Why the best CEOs think like anthropologists

Why the best CEOs think like anthropologists

The opinions expressed by Entrepreneur authors are their very own.

Let’s get straight to the point: business is not only about numbers, spreadsheets and quarterly reports. It’s about people. Human behavior is the basis of every dollar earned or lost in a company. This is something the best CEOs understand and approach leadership with the curiosity and observational skills of an anthropologist. They see indicators from the past and look at what moves people: beliefs, motivations and habits.

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If you run a company or a team, you almost certainly already know that logic alone is unlikely to win hearts and will rarely ensure success. The real magic is understanding why people do what they do, not only what they do. This is where anthropology comes in – looking at culture, behavior, and relationships to raised understand customers, employees, and even competitors. Let’s get into the real, practical ways this manner of considering works.

Understanding people is your best competitive advantage

The reality is that folks don’t at all times behave the way we think they need to. Your customer doesn’t buy your product just because it’s the best on paper; they buy because something about it resonates. They may not even know why they selected your brand and not the competition.

Smart CEOs understand that customer surveys and online reviews are not enough. They dig deeper. They observe patterns – the way people live, work and make decisions. They testify without judgment. For example, Howard Schultz, former CEO of Starbucks, visited Italy to check coffee culture. Not only did he see what Italians drank; he saw them hanging out, bonding, and slowing down in coffee shops. This knowledge is a part of what made Starbucks a “third place” place – not only a coffee shop, but a space that appeared to be begging for people to wander around.

When you stop opening and start witnessing, you discover insights that your competitors miss.

1. Anthropology in the workplace: It’s not only about the paycheck

Let’s talk about your team. Have you ever wondered why one worker shines while one other seems disengaged, although they receive the same salary and advantages? A CEO with the mind of an anthropologist doesn’t just throw money at the problem or yell at “lazy employees.” They ask questions:

  • What is the unwritten culture here?

  • Are voices heard in meetings, or is everyone really heard?

  • How do team members feel about their work going beyond the call of duty?

Take, for example, Satya Nadella, CEO of Microsoft. Taking the helm, he not only introduced recent strategies, but modified the company’s culture. His focus on empathy and collaboration marked a break from the competitive, insular culture developed by Microsoft. He listened, observed and reshaped the dynamics of the workplace, making it one of the most modern firms in the world.

People don’t work hard simply to get a paycheck – they need purpose, connection, and recognition. CEOs who appreciate this don’t just manage; they lead.

2. Customers are a culture, not data points

Many firms claim to be “customer first,” but how many managers actually spend time with customers? Not in focus groups, but slightly where they live. Anthropologists are aware that folks often say one thing and do one other. Real insight comes from observing what your customers do, not only listening to what they let you know.

For example, when Airbnb was an early-stage startup, its founders didn’t sit in an office and think about how one can scale. They visited their hosts’ homes, stayed in their rooms and experienced it as guests. This informed people from the ground up what they needed – direct communication, security and trust. These observations impacted some key features of the platform.

Takeaway? Stop sitting in the conference room and enter the real world. Look at how people use your product, when they get discouraged and what motivates them.

3. Spotting trends before they change into trends

It should subsequently come as no surprise that an anthropologist’s considering also means forward-looking considering. Culture evolves, and techniques that work today may not work tomorrow. CEOs who can decipher changing behaviors are successful.

Think Netflix. When Reed Hastings made the switch from DVDs to streaming, he had no intention of fixing it. He saw a shift in the way people consumed entertainment – when they wanted, how they wanted, and as easily as possible. Instead of waiting for customers to clamor for streaming, he saw where the culture was heading and acted early.

But this is not about crystallizing the future. It’s about being a keen observer, asking questions and noticing the little things that suggest larger trends.

4. It’s not about knowing all the pieces – it’s about staying curious

The smartest person in the room is not at all times the best CEO. They are the most curious. They imagine they do not have all the answers and are not afraid of being improper. This humility and willingness to learn truly means considering like an anthropologist.

Take Elon Musk for example. Whatever you think of him, there is little question that he has a different way of considering when it involves solving problems. He goes deep, examining the “why” until he gets to the root reason for the problem. Why are legacy automobile makers struggling with electric vehicles? Why does a space flight cost so much? By difficult all the pieces and observing how systems work, he has created firms that are turning entire sectors the wrong way up.

As a leader, you do not have to know all the pieces. But you have to remain curious and open.

5. Building people-centric firms

Anthropologists study human experiences, just like the best CEOs. They understand that when you create something that actually improves people’s lives – a product, a service, a workplace – profit and growth follow naturally.

Take Patagonia for example. Its founder and former CEO, Yvon Chouinard, wasn’t just selling outdoor gear; created a company whose basic ideals were consistent with those of its clients – sustainable development, environmental protection and quality. He understood what his audience really cared about and built a brand that folks felt deeply attached to.

Result? Loyal customers who don’t just buy products – they change into ambassadors.

Practical steps to think like an anthropologist

This is all great in theory, but what does it look like in practice? Here are some things you may actually do:

  • Take time to watch: Whether you are following your team, visiting customers, or observing the behavior of individuals using your product, get on the market and see what’s really going on.

  • Ask higher questions: Instead of “What do you want?” the first thing it’s best to ask is, “Why is this important to you?” or “What problem are you trying to solve?”

  • Look for patterns: What are the commonalities among your most loyal customers? What typical behaviors do high-performing employees exhibit?

  • Be curious: Read a lot, take heed to different people and never stop learning. The more experience you have in the world, the higher you lead in the world.

  • Challenge assumptions: Don’t do something just because it’s “always been done.” Be open to exploring recent solutions and trying recent solutions.

Thinking like an anthropologist is not an exotic leadership trick – it is common sense that we normally lack. Business is not only about selling products or managing teams, but about the ability to empathize with people. The best CEOs understand this and always ask themselves: why do people do what they do?

When you are taking the time to watch, listen, and be curious, you are not just running a business – you are building something meaningful. And in today’s world, this is what distinguishes the best leaders.

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