Start with why - defining your business purpose
In business and leadership, few concepts have resonated as deeply as Simon Sinek's Golden Circle. Introduced in his 2009 TED Talk and further elaborated in his book "Start with Why," this simple yet powerful framework helps organisations and leaders inspire action and achieve lasting success.
The Golden Circle
The Golden Circle consists of three concentric circles that represent different levels of an organization’s operations:
Why do we do what we do?
The heart of the Golden Circle represents the purpose, cause, or belief that drives an organisation. This is about the organization’s mission and the reason it exists beyond just making money.
How do we do what we do?
The "How" represents the unique processes, values, or strategies that set an organisation apart from its competitors. This includes the guiding principles or the unique methods that bring the "Why" to life.
What do we do?
The "What" is the easiest to identify and represents the products or services an organisation offers. It answers the question, "What do we do?" This is the tangible output of the organization’s efforts.
Why the Golden Circle matters
Sinek argues that most organisations operate from the outside in—they start with "What" they do, then move to "How" they do it, and often neglect the "Why." However, truly inspiring leaders and successful companies operate in the opposite direction: they start with "Why," then determine "How," and finally "What."
This inside-out approach creates a powerful connection with both employees and customers. Here’s why it matters:
Clarity and focus: Starting with "Why" ensures that everyone in the organization understands and is aligned with its core purpose. This clarity fosters a strong sense of direction and focus.
Inspiration and loyalty: When organisations communicate their "Why," they inspire others to join their cause. Customers and employees are drawn to organizations that share their values and beliefs, creating a loyal and passionate community.
Differentiation: In a crowded marketplace, what an organization does may not be unique. However, a clear "Why" sets it apart, making it more memorable and appealing.
Real-world examples
Several iconic companies exemplify the power of the Golden Circle:
Apple’s "Why" is to challenge the status quo and think differently. This core belief drives everything they do, from product design to marketing. Their "How" is through creating beautifully designed, user-friendly products, and their "What" includes iPhones, iPads, and Macs.
Tesla’s "Why" is to accelerate the world’s transition to sustainable energy. Their "How" involves innovative technologies and their "What" includes electric cars and renewable energy products.
Applying the golden circle
Implementing the Golden Circle in your organization doesn’t require a massive overhaul. Here are a few steps to get started:
Define Your Why: Reflect on your organization’s core purpose. Why does your organization exist? What impact do you want to make?
Communicate Clearly: Ensure that your "Why" is communicated consistently across all levels of your organization. It should be the foundation of your messaging, branding, and culture.
Align Actions with Purpose: Make sure that your "How" and "What" are aligned with your "Why." Every strategy, decision, and action should reflect your core purpose.
Conclusion
Simon Sinek’s Golden Circle is more than just a framework; it’s a philosophy that can transform how organisations operate and connect with people. By starting with "Why," organisations can inspire action, foster loyalty, and achieve sustainable success. So, take a step back, rediscover your "Why," and watch as it drives your organisation to new heights.