WEBVTT 00:00:01.000 --> 00:00:03.000 How do you explain when 00:00:03.000 --> 00:00:05.000 things don't go as we assume? 00:00:05.000 --> 00:00:08.000 Or better, how do you explain 00:00:08.000 --> 00:00:10.000 when others are able to achieve things 00:00:10.000 --> 00:00:12.000 that seem to defy all of the assumptions? 00:00:12.000 --> 00:00:14.000 For example: 00:00:14.000 --> 00:00:16.000 Why is Apple so innovative? 00:00:16.000 --> 00:00:18.000 Year after year, after year, after year, 00:00:18.000 --> 00:00:21.000 they're more innovative than all their competition. 00:00:21.000 --> 00:00:23.000 And yet, they're just a computer company. 00:00:23.000 --> 00:00:25.000 They're just like everyone else. 00:00:25.000 --> 00:00:27.000 They have the same access to the same talent, 00:00:27.000 --> 00:00:30.000 the same agencies, the same consultants, the same media. 00:00:30.000 --> 00:00:32.000 Then why is it that they 00:00:32.000 --> 00:00:35.000 seem to have something different? 00:00:35.000 --> 00:00:37.000 Why is it that Martin Luther King 00:00:37.000 --> 00:00:39.000 led the Civil Rights Movement? 00:00:39.000 --> 00:00:41.000 He wasn't the only man 00:00:41.000 --> 00:00:43.000 who suffered in a pre-civil rights America, 00:00:43.000 --> 00:00:45.000 and he certainly wasn't the only great orator of the day. 00:00:45.000 --> 00:00:47.000 Why him? 00:00:47.000 --> 00:00:50.000 And why is it that the Wright brothers 00:00:50.000 --> 00:00:53.000 were able to figure out controlled, powered man flight 00:00:53.000 --> 00:00:55.000 when there were certainly other teams who were 00:00:55.000 --> 00:00:58.000 better qualified, better funded ... 00:00:58.000 --> 00:01:01.000 and they didn't achieve powered man flight, 00:01:01.000 --> 00:01:03.000 and the Wright brothers beat them to it. 00:01:03.000 --> 00:01:06.000 There's something else at play here. NOTE Paragraph 00:01:06.000 --> 00:01:08.000 About three and a half years ago 00:01:08.000 --> 00:01:10.000 I made a discovery. 00:01:10.000 --> 00:01:13.000 And this discovery profoundly changed 00:01:13.000 --> 00:01:16.000 my view on how I thought the world worked, 00:01:16.000 --> 00:01:18.000 and it even profoundly changed the way in which 00:01:18.000 --> 00:01:20.000 I operate in it. 00:01:22.000 --> 00:01:25.000 As it turns out, there's a pattern. 00:01:25.000 --> 00:01:27.000 As it turns out, all the great and inspiring leaders 00:01:27.000 --> 00:01:29.000 and organizations in the world -- 00:01:29.000 --> 00:01:32.000 whether it's Apple or Martin Luther King or the Wright brothers -- 00:01:32.000 --> 00:01:34.000 they all think, act and communicate 00:01:34.000 --> 00:01:36.000 the exact same way. 00:01:36.000 --> 00:01:38.000 And it's the complete opposite 00:01:38.000 --> 00:01:40.000 to everyone else. 00:01:40.000 --> 00:01:42.000 All I did was codify it, 00:01:42.000 --> 00:01:44.000 and it's probably the world's 00:01:44.000 --> 00:01:46.000 simplest idea. 00:01:46.000 --> 00:01:48.000 I call it the golden circle. NOTE Paragraph 00:01:56.000 --> 00:01:59.000 Why? How? What? 00:01:59.000 --> 00:02:01.000 This little idea explains 00:02:01.000 --> 00:02:03.000 why some organizations and some leaders 00:02:03.000 --> 00:02:05.000 are able to inspire where others aren't. 00:02:05.000 --> 00:02:07.000 Let me define the terms really quickly. 00:02:07.000 --> 00:02:10.000 Every single person, every single organization on the planet 00:02:10.000 --> 00:02:12.000 knows what they do, 00:02:12.000 --> 00:02:14.000 100 percent. 00:02:14.000 --> 00:02:16.000 Some know how they do it, 00:02:16.000 --> 00:02:18.000 whether you call it your differentiated value proposition 00:02:18.000 --> 00:02:21.000 or your proprietary process or your USP. 00:02:21.000 --> 00:02:24.000 But very, very few people or organizations 00:02:24.000 --> 00:02:26.000 know why they do what they do. 00:02:26.000 --> 00:02:28.000 And by "why" I don't mean "to make a profit." 00:02:28.000 --> 00:02:30.000 That's a result. It's always a result. 00:02:30.000 --> 00:02:32.000 By "why," I mean: What's your purpose? 00:02:32.000 --> 00:02:34.000 What's your cause? What's your belief? 00:02:35.000 --> 00:02:38.000 Why does your organization exist? 00:02:38.000 --> 00:02:40.000 Why do you get out of bed in the morning? 00:02:40.000 --> 00:02:43.000 And why should anyone care? 00:02:43.000 --> 00:02:45.000 Well, as a result, the way we think, the way we act, 00:02:45.000 --> 00:02:47.000 the way we communicate is from the outside in. 00:02:47.000 --> 00:02:50.000 It's obvious. We go from the clearest thing to the fuzziest thing. 00:02:50.000 --> 00:02:52.000 But the inspired leaders 00:02:52.000 --> 00:02:54.000 and the inspired organizations -- 00:02:54.000 --> 00:02:57.000 regardless of their size, regardless of their industry -- 00:02:57.000 --> 00:02:59.000 all think, act and communicate 00:02:59.000 --> 00:03:01.000 from the inside out. NOTE Paragraph 00:03:02.000 --> 00:03:04.000 Let me give you an example. 00:03:04.000 --> 00:03:07.000 I use Apple because they're easy to understand and everybody gets it. 00:03:07.000 --> 00:03:10.000 If Apple were like everyone else, 00:03:10.000 --> 00:03:13.000 a marketing message from them might sound like this: 00:03:13.000 --> 00:03:16.000 "We make great computers. 00:03:16.000 --> 00:03:18.000 They're beautifully designed, simple to use 00:03:18.000 --> 00:03:20.000 and user friendly. 00:03:20.000 --> 00:03:23.000 Want to buy one?" "Meh." 00:03:23.000 --> 00:03:25.000 And that's how most of us communicate. 00:03:25.000 --> 00:03:27.000 That's how most marketing is done, that's how most sales is done 00:03:27.000 --> 00:03:29.000 and that's how most of us communicate interpersonally. 00:03:29.000 --> 00:03:32.000 We say what we do, we say how we're different or how we're better 00:03:32.000 --> 00:03:34.000 and we expect some sort of a behavior, 00:03:34.000 --> 00:03:36.000 a purchase, a vote, something like that. 00:03:36.000 --> 00:03:38.000 Here's our new law firm: 00:03:38.000 --> 00:03:40.000 We have the best lawyers with the biggest clients, 00:03:40.000 --> 00:03:42.000 we always perform for our clients who do business with us. 00:03:42.000 --> 00:03:44.000 Here's our new car: 00:03:44.000 --> 00:03:47.000 It gets great gas mileage, it has leather seats, buy our car. 00:03:47.000 --> 00:03:49.000 But it's uninspiring. NOTE Paragraph 00:03:49.000 --> 00:03:52.000 Here's how Apple actually communicates. 00:03:53.000 --> 00:03:55.000 "Everything we do, 00:03:55.000 --> 00:03:58.000 we believe in challenging the status quo. 00:03:58.000 --> 00:04:01.000 We believe in thinking differently. 00:04:01.000 --> 00:04:03.000 The way we challenge the status quo 00:04:03.000 --> 00:04:06.000 is by making our products beautifully designed, 00:04:06.000 --> 00:04:08.000 simple to use and user friendly. 00:04:08.000 --> 00:04:11.000 We just happen to make great computers. 00:04:11.000 --> 00:04:13.000 Want to buy one?" 00:04:13.000 --> 00:04:16.000 Totally different right? You're ready to buy a computer from me. 00:04:16.000 --> 00:04:18.000 All I did was reverse the order of the information. 00:04:18.000 --> 00:04:21.000 What it proves to us is that people don't buy what you do; 00:04:21.000 --> 00:04:23.000 people buy why you do it. 00:04:23.000 --> 00:04:25.000 People don't buy what you do; they buy why you do it. NOTE Paragraph 00:04:25.000 --> 00:04:27.000 This explains why 00:04:27.000 --> 00:04:29.000 every single person in this room 00:04:29.000 --> 00:04:32.000 is perfectly comfortable buying a computer from Apple. 00:04:32.000 --> 00:04:34.000 But we're also perfectly comfortable 00:04:34.000 --> 00:04:37.000 buying an MP3 player from Apple, or a phone from Apple, 00:04:37.000 --> 00:04:39.000 or a DVR from Apple. 00:04:39.000 --> 00:04:41.000 But, as I said before, Apple's just a computer company. 00:04:41.000 --> 00:04:43.000 There's nothing that distinguishes them 00:04:43.000 --> 00:04:45.000 structurally from any of their competitors. 00:04:45.000 --> 00:04:48.000 Their competitors are all equally qualified to make all of these products. 00:04:48.000 --> 00:04:50.000 In fact, they tried. 00:04:50.000 --> 00:04:53.000 A few years ago, Gateway came out with flat screen TVs. 00:04:53.000 --> 00:04:55.000 They're eminently qualified to make flat screen TVs. 00:04:55.000 --> 00:04:58.000 They've been making flat screen monitors for years. 00:04:58.000 --> 00:05:00.000 Nobody bought one. 00:05:05.000 --> 00:05:08.000 Dell came out with MP3 players and PDAs, 00:05:08.000 --> 00:05:10.000 and they make great quality products, 00:05:10.000 --> 00:05:13.000 and they can make perfectly well-designed products -- 00:05:13.000 --> 00:05:15.000 and nobody bought one. 00:05:15.000 --> 00:05:17.000 In fact, talking about it now, we can't even imagine 00:05:17.000 --> 00:05:19.000 buying an MP3 player from Dell. 00:05:19.000 --> 00:05:21.000 Why would you buy an MP3 player from a computer company? 00:05:21.000 --> 00:05:23.000 But we do it every day. 00:05:23.000 --> 00:05:25.000 People don't buy what you do; they buy why you do it. 00:05:25.000 --> 00:05:27.000 The goal is not to do business 00:05:27.000 --> 00:05:30.000 with everybody who needs what you have. 00:05:31.000 --> 00:05:33.000 The goal is to do business with people 00:05:33.000 --> 00:05:36.000 who believe what you believe. 00:05:36.000 --> 00:05:38.000 Here's the best part: NOTE Paragraph 00:05:38.000 --> 00:05:40.000 None of what I'm telling you is my opinion. 00:05:40.000 --> 00:05:43.000 It's all grounded in the tenets of biology. 00:05:43.000 --> 00:05:45.000 Not psychology, biology. 00:05:45.000 --> 00:05:48.000 If you look at a cross-section of the human brain, looking from the top down, 00:05:48.000 --> 00:05:50.000 what you see is the human brain is actually broken 00:05:50.000 --> 00:05:52.000 into three major components 00:05:52.000 --> 00:05:55.000 that correlate perfectly with the golden circle. 00:05:55.000 --> 00:05:58.000 Our newest brain, our Homo sapien brain, 00:05:58.000 --> 00:06:00.000 our neocortex, 00:06:00.000 --> 00:06:02.000 corresponds with the "what" level. 00:06:02.000 --> 00:06:04.000 The neocortex is responsible for all of our 00:06:04.000 --> 00:06:06.000 rational and analytical thought 00:06:06.000 --> 00:06:08.000 and language. 00:06:08.000 --> 00:06:11.000 The middle two sections make up our limbic brains, 00:06:11.000 --> 00:06:14.000 and our limbic brains are responsible for all of our feelings, 00:06:14.000 --> 00:06:17.000 like trust and loyalty. 00:06:17.000 --> 00:06:19.000 It's also responsible for all human behavior, 00:06:19.000 --> 00:06:21.000 all decision-making, 00:06:21.000 --> 00:06:24.000 and it has no capacity for language. NOTE Paragraph 00:06:24.000 --> 00:06:27.000 In other words, when we communicate from the outside in, 00:06:27.000 --> 00:06:30.000 yes, people can understand vast amounts of complicated information 00:06:30.000 --> 00:06:33.000 like features and benefits and facts and figures. 00:06:33.000 --> 00:06:35.000 It just doesn't drive behavior. 00:06:35.000 --> 00:06:37.000 When we can communicate from the inside out, 00:06:37.000 --> 00:06:39.000 we're talking directly to the part of the brain 00:06:39.000 --> 00:06:41.000 that controls behavior, 00:06:41.000 --> 00:06:43.000 and then we allow people to rationalize it 00:06:43.000 --> 00:06:45.000 with the tangible things we say and do. 00:06:45.000 --> 00:06:47.000 This is where gut decisions come from. 00:06:47.000 --> 00:06:49.000 You know, sometimes you can give somebody 00:06:49.000 --> 00:06:51.000 all the facts and figures, 00:06:51.000 --> 00:06:53.000 and they say, "I know what all the facts and details say, 00:06:53.000 --> 00:06:55.000 but it just doesn't feel right." 00:06:55.000 --> 00:06:58.000 Why would we use that verb, it doesn't "feel" right? 00:06:58.000 --> 00:07:00.000 Because the part of the brain that controls decision-making 00:07:00.000 --> 00:07:02.000 doesn't control language. 00:07:02.000 --> 00:07:05.000 And the best we can muster up is, "I don't know. It just doesn't feel right." 00:07:05.000 --> 00:07:07.000 Or sometimes you say you're leading with your heart, 00:07:07.000 --> 00:07:09.000 or you're leading with your soul. 00:07:09.000 --> 00:07:11.000 Well, I hate to break it to you, those aren't other body parts 00:07:11.000 --> 00:07:13.000 controlling your behavior. 00:07:13.000 --> 00:07:15.000 It's all happening here in your limbic brain, 00:07:15.000 --> 00:07:18.000 the part of the brain that controls decision-making and not language. NOTE Paragraph 00:07:18.000 --> 00:07:21.000 But if you don't know why you do what you do, 00:07:21.000 --> 00:07:24.000 and people respond to why you do what you do, 00:07:24.000 --> 00:07:27.000 then how will you ever get people 00:07:27.000 --> 00:07:29.000 to vote for you, or buy something from you, 00:07:29.000 --> 00:07:31.000 or, more importantly, be loyal 00:07:31.000 --> 00:07:34.000 and want to be a part of what it is that you do. 00:07:34.000 --> 00:07:37.000 Again, the goal is not just to sell to people who need what you have; 00:07:37.000 --> 00:07:40.000 the goal is to sell to people who believe what you believe. 00:07:40.000 --> 00:07:42.000 The goal is not just to hire people 00:07:42.000 --> 00:07:44.000 who need a job; 00:07:44.000 --> 00:07:47.000 it's to hire people who believe what you believe. 00:07:47.000 --> 00:07:50.000 I always say that, you know, 00:07:52.000 --> 00:07:55.000 if you hire people just because they can do a job, they'll work for your money, 00:07:55.000 --> 00:07:57.000 but if you hire people who believe what you believe, 00:07:57.000 --> 00:07:59.000 they'll work for you with blood and sweat and tears. 00:07:59.000 --> 00:08:01.000 And nowhere else is there a better example of this 00:08:01.000 --> 00:08:03.000 than with the Wright brothers. NOTE Paragraph 00:08:03.000 --> 00:08:06.000 Most people don't know about Samuel Pierpont Langley. 00:08:06.000 --> 00:08:09.000 And back in the early 20th century, 00:08:09.000 --> 00:08:12.000 the pursuit of powered man flight was like the dot com of the day. 00:08:12.000 --> 00:08:14.000 Everybody was trying it. 00:08:14.000 --> 00:08:17.000 And Samuel Pierpont Langley had, what we assume, 00:08:17.000 --> 00:08:20.000 to be the recipe for success. 00:08:20.000 --> 00:08:22.000 I mean, even now, you ask people, 00:08:22.000 --> 00:08:24.000 "Why did your product or why did your company fail?" 00:08:24.000 --> 00:08:26.000 and people always give you the same permutation 00:08:26.000 --> 00:08:28.000 of the same three things: 00:08:28.000 --> 00:08:31.000 under-capitalized, the wrong people, bad market conditions. 00:08:31.000 --> 00:08:34.000 It's always the same three things, so let's explore that. 00:08:34.000 --> 00:08:36.000 Samuel Pierpont Langley 00:08:36.000 --> 00:08:39.000 was given 50,000 dollars by the War Department 00:08:39.000 --> 00:08:41.000 to figure out this flying machine. 00:08:41.000 --> 00:08:43.000 Money was no problem. 00:08:43.000 --> 00:08:45.000 He held a seat at Harvard 00:08:45.000 --> 00:08:48.000 and worked at the Smithsonian and was extremely well-connected; 00:08:48.000 --> 00:08:50.000 he knew all the big minds of the day. 00:08:50.000 --> 00:08:52.000 He hired the best minds 00:08:52.000 --> 00:08:54.000 money could find 00:08:54.000 --> 00:08:56.000 and the market conditions were fantastic. 00:08:56.000 --> 00:08:59.000 The New York Times followed him around everywhere, 00:08:59.000 --> 00:09:01.000 and everyone was rooting for Langley. 00:09:01.000 --> 00:09:04.000 Then how come we've never heard of Samuel Pierpont Langley? NOTE Paragraph 00:09:04.000 --> 00:09:07.000 A few hundred miles away in Dayton Ohio, 00:09:07.000 --> 00:09:09.000 Orville and Wilbur Wright, 00:09:09.000 --> 00:09:11.000 they had none of what we consider 00:09:11.000 --> 00:09:13.000 to be the recipe for success. 00:09:13.000 --> 00:09:15.000 They had no money; 00:09:15.000 --> 00:09:18.000 they paid for their dream with the proceeds from their bicycle shop; 00:09:18.000 --> 00:09:20.000 not a single person on the Wright brothers' team 00:09:20.000 --> 00:09:22.000 had a college education, 00:09:22.000 --> 00:09:24.000 not even Orville or Wilbur; 00:09:24.000 --> 00:09:27.000 and The New York Times followed them around nowhere. 00:09:27.000 --> 00:09:29.000 The difference was, 00:09:29.000 --> 00:09:31.000 Orville and Wilbur were driven by a cause, 00:09:31.000 --> 00:09:33.000 by a purpose, by a belief. 00:09:33.000 --> 00:09:35.000 They believed that if they 00:09:35.000 --> 00:09:37.000 could figure out this flying machine, 00:09:37.000 --> 00:09:40.000 it'll change the course of the world. 00:09:40.000 --> 00:09:42.000 Samuel Pierpont Langley was different. 00:09:42.000 --> 00:09:45.000 He wanted to be rich, and he wanted to be famous. 00:09:45.000 --> 00:09:47.000 He was in pursuit of the result. 00:09:47.000 --> 00:09:49.000 He was in pursuit of the riches. 00:09:49.000 --> 00:09:52.000 And lo and behold, look what happened. 00:09:52.000 --> 00:09:54.000 The people who believed in the Wright brothers' dream 00:09:54.000 --> 00:09:57.000 worked with them with blood and sweat and tears. 00:09:57.000 --> 00:09:59.000 The others just worked for the paycheck. 00:09:59.000 --> 00:10:02.000 And they tell stories of how every time the Wright brothers went out, 00:10:02.000 --> 00:10:04.000 they would have to take five sets of parts, 00:10:04.000 --> 00:10:06.000 because that's how many times they would crash 00:10:06.000 --> 00:10:08.000 before they came in for supper. NOTE Paragraph 00:10:09.000 --> 00:10:12.000 And, eventually, on December 17th, 1903, 00:10:12.000 --> 00:10:15.000 the Wright brothers took flight, 00:10:15.000 --> 00:10:17.000 and no one was there to even experience it. 00:10:17.000 --> 00:10:20.000 We found out about it a few days later. 00:10:21.000 --> 00:10:23.000 And further proof that Langley 00:10:23.000 --> 00:10:25.000 was motivated by the wrong thing: 00:10:25.000 --> 00:10:28.000 The day the Wright brothers took flight, he quit. 00:10:28.000 --> 00:10:30.000 He could have said, 00:10:30.000 --> 00:10:32.000 "That's an amazing discovery, guys, 00:10:32.000 --> 00:10:35.000 and I will improve upon your technology," but he didn't. 00:10:35.000 --> 00:10:37.000 He wasn't first, he didn't get rich, 00:10:37.000 --> 00:10:39.000 he didn't get famous so he quit. NOTE Paragraph 00:10:39.000 --> 00:10:42.000 People don't buy what you do; they buy why you do it. 00:10:42.000 --> 00:10:44.000 And if you talk about what you believe, 00:10:44.000 --> 00:10:47.000 you will attract those who believe what you believe. 00:10:47.000 --> 00:10:50.000 But why is it important to attract those who believe what you believe? 00:10:52.000 --> 00:10:54.000 Something called the law of diffusion of innovation, 00:10:54.000 --> 00:10:57.000 and if you don't know the law, you definitely know the terminology. 00:10:57.000 --> 00:11:00.000 The first two and a half percent of our population 00:11:00.000 --> 00:11:02.000 are our innovators. 00:11:02.000 --> 00:11:05.000 The next 13 and a half percent of our population 00:11:05.000 --> 00:11:07.000 are our early adopters. 00:11:07.000 --> 00:11:09.000 The next 34 percent are your early majority, 00:11:09.000 --> 00:11:12.000 your late majority and your laggards. 00:11:12.000 --> 00:11:15.000 The only reason these people buy touch tone phones 00:11:15.000 --> 00:11:17.000 is because you can't buy rotary phones anymore. NOTE Paragraph 00:11:17.000 --> 00:11:19.000 (Laughter) NOTE Paragraph 00:11:19.000 --> 00:11:22.000 We all sit at various places at various times on this scale, 00:11:22.000 --> 00:11:25.000 but what the law of diffusion of innovation tells us 00:11:25.000 --> 00:11:28.000 is that if you want mass-market success 00:11:28.000 --> 00:11:30.000 or mass-market acceptance of an idea, 00:11:30.000 --> 00:11:32.000 you cannot have it 00:11:32.000 --> 00:11:34.000 until you achieve this tipping point 00:11:34.000 --> 00:11:37.000 between 15 and 18 percent market penetration, 00:11:37.000 --> 00:11:40.000 and then the system tips. 00:11:40.000 --> 00:11:43.000 And I love asking businesses, "What's your conversion on new business?" 00:11:43.000 --> 00:11:45.000 And they love to tell you, "Oh, it's about 10 percent," proudly. 00:11:45.000 --> 00:11:47.000 Well, you can trip over 10 percent of the customers. 00:11:47.000 --> 00:11:49.000 We all have about 10 percent who just "get it." 00:11:49.000 --> 00:11:51.000 That's how we describe them, right? 00:11:51.000 --> 00:11:53.000 That's like that gut feeling, "Oh, they just get it." 00:11:53.000 --> 00:11:56.000 The problem is: How do you find the ones that get it 00:11:56.000 --> 00:11:59.000 before you're doing business with them versus the ones who don't get it? 00:11:59.000 --> 00:12:01.000 So it's this here, this little gap 00:12:01.000 --> 00:12:03.000 that you have to close, 00:12:03.000 --> 00:12:05.000 as Jeffrey Moore calls it, "Crossing the Chasm" -- 00:12:05.000 --> 00:12:07.000 because, you see, the early majority 00:12:07.000 --> 00:12:09.000 will not try something 00:12:09.000 --> 00:12:11.000 until someone else 00:12:11.000 --> 00:12:13.000 has tried it first. 00:12:13.000 --> 00:12:16.000 And these guys, the innovators and the early adopters, 00:12:16.000 --> 00:12:18.000 they're comfortable making those gut decisions. 00:12:18.000 --> 00:12:21.000 They're more comfortable making those intuitive decisions 00:12:21.000 --> 00:12:24.000 that are driven by what they believe about the world 00:12:25.000 --> 00:12:27.000 and not just what product is available. NOTE Paragraph 00:12:27.000 --> 00:12:29.000 These are the people who stood in line for six hours 00:12:29.000 --> 00:12:31.000 to buy an iPhone when they first came out, 00:12:31.000 --> 00:12:33.000 when you could have just walked into the store the next week 00:12:33.000 --> 00:12:35.000 and bought one off the shelf. 00:12:35.000 --> 00:12:37.000 These are the people who spent 40,000 dollars 00:12:37.000 --> 00:12:40.000 on flat screen TVs when they first came out, 00:12:40.000 --> 00:12:43.000 even though the technology was substandard. 00:12:43.000 --> 00:12:45.000 And, by the way, they didn't do it 00:12:45.000 --> 00:12:47.000 because the technology was so great; 00:12:47.000 --> 00:12:49.000 they did it for themselves. 00:12:49.000 --> 00:12:51.000 It's because they wanted to be first. 00:12:51.000 --> 00:12:53.000 People don't buy what you do; they buy why you do it 00:12:53.000 --> 00:12:55.000 and what you do simply 00:12:55.000 --> 00:12:57.000 proves what you believe. 00:12:57.000 --> 00:12:59.000 In fact, people will do the things 00:12:59.000 --> 00:13:01.000 that prove what they believe. 00:13:01.000 --> 00:13:03.000 The reason that person bought the iPhone 00:13:03.000 --> 00:13:06.000 in the first six hours, 00:13:06.000 --> 00:13:08.000 stood in line for six hours, 00:13:08.000 --> 00:13:10.000 was because of what they believed about the world, 00:13:10.000 --> 00:13:12.000 and how they wanted everybody to see them: 00:13:12.000 --> 00:13:14.000 They were first. 00:13:14.000 --> 00:13:16.000 People don't buy what you do; they buy why you do it. NOTE Paragraph 00:13:16.000 --> 00:13:18.000 So let me give you a famous example, 00:13:18.000 --> 00:13:20.000 a famous failure and a famous success 00:13:20.000 --> 00:13:22.000 of the law of diffusion of innovation. 00:13:22.000 --> 00:13:24.000 First, the famous failure. 00:13:24.000 --> 00:13:26.000 It's a commercial example. 00:13:26.000 --> 00:13:28.000 As we said before, a second ago, 00:13:28.000 --> 00:13:31.000 the recipe for success is money and the right people and the right market conditions, 00:13:31.000 --> 00:13:33.000 right? You should have success then. 00:13:33.000 --> 00:13:35.000 Look at TiVo. 00:13:35.000 --> 00:13:37.000 From the time TiVo came out about eight or nine years ago 00:13:37.000 --> 00:13:39.000 to this current day, 00:13:39.000 --> 00:13:42.000 they are the single highest-quality product on the market, 00:13:42.000 --> 00:13:45.000 hands down, there is no dispute. 00:13:45.000 --> 00:13:47.000 They were extremely well-funded. 00:13:47.000 --> 00:13:49.000 Market conditions were fantastic. 00:13:49.000 --> 00:13:51.000 I mean, we use TiVo as verb. 00:13:51.000 --> 00:13:54.000 I TiVo stuff on my piece of junk Time Warner DVR all the time. NOTE Paragraph 00:13:57.000 --> 00:13:59.000 But TiVo's a commercial failure. 00:13:59.000 --> 00:14:01.000 They've never made money. 00:14:01.000 --> 00:14:03.000 And when they went IPO, 00:14:03.000 --> 00:14:05.000 their stock was at about 30 or 40 dollars 00:14:05.000 --> 00:14:07.000 and then plummeted, and it's never traded above 10. 00:14:07.000 --> 00:14:10.000 In fact, I don't think it's even traded above six, 00:14:10.000 --> 00:14:12.000 except for a couple of little spikes. 00:14:12.000 --> 00:14:14.000 Because you see, when TiVo launched their product 00:14:14.000 --> 00:14:17.000 they told us all what they had. 00:14:17.000 --> 00:14:20.000 They said, "We have a product that pauses live TV, 00:14:20.000 --> 00:14:23.000 skips commercials, rewinds live TV 00:14:23.000 --> 00:14:25.000 and memorizes your viewing habits 00:14:25.000 --> 00:14:28.000 without you even asking." 00:14:28.000 --> 00:14:30.000 And the cynical majority said, 00:14:30.000 --> 00:14:32.000 "We don't believe you. 00:14:32.000 --> 00:14:34.000 We don't need it. We don't like it. 00:14:34.000 --> 00:14:36.000 You're scaring us." 00:14:36.000 --> 00:14:38.000 What if they had said, 00:14:38.000 --> 00:14:40.000 "If you're the kind of person 00:14:40.000 --> 00:14:43.000 who likes to have total control 00:14:43.000 --> 00:14:46.000 over every aspect of your life, 00:14:46.000 --> 00:14:49.000 boy, do we have a product for you. 00:14:49.000 --> 00:14:51.000 It pauses live TV, skips commercials, 00:14:51.000 --> 00:14:54.000 memorizes your viewing habits, etc., etc." 00:14:54.000 --> 00:14:56.000 People don't buy what you do; they buy why you do it, 00:14:56.000 --> 00:14:58.000 and what you do simply serves as 00:14:58.000 --> 00:15:00.000 the proof of what you believe. NOTE Paragraph 00:15:00.000 --> 00:15:03.000 Now let me give you a successful example 00:15:03.000 --> 00:15:06.000 of the law of diffusion of innovation. 00:15:06.000 --> 00:15:09.000 In the summer of 1963, 00:15:09.000 --> 00:15:11.000 250,000 people showed up 00:15:11.000 --> 00:15:13.000 on the mall in Washington 00:15:13.000 --> 00:15:15.000 to hear Dr. King speak. 00:15:16.000 --> 00:15:19.000 They sent out no invitations, 00:15:19.000 --> 00:15:22.000 and there was no website to check the date. 00:15:22.000 --> 00:15:24.000 How do you do that? 00:15:24.000 --> 00:15:26.000 Well, Dr. King wasn't the only man in America 00:15:26.000 --> 00:15:28.000 who was a great orator. 00:15:28.000 --> 00:15:30.000 He wasn't the only man in America who suffered 00:15:30.000 --> 00:15:32.000 in a pre-civil rights America. 00:15:32.000 --> 00:15:35.000 In fact, some of his ideas were bad. 00:15:35.000 --> 00:15:37.000 But he had a gift. 00:15:37.000 --> 00:15:40.000 He didn't go around telling people what needed to change in America. 00:15:40.000 --> 00:15:42.000 He went around and told people what he believed. 00:15:42.000 --> 00:15:44.000 "I believe, I believe, I believe," 00:15:44.000 --> 00:15:46.000 he told people. 00:15:46.000 --> 00:15:48.000 And people who believed what he believed 00:15:48.000 --> 00:15:50.000 took his cause, and they made it their own, 00:15:50.000 --> 00:15:52.000 and they told people. 00:15:52.000 --> 00:15:54.000 And some of those people created structures 00:15:54.000 --> 00:15:56.000 to get the word out to even more people. 00:15:56.000 --> 00:15:58.000 And lo and behold, 00:15:58.000 --> 00:16:00.000 250,000 people showed up 00:16:00.000 --> 00:16:03.000 on the right day at the right time 00:16:03.000 --> 00:16:05.000 to hear him speak. NOTE Paragraph 00:16:05.000 --> 00:16:08.000 How many of them showed up for him? 00:16:09.000 --> 00:16:11.000 Zero. 00:16:11.000 --> 00:16:13.000 They showed up for themselves. 00:16:13.000 --> 00:16:15.000 It's what they believed about America 00:16:15.000 --> 00:16:18.000 that got them to travel in a bus for eight hours 00:16:18.000 --> 00:16:21.000 to stand in the sun in Washington in the middle of August. 00:16:21.000 --> 00:16:24.000 It's what they believed, and it wasn't about black versus white: 00:16:24.000 --> 00:16:27.000 25 percent of the audience was white. 00:16:27.000 --> 00:16:29.000 Dr. King believed that 00:16:29.000 --> 00:16:31.000 there are two types of laws in this world: 00:16:31.000 --> 00:16:33.000 those that are made by a higher authority 00:16:33.000 --> 00:16:35.000 and those that are made by man. 00:16:35.000 --> 00:16:38.000 And not until all the laws that are made by man 00:16:38.000 --> 00:16:40.000 are consistent with the laws that are made by the higher authority 00:16:40.000 --> 00:16:42.000 will we live in a just world. 00:16:42.000 --> 00:16:44.000 It just so happened that the Civil Rights Movement 00:16:44.000 --> 00:16:47.000 was the perfect thing to help him 00:16:47.000 --> 00:16:49.000 bring his cause to life. 00:16:49.000 --> 00:16:52.000 We followed, not for him, but for ourselves. 00:16:52.000 --> 00:16:54.000 And, by the way, he gave the "I have a dream" speech, 00:16:54.000 --> 00:16:56.000 not the "I have a plan" speech. NOTE Paragraph 00:16:56.000 --> 00:17:00.000 (Laughter) NOTE Paragraph 00:17:00.000 --> 00:17:03.000 Listen to politicians now, with their comprehensive 12-point plans. 00:17:03.000 --> 00:17:05.000 They're not inspiring anybody. 00:17:05.000 --> 00:17:08.000 Because there are leaders and there are those who lead. 00:17:08.000 --> 00:17:10.000 Leaders hold a position of power 00:17:10.000 --> 00:17:12.000 or authority, 00:17:12.000 --> 00:17:15.000 but those who lead inspire us. 00:17:16.000 --> 00:17:18.000 Whether they're individuals or organizations, 00:17:18.000 --> 00:17:20.000 we follow those who lead, 00:17:20.000 --> 00:17:22.000 not because we have to, 00:17:22.000 --> 00:17:25.000 but because we want to. 00:17:25.000 --> 00:17:28.000 We follow those who lead, not for them, 00:17:28.000 --> 00:17:30.000 but for ourselves. 00:17:30.000 --> 00:17:33.000 And it's those who start with "why" 00:17:33.000 --> 00:17:35.000 that have the ability 00:17:35.000 --> 00:17:37.000 to inspire those around them 00:17:37.000 --> 00:17:40.000 or find others who inspire them. NOTE Paragraph 00:17:40.000 --> 00:17:42.000 Thank you very much. NOTE Paragraph 00:17:42.000 --> 00:17:44.000 (Applause)