GOLDEN CIRCLE explained in under 5 Minutes | Simon Sinek | WHY? HOW? WHAT? | Original TED Talk
Summary
TLDRThe Golden Circle concept emphasizes the importance of understanding 'why' an organization exists, beyond just 'what' it does or 'how' it operates. Apple serves as a prime example, illustrating that by communicating their purpose first, they inspire customers to resonate with their beliefs, leading to loyalty and sales. This approach is rooted in human biology, where the limbic brain, responsible for decision-making and emotions, is more influenced by a clear 'why' than by rational details.
Takeaways
- 🌟 The Golden Circle is a concept that emphasizes the importance of understanding why an organization exists, beyond just what it does or how it operates.
- 💼 Most people and organizations know what they do and some know how they do it, but very few understand their 'why' - their purpose or belief.
- 🍎 Apple is used as an example to illustrate how a company communicates its 'why' first, which makes their products more appealing to consumers.
- 💭 The typical marketing approach focuses on what a company does and how it does it, but this doesn't necessarily inspire action or loyalty.
- 🛒 Consumers are more likely to buy from a company that they believe in, based on its purpose and values, rather than just the products or services it offers.
- 🧠 The human brain is divided into three parts that correlate with the Golden Circle: the neocortex (what), and the limbic brain (how and why).
- 🤔 The neocortex handles rational and analytical thought, while the limbic brain controls feelings, trust, loyalty, and all decision-making.
- 🗣️ Communication that starts from the outside (what and how) doesn't drive behavior as effectively as communication that starts from the inside (why).
- 💬 When you communicate your 'why' first, you speak directly to the part of the brain that controls behavior, allowing people to rationalize their decisions with the tangible details.
- 💖 The goal of business should be to connect with people who share the same beliefs, not just to sell to anyone who needs what you have.
- 🔑 Loyalty comes from understanding and connecting with a company's 'why', which is more powerful than just knowing what the company does or how it operates.
Q & A
What is the Golden Circle and why is it significant?
-The Golden Circle is a model that explains the importance of understanding why an organization or individual does what they do, beyond just what they do and how they do it. It's significant because it emphasizes the power of purpose and belief in driving behavior and loyalty.
Why do people buy from Apple according to the Golden Circle?
-People buy from Apple because of the 'why' behind their products—their belief in challenging the status quo and thinking differently—rather than just the features of the products themselves.
What does the 'why' in the Golden Circle refer to?
-The 'why' refers to the purpose, cause, or belief of an organization or individual. It's the reason why they exist and what drives their actions.
What is the difference between 'what' and 'why' in the context of the Golden Circle?
-The 'what' refers to the products or services an organization offers, while the 'why' is the underlying purpose or belief that motivates the organization to offer those products or services.
How does the Golden Circle relate to the human brain's structure?
-The Golden Circle correlates with the three major components of the human brain: the neocortex (responsible for rational and analytical thought and language) corresponds to 'what', while the limbic brain (responsible for feelings and decision-making) is connected to 'why'.
Why is it important for an organization to know its 'why' according to the script?
-Knowing the 'why' is important because it helps an organization to connect with people on a deeper level, driving behavior and loyalty beyond just the appeal of products or services.
How does the script suggest we should communicate our 'why'?
-The script suggests that we should communicate from the inside out, starting with the 'why', which talks directly to the part of the brain that controls behavior, and then allowing people to rationalize it with the tangible details.
What is the role of the limbic brain in decision-making according to the script?
-The limbic brain is responsible for all human behavior and decision-making. It controls feelings like trust and loyalty but has no capacity for language, which is why decisions often come from a 'gut feeling'.
Why do people say 'it doesn't feel right' when making decisions?
-People say 'it doesn't feel right' because the limbic brain, which controls decision-making, does not control language. This is why we struggle to articulate why a decision feels off, even when presented with facts and figures.
What is the goal of doing business according to the Golden Circle?
-The goal is not to do business with just anyone who needs what you have, but to do business with people who believe what you believe, creating a connection based on shared values and beliefs.
How does the script explain the success of Apple's marketing strategy?
-The script explains that Apple's success comes from their marketing strategy that communicates their 'why' first, which resonates with people's limbic brains, leading to a desire to purchase their products.
Outlines
🌟 The Golden Circle: Purpose Over Product
The Golden Circle is a model that emphasizes the importance of understanding 'why' an organization exists before communicating 'what' it does and 'how' it does it. The speaker explains that while most people and organizations can articulate what they do and some can explain their unique process or value proposition, very few can clearly state their purpose or belief. Using Apple as an example, the speaker illustrates how Apple's marketing focuses on their belief in challenging the status quo and thinking differently, which is their 'why', rather than just describing their products. This approach resonates with consumers on a deeper level, leading to a stronger connection and loyalty, as opposed to simply listing features and benefits. The speaker also touches on the biological basis for this model, explaining that the 'why' communicates directly with the limbic part of the brain, which controls behavior and decision-making, but does not process language, hence the importance of leading with purpose to influence actions.
Mindmap
Keywords
💡Golden Circle
💡Why
💡What
💡How
💡Profit
💡Purpose
💡Cause
💡Belief
💡Rational and Analytical Thought
💡Limbic Brain
💡Behavior
💡Gut Decisions
Highlights
The Golden Circle concept emphasizes the importance of understanding 'why' an organization exists, beyond just 'what' it does or 'how' it operates.
Most people and organizations are clear about what they do, but few understand their 'why', which refers to their purpose, cause, or belief.
Apple's marketing strategy is used as an example to illustrate the power of communicating the 'why' before the 'what'.
Traditional marketing often focuses on 'what' and 'how', which may not be as compelling as starting with 'why'.
People are more likely to buy from a company or individual they believe in, not just from what is being sold.
The goal is to do business with people who share the same beliefs, not just with anyone who needs what is offered.
The human brain is divided into three components that correlate with the Golden Circle: the neocortex for 'what', and the limbic brain for 'why' and 'how'.
The limbic brain is responsible for feelings like trust and loyalty, and all human behavior and decision-making.
Communication from the inside out (starting with 'why') speaks directly to the part of the brain that controls behavior.
Gut decisions and the feeling that something 'doesn't feel right' can be traced back to the limbic brain's role in decision-making.
Leading with 'why' allows people to rationalize their decisions with the tangible aspects of what is being offered.
The Golden Circle is grounded in biological principles rather than psychological theories.
Understanding and communicating the 'why' is crucial for gaining support, loyalty, and making sales.
The 'why' of an organization is what drives people to action, rather than just the features and benefits of the products or services.
The limbic brain's lack of language capacity explains why people often say 'it just doesn't feel right' when making decisions.
The neocortex processes rational and analytical thought, while the limbic brain governs emotions and actions.
Effective communication starts with the 'why', engaging the limbic brain before presenting the 'what' and 'how'.
Transcripts
I call it the Golden Circle
why how what let me Define the terms
really quickly every single person every
single organization on the planet knows
what they do 100 percent
some know how they do it whether you
call it your differentiating value
proposition or your proprietary process
or your USP but very very few people or
organizations know why they do what they
do and by why I don't mean to make a
profit that's a result it's always a
result by why I mean what's your purpose
what's your cause what's your belief
why does your organization exist let me
give you an example I use apple because
they're easy to understand and everybody
gets it
if Apple were like everyone else
a marketing message from them might
sound like this
we make great computers
they're beautifully designed simple to
use and user friendly
want to buy one
meh
and that's how most of us communicate
that's how most marketing is done that's
how most sales have done and that's how
most of us communicate into personally
here's how Apple actually communicates
everything we do we believe in
challenging the status quo we believe in
thinking differently
the way we challenge the status quo is
by making our products beautifully
designed simple to use and user-friendly
we just happen to make great computers
want to buy one
totally different right you're ready to
buy a computer from me all I did was
reverse the order of the information
what it proves to us is that people
don't buy what you do people buy why you
do it people don't buy what you do they
buy why you do it this explains why
every single person in this room
is perfectly comfortable buying a
computer from Apple but we're also
perfectly comfortable buying an MP3
player from Apple or a phone from Apple
or a DVR from Apple but as I said before
Apple's just a computer company there's
nothing that distinguishes them
structurally from any of their
competitors their competitors are all
equally qualified to make all of these
people don't buy what you do they buy
why you do it the goal is not to do
business with anybody with everybody who
needs what you have the goal is to do
business with people who believe what
you believe
here's the best part
none of what I'm telling you is my
opinion
it's all grounded in the tenets of
biology not psychology biology if you
look at a cross-section of the human
brain looking from the top down what you
see is the human brain is actually
broken into three major components that
correlate perfectly with the Golden
Circle our newest brain our Homo Sapien
brain our neocortex
corresponds with the what level the
neocortex is responsible for all of our
rational and analytical thought and
language
the middle two sections make up our
limbic brains and our limbic brains are
responsible for all of our feelings like
trust and loyalty it's also responsible
for all human behavior all decision
making and it has no capacity for
language in other words when we
communicate from the outside in yes
people can understand vast amounts of
complicated information like features
and benefits and facts and figures it
just doesn't drive Behavior
when we communicate from the inside out
we're talking directly to the part of
the brain that controls behavior and
then we allow people to rationalize it
with the tangible things we say and do
this is where gut decisions come from
you know sometimes you can give somebody
all the facts and your figures and you
say I know what all the facts and
details say but it just doesn't feel
right why would we use that verb it
doesn't feel right because the part of
the brain that controls decision making
doesn't control language and the best we
can muster up is I don't know it just
doesn't feel right or sometimes you say
you're leading with your heart or you're
leading with your soul well I hate to
break it to you those aren't other body
parts controlling your behavior it's all
Happening Here In Your limbic brain the
part of the brain that controls decision
making and not language
but if you don't know why you do what
you do and people respond to why you do
what you do then how will anybody how
will you ever get people to to to to
vote for you or buy something from you
or more importantly be loyal
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