GOLDEN CIRCLE explained in under 5 Minutes | Simon Sinek | WHY? HOW? WHAT? | Original TED Talk

Summary

The 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

00:00

🌟 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.

Keywords

💡Golden Circle

The Golden Circle is a concept introduced in the script that represents a framework for understanding why some organizations and individuals are more successful than others. It emphasizes the importance of starting with 'why', the purpose or belief that drives an entity, rather than focusing on 'what' they do or 'how' they do it. In the context of the video, the Golden Circle is used to explain how Apple communicates its message, starting with their belief in challenging the status quo, which is their 'why', and then explaining 'how' they achieve this through their products, which are the 'what'.

💡Why

In the video, 'why' refers to the purpose or cause that drives an organization or individual. It is the core belief or motivation behind their actions. The script explains that very few organizations know their 'why', which is crucial for inspiring loyalty and action in others. For example, Apple's 'why' is to challenge the status quo and think differently, which is what attracts customers to their products.

💡What

'What' in the context of the video script refers to the products or services that an organization offers. It is the tangible output of their work. The script contrasts the typical approach of starting a marketing message with 'what', as most companies do, with the more effective approach of starting with 'why'. Apple's 'what' is their beautifully designed, simple to use, and user-friendly products.

💡How

'How' in the script represents the methods or processes used by an organization to achieve their 'what'. It is the means by which they deliver their products or services. The video emphasizes that while 'how' is important, it is less compelling than 'why' when it comes to inspiring action and loyalty. Apple's 'how' is described as making their products beautifully designed, simple to use, and user-friendly.

💡Profit

Profit in the video is mentioned as a result, not a purpose. The script clarifies that 'why' is not about making a profit, but about the deeper purpose or belief that drives an organization. Profit is an outcome that can be achieved when an organization successfully communicates and aligns with its 'why'.

💡Purpose

Purpose in the video is defined as the reason for which something exists or is done. It is the underlying intention or goal that motivates an organization or individual. The script argues that knowing one's purpose is essential for inspiring loyalty and action, as it is the 'why' that people connect with and respond to.

💡Cause

Cause in the script refers to the reason or motive behind an action, similar to purpose. It is the driving force that compels an organization or individual to act in a certain way. The video emphasizes that understanding and communicating one's cause is crucial for building a connection with others.

💡Belief

Belief in the video is the conviction or acceptance that something exists or is true. It is the foundational principle that guides an organization or individual's actions. The script suggests that a strong belief is essential for inspiring others and driving behavior.

💡Rational and Analytical Thought

Rational and analytical thought, as mentioned in the script, refers to the logical and reasoned approach to decision-making. It is associated with the neocortex, the newest part of the human brain, which is responsible for language and analytical thinking. The video contrasts this with the more emotional and behavioral responses driven by the limbic brain.

💡Limbic Brain

The limbic brain in the video is described as the part of the brain responsible for feelings, trust, loyalty, and all human behavior and decision-making. It is contrasted with the neocortex and is highlighted as the part of the brain that responds to 'why', making it crucial for inspiring action and loyalty.

💡Behavior

Behavior in the script is the way in which one acts or conducts oneself, particularly in response to beliefs or motivations. The video emphasizes that behavior is driven by the limbic brain and is influenced by the 'why' of an organization or individual, rather than the 'what' or 'how'.

💡Gut Decisions

Gut decisions in the video refer to the intuitive or emotional choices that people make, often without fully rationalizing them. The script explains that these decisions come from the limbic brain, which controls decision-making but not language, leading to a feeling that something 'doesn't feel right' even when facts and figures are presented.

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