Brand Positioning - Simon Sinek

Corporate Marketing

25 Nov 202007:56

Summary

TLDRThis transcript explores the profound insight of how successful organizations and leaders, like Apple, Martin Luther King Jr., and the Wright Brothers, stand out by operating from a different perspective. They all share a common pattern: they think, act, and communicate from the inside out, starting with 'why'—their purpose, belief, or cause—rather than 'what' they do or 'how' they do it. This approach, termed the Golden Circle, is presented as the secret behind their ability to inspire and achieve extraordinary success. The concept underscores the importance of connecting with people on a deeper level, arguing that people don't buy what you do, they buy why you do it, a principle rooted in the biology of human decision-making.

Takeaways

💡 The Golden Circle concept explains why certain organizations and leaders are able to inspire: by starting with 'why' they do things, rather than 'what' or 'how'.
📝 Simon Sinek's discovery of the Golden Circle changed his perspective on how the world works and how to operate within it.
🏆 Examples like Apple, Martin Luther King, and the Wright Brothers illustrate how starting with 'why' can lead to remarkable achievements despite similar resources.
🚡 Most organizations know 'what' they do and 'how' they do it, but very few know 'why' they do it—'why' is not about making profit, but about purpose and belief.
👨‍💻 Apple's success is attributed to its approach of communicating from the inside out, starting with 'why' they exist and then explaining 'how' and 'what' they do.
📚 People don't buy 'what' you do; they buy 'why' you do it. This principle applies not just to products, but to leadership and movements.
💧 The goal is not to do business with everyone who needs what you have, but with people who believe what you believe.
💭 The human brain is divided into three parts, with the limbic brain (responsible for feelings, behavior, and decision making) not having the capacity for language.
🧠 Communicating from the inside out engages the limbic brain, fostering trust and loyalty, and driving behavior through feelings rather than facts.
📈 Understanding your 'why' is crucial not only for making sales but for building loyalty and inspiring people to be a part of your cause or movement.

Q & A

What is the 'Golden Circle' concept mentioned in the transcript?
-The 'Golden Circle' concept is a framework consisting of three concentric circles labeled 'Why', 'How', and 'What'. It explains how inspiring leaders and organizations communicate by starting with 'Why' (their purpose, cause, or belief), then 'How' (the process or differentiating value proposition), and finally 'What' (the products or services they sell).
Why is Apple considered innovative according to the transcript?
-Apple is considered innovative because it communicates and operates differently from its competitors. Instead of focusing on what they do, they start with why they do it—challenging the status quo and thinking differently—which resonates with people on a deeper level.
How does the transcript explain the success of Martin Luther King Jr. and the Wright brothers?
-Their success is attributed to their ability to inspire by communicating their purpose and beliefs (the 'Why') before explaining how they achieve their goals or what they do. This approach resonates more deeply with people, driving their movements and innovations forward.
What does the transcript suggest is the flaw in most organizations' communication strategies?
-Most organizations communicate from the outside in, starting with 'What' they do and moving inwards, which only conveys information but doesn't inspire action or loyalty because it doesn't connect with people's emotions or beliefs.
According to the transcript, how do inspired organizations differ in their approach to communication?
-Inspired organizations communicate from the inside out, starting with 'Why' (their purpose or belief), then 'How' (their process or unique value), and finally 'What' (the products or services they offer). This approach connects with the limbic part of the brain, responsible for feelings and decision-making.
Why do people buy products from Apple, as per the transcript?
-People buy products from Apple not because of what they make, but because of why they make it. Apple's purpose and belief in challenging the status quo and thinking differently inspires customers to buy their products.
What role does the limbic brain play in decision-making according to the transcript?
-The limbic brain is responsible for all our feelings, like trust and loyalty, and controls all human behavior and decision-making without the capacity for language. It's the part of the brain that responds when we communicate starting with 'Why', influencing our decisions on a deeper, emotional level.
How does the 'Golden Circle' concept affect consumer behavior?
-The 'Golden Circle' affects consumer behavior by explaining that people don't buy what you do; they buy why you do it. When organizations communicate their purpose and beliefs first, they connect with consumers on an emotional level, leading to loyalty and action.
What is the significance of starting with 'Why' in the 'Golden Circle' model?
-Starting with 'Why' is significant because it communicates the organization's purpose, cause, or belief, which appeals to the emotional side of the brain responsible for decision-making. This approach inspires and attracts people who share the same beliefs, leading to stronger loyalty and support.
What does the transcript reveal about the relationship between communication and organizational success?
-The transcript reveals that the way an organization communicates—particularly by starting with their purpose or belief ('Why')—is crucial to its success. This approach resonates with people on an emotional level, fostering loyalty, inspiring action, and differentiating the organization from its competitors.

Outlines

00:00

🧠 The Secret Behind Innovation and Leadership

This paragraph delves into the intriguing question of why certain individuals and companies, like Apple, Martin Luther King, and the Wright Brothers, achieve remarkable innovation and leadership that seems to defy conventional assumptions. Despite having access to the same resources as their peers, these figures and entities stand out for their consistent innovation and ability to inspire. The speaker reveals a personal discovery made three and a half years prior, which led to the understanding that these successful leaders and organizations share a common pattern in their thinking, acting, and communicating. This pattern is encapsulated in the 'Golden Circle' concept, which emphasizes starting with 'why' — the purpose or belief that drives them — rather than 'what' they do or 'how' they do it. This approach is contrasted with the more common, less inspiring method of communication that focuses on 'what' and 'how.'

05:01

🔍 The Biology of Belief and Decision Making

In this paragraph, the focus shifts to explaining why people don't just buy what you do, but rather why you do it, using Apple's marketing strategies as a prime example. It discusses how companies like Dell and Gateway, despite their qualifications, failed to inspire consumers with products outside their primary domain, underscoring the importance of aligning business with people who share your beliefs. The speaker introduces the biological basis for this phenomenon, attributing it to the structure of the human brain, which is divided into parts responsible for rational thought and language (the neocortex) and parts responsible for feelings, behavior, and decision-making (the limbic brain). This alignment with the limbic brain's functions explains why effective communication and decision-making are often driven by 'gut feelings' rather than rational analysis. The paragraph concludes by emphasizing the importance of knowing and communicating your 'why' to attract and retain people who believe what you believe.

Mindmap

Keywords

💡Innovation

Innovation refers to the introduction of new ideas, products, or methods that significantly improve upon existing ones. In the context of the video, innovation is a key attribute of Apple, setting it apart from its competitors. Despite having access to the same resources as others, Apple's consistent innovation in product design and user experience is highlighted as a distinguishing factor. This is tied to the company's core belief in challenging the status quo and thinking differently, which attracts customers who share similar values.

💡Golden Circle

The Golden Circle is a framework introduced in the video to explain how inspirational leaders and organizations like Apple, Martin Luther King Jr., and the Wright Brothers communicate and behave differently from others. It consists of three concentric circles labeled 'Why', 'How', and 'What'. This model suggests that starting with 'Why' (a purpose, cause, or belief) rather than 'What' (the product or service) or 'How' (the process) can inspire action in others. The video emphasizes that this approach is what sets apart companies and leaders who are able to inspire loyalty and innovation.

💡Why

In the Golden Circle framework, 'Why' represents an organization's purpose, cause, or belief—the reason it exists beyond just making a profit. The video argues that understanding and communicating this core belief is what inspires people to follow, buy from, or work with an organization. It is presented as the most powerful element of communication because it speaks to the part of the brain responsible for decision making and emotions, leading to a deeper connection with the audience.

💡How

In the context of the Golden Circle, 'How' details the specific actions, processes, or practices that realize the 'Why'. It refers to the unique selling points or differentiating value proposition of an organization. While important, the video suggests that 'How' is secondary to 'Why' in inspiring action, as it serves to rationalize the emotional response elicited by understanding an organization's purpose.

💡What

The outermost circle of the Golden Circle framework, 'What' refers to the products, services, or roles an organization offers. Although it is the most visible and easily explained aspect of an organization, the video posits that starting communication with 'What' is least effective in inspiring or motivating action, as it does not directly appeal to the emotional or decision-making part of the brain.

💡Martin Luther King Jr.

Martin Luther King Jr. is mentioned as an example of a leader who inspired mass action and change, not merely through his oratory skills but through his profound belief in equality and civil rights. His ability to articulate his 'Why'—a vision of a society free of racial discrimination—resonated deeply with people's beliefs and emotions, illustrating the video's argument that people are drawn to leaders who share their beliefs and values.

💡Wright Brothers

The Wright Brothers are used as an example of individuals who, despite lacking the funding and qualifications of their competitors, succeeded in achieving powered manned flight. Their success is attributed to their unwavering belief in their mission and their innovative approach, underscoring the video's message that a strong 'Why' can drive groundbreaking achievements.

💡Limbic Brain

The video discusses the limbic brain in relation to decision-making and emotions. It is presented as the part of the brain that processes feelings like trust and loyalty, and is responsible for all human behavior and decision-making, but lacks the capacity for language. This highlights the importance of communicating 'Why'—since it directly appeals to the limbic brain, influencing decisions and behaviors on an emotional level, rather than relying solely on rational or analytical arguments.

💡Decision Making

Decision making is a process highlighted in the video as being influenced more by emotional and subconscious factors (the limbic brain) than by analytical or rational thought (the neocortex). This concept supports the idea that people are more likely to be inspired or motivated to act when they feel an emotional connection to the 'Why' of an organization or leader, rather than just being presented with facts or features.

💡Communication

Communication is a central theme of the video, specifically the method and order in which ideas are conveyed. The video argues for a model of communication that starts with 'Why' (purpose, cause, or belief), then 'How' (the process or differentiation), and finally 'What' (the product or service). This approach is contrasted with the more common method of starting with 'What'. The video asserts that communicating from the inside out of the Golden Circle is more effective in inspiring action because it resonates with the emotional part of the brain.

Highlights

Introduction of the concept questioning why some companies or leaders, like Apple and Martin Luther King, achieve remarkable success that defies assumptions.

Apple's consistent innovation compared to its competitors despite having access to the same resources.

Martin Luther King leading the civil rights movement despite not being the only great orator of his time.

The Wright Brothers achieving controlled powered man flight ahead of better funded and qualified teams.

The discovery of a pattern among inspiring leaders and organizations, which is thinking, acting, and communicating in the same way but opposite to everyone else.

Introduction of the Golden Circle concept: Why, How, What.

The importance of knowing why organizations do what they do, beyond making a profit.

Inspired organizations communicate from the inside out, starting with 'Why'.

Example of how Apple communicates its belief in challenging the status quo to inspire purchase.

The biological basis of decision making in the human brain, correlating with the Golden Circle.

The limbic brain's role in decision making and its lack of language capacity.

The concept that people don't buy what you do, they buy why you do it.

The importance of doing business with people who believe what you believe.

Explanation of how our communication affects people's behavior through the brain's decision-making process.

The significance of understanding why you do what you do to inspire loyalty and action among people.