Simon Sinek is an internationally acclaimed motivational speaker and best-selling author. His TED talk ‘Start With Why’ went viral and has inspired leaders throughout the globe.
Sinek asserts that great leaders and organizations communicate their purposes by starting with “Why”, followed by “How”, and finally by “What”. This strategy works because it taps into our brain’s parts that govern behavior.
What is the Golden Circle?
Simon Sinek, author of one of the most viewed TED talks ever, developed The Golden Circle theory as a method for inspiring action in leadership and business. Consisting of three concentric circles containing “why,” “how,” and “what,” according to Sinek’s logic most people focus on “what” and “how,” rather than on why in running businesses or developing products – and companies which focus more heavily on starting from there tend to be more successful overall.
The outermost circle describes what products and services a business provides; its next circle, “how,” describes steps taken in providing those products and services; then its center circle defines “why,” which describes its mission or belief that can differentiate a company from competitors – for instance Tesla has as their purpose accelerating global transition toward sustainable energy sources.
Customers of any business should have a clear and easily understandable reason for supporting it – something their “why” statement can help with by creating personal connections and inspiring feelings within them. Furthermore, it’s key that both “how” and “what” line up with this purpose – such as using only ethically-sourced materials when producing its products to show that its goals extend beyond profit generation alone – encouraging customers to support this business and its goals.
Why is the Golden Circle important?
The Golden Circle is an effective business and leadership model that emphasizes the significance of having a clear mission and purpose for businesses, in order to inspire employees and customers and set themselves apart from competition. By emphasizing their “Why,” companies can motivate both employees and customers, while distinguishing themselves from rivals.
Simon Sinek was inspired to create the Golden Circle after witnessing successful leaders at work and noting how they all thought, acted, and communicated similarly. This insight led him to create the theory consisting of three parts – Why, How, and What – where each part represents an organization’s underlying motivation or purpose, while its method or steps for accomplishing its goals, and its products/services they offer their customers.
Sinek’s theory holds that the most essential factor in any business is its Why factor. This speaks directly to the rational parts of our brains which allow us to make logical and fact-based decisions. After this comes How factor which describes how the company plans on reaching its goals. Finally, What factor describes what products or services it provides customers.
By communicating their underlying purpose to both employees and customers, businesses can motivate both to take action. Doing this helps build trust and loyalty that are essential components of a successful business venture.
The Golden Circle can also serve as an effective evaluation of company culture. By assessing it, managers can see if its values align with those of their employees or if any changes need to be made in terms of culture alignment or recruitment efforts. Finally, its framework can serve as a useful basis for creating value propositions and recruiting new workers.
Consumers increasingly select companies that reflect their values, making it essential for organizations to effectively communicate their purpose and beliefs to their target audiences. By employing the Golden Circle methodology, companies can ensure their messages reach the people most likely to take action and inspire them into taking it themselves.
How can you apply the Golden Circle to your business?
The Golden Circle is a simple but effective model you can apply to your business to incite action and foster trust within your team. By starting with why, the ‘how’ and ‘what’ of business become easier – but the true purpose is why people engage with it in the first place!
Simon Sinek’s Golden Circle theory holds that successful businesses begin with their “why,” followed by their “how” and then their “what.” By explaining their purpose of business to team members and audience, companies are able to inspire action from these two entities and form lasting connections between products or services they offer and customer loyalty.
Once you can articulate why, you can start to provide more in-depth explanations of how your company functions and the unique aspects of its process. Here is where you can set yourself apart from competitors by emphasizing beliefs and values integral to the culture of your business.
Here, you can dive deep into your product or service to demonstrate how it delivers on its promise. Case studies, testimonials and behind-the-scenes content can all help demonstrate what sets your company’s process apart from others.
Applying the Golden Circle model in your marketing strategy will enable you to forge deeper relationships with your target audience and cultivate loyal supporters. By emphasizing purpose, differentiating process, and aligning what, how, and why with marketing efforts you can create lasting change while inspiring action from those whom your marketing targets.
Looking to embark on your Golden Circle journey? Work directly with a Simon coach to uncover your why, unlock your potential, and become an inspiring leader. Get going today by requesting your FREE packet below!
What are the benefits of applying the Golden Circle to your business?
The Golden Circle is a simple yet powerful concept that can help your business stand out in the market. It encourages companies to prioritize their ‘why’ to inspire others and form loyal followings, while simultaneously serving as an effective strategic framework to create effective communication strategies and increase customer engagement.
The Golden Circle depicts three circles. The first represents what products or services a company provides, the second how, with specific processes and techniques used to deliver these goods or services, and finally the third “why”, or core beliefs that drive business operations.
Though the Golden Circle may seem simple in theory, its implementation can often prove complex in practice. Many companies struggle to identify their “why”, their underlying belief or purpose for existing, leading them to misunderstand what their purpose truly is and focus on non-essential elements instead.
And it can be challenging to communicate your business’s raison d’etre in an engaging and memorable manner, especially in an oversaturated marketplace where customers receive marketing messages from all corners.
By employing the Golden Circle approach, you can ensure your message stands out amongst all of the noise. This strategy will attract and engage target customers while inspiring them to take immediate action.
The Golden Circle can also help develop effective leadership strategies. It encourages leaders to align their actions with a common vision and share their passion for their company’s mission; doing so, they can foster an environment of loyalty and trust that leads to long-term success.
If you want to gain more insight into the Golden Circle theory, be sure to watch Simon Sinek’s renowned TED Talk on how great leaders inspire action. In it he details the Golden Circle concept and how it can apply directly to your business.
