Why, How, What - Simon Sinek's Golden Circle model

Introduction

Simon Sinek's Golden Circle seems to be the ultimate recipe for business success: start with your "why," and the rest will follow naturally. Consequently, many startup entrepreneurs use the model when they start making their first business plan. But is it really that simple? Behind the pretty TED talk and catchy onliners lies an uncomfortable truth: the model lacks a scientific foundation and simplifies complex organizations into three questions: Why, How, What?

In this article, we puncture the myth of the Golden Circle and offer suggestions for alternatives.

What is the Why, How, What model (Golden Circle)?

The Why, How, What model, also known as the Golden Circle, is a model developed by Simon Sinek to help you create a business strategy. The model is based on three concentric circles: the inner circle represents "Why," the middle circle represents "How" and the outer circle represents "What."

The model suggests that companies that focus on why they do something (what they believe in and stand for), rather than just what they do (their products or services), have more impact on their customers and stakeholder. Simon Sinek's Why, How, What model indicates that by starting with why, a company can make an emotional connection with its target audience and thus build a loyal fan base.

Be sure to watch the video where Simon Sinek himself explains his Why, How, What model (Golden Circle):

Three steps from Simon Sinek's Golden Circle

The Why, How, What model begins a company by defining their "Why" (why they exist), and then uses the "How" (how they intend to fulfill their mission) and "What" (what they do) to define their strategy and communications.

Why (why)

The Why in Simon's Golden Circle represents the purpose that drives an organization. This is about why an organization does what it does, what is the reason or motivation behind its activities. This is about the larger purpose and reason for the organization's existence. Sinek emphasizes that profit is never a good why, but should always be the result.

How

The next step is the How. This refers to what is the way an organization accomplishes its goals. This involves the strategies, processes and methods the organization uses to achieve its goals. You tell how your company is distinctive from the competition. So now you are communicating your proposition and your USPs.

What (what)

The last part of the Golden Circle: the What. Here you answer the question of what exactly you are selling, what are your products or services. This is what the organization does or makes, the concrete results it achieves.

Start with why

According to Sinek, it is important to start by answering the question "why" (why) rather than starting with "what" (what). He believes that organizations that focus on their why attract a stronger and more engaged audience than those that focus on their what. The Why, How, What model helps organizations focus on their goals and communicate their message in a meaningful way.

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Benefits of the Why, How, What model (Golden Circle)

• Helps define a clear mission statement:
  By focusing on the "why" of the business, companies can formulate a clear mission statement that is meaningful and motivates employees to achieve it.
• Creates customer loyalty:
  By communicating why the company exists and what it is trying to accomplish, customers can feel emotionally connected to the company and become more loyal.
• Distinctiveness:
  The Golden Circle helps companies stand out from their competitors by focusing on their unique why and how.
• Better decision-making:
  By focusing on the "why" of the business, the company can make better decisions that align with their mission and goals.
• More motivated employees:
  By communicating why the company exists and what it is trying to achieve, employees can better identify with the company's mission and goals, making them more motivated to contribute to the company's success.

Criticism of the Golden Circle model

There are many criticisms of the Golden Circle model, and rightly so. Here we highlight the three most important ones:

• No scientific evidence
  Sinek bases his theory primarily on anecdotal evidence, as Apple, very often Apple. However, he provides no empirical evidence to support his claims, so the scientific foundation of the model is lacking. Read more about the anecdotal fallacy here .
• Overestimating how thoughtful people make decisions
  People don't buy WHAT you do; they buy WHY you do it. Think for a moment about your last five purchases. You don't know the why of any company I'm guessing. Probably these products were just easy to buy at the right time and fulfilled a certain need. Read more about physical availability here.
• Extreme simplification of reality
  Answer 3 questions and you have a successful business. Of course. A company with brilliant why but no reach is going to turn exactly zero dollars. You just never hear about that. Read more about survivorship bias here.

Examples

Here are some completed examples of the golden circle model. We begin, of course, with the classic Apple.

Example 1: Apple

• Why: Apple believes in thinking differently and challenging the status quo.
• How: By designing products that are beautiful, user-friendly and intuitive.
• What: Smartphones, laptops, software, accessories.

Example 2: Tesla

• Why: Tesla wants to accelerate the transition to renewable energy.
• How: By producing innovative, electrically powered vehicles and energy solutions that are attractive, powerful and environmentally friendly.
• What: Electric cars, batteries, solar panels and charging stations.

Example 3: Tony's Chocolonely

• Why: Tony's wants to completely end modern slavery and child labor in the chocolate industry.
• How: Through transparent and fair trade practices, working with farmers, creating awareness among consumers, and putting pressure on industry.
• What: Chocolate bars and chocolate snacks produced under ethical conditions.

Read the whole article and still curious about the book? We still have 2 copies here at the office in Eindhoven. Free to pick up or if you pay the shipping costs we will send you one. Just send an email to tasmanic to make arrangements.

Resources

Sinek, S. (2009). Start with why: How great leaders inspire everyone to take action. Portfolio Penguin.