Golden circle is a unique philosophy, that puts in the form of simple words an attitude that seems awkward and indescribable. For the head start, consider a situation where you are given facts and figures to make a decision, but when the time comes to take the decision you just do not feel right, and do not make a decision even though it should be made as proven by analytical theories. Simon Sinek introduces this idea of Why, How and What.
The idea is that, say, there are 20 companies operating in a market. 5 of these have equal strength in terms of finances, man power, innovation and can be considered almost equal. Yet 1 or 2 of them are dominating the market and the remaining are not. Why not? This takes us to another question, which is, why are they doing business? Many will talk of making profit, surviving, gaining a bigger market share as the reason. The truth is, these are consequences of successful business activities, not causes. Why, refers to the drive, the cause, as to why are they doing what they are doing. Irony is, only the businesses who are able to express their why, actually succeed. The entire difference comes in the sequence of communication. A normal business would send a marketing message like
“We make luxurious watches, they are smart, stylish, easy to use, want to buy one?”
A message from another business would be
“We believe in providing a product that satisfy the needs of all classes of people in our society, they are smart, stylish, easy to use and work out to be luxurious watches, want to buy one?”
It is basically the same thing being said, but inside out from the golden circle. The idea is that people don’t buy what you do, people buy why you do it. As unbelievable as it may seem, the fact is that this is a biological fact, not psychological. When human beings are taking, communicating, dealing with facts and what is going on around them, they communicate from the outer side of their brain. However, when they express their emotions, feelings, they are communicating from the inside part of their brain.
This part of the brain has no capacity for language, because it is engaged in an entirely different genre, and is much stronger. This is the reason, that when we have to make a decision, and sometimes even if the statistics are supporting one side we do not make that decision, since it does not feel right. This is also the reason, why a person who, when communicates with someone emotionally is on an entirely different level of connection with the other person and it is also the reason as to why, a person with a strong drive to achieve a goal is much more likely to succeed that an ordinary person.
So when a business is communicating inside out, it does not matter much what they are producing, but due to the “why” a customer is willing to buy their products, even if they are more than one. This is also the basic reason behind the concept of loyal customers, because the customer is connected from the inside part of their brain with the company, and this happens primarily because of the order of communication, which must be inside out.
There is no doubt that a unique product that excels in its fields can outclass many competitors, sometimes even if the order of communication is not inside out, but implementing the strategy from golden circle is just another way to boost your speed in achieving your goal.