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Inspiration from Simon Sinek Golden Circle | 100W

Mar 17, 2020 10:22:28 AM / by Stefanie Schweizer

The innovative lecture "How great leaders inspire action" by US-American cultural anthropologist and successful management consultant Simon Sinek is one of the most popular TedTalks - a unique, honest opportunity to get to know progressive knowledge and fascinating ideas.

In his dynamic talk, Simon Sinek explains quite simply how the so-called Golden Circle works optimally. It is a model that helps to show why some companies are more successful than others. And this despite the fact that they develop products or services of equal value. Read more in the following article.

Simon Sinek Golden Circle - what exactly is it about?

Why do we actually feel more attracted to some brands than to others? Why do we shop in drugstore A instead of B or C? After all, all three carry a similar, if not identical range of products. Simon Sinek is convinced that he has found the answer to these questions, which are immensely important for companies. He therefore developed the already legendary model of the Golden Circle.

The prominent cultural anthropologist is honestly convinced that successful companies with that certain something simply communicate more authentically than their direct competitors. In this way, innovative companies inspire their customers and also create lasting loyalty through a unique commitment.

All well and good. But why do some customers choose a high-quality notebook from company A, while company B offers the same model at a better price? According to Simon Sinek, this situation is easy to explain: Company A gives customers who buy a notebook from them the honest feeling of being part of something important, a higher goal. So the customer not only gets a notebook; he also buys convincing values, the belief in the innovative idea behind the product.

"The goal is not to give people what they need and you have to sell it. The goal is to sell people that they believe what you believe. Simon Sinek.

 

Simon Sinek Golden Circle works with such reliability

Why, What, How? Simon Sinek deals with these three leading questions in his advanced theory of the Golden Circle. Sinek understands the components as independent factors that influence each other concentrically. Each question word is thus in its own circle. The What is in the outer circle, the How in the middle circle and the Why in the innermost circle.

 

Sinek is convinced that many dynamic leaders and innovative companies use this strategy of Why, What, How - but with a significant innovation. In the course of his deliberations, Sinek discovered commonalities between successful companies that are particularly convincing within their industry. The reliable model of the Golden Circle illustrates this difference perfectly.

"Why is it that Martin Luther King led the civil rights movement? He was not the only person who suffered from an America without civil rights. And he was certainly not the only great speaker of his time. Why him?"

 

Simon Sinek Golden Circle: Why, What, How quickly explained

In the Golden Circle model, the “What” poses the question of what you as an entrepreneur do to reliably achieve your goals. In the context of management, the “What” thus describes emotional products and successful services that your company creates. Sinek is of the opinion that almost every leader knows the What of the company.

“How” asks the question how you want to achieve your goals. This means, for example, strategies, procedures, or a convincing roadmap so that the Why can be realized. In his TedTalk, Sinek puts forward the progressive thesis that only some leaders are aware of the how of their work.

The “Why” can be understood in a business context as a higher sense of a company's performance. Therefore it raises the question of the Why. More precisely: What does a company work for? In Simon Sinek's Golden Circle, the Why is given the leading function, because according to Sinek, only selected leaders to know for which higher goal they work every day. This insight is also Sinek's point of view, however, central to honestly inspiring customers.

 

The advantage of the Why - Simon Sinek Golden Circle

Back to companies A and B, which were already mentioned at the beginning of this article as fictitious examples. For the perfect marketing of its own products, company B uses the communication that many companies practice: from the outside to the inside, from the What to the Why of the Golden Circle. This means that Company B communicates to the public that it produces innovative notebooks (what). For example, it uses environmentally friendly materials (how), so that customers ultimately respectfully protect the environment when they buy their notebooks (why).

But "Facts don't drive behaviour" explains Simon Sinek in his TedTalk. In doing so, he indicates why company A prevails over company B comparatively more often. What is meant by this is that company B's strategy could, from a purely logical point of view, justify a purchase. But not all human decisions are based on rational things. Often the famous gut feeling must also be convincing. Companies can win potential or new customers in the long term by addressing feelings in a focused way.

According to Simon Sinek's Golden Circle, Company A succeeds in doing this with the help of reverse communication. It goes from the inside out, from Why to What. In Sinek's opinion, this creative strategy is a decisive moment and thus also an advantage. By making customers decide to buy the notebook, they get something bigger than a mere product. Therefore, Company A communicates with customers and partners as follows: Company A considers environmental protection to be immensely important and wants to reduce the impact of its own work on it (Why). To achieve this, it uses maximum environmentally friendly material (How), which ultimately results in a notebook with a positive eco-balance (What).

 

Start with the ‘Why’ - Center of the Golden Circle

Simon Sinek goes one step further with his strategy. His model continues to be based on the thesis that communication from the inside to the outside in the Golden Circle can particularly excite customers because it is biologically anchored in the human being. Sinek identifies the "what" of the Golden Circle with the neocortex. This multisensory, motor part of the brain is responsible for analytical thinking, for example, and is also responsible for language.

According to Sinek, the "How" and "Why" of the Golden Circle are comparable to the limbic system of the human brain. The limbic system contains basic functions for drive, learning, memory, and emotions such as trust and loyalty. And these two are immensely important for getting potential customers excited.

With the help of this unobtrusive structure, Sinek explains why companies that start their communication with Why are more successful and more appealing than others: The first contact with the customer takes place, so to speak, on exactly the human level that can create and control enthusiasm.

"People don't buy what you do, they buy why you do it." Simon Sinek

 

Using Simon Sinek Golden Circle

The Golden Circle model can lead companies to success by giving their products or services an emotional value in addition to technical quality. To achieve this, it is important to first define one's own Why precisely and honestly. Then the challenge is to authentically convey the Why wherever the company comes into contact with the public.

If companies address their customers and partners emotionally, the personal bond to the product is stronger. Furthermore, every purchase at this company is given a higher significance. The difficult thing, however, is to put feelings honestly into words. With the innovative technology of 100W you can easily do this.

We support you as a company in this challenge. With our Psychological AI we offer you the innovative possibility to express the special emotional appeal and the uniqueness of your 'Why' in an authentic way.

 

We recommend:

- Employee motivation as an essential responsibility for companies

- The 100W of text analysis to measure implicit motives

 

Sources

https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=de

https://simonsinek.com/commit/the-golden-circle

https://simonsinek.com/commit/the-science-of-why/

 

Tags: Psychological AI, Marketing, Marktanalyse, Analyse, Customer Service, Brand Experience, sales psychology, marketing strategy, customer management, language

Written By Stefanie Schweizer

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