Re:Focus

What The U.S. Special Forces Know That You Should Also

Somewhere a True Believer is training to kill you.  He is training with minimum food or water, in austere conditions.  He doesn’t worry about what workout to do – his rucksack weighs what it weighs and he runs until the enemy stops chasing him.  The True Believer doesn’t care “how hard it is”; he knows he either wins or he dies.  He doesn’t go home at 1700; he is home. He knows only the cause.

  Now, who wants to quit?   

These are  the words that hang on a nondescript door, in a nondescript hallway, in a nondescript building on a military base somewhere in the United States.  There is a small plaque next to the door with a room number embossed and the word: SOCom – military speak for Special Operations Command.   What the leadership of SOCom understands so well is that belief is more powerful than resources. Devotion is more potent than technology. And “the cause” is what inspires people to take extraordinary risks or suffer awful conditions for no other reason than to advance the cause.  

Business is no different. 

Apple, Southwest, Disney, Harley-Davidson, Container Store and the handful of other companies that seem to have mystical powers and unbalanced success all have something in common.  They are defined by their cause, not their products or technology. More importantly, they only want to hire “True Believers,” those who believe what they believe.  And for good reason. People who believe what you believe will work for you with blood and sweat and tears.  People who don’t believe what you believe work for your money. Customers who believe what you believe will pay you a premium, suffer inconvenience and give you a lifetime of loyalty.  Customers who don’t believe what you believe will demand that you offer them a cheaper price and even if you do, they’ll still never be satisfied.

A company of True Believers will always frustrate the competition, regardless of how well resourced the competition is.  Apple frustrates Microsoft.  Lexus frustrates GM. Google frustrates pretty much everyone.  And Obama’s grassroots $5 and $10 fund raising frustrated both the Clinton and McCain campaigns.

Being flush with resources does not guarantee success.  In fact, it seems the better resourced an organization is, the more its people seem to stop caring about the cause.  They become more concerned with how many hours they’ve worked, the size of their offices and the benefits they will get.  The huge advantage companies with a cause have over even much bigger competitors is that everyone who comes to work is there for the same reason - to be a part of something bigger than themselves. They have no resources.  They have no expense accounts.  They play the hand they are dealt and they will fight on for no other reason than because they believe. 

People who go to work to be a part of the cause don’t go home.  They are home.

Now - who wants to quit?

Do You Want To Be A Leading Company or A Leader?

There's a difference between being a leading company and a leader.  Leading companies sell more than everyone else.  Those who lead set the direction for the rest of the industry.  Here's what it takes to be a company that leads.

Visit msnbc.com for Breaking News, World News, and News about the Economy

To read more about what it takes to lead, read Start With Why.

And to be one who leads, give your copy away to someone you want to inspire...

Start With Why

Read an excerpt - http://bit.ly/L26zk

Twitter - @simonsinek

Which Way Is Your Monkey?

Too many companies are organized like a tree of monkeys. Everyone at the top, looking down, sees only smiles. But everyone at the bottom, looking up, sees only asses.

Self-serving leaders are keen to climb up the tree. Their careers may do well, but they are not leaders. The higher they go up the tree, the more people who can see that they are just another ass trying to make their way up the tree.

The servant leader faces down the tree. They concern themselves with getting more of the people looking up to see a smile - to see something good.  To inspire them. People would rather follow the smile than the ass. 

The good news is that the servant leader's career still does well.  Though those at the top of the tree may see something somewhat disagreeable, the smiles beneath that servant leader, the loyalty they command and their ability to inspire, can not be ignored.  In fact, it is rewarded.

Being a downward facing monkey is the best strategy to avoid short-term pitfalls in a career and for a company. If you're a servant leader, all those beneath you, looking up, will tell you which branches to look out for.  No one is looking out of the self-serving monkey.  No one cares what happens to that ass.

Membership Had Its Privilages

Being a member of American Express (and “member” was indeed the term) used to mean something. To carry that green card with the Roman centurion in your wallet was a sign of success, a sign of independence, proof that you were going somewhere. But the brand built on the premise of “Membership has its privileges” seems to have forgotten its cause and become just another company selling credit-card services. In an attempt to capture all the market segments, to have something for everyone, AmEx has tarnished its brand.  And worse, it’s hurting its own business.

Anyone who has an American Express card knows that it’s not accepted everywhere—but we were okay with that. The occasional inconvenience was acceptable. As with any premium brand, there was a price to be paid because we wanted to be part of an elite group. We didn’t carry an AmEx card because of  universal acceptance, anyway; we carried it because it was a symbol of who we were.

But no more. What had once been an exclusive club has thrown wide its doors to admit everyone. Suddenly, membership doesn’t feel so special anymore. The entire concept of membership—the whole idea of premium—is that it’s exclusive. The physics of it are unavoidable: The more you appeal to the masses, the less exclusive you become, and the less value your premium possesses.

This degradation is no theoretical matter: With the loss of value inevitably comes the loss of business. Card carriers hear the phrase, “I’m sorry, we no longer accept American Express,” more frequently now than ever before. I understand a small business’s decision to stop accepting the card; the fees, they say, are too high. But for me, the real red flag started waving when my American Express card was denied at H&M. The clothing chain has 175 stores in the U.S. and 1,800 worldwide. Last year, the company rang up $14 billion in sales—and it no longer takes American Express.

Only a bit less disconcerting is to slide your AmEx card across the counter and be told by the cashier that the store “prefers” that you use Visa or MasterCard, if you have one. There was a day when “members” insisted on using their AmEx cards. We did this because the experience of using it meant something to us. These days, more people are all too happy to flip through their wallets and pluck out the alternate plastic, as requested.

And that’s a problem. When those who pay to be a member of a club—and once a year, the membership fee still pops up on their statements—no longer defend the club as though it were their own, it’s a sign that the brand is slipping. Almost every AmEx cardholder also carries Visa or MasterCard, but not all Visa or MasterCard holders carry American Express. In other words, AmEx holders have a choice—and they are becoming increasingly indifferent to that choice.

Consumers’ appreciation of their American Express membership has never had anything to do with points or air-miles. Those are tricks that lots of companies use to drive repeat business—but it’s not the same thing as loyalty. Loyalty is the willingness to pay a premium, or even to turn down a better product, in order to continue doing business with the same company. Like any couture label, the American Express’s centurion was a badge of honor, and a physical symbol of living the American Dream. “Privilege,” as AmEx should know, isn’t about perks—it’s a feeling you imbue in your loyal customers.

And what of the retailers? Retailers rarely have nice things to say about AmEx anymore. They complain that it takes AmEx forever to pay them. The retailers are just as much a constituency as the cardholder; they should be made to feel like members, too. When a company has a strong brand, its constituents either tolerate the inconveniences or rationalize them away. But when the brand is weak, the only thing people focus on is what’s wrong.  And it gets worse. AmEx used to be one of those stocks that people held onto for the long term. But it’s very different now.  Like its product, AmEx stock is becoming just another equity, and investors bail out at the slightest hint of a cloudy day.

It all boils down to a few essentials: Great companies are built on the backs of the loyal, not the masses. AmEx no longer has shareholders, it has share-squatters. AmEx no longer boasts members, it gets visitors. And retailers no longer want to be a part of a purportedly exclusive club when they can get all the same services at the YMCA. Serving the mass audience and the luxury audience is fine—but you can’t do it with the same brand. Honda has Acura. Toyota has Lexus. American Express needs another card. Call it, say, People’s Express. People’s Express can chase market segments and go head-to-head with MasterCard and Visa. Meanwhile, that proud centurion on the AmEx card needs to stand for something again.

Learn how to keep your membership exclusive.

Read a free chapter from Simon's new book Start With Why

Read Now - http://bit.ly/L26zk

Twitter - @simonsinek

Article originally featured in BrandWeek.  

Who Cares About Customers?

One day, when you get old, would you like your family to support you or would you like them to care about you?

If you're family supports you, that means they will pay the bills for the old age home, call you the prescribed number of times and visit you on your birthday. But if they care about you, they will visit you more often and not on any set schedule. They will bring the grand kids over and make sure you get an extra helping of marshmallow sweet potatoes (your favorite) at Thanksgiving.

No one wants to be supported, we want to be cared for. So why are so many companies so proud of their "customer support?" You see it all the time on websites...the link in the upper corner that says simply, "support." To most that means giving you the ability to send an email with your question.  Support means answering your questions and acting in the prescribed manner.  But "care," that's an entirely different standard. Care is human...like the customers.

There is power in words - just as you plainly understood the difference when I asked you if you wanted to be supported or cared for when you get old, so too does that word impact the behavior of the people we hire to support...er...care for...our customers.  Firstly, the department itself is usually called, "customer support."  It should be called, "customer care."  We tell those who work in the department to offer "customer support."  We should be telling them to "care for our customers."

We, as customers, can always tell the difference too.  A customer support agent who has been told to offer "support" tends to follow a script.  They tend to be matter-of-fact about things. And even if the problem is not resolved to your satisfaction, they will actually tell you all the things they've done to help you and that there is nothing more they can do. That is, by all fair metrics, good support.

But customer care agents who have been told to take care of the customer, will talk to you differently.  They have more patience.  They will go out of their way or even ask one of their colleagues for help if they don't know the answer.  There is no script.  They don't need one.  If you hire someone who likes people and you tell them to take care of other people, there is no special training required...just special words to inspire them to do the right thing...to take care.

Do You Know Why?

  Why are some people and organizations more innovative, more influential, and more profitable than others? Why do some command greater loyalty from customers and employees alike? Even among the successful, why are so few able to repeat their successes over and over?

 People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers might have little in common, but they all started with why. Their natural ability to start with why enabled them to inspire those around them and to achieve remarkable things.

 Three and a half years ago I made a discovery. I discovered that all the most inspiring and successful leaders, regardless if they are individuals or organizations, regardless of their size or industry, all think, act, and communicate in the exact same way—and it’s the complete opposite of what everyone else does. I called this powerful idea The Golden Circle, and it provides a framework upon which organizations can be built, movements can be led, and people can be inspired. And it all starts with WHY.

Any organization can explain what it does; some can explain how they do it; but very few can clearly articulate why. WHY is not money or profit—those are always results. Why does your organization exist? Why does it do the things it does? Why do customers really buy from one company or another? Why are people loyal to some leaders, but not others?

Start With Why is a book for those who want to learn to inspire others and for those who want to find someone to inspire them.  Start with Why is available now at your favorite book seller.

Special Promotion: Buy two copies, give one away and we can inspire even more people...

When The Two Parties In A Two Party System Don't Know Why They Exist

Republicans are completely befuddled by Obama’s “star power” and don’t seem to have a clear or effective strategy to compete. Though they are able to coordinate their messages better than Democrats, absent a leader who can clearly articulate a Republican vision for America, the only thing they can do is attack, attack, attack.

Democrats have a leader who defies all the political odds. Obama became president with little experience, he’s making headway reforming health care, and won a Noble Peace Prize which, even he admits, he probably didn’t deserve. But as a party, they bicker, they can’t coordinate messages and they seem more obsessed with “setting the record straight” than advancing their vision for America. Absent the ability to focus, the best they can muster is defend, defend, defend (and sometimes, maybe, if it’s not too harsh – attack).

Leadership is not derived from having the loudest voice or the biggest base.  Leadership isn’t about having all the answers or having all your i’s dotted and t’s crossed. Leadership doesn’t necessarily even come from simply having your name on the door. True leadership comes from inspiring people to focus on where they are going, not fighting against whatever is happening now.  This is what it means to offer a “vision for America.” This is what it means to inspire. 

Democrats are flummoxed by Republicans ability to stall or redirect progress. No matter the message Democrats develop, Republicans almost always come up with a better sound bite for the headlines. The Democrats response throughout the healthcare debate? Give the people more statistics.

Republicans are perplexed how Obama’s star shines so brightly. No matter how much they attack, Obama seems to keep moving forwards. Just this week, we learned the Senator Olympia Snowe (R-Maine) supported the health care bill in the finance committee. The Republican response? Attack Olympia Snowe.

But neither party does a good job of contextualizing why they have the opinions they do in the first place. Both care about America, both believe in upholding the values laid down by our forefathers. Both are deeply patriotic.  And both know why America exists – it’s all about life, liberty and the pursuit of happiness. The difference lies in how they think we should deliver on that American Dream. Though both parties know why America exists, neither party can tell you why they exist.

Republicans are the party of “I”. They believe the responsibility of government is to support those who pursue the American Dream – which is why their policies have historically favored the rich and businesses. Buried in the pages of their newly designed website, the RNC hints at why the Republican Party exists, “The Republican Party is inspired by the power of ingenuity of the individual to succeed through hard work, family support and self-discipline.” Instead of opening their website with their cause, with their Why, there is a video about how bad America is doing and how bad Obama is. It’ll make you angry, it may rally a crowd…but it’s not inspiring. It’s not leadership

Democrats are the party of “we.”  They believe the responsibility of government is to try to help everyone pursue the American Dream – which is why their policies have historically favored labor and the poor.  Buried in the pages of the DNC website they also hint at why the Democratic Party exists, “The Democratic Party is committed to keeping our nation safe and expanding opportunity for every American.” Instead of leading with their cause, with their Why, one of the first things is a section called “Call ‘em out” devoted to correcting the lies being spread by Republicans.

Instead of trying to plan the next attack strategy, it may benefit the Republican Party to try to understand why Obama's star shines so brightly. After all, it is this “star quality” that Republicans attribute to Obama’s winning the Nobel Peace prize last week – an observation that would be entirely correct. I understand why Republican leadership invests so much money and energy trying to dim his star, but the benefit to trying to understand it and even learn how to turn up the wattage of one of your own is not only better for the Republican Party, it’s better for the country. A strategy of attack, attack, attack – from either party – inhibits progress and divides us as a nation. 

Though he's not always perfect at expressing it, Obama has a vision for America, one born out of optimism, that comes out whenever he gives big speeches. Sadly, that’s the only time it does. He believes that any people, no matter how divergent their differences, can always find common ground to advance a common cause. He believes America can work together to mend its economy. “Yes we can.” He believes that America can come together to reform healthcare. “Yes we can.” He believes the nations of the world can come together to find common understanding. “Yes we can.” And it is his optimism in this belief that inspires and gives him his star quality. Democrats need to focus around Obama’s vision and focus their message and energy on drafting legislation that will breath life into the vision.

Republicans don’t need to look to Obama to learn how to make a star. Go back and study Ronald Reagan – a visionary leader who confounded Democrats at the time with his own star quality. Reagan spoke about “morning in America” – he oozed an optimism for what America could be. Reagan had an undying belief that each American has the ability to make their own lives better if they put our minds to it. In stark contrast, the modern Republican Party defines itself by what it’s not rather than what it is.  Republicans need an optimistic leader who can present an alternative vision for America’s future instead of just rallying against Obama’s vision of it.

The way the two party system is supposed to work is that both parties present their vision for America and then the people will choose which they believe best suits them based on the challenges they face at the times.  Sometimes we want to celebrate the ingenuity of the individual – like in the booming ‘80s and sometimes we feel the need to band together and work to support those who can’t support themselves – like in times of war, economic crisis and when the social security and health care systems are ailing.

I’ve studied great leaders and great organizations, those with the ability to inspire. And they all have something in common. Regardless of their party or their politics, unrelated to their business or their industry – they all think, act and communicate the exact same way, and it’s the complete opposite to everyone else.  In all cases, the “stars” clearly communicate an optimistic vision of the future, they tell us why they do what they do. It is so clear that the rest of us know why they do what they do also, even if we disagree with the specifics of how they aim to do it. When there is clarity of Why, those who believe the same will take it upon themselves to join the cause. A following, by its definition, are those who share a common set of values and beliefs. This is the reason great leaders command a loyal following.

Democrats have a leader with a vision, but lack focus. Republicans are focused but lack a leader with a vision. Perhaps, in a day-and-age when both parties can only point at each other and define themselves as “not that,” we need a president who can find their common ground. Yes he can.

To learn more about how great leaders lead, read Simon's new book Start With Why: How great leaders inspire everyone to take action, available for pre-order now and on shelves Oct 29th.

This post originally appeared on the HuffingtonPost

Read more at: http://www.huffingtonpost.com/simon-sinek/when-the-two-parties-of-a_b_321568.html

When Your Why Is Clear...Everyone Knows It

I am often asked "how do people know when your WHY is clear?" The wonderful thing about a WHY is when it's clear, you know it...and so does everyone else. Sounds suspicious right? What you just read is a manifesto, a statement of belief, from the home page of a company called Yoga To The People. Do you know what they believe?

Even if you've never been to there, you probably have a very clear idea of what the experience would be like? It might not surprise you that they charge $7 for a class...or that on same days, the cost is just a donation.  Their goal is to get back to the essence of yoga - to relax. As they say, "Yoga is meant to help strengthen and stretch your arms and legs, not cost you one!"

This manifesto is a statement of WHY they exist.  WHY they do what they do. What they believe wasn't buried deep in some "about us" page - it was right on the home page. Because Yoga To The People starts with WHY, anyone who comes to their site knows exactly how they see the world and already has some level of expectation of what their products and services will be like. And they didn't have to read a single brochure.

When people believe what you believe, it piques their interest to either learn more or  buy from you without much "selling" required. If people don't believe what you believe, they will either turn away or do business with you anyway because you meet some other requirements. In other words, you won't lose those customers, but you will gain some very special, high quality ones.  Start with what you believe, start with WHY, and you can instantly filter and attract the customers most likely to be loyal.

Surf around the web, look at some other companies and you'll quickly see websites with home pages filled with details, prices, facts, photos - everything to "attract" new customers.  But none of it really does. And of course, your IT professional will tell you the importance of filling your homepage with more instead of less.  All that does is attract more people but it doesn't inspire them to do business with you.

The best part is, if you have the discipline to start with WHY and if someone believes what you believe, even if they don't buy your product, they may talk about you to their friends...or blog about you.  And that blog may attract more new customers than the one you think you lost.

p.s. let me know if you visit their studio because of this blog. 

TED Talk - Simon Speaking at a TEDx Conference in Seattle

We make assumptions about the world.  More importantly, our behaviors are often governed by those assumptions. But what if our assumptions are incomplete or wrong? This doesn't necessarily only apply to things when they go wrong...what about when they go right? Do you know why things go right? Most people would say yes - but then why is it so hard to repeat great success?  If we know why Apple is so innovative, for example, why can't anyone else do it? Don't you want to know WHY?

This is what I talked about when I had the honor of speaking at a TEDx event in Seattle this year. It was such a privilege to share the stage with some remarkable and inspiring people. Ed Visteurs, the only American to scale the 14 highest peaks in the world without oxygen, and Erik Lindbergh, Charles Lindbergh's grandson and an amazing human being in his own right, to name but two. (Click here for other TEDx talks).

The vision is that everyone knows WHY. To learn more about why you do what you do, check out Simon's new book, Start With Why. If you order a copy, order two and give one away to someone you want to inspire. The goal is to share the WHY with as many people as possible.

If You Want To Rally People, Don't Bore Them With Facts

Leadership is only part vision. The other part is the ability to communicate that vision. President Obama is failing to lead America into a new era of healthcare reform not for lack of vision, but because he's not talking about it properly. Worse, he's starting to sound like "just another Democrat."

Too many Democratic politicians suffer from an under-diagnosed and often incurable affliction - Democrats Disease; that insatiable need to always want to "correct the facts" and "set the record straight." Democrats often seem more concerned with being technically right than advancing their cause. Though it is important to have all your t's crossed and i's dotted, the facts never inspire people to rally for a cause...which is exactly what the President needs America to do.

What inspires people to raise their hands to volunteer to make change happen is the feeling of being a part of something larger than any individual. A noble cause. What's more, that noble cause must be stated in terms that people can relate to - i.e. themselves. Ronald Reagan, a great communicator, understood this better than most. He was the first president to invite a "hero" to sit in the balcony during the State of the Union address to personify the benefits of a policy - a tradition that has continued in every single State of the Union since.

In his recent speech to a joint session of Congress, Obama started to make his case for national health care reform by laying out some numbers. "We are the only democracy," he implored, "the only advanced democracy on Earth -- the only wealthy nation -- that allows such hardship for millions of its people. There are now more than 30 million American citizens who cannot get coverage. In just a two-year period, one in every three Americans goes without health care coverage at some point. And every day, 14,000 Americans lose their coverage. In other words, it can happen to anyone."

Though I appreciate that he is trying to tell Americans that we need to do this because it could happen to you, unfortunately, all those big numbers get in the way of the message. What most people actually heard was, "you have to be responsible for giving insurance to 30 million people." No wonder there is so much animosity to such an idea - it sounds big, expensive and nearly impossible.

More important than the number of people without insurance or what the statistics might prove, is the answer to the question why? Why should I bother? Charity and goodwill on a massive scale are not good enough reasons to take the risky journey into the unknown. This cause can only be championed with relevant, human language not statistical reasons to act.
Obama defended the fuzzy (and dare I say socialist sounding) language of a "public option" by saying that fewer than 5% of people would need it. If that is the case, then he should have used language that communicated why we need a public option in the first place. Call it, "assistance for extreme cases," for example. Without any statistics, this revised language clearly communicates that such a system would not be a financial burden on the general population. Facts and stats should only ever be used to reinforce a message not define it.

The President has a clear vision of what American could look like if his plans are enacted. The irony is that he has had to spend too much time to set the facts straight because he wasted so much time making a rational case for "national health care reform," instead of rallying the country to look forwards and find a way "to provide a doctor for every child." Clear, simple language that explains why this matters to America.

This article originally appeared in the Huffington Post

How To Become A Legend

Usain Bolt knows why he needs to win races and shatter records. Though money and fame are nice additions, what drives him is something much, much bigger. It's even bigger than winning each individual race.

The 23-year old, gold-shoe wearing Jamaican track star became a household name after he shattered multiple world records at the 2008 Beijing Olympics. When asked what his secret is, he replies with surprising humility, "my secret's just hard work and dedication." Great advice, for sure, but it takes more than just hard work to become such a dominating force in sports...or in anything, for that matter. It takes a sense of purpose so big, it's  hard to measure. It may even sound like fantasy. And for Usain Bolt, he wakes up everyday to, as he puts it,  "become a legend."

It is this sense of purpose, the sense of WHY Bolt works as hard as he does that makes such a difference. Whereas other competitors train for a race or for an event, Bolt trains for something that he may not fully appreciate in his lifetime, because inherent in legend-status, is that it will outlive him.

Though each race he wins and each record he breaks matter, they are not the end goals. They represent the milestones he needs to pass to achieve his very big dream.

In our careers and in our businesses we often limit our ability to succeed because we set goals with relatively short time lines.  We work hard to achieve these goals, then set new goals the following year. But quarterly or annual goals are just too short. How many people or organizations are planning to achieve something that will be fully realized after they die?

A strategy of setting a goal, reaching it and working to achieve the next goal does not inherently prevent progress or success, but it limits the ability to make massive leaps. It also begs the question, why are those short-term goals important? "To be successful" or "to grow a business" are insufficient as answers. Everyone who races against Bolt is running to win races, but few, if any, are running to become legends.

Quarterly or annual goals should not be the goals, they should serve to mark the measurable progress we make on our way to something much grander.  The Wright brothers didn't set out to simply make a flying machine, they set out to change the world.  Steve Jobs didn't just want to build a successful computer company, he set out to, as he put it, "make a dent in the universe." That ability to see beyond the year, to see beyond the money and the profit, to see how the world will change because of what you achieve, is what makes legends.

Consider this analogy: If your goal is to drive 350 miles in one day, you may achieve your goal, you may even drive a little further. You'll be elated that you reached your goal or surpassed it.  Your victory may even encourage you to attempt to drive 400 miles the next day. But to become a legend, you need a lofty, almost unrealistic and quite bombastic vision of the final destination...not just one of the way points.  It's not about getting 350 miles in a day, it's about seeing yourself laying on the beach on an island in the South Pacific. In one single swoop, you see the 350-mile achievement as small and slow. You are instantly able  to see opportunities that others miss.  Where others see the need to drive faster, you see the need to jump on an airplane.

Usain Bolt doesn't run each race because he wants to win. He wins each race because he wants something so much grander. And it is this ability, to understand why each race matters towards achieving the grand plan, that he will indeed become a legend.

Click here to download a PDF of this article

There Are No Mergers, There Are Only Collisions

50% of all corporate mergers completely fail. 

An additional 25% never achieve the ROI that was promised.  

That means 75% of mergers weren't worth it.  Can you imagine walking into a CEO's office and saying, "I've got a great deal, it's got a 75% chance of failure."  You'd be laughed out of the room. Yet CEOs initiate mergers and acquisitions all the time. And when their mergers fail, the first line of the article in the Wall Street Journal is always the same, "the two cultures didn't mix."

Months and months and often millions of dollars are spent combing through the books to see if all is in order, yet what CEOs forget is that companies are nothing more than structures...and those structures are filled with people.  What makes two companies fit well together is not their product lines - it's how their people get along. Sadly, this little detail is often completely ignored. 

Just because there is "synergy" (the rationale so often used to justify so many mergers in the first place) between product lines or marketplaces, doesn't guarantee any success.  That one company makes ink and another makes rubber stamps, for example, means little when it comes to two entirely different corporate cultures needing to play nice together. Unless the plan is to fire everyone from one company and completely rehire for all the new job openings with employees who fit one of the cultures, more diligence should should be spent evaluating the cultural fit before the collision...er...merger takes place.

The great irony is that the single biggest factor that contributes to the majority of merger debacles is amazingly simple to evaluate.  It costs neither millions of dollars nor countless of months to evaluate a corporate culture.  It takes about a day per company.  One day.

It begs the question, then, why is something so important and so crucial to the success of a merger so often completely ignored until it's too late?

The answer is uncomfortably simple: you can't see the culture. The product lines, the market opportunities, the balance sheets are all things that can be easily seen, and easily evaluated and tabulated.  The culture is not. A strong culture exists when all the employees within an organization share the same values and beliefs.  We can tell a company has a strong culture, not because we read it on a balance sheet, but because we can feel it when we walk the halls. There is an obvious camaraderie among the employees and a genuine desire to do good by the company.  In contrast, when we walk the halls of companies with a weak culture we feel cold...or worse, we feel nothing at all. People in a bad culture are more motivated by self-gain than by a desire to see their company...and their colleagues...do well. When we feel a strong culture, we sometimes wish we worked there.

The best part is, if you try to have this discussion with so many of the CEOs who initiated the mergers in the first place, they'll tell you that what you're talking about is fluff. But if that fluff is important enough to avoid a 75% chance of a collision, then maybe it's worth buying that model with the anti-lock brakes after all. 

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Why People With A Sense of Humor Love Southwest

As for companies who aspire to be loved as much as Southwest, the trick is to know what your personality is first and then hire people who represent it.  Don't just hire anyone, no matter how great their resume and try to force them to be something they are not. Herb Kelleher, Southwest's founder and former president, said, "you shouldn't  hire people for their skills you should hire them for their attitude, you can always teach them the skills later."  The problem is which attitude? It has to be the attitude that fits your company. When your employees belong in your company, when they fit your culture, then their ability to properly represent you will come naturally.

If You Want Your People To Perform, Don't Give Them Permission...Give Them Intent

David Marquet graduated at the top of his class from the Naval Academy.  After serving aboard submarines in the Atlantic and the Pacific, Captain Marquet finally earned something many officers dream of - his own command.  Marquet was handed the keys to one of the finest boats in America's fleet - the fast attack submarine, USS Santa Fe.  Stationed at Pearl Harbor, Hawaii, this was a great honor indeed. But there was a catch.  The crew Marquet inherited was the lowest performing crew in the US submarine fleet.

But it didn't stay that way.

In just a short period of time, things turned around.  A lot.  Very quickly Captain Marquet's submarine became the highest performing crew in the fleet.  Scoring the highest marks in a number of metrics, Marquet's crew went on to win a number of distinguished awards.

 All to often, those in leadership positions too quickly blame poor performance on the people around them.  That may be the true in some cases, but more likely than not, it's the leadership that failed to produce results.  In the case of Capt. Marquet, it was all about the leadership.  And what Marquet did was change the culture aboard his boat from one of permission to one of intent.

The Navy is a permission based culture.  Before a sailor performs any act he asks for permission.  For example, "permission to dive to 400 feet."  To which the captain will reply, "permission granted"  And the sailor will acknowledge the permission and perform the task, "Aye sir, diving to 400 feet."

Marquet completely did away with this.

Aboard his boat, his sailors didn't ask permission, they announced their intentions. "I intend to dive to 400 feet, sir."  The captain was still in charge and could still affirm or deny the intention.  The task was the same.  Everything that happened, in fact, was the same.  Except aboard Marquet's boat, every action was owned by the person performing the action.  He built in accountability.  And not in the traditional sense of setting a goal and a metric and making someone responsible for achieving that goal, but in a deeper, more personal sense.  The crew aboard the Santa Fe weren't just accountable for the results, they were accountable for their actions.

We don't think of businesses as permission based cultures, but they are.  Pay close attention how people talk to each other in status meetings or when they talk to their boss.  "What do you think we should do?"  Is a common question.  "Can I...?"  "Should I...?"  "What if I...." very often precede a thought someone has.  What if companies required all employees to announce their intention instead of passively asking permission?  Imagine a status meeting in which every person at the table explains their intentions not their plans.   "I intend to call this client to apologize for over charging them."  "I intend to get the website built by the end of the week."

Nothing at the superficial level changes.  The boss is still in charge.  The tasks are the same.  But everything changes in how people feel about their jobs.  With intent, psychologically every member of the team puts some proverbial skin in the game.  They are not just accountable to some arbitrary metric, they become accountable to themselves.  An employees ability to perform is now on their shoulders. 

Intend to try this and see what happens.  The effects are felt immediately.  And the results are profound.  David Marquet proved it.  With the same people, the same resources and the same tools, simply by allowing people to have intent instead of permission, you can completely turn the boat around.

How To Live Forever

Randy Pausch, the inspired and inspiring Carnegie-Melon professor, died yesterday of pancreatic cancer.

For those who haven't seen his last lecture - Live Your Childhood Dreams - please do watch it at some point in your life.

His words and his optimism continue to touch me whenever I hear them.  May we all be so lucky to live a life even half as full as his even if we get the chance to live doubly as long.

What's most special about him, something I'm not even sure he expected, is that he will live forever.

Success Is A Team Sport

Most people compete to beat others.  This is true in businesses and for individuals.  And as valuable as a competitive spirit may be, perhaps there is a better way.

This is a video about Ben Comen that ESPN produced about 4 years ago.

Ben inspires. 

His lesson is more valuable than perseverance. His lesson is more important that never quitting.

Ben shows us, that when you decide to compete against others, no one will help you.  But when you decide to compete against yourself...everyone will help you.  Ben proves that success is a team sport.

Learn The Power of Why

There is not a single company that makes something your customers can’t buy from someone else for about the same price, about the same quality, about the same features and about the same service.  If that’s true, then why are your customers your customers?  And if you don’t know why your customers are your customers, how do you know what to do to attract more of them?

I will be giving a 4 hour workshop on The Golden Circle and the Power of Why at  Columbia University. The Golden Circle is a simple idea, based on the biology of how customers make choices.  Learn exactly why your customers buy from you and how you can adjust the way you think, act and communicate to attract more and more loyal customers.

These are the exact same ideas I have shared with entrepreneurs around the globe, FORTUNE 50 companies, Members of the United States Congress, ambassadors, leaders of US Air Force, government and executives in all sorts of industries. 

The event is free and all are welcome to attend.

When: Saturday, May 3rd

Time: 10am-2pm

Where: Columbia University, NYC

Lunch will be served.

Click on the logo above to register.

 

Are You A Leader or Just Ambitious?

There is a difference between ambition and leadership.

This might explain why too many recent Presidential elections boiled down to the lesser of two evils. It may contribute to why Congressional approvals are so low. It factors into why too many CEOs of public companies across the country are either landing in jail or strapping on golden parachutes as they jump from the companies they set ablaze. This difference definitely contributes to why there are no clear leading candidate in the Democratic or Republican primaries. The result of this difference, sadly, leaves "we the people" more cynical than optimistic about the world we live in.

Put simply, America is desperately lacking truly inspiring leaders.

Those who seek power and influence in business or politics are fat with ambition but anorexicly slim with leadership. This has nothing to do with their desires to do good. I do not question their intentions to want to help, but the road to hell is paved with good intentions. All Presidential candidates intend to flight a clean fight; "no mud slinging" they all declare as they announce their candidacies. That is until the first pat smacks them clean in the face. Every candidate says how their campaign will be different and how they intend to reform the system. That is until they realize how the system is what pays for their good intentions. Even CEOs preach their desire to do right by their customers and employees...that is until their stock takes a hit and they brush aside the word of their loyal customers and employees and attune their ears to the fickle analyst community.

Our public offices and corporate boardrooms are rich with ambitious do-gooders but poor with leaders with the strength to ignore the noise that distracts from achieving their vision.

Ambition is the pursuit of power with the hope, once you get there, you can do something with it.

Leadership is having a vision of a better world and doing whatever it takes to achieve that vision, even if sometimes it means pursuing a position of power to help advance your vision more efficiently and effectively.

Leaders have the courage to be unpopular with those that disagree with them. The ambitious want to befriend as many people as possible.

Leaders say what they think.  The ambitious say what they think others want to hear.

Leaders have a vision of the future that inspires the masses. The ambitious have goals that motivate a few (though more can be "motivated" if they can afford it).

Optimistic there are more leaders among us -  somewhere - I issue two challenges.  Only the true leaders will pass these tests.

The first is for anyone who runs for public office. I dare you not to look at a single poll while you are running. Don't worry what some poll tells you to say, just tell us what you believe and we'll decide if we want to live in your vision of America. I dare you to ignore the pundits. And I dare you to fill your staffs with people committed to your vision, not just hired to win your election or run your office. To the party of Lincoln and the party of Roosevelt - your heroes didn't take the public temperature before stating what they thought. You don't have to either. Courage is all it takes.

The second is for leaders of public companies. I dare you not to report your earnings to Wall Street every quarter. There is no legal requirement to do so, so why do you do it? Every quarter, restate your vision and tell the analyst community the steps you are taking, the products you are introducing and the changes you are making to realize that vision. But don't report the numbers or make projections. And if you think I'm nuts - look no further than your own hero, Warren Buffet, he does not state quarterly earnings for Berkshire Hathaway because he doesn't have to nor does he want to. People buy shares in his vision and his leadership. Courage is all it takes.

 

Ambition Vs. Leadership originally appeared in The Huffington Post on January 28th, 2008.

Live Your Childhood Dreams

From time to time, I post an example of someone who lives their Why.  These people know their purpose or cause on the planet and everything they do, everything they say breathes life into that purpose.  The only word that can be used to describe these people is: beautiful.  They are beautiful people.  Their stories and their energy is nothing but inspiring.

The following video is of Randy Pausch.  Randy is beautiful.  A Professor from Carnegie Mellon, he is dying of pancreatic cancer and this is the video of the last lecture of his life.  On Sept 18th, 2007, he spoke on "Really Achieving Your Childhood Dreams," giving advice on how to live your Why.  It's wonderful.

The video is 76 minutes long...put aside the time and watch it.  It's worth it.
(and if you want to buy a DVD of it for $7 or download the transcript, you can do so at Dr. Pausch's site).

How To Be Authentic

"Authenticity" is the big buzz word in corporate and political America these days.  "Be authentic" is the advice that gurus and pundits offer from afar.  But just instructing someone to be authentic is not actionable.  If you walked into your CEOs office right now and told him to be more authentic, what would he do?  If a CEO walks into the head of marketing's office and charges, "make our marketing more authentic," what steps would the marketing executive take to make that happen?

The advice  of "be more authentic" is just not actionable.

The best example I can point to of what it means to be authentic is what happened to Hilary Clinton in New Hampshire.  Here is a strong woman who has spent at least a career, if not a lifetime, acting strong.  Being perceived as strong.  Her whole campaign is about being experienced and strong and qualified.  The problem with that as a strategy is that it's unreal.  No one is like that.  Robots maybe. 

It takes more courage to be to be human, to be "authentic," than to act strong. Only because of complete exhaustion did Hilary Clinton, for the first time in memory, publicly let down her guard, brush aside her act and show us that she has self-doubt, she has fears and is indeed human...and it made her beautiful.  She didn't come across as weak for welling-up when she expressed what she believed.  In fact it made her seem stronger.  The folly is, all her advisers who tell her to be authentic tried hard to suppress the clip.  To hide  it from the world.  The one time Hilary was authentic and they panicked (I'd love to know what their definition of authenticity is).

Democrat or Republican.  Hilary supporter or not, when you see this video, you can't help but like her just a little more.  And so did voters in New Hampshire.  That's because being authentic works.

Here's what it takes to be authentic:

Being authentic is not difficult, per se, it just takes a lot of self-confidence (and not the "act strong" kind).  It means you believe in everything you say and everything you do.  It means that you always speak the truth and act in accordance with your moral compass at all times to all people: to your friends, your colleagues, to the public and to your customers.  No "pitching."  No "selling."  No little white lies.  No fear of what others will think of you, your brand or your company.  No acting in a way that you think others will like you more.  Complete and total honesty.  Nothing more.

The truth is, few of us, as individuals or as companies, have the courage to be completely authentic all the time.  This is why authentic people and companies are so attractive to us and why they are so few in number.

Lesson to be learned: It takes more strength to be authentic than it does to act strong.  And the more authentic you can be, the more people will like you, the more they want to vote for you or buy your products...and the stronger you will be.

Great Service - Bad Product

Just a short addendum to the piece to my last posting "The best customer service is no customer service."

T-Mobile is much lauded in the press for their superior customer service.  They have made customer service a priority and deserve great credit for their improvements.  BUT...why do they need great customer service in the first place?

"All they've got is great customer service because their product sucks," says Julie.  A T-Mobile customer who did not read this blog nor did I talk to her about my opinions.  She's been on the phone with their "great customer service" because something went wrong...as she says, "something always goes wrong with them."

Again - I am a great believer in great customer service, but it's even better if your customers don't need it.

Earlier in Southwest Airlines life, a company heralded for their great service, they didn't have a customer service department.   They didn't need it.  They didn't get any complaints.  Someone in the office volunteered to answer the occasional letter of complaint that would  come in now and then.  The reason they didn't need it was simple - because their product was excellent.  Their front line service was so good, there was no need for staff to deal with things later.

I applaud T-Mobile for making strides in customer service, and I'd be even more impressed if they had to shrink the size of their customer service department because they couldn't keep everyone busy.

Harry Potter and iPhones Can Bring World Peace

If companies all had a clear sense of a purpose, cause or belief, the result could be world peace.  You think I'm joking.  I'm not.

There is no difference between customers or employees...they are both groups of people.  If you have a clear sense of what you believe, you will attract people who also believe the same thing.  They will take your cause and make it their own.  Some might choose to work for you, some might choose to buy your products, others might just be fans.   But it is the common belief system that earns companies like Apple, Southwest Airlines and Harley-Davidson the most loyal customers AND the most loyal employees.  They are all aligned. They all believe what the companies believe.   

Imagine what Steve Jobs believes.  Now imagine what someone who works for Apple believes.  Now imagine what Apple customers believe.  All the same right?  They are all comfortable with the idea of challenging the status quo, they all like the idea of "think different."  It's no accident creative people are drawn to the brand, it reflects their own beliefs about the world. 

It is because of this sense of being a part of a bigger cause that some people choose to stand in line for 14 hours to be one of the first to get an iPhone or the new Harry Potter book. 

I went to the Scholastic store last Friday to see what all the hubbub was about.  I'm not a Harry Potter fan, but it was amazing.  People of all ages were there.  Many were in costumes.  The line stretched over five city blocks!  I walked the whole line and the energy from front to back was energizing.  People had been waiting for hours and they were still happy.  They were standing in line for a whole day and they were genuinely happy.  I can't stand in line at the bank for 10 minutes without hating everyone around me.

Now, I'm not saying that companies need to have big product launches all the time, but if they have a strong sense of cause, that element of optimism and happiness will come with every product they sell.  Do you feel happy when you buy an HP computer?  Eh.  But do you feel happy when you buy a Mac?  Yup.

Companies need to clearly understand and state their true and honest belief in the world so they can include a free bit of happiness with every purchase. 

Who knows...sell enough products with free happiness enclosed and maybe that's enough to bring about world peace.