The Golden Circle Model was developed by Simon Sinek, who famously says, "People don't buy what you do; they buy why you do it."
Simon Sinek's Golden Circle - Introduction
To understand WHY people do what they do, you need an approach that measures more than just what people do. The Golden Circle explains why people do what they do. It’s a framework for understanding the world and how we operate in it — as individuals and groups of individuals.
According to Sinek, most businesses are structured like a Golden Triangle - focusing their efforts on creating, marketing, and selling products - with little thought given to WHY consumers would want those products in the first place. The result is that business growth stalls after some time.
They have discovered that the Golden Circle of Growth only comes from understanding WHY customers buy from them instead of another fast food chain.
What is Simon Sinek's Golden Circle concept?
Most companies communicate wrong by starting with the "what" they do and later working their way to talk about "how" they do what they do and, lastly, "why."
But great companies - and nearly all inspiring leaders - communicate from the inside out by starting with the "why?".
The first step in understanding the Golden Circle is to define your “WHY” - your tribe or driving purpose- the most critical factor in business decisions.
When you can explain your “WHY” in a way that resonates with your customers and employees, they will also become passionate about your products or services. Communicating your “WHY” authentically, meaningfully, and consistently with your mission is vital.
“People don’t buy what you do; they buy why you do it, and what you do simply proves what you believe. People will do the things that prove what they believe.” Simon Sinek
After defining and clarifying the WHY?, continue with the HOW and the WHAT.
What are the three layers of Simon Sinek's Golden Circle concept?
Why? = The purpose (The core question)
- What is your cause? What is your motivation and belief?
How? = The process
- How do you do it? What is your competitive advantage, and what makes you special
What? = The result
- What do you do? The What-Ring represents the products or services a company sells
What is the science behind Simon Sinek's Golden Circle model?
The science behind the Golden Circle is that human beings respond best when messages communicate with the limbic system in the brain that controls emotions and memory.
How does the Golden Circle work?
The Golden Circle has three interlocking components: Why, How, and What.
The "Why" represents the organization's purpose or cause, the "How" refers to the unique approach or method that sets the organization apart, and the "What" encompasses the products or services offered.
By starting with the "Why" and working outward to the "How" and "What," organizations can create a compelling and differentiated message that inspires and connects with their audience.
By putting the "Why" at the center of their strategy, organizations can cultivate a sense of purpose and meaning that drives long-term success and growth.
What is the purpose of the Golden Circle?
Simon Sinek's Golden Circle aims to help organizations and leaders understand why they are successful and how they can replicate that success in the future.
By focusing on the "Why" at the circle's center, organizations can develop a sense of purpose beyond just selling products or services. This purpose can serve as a guiding principle for all decision-making and help create a sense of unity and direction within the organization.
The Golden Circle also provides a framework for creating a compelling and inspiring message that resonates with customers, employees, and other stakeholders. By starting with the "Why" and working outward to the "How" and "What," organizations can create a narrative that connects with people on an emotional level and sets them apart from their competitors. This can increase customer loyalty, employee engagement, and overall success.
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