P
.
M
. Stay
any later and they are taken out of a bonus pool. Because employees
know they have to leave by 5:30 p.m., wasted time has dropped to a
minimum. Productivity is high and turnover in low. Consider how
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215
much you get done the day before you go on vacation. Now
imagine every day is like that. That's what Dwayne Honore figured
out how to do. Because he figured out how to mea$ sure a value he
holds dear, that value is embraced. Most importantly, because
Honore's actions pass the Celery Test, others can clearly see what he
believes.
Money is a perfectly legitimate measurement of goods sold or
services rendered. But it is no calculation of value. Just because
somebody makes a lot of money does not mean that he necessarily
provides a lot of value. Likewise, just because somebody makes
little money does not necessarily mean he provides only a little
value. Simply by measuring the number of goods sold or the money
brought in is no indication of value. Value is a feeling, not a
calculation. It is perception. One could argue that a product with
more bells and whistles that sells for less is the greater value. But by
who’s standard?
My uncle used to make tennis rackets. His rackets were made the
exact same factory as a name-brand racket. They were made of the
same material on the same machine. The only difference with that
when my uncle's rackets came off the assembly line, they didn’t put
the well-known brand logo on the product. My uncle's racked sold
for less money, in the same big-box retailer, next to the name brand
rackets. Month after month, the name-brand rackets outsold the
generic-brand ones. Why? Because people perceived greater value
from the name-brand rackets and felt just fine paying a premium for
that feeling. On a strictly rational scale, the generic rackets offered
better value. But again, value is a perception, not a calculation,
which is the reason companies make such a big deal about investing
in their brand. But a strong brand, like all other intangible factors
that contribute to the perception of value, starts with a clear sense of
WHY.
START WITH WHY
216
If those outside the megaphone share your WHY and if you are
able to clearly communicate that belief in everything you say and
do, trust emerges and value is perceived. When that happens, loyal
buyers will always rationalize the premium they pay or the incon-
venience they suffer to get that feeling. To them, the sacrifice of time
or money is worth it. They will try to explain that their feeling of
value comes from quality or features or some other easy-to- point-to
element, but it doesn't. Those are external factors and the
feeling
they
get comes completely from inside them. When people can point to a
company and clearly articulate what the company believes and use
words unrelated to price, quality, service and features, that is proof
the company has successfully navigated the split. When people
describe the value they perceive with visceral, excited words like
"love," that is a sure sign that a clear sense of WHY exists.
Good Successions Keep the WHY Alive
There were three words missing from Bill Gates's goodbye speech
when he officially left Microsoft in June 2008. They are three words
he probably doesn't even realize need to be there.
"I'll be back."
Though Gates abdicated his role as CEO of Microsoft to Steve
Ballmer in 2000 to lend more time and energy to the Bill and
Melinda Gates Foundation, he still maintained a role and a presence
at the Microsoft headquarters in Redmond, Washington. His plan
was always to completely leave the company in the care of others,
but like a lot of founders, Gates forgot to do one thing that would
allow his plan to work. This one oversight could have a devastating
impact on Microsoft and may even require him to come back
someday to right the ship he built.
Bill Gates is special. Not just because of his brain or his
management style. Though important, those two things alone are
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217
not the formula for building a $60 billion corporation from scratch.
Like all visionary leaders, Bill Gates is special because he embodies
what he believes. He is the personification of Microsoft's WHY. And
for that reason, he serves as a physical beacon, a reminder of WHY
everyone comes to work.
When Gates founded Microsoft with Paul Allen in 1975, he did
so to advance a higher cause: if you give people the right tools, and
make them more productive, then everyone, no matter their lot in
life, will have an opportunity to achieve their real potential, "A PC
in every home and on every desk," he envisioned; remarkable from
a company that didn't even make PCs. He saw the PC as the great
equalizer. Microsoft's most successful software, Windows, allowed
anyone to have access to powerful technology. Tools like Word,
Excel and PowerPoint gave everyone the power to realize the
promise of the new technology—to become more efficient and
productive. Small businesses, for example, could look and act like
big businesses. Microsoft's software helped Gates advance his cause
to empower the "everyman."
Make no mistake, Microsoft has done more to change the world
than Apple. Though we are drawn to Apple's well-deserved rep-
utation for innovation and challenging the business models of more
than one industry, it is Microsoft that was responsible for the
advancement of the personal computer. Gates put a PC on every
desk and in doing so he changed the world. As the physical em-
bodiment of the company's WHY, the "everyman" who fulfilled an
amazing potential, what happens now that he's gone?
Gates himself has always held that he receives a "disproportionate"
amount of attention for his role at Microsoft, much of it, of course,
due to his exceptional wealth. Like all inspired leaders, he
recognizes that his role is to lead the cause, but it is others who will
be physically responsible for bringing that cause to life. Martin Lu-
ther King Jr. could not have changed America walking across a
START WITH WHY
218
bridge in Selma, Alabama, with five prominent civil rights leaders.
It took the thousands of people marching behind them to spur
change. Gates recognizes the need for people to produce real
change, but he neglected to remember that any effective movement,
social or business, needs a leader to march in the front, preaching
the vision and reminding people WHY they showed up in the first
place. Though King needed to cross the bridge from Selma on his
march to Montgomery, it was what it meant to cross the bridge that
mattered. Likewise in business, though profit and shareholder value
are valid and essential destinations, they do not inspire people to
come to work.
Although Microsoft went through the split years ago, changing
from a company that intended to change the world into a company
that makes software, having Gates hanging around helped Micro-
soft maintain at least a loose sense of WHY they existed. With Gates
gone, Microsoft does not have sufficient systems to measure and
preach their WHY anymore. This is an issue that will have an ex-
ponential impact as time passes.
Such a departure as Gates's is not without precedent among
companies with equally visionary leaders. Steve Jobs, the physical
embodiment of the rabble-rousing revolutionary, a man who also
personifies his company's WHY, left Apple in 1985 after a legendary
power struggle with Apple's president, John Sculley, and the Apple
board of directors. The impact on Apple was profound.
Originally hired by Jobs in 1983, Sculley was a perfectly capable
executive with a proven track record. He know WHAT to do and
HOW to do things. He was considered one of the most talented
marketing executives around, having risen quickly through the
ranks of PepsiCo. At Pepsi, he created the wildly successful Pepsi
Challenge taste test advertising campaign, leading Pepsi to overtake
Coca-Cola for the first time. But the problem was, Sculley was a bad
SPLIT HAPPENS
219
fit at Apple. He ran the company as a business and was not there to
lead the cause.
It is worth considering how such a bad fit as Sculley even got the
job at Apple in the first place. Simple—he was manipulated. Sculley
did not approach Jobs and ask to be a part of Apple's cause. The
way the real story unfolded made the fallout almost predictably
Jobs knew he needed help. He knew he needed a HOW guy to help
him scale his vision. He approached Sculley, a man with a solid
r£sum6, and said, "Do you want to sell sugar water your whole life
or do you want to change the world?" Playing off Sculley's ego
aspirations and fears, Jobs completed a perfectly executed manipu-
lation. And with it, Jobs was ousted from his own company a fen*
years later.
Apple thrived on Steve Jobs's fumes for a few years as businesses
started buying up Macintoshes and software developers continued
to create new software. But it wouldn't be long until the company
would begin to falter. Apple just wasn't what it used to be. It had
gone through the split and ignored it. The WHY was getting fuzzier
and fuzzier with each passing year. The inspiration was gone.
Literally.
With a capable executive like Sculley running the business, there
was no one to lead the cause. New products would be "less revolu-
tionary and more evolutionary," reported
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