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The Importance of the Golden Circle in Business and Leadership

By Aaron M Spelling

July 23, 2022

minutes remaining


Want to be a great leader? Then understanding just one single principle can make all the difference and elevate you to the status of one of the greats.
What is that principle? It’s called the ‘Golden Circle’ and an idea that applies to many different aspects of business facts – especially leadership. The idea was first postulated by Simon Sinek, who set out to codify what made great leaders stand out and inspire action. Famously, he went to outline his findings expertly in his TED talk.

Why are some companies like Apple (back in the day) industry leaders? Why do some keep innovating while others seem stuck in the past?
As he examined this question, Simon found that some organizations approached their businesses opposite their contemporaries. Specifically, they asked the question ‘why’ first, instead of asking it last like so many others.

Because according to the golden circle, there are three tiers of motivation that can describe a business:
* What
* How
* Why

The ‘what’ is what your business does. Your company, for example, might make dumbbells. The how is, of course, how it does this. Maybe that means using outsourced manufacturing.
But the why is what motivates that business. Other than money. Why did those involved choose the fitness industry? What was it they were hoping to accomplish? What do they believe?
The answer might be that the company hoped to change how people felt by themselves. Maybe it was that they wanted to create a healthier society. Perhaps they just wanted to make people happier.

But regardless of the scenario, THIS is what matters as a leader. Because once you know you’re ‘why,’ you can inspire people with it. Once you find the passion and the drive behind your business plans, it will become evident and contagious, and other people will become as passionate as you are. That means both your customers and your employees.
You are finding a ‘why’ also makes it that much easier for you to navigate and find your course of action. Once you know your long-term goals, you can make better decisions to head there – rather than just trying to stay the entire time afloat.

To find you’re why, and the rest will follow from there!

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