Experts of Experience - Why "Feel First" Leaders Outperform Everyone Else

Episode Date: March 18, 2026

Most leaders build strategy around data and decks — and then wonder why nobody commits. Matt Marcotte has spent 34 years watching this pattern repeat across 200+ companies, from Apple to Salesfor...ce. His conclusion: real commitment starts with emotion, not logic. In his book Built on Belief, Matt lays out a deceptively simple mental model — heart, head, hands (feel, think, do) — that explains why culture breaks at scale, why AI-perfect content repels instead of attracts, and why the companies that invest in belief outperform everyone playing the metrics game. Key takeaways: - The brain is wired to feel first, think second, act third — leaders who reverse this order get compliance, not commitment - You cannot give what you've never received: employee experience must precede customer experience - As AI commoditizes execution, belief and human connection become the true competitive advantage - The 3 C's (Clarity, Curiosity, Connection) give leaders a practical framework for aligning teams around purpose - Metrics replace purpose when companies scale without vetting for belief — and that's when culture dies Connect with Matt Marcotte: Matt’s LinkedIn: linkedin.com/in/mamarcotte/ Matt’s Book: https://a.co/d/065v7O29 Website: m2collaborative.com/ Email: matt@m2collaborative.com Expert of Experience is hosted by Lacey Peace and made by the team at Mission.org. Chapters 00:00:00 You Can't Give What You've Never Received 00:02:21 The "Rational Consumer" Myth and Becoming a Consumer Anthropologist 00:08:38 Heart, Head, Hands: Why the Order Matters 00:11:05 Why Startups Lose Belief at Scale 00:16:37 The 3 C's: Clarity, Curiosity, Connection 00:21:43 You Can't Give What You've Never Received 00:32:22 Patagonia, Starbucks, and the Power of Alignment 00:38:11 AI and the Rebellion Against Perfection 00:43:03 Outsourcing Meaning vs. Building Confidence 00:50:39 Lightning Round: Physical Spaces, Talking to Strangers, and Built on Belief Experts of Experience is a Mission.org production. To discover more shows designed to educate, inspire, and entertain, go to mission.org.

Transcript
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Starting point is 00:00:00 If you actually look at the science, we're wired to feel first, think second, and act third. The part of your brain that feels moves faster than the part of your brain that thinks. Whatever the brand, whatever the industry, you cannot give what you've never received. You want people to deliver an experience, but if you want those things to happen externally and you don't actually create them internally, people can't reflect what they've never seen. tend to leapfrog over the internal customer, the employee, to focus on the external customer. You actually build a team of committed individuals, of people who want to be there, they will go above and beyond. And oh, by the way, they will do it on their own.
Starting point is 00:00:49 Where we're seeing the challenge with AI is when it's trying to outsource meaning and purpose. AI is great with efficiency. And gray as a co-pilot, the challenge. is when it replaces the experience. People who lead based on head, which is, I'll do what you say as long as you're on top of me, versus people who take ownership to say, I see myself in this, I want to be there, I feel this, I'm with you. That comes from the heart. When you're leading organizations, you have to get people actually interested in why before they're actually interested in understanding what and how. Welcome back to experts, experience. I'm your host Lacey Peace and today I'm joined by Matt Marcotte, author of Built on
Starting point is 00:01:37 Belief and founder of M2 Collaborative. Matt has spent more than three decades building, scaling, and advising brands, including working across 200 plus companies during his time at Salesforce. What I love about Matt's work is that he doesn't just talk about experience in theory. He's obsessed with how humans actually behave, how belief, emotion, and culture drive what customers and employees do when no one's watching. Today we're learning a mental model you can reuse immediately to elevate your CX, EX, and frankly, all your human-to-human relationships. So Matt, welcome to the show. Thank you so much. It's so great to be here, Lacey. Before we dive into all the stuff that I know we're going to be covering today, Matt, I kind of wanted to take you on a down of memory lane with me for a
Starting point is 00:02:21 second. So imagine me, young, like, 19-year-old in my first Econ 101 class. And I'm learning about what we call the rational consumer, as we've probably all experienced in business courses, right? And it's this idea that there is this human that's perfectly logical who makes decisions based purely on price signals and incentives. And while I loved economics and I really enjoyed that class, I never thought that that made sense to me. Like, oh, humans are just rational beings that act in this way. So I'm curious for you, was there a moment either in education or in business where you're like, this is kind of a weird assumption that we're making. I was actually an econ major.
Starting point is 00:03:02 Wow, perfect. So I know that theory very well. But you know, it's interesting. There's another theory in econ that is actually very specifically based on financials. And it's the curse of the middle class, they call it. And so essentially the theory is it's about risk being risk-averse. And people who have no money are not as risk-averse because they have nothing to lose. People who have tons of money are not as risk-averse because they have tons of money.
Starting point is 00:03:26 in the middle are very risk-averse because 10% change in their salary affects how they kind of can support their families and all those different things. And so to me, I've used that for years because I think it speaks to even though it was a financial model, the risk part of it was emotional. And you realize that people really do make decisions emotionally first and intellectually second. So even in a quote-of-quote science that was very much based on supply and demand and all the different formulas that, as you said, would be rational. So much of what we do is based on how we either feel or how we see ourselves in a way that is not rational first. So I think for me, those were the early forming kind of ideas in my head that really helped me
Starting point is 00:04:16 to kind of find my way into what I do today. So give me a little bit more scope of kind of your career from there? Like, what was the career arc? And how did you end up? I know you ended up at Salesforce, and then obviously writing this book. Yep. So I spent 30 years in the retail world. And the great thing was I was able to see different parts of the business, meaning I did department store. I went to Gap and did specialty. I was at Apple to do technology. I went to Torrey Birch, which was aspirational luxury. I then ended up at Bergdorf-Goodman, which was obviously luxury. But the idea was for me, kind of look backwards in my career, I was really fascinated with why people behave the way they do. So I refer to myself as a consumer anthropologist.
Starting point is 00:05:02 Oh, that's such a cool title. I know, right? I've given it to myself. I really try to understand why people behave in the ways that they do. And from a brand perspective, how do you find ways to connect better with the customers that you want to be connected with, to create relationships where they become the advocates for your brand. Apple obviously is probably the best example of a culturally relevant brand where people, they were obsessed with Apple in so many ways that were just emotional, right? So how do you scale
Starting point is 00:05:36 culture when we have explosive growth? And then when I went to Tori, I'd never worked for a privately held company that was small. So how do you actually take a founder-led company and help to build that company without losing the DNA of the founders kind of believe? belief system. And, you know, there was explosive growth as well. And then in at Bergdorf, it was how do you take this venerable, probably one of the most valuable luxury assets in the US, if not the world. And how do you reinvent a stale brand in a way that doesn't alienate the core customer, but brings it into the world in a modern way so it can actually continue to be relevant for years to come? The reason I moved to Salesforce is because the world,
Starting point is 00:06:22 as we all know, was going technology. And really, it was becoming a bigger and bigger conversation. And one of the things about retail is they have champagne taste and beer budget. So there's a lot of talk about technology, but not a lot of investment or hadn't been. And I was like, if this is the way the world is going, I need to learn. And I need to become more fluent in what it means to be a technology player. And so I was able to move over there and lead what they call the industry advisor team, which is a bunch of people like myself who came from owning P&Ls.
Starting point is 00:06:50 and we served in this kind of consultative role where we helped to make the case for change to the partners across different industries. Yeah. And then I kind of decided I really wanted to do what I'm doing now, which is how do you unleash human potential? So I really help leaders, teams, brands, find their voice, get super clear on their North Star, and then how do you scale culture in a way that actually gives you repeatable and profitable results? What I love about the through line of your career is this call back to the core, like, what do humans care about? You know, where does this emotional pull, the belief, culture come from?
Starting point is 00:07:28 But then you don't leave it there. You're like, okay, but how do I scale that, which is sort of the business function of how do I take that and go with it? A lot of people like to talk about emotions and human psychology and talk about how they fold that into their business. But I think it's really difficult in action to take those beliefs and understandings and actually scale. them across organizations in a way that the leadership team buys into and the customers buy into. And then as you mentioned with one of those brands, doesn't alienate the existing customer base that they already have. Yeah, it's interesting.
Starting point is 00:08:00 I refer to what you're talking about as how do you operationalize belief, which seem like the biggest oxymor, like they should not go together. But to your point, it's critical when you're running businesses to figure how to drive results. And so what you're saying is so true, it's how you drive those results and why those results happen. That's the really interesting part to me, because the more you understand motivation and the core of what you're trying to actually do, the more you can actually control it and the more you actually can actually intentionally help to drive and deliver on it. Yeah, yeah, absolutely. Well, I want to get into the framework that you have in your book, my brain, and this is just proof of what you're,
Starting point is 00:08:44 you're saying. My brain keeps messing it up. I keep thinking it's head, heart, hands, but it's heart head hands, right? And even whenever you Google it, it'll flip them around. It reverses them. Yep, it'll take the heart and put it second and the head first. So I'm curious, why does this order matter so much to you? I think for the reasons we just started talking about, if you actually look at the science of how people's brains are wired, we're actually wired to feel first think second and act third. In fact, the part of your brain that feels moves faster than the part of your brain that thinks.
Starting point is 00:09:23 And so when you think about even just back in the days of the saber tooth tiger and the fact that something alerts humans to danger or like something, I don't know what it is yet, but I'm feeling something. I'm kind of, something is making me sit up and take notice. And then what I do is I actually make some sort of try to understanding of what's going on around me, right? Make sense of it. And then once I understand what that means, then I can decide how I want to act. And so just when you think about how people are built, that's how we're built. And so, you know, it's interesting if you're actually trying to get large groups of people,
Starting point is 00:10:00 especially, you know, in brands or in what, you know, for me it was a brand. So, you know, when I was at Apple, I had 25,000 people that reported up through me. And we were actually growing 50 stores a year. So we're like adding more and more people into the mix. So it's interesting when you think about people who actually lead based on head, that's actually asking people to understand something versus when you actually lead with the heart, you're actually asking people to own something, to commit to something, to believe in something. And so if you want people to comply, which is, I'll do what you say as long as you're on top. of me and kind of there's the carrot and the stick, that's actually an intellectual exercise.
Starting point is 00:10:45 But if you want people to take ownership to say, I see myself in this, I want to be there, I feel this, I'm with you, that comes from the heart. And so when you're leading organizations, you have to get people actually interested in why before they're actually interested in understanding what and how. I think it's something that startups get almost right away, right? Like if you have a 10-person team, you're just all of you, you're not making enough money yet to pay each other well, right? Like you're not even sure if this makes sense. And you're just going for it because of this vision that you have in your heart. And you keep rationalizing away what will come. But then when you start to scale and you get to like 100 people, a thousand people, 10,000 people
Starting point is 00:11:30 in a team, I mean, it is so easy to lose that that's still at the core of what makes a human motivated. I'm curious what you've been seeing with leaders whenever they're trying to build strategy. A lot of people like to default to data and decks and try to explain things to their team intellectually. But why doesn't that work even at scale? There's a whole part of our piece of my book, which talks exactly to what you're talking about, which is the startup as an example, right? Because to your point, it's all very much about belief. And so what's interesting is I always belief is actually the internal fuel, which is what makes you, there's an opportunity, a hole in the market, a better mousetrap that you can build, you believe you can do something.
Starting point is 00:12:14 And then you translate that belief into purpose. Purpose is what gives the company external manifestation of your internal belief that other people can rally around. And I think as companies scale go from the 10 people sitting next to each other, not getting paid, we're all here for the same reason, we're all, ah, the potential. And then you get to a certain amount of success and you realize you have to start bringing other people on professional management. What people don't do well is vet for the belief of the external coming in. And so what you end up having is people who bring their own beliefs, their own baggage, their own paradigms, their own experiences, which we all do.
Starting point is 00:12:52 It's what you hire for. But you don't do this alignment and kind of this kind of how do we integrate both of those so that there's not organ to reject. but there's organ acceptance. And so if you put enough people who are external into the company with these competing ideas or beliefs, what everybody does is actually defaults to the lowest common denominator of a North Star which is profit. And so this is where metrics start to replace purpose because we can all rally around a number, but if we all start to say, what do we hear for?
Starting point is 00:13:26 Why do we exist? You've got 17 different reasons in the room. And unless you actually harmonize those into one, and hopefully, hopefully it's the same belief that started the company, or at least one that's evolved in a good way, you create a completely different company. But people aren't comfortable with that exercise. It's messy. It feels soft.
Starting point is 00:13:47 Metrics, decks, and strategies are safer because they are easier to get your quote-unquote head wrapped around, but they are the second part of the conversation, not the first. So you end up actually leading to objectives, not leading to purpose. How do you hire for that, though? If I am someone trying to scale a team, how am I making sure that that comes through in the hiring process? Or is it maybe too difficult to do at that point? And you just have to have a pulse on it and see like, oh, we need to realign with the teams that we already have. No, I think it's very, well, I don't say it's easy. It's not easy. It's time consuming. But it's the right, it's how you decide to spend your time. So, for example, if you think about values of a
Starting point is 00:14:29 company, the things that the hallmarks of what makes us unique, what makes us different, is one example, is a piece of the conversation. Defining what those words mean and what they don't mean in context of your brand, your company, your whatever it might be is critically important. And most organizations don't do that. They have the word, we are about collaboration. They don't define what collaboration means for them. They don't define what it doesn't mean for them.
Starting point is 00:14:55 And when you don't do that, it's open to interpretation. So let's just say if you have five people interviewing the same person, they might all have different ideas of what collaboration means. and so they're going to actually look for those things. But if everyone knows what is important to the organization and the brand to succeed, that makes the culture what it is that helps you to fuel the results, then you actually build your process around mining for those things. You start asking different questions.
Starting point is 00:15:23 You start listening for different answers. You start putting examples. Like, tell me about a time when, and you allow people to give you kind of their experience and their perspective, but the filters with which you're listening are very, very clear. And what I find is that people tend to interview based on your resume, not on your beliefs.
Starting point is 00:15:48 And if you get the beliefs right and the resume's strong, that's a win-win, right? You assume people probably have the skills to do what you're asking them to do because that's why they're in front of you, hopefully, you've vetted the right way. but you've got to then go one step further, which is the bigger double-click up, which is what do they actually believe?
Starting point is 00:16:07 So I think most organizations that I've interviewed with, the ones that I haven't worked for did not do a good job of that. The ones that I did work for, if you listen to who I worked for, they were all incredibly culturally led organizations. Now I'm thinking about, okay, cool, I have this leadership team. Let's say I'm already at a point of scale, right? And I maybe didn't do this in the hiring process. How am I aligning the team? Do you have like, I don't know, questions that you tend to ask leadership, like leadership teams?
Starting point is 00:16:37 Yes. So I think there's three, I'll give you three Cs for this conversation just to make it super easy, which is clarity, curiosity, and connection as an example. So clarity is let's get clear on what we're solving for. So to your point, if you have a team that's kind of all over the place, you're not where you want to be, first of all, where do you want to be? What is the stop backup and say, what is, what is perfection look like? What is our North Star? What is like the ideal situation, the ideal brand, the ideal culture, ideal results, all those things, right? And you do that so everyone's super clear about what it is we're striving for. And then there's a distance between where you want to be and where you are.
Starting point is 00:17:22 And that's where curiosity comes in to really understand from the people that are on the team, how do they see themselves? What do they think the North Star is? Where do they see the opportunities? Where do they feel like we haven't lived up to this? Where's the distance? So you start to get clarity around the work, which is the distance between where you want to be and where you are.
Starting point is 00:17:43 And what I find is most companies don't do the second part, which is to say, where are we today? They pontificate on the North Star without understanding what they have to do to actually bring people towards it. And then the third piece, once you've done those two, is connection. And connection means that all the people that have to help to be part of the success of the strategy
Starting point is 00:18:04 of the vision, of the purpose, of all the things we talked about, do they have the tools, resources that they need, and the authority and responsibility they need to be able to do that, meaning you bring people along with you, you create co-creation, you have people be part of building because people want to have skin in the game if they're the right people. the ones that don't, then you realize, you know what, this probably isn't for you. And then you have to have the tough conversations about aligning what you want with who you have and what their desires are. What I like about that 3C framework is it also maps almost perfectly to the heart head,
Starting point is 00:18:43 Hans conversation as well, right? Yeah. It's, okay, where are we at? What's our vision? Where do we want to go? The heart piece, the head, okay, logically, where are we right now? And how do we get there? And then, Hans, what do we need to do?
Starting point is 00:18:57 to get there, right? Correct. Yeah. And you know I find, Lacey, it's interesting. One of the things that's super important when you're getting people to understand is speaking in language that is relevant to them. And so to your point, either I have 15 different ways to say hard head hands because for some people they get it, for somebody like, this is way too soft for me.
Starting point is 00:19:20 But as you just said, saying it in different ways, it means it can click for somebody in a different way. and that's the point is to be able to connect with that person in a way that means something to them, not forcing them to speak your language. No, that's brilliant. Have you noticed any difference between, because you've worked with so many different companies, has there been a difference with certain industries where you're like, okay, whenever I'm working with this kind of industry, I definitely need to like use this language.
Starting point is 00:19:46 Whereas whenever I'm working with retail, maybe they're more okay with that like heart, head, hands sound, you know, sound. I'll answer this in two ways. This is my caveat. leadership is very individual. So there are people that I work with in every industry that get it. There are people have worked with that don't necessarily get it. There are people who are in the middle.
Starting point is 00:20:04 So I don't want to paint with too broad a brush. But if I do, I would say that the industries that are more data-driven, so think financial services, manufacturing, engineering, a lot of those industries, the currency in the, the industry is data, logic, formulas, algorithms. And so there's an environment we all live in. Retail, you know, one would think is actually more people focused, but really retail is product focused. So they're not necessarily any more sophisticated. There's usually just, there's a need to get people who are paid less to do more. So when you're talking about frontline employees, when you're
Starting point is 00:20:55 talking about stores, when you're talking about, you know, retail tends to be a lower kind of paid industry in a lot of ways. So the way you actually hopefully motivate people is through culture. So I think there's a reason why you see it maybe a little bit more. But as you start to help them understand the need for reframing based on what they're trying to accomplish, people jump on board. People are going to jump on board if they believe it. Not everyone believes it, right? And that's okay. I mean, it's not okay, but it's, I mean, you know. Yeah. What I do love is you teed me up perfectly for my next question, Matt, is how do I take this methodology? Because we've talked a lot about like internal leadership, right? Getting your team to believe in something. But how does that
Starting point is 00:21:39 actually leak outside of the organization to customers? I have this belief and it's based on marketing campaign from the 90s for cheese in California. So this is very sophisticated. So everyone and listen up. And the marketing to handle was happy cows make happy cheese. And so I don't want to offend anybody by calling them cows, but this is how I would talk to my teams about this, which is, or I would talk to my peers or I would talk to leaders who I needed to influence to get them to invest, is that you cannot give what you've never received. And so when we want employees at any level of a company, whether it's in merchandising, whether it's in finance, whether it's in engineering, whether it's in the stores, whether it's in e-commerce, whatever the brand,
Starting point is 00:22:25 whatever the industry, if you want people to deliver an experience, to deliver some sort of sticky point for your customer to make them want to stay with you. So we all want customers to go from being transactional to loyal, right? We want relationships, all the things people talk about. But if you want those things to happen externally and you don't actually create them internally, people can't reflect what they've never seen. And so what you see brands tend to do is leapfrog over the internal customer, the employee, to focus on the external customer. And then there's just misalignment of, oh, we told the external customer this was going to be experience. They don't get that experience. They get frustrated. They get angry. And then they walk
Starting point is 00:23:14 away. So they're mad at the internal customer. But the internal customer was like, I don't know what to, I'm not given the tools. I'm not given the resources. No one's invested in me. Why would I invest in somebody else? And so for me, the way that it leaks out to your question is by focusing internally first. Because if you actually build a team of committed individuals, of committed leaders, of committed practitioners and executors, people who want to be there. They have, as I said before, they have skin in the game,
Starting point is 00:23:49 and they will go above and beyond, and oh, by the way, they will do it on their own. And so it's a kind of a simple idea which is really challenging to execute on at scale because the ROI can be longer term than some people are comfortable with.
Starting point is 00:24:10 It is interesting, though, that there are brands that have done such a great job at this. When I was younger, you know, in high school, college, I was working at random big companies. You know, like I worked at Lowe's for a little bit, Starbucks. And I felt like both of those companies did an amazing job getting me, even as a young adult, to buy in to like, oh, I actually genuinely want to help this person figure out what paint color they need for their barn or whatever, right? I actually genuinely want to do that because of how they train you and teach you and you learn about the whole like Lowe's story or the Starbucks story. You feel it. When you walk into a company or a big, you know, name your brand store, you can immediately feel like, oh, these people are all bought into this. They want to support me and I want to buy from them versus like you can go to the same store, a town over and whatever the management is like slightly different or something.
Starting point is 00:25:06 And you don't feel that way. So I'm always very impressed whenever I go into these larger companies that have successfully done it at scale. Yes. And this is the thing I think is so interesting. There are so many proof points like you're saying, you just named two of them for you. There's so many proof points where you see it works and you actually see what it does to your desire to participate and your desire to kind of be part of the brand and give them your money, let's just say, that it always amazes me that more companies don't pay attention. That somehow it's a, well, that's just over there. versus it should be kind of, to me, it should be a kind of foundational basic understanding of what we're talking about. You know, it's interesting. I was just in the airport last week coming back from a client meeting and it was in the Philadelphia airport and there's this, I'm flying out of the American
Starting point is 00:25:50 terminal. There's this one section, relatively new it looked like, but there were these three different kind of, you know, the newsstands type of situations that were on corners. And I'm sure they're probably owned by the same, you know, kind of company and whatnot. But I walked in and I'm just standing there trying to figure out something. I actually wanted something sweet, like something, like a cookie or something. But if you are in any of those, everything's supersized. They're crazy little big. And I'm like, I have no discipline. If I got by this, I will eat all of the gummy bears. I only wanted one, right? So this woman comes over and she's like, oh, hi, I noticed, is there anything that can help you with? And I was like, oh, my God, I'd say what I just said to you.
Starting point is 00:26:24 She's like, come with me. She brings me over to this like place where there was this one little, like a Reese's peanut butter cup thing in a bag. And I was like, oh, thank you. So I didn't buy it, but I was just like, why did she help me? Because it's so not the experience you are in an airport, right? I go across the way to the next one. I'm going to a gate and I'm just looking again. And someone else is like, how may I help you? I walked away and I came home and I was saying to my husband,
Starting point is 00:26:49 I wish I had more time or knew who these people were that I could get in touch with. They're like, what are they doing? Because the level of commitment and the level of engagement that the employees at an airport were giving me were so, so different than what I have experienced across the board in airports that it, like, it shook me in a way of like, what is happening? Like, is there an incentive they have? Are they competing against each other on the corners? And of course, it made me buy something because I just felt like I had to participate because these people were so nice. But your point, it's when you see it. I had a boss used to say, if you see it, it can be. So when you see these things happening, you know it's possible. And the
Starting point is 00:27:32 question becomes as companies, are you investing to make that happen? Oh, that's so good. That's so good. Okay, this is a random question for you. Have you started to use the word like intuition at all and whenever you're describing this kind of stuff? I have this gut feeling, this intuition about something. Like this, especially when you're a small startup company, you're like, I desperately believe this thing, even though I don't really have the data to prove that there's a reason for me to believe this thing. But then we're just constantly trying to justify our intuition. I think for me, the idea of belief is that word. Belief is... It's something that I just feel.
Starting point is 00:28:04 Like, it's who I am, it's what I believe. And then you have to, as you said, either prove or disprove whether it makes any sense. The word that I'm hearing more and I tend to be using more than I probably would like to because I'm not a big one for buzzwords. I find they kind of, I don't know, I don't like them because it feels very of the moment. But the word is signal. And so the signals in the system. And so to me, what I take from this part of the conversation is part of being a great leader
Starting point is 00:28:31 and I talk about being a consumer anthropologist is looking into the world to see what's happening. So, for example, you're seeing now, especially with Gen Z, this idea of going back to flip phones, the idea of malls have become important again. The word community keeps coming up. They're watching 90s television with their parents. They're sharing experiences.
Starting point is 00:28:58 There's signals in the system that would say that we are saturated with technology, we're saturated with siloed existence, we're saturated with loneliness, and so the human spirit is starting to push back in different ways. Now, to your point, I don't know if that's a widespread signal. I don't know if that's a trend signal. You know, you start trying to research all these things, but it makes sense to me because my belief, like you and I both talked to the beginning, is we're human. We're wired to connect. We're tribal by nature. There's something in us that while the world and technology wants to
Starting point is 00:29:39 rewire our brains, and it's doing a little bit of that, obviously, there's also a internal spirit that wants to be fully human. And so when you think about how you then express that in a company or a business, how do you create experiences which connect us, to each other, which actually play on and help to further humanity in a way that is relevant and appropriate for that brand relationship. I mean, it's such a hard question. And I mean, it goes so deep, too, because when you look at the history of humanity, it's one of connection, right?
Starting point is 00:30:19 It's one of, like, we've got this purpose, and we're all working together towards that thing. And I think it's what's elevated humans beyond other species, our ability to communicate, connect, empathize, storytell, right? And whether I'm out in the wilderness trying to hunt and gather, I still have my mythology that I'm tied to of like my belief of why am I doing this. I think we're just going to constantly create that for ourselves. And recently in the last couple decades, I think it's been through business because we've used to be like people were really into church and all that kind of stuff. But I think now it's more like, okay, there's other places that we're
Starting point is 00:30:53 putting our belief into. And so, how can companies leverage that to really create a great ecosystem for their employees, but then also, of course, hopefully help the bottom line. I just heard you say it when you actually finish that. And I feel the same way it's like you don't want to get, I don't want to become muddled and dirty and feel like it's like, you know, we're only doing it for the profit. But the reality is brands are about connection. People choose brands because they see themselves in that brand.
Starting point is 00:31:20 They like what the brand stands for. They like the aesthetic. They like the values. They like what the brand's about. You know, I mean, I feel. better about buying bombus socks because they donate one to someone needs them. Like there's, you know, that's okay. I mean, there's obviously they want me to buy more socks, but there's actually a payoff, which helps humanity as well, right? So to your point, it doesn't have to be either or,
Starting point is 00:31:39 can be both when it's done in the authentic, in an authentic way. But I think one of the reasons profit has become a dirtier word is because people see the way people are getting profit is not with any sort of integrity. There isn't a sharing with. There's a very small group of people that make a ton of money, and then there's the people that don't. I will talk about this idea of belief is that, you know, you have to align what you believe with what you say, with what you do, but how you act, your behaviors are always actual proof of what you really believe. And so where I think people get, we're upset is when there's a misalignment of you're saying this, but you're doing this, and I'm not stupid. Yeah. Yeah. Yeah. But the companies, like the
Starting point is 00:32:24 Patagonias of the world, who aligns. who they are and what they believe with what they do, people feel great about participants and want those companies to succeed. I don't know if you remember there was a Black Friday ad, I don't know, maybe 15 years ago. I'm dating myself here, but it was back when newspapers were still a thing.
Starting point is 00:32:41 And Patagonia took out an ad that said, don't buy a jacket for Black Friday. Don't buy our, because they wanted people to keep and utilize what they had. And they also then talked about, if you have an old jacket, bring it into us and we will actually, you know, kind of do something. And they were completely because because of who they are and because people know they have integrity,
Starting point is 00:33:00 they knew that that ad was actually genuine. I think they had like a 70 or 7. They had some crazy Black Friday weekend because people are like, I want to put my money with that company, not because they asked me to, because they actually did what was right. And now I want to actually participate more. And so that alignment of values and beliefs and kind of how we operate becomes super important to people wanting to participate, especially now. You mentioned something at the beginning of our conversation about long-term thinking.
Starting point is 00:33:30 I think that's what's really important here as well. Like Patagonia is not playing the short-term gains game. They don't want just one year to work well. They're like, we're building a business for the next century. How do we establish ourselves now in a way that's trustworthy and keeps people for generations, right? Because I, my parents were wearing Patagonia. I'm wearing it. My kiddos are going to be wearing it.
Starting point is 00:33:51 You know, like their kids maybe. It's just a different mindset of like, do I just want to sprint? for some cash in the short term. And then you have like a really hollow company with a lack of belief. Or do you want to build something for the long term that has some other core mission that it's trying to accomplish and it's not just cash. But cash helps funnel it. I think to your point, there's such a distance between no profit and this profit. Like there's a lot of gray area. But what you said is super important. It goes back to the same before about at some point when you, a lot of companies, when they keep bringing new people in or they just get bigger, they replace belief and purpose.
Starting point is 00:34:26 with metrics. And that's exactly what you're saying, which is like a Patagonia, at least everything that we have seen up to this date, is aligned and has continued to be aligned with why they exist. What the purpose of Patagonia, what it means to be profitable as their brand.
Starting point is 00:34:47 They define profit in different ways than other companies define profit, right? And so all those beliefs are the filters for decision-making. And that's why I said, like, your behavior ultimately shows what you truly believe in, not what you say you believe in. Which is uncomfortable even on a, like, human to human level, right? Because I'll be like, I believe in eating healthy. And then it's like your behaviors.
Starting point is 00:35:11 So that you just ate that entire thing of ice cream. So I don't know that you believe in being healthy. It is an uncomfortable thing to face as an individual, but also as a company. But I just love when people are radically honest. Like, no, look, here's your actions. Here's where we are. And it can help reset a company, too, because I've seen many companies kind of shift off path, maybe, and they seem to go into this, like, overload of metrics and KPIs. But then they'll get a really strong leader, leadership team come in and help realign or set a new direction where they're like, okay, this belief didn't work anymore for us, but this one will.
Starting point is 00:35:44 And, you know, there's a whole rebranding that needs to happen there. I think it's fascinating thinking about how some of these companies do it. Do you have any other favorite examples of companies that have done this really well? Well, it's interesting. You mentioned one earlier, which is Starbucks, and I think it's still early days, but I think the new CEO of Brian, I think he's done, I think the business has gotten stronger, which is great. And obviously, some of that's about, you know, kind of operations and costs and kind of streamlining. But when he came in, one of the first things he talked about in the interviews he was giving was that the company had walked away from the customer experience. When you think about what happened like during COVID, and, mobile ordering, which was always, you know, the idea of mobile ordering is also a throughput conversation, right? Like stores are busy, you know, dollars per square foot are important. How do you move more people through when they don't have to have to be there? And quite honestly, people didn't always want to sit there and wait and sit in those. So I understand like the idea
Starting point is 00:36:39 of mobile ordering super great, super important. I do it all the time. It's very convenient for me. But it became so over indexed on during COVID and the company that this idea of the third place, right, Starbucks is especially homework Starbucks. And so the third. And so the third, The third place was a gathering place, community. People, I remember back in the day, I'm sure you do too. Maybe you were one of these people. People would carry their Starbucks cup around after they had finished their coffee and put the coffee from the office in the Starbucks cup because they wanted the association
Starting point is 00:37:09 with Starbucks, right? Those days have gone away. And I think what they're trying to do on their own level, that's why, you know, the whole writing on the cup, which one can argue whether that's actually too manufactured versus being organic or not. But the point of it was, how do we get back to this kind of. of more organic or human connection in a moment with other humans. And so I think what they're trying to do, obviously, is to find the balance, but to realize that part of what made Starbucks special
Starting point is 00:37:36 was that sense of community. And community, which is a emotional construct, right, a relationship construct, they see the power in driving more participation, more purchase, more loyalty, more profit. And so it'll be interesting to see how it all kind of pans out. But to me, I think it's interesting. As you said, when companies go off the path, how do they get back on? And also how transparent are they, as you said before, about even saying we made a mistake. We got to get back to who we are. What I want to get into now, Matt, is the opposite of everything we've been talking about,
Starting point is 00:38:14 which we've been talking about humans and belief. And what do you think I'm going to say? I'm going to say AI. So I would like to start to hear your takes on AI. I cannot get through a single episode without dropping that phrase. AI writing the perfect marketing copy and perfect emails and perfect customer service responses, but people are just rejecting it because you can tell. It's almost too perfect to be human.
Starting point is 00:38:38 And so I know you and I, when he last chatted, we kind of spoke about this briefly about this almost desire for imperfection that we have now that AI is kind of taking the reins of a lot of different things. So I want to hear kind of your take on this. As we discussed, LinkedIn's a perfect example of where people feel like we've outsourced our opinions and our narrative to AI for efficiency sake. And what's happened is, as you said, people know.
Starting point is 00:39:03 I mean, they can tell, which I think just speaks to the whole human spirit thing. We have, as you said, instinct and intuition are like, that doesn't seem right. I mean, it's lovely, but it's not real. I feel like where we're seeing the challenge with AI is when it's outsourcing meaning or trying to outsource meaning and purpose. I think AI is great with efficiency. And gray, as a co-pilot, as an editor and as a kind of a thought partner, I mean, I think I use AI a lot because it helps me to kind of think about things. But it's not meant to stop there and say,
Starting point is 00:39:38 oh, great, now post this or, oh, that's the answer. It's more of a, oh, think about it a different way or what's the word I want to use or maybe that's one or whatever. So as a partner and as a potentially outsourcing tasks and making life more efficient to give me more space and room to connect more, I think it's great. And I think it's important. I think the challenge is, exactly said, when it's, when it replaces the experience. And so you're hearing, what you're seeing, as you said, with a lot of people pushing back is there's been a lot of conversation now about what are the things that make us human. So whether that's emotional intelligence, purpose, building meaning,
Starting point is 00:40:20 being able to, emotional intelligence in the way of being able to understand each other, nuance, all those things are where people are looking for. And in the world of imperfection, like we were talking before about Etsy, there's all this kind of uptick and buying crafts or crocheting
Starting point is 00:40:38 or all these different little signals again in the system where people are looking for things that aren't manufactured at, scale, but are soulless. We want soul. We want that ability to say, oh, I see you, I feel you, I connect with you, I see myself in you. And that's a human experience. And so people, I think, are really resonating more with imperfection. In fact, it's funny, I've started to see, and I don't know if I'm just so close to this in a way of I'm, it's in my head. So I'm, like, you start to look for the signals you want to see, right? Yeah, yeah. Totally. I have my
Starting point is 00:41:14 cognitive bias. But, um, but I'm starting to see. different creators and not ones I follow, but sometimes you see them served up to you, all of a sudden talking about the challenges they've had, or this didn't go well, or the video shows them having to do it twice, and I'm like, is that, once again, an artificial construct because they realize there's not that people want that, or is that realizing that people actually respond better when they see it's what the reality looks like? So I think AI is critically important. I think we all have to learn how to use it, use it the right way. But what's interesting, the way that large learning models work, right, is they actually look back and they actually
Starting point is 00:41:54 take everything that's in the system and figure out how to create predictions and all those different things. But in some ways, and this is an oversimplification, in some ways it aggregates and generalizes and finds the middle. So what it's actually giving you is the common answer would be, the common, the most likely prediction would be, they're not the ones that are most kind of groundbreaking or the ones that are most innovative or the ones that are most kind of off the, you know, go on the left side or whatever you want to call it. And so you end up with this kind of sea of sameness and its commoditization of narrative. And so we have to be very careful about what we allow it right now to do for us because it's creating generic,
Starting point is 00:42:41 experience, I think. One of the things that I think AI is probably not the best at, which is something you've been hinting at, Matt, is novelty. So it can't come up with novel ideas necessarily, unless I'm prompting it in a certain way, which really means that I'm giving it the ingredients for it to be able to process that information and create something a little bit more novel or new. But if I'm not giving it good, raw ingredients or creative ideas as the human prompting it, you're going to end up with what you've just said, which is that like sea of sameness, right? And I really dislike this idea of not just businesses, but people outsourcing belief. Yeah. This is the hard thing about being human is like, I have these challenges in my life. And then I have to sit and think about those
Starting point is 00:43:26 challenges. And in that process of reflection and sitting with them by myself, maybe journaling or doing whatever going on a walk, I come up with this like idea of, oh, this is how I should have handled that or this is what this kind of means. And I create meaning for myself year after year after year that makes confidence in who I am, what my core beliefs are, what my like moral compass is. And as a company on a larger scale, it's kind of the same thing that happens, right? It's like we face this challenge as a company when we were little and now we're growing and now this is sort of solidifying what I think is important based off customer feedback and all this stuff. But if you're trying to circumvent the long, hard process of creating belief for yourself or for your business by using
Starting point is 00:44:10 a tool to condense that timeline down really short, I don't think that you're going to get an output that's actually going to create people, like a belief structure that people want to buy into over the long term, because it's just artificially created for you. I love everything you just said. So there's so much there we could unpack. So I hope everyone just listen to that. But there's two things that I think come to mind first, which is what you say like if we treat meaning or purpose or clarity as a task, we're dead in the water. And the task is when you outsource it for efficiency sake. It's like, I need to get this off my plate. So let me check. Look, found my meaning. Done. The walk in the woods, the taking the time, you know, it's why they
Starting point is 00:44:53 always say like when you're in the shower, you have all these ideas come to you because you can't because you can't bring your phone in there. But the idea of actually being present and being still and allowing your brain to go, the ideas to go into the subconscious, which is where you actually form what you're talking about, takes time, like you were saying, I'm sure you've read about this too, technology, not just social media, but obviously it's a huge part of this. There's so much information coming at us at one time.
Starting point is 00:45:24 Your brain has to be able to absorb that information without exploding. So what your brain only has so much real. estate. So what it's done, according to the research that I've read, is the frontal lobe, the part of your brain that actually takes in information, has taken more real estate. And where it's taken real estate from is the part of your brain in the back, which actually is where you actually can concentrate. And so when you see people who have more ADD, more inability to sit in the moment, and I'm not talking about talking about people who really have ADHD. I'm talking like the general population. That is a direct result of our muscles are now built to do this fast, fast, fast,
Starting point is 00:46:09 fast, fast, fast, the slower that is almost, we've lost that muscle and we have to retrain it. So if you've ever been in a meeting, I was just actually in a meeting a couple of weeks ago, and it was an actual session that required people to think. whenever there was a lull or a break in the session where we wanted them to do something, I would watch and the majority of people would get their phones out and start scrolling. And so this was like a 90-minute session, too, by the way. This is not like five hours. And so when you realize what you said, which is the ability to actually divine meaning,
Starting point is 00:46:45 to be able to marinate an idea is to create something that's actually kind of got some texture to it and some real like kind of heft requires time. And I think what we're seeing is we are all kind of now rewired to want immediate gratification and not have the ability to actually concentrate or stay in the moment, which is really unfortunate. We're going to rebuild those muscles. I've started reading again, reading long form books. Same. Yeah. Because this helps your brain to stay in one place, right? Because I read a lot of articles, but it's a, once again, it's a quick dopamine hit. Yeah. And so yeah, for me, that's like I'm trying to do things like that to reverse the kind of skills or muscles that I've built. as a mom, I think about this a lot with kids. I'm like, I want them to build confidence. And I think if we cut too fast to the solution, you don't have the opportunity to build confidence in yourself. It could be as simple as I need to make a meal for myself. And rather than take the few ingredients in the fridge and throw them together and see what happens, I'm going to Google GBT, send a picture in my fridge and let it, you know, tell me, here's a recipe that you can make, right? But what's going to build confidence and fun and joy over time?
Starting point is 00:47:58 I know it's like, again, a personal example, but I think almost all these things with how we operate on a one-on-one level is, yeah, how it applies to business as well. I've always said you don't leave yourself at home and find a different self at work. You bring yourself to you wherever you go. I work with a lot of companies on how do you build strategy, right? Which is essentially this idea of build a bigger idea about what is it you're trying to accomplish. And what I find is a lot of companies have what I call a bias towards action.
Starting point is 00:48:28 And it's that ready fire aim mentality. And there's two parts of your brain that work. Let's just for the ones I'm oversimplifying, but this is kind of true. There's a part of your brain that does the strategy piece, which is thinks about ideas and imagines things and kind of uses kind of this more expansive. And it's like, what if and all those different things. And then there's a part of your brain that actually goes to execution, right? The tactics of things.
Starting point is 00:48:54 They don't work in tandem, meaning they can't both be open exactly at the same time. with the same energy. So as soon as you move from the strategic brain to the tactical logistic brain, the strategic brain shuts down because the energy it takes to do the tactics is more energy than the strategic brain has to be able. So my point is, it's like when you're in a car
Starting point is 00:49:14 and you're on the phone with somebody talking and all of a sudden you get off the phone and wonder how did I end up here? It's because your brain can't multitask. And so the less time you spend in that area, which is like I said, ideation and the what-ifs, and thinking and dreaming and just being in a bigger place of, you know, kind of the conceptual, the more apt you are to come up with worse answers.
Starting point is 00:49:41 So you've got to front load the work on the strategic, the dreaming, the bigger picture, and not go immediately towards the execution, the tactics, the logistics. And I always say, like, if you don't spend the right amount of time up front, you end up with cleanup and aisle 7 in the back end. And so companies which say we don't have time for all of this kind of what they would call softer, whether it's building culture or creating strategies, being clear on the North Star, making sure everyone's aligned, being curious, connecting, and they want to move just to action, the last time you send front loading the important things and just focus on the urgency. things, the more time you spend fixing all the mistakes you could have actually avoided had you spend more time up front. And so that becomes a belief that you have to actually be able to invest in as leaders. But it kind of bears itself out every single time. Well, Matt, I know that we're coming to the end here. I like to end the podcast with a quick lightning round. So I'm going to
Starting point is 00:50:47 ask you a few quick questions. Yes. And the idea is that you answer quickly. So I'll start with the first one around your experience. So you've spent 34 years building brands. Was there one moment or decision that changed your trajectory of how you think about leadership? Yeah, I think it was going to, from the office to the stores, meaning when I finally worked with people as the kind of, that was the people of the product, the human capital side, and realized the excitement I had around that connecting, but also the ability to actually do amazing things with a great team of people. around you and making them successful was how I actually then achieved my success. So I think that was probably a key turning point for me and what I do today especially. All right. Next question.
Starting point is 00:51:33 In office, remote or hybrid, do you think are the future for companies? Hybrid with intentional and deliberate reasons for being together versus just because you want them to be in an office to check a box. I've mentioned now several times. I'm a mom and I always ask my guests at the end of our interviews, what skills should I be thinking about with raising my young children? Okay, I become obsessed with this. And this isn't my idea. I actually heard this and I love it, which is the ability to talk to strangers. It's not how we're living. We live in our phone. We live with people. And so building connections and having confidence and being comfortable, getting to know people is so important. Okay. What's one trend you're betting on that is not AI-related?
Starting point is 00:52:20 one trend I'm betting on, which is the return to physical spaces. Have you seen brands start to do that already? Or are you just projecting that that will happen? I think we're starting to see brands start to invest more in physical spaces. I think we're starting to see brands invest more in community spaces, whether it's the way they're actually setting up dining rooms, whether it's the way they're actually rebuilding their stores, or creating moments within moments.
Starting point is 00:52:42 But the ability of pulling people together and giving them space to congregate, and you're seeing companies do more interesting things, whether it's pop-up concerts or craft fairs or whatever it might be where you're hosting moments to come together. Dinner parties, I love some of these dinner parties. You're seeing where it's the one long table and neighborhoods are doing it. But this idea of community and connection and physical spaces is becoming, I think, as we talked about before, an antidote to just being in the virtual world. Well, last question should be the easiest one, hopefully.
Starting point is 00:53:15 where should people connect with you or get your book? So we'll start with the book. So built on belief why cultures of commitment are the competitive advantage. You can find on Amazon that's the easiest place. To get in touch with me, you can write me at mat.markot at me.com or go on to m2 collaborative.com and send me a message or Matt at m2 collaborative.com. All right. Well, Matt, thank you so much for joining us today.
Starting point is 00:53:38 Oh, thanks so much for having me.

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