated
so so so I don’t distinctly well how you
measure your profit a money metric or do
good metric I don’t care every
organization should be profitable every
people organization crystal clear why
they do what they do
discipline and how they do it
inconsistent and what they do and
they’ll find themselves vastly more
successful to have a passive greater
entitled world regardless of what they choose
and the things that we use and the
things that we say to communicate about
ourselves matter and the matter are not
just for fun for decorating offices but
there’s a social component all of this
thing that’s a big deal and the reason
it’s a big deal is you know because
we’re social animals these are the
question is you know why should we hang
out with each other why should we trust
each other and and my interest is you
know I’m interested in things like how
do you change your world and to change
the world you need lots and lots and
lots and lots of people and it’s not
technology and it’s not these things
that’s always people you know Twitter
and Facebook didn’t create revolutions
in the Middle East it was people showed
up in a square to be a part of something
that’s bigger than themselves that
changed those regimes and continued to
try to change those regimes and though
the technology is an enabler though
technology helps spread the word about
where people should go fundamentally it
was the people who showed up that made
the difference and so when we talk about
leadership I think it’s necessary that
we define what a leader is leadership
has nothing to do with rank or authority
all that is is rent authority all
leaders you know I read the same books
as everybody else and you know we’ve all
met the books about you know know your
style of leadership and how do you
adjust your style of leadership to fit
the situation and path so that’s not
leadership that’s management leaders
only have one thing and you only need
one thing to be a leader followers
that’s it that’s all you need and it has
nothing to do with your rank or your
position in society or in an
organization if people will follow you
if they volunteer because a follower is
somebody volunteers to go where you’re
going right you can use authority to get
people to go where you’re going if you
want
but why should they choose a volunteer
something raises their hands as I choose
to go where you’re going that’s a
following the question is why should
anyone follow you as an organization or
as an individual the question is why
should anyone follow you so there’s only
two ways to influence your behavior you
can manipulate it or you can inspire
those are your options
examples of manipulation in the business
world were all very familiar with
dropping your price for example if you
drop your price low enough people who’ll
do business with you this is the concept
of – sale promotions – for one free toy
inside or in the b2b space we call it
value-added concept is the same it’s
giving stuff away free to reduce
someone’s risk so they’ll choose you
over the competition right it’s
manipulative in nature you see this a
lot in technology what companies like to
call innovation as really selfie the
1970s there are two choices of Colgate
toothpaste and now you know how many
there are 37 37 right but this things
are fine things were good and then
competition increased globalization the
other world is flat competition crease
and the metric went down whether its
profitability or revenue or market share
does matter
the metric went down so what do they do
they added a new product this one has
fluoride and people went through shiny
they tried something new right and then
everybody else copy because as we all
know there’s not a single product or
service available in the market today
that people can’t buy from somebody else
for about the same price about the same
quality about the same service about the
same feature train and if you have
something truly innovative somebody will
try and copy them and whether they’re
truly better or not is irrelevant
because you know the fact of the matter
is they’ll give you a run for your money
so this idea of novelty which companies
mistakenly called innovation real
innovation changes the course of
industries of not society iTunes fact
machine like oh that’s real innovation
adding a camera to your cell phone is a
wonderful feature but it’s not
innovation and this is what happened and
what happens with so many organizations
though so here we go Colgate back in the
1970s they add a new line extension and
people are attracted to the latest shiny
thing the competition copies and now
everybody has the same thing so it
worked the first time we’ll do it again
they added another line extension and
then another one and another one and
another one and before you know it
they’ve got 37 different line extensions
and what’s their big challenge what to
put them both most companies complain
about these things how do we
differentiate this is funny how do we
get out of a problem that we created for
ourself
this is funny but this idea of novelty
just you know sort of latish anything is
is really the manipulate apartment now I
can’t dispute that these and many many
other manipulations work they absolutely
do that’s why organizations use them the
problem is not a single one of them
breeds loyalty
the problem is over the course of time
that costs more money somebody has to
pay and over the course of time to
increase stress both for the buyer and
the seller it is stressful to be a
decision-maker bombarded by manipulation
of huh manipulation how do I choose
what’s right for me how do I choose the
solution the system of flat-screen TV
preferences that’s right for me it’s
hard to make decisions it’s called
stress but it’s also stressful to be the
seller when the marketplace is one in
which it’s all manipulative bombardment
of these messages
the question is how do I stand out how
do I get my message through how do I get
people to hear me and listen to me and
then ultimately kind of get people to go
where I’m going this is largely the
world we live in today this is good more
here’s an alternative they will turn it
in is called expiration and there are a
few leaders a few organizations that
rely vastly more an inspiration than
manipulation and I’ll talk about and
that’s the ones that we’re all familiar
with it to the apples of the world of
Harley Davidson Southwest Airlines but
you see this capacity to inspire amongst
great leaders as well Nelson Mandela
Martin Luther King you know JFK and what
we know about all those meters with the
capacity to inspire is that regardless
of their size regardless of their
industry they command greater loyalty
from both employees and Riddle oil tea
from customers they can charge a premium
if they want to they are more innovative
my definition of innovation they have an
unbalanced about a success and a
balanced amount of influence in their
industries and most importantly they can
sustain all of these things for the long
term in other words what they’ve done is
they’ve inspired people to choose to
follow them
what I learned was that regardless of
their size regardless of their industry
every single one of these leaders
organizations with the capacity to
inspire thinks act and communicates the
exact same way
and it’s the complete opposite to
everyone else all I did was write it
down and it’s probably the world’s
simplest idea I call it the golden
circle basically three concentric
circles pulls on why how what this
little idea that distinguishes those
with the capacity to inspire versus
everyone else that’s defined the terms
of you quickly every organization on the
planet knows what they do is the things
we sell the products we sell the
services we offer the jobs we do some
know how they do it would you call it
your differentiating value proposition
or your proprietary process or your USP
it’s the things that you think make you
different from special or stand out in
the crowd but very very few people and
very very few organizations can clearly
articulate why they do what they do and
by why I don’t mean to make money don’t
mean to achieve the mission those are
results by why I mean what’s your
purpose what’s your cause what’s your
belief why does your organization exist
why did you get out of bed this morning
and why should anyone care as a result
the way we think the way we act the way
we communicate is from the outside in we
tell people what we do we tell them
how we how we’re different on how we’re
better and we expect some sort of
behavior or purchase a vote support
whatever but not those leaders
organizations with the capacity to
inspire every single one of them
regardless of their signs regardless of
their industry thinks act and
communicates
from the inside out let me give you an
example I use Apple a lot just because
they’re easy to get we all understand it
if Apple was like everyone else a piece
of communication would sound like this
we make great computers they’re
beautifully designed simple to use and
user friendly what a buy one that’s
normal we tell people what we do we tell
them how we’re different on how we’re
better and then we expect some sort of
behavior right here’s our new car it’s
got tinted windows leather seats great
gas mileage to choose it here is our law
firm we’ve got all the best lawyers we
went to all the best schools we would
all of our cases reportable the biggest
firms you know choosing but here’s how
Apple actually they start with watching
everything we do they say we believe in
challenging the status quo we believe in
thinking differently the way we
challenge the status quo is by making
our products beautifully designed simple
to use and user friendly is happened to
make great computers one of my one
it’s totally different trickery no
manipulation no celebrity endorsements
or all I did was reverse the order of
the information when it starts to show
us that it’s not what you do that
matters that’s why you do it and people
don’t buy what you do they buy why you
do it that’s why every single person in
this group is perfectly comfortable with
the idea that Apple sells computers
we’re also perfectly comfortable with
the idea that Apple sells phones and mp3
players and DVRs Apple is just a company
that’s all they are it’s a corporate
structure every single one of their
competitors has equal an open access to
the same resources the same agencies the
same talent the same consultants the
same media it is a zero-sum game every
single one of their competitors is
equally qualified to make every product
that Apple makes the difference is those
organizations have defined themselves by
what they do we make computers where
Apple has defined themselves by why they
exist and what they do simply serves as
the tangible proof of what they believe
Dell the company perfectly qualified to
make every product that Apple makes a
few years ago came out with PDAs and mp3
players and nobody bought one why would
we buy an mp3 player from a computer
company it doesn’t make sense but we do
it every day because it’s not what you
do that matters it’s why you do it and
what you do serves as the tangible proof
of what you believe now the importance
of these tangible proofs is they become
the symbols they tell us something about
the you are and what you stand for
like those posters in the hallway get to
know a little bit about somebody or
someone based on the things they say the
things they do every single decision we
make in our lives is a piece of
communication it’s our way of saying
something to the outside world why
simply because we need to attract the
people who believe what we believe
you see when you’re surrounded by people
who believe what you believe something
remarkable happens trust emergence and
make no mistake of it trust as a feeling
a distinctly human experience when we
are surrounded by people who believe
what we believe when we trust others and
others are willing to trust us we’re
more war more likely and competent to
take risks to explore to experiment
which requires failure by the way
knowing that if we fall over we turn our
backs others will look out for us or
help us up when we need them
absent trust we still have the need to
survive and yet absent Trust we become
much more selfish it’s got about all
about me numero uno right you want to
know what happened to Lehman Brothers
they were so good at what they did they
were so good at how they did it but
there’s no sense of purpose or cause
that bound them together no clear sense
of why and so the slightest shimmy the
whole thing collapsed not a month’s not
in weeks in days in days because it the
slightest shimmy people stood up and
said I’m out of here
got to look out the numero uno got bills
to pay a mouths to feed
they became selfish their behavior can
they’re not the first organization to go
through scandal they’re not the first
organization to suffer hard Financial
Times great organizations those are the
clears that Y with a clear whine when
the organization shimmies everybody
comes together to solve the problem why
because our very survival depends
talking about survival this is caveman
stuff
the reason the human race is so
successful is not because we’re the
strongest it’s not even because we’re
the smartest because we’re social
animals it’s because we have the ability
to form communities to fajn cultures
what’s a community what’s a culture it’s
a group of people with a common set of
values and beliefs
what’s a country it’s a group of people
with a common set of values and beliefs
what’s a neighborhood it’s a group of
people with a common set of values
beliefs what’s a company it should be a
group of people with a common set of
values and beliefs surround yourself
with people who believe what you believe
and they will work for you with blood
sweat and tears if they don’t believe
what you believe they work for your
money and the reason is simple it’s
because when I’m surrounded by people
who believe what I believe my own
survival goes up and people are willing
to follow me and we’re willing to follow
each other when there’s trust right the
most basic human desire on the planet is
to feel like we belong how many of you
are from the DC area okay are you
friends with everybody in DC why not
they’re all from the same city why would
you all be friends because when you go
to Houston and you meet someone from DC
you’re like hey hey I’m from DC and
you’re best friends right when you go on
a family vacation and you’re in Paris
with your family you’re standing there
in the Paris metro and you hear an
American accent behind you you turn on
say hey what you guys don’t think so
just over like hey hey we’re from DC and
you’re best friends right because when
you’re in an environment where you don’t
feel like you belong you seek out anyone
who may share some of the same values
and beliefs as you and you start to form
very real and strong buds with these
people you know these people will give
you a recommendation for dinner or what
you should go see while you’re in Paris
and you will absolutely listen to them
you know this is the same reason why
when you’re you’re committed to making a
decision one way or another I know what
TV I’m going to buy you know and one of
your best friend says now man you got to
buy the other one all of a sudden it
either completely flew you’re through
your whole decision making or research
into a tizzy or you’ll literally choose
the other television simply because
somebody you trust
who do you think knows more than you do
is the you know the local TV guy right
is my TV right he knows we trust him and
we can’t be relied on to do everything
by ourselves this is the need to form
communities because we can only survive
and we can only excel and progress if we
help each other we work together this is
the reason for trust because we can’t
double-check everything that we’re told
so we rely on these values and believes
that I trust you
I believe that you’re gonna steer me in
the right direction not because of me
but because of the greater good okay to
it now you’re walking down the street
you know you happen to bump shoulders
with somebody they say where you going
you say I’m gonna go buy this the Sony
TV you know and they say oh I know TVs
you should buy the LG you’re gonna
ignore them now they may actually know
more than you but because you don’t know
who they are
there’s no sense of trespass no sense of
a long time ignored the problem is how
do you find the people who
now we are innately wired to find those
who like I said our very survival
depends on our ability to find those who
believe what we believe right if I ask
you to go out in the street right now
and find the people who believe what you
believe you know exactly what to do
you’re gonna you’re to go outside and
you’re gonna start to fall you’re going
to start conversations right and you
really get a good feeling about somebody
or you want you’ll have an instant
connection or you won’t right we call
this making friends or dating or
networking we know how to do it we know
how to do it problem is it’s not
scalable because you’re the only one who
can do it but if you know what symbols
deliver what if I told you to God’s eye
and find all the people wearing red hats
there’s one there’s one there’s one
there’s one there’s one they’re easy to
find because you know what’s simple to
look for it even if they don’t know what
you know color their own habits even if
they don’t know their otherwise you know
what you’re looking for you can see them
you know this is what I was saying
before which is every decision we make
in our lives as a piece of communication
the things we saying the things we do
there are people who walk around the
party Davidson logos on their body right
this is a corporate logo right there
it’s going to be walking around with
Procter and Gamble in their own right
but the reason they put it there is not
because of the motorcycle that’s because
they’re telling you about themselves
because Harley is so clear about what
they believe so disciplined about how
they do it so consistent and what they
do it gets to the point that everything
they say and everything they do serves
as a symbol for the set of values of
beliefs and we use those symbols then
attempt to communicate to the outside
world something about who we are this is
important because
of biology of human decision-making this
is not my opinion if you look at a human
brain from the top down human brain
evolved into three major areas that
corresponds precisely with this little
idea the outside area that corresponds
with the one area is our neocortex
responsible for all of our rational and
analytical thought and language the
middle two sections make up our limbic
brains and our limbic brains are
responsible for all of our feelings like
trust and loyalty it’s also responsible
for all human behavior all
decision-making and it has no capacity
for language so yes people can
understand vast amounts of complicated
information in facts and figures and
features and benefits and data it just
doesn’t drive behavior but when you
start with why you’re talking directly
to the part of the brain that controls
behavior problem is it doesn’t have
language this is why we say we get gut
feeling this is where gut feelings come
from there is no part of your stomach
that controls behavior right and it and
it’s not happening in your bones you
can’t feel it in your bones and you know
it’s not in your blood and you’re not
following your heart you know what we’re
looking to do is ascribe it to different
parts of the body because the part of
the brain that controls behavior and
decision-making doesn’t control language
and so we make things up we rationalize
right this is why the question why do
you love your husband or why do you love
your wife is a difficult question why do
you why do you love your wife I don’t
know that’s where most people start but
you spent 20 years with her you don’t
know why you married right and then we
start rationalizing just fun I can rely
on her
I’ve been there when I need her the
golden retriever right and then you
start saying things then I start saying
things that don’t even make sense right
she completes me know what that means
how do you find someone how you take out
an add-on match for someone to complete
you you know like I had a left arm and a
left leg and I’m looking for a woman
with the right arm and a right leg make
one I don’t know what that means what
we’re attempting to do is put into words
the feelings that we have towards
another person with a part of the brain
that doesn’t control anger to either
rationalize or just make things up you
do the exact same thing at work how do
you describe the people at work we you
know you just you love them and like
they get right that’s we say they get I
love that guy he gets it right and how
do you describe the people that no
matter how hard you work or how much
data you show them how much irrefutable
evidence you give them they just don’t
get it and that’s again what what’s it
how do you find the people who get it
before you work with it for three months
to realize that they don’t yet this is
where it exists the problems that exists
in the part of the brain that doesn’t
control language so we make things up
but we use symbols for this little thing
to work you have to have three things
number one you have to have clarity of
why because if you don’t know why you do
what you do howl anyway – you have to
have discipline of how you have to hold
yourself and your people accountable to
your own guiding principles of your own
values and thirdly you have consistency
of what everything you say and
everything you do has to prove what you
believe we live in the tangible world at
the end of the day oh why is just a
belief that’s all it is house of the
actions we take to realize that belief
and what – the results of those actions
the things we say the things we do and
if you don’t save do the things you
actually believe no one will know what
you believe
this is the concept behind authenticity
I’m tired and bored of people telling us
we have to be authentic refer to buy
from the authentic brand they prefer to
vote we have been to Canada playing
implement authenticity how do you go
back to your office tomorrow and make
sure everything you do from this point
on is gonna be more authentic what’s the
first thing you’re gonna do no clue it’s
totally unnatural what authenticity
means the things you say the things you
do you actually move and what you’re
doing is putting out symbols those red
hats everything you say and everything
you do you’re putting on information
that allow other people to know what you
believe and if they believe what you
believe not only that you and they drawn
to you you start to form bonds of trust
simply because they have an
understanding where they they they know
that you understand them or the way you
were raised is similar to the way they
were raised or you understand the world
that they live in when you heard that
American accent on the parents subway
instantaneously you knew just from that
accent that these people in the strange
land had a similar understanding to the
way you view the world to the way you
grow up they know the things that you
know they’ve seen the things that you
see that’s different from this
environment the strange environment that
you’re in this is what brands and
companies serve to us if they are clear
of why they do what they do and how they
do it consistent what they do everything
they say and everything they do can
serve as a symbol a way for us to
communicate something about ourselves to
find people who believe what we believe
does this have to do with changing the
woman find enough people who believe
what you believe and things start to
happen right leadership all great
leaders have the capacity for only two
things let’s imagine we’re out on a on a
ship for a three-hour tour and we get we
get blown offshore get blown of course
would land onto a beach and here we are
stranded on the beach stranded on this
desert island how we gonna get off the
island right so here we are how we gonna
get off the island so one of us stands
up and says I will leave we’re social
animals we like that you like that some
things have nominated themselves to me
and he does that see is okay
who has good ideas about how we should
get out this half of you do you think we
should build a boat I like it I like it
I like it you think we should light a
fire good good you think we start
looking for food good good okay let’s
take a vote another guy stands up and
says as we were coming into the island
I saw a fishing village off to the west
side I saw a mass and I saw smoke which
means there’s probably people there and
I’m gonna go look for help and I don’t
know how I’m gonna get through these
woods but I’m gonna get through these
woods and I’m gonna get help it if you
if you want to join me I’ll I’ll need
the help and if you don’t want to come
that’s okay because when we find help
I’ll come back and get you who are you
gonna follow who you’re gonna follow
you follow the second guy right there’s
no data to prove that that after that
fishing village exists we have no
photographs no one else saw it there’s
no study that was conducted it’s only
his conviction his undying belief that
that future that does not yet exist is
real and he has the ability to
communicate it he could have stood up
and said this isn’t going to work I’m
going through the woods and marched off
would anyone who followed him no he’s a
visionary but he’s not a leader we had a
lot of those people who we work with
they walk around frustrated and angry
that no one gets it make all the
solutions to all the problems and they
do they are absolutely visionary they
can see the future that no one else can
see the problem is they don’t have the
capacity to put it into words they’re
not leaders simultaneously you also have
where conversely you also have those
with the gift of gab you have those with
a remarkable ability to communicate but
no vision these are the ones who stand
up and give rousing speeches about the
importance of us working together and
how we’re never going to get up as
Island if we don’t work together we all
feel really great after speech and yet
we have no idea we’re gonna get off the
island
leaders have two things they have
ability to see the world see a world
that does not yet exist yet and the
ability to communicate it in terms so
clear that the rest of us can imagine it
and want to commit to help to build
I don’t know how to get through the
woods either but I’ll go with you I
don’t know what to do but sign me up
this is how you inspire people to join
it’s not based on what they can do it’s
not based on their resumes it’s based on
whether they believe what you believe
and it’s their desire to commit blood
and sweat through tears
to help you build that world that does
not yet exist leaders of one job and one
job only to remind people every single
day why we started in this journey in
this first place because it gets hard
and when you’re in the woods and you’re
digging through the trenches and you’re
going around the boulders you’re trying
to get out you haven’t it gets difficult
and you have the leader reminds us that
that’s where we’re going it’s that
fishing villages that hope it’s that
hope and that’s what inspires people to
choose to come to follow leadership
the ability to stand on the street
corner put your own red hat on and
simply talk about what you believe
better in hat gotta have gotta read
happier and all the people who believe
what you believe are eerily drawn to you
even if they don’t know their own why
even if they can’t see their own right
if you really draw to you because you’re
putting into words the beliefs they have
you’re putting it to work towards a
world that they imagine that they want
to commit to help build even though they
don’t know how to put it – it’s either
what they’ll say is I don’t know I trust
that guy I don’t know I know it’s crazy
but it just feels right I know it’s nuts
but I’m gonna quit what I’m doing
because that’s what I want to be a part
of fulfillment you know that over 90% of
us go home at the end of the day feeling
unfulfilled by our work that’s
difference between something that was
really liking your job and loving your
job now I like what I do but I don’t
love it get us but you like your job
I really like my job I can pay well you
know I like the people I work with but
do you love your job well I wouldn’t go
that far
right like is rational love is intensely
emotion
that’s what we mean by making emotional
connections it doesn’t mean making
people cry it means giving people
something to believe it means giving
something for people to latch on to for
them to be a part of innovation happens
not at the top innovation happens at the
edges what great leaders do is not come
up with all the ideas what great leaders
do is come up with is give the creative
environment which great ideas come and
they give the tools to the people who
sign up and say I believe and I will
commit and I will risk to help you build
that world and the leader gives you
tools and gives you permission to go out
and figure out a way how to do it but
they remind us of the direction
that’s what great leaders do Martin
Luther King didn’t change America by
walking across a bridge with five of his
smartest friends he changed America
because he put into words a dream that
he had that inspired tens of thousands
of people to march behind them across a
bridge that changed America the power is
always derived in the people
the leader the leader speak points the
direction together there are leaders and
there are those who lead leaders hold a
position of power or influence or rank
but those who lead inspire us and
whether they’re individuals or
organisations we follow those who lead
not because we have to but because we
want to we follow those who lead not for
them but for ourselves this is for
people who want to inspire others to be
a part of something bigger than
themselves
this is for those who want to find
someone to inspire them so that they can
be part of something bigger than
thank you very much question yes we’re
gonna open up to questions we are taping
this so if you have a question raise
your hand and I will bring you the mic
so don’t just start asking the question
do you have any great examples or even
not-so-great examples
companies that have managed to transform
there are no examples of companies that
started off as outside incompetence
right
they well I shouldn’t say that companies
that start out simply because they want
to make money and it’s simply for the
result for something else
you know when the startup comes to me
says we want you to be a part of what
we’re doing I go good why did you start
the company who do you want to flip it
in five years there’s nothing right
because who’s gonna be inspired to join
that who’s gonna work with blood sweat
and tears for that unless you’re one of
the four people at the top that might
unlikely but might reap that benefit hey
right there’s no blood sweat and tears
there so if we exclude those what
happens more commonly is not that they
start from the outside in is that what
happens is it goes fuzzy the biggest
challenge any organization will have is
its own success because when an
organization is founded what it does and
why it does it are inextricably linked
right so all organizations look exactly
the same there’s some sort of metric
it’s usually money but it can be
anything anything countable right and
time and when the organization is
founded what they do and why they do it
or any trick will be like that it’s
really exciting and the visionary
founders who can see the world and kind
of articulate it everybody gets it
everybody is inspired by the they make
silly decisions like quick or perfectly
stable job to come and be a part of this
madness because it just feels right I
don’t know I trust those guys have
nothing them into something right and
everything’s great and everybody’s
making gut decisions we all live
together and we all socialize together
and we get along together and because
we’re around each other again right the
problem is as you start selling more of
whatever you’re doing no longer can
those few people make all the decisions
decisions of being every meeting right
and so you have to start hiring people
who hire people who hire people
people hired me to make decisions based
on what and so even though you might be
selling more and the company is growing
and everything looks good the metric
standpoint the problem is the Y starts
to go fuzzy right this is what you’re
talking about and this is called the
split right symptoms of the split are
things like when passion goes down and
stress goes up symptoms of the split are
things like when the old-timers say it’s
not like it used to be nice I don’t know
why it’s not like it used to be I mean I
know it’s bigger than we’ve ever been I
know we’re growing fast in the way that
were grown I don’t know what it is it
just they have trouble putting into
words because the feeling me the
connection they had to discipline this
organization was bigger than them that
feeling has gone away now it’s just
about managing how we’re doing it and
what we’re doing right this is what we
call it in business we call it tactics
and strategy we don’t even have a word
for this right except the problem is is
every organization on the planet
functions in all three levels I don’t
think the Y is more important I think is
as important but we ignore it goal
strategy you know and so you articulate
a goal you figure out a strategy to
achieve that goal if you miss your goal
you can change the goal you change the
strategy and there you go there’s your
business it’s stuck
right you forgot why you started in the
first place that’s called the split when
you become more obsessed with what your
competition is doing and less obsessed
about what you’re doing companies that
go through the split you know when your
companies are small how much competitive
or an analysis do they do nothing can’t
afford it all they have is their vision
and the drive to achieve it when
companies get huge they stop worrying
about why they were found and stop
worrying what everybody else is doing
big companies don’t have big ideas that
can’t be innovation without why small
companies have big ideas and big
companies buy them
that’s the norm right so when a company
goes through a split so what you’re
saying is they start from the outside in
right how do you soak them so we they
think what happened as it went fuzzy the
opportunity is to remind people why we
started down this path in the first
place here companies talk about going
back to basics what does that mean what
it means is why did we start on this
journey in the first place and the
problem is is most companies can’t even
get there the best they can give you is
growth to build a company and this is
weird sort of goal-setting you know it’s
like asking somebody where you going
vacation are you gonna get their room
ninety five cool but where you going
vacation the VMO we’re hanging in their
room and they become this certain growth
what’s our strategy where why you had
that strategy we gotta grow why do you
have to grow up
it’s become this ridiculous circular
what’s the reason you need to grow do
you have to grow the goal is to
articulate a destination where you going
California don’t know how I’m gonna get
there and that’s where opportunity shows
that’s organization happens because
you’re totally agnostic as to the route
that you take and the measurements the
goals serve as signposts to make sure to
remind you that you’re going in the
right direction but they’re not the
destinations they’re signs along the way
and we confuse the destination with the
science so the opportunity is to
literally go back in time and ask
yourself the question which is why did
we bother why was it worth the risk what
was so important that we had to quit our
jobs and take the risk to do this that
nobody else could do it right we could
have got jobs and done it in our
companies we could have done it
internally wherever we started what was
so important that we had to do this
ourselves no I didn’t want to work for
the man anymore
know what was so important that it
necessitated you taking a risk that over
90% of all small businesses been
available right that’s usually where the
passion started and so that’s usually
where their passion went away to become
obsessed with the metric you forget
about passion the trophy first
that’s a tendency of vision those are
pretty is a pretty good question if
you’ve ever had the chance to see sorry
training given I have judged to see it
happen have you seen their way back sure
absolutely absolutely so in 1985 Steve
Jobs first unobservant company right by
a very good executive you know Scully
was brought in from Pepsi with it you
know came up pets he challenged
brilliant you know executive nothing
wrong with him the problem was
Scully showed up to manage a business
and Jobs was leading a movement because
great organizations function like social
movements they give people something to
believe in and to belong right Jeff
there’s no difference between Apple and
the civil rights movement none none it’s
part of my identity part of who I am
something I committed to I believe it
right he’s pushed out his own company
and what happened to the company more
like this and then Jobs came back and
Howard Schultz left Starbucks Howard
Schultz was forced to come back that
Michael Dell F Dell and Michael Dell was
forced to come back if Bill Gates just
left Microsoft and we’ll see you in
it’s not that these guys are gone into
the matter quite the opposite
right it’s because they physically
personify the cause around which they
founded their organization the challenge
that they have is that they never
probably extracted it from the person
and built it into the organization so it
becomes the cult of the personality and
not and not the organization’s cause
right worse they assign their successor
to be a how type another white line
there’s basically two types of equals
how types in those white lines right how
types get very well in the world make
lots of money achieve greatness
you know they function very well in the
world that exists in them in front of
their eyes but then let it change the
world a billion other businesses why
types can change the world of build
billion-dollar businesses right how
types don’t need white types unless
they’ve been operated massive scale why
types must have mountains and the
problem is is because these white types
do these guys with the vision and the
ability to communicate it because they
they need help to get to get there
these the CFO’s or cos there’s number
twos right which really it’s focused on
one and two it’s one in a partnership to
different skills that they promote this
guy to be in this job so visionary and
chief was now replaced by operator and
chief doesn’t inspire and you see all of
these organizations become very
operationally focused they start to have
problems here they boot that guy out and
replace with somebody else’s even more
operations focus but it’s that that went
and so you don’t have to have the
original guy come back you have to have
somebody who believes in the original
cause and they want to not light their
own torch but take the torch that was
lit for them and carried on its next
more often than not that dustpan and the
companies get big included so long sir
and the reason is this because the
outside world is not measured we’re not
looking at it and we’re certainly not
building companies to last a hundred
years we were talking about it for the
last time makes bill accidentally in
short periods 80% of the Dow indexes 30
years or younger 35 years ago into the
average lifespan of a Fortune 1000
companies 40 years or less and that’s
the lifespan of a career about a company
by cinoman preneur the company grows
really fast early 20s they’re retired
they’re 60 the putters on fumes
reviewers and the things start to not
work so well and it starts to get
chopped up bloated and that kind of
weird that you don’t really have old
companies they’re all young companies
that’s sad and that’s for this reason
it’s for this reason that lasts as long
as the human being
but there are great example that last
longer United States of America is it
really
you know the United States of America is
an entrepreneurial venture founded by a
bunch of guys who would like you know
what we can build a better country you
know and here’s the thing that you know
all of these revolutions that are having
in the Middle East that you talked about
one constitutional reform we want
constitutions but they’re missing a
vital piece the Constitution simply lays
out how we’re gonna build our country
right what really made America America
the Declaration of Independence that was
the seminal document that said why we
need our own country because we believe
that that that all men are created equal
and that everyone has opportunity and
amongst all this with equality every
single one of us has is entitled to
certain unalienable rights including
life liberty the pursuit of happiness
show me another country in the world
that has happiness a feeling in their in
their founding document and is this
clear articulation of why which we have
shorthand for the American dream what is
the American dream because me to get to
buy a house start a business doesn’t
mean you get to go to college maybe what
it means is that we’re all equal we all
have equal opportunity and we can do
what everyone and think about the
immigrants that we attract it’s not that
all immigrants make good citizens
it’s the ones who are attracted to this
country make great citizens because they
were drawn to this and sometimes our
countries and balances sometimes it’s
but it’s there and it’s an image it is
been here for long plus years so that’s
how good it is that’s how good it is but
it’s not the Constitution the
Constitution lays that happened
it’s just structural level
it’s the Declaration and very few
so we’ve talked a lot about the
commercial world the Dells and apples of
this world put to bring it into a more
geopolitical growth how would you say
the death of Osama bin Laden without
kind of what effect that organization
you know al-qaeda is is a special
organization because they followed this
to a team they’re not a hierarchical
organization they’re in network
bin Laden very very good job of
articulating this right all wise are
positive by the way there’s no such
thing as that I can find what we find
morally reprehensible is the manner in
which they carried out their their
clothes I mean their causes rise up the
Arab spirit and take control of your own
life
it’s right they hate them local
dictatorships as much as they hate us I
think it anything with making anything
that’s impressive right positive with
the manner in which they do it what
scares me but al Qaeda is that we know
that the average Arab on the street is a
moderate goes back to true we also know
that the average Arab on the street
finds one hapless September 11th or
ansible
romantic it scares me why is so clear
contacts up Hawaii as its context right
is that when you interview the average
Arab on the street they say I’m against
what happened on September 11th but I
understand it and when a moderate
rational person can rationalize apart
behavior that’s something to be afraid
of
and that’s what I find scariest the
assassination Elena
bin Laden is a good thing I think on two
levels one is it about us and one’s
about that for one it sends a signal to
say we’re patient and
no one can get away and it made
everybody go whoa
and plus you know they make fun of us
we’re so reliable technology and
listening to electronic that and as a
human being that turn up right which is
awesome
right so now it shows that they’re
they’re not infallible right and so if
we can get him we can get anything and
we will so that that from a messaging
standpoint but more importantly I think
there’s a philosophical one for us which
is we had an open world that never had
closed you know every single society
every single culture in the world has
ceremonial variable because we mean it
means we need the closure on the event
and you know when you break up with your
boyfriend your girlfriend what something
happens to be well you know what Clojure
now we need those seminal events to
service closure and this is why you know
the POWs in MI a you know now still
they’re still walking around in Vietnam
looking for remains of some of these
POWs you know from 40 or 50 or 60 years
ago because their families cannot have
closure until they can very even a piece
a bone a bone fragment of their luck and
so what I think it does is it gives it
gives us closure for a very open wound
most portable now we could really focus
so not to belabor this theme but how
how does it extend into the martyr top
so one of the elements to make a leader
martyr continuing leadership after death
yeah so the martyrdom we do the same
thing with some of our great leaders and
we build statues Department of the King
and Gandhi and you know we don’t call
the martyrs but we build statues to them
and it’s not for them per se but they
become the symbols of the set of values
of the league’s we can point the statute
marking to the king and say that’s what
we believe right we use the simple to
articulate the things that we have our
trouble articulately so I think true
martyrs are not anybody who’s willing to
do it but you know there there is a
martyr where he can become a symbol for
the cause and it still goes to a
question of whether new leadership will
continue to communicate that that sense
of why you know like I said that this
for me the scariest thing about al-qaeda
is that they are very goodness and you
and I think what’s more interesting than
the martyrdom question because you know
that that’s just a symbol that was
created I mean it happens that they
would use it I mean why wouldn’t they
write symbols matter that’s why they’ve
moved to the Twin Towers they could have
killed way more people other ways but
they would attack a symbol of our mark
prosperity
what’s more interesting is that you
can’t find fight a why with a what you
can only fight a why with another wife
right so you can’t stand up and give
facts and figures as to its against this
we can’t stand up and our politicians
are terrible at this and they say well
you know they’ve killed way more
innocent Muslims and we have it we make
every effort to avoid killing innocent
so they target doesn’t matter
the numbers are irrelevant if numbers
you cannot fight a why with a what you
can only fight it with an alternative
quantity and so if there why is all
about rise of the Arabs for to take
control okay offer them an alternative
means right our why the United States
why is that is that everyone can have if
they want we take for granted we take it
for granted that our children wake up
every single day believing that their
future is brighter than their current
state even in a bad economy we believe
the future is brighter than that
we take it for granted because that’s
who we are we’re crazy Americans that
believe in the stuff you go into them at
least their children do not believe
their futures bright as our current
state they believe it’s either the same
or worse so how do we spread up how do
we give them hope that the futures
brighter because if you don’t believe
the futures brighter and what’s the
point what’s the point of applying to at
least do something you can get a little
money for your family and guess live you
know you make something for yourself
because they have a shame based society
we don’t you constantly hear the
Palestinians justifying their actions in
terms of humiliation like we don’t even
register that because you don’t care
about things like humiliation when would
we ever done anything cuz we were
humiliated as a country never happen
right but we don’t have a shame a
society and so when you’re a young kid
who doesn’t have a job who lives at home
with your parents and you can’t find a
wife because you live at home and you
know you know who knows what’s gonna
happen there’s a great organization
called the efe foundation run by Ron
Reuter
well I think has tapped into something
remarkable and after September 11th he
saw what happened in bad that he would
never want something like that to happen
again
for fear that something would happen to
his kids right and so he set up the EOP
foundation to help 18 to 24 old young
men and women across the Middle East
learn the hard and soft skills that they
need to find job and and it’s working
and there’s hope and they’re starting to
believe that their futures brighter than
the current state and America needs to
do the same thing we even need to not
convince people that we’re good we need
to export our wife the America should be
building you know the American Institute
for Entrepreneurship locally locally
staffed funded with some of our money
and if you go into this building we will
teach you how to balance a check balance
of PML we’ll teach you how to start a
business we’ll teach you how to you know
the hard tough skills to find jobs will
teach how to interview we’ll teach you
how to take control of your own life
we’re exploiting the thing that they
recognize is for which is our why and so
that’s how you find a why with a why you
give them an alternative way to pursue
the same thing
so the martyrdom is is less of an issue
it’s how do you offer other symbols that
are as powerful if not more powerful
that they can use to to self-actualize
I’m part of that because I would even
take control of my life as opposed to
have a part of that because that we’ve
I’m a Republican I have a Democrat
ranked alternative it’s alternative
interpretations of the same pursuit not
better or worse just different not
better or worse just yeah so when
looking at the amount they have set up
there you look at the American
congressional climate you can see that
the majority of the country is very
dissatisfied how its operating and it
pretty clearly fits your body no but how
deeply entrenched we are at the graph on
your right side of the split that’s head
do you see your old circles something
that writes itself before here’s the
here’s what we lack in America
leadership right go back a few years 20
or 30 years you could rattle up the
names of leaders raters when you agreed
with them politically or not I could
have Margaret Thatcher and Ronald Reagan
box-like Hubbell you know Lee Iacocca
you know Jack Welch you know like
Valenza right
you’ll rattle up the name right there’s
no shortage of causing these days give
me five give me five great leaders from
business or private senora
public sector it may be a senator who
inspires me not none
if you’re lucky got one or two are the
ones we have are like old they’re dumb
like Bill Gates he’s retired you know
Warren Buffett he’s gonna die you know
like they’re not there we’ll give me
leader there’s no one articulating the
future of the world that doesn’t exist
yet you know that go back and listen to
the inauguration speeches of Ronald
Reagan and John F Kennedy there he goes
pick your politics I don’t care
they use these exact words World Peace
in their inaugural speeches both you
know Kennedy talked about world peace
peace Warhol obsessively so did Reagan
there’s massive idealism and people have
had undying belief in the future that
was brighter than that we know nobody
utters the word world peace you sound
like a crackpot but we need it we need
something right we don’t have leaders is
the public there’s also a massive irony
that could that Congress stands up and
criticizes Wall Street for destroying
our economy because they were fixated on
a short-term game that they could get or
these mortgage-backed securities at the
expense of the greater economy ironic
don’t you think that they’re all fixated
on winning the next election at the
expense of the greater country right
it’s like
the hypocrisy is overwhelming right and
the problem is is that is that that
everybody is into what next and very few
are willing to sacrifice even their own
political careers because it’s the right
thing to do and it’s that courage to put
your own career on the line because you
believe it’s the right thing to do and
if you don’t win the election it doesn’t
change anything you’re gonna pursue the
same thing in a different job what we
lack is leaders and because we lack
leaders just like in an organization
with an organization where the Y goes
fuzzy we become much more
self-interested we no longer give to the
greater good we no longer wake up to
help the guy next to us that we now wake
up to help ourselves it’s what happens
we’ve got to survive and absolutely
clear connection to connect us that’s
what happened to big crap that’s exactly
what’s happening this country the reason
we becoming more polarized the only
people who watch box are people who
agree with everything on Commerce and
the other people who watch MSNBC or
people who agree with it nobody’s
watching each other trying to learn
about each other we used to the ratings
on television to get more and more and
more and more polarizing more than
they’ve ever been in decades because now
we only listen to people who agree with
us as opposed to how can we work
together things like something victim
right we totally lack leadership I’ll
give you a given example so in the same
November of 2009 Barack Obama gave
speech the joint session of Congress to
sell nash national health care to the
american population right and after all
you how you do is and hello is nice to
meet you he started his speech with
there were 30 million uninsured
he started with Aflac
you’ve got to be kidding right and we
know I don’t even have to tell you what
happens in that thing right it’s in that
conversation right for the absolute
disaster and continues right imagine if
you started with y imagine if you given
that speech and he doesn’t even have to
give his wife and get America’s mom
imagine he stood up and said over 200
years ago our founding fathers believed
that we needed a new country they
believed that all men are created equal
and endowed with these unalienable
rights life liberty the pursuit of
happiness
pursuit of happiness these are the three
founding columns upon which our country
is built so let’s talk about the first
one let’s talk about life this countries
that was powerful nation in the world
America is the largest economy in the
world we have the most powerful military
in the world and only our president is
called the leader of the free world then
explain to me how a bunch amongst
Western civilized nations about Western
Western democracies United States has
had one of the highest infant mortality
rates in the world how dare we call
ourselves a leader when we cannot even
provide a doctor in every child our Dell
we call ourselves leaders until we can
provide every single one of these
founding columns for every citizen in
the United States there are 30 million
uninsured Americans now the facts don’t
approve it why would not the reason to
sell it to us in the first place and you
can get all the same objective it’s too
difficult it’s too big I know what are
you doing to help it’s too expensive you
would put a dollar on the life of one of
our children
we have context we have reason your
cause its indefensible you’re either
with us to help us build us or get out
of the way we don’t have anybody who
speaks to us in those terms we have
nobody with a consistent vision of what
the future could be that we’re willing
to volunteer to follow them to help them
build it love it I wanted to come from
anywhere
politics private sector I’m looking for
anyone to articulate a world in a
hundred years what the world could look
like if we do what we’re doing in the
grave the census successfully and by the
way will inspire other countries to join
us too soapboxing all right we’ll take
we desperately need leaders we
desperately need this our country has
gone through this in a major major way
and because America is such a leading
force in the world we do everything
first like we succeed big first and we
fail big first and so if America can get
this right then we will lead others to
do the same thing because they’re not
far behind we’re just the first one to
go through that such a major way because
that’s what we do you know we’re the
crazy pigheaded ones that do everything
first so I’m listening to your
discussion I’m trying to get beyond the
idea of profitability as the watch is
that’s just the way my mind is
programmed so if you look at nonprofit
like a charity organizations if you’re
like Avon you raise money for breast
cancer and you’re Susan komen and you’re
greatly depressed answer how do you sell
you or why that’s more important
take money for essentially something
that’s
that money is going to the same thing
like buy toothpaste why is one better
than the other how do you sell that fine
I mean again it’s not matter these Mac
versus PC one is not better than the
other either believe in this one give me
the map you know not for profits I hate
the term fun of course there is a
problem the profit isn’t money profit is
when the in is bigger than the out right
where we’re saving more people who have
cancer that people are dying with cancer
that’s the measurement and you damn well
better be profitable except the metric
is no longer money of course you’re for
problems right it’s little bit and by
calling it not for profit you demonize
this thing and yet they spend 80% of
their time and energy trying to raise it
right so it’s not about better or worse
that’s which one do I feel emotionally
connected to and usually we’re drawn to
the one where we have some sort of
personal connection you know my mother
has MS so my family is very involved in
the MS Society right priority would that
diagnosis we were in a cold at all Amen
society right thought that I didn’t care
it’s just I have no personal connection
to those are locating those things
obviously but now the question is how
well they articulate why they do what
they do and why it was important than to
start yet another charity that raises
money for seemingly the same thing is
exactly the same right which is we want
to get involved with these charitable
organizations not because of what they
do but look at least and and because
giving money and being a part of those
associations say something about Who I
am not about what they’re doing right so
they’re the the thing that sort of the
balance of these things is is not for
profits or charity organizations are
really good at the cause stuff but not
so good at the structures right
the commercial world really good at the
structure world stuff not so good at the
clothes no and it’s not better or worse
at right around dualities that vote
should look a little funny tougher there
causes one more solutely if they
understood the structure stuff better
and didn’t think of this is dirty right
and those guys would build organizations
that were more profitable amount of
greater loyalty and we’re more
innovative they could learn a little bit
more about this social
Causey stuff right because great
organizations stand for something so
again these things aren’t comparisons
about what you do what you do which
one’s better it’s what you stand for and
and do I want to be a part of what
you’re doing do I want to volunteer to
follow you because of the world that you
articulated and we can’t just default to
a world without cancer I got that right
if everybody was successful all the
cancer organizations that maybe you’re
right but what’s your specific
contribution that’s interesting to them
and a lot of charity organization
you know does a great job charity water
and the reason they do a great job it’s
not just because they’ve got the cost of
the thing that I love about them if you
give to them right they have this new
thing where you donate your birthday get
about this so if you turn 34 this year
and you donate your birthday what you
did you send out an email to all your
friends and say instead of giving me a
birthday present I want you to donate
$34 to charity more it takes you know
whatever $5,000 the builds well I don’t
know right so sounds all fine and good
in today’s money but here’s where
they’re really right they will send you
an email with a photograph of the actual
well that your birthday built right with
your name on the actual well at your
birthday bill so what most charities
don’t do is they wrote they’re heavy and
why but they never show that the actual
specific tangible results of the
if we give into it we give into the
vacuum and they give us statistics fifty
percent goes right towards the cause and
not it you know but there’s nothing
tangible with business we’ve seen the
tangible stuff what but it’s not
associated
so so so I don’t distinctly well how you
measure your profit a money metric or do
good metric I don’t care every
organization should be profitable every
people organization crystal clear why
they do what they do
discipline and how they do it
inconsistent and what they do and
they’ll find themselves vastly more
successful to have a passive greater
entitled world regardless of what they choose
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