Two year olds do it all the time. If you’ve ever spent some time with one, you’ll know what I’m talking about. They are constantly asking “why?” Over and over again, until you run out of answers, and to the point of frustration.
So. Uh. Why?
A mother had the very same question. She asked an expert, “Why does my toddler constantly ask ‘why?’” What the expert had to say is actually pretty enlightening:
Children are inquisitiveness because their minds are expanding quickly, and they are curious about the world. They are starting to understand the concept of cause and effect — that there’s a reason for almost everything. It’s also a way for them to engage you in conversation, and keep you talking. If you get tired of the constant whys, don’t simply fall back on “that’s just the way it is.” Instead, try to deflect them by asking her what they think. The answer may amuse you, but try not to laugh — their minds are really working in amazing ways as they put together what information they have about the world with a toddler’s fertile imagination. (source)
Huh. Maybe these toddlers are on to something?
- They see there is a reason for almost everything.
- They want to engage you in conversation and keep you talking.
- They won’t tolerate “that’s just the way it is” for an answer.
- Their minds work by combining outside information with wild imagination.
Sounds like some good advice. How can it be applied to business and life?
Michael Porter says that “the essence of strategy is choosing to perform activities differently than rivals do.” Strategy is simply this: If we do Y, then we’ll achieve X. We want to be at X because X will differentiate us; Y is our action plan or activity system. So we can create a strategic plan to answer the the “how?”
But the real question should be “why?” Why do we want to be at X? If we don’t know this, we may find that, when we get to X, it’s not where we wanted to be at all. So how do we choose the right strategic position? How do we know which direction to go in? And how do we make sure the destination we choose is in fact where we want to be?
It takes insight and creativity.
Insight is a penetrating vision into the heart of things. It reaches beneath the surface and outside of conventional boundaries to grasp the essence of what must be done. - from the book “Conversation Capital: How To Create Stuff People Love To Talk About
It’s a case of challenging assumptions and expectations, and moving past preconceptions. Insight, and thus strategy, comes down to a deep understanding and appreciation of the answer to the question, “Why?”
In the case of strategic innovation, Starbucks, Wal-Mart, Costco, Southwest Airlines, Apple, and Lululemon are all great examples. Each company has a strategy that is based on a unique insights derived from the answer to the question “Why?” But my favourite example is Clayton Christensen’s Milkshake. In his case study, he asks why do people “hire” a milk shake?
The point is to understand WHY someone buys the product, not WHO buys the product.
He found morning commuters wanted a distraction on a long commute; something to tide them over until lunch. They wanted something they could buy quickly, consume easily, and have for the whole ride. Another group, the afternoon dads, wanted the milkshake to please their kids, without it taking too long for the children to finish the shake. These insights enable the creation of two diametrically different milkshakes that will best-serve each group. If you have 6 minutes, you can listen to Mr. Christensen talk about it here:
Companies or brands that are looking to innovate need to constantly be asking (of themselves and others):
- Why do/did we exist?
- Why do/don’t people care?
- Why are things changing?
What about in entrepreneurship? The same holds true. A couple months ago I attended a talk by Dr. Paul Kedrosky. He’s an analyst for CNBC, a columnist for TheStreet/RealMoney, and the editor of Infectious Greed. He said entrepreneurs must be able answer 3 Whys:
- Why this? –> Your Unique Value Proposition
- Why you? –> Your Team
- Why now? –> Market Size, Trends and Timing
If you can’t get the answers to these 3 Whys across in a pitch, you’re wasting your time.
So there’s asking “why?” for innovating within a company and for starting a company. What about in regular life? In choosing the way you’re going to live your life?
In this regard, I love what Timothy Ferriss, author of “The 4-Hour Work Week,” has to say. I’ll end off with this story, which is quoted in the book, and is great food for thought:
An American businessman took a vacation to a small coastal XJLMexican village on doctor’s orders. Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisher- man had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish.
“How long did it take you to catch them?” the American asked.
“Only a little while,” the Mexican replied in surprisingly good English.
“Why don’t you stay out longer and catch more fish?” the American then asked.
“I have enough to support my family and give a few to friends,” the Mexican said as he unloaded them into a basket.
“But… What do you do with the rest of your time?”
The Mexican looked up and smiled. “I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, senor.”
The American laughed and stood tall. “Sir, I’m a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.”
He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. Y ou would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventu- ally New York City, where you could run your expanding enterprise with proper management.”
The Mexican fisherman asked, “But, senor, how long will all this take?”
To which the American replied, “15-20 years. 25 tops.” “But what then, senor?” The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.”
“Millions, senor? Then what?”
“Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos…”
So, why do you do what you do?