The Golden Circle is a concept by Simon Sinek that helps organizations address three questions (Why, How, What) to answer the question of entrepreneurial purpose.
Simon Sinek's Golden Circle concept helps organizations approach and answer the question of entrepreneurial purpose with just three questions (Why, How, What). Simon Sinek invented the model and first presented it in 2009 at the TED Innovation Conference. This was followed by his book 'Start with Why' in 2011, which became a worldwide bestseller.
The core idea and starting point of the approach are based on the question of why some individuals, entrepreneurs, and organizations are more successful than others. Simon Sinek found the answer in the fact that these successful organizations and personalities act and communicate according to a specific principle. They focus on the WHY, the purpose of what they do, placing it at the center of their actions. The WHAT, what they do, is secondary. It is more about the reason why they do something.
The Golden Circle model is a powerful method to develop a clear and inspiring message and to increase people's engagement. Today, it is an important communication model and leadership tool used in numerous areas and industries.
The Golden Circle consists of three interdependent questions that lead to answering the question of purpose. The model is composed of three concentric circles: the innermost circle, representing the Why; the middle circle, symbolizing the How; and the outermost circle, representing the What.
“Why”: Why do we do what we do? The answer to this question targets a specific purpose. This forms the core of the Golden Circle as well as common principles and values.
“How”: How do we do it? How do we proceed and how do we differentiate ourselves from others? This is where workflows, structures, processes, and methods are established to help achieve the goal.
“What”: What do we want to offer? What is the outcome? The answer to this is the result of the first two questions. Here, specific products, services, and actions should be formulated.
Simon Sinek recommends starting with the “Why,” that is, the purpose or mission, and then moving through the “How” to the “What.” The Why forms the central prerequisite for the working methods and development of successful offerings. The subsequent answer to How describes how the company operates and what unique selling propositions (USPs) it has. The final answer to What is much more tangible than the first two and, therefore, is mistakenly the focus for many companies when it comes to differentiation. However, starting with the Why creates an emotional connection with customers and employees and is much more effective in differentiating from the competition.
The model and the answering of the question of purpose provide clear orientation and can be applied in all areas. Whether as a leadership tool or as an agile working method in everyday business, the question of why forms the basis for numerous activities. Putting purpose at the center motivates and creates an emotional connection between employees and customers. For this reason, this approach is often used in the development of business models, as well as in marketing, project management, and product development.
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