Friday, October 16, 2009

Ask The Right Questions? Challenge All The Answers!


Think of a target with “Why” as the bull’s-eye, “How” as the middle ring and “What” as the outer. Now describe “What” your company does — it should be easy. Then describe “How” it does its “What” — this should be a bit harder. Now for the difficult part — describe the “Why” behind its “How” and “What.” Money/profit is not the answer.

We put the world in your hands with all the right tools. These resources will prove vital to fulfilling your business goals. “When an organization defines itself by what it does, that’s all it will ever be able to do.”

Example: Apple Inc. started with a “Why” — to improve lifestyle by making innovative, technology-based products. While its first product was a computer, look at Apple now — music, phone, touch screens, podcasts, e-books, etc. In contrast, Dell started with a product — a “What.” Dell remains a computer company.

Another message: Every few pages, Sinek states “People don’t buy what you do, they buy why you do it.” This reminds readers that consumer decisions based upon a firm’s “Why” are literally no-brainers. With a why-based focus, consumers create an emotional (i.e. heart) affinity for a firm’s products. The buying rationale (i.e. mind) of price, features, quality, specs and service are used to determine which of the firm’s products to buy. Heart-driven purchasers are brand loyal and the company can hold its gross margins and up-sell. Mind-driven buyers switch brands frequently as their decisions focus primarily on price. When a company has to compete on price, its gross margins erode.

A takeaway: Executives stating they are “refocusing on their core business” run “What-based” companies. Refocusing on “What” rarely results in product innovation.

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