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Understanding the Golden Circle Concept

Aug 25, 2024

Key Concepts of the Lecture

Introduction

  • Exploration of achieving success against assumptions.
  • Examples of Apple, Martin Luther King, Wright Brothers.
  • Commonality in inspirational leaders/organizations - they operate in a unique way, called the Golden Circle.

The Golden Circle

Definition

  • Consists of three components: Why, How, What.
  • Most organizations know What they do and How they do it.
  • Few know Why they do what they do (purpose, cause, belief).

Importance

  • Successful organizations/leaders operate from inside out (Why -> How -> What).
  • Example: Apple’s communication is driven by Why.

How Communication Impacts Behavior

Example Comparison

  • Conventional communication: starts with What (features, benefits).
  • Apple’s communication: starts with Why (belief, purpose).
  • People are drawn to Apple because of its inspiring message.

Biological Basis

  • Human brain structure: Neocortex (rational thought) vs. Limbic brain (emotions, decision-making).
  • Effective communication engages the limbic brain.
  • This explains why people often use terms like "gut feeling."

The Importance of Belief and Loyalty

  • People are motivated by shared beliefs, not just products or services.
  • Hiring: seek those who believe in the organization’s cause.

Case Studies

Wright Brothers vs. Samuel Pierpont Langley

  • Wright Brothers: driven by belief; succeeded without resources.
  • Langley: driven by fame/riches; failed after Wrights succeeded.

Law of Diffusion of Innovation

  • Innovators and early adopters drive acceptance of new ideas/products.
  • Mass-market success relies on reaching a tipping point (~15-18% penetration).
  • Example: TiVo’s commercial failure vs. Dr. King's success in attracting an audience.

Inspiring Leadership

  • Dr. King’s leadership: driven by belief, not plans.
  • Inspires followers not through power but by shared vision and purpose.

Conclusion

  • Difference between leaders and those who lead.
  • Leaders who start with Why inspire others to follow for the shared cause.