Our "Why" at ZTEC Instruments

Simon Sinek's book "Start With Why" argues that we are driven by "why". Decision-making is emotional and we use reason to justify our emotional decisions. Sinek supports his theory with a biological argument that decision-making is centered in the limbic system at the core of the human brain. The limbic brain is the most primal part of the brain and is responsible for emotion, behavior & long-term memory. Language and reason occur in the more developed part of the brain called the neocortex. We use reason to justify and rationalize our emotional decisions, but all decisions are based upon emotion.

Great companies start with a "why", and this "why" emotionally connects with customers and workers alike. We purchase products that resonate with our identity and values. We purchase products from companies that are aligned with our beliefs. Sinek states "People do not buy what you do, they buy why you do it." In regards to work, we all want to be part of something greater than ourselves. If you hire people who believe what you believe, work takes on true meaning and purpose. An organization aligned in its "why" provides the passion and drive to accomplish great things.

And, this is our "why" at  ZTEC Instruments.  We believe in individual contribution, contribution to our customers, to our industry, to our community, and especially contribution to the professional development of a superior workforce. We believe that a talented and highly-motivated group of people can change the world. We have the passion and drive to do extraordinary things. How we do this is through rapid and focused innovation. What we do is manufacture wireless test equipment.

Outliers

In statistics, an outlier is an unusual occurrence that falls outside of the normal statistical distribution. These random and rare occurrences often seem inexplicable. Consider rolling dice and getting snake eyes 100 times in a row.

Malcolm Gladwell's book by the same name, Outliers discusses unusual patterns of achievement and success. In the book, Gladwell identifies logical causes for what would otherwise be considered statistically impossible events. He identifies cause and effect relationships for statistical outliers.

How The Mighty Fall

Last week, I went to select a book for a short trip that I could easily carry and read quickly. Two books in my need-to-read pile fit this criteria: "Only The Paranoid Survive" by Andy Groves, and "How The Mighty Fall" by Jim Collins. At the time, I did not consider that these two books addressed the same topic. Both discuss challenges facing companies, and explain that some companies rise to the occasion while others falter. Andy Groves describes how Intel transitioned from memory to microprocessor, dealt with a Pentium flaw in 1994, and managed through the explosive growth of PCs. Intel overcame these potentially catastrophic events thorough disciplined pursuit of its core business philosophies. Jim Collins studies great companies that stumbled or failed in an attempt to understand the underlying causes of business decline.

The Discipline of Market Leaders

I recently gave a colleague this classic book on business strategy by Treacy & Wiersema. Although I will not go into detail about the book's content, I do recommend it to anyone involved in defining business strategy. In brief summary, the authors provide compelling evidence that market-leading companies have single-minded focus on one of three value propositions:

1. Product Leadership
2. Operational Excellence
3. Customer Intimacy

Goal Setting

Over the past few months, my management team and I have been working on our 2012 Operating Plan. We are in the process of defining our goals, metrics, and budgets for 2012. This process, which we do every year, is always a combination of analysis, strategic thinking, constructive conflict, and some educated guesswork.

Start With Why

Simon Sinek's concept about "Start With Why" provides a compelling perspective on culture and values. Sinek argues that all people are driven by a why, also known as a purpose or cause. He supports his theory with a biological argument that decision-making is centered in the limbic system at the core of the brain. The limbic brain is the most primal part of the brain and is responsible for emotion, behavior & long-term memory. If the limbic brain is responsible for decision making, then all decisions are emotional. Language and reason occur in the more developed part of the brain called the neocortex. We use reason to justify and rationalize our emotional decisions, but all decisions are based on emotion. Sinek argues that great companies start with a why, and this why incites emotion within the limbic brain from workers and customers alike.

Marketing: Value or Pain?

Every time I discuss our value proposition with a serial entrepreneur friend of mine, he stops me to ask "where is the pain?" And, he is absolutely correct. His point is that alleviating customer pain is a much more effective strategy than just offering value. Think about it. You will act immediately to avoid pain, but may put off something that adds value. Value can be a nice-to-have whereas relieving pain in an immediate need-to-have. Pain will absolutely cause customers to buy your products or services.

Execution Matters More (than Strategy)

What is execution?  Execution is the ability to get things done and to drive results, even in the face of unexpected obstacles.  It is the ability to make decisions and solve problems that ultimately result in achieving strategic goals.  Strategic goals focus activities on success, but single-minded attention to flawless day-to-day execution is how success is achieved. 

Strategy Matters

Having well-defined goals and a strategy to accomplish those goals are critical to any achievement.  Without goals, you are on a journey without knowing your destination.  Without a strategy, you are on a journey without a map.  Lacking either, you will not get where you are going, and you will not know it if, by chance you get there. Unfortunately, I had to experience the consequences of not having a strategy in both mountain bike racing and in business.