What is Interesting About Golden Circle Rule?

It's very well said:

“Everybody's got a different circle of competence. The important thing isn't how big the circle is. The important thing is staying inside the circle.”

- Warren Buffet

That's exactly the way businesses can also keep going forever!

Want to know what's the weird connectivity between a circle and a successful business? Keep reading...

GOLDEN CIRCLE RULE is an innovative concept that took birth in the mind of a genius Simon Sinek. In his TED Talk START WITH WHY , Simon with the help of the image below, explains a simple method of how businesses should approach their customers. 

"WHAT IS GOLDEN CIRCLE RULE?"

• Why: The Purpose, the Belief in any action 
• How: The Process to execute the action 
• What: The Result or the Proof of the action and the belief 

This image consists of three parts: Why, How and What. The WHY represents what a company believes in, not only about making a profit. The How ring explains the process a company follows to achieve its belief through its products.  

It also emphasises how its products/ services are better or stand out from the competition. The WHAT ring of the Golden Circle represents the products or services a company sells.

"WHY GOLDEN CIRCLE RULE IS IMPORTANT?"

The Golden Circle theory is based on the neuroscience that humans respond best to the messages that communicate with those parts of the brain that control emotions, behaviour and decision-making rather than logic. Thus, it underlines the biology that can help not just start-ups or the industry biggies but also largely contribute to our day-to-day lives.                                       

"WHAT'S THE BIOLOGY BEHIND THE SUCCESS OF THE GOLDEN CIRCLE RULE?"

Simon Sinek compares these three circles of the G-Circle Rule to our human brain. The outermost area of the brain, neocortex, that is responsible for rational thinking and language skills in human beings can be compared to the outer ‘What’ circle. The ‘How’ and ‘Why’ circles can be compared to the limbic brain which is responsible for feelings like trust and loyalty and for all human behaviour and decision-making.

Businesses may fail to drive results when they first target the What circle. Means, what products/ services they sell. Though the potential customers can analyse such messages on the basis of their rationale, that may not necessarily create an impact upon them and produce results. 

However, if they target people’s emotions, which are comparatively harder to touch, the probability of producing results is definitely much higher. The reason is simple: emotions have their own way to go and are independent of the need for any logical justification. In this way, the approach from ‘Why to What', which Simon Sinek addresses in the book: “Start with Why” mostly proves more feasible and reliable. 

That's why influential and popular brands communicate from inside out rather than outside in.

You can also read more about this model in his book Start With Why. 

To know How the G-Circle rule plays a key differentiator in business, read in the next article.