Why Knowing Your ‘Why’ Makes You a Better Leader

All business leaders I know are able to explain What they do, almost all of them How they do it, but only a minority can explain Why they do what they do, and that is a missed opportunity, both for themselves and their teams.

Most people I know regularly reflect on the meaning and purpose of life. In 1946, Viktor Frankl, an Austrian psychiatrist and psychotherapist, wrote one of the most important and influential books on this topic: ‘Man’s Search for Meaning‘.

It is a short but poignant and profound book that contains Frankl’s reflections on this question during his time in Nazi concentration camps, where he and his family were imprisoned because they were Jewish. In these camps, Viktor Frankl lost his father, mother, and wife.

In ‘Man’s Search for Meaning’., he formulated the thesis that inmates in the camps, who had a sense of meaning in their lives, were more likely to survive.

Therefore, he recommends us to stop asking for “THE” meaning of life, and instead think about: What does life expect of me right now? In order to do this, we need to understand our unique and specific meaning.

“This meaning is unique and specific in that it must and can be fulfilled by him alone; only then does it achieve a significance which will satisfy his own will to meaning.” — Viktor Frankl

According to Frankl, understanding our unique and specific meaning (a.k.a. our “Why”) is important for our happiness and our ability to cope with suffering. This is the same point Friedrich Nietzsche made when he stated that “He who has a why to live for can bear almost any how”.

In 2009, Simon Sinek published “Start with Why“, which introduced the importance of meaning and purpose in the world of business. This book underlined the importance for leaders to understand and express their “Why” in order to inspire others.

A great way to illustrate this is to look at the market for laptops.

Most people buy laptops based on the price-performance ratio. They look at which brand offers the best processor, memory, storage, display, and battery life for the lowest cost at a given moment. If Lenovo has the best deal, they will buy Lenovo; if HP, Acer, or Dell has the best deal, they will buy an HP, Acer, or Dell laptop.

Most Apple consumers completely bypass the brand selection process and confine their choice to the Apple ecosystem. The reason is that they believe in the brand or, to put it differently, the “Why” of Apple. Apple buyers connect to the brand because they identify with, for instance, the Crazy Ones. They are willing to pay a premium for a product that resonates with their identity.

Understanding and being able to articulate our “Why” is incredibly important for two reasons.

First of all, it helps us stay true to ourselves when confronted with decisions. Instead of making decisions solely on their own merits and the specific circumstances at the moment in time where we need to make the decision, understanding our “Why” helps us make decisions that are congruent with our values.

Secondly, and here is why it is so important for leaders, it helps us connect with others faster and on a deeper level. Irrespective of whether we are formally in a leadership position or not, we need to give people a reason to follow us.

To boil down 100+ years of motivational theory in the crudest way possible: there are three ways to motivate our staff.

At the most basic level, we can ensure our staff delivers the required output (‘WHAT‘) through a combination of sticks and carrots. The issue is, of course, that control is required to ensure compliance, loyalty will be low — staff can easily be tempted by organisations that offer more carrots and fewer sticks — and discretionary effort is likely to be the exception rather than the rule.

At a more advanced level, we can make sure people enjoy the content of their work (‘HOW‘). Many consultants and investment bankers may be cynical about the contribution their companies make to society, but they almost always find the content of their work intellectually challenging. The difficulty is that there will almost always be organisations that can compete on content while also offering more in the sticks and carrots department.

Therefore, the most powerful way to motivate people is to appeal to a shared purpose (‘WHY‘). The reason people wanted to follow the likes of Mahatma Gandhi, Martin Luther King Jr., John F. Kennedy, Nelson Mandela, or business leaders like Steve Jobs, Paul Polman, or nowadays Elon Musk, was not necessarily because they were nice or kind — because they often were not — but because they were able to formulate and communicate an irresistible Why.

Now, not all of us are Nelson Mandelas or Steve Jobses, and not all of us work for organisations that are changing the destinies of nations, dramatically improving human rights situations, or transforming entire industries. However, all of us have the potential to scale this principle to inspire others.

A good example is army regiments. Speaking with military personnel, I was struck by the fact that their loyalty lies not so much at the king-and-country level, but closer to home — with their colleagues and their regiment. That regiment may not have had a visible success in over 100 years, yet that is beside the point. They believe in the narrative — the values — of the regiment.

Just take a minute to imagine what you could achieve if your team consisted of self-motivated members who believed in a collective mission…

If you and your team do not know your Why or theirs, you are probably leaving your most powerful motivational lever untouched. I recently became a Certified Why Coach through Simon Sinek’s company, trained to help individuals and teams discover and articulate their purpose — and how to put it to work.

If you’re curious about what purpose-driven leadership could look like for you and your team, reach out to schedule a conversation.

Successfully Managing Executive Transitions – Interview Navid Nazemian

Almost 90% of senior HR leaders agree that transitions into new roles are the most challenging periods in a leader’s professional life. However, organizational appetite to invest in these transitions remains minimal.

As business leaders, we seem to accept a 40% failure rate among newly appointed executives as an unavoidable risk.

The consequences of these failures are significant for both the individual and their organization.

For the individual, a failed transition damages their professional reputation and potentially their livelihood. For their organization, it results in direct financial costs (recruitment), opportunity costs, diminished employee engagement, and a degraded Employer Value Proposition (EVP).

In the 37th episode of the Leadership 2.0 podcast, I speak with Navid Nazemian—my brother-in-arms in the Executive Transition Coaching space—about how organizations can mitigate the risks of executive appointments by engaging an executive coach.

During our conversation, we discussed:

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Do not leave the Onboarding if Executives to chance – Why you should consider Transition Coaching

The statistics around executive transition failure rates of newly appointed executives are staggering: 

  • Nearly half of all leadership transitions fail (McKinsey)
  • Not only external hires fail: research from DDI shows that 35% of all executives promoted internally are considered failures
  • The costs of C-level failures are, in the vast majority of cases, higher than USD 2 million, but can be as high as USD 30 million. In their Harvard Business Review article, Claudio Fernández-Aráoz, Gregory Nagel, and Carrie Green estimate that the costs of mismanaged CEO transitions in the S&P 1500 alone already result in nearly USD1 trillion in market value loss on a yearly basis.

Unfortunately, the number of leaders and organizations that actually invest in addressing this problem is relatively small. And that is an issue for both the individuals concerned and their organizations.

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‘Ensuring successful CEO transitions’ – Interview Ty Wiggins (‘The New CEO’)

Why do people want to become CEO in the first place?” That was one of the first questions I posed to Ty Wiggins during our interview for the Leadership 2.0 Podcast.

After all, the statistics are sobering:

Being a CEO comes with immense responsibility because the CEO is ultimately accountable for the company’s entire trajectory, from strategic wins like M&As to major setbacks like corporate scandals.

Every day, CEOs must make tough decisions on issues that can’t be resolved at lower levels. More often than not, these choices are a matter of picking the ‘least unattractive’ option. These decisions have a significant influence on the lives and financial well-being of all stakeholders. This broad group includes employees, investors (e.g., pension funds), consumers, suppliers, and government bodies.

In the 32nd episode of the Leadership 2.0 podcast, I interview Ty Wiggins of Russell Reynolds about his book ‘The New CEO – Lessons from CEOs on How to Start Well and Perform Quickly (Minus the Common Mistakes)’.

During our conversation, we discussed the following topics:

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Heroic Leadership – An interview with Chris Lowney

Many people in the workplace wrestle with combining their ethical and spiritual convictions on the one hand, with what they feel is required of them to progress their careers, or simply to stay in their roles, on the other.

For people who want to address this tension, ‘Heroic Leadership – Best Practices from a 450-Year-Old Company That Changed the World’ by Chris Lowney. ‘ will be a great read!

Chris Lowney, is a one-time Jesuit seminarian, who currently chairs the board of CommonSpirit Health, America’s largest not-for-profit healthcare system with 140 hospitals and more than 150,000 employees. Previously, he served as a Managing Director of J.P. Morgan & Co. in Tokyo, Singapore, London and New York.

In the 28th episode of the Leadership 2.0 podcast, I interview Chris Lowney about Heroic Leadership. During our conversation, we discussed the following topics:

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‘The Change Philosopher’ – An interview with Daniël Wolfs

🎙️ Even though we have a vast array of change management theories and methodologies at our disposal (John Kotter, Kurt Lewin, Elisabeth Kübler-Ross, William Bridges, ADKAR, etc.), it still proves to be very hard for us as leaders and consultants to implement real, sustainable change (transformation).

🚫 The harsh reality is that most change projects fail (the famous 70% of McKinsey), or end with a superficial victory declaration, after which the organization often falls back to ‘the way we DID things here’.

⁉️ ‘Why is that?’ That very question drove Daniël Wolfs, experienced change consultant and co-founder of The Change Studio (Netherlands), to write his thought-provoking book ‘De Veranderfilosoof’ (The Change Philosopher) on how we can approach transformation in a deeper, more human, and more sustainable way.’

► In our conversation about this book, we discussed the following topics:

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Leadership in the Banking Industry – Interview Ralph Hamers

The image of the banking industry has been severely tarnished by the financial crisis (2007-2008), which led to increasing regulatory and compliance demands. At the same time, the industry is experiencing emerging competition from FinTechs, evolving business models, and disruptive technologies.

In light of these challenges, I recently spoke with Ralph Hamers, to explore his views on what effective leadership in the banking sector entails.

In our conversation, we touched on the following topics:

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How FOUND is Disrupting Recruitment – Interview with Victor Akwunwa

In many recruitment processes, human beings are reduced to commodities, and human dignity has become an afterthought.

More often than not, recruitment has become a volume-driven exercise, where metrics like ‘time to fill’ have replaced the craftsmanship essential for identifying the best candidate for the role. As a result, candidates often find these processes unsatisfactory, as their potential unique contributions and value to organizations are not adequately recognized.

FOUND, a Swiss-based start-up company, wants to disrupt this traditional approach to recruitment. I recently interviewed Victor Akwunwa, the Chief Sales Officer of FOUND for my Leadership 2.0 podcast.

During our conversation, we discussed the following topics:

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The Company Culture of On – An interview with Alessandra Del Pino

There are some companies I deeply admire, and On, the Swiss sports and apparel brand is definitely one of them! Not only do they make amazing products and have an extremely powerful brand, they also have a unique company culture.

For this reason, I was thrilled to sit down with Alessandra Del Pino, Head of Engagement & Talent Growth at On, to discuss the company culture of On, or, as Alessandra describes it, their ‘secret sauce’.

During our conversation, we covered the following topics:

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Leadership lessons from a CEO – An interview with Jeroen van der Veer (Shell)

Twenty years ago, in 2004, Shell was hit by the reserves scandal. In the midst of this crisis, the board asked Jeroen van der Veer to become CEO and navigate the company out of this crisis. Recently Jeroen wrote a book titled ‘Van A near B – Lessen in leiderschap’ (‘From A to B – Lessons in Leadership’), in which he reflects on these, and other experiences during his long career (which also included for instance being the chairman of the supervisory board of ING during the financial crisis).

In this episode of the Leadership 2.0 podcast, I discuss with Jeroen:

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A successful corporate culture change requires leaders to be the change they want to see

Culture change is firmly back on the map! More and more companies are starting to reflect (again) what their culture is and what it should be.

More often than not, such a culture review is initiated by the CEO. The reason is that CEOs have a unique position in organizations: they often see both the current performance of the organization, as well as its unrealized potential. In case CEOs do not see this unrealized potential themselves, their Supervisory Boards, analysts and (activist) shareholders will point it out to them quickly enough.

Unrealized potential

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