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Understanding the Golden Circle Concept
Aug 25, 2024
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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.
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