The Golden Circle by Simon Sinek

Key Questions

• How do you explain when things don't go as assumed?
• How do you explain when others achieve against all assumptions?

Examples for Discussion

• Apple: Continuously innovative despite being a computer company with the same resources as competitors.
• Martin Luther King Jr.: Led the Civil Rights Movement despite not being the only sufferer or great orator.
• Wright Brothers: Achieved powered man flight despite less funding and fewer qualifications compared to others like Samuel Pierpont Langley.

Key Discovery: The Golden Circle

• What: Every person/organization knows this.
• How: Some know this as their value proposition/USP.
• Why: Very few know this; it’s about purpose, cause, belief.

Concept Explanation

• Why is not about making a profit (result) but is about the purpose and belief that inspires action.
• Inspired leaders and organizations communicate from the inside out (Why → How → What), opposite to everyone else.
• Example: Apple's real message is about challenging the status quo and thinking differently.

The Biology Behind It

• The brain's structure supports the Golden Circle:
  • Neocortex: Responsible for rational and analytical thought, correlates with 'What.'
  • Limbic Brain: Responsible for feelings, behavior, decision-making, and has no language capacity. Correlates with 'Why' and 'How.'
• Effective communication and inspiration come from engaging the limbic brain by starting with 'Why.'

Business Implications

• People don’t buy what you do; they buy why you do it.
• Goal is to do business with those who believe what you believe.
• Hiring should be aligned with the same beliefs to foster loyalty and motivation beyond monetary compensation.

Case Studies

Wright Brothers vs. Samuel Pierpont Langley

• Wright Brothers: Driven by belief and purpose; succeeded despite fewer resources.
• Langley: Driven by profit and fame; quit after the Wright Brothers succeeded.

Law of Diffusion of Innovation

• Population segments: Innovators, Early Adopters, Early Majority, Late Majority, Laggards.
• Tipping point for mass-market success: 15-18% market penetration.
• Convincing early adopters hinges on shared beliefs and intuitiveness.

TiVo: A Commercial Failure

• Technically superior, but failed commercially due to poor communication of 'Why.'

Martin Luther King Jr.: A Movement's Success

• Inspired by sharing beliefs, not just plans.
• Speech focused on dreams and higher laws, not just methods.

Leadership and Inspiration

• Leaders have authority, but those who lead inspire others.
• Followers join not for the leaders but for their own beliefs.
• Those who start with 'Why' can inspire and attract inspiring people.