The Three “A’s” for Dealing with Conflict

Attacking. Abdicating. Accountability. 

When dealing with conflict there are only three ways in which you, or your reports, can respond. These are attacking, abdicating and being accountable.

  • Attacking – this is the first part of the “fight or flight” syndrome which we experience when we come across an uncomfortable situation. For example, we are in a meeting where someone has a differing opinion or idea.  We respond by becoming verbally violent and adopt an aggressive behavioral style.  Although this is a form of attack it is, in its essence, a defensive mechanism.  Hear our emotions control us, our ability to think objectively, to listen, to be creative and to consider alternatives is greatly reduced. This not only can lead to sub-optimal decisions, but we can alienate people and jeopardize relationships.
  • Abdicating – this is the “flight” aspect of the “fight or flight” syndrome.  Here we either withdraw from the discussion – this can be physical, mentally or emotionally – and we go to silence.  We don’t add our input or perspective to the general discussion and the collective pool of meaning and insights that the group can draw on is reduced.  Typically you will see passive-aggressive behavior being exhibited, where people only pay lip-service to what has been discussed or even actively sabotages what has been agreed in the meeting. Again, these results in sub-optimal decisions and the individual(s) who abdicate responsibility for the work or making a contribution will effectively undermine the team and his or her relationships with them.
  • Accountability – here the individual stands up and takes ownership of what is happening and the results and implications. To do this you must be open and willing to learn from others and to adapt a better solution no matter where it comes from. Accountability is about engaging yourself and others in a common purpose to achieve shared goals and outcomes. It requires you to let go of ego and to communicate and share ideas and insights, to collaborate, and to learn from each other.

There are only three responses available to you and your team – attack, abdicate or be accountable.  Most people know the first two and ignore the implications, but fail to adopt accountability as the default in order to realize the benefits.  Consider all the situations you are dealing with, at work and home, and ask yourself this: “What response I am currently adopting for this situation, and what response will provide the greatest benefits?  What three actions do I need to take to bridge the gap?” Ask yourself this, and then ask your team. Just exposing the third option of accountability will help people change how they respond to situations.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

How Starbucks Demonstrated Leadership During Hard Times

Millions of people and businesses have been impacted, directly or indirectly, by the recent stockmarket drops in China and elsewhere. It is a cause of concern with over $1 trillion being wiped from Asian markets recently, the Dow Jones Industrial Average being sent plunging, as well as in other markets.

Starbucks’ CEO Howard Schultz decided to do something about it. He proceeded to address some major concerns – not directly to customers, but rather, to his employees (these are known as “partners” in Starbucks parlance).

All 190,000 of them.

Here is the brief memo that appeared in the Washington Post.

To: Starbucks partners; managing directors for company-operated and joint venture markets
Date: August 24, 2015

Re: Message from Howard: Leading Through Turbulent Times

Dear Partners,

During our 23-year history as a public company, we have experienced–and successfully navigated through–several periods of extreme stock market volatility. And although we are not immune from the global stock market selloff that has now made its way to Wall Street, my confidence in our company and in all of you has never been greater. We are in the midst of another record-setting year – combining our unique “third place” in-store experience with highly relevant coffee and tea innovation and differentiated customer-facing mobile and digital technologies. We are making a profound social impact in the communities we serve around the world, and will continue to do so today and into the future.

Our company has weathered many different types of storms. But our brand has never been stronger or more relevant. Our pipeline of new products and breakthrough innovation has never been more robust. And our long term commitment to delivering an elevated partner experience is unwavering. I can assure you that we will continue to lead and manage the company through the lens of humanity, doing everything we possibly can to continue to make your families proud of our company and all we stand for. You have my word on this.

Today’s financial market volatility, combined with great political uncertainty both at home and abroad, will undoubtedly have an effect on consumer confidence and perhaps even our customers’ attitudes and behavior. Our customers are likely to experience an increased level of anxiety and concern. Please recognize this and–as you always have–remember that our success is not an entitlement, but something we need to earn, every day. Let’s be very sensitive to the pressures our customers may be feeling, and do everything we can to individually and collectively exceed their expectations.

Our growth plans for the future of our company will not be impacted by the turmoil of the financial markets. We will positively manage through today’s challenging environment just as we have positively navigated through challenging moments in the past. The experience we deliver in our stores, the strength and equity of our brand, and the primary reason for our current and future success is because of all of YOU. I believe in you and have never been prouder to be your partner.

Onward,
Howard

In this brief memo Shultz did a number of things:

  1. Expressed pride and confidence in the achievements of Starbucks and its employees (paragraph 1)
  2. Provided strong, unwavering leadership and personal commitment to all employees (paragraph 2)
  3. Encouraged employees to reach out and show special concern for customers , and that Starbucks earns success from its customers (paragraph 3)
  4. Reassured employees that Starbucks and its employees would weather the storm as it has weathered other storms previously, and that current future success is because of the employees (paragraph 4)

Shultz did this in just 382 words! Brief, concise and effective. If you were a Starbucks partner how would you feel reading this?

My question for you is this: what can you do for your employees and customers to provide them with the support, confidence and direction they need? How will you lead through turbulent times?

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

3 Steps for Overcoming Change

70% of all change initiatives changing, why is this and what can we as leaders do about it?

by Andrew Cooke, Growth & Profit Solutions

change resistanceIn business, as leaders and managers, one of the hardest things is to engage others in achieving the business’ goals.

One of the hardest things for leaders and managers to is engage people to willingly work to achieve the business’ goals.

Succeeding in doing this makes all the difference. For the employee, it’s the difference between being micromanaged and being self-motivated. For the organization it’s the difference between passive resistance and energized alignment. And for you, the leader, it’s the difference between frustrating exhaustion and inspired collaboration.

The job of a leader or manager is simple: to influence people. And there’s one defining idea we have in our heads that makes that job harder – we believe that people resist change.

So we do all sorts of things to counter that resistance. We try to motivate or coerce people to change.

But instead of breaking through resistance, we create it. People resist being controlled. And so 70% of all corporate change efforts fail.

Here’s what’s interesting: people freely choose to make major life changes every day. We move, get married, start families, face challenges, learn new technologies, change jobs, and develop new skills. Not all of these changes are smooth. But most of the time we seek those changes ourselves and make them successfully.

So why are people willing to change in one situation and resistant to it in another?

Because people don’t resist change, they resist being changed.

In their personal lives people usually make their own choices. But in organizations they feel coerced. And so they use the only power they have to regain control: resistance.

So how do we avoid or overcome the problem of resistance? The answer is simple – give them control. Let them make decisions. If you offer them two choices and they pick a third you have the opportunity to cede control to them as long as their choice achieves the outcome acceptable to you. Then they own their decision and are happy with it because they made it themselves.

The key is to make it real or you will lose credibility. You have to actually give them some control, while keeping some for yourself, because as a manager, you’re always accountable for the outcome.

So here are the three steps:

  1. Define the outcome you want.
  2. Suggest a path to achieve it.
  3. Allow people to reject your path as long as they choose an alternate route to the same outcome.

By ceding some control, and allowing people to make their own choices, they are motivated and take ownership for achieving the outcomes.  This enables them to actively embrace the change, creating an aligned future for both themselves and business.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

6 Ways to Use Money and Assets Effectively

Six ways to use money and assets effectively

When times are hard, and business is slower, harder to get, and less certain, many companies engage in slashing costs.  And they go for that which is most visible and easiest to slash first – the payroll.  However, reducing staff numbers incurs considerable expenses – you have to pay people out, you lose goodwill both with those who are let go and with those who survive the purge, and your capacity and capabilities are reduced – all at the time you need these things most!

An article of the same name by Tom Copeland appeared in the September/October 2000 issue of the Harvard Business Review.  This gives excellent ideas and insights into how companies can cut costs, without having to lay-off experienced staff with the attendant costs.

  • How is your capital budget spent? Often over 80% of most companies’ capital budgets are made up of small items that get rubber-stamped in the budget process. Much of this, is unnecessary gold-plating or even redundant because it merely duplicates spending elsewhere in the organization.

There is a great story about a telecom company that buried its cables at a depth of two meters. When asked why it was necessary to dig so deeply, managers replied that only at that depth would the cable be protected from a thermonuclear explosion. After reflecting on the bomb’s likely impact on customers, the company cut its cable depth to a meter, saving itself $80 million a year as a result.

  • Be frugal, not cheap – when looking at small-cost items you can save substantial amounts over time.  However, do not look to buy cheaply, you will often find this will cost more over time.
  • Is each piece of capital expenditure necessary?  You need to be clear here on what specific needs it will fill; the specific problems it will solve; and how much will it save in terms of resources, both hours and dollars?
  • Eliminate all redundant purchases. Within certain discretionary limits, many people are often authorized to purchase the same items. Look at how you can consolidate these purchases to eliminate duplications.
  • Determine precisely what the total cost is. Price is only one part of the total cost. By viewing your purchases as investments, and including the total costs of ownership for the lifetime of the assets, you can determine the ROI of each capital asset purchase.
  • Maximize the use of shared assets. Look at who is using these assets and how over time.  Where are the assets which are being underutilized or overutilized?  What are the options for handling assets in these areas?
  • Look at your capital expenditure.  Where and how are you spending your capital budget?  When answering these questions what are the potential savings you can make without having to lay off people? Can you cut costs without drawing blood?

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions,

How to Hire for Attitude, Not Just Aptitude

How attitude is a good predictor of prospective employee success, and how you can identify those with the right attitude for your business.

The top challenge for CEOs according to a survey from the Conference Board (January 2013) is Human Capital – the ability to develop and acquire the right people, with the right skills needed to take the business to the next level.  But skills alone are not enough.

“Hire for Attitude, Train for Aptitude”

This is an old mantra which, if ignored, can be costly.  Companies I have worked with have found that recruiting people with the right skills can be costly if they do not have the right ‘attitude’, where there is a lack of ‘fit’.  This is reflected in a study by Leadership IQ of over 20,000 new hires over 3 years which found that 46% of the people about to be hired will fail within the first 18 months on the job. And they won’t fail for lack of skills but rather for lack of attitude.

Top 5 Reasons for Why New Hires Failed

The following are the top areas of failure (i.e., were terminated, left under pressure, received disciplinary action or significantly negative performance reviews):

  • Coachability (26%): the lack of ability to accept and implement feedback from bosses, colleagues, customers and others.
  • Emotional Intelligence (23%): the lack of ability to understand and manage one’s own emotions, and accurately assess others’ emotions.
  • Motivation (17%): insufficient drive to achieve one’s full potential and excel in the job.
  • Temperament (15%): attitude and personality not suited to the particular job and work environment.
  • Technical Competence (11%): functional or technical skills required to do the job.

The key point from this is that when new hires fail, and 46% of them will, 89% of the time it’s because of attitude and only 11% of the time because of skill.

As such, the key predictor of a new hire’s success or failure is their attitude, not their skills.  As such we need to be clear on what attitude we are hiring for. To do this requires two steps:

  • Define the Specific Attitudes – what are the attitudes that make your business different from the rest.  This is both in terms of what is good (which you want) and what is bad (which you want to avoid).
  • Adapting the Hiring & Interviewing Process – you need to make sure that you focus on these attitudes, so adapt how you do this as appropriate.

How Do We Do This?

Define the Specific Attitudes

Attitudes in themselves are not visible or tangible.  Where they are made apparent is in people’s behaviors.  How people behave is an active display of their attitudes.  Their behavior should also be a reflection of the business’ core values which provides guidance to people in the business.  A good example of how the core values are made tangible, and the expected behavior (and hence attitudes) is shown below.

The US Marine Corp

The US Marine Corps has Core Values of Honor, Courage, and Commitment.  The concept of these core values runs throughout all aspects of Marine life, beginning in recruit training and continuing into combat. These “warrior ethos” provide guidance to Marines in difficult ethics situations and as a reminder to provide good order and discipline. These values are defined as:

  • Honor – integrity, responsibility and accountability.
  • Courage – do the right thing, in the right way, for the right reasons.
  • Commitment – devotion to the Corps and my fellow Marines.

Adapting the Hiring & Interviewing Process

Too often, when interviewing, we focus on prospective employees’ technical skills and competencies.  Why?  They are the easiest to assess but, as we have seen, they are a very poor predictor of the success or failure of a new employee.

When you look at jobs being advertised the experience, skills, and qualification that are detailed it can be seen that the business advertising the position has the expectation that a perfect candidate will apply.  This is about as far from reality as you can get.  Realistically, there is no ‘perfect candidate’ and, as such, there can only be attitudes that are right for your business – they will never be perfect.

Tests for Finding the ‘Right’ Attitudes

  • High Performers’ Test – what are the distinguishing attitudinal characteristics of your top performers.  List up to 10 responses that reflect your business.  For example:
    • They own the problem.
    • They always see problems as opportunities.
    • They are great listeners and communicators.
    • Etcetera.
  • Low Performers’ Test – what are the distinguishing attitudinal characteristics of your low performers.  List up to 10 responses that reflect your business.  These are not just the opposite of the attitudinal characteristics that make a high performer. For example:
    • They avoid responsibility and are quick to blame.
    • They focus on themselves rather than others.
    • They do the bare minimum work required.
    • Etcetera.

Once you’ve got your two lists, conduct a quick assessment to make sure every point is on target. This can be done by asking yourself the following two questions about each attitude listed:

  • How does this attitude add value or competitive advantage to this organization? (If the attitude brings no benefit to the organization, it doesn’t belong on the list).
  • Who cares about this attitude? (If the attitude doesn’t bring benefit to your customers, it doesn’t belong on the list)

Doing this provides insight into both what you want and what you don’t want in the terms of attitudes and the associated behaviors.  It then helps you to prepare for the interview by focusing on how they respond to questions around both these areas.  However, how the questions are phrased is just as important as what the question is.  You need to develop the question with the kind of response that you are looking for in mind.  But that is a separate article.

In summary, be clear on what values, attitudes and behaviors you want in your business, and which you want your new employees to exemplify in what they do and how they do it.  Get clarity by distinguishing the attitudinal characteristics of both your top and low performers – this helps you to identify what you want from a potential employee, and what you don’t want.  Around this then adapt your interview and hiring process to ask the kind of questions that will help you elicit answers which will help you determine the prospective employee’s values, attitudes, and behaviors.  Take this into account when you look at their technical skills, as it is their attitude that is a predictor of their skills – not their technical skills and competencies.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions,

How to Retain Future Talent

Keeping top young managers – your future talent pipeline – is hard.  Find out what they are looking for so you can retain them for longer.

You have spent a lot of time, effort, resources and money in getting the best young managers – but are you managing to retain them?Recent research shows that often they are thinking about the next step, even if they seem fully engaged.  Furthermore, it seems that employee-development programs aren’t delivering what is needed to make them want to stay.A survey cited  in HBR found that of young high achievers – 30 years old, on average and with strong academic records, degrees from elite institutions, and international internship experience – found the following:

  • 75% sent out résumés, contacted search firms, and interviewed for jobs at least once a year during their first employment stint;
  • Nearly 95% regularly engaged in related activities such as updating résumés and seeking information on prospective employers
  • On average, they left their companies after 28 months.

So why is this?

When surveyed (see below), the biggest discrepancies found are those that cost the resources and time – namely coaching and mentoring where the largest gaps.  The need for personalized development and support for the high achiever’s professional and personal ambitions are key – especially in the case of a competitive market for these skills, and where a lack of such skills are being cited as one of the biggest barriers to business growth.

The Career-development Gap

Young managers were asked, on a scale of 1 to 5, how important are these items to them and to what extent their employers provided them.

Source: Monika Hamori, Jie Cao, and Burak Koyuncu

Why is there this disconnect? Formal training is costly and can take employees off the job for short periods of time. Employers are understandably reluctant to make big investments in workers who might not stay long. But this creates a vicious circle: Companies won’t train workers because they might leave, and workers leave because they don’t get training. By offering promising young managers a more balanced menu of development opportunities, employers might boost their inclination to stick around.

The reality is if you train them you have better opportunity to retain them for longer.  If you don’t then they may move or, alternatively, they may “quit and stay” – becoming disengaged and impacting others with their negativity.

Business is about people first and foremost.  If people are truly your greatest assets, and you believe it, then you need to invest in them to help them produce a greater return.  Look at how you can help them help you by sourcing a customized approach to coaching, mentoring and developing their leadership, management, and commercial skills to grow your business

How do you develop and nurture your high achievers?  What has worked for you and what has not?

Share your ideas, insights, and experience!  Share the knowledge, share the wealth!

 

Share

 

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Managing the VUCA World – Part 1

When dealing with increased VUCA – volatility, uncertainty, complexity, and ambiguity – what can leaders do? and how can they manage this on an on-going basis?  Read on…

VUCA

Businesses are under increasing stress as markets are increasingly volatile, clients are more demanding, talent is scarcer and change occurs in faster and shorter cycles.  To survive and thrive business leaders have to make faster decisions, on less information, and which have greater risk.  This has led to a change in how leaders need to think, decide and execute.

As business leaders what can we do to address this in a sustainable and effective way?

A good model, that addresses the four areas of concern that business leaders need to deal with, is by using VUCA.  This consists of:VUCA Elements

1. Volatility – the rate, amount, and magnitude of change

Drastic, rapid shifts can bring about instability for organizations and leaders, but even the minor or innocuous shifts that occur daily, such as new and “immediate” priorities that disrupt plans, or the increasing need to “multi-task,” are changes that increase volatility.

 2. Uncertainty – the amount of unpredictability inherent in issues and events

Leaders can’t predict because they lack clarity about the challenges and their current and future outcomes. Uncertainty can result in an over-reliance on past experiences and yesterday’s solutions or to analysis paralysis as we sift through more and more data.

 3. Complexity – the amount of dependency and interac­tive effect of multiple factors and drivers

Complex interactivity requires leaders to think in more creative, innovative and non-linear way; to be able to deal with shades of gray (as opposed to black and white) solutions.

4. Ambiguity – the degree to which information, situa­tions, and events can be interpreted in multiple ways

Ambiguity increases doubt, slows decision-making, and results in missed opportunities (and threats). It re­quires that leaders think through and diagnose things from multiple perspectives.

 The Challenge for Leaders

For leaders, the challenge is not just a leadership challenge (what good leadership looks like), but it is a development challenge (the process of how to grow “bigger” minds) to deal with the world of VUCA.  Leaders, too often, have become experts on the “what” of leadership, but novices in the “how” of their own development.

So What Can We Do?

  1. Change the Leadership Mindset – we must help ourselves, and our tactical leaders from being easily get trapped by their predictive mindset when they encounter a VUCA situation by providing a robust sounding board, challenging their assumptions and beliefs, and helping them develop new perspectives, options, and ideas.
  2. Change the Leadership Approach – many leadership issues are not problems to be solved but rather dilemmas that must be continuously managed.  Helping leaders to understand this, and to manage the issues and create opportunities from this is key.
  3. VUCA is a neutral force in the world – leaders often look at Volatility, Uncertainty, Complexity, and Ambiguity as a negative force that they need to react to.  Rather, as leaders, we need to see the potential and to transform it proactively and find the opportunity within.
  4. Leaders Don’t Execute, leaders execute – Leaders too often get involved in driving the efforts themselves, leaders need to help them think more strategically and to unlock the potential of their people. By developing and supporting leaders (i.e. mid- or lower-management at lower levels we can execute at the right level, with the right people with the right skills.

So what are you going to do to address VUCA in your business or organization?

Visit the second part of this article, How to Manage Volatility, Uncertainty, Complexity and Ambiguity – Part 2, to discover the 4 ways for how leaders can deal with volatility, uncertainty, complexity and ambiguity.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

3 Steps for Improving Your Leadership Behaviour

If what you are doing isn’t getting what you want then you have two choices: you can either settle for that which you do not want or, secondly, change what you’re doing to change what you get. To do this you need to know what you want (and what you don’t want), and how you are going to change to effect this.

Think of a time when how you acted in or reacted to a situation was not your finest hour. You handled it poorly, and the result you got was not what you wanted. Worse, you allowed the situation to escalate.  We’ve all had occasion where this has happened. So why did we act as we did?  I am sure there are many reasons, good and bad. But knowing why you act in a certain way does not change your behavior. You would think that it would. It should. But it doesn’t. Knowing does not mean understanding, and understanding does not mean taking action.

The real question is how do you change your behavior and respond in a better way? There are three steps:

  1. Identify the problem
  2. State what needs to happen
  3. Offer to help

Use these steps for any problem you face with someone at work. For example one of your reports has mishandled the drafting of a report.  Normally, you would get angry and criticize her work. This does not help, nor does it build her confidence. Applying the three steps you can:

  1. Explain why and how the report has been drafted poorly.
  2. Clearly and explicitly explain what needs to happen, and coach them through what needs to happen. Do this by asking them what they think needs to be done, don’t tell them. Coaching them enables them to learn and not repeat their mistakes.
  3. Provide support and help to them, but don’t let them abdicate the work or responsibility back to you in doing so.

Making this change in your behavior is never easy. It doesn’t feel natural or ‘right’. It feels awkward.  This is natural and to be expected. Remember when you learned to ride a bike, it was difficult. Eventually, after sufficient practice, you mastered the new behavior of riding a bike and it has now become second nature.

So, to change your behavior, you need to practice and keep at it until it feels natural and ‘right’.  As a leader, you need to lead change, and to lead change you need to lead yourself, and to lead yourself you need to be willing and able to change your behavior.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Don’t Give Advice, Offer Experience

Leaders – Don’t Give Advice When Asked!

How executive coaching can help you in your business

by Andrew Cooke, Growth & Profit Solutions

Advice - at your own riskLeaders and managers often need to give feedback to their teams and staff. Usually it is in the form of advice rather than feedback. Why is this? Advice can be packaged more easily, especially when you are dealing with a sensitive situation and/or individual, rather than feedback which is often perceived as being more critical in its nature. So how can we improve.

The Pixar Story

Virtually everyone knows Pixar , the animation studio that made Toy Story, Finding Nemo, Cars, A Bug’s Life, and which grossed more than $6 billion, and has won 24 Academy Awards. Here is the question for you – how many flops has Pixar produced? The answer is none!

One reason for it is that within Pixar they give brutally honest feedback.

Brutally honest feedback

At Pixar, when a director hits a snag on a film, they immediately call in the “brain trust.” This is a group of brilliant senior filmmakers who come in, look at the film in progress and give brutally honest feedback for about two hours.

Normally this is an uncomfortable process and, at best, only partially effective. But it works for two reasons:

  1. No authority – the “brains trust” has no authority over the person to whom they are giving feedback. It is up to the recipient of the feedback to do something or not. As such they are not under any obligation to take the feedback, and because of that they often do.
  2. No advice – people do not tell others what to do, they don’t offer advice; they offer experience. As such the recipient can learn from others, and can choose what to do or not.

As such, the less authority and power you have the greater the influence you can bring to bear. And the lower the requirement to act on the experience shared, the more likely people are to do so. This creates the opportunity for learning, development and innovation. Counter-intuitive? Yes, but it works. Share your experience – but remember we don’t have to learn from it, but then we probably will!

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Starting With Your Purpose Wins!

What is the difference between an average leader and a great leader – the answer is WHY?

by  Andrew Cooke, Growth & Profit Solutions

In a TED presentation by Simon Sinek a key question was asked – “How can some companies achieve things that others do not, when they have access to the same talent, resources, markets etcetera?”

The answer is to this lies in a question.  Great leaders focus on the Why?, and not the What? they start from the inside and work outwards.  Let’s look at the picture below, the “Golden Circle”.

It explains why some leaders are able to inspire where others aren’t.

The “Golden Circle”

Golden Circle

Everybody knows “what” they do 100%. Some know how they do it. But very, very few people or organizations know WHY they do it.  The “Why” is the why you do it, why you get out of bed in the morning, and why people should care.  It is not about making a profit – that is a result, not the why.

If you are inspired you begin with the why in mind. Inspired organizations and people all think, act, and communicate from the inside out.

There is an important point here – people don’t buy what you do, they buy why you do it.

This reflects an important point about when people make decisions.  When a person makes any decision they always make an emotional decision, and then follow it up with a rationalisation.  As such emotion makes people act, and logic makes people think.

So if you lead with the ‘what’, you lead with information, features and benefits and facts and figures  it can drive understanding, but it doesn’t  drive behaviour.  To drive behaviour you lead with the ‘why’, you lead with emotion which attracts and stimulates people to make a decision.

But if you don’t’ know why you do what you do, then how will you ever get someone to buy into it, and be loyal, or want to be a part of what it is that you do.

Let’s look at how this ‘Golden Circle’ can be applied, using Apple as an example.

The Uninspiring – Outside-In Approach

WHAT: We make great computers

HOW: We make beautifully designed, easy to use and user friendly computers

WHY: Want to buy one?

This is uninspiring and it typical of what most businesses do.  We tell people what we do, how we are different and then expect some kind of desired behaviour to happen.

The Inspiring – Inside-Out Approach

WHY: Everything we do we believe in challenging the status quo, we believe in thinking differently.

HOW: The way that we challenge the status quo is that we design beautiful computers that simple to use and user-friendly.

WHAT: Want to buy one?

Here we have said the same things, we have just reversed the order – and you can feel the impact.

Ramifications for Leaders – Leading with ‘Why?’

As leaders,  the goal is not just to get people to buy that need what you have, but to believe what you believe. The goal is not just to hire people who need a job, but who believe what you believe. If you hire people who just need a job, they’ll work for your money. But if you hire people that believe what you believe, they’ll work for you with blood and sweat and tears.

Leaders are those who hold a position of power or authority. But being a leader is not a noun, its a verb – leading. Those who lead are those who inspire us. Whether within organizations, we follow those who lead, not because we have to, but because we want to. Not for them, but for ourselves.

And it’s those who start with why, who have the ability to inspire those around them or find others to inspire them.

Tell them why you do what you do

Don’t tell people what you do, tell them why you do what you do.

Let me give you an example using my business, Growth & Profit Solutions.

WHY: Why do I what I do?  I help people to grow, realise their potential and to enable them to do that for others!  I get up every day and work with people to realise their potential, to help them realise that of others and to create a virtuous cycle in doing so.

HOW: I partner with clients to design customised development programmes that develop the peoples’ skills and capabilities in helping them to grow and raise their performance, to share their learnings and experience with others in resolving challenges and capitalising on opportunities, and to bring passion into what they do.

WHAT: Would you like to make such a difference for yourself, for others, and for your company?

For me, the thought that what I do can positively affect people far over and beyond those who I work with – someone else I may never know, and even four, five or six times removed – is exciting, rewarding and deeply satisfying.

“Choose a job you love, and you will never have to work a day in your life (Confucius) – I am truly fortunate to be in this position, and even more fortunate because I can help other people to choose for themselves.

So the question here is not what do you, but why do you do what you do?

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.