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Imagine please yourself in this picture:

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you’re a Dad and this is your son, Joshua;
you’re holding his hand,

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you’re walking with him,
you’re entering a concentration camp.

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Joshua is 7 years old.

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You’re trying to answer all his questions,
and at the same time

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you're trying to figure out where you are,
and what’s going to happen to your family

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and to you.

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As you may know,
I’m describing a scene from the movie

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“La Vita è Bella” by Roberto Benigni.

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In that movie the father all of a sudden

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has this idea of telling his son
that this is all part of a game,

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a carefully prepared, a difficult game,
where nobody complains,

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because if you do so, you lose points,

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and whoever reaches 1,000 points first,
wins first prize,

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which happens to be a tank:
a brand new tank, Joshua, a real one.

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Finally, they arrive to their room,
which is a barracks, of course.

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And this is the expression of the father,
standing at the threshold,

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shocked by what he sees.

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Suddenly he remembers
that he has someone to his right:

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a little one, who still thinks
that this is all part of a game,

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and who is also shocked.

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Between this frame... and this one,
there are exactly 9 seconds.

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I used a stopwatch. 9 seconds.

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This is when the father finally reacts,
pulls himself together,

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and comes out with:
“Come on, Joshua. What did I tell you?

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They’ve taken care of every little detail
just to make it look real, haven’t they?

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But if we reach 1,000 points first,
we take home the tank!"

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Now, how do you do that?

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There’s a lot of talk
about loyalty these days.

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More precisely, about the lack of it.

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Articles on how customer loyalty
has been wiped out by the economic crisis.

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Some organizations saying
that employees are just not loyal anymore.

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And it seems very logical, after all
that has happened in the economy.

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But what has this
got to do with La Vita è Bella?

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Bear with me for a few moments.
You’re about to find out.

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Let’s imagine this time,
that you are the owner of a company

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in a very competitive market.

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How would you feel if you found out
that 60% of the clients that you lose

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on a yearly basis declare to be satisfied?

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The data I’m about to share with you
comes from a real insurance company.

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After one of my classes
in a Business School, they came to me,

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and intrigued me about their case,
at once.

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The question I asked them, the question
you’re probably asking yourselves, was:

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"If they’re satisfied,
then why do they leave?"

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Their answer was,
"They leave because of price!"

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I asked them for data,
did quite a lot of number crunching,

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got back to them and said: "You’re right,
they leave because of price!

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Actually 18% of them
leave because of price.

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Why are the other ones leaving?,” I asked.

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"Juan," they said, “there’s something
we didn’t tell you the first day.

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Maybe we should have!

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It’s this other Department in our company.

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You see, they’re not as customer-centric
as we are: the 'Claims Department'.

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These are the people you should talk to.”

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I asked them for data again,

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got back lots of numbers
related to claims and desertions,

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and I went back to them and said,
after some number crunching:

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“You are right!
They leave because of claims!

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Actually 9% of them
leave because of claims.

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Oh, by the way, most of the clients
you lose don’t even have any claims!”

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You don’t have to be
in the Insurance Industry to realize

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that these are the most desired clients,
the ones who have no claims.

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They don’t leave
because of price or claims.

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They leave - and I’m going to say it
with the utmost humility,

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because I’m the first one who should
ask himself that question every week -

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they leave because
we don’t give them reasons to stay!

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And of course the question
I ask myself is:

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“Juan, are you giving your people
good reasons to stay?”

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Please think about this for a moment:

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are we all giving our people
good reasons to stay?

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And when I intentionally say “our people”
I’m not only talking about customers,

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of course,
I’m talking about our employees too,

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I’m talking about our spouses,
our friends.

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The fact that you, my customer,
my employee, my spouse, my friend,

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the fact that you don’t have
reasons to leave,

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doesn’t necessarily mean
that you have reasons to stay.

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It would be unforgivably “myopic”
on my side, to assume otherwise.

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If I don’t give you reasons to stay
right now, it’s only a matter of time,

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before someone else eventually gives you,
sometimes, very tempting reasons to leave.

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And then it would be too late, for me,
to try to give you reasons to stay.

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I say in my classes:

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“El sentido hay que darlo
cuando todavía tiene sentido recibirlo.”

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That is Spanish for:

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"Meaning should be given
while it still makes sense to receive it."

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Otherwise my credibility
doesn't deserve you.

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I've always thought that whoever came up
with the idea of the movie La Vita è Bella

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had to be very inspired
by the work of Frankl, Viktor Frankl.

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Frankl was in my opinion
one of the most brilliant minds

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the 20th century has given us.

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After he had finished
his doctoral thesis in Medicine,

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he was taken to a place called Auschwitz,

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and in his best-known book,
“Man's Search for Meaning”,

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he proves that the people who survived
the conditions of a concentration camp

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were not the strongest people,
or the most intelligent ones,

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or the ones who had more knowledge
about survival techniques.

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The ones who survived, as Frankl shows,

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were the ones who were able to find
meaning in their quest for survival,

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meaning in persevering, in not giving up.

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Maybe that meaning came
from someone who depended on you,

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who was waiting for you outside the camp,
or maybe an unfinished project,

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or maybe God.

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Different people, of course,
find different meanings.

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That's why, when Frankl quotes Nietzsche,
he says: "Whoever has a strong 'why'

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will be able to endure almost any 'how'."

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And inspired by this I’ve been saying
to audiences for the last 18 years

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that whoever has a strong “why”
will also be able to find a “how.”

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If you have kids, I guess I don't need
to explain what this means,

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because you know very well
that when the "why" is good enough,

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the “how” is just a matter of time!

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And that's why when I teach those
who lead teams, I implore them:

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"Don't give your employees so many 'hows.'
Please give them more 'whys'!"

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And of course, the “reasons to”
that I mentioned earlier

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are nothing but this: meaning.

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Are we really facing
a lack of loyalty today?

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I don’t think so;
what we’re facing is a lack of meaning.

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They leave because
we don’t give them reasons to stay.

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Of course giving meaning,
giving "reasons to," and demanding it,

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are things
that have evolved over the years.

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We are no longer in an Industrial Economy,
or even in a Service Economy any more.

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Today we’re a 100% into
the Experience Economy.

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On the one hand we cannot
fulfill the need for meaning

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using obsolete methods from the past,

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and on the other,
creating meaning through experiences

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implies a whole different
mindset in organizations:

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you cannot create
an experience without people!

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Actually, a very specific kind of people.

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People who may be tired,
but you don’t notice.

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People - I’m thinking about a nurse
that I know, for instance -

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who may be having a bad day,
but that’s last thing you'd think

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when she says: “Good morning!” to you,
looking into your eyes,

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making you feel that she really cares
about your day. And in fact, she does!

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What you don’t know is that earlier
that morning she had been overwhelmed,

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that just a few hours ago she froze
in the “threshold of a barracks,”

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feeling sad, tired, helpless,
feeling like “life isn’t fair."

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And it took her 9 seconds to cheer you up,

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telling you that we are going to be
the first ones gathering 1,000 points,

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that we are going to bring home the tank.

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And she made you feel good,

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if it is only because you could definitely
tell that somebody really cares.

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Now, that’s the kind of people we need,
today, in the Experience Economy.

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How is it possible that there are so many
organizations out there today

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that do not see this, still?
And so many people?

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Well, I actually found the answer to that,
in a lesson I learnt in the spring of 1994

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from two mentors that I loved dearly.

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One of them was Felix,
and the other one was a tree.

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Yes, a tree. An olive tree, to be precise.

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I lived in Southern California,
I loved the country, I loved my job,

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and I had tears in my eyes, bitter tears,
when my wife and myself

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had to leave our dream and go back home

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to help a 5-generation-old
family business in Southern Spain,

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that was in serious trouble at the time:
a radical restructuring was in order.

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And the decision that I had to make
was to plant 66,000 olive trees!

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Which was a very risky decision, among
other things because we had no water!

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I made 22 attempts
to find just enough water

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to help them survive
for the first 3 years.

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And I went down 298 meters deep,
searching for it,

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only to find water that was as salty,
literally, as the Mediterranean sea.

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Very little money, no water,
and on top of that,

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I had no idea how to plant olive trees,
not to mention 66,000!

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I looked for advice from professors,
researchers and some very wise

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local farmers too and some of the best
advice I got came from Felix.

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He was this gentle, honest, local guy,
a genius with olive trees.

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I mean, he knew more about olive trees
than anyone I’d ever met

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and believe me I’d met lots of experts.

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One day, he drove me
to a faraway olive grove

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and he asked me
about the age of those trees.

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By then I had learned enough
to know the answer

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and I actually thought
it was a very easy question,

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“Five, maybe four years old”, I said.

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He looked at me in the eyes and said:
"Juan, these are more than 10 years old."

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I couldn’t believe it!

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“Yes, son, more than ten years old.
And that’s why I brought you here.

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The way these trees were planted
is a mistake you should never make,

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if you finally decide 
to plant your trees."

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When the soil is wet,

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you can't make the hole in the traditional
way, drilling, to plant your tree.

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If you do so, the drill,
as it goes down in wet soil,

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creates a lateral pressure
on the sides of the hole.

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Without realizing it,
you have just crafted an underground pot.

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When months later, those sides are dry,
they become as hard as cement,

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and they won’t let the young
and fragile tips of the roots expand.

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The roots, then go in circles, within
the very limited space you’ve left them.

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That’s when the tree decides
to stop growing its branches,

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to match the volume of the roots.

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Olive trees do respect
and maintain an equilibrium

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between their aerial development -
branches and leaves -

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and their underground foundations -
the root system.

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In olive trees
“El vuelo equivale al suelo”:

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what you see above ground is,
in volume, what lies underground.

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When those trees -
in that kind of “underground pot” -

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decide to stop growing,
it becomes a real tragedy.

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And the worst part
is not just that they are only a fraction

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of their true potential, of what otherwise
their natural development would be.

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Even worse: they are not even aware they
are suffering from a condition of atrophy,

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of underdevelopment, and they don’t do
anything to become all they could be,

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simply because they just don’t know
that they could be all that.

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They think that this is normal
and it’s not!

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They think that this is who they are,
and it’s not true.

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They are so much more.
They could be so much more.

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These trees will never grow any further
and they will almost give no fruit.

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This is what we call back home
“ingrown olive trees.”

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Over the years, I’ve found out
this not only happens to olive trees;

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it also happens to people,
“ingrown people,”

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whose limited perspectives
don’t let them develop.

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Anyone who has been to one of my courses

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will tell you that I love telling people
about TED and I use it in my classes.

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Well, this is the reason why I do that.

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I’m strongly convinced that
sharing ideas that are worth spreading

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is a great way of helping ingrown people
overcome that condition,

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a condition that by definition, "ingrown,"
we may not even be aware that we have,

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a condition that we may all have.

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At least I wouldn’t dare
to count myself out, I know that for sure.

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I also found out
that this happens in organizations,

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whose limited system of beliefs
and assumptions make them think

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that the effect is the cause,
and people are just no longer loyal.

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Organizations whose roots, whose meaning,
whose “reasons to” are too superficial,

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And yet they expect huge branches

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filled with fruits of loyalty
from customers and employees;

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organizations whose shallow “whys”
don’t provide much space for great “hows,”

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whose meaning is ingrown,
reduced and constrained,

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and yet, they complain that the branches
are not big enough

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to give them the shade they need.

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They don’t seem to realize
that people leave because

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we don’t give them reasons to stay!

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Viktor Frankl passed away 17 years ago,

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but if I could write him a letter
in heaven, that letter would say:

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"Dear Dr. Frankl:

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17 years after your death,
man is still in search of meaning!

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Actually customers are
very much in search of meaning,

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meaningful relations
that give them reasons to stay.

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00:16:20,245 --> 00:16:23,040
And employees are also
very much in search of meaning,

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meaningful roles that earn
their willingness to stay, too.

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And you, Dr. Frankl,
you would be surprised

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by how many people complain
that we are facing a lack of loyalty,

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in these times of adversity
that we are going through.

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You, who could give us a couple lessons,
or ten, on managing adversity,

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you would tell us
that we are not facing a lack of loyalty:

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what we’re facing is a lack of meaning.

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The loyalty is there,
all we have to do is earn it,

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but we won’t do so without
the “reasons to," without the meaning!

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I’d like to leave you with a question,
a question worth spreading, in my opinion:

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are we, your bosses, your suppliers,
your spouses, your friends,

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are we so “ingrown”
in our own limited perspective,

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that we complain about
your lack of loyalty when, truth be told,

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00:17:17,118 --> 00:17:21,651
maybe we have not given you
reasons to stay, in the first place?

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Do we complain about
lack of loyalty from you,

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when someone else
finally gives you reasons to leave,

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and you at least considered those?

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Is that the time when we finally
try to give you reasons to stay? Too late?

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It doesn’t make any sense.
It doesn’t have to be that way!

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I wish you all meaningful lives,
full of solid meaning,

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full of solid roots, full of solid “whys,"

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that will help you
find and develop your “hows."

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00:17:56,868 --> 00:17:59,731
I wish that you all reach “1,000 points,"

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and take home that tank
with you, to someone.

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00:18:05,984 --> 00:18:10,012
Remember: you owe it to that someone.

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I don’t know who that someone is,
but you do! Don’t let them down.

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9 seconds can make
a whole lot of difference!

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Give them the meaning they long for now,
while it still makes sense to receive it.

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Thank you very much. Hvala!

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(Applause)