How many of us have not wondered why some organizations are more successful than others? Is there a magic formula that guarantees the success of organizations, but is only distributed among a few, such as power, among the chosen? Why does Apple have the luxury of selling its products at stratospheric prices, and although substitutes have emerged on the market, it still remains at the top? Is it a matter of luck, of being in the right place, at the right time?
Without a doubt, they are questions that have not only crossed our minds, such is the case of Simon Sinek, who, fascinated by the leaders, organizations and politicians that have most impacted the world, has discovered important patterns in how they think, act and communicate.
golden-circle-essence-changeAnd that is why he decides to write his book "Start with Why: How Great Leaders Inspire Each One to Take Action" where he explores his idea of the Golden Circle, what he calls "a pattern that occurs naturally" based on the biology of human decision-making, which explains why some people, leaders, or organizations inspire us over others.
And it would be enough to remember the immortalized speech of Dr. Martin Luther King, that leader who fought for civil rights in the United States of America in 1963, where more than 200,000 people who believed in his cause had gathered, or the speech of Barack Obama in 2008 that inspired millions of volunteers and donors to join his campaign, because they believed in him and the change he represented, the list could go on not only in real life but in fiction, just remember coach Tony D'Amato in a "Any Sunday" or Lieutenant Moore in "We Were Heroes" because it is those types of leaders who inspire us either to join their ranks or share their beliefs.
Therefore, this article describes the operation of the Golden Circle or "Golden Circle" as it is known worldwide, as well as its tools and examples of companies that make use of it are mentioned.
BACKGROUND
On the Start With Why page (Sinek, 2015) we find that in 2006, Simon Sinek owned and operated his own marketing firm. Although his business was financially successful, he had lost his passion for what he was doing. He knew what he did and he also knew how he did it to be different or even better than others. However, he was unclear as to why he was doing it. With no purpose behind his work, he began to burn out and became depressed.
Tips and advice you received from others, such as, "Do what you love!" They weren't working at the time. He became obsessed with finding the missing link: His Why. According to Sinek that is the driving inspiration that is there when everything is fine and is missing when we are at our worst.
Through personal reflection and sharing what was becoming clear with others, Simon found his Why: Inspire people to do the things that inspire them so that together we can change our world. He started using his Why as a filter, choosing to only do things and participate in projects that would bring his Why back to life. His passion was restored to levels he had never experienced before.
It was then when he found what he loved, that Simon Sinek began to share it with those closest to him, it started as a small idea. His friends began to make changes in their lives in order to improve, and that is currently either you renew and innovate or you die slowly. Eventually the idea was shared by word of mouth, until The Golden Circle was shared in New York, that was when the Start With Why movement began.
The ideas that the Golden Circle illustrates are certainly not new since Simon Sinek did not invent the purpose. What he has been able to do is capture this idea that has been around for millennia, Sinek argues that The Golden Circle is simple, easy to understand and actionable, in a way that it can be used, shared with others, so that together we can change. to the world.
SIMON SINEK
On his website (Sinek, 2017a) Simon is described as an unwavering optimist, who believes in a bright future and in the ability that each of us have to build it together.
Simon Sinek
Described as "a visionary thinker with a rare intellect," Sinek's mission is to teach leaders and organizations how to inspire people. With a bold goal, help build a world in which the vast majority of people go home each day feeling satisfied with their work. Sinek is leading a movement to inspire people to do the things that inspire them.
Sinek is the author of three Best Sellers, according to the New York Times and the Wall Street Journal, which are "Start With Why: How Great Leaders Get Everyone To Take Action", "Leaders Eat Last: Why Some Teams they work together and others don't ”and his latest published book is“ Together is Better: A Little Book of Inspiration ”. However, Simon continues to work, proof of this is that at the end of 2017 he will publish his fourth book entitled “Finding your Why: A Practical Guide to Discovering His Purpose and that of His Team”.
Sinek, given his profession, was always fascinated by the leaders and organizations that caused the greatest impact in their organizations and the entire world, those who have the capacity to inspire, for which he discovered remarkable patterns in the way they think, act and communicate. as well as the environments in which people naturally function best. Simon has dedicated his life to sharing his thoughts to help other leaders and organizations inspire action.
Sinek is also known for popularizing the concept of the Why? (Why) in his first TED talk in 2009. Since then his video has garnered more than 27 million views and has been translated into 43 languages
Simon's unconventional and innovative ideas on business and leadership have attracted international attention and with this he has earned different types of invitations to meet with organizations such as Disney, JetBlue, MARS, SAP, KPMG, Pfizer, NBC, Government Agencies and different types of entrepreneurs.
He currently has different types of social networks, as well as his own blog in which you can find various articles that propose an explanation of things, through Sinek's analysis and perspective, he is also an associate member of RAND Corporation, one of the most prestigious groups of thinkers in the world.
THE GOLDEN CIRCLE
Golden Circle. Source: (Sinek, 2017d). Own Elaboration
The book Start With Why (Sinek, 2009b) begins by explaining that there are classes of leaders, those who obtain their power or leadership from their position and those who may not have the position although this is not always the case, but they inspire us.
Whether it's organizations or individuals, we follow them because they lead, not because we have to, but because we want to. We follow those who lead not for them, but for ourselves.
According to Sinek, our behavior is affected by our assumptions or our perceived truths. We make decisions based on what we think we know. With several examples in history, such as the discovery of America, we can see how the correction of a simple false presumption can move the human race forward, new trade agreements, new travels, new established routes and new knowledge.
(Sinek, 2015) mentions that every organization on the planet and even our professions work at 3 levels:
- What do we do? How do we do it? Why do we do it?
When those three pieces are aligned, they provide a filter through which we make decisions. This provides the foundation for innovation and trust building.
For the golden circle to work properly, there must be:
- Clarity of Why, Discipline of how, and Consistency of what.
No section of The Golden Circle is more Important than the other. The most important thing is that there is a balance between the three.
Simon Sinek explains this to us in the following way:
- WHY: If you don't know why you do what you do, how do you expect someone else to know? In order for others to know Your Why, you must first be clear about your own Why. HOW: The actions that you and your people take to bring your cause to life must be aligned with your values, Guiding Principles, strengths and beliefs. And everything you say and everything you do must be consistent with what you believe. After all we live in a tangible world. The only way people will know what you believe is if you say and do the things that you really believe.
In the book (Huba, 2013) we find an example of the operation of the What and Why in a hypothetical marketing model for Apple and the impact it has:
Functioning of the What (Golden Circle). Source: (Huba, 2013). Elaboration: Own
THAN?
In the document (Sinek, 2015) he mentions that each organization and individual knows what they are doing. For an organization, these are the products they sell or the services they offer. For an individual, this is their job or role.
HOW?
Likewise (Sinek, 2015) some organizations and individuals know how they do what they do. You can call it a differentiating value proposition, patent processes, or unique selling proposition. The hows are the strengths, values and principles of organizations and individuals. These are the things that separated them from their competition, the things that they think make them special or different from everyone else.
WHY?
In (Sinek, 2015) they let us know that very few people and very few organizations can clearly articulate why they do what they do, why it is a purpose, a cause or a belief. Making money is not why, having economic benefits, profits, and any other economic measure is simply the result of what they do.
The why is about contributing to impact and serving others, why it inspires us. The Why provides clarity, meaning, and direction. It is a filter through which we can make decisions, every day, to bring your cause to life. A Why statement is a sentence that captures your unique contribution and impact. Contribution is the real actionable part of your Why. Impact is the condition in which you want to leave people around you. Together, these two components provide satisfaction for you and those we serve.
People naturally communicate from the outside in, typically ranging from what is easiest to understand to what is most difficult to understand and explain. They tell people what they do, they tell them how they are better or different, and they expect behavior like a buy, a vote, or an endorsement.
Sinek gives us an example of how most organizations communicate:
Golden Circle (Why). Source: (Sinek, 2017d). Elaboration: Own
- What ?: Here's our Law Firm How ?: We have the smartest attorneys in the industry, who graduated from the top-ranked schools in the world. Have you seen our client list? Only Fortune 500 classifieds! And come and check out our offices, they are absolutely impressive Behavior: Come do business with our law firm
The problem is that the what and how do not inspire action. Facts and pictures make rational sense, but people don't make decisions based solely on facts and figures. Starting with what organizations that trade typically do. Starting with Why is what leaders do, because leaders inspire.
Leaders and organizations with the ability to inspire, act and communicate from the inside out. They start with their Why, when they communicate their purpose or cause first, they communicate in a way that drives decision-making and expected human behavior. It literally hits the part of the brain that influences behavior.
Ideas and Golden Circle. Source: (Sinek, 2017d). Elaboration: Own
We will return to the example of lawyers, but this time starting with their Why:
- Why ?: We believe in serving the needs of others, so they can focus on the difference they need to make. How ?: We do it by recruiting smart legal professionals who graduated from the best schools in the world. We work with the organizations that have the best organizational performance, most are on the Fortune 500 list, so that we can help them make a bigger difference in the world. And we like to go there and beyond, which is why we build incredible offices. What ?: We are a World Class Law Firm, Come and see for yourself.
If the people at this firm truly believe in their Why and think, act and communicate starting with their Why, they will attract people who believe in what they believe and will want to be part of their cause.
THE GOLDEN CIRCLE AND THE HUMAN BRAIN
Sinek argues that this is all based on biology and compares the human brain to The Golden Circle.
Human Brain and Golden Circle
In order to understand this part, it is necessary to know the principles of the triune brain, therefore (NeuroMarketing, 2015) explains that the triune brain or the theory of the three brains was an evolutionary model proposed in the 1960s.
In 1960, Dr. Paul D. MacLean postulated that the brain structure of the human being obeyed an evolutionary process of adaptation. In this process, three structures could be perfectly distinguished, which could explain human behavior in a simple and accurate way. He named the architecture of the brain in three components: a reptilian brain, a limbic brain, and a complex neocortical brain. To each of these regions he attributed functions linked to their biological counterpart. Thus, the reptilian brain controls survival processes, the limbic brain is the center of emotions and desire impulses, and the neocortical brain was the center of thoughts, mathematical abstraction, and verbal language.
(Valenzuela, 2015) mentions that our brain has 3 fundamental areas that condition our decisions; Neocortex or rational part (15%), Limbic System - Emotions, Reptilian System - Instincts or Basic needs (85%).
Emotional Brain and Rational Brain. Source: (Valenzuela, 2015)
The one outside the brain is the Neocortex, which corresponds to the level of What, according to The Golden Circle. The Neocortex is the newer brain or the Homo Sapiens brain. This brain is responsible for all rational and analytical thoughts and language.
The two sections in between the How and Why of The Golden Circle are made by the Limbic Brain. Since this is responsible for all feelings, such as trust and loyalty. He is also responsible for human behavior and decision-making, yet he does not have the capacity for language.
In other words, communicating from the outside to the inside, sharing complicated figures or complex information with people, such as characteristics, benefits, facts and figures, is not going to lead to any human behavior.
However, if the communication is from the inside out and we speak directly to the part of the brain that controls emotions, behavior and the decision-making process occurs, that will lead to human behavior.
However, it is common that if we ask consumers, the reasons for their purchase, they end up citing characteristics, benefits, facts and figures, and that is why they occur in the Neocortex, which is the thinking part of the brain, it is always trying to understand and make sense of the world. This is why we think we are rational beings when we really are not. If we were, they would never buy a product or service simply because of how it makes us feel. We would never be loyal, we always choose the best deal, we would never care about trust or relationships, we will only evaluate the numbers.
The world does not work like that and we know it, because in reality we do not do that. We choose a product, service or company over its competitor because of the way it makes us feel.
On the other hand, the limbic system controls our emotions, feelings and decision making, but we have to remember that it does not have the ability to speak. We make decisions using our limbic system and then rationalize that decision with the part of the brain that can communicate with words, the Neocortex.
Simon mentions that there is a difference between repeat business and loyalty. Repeat business means that someone is willing to continue doing business with you. Maybe because of the price, a feature, or some kind of convenience. As soon as that convenience is no longer available, the customer complains or simply leaves, to meet their needs elsewhere. Loyalty is very different. Loyal consumers may choose to suffer some kind of inconvenience to continue doing business with you. They will pay more, They will travel further, they will proudly defend your brand, even if their product or service is more expensive, further away, or in some way less convenient.
THE GOLDEN CIRCLE AS A COMMUNICATION TOOL
(Sinek, 2017c) reminds us that The Golden Circle is not just a communication tool; It also provides an idea of how large organizations are structured. If we imagine the Golden Circle as a three-dimensional model, it would look like a cone.
The cone represents a company or an organization, an inherently organized system. At the top of the system, Representing the Why, is a leader. She or He articulates the Why and points to a vision of a better future. The next level, the How level, includes people who are inspired by the leader's cause. They give their blood, sweat, and tears to build and bring the leader's vision to life. The What, at the bottom of the cone, are the things the organization says and does to bring the Why to life. This makes it tangible. An organization communicates its Why through everything it says and does; Marketing, products and services that the organization provides, absolutely everything.
For a message to get out, it must be loud and clear, like a megaphone. Stop is easy, just drive sales or buy marketing. Sure is more difficult.
When an organization is clear about its purpose or WHY, everyone from employees to customers can understand it. This clarity invites everyone who interacts with the organization to become champions of the cause. Ideally, this clarity begins at the top of the organization and moves through the entire company. You can inspire people to create products, services, solutions, and marketing that bring the Why life. When everything you say and do permeates what you believe, you end up with a strong and clear message.
IMPORTANCE OF USING THE GOLDEN CIRCLE
(Sinek, 2009b) reminds us that the importance of using The Golden Circle is to have people who believe in our cause, committing themselves to our brand and acquiring our products, even when our products are not consolidated in the market.
And this can be verified with the model proposed by the theory called "diffusion of innovations", which explains the processes of dissemination of new news in different societies. The diffusion of innovations is a sociological theory that aims to explain how, why and at what speed new ideas (and technologies) move through different cultures.
Not all people who adopt a product do so at the same time. They are classified into 5 categories, which occur chronologically and their distribution over time conforms to the normal distribution.
- Innovators are the first to adopt a new product. They are a very small minority (2.5% of all adopters) and constitute the cream of the market. These first users tend to be people with income and studies above the average, they are more risk-loving, adventurous and cosmopolitan. First adopters constitute 13.5% of all adopters, they do not wait for a large number of users to acquire the new product. They are opinion leaders who have a great impact on later adopters. They tend to be self-confident, outgoing, imaginative and rational people. Their influence implies the success or failure of a new product. The first majority corresponds to 34% of all adopters, they are less risk-loving and deliberate more in their purchase decision.The entry of this group is decisive for the consolidation of the product in the market.The last majority constitutes 34% of the total adopters, they are risk averse, they are usually skeptical and insecure. They only acquire the product when it is widely accepted by the market. Laggards correspond to 16% of all adopters, they tend to be people with low income and studies, traditional ideas, introverted character and who are reluctant to buy a new one. product or purchase when most potential users already have it.The laggards correspond to 16% of all adopters, they tend to be people with a low level of income and studies, traditional ideas, introverted character and who are reluctant to buy a new product or acquire it when most potential users already they got it.The laggards correspond to 16% of all adopters, they tend to be people with a low level of income and studies, traditional ideas, introverted character and who are reluctant to buy a new product or acquire it when most potential users already they got it.
EXERCISE TO DISCOVER YOUR WHY
Your Why is a statement of who you are. And you are who you are no matter what you do or where you go. The Why is applicable in every aspect of our life, not just at work.
On Simon's page (Sinek, 2017b) we find a very interesting dynamic, to be able to discover our why, it is described below.
Golden Circle Purchase Decisions. Elaboration: Own. Source: (Sinek, 2017b)
- In the first step, it is proposed to search for a source or sources, among friends and family. Make a list of 3 or 5 closest friends or family members, it is ideal to do everything in person, however, it can also be done by phone. Start asking the people on the list Why are they your friends? You will probably run into some difficulties in this step because people have a hard time expressing their feelings, as well as a lack of real understanding of the question. Listen to what people have to say to you, be patient. Take advantage of this step to ask every aspect that It is not clear enough to you and you can inquire more about the answer that people have given you. Compare the answers of the people on the list and that way you will find your Why in life,as it is something you do naturally to make your mark on the world.
COMPANIES THAT HAVE USED THE GOLDEN CIRCLE
In its scientific journal (UAG, 2015) it mentions the case of a company that has used The Golden Circle, however visiting its twitter page we found some differences in the words used, so the year in which the article was written, it is believed more convenient to make use of your twitter information.
Why and Golden Circle, Source: (Chido Games, 2017). Elaboration: Own
The aforementioned article concludes that doing without reason will hardly create innovation. In other words, thinking of a WHAT without having a WHY is condemning yourself to failure.
DETRACTORS
In Merca 2.0 magazine we find a quite interesting opinion from (Brodsky, 2015) that in his article relates the following:
From his flagship Ted Talk, author Simon Sinek was able to sell the idea that all brands need a purpose, a belief, or in other words, add a "why" to their DNA. However, the unspoken truth is that many brands can do quite well with a strong “what”, “who” or a “how”.
It all comes down to brand positioning in the market. In other words, the space that a brand occupies in the minds of consumers in relation to its competitors or benchmarks.
For example, Nike has led us to believe that if we have a body we can all be athletes. Nike is a brand that has instilled a sense of purpose, an inner mission, motivating people to simply believe in themselves and in this way become the best version of themselves. Their motto Just do it is a manifestation of that belief.
Puma, on the other hand, positions itself as the "after hours athlete", where fun and style are the metrics of success and not athletic performance. Those personality traits are clearly expressed by his ambassador Usain Bolt who in addition to being the fastest man on earth is also a nightclub owner and loves to party, even when racing.
Reebok's newfound positioning was directly driven by the CrossFit trend, essentially a new method for physical, mental and spiritual exercise. Their new logo, the Greek Delta, was able to perfectly communicate the regime of a modern Spartan tribe of consumers.
The above examples are from sports brands that sell virtually the same types of products, but offer fundamentally different experiences.
Nike, the “why” brand, focuses on the infusion of purpose, that we all have true potential to be achieved. Puma, the brand of "who", defined by its idiosyncrasies, where having a good time is what matters.
Reebok, the “how” brand, made sure to align itself with the quasi-military discipline and techniques of CrossFitters.
With the above in mind, one could easily disprove Sinek's theory and at a more strategic level we could divide all those brands into two groups: iconic and symbolic.
An icon is an encapsulation of meaning, where what is seen, heard, smelled, touched or tasted is immediately understood, without the need for interpretation. That is the case of brands that chose to represent something unique and immutable. Nike is an iconic brand as much as Heinz, Chanel No. 5, Hitchcock or the Rolling Stones. They are immediately recognizable for their unique styles, and most attempts to copy them are unsuccessful.
Symbols are transitory carriers of meaning where they not only represent different things to different people, but also change their own meaning through time and space. Reebok transformed its meaning and association with aerobics and Jane Fonda to become the CrossFit brand. The Beatles took an entire generation on a crazy musical journey through a style that evolved from rock & roll to pop to psychedelic rock and raga rock. Melbourne (where I live) is a city that must be experienced to be understood and appreciated. Sydney is the opposite, where photographing its icons like the Opera House, Bondi beach or Sydney Harbor practically eliminates the need to spend time in these places; as if his Instagram account had transported him there by osmosis. So,What kind of brand is better: iconic or symbolic? It depends.
Iconic brands, defined through a “why” or “who”, have a timeless appeal, are more likely to own a part of the culture and generally offer a more consistent experience, helping to build trust with their audiences and, generally requiring minor managerial and financial efforts once established. However, iconic brands are also more rigid and in an age of constant change and cultural fluidity this can become a problem when it comes to winning new customer segments or staying relevant. Additionally, charismatic leaders or brand ambassadors like Richard Branson or Usain Bolt don't last forever and it can be difficult to replace them and maintain the energy they radiate inside and outside of their organizations.
Symbolic brands, defined through "what" or "how", are more agile, flexible and with greater influence on cultural trends. Brands that focus on their products and services will have a better chance of staying ahead and using that as a competitive advantage. However, that can also pose a challenge for employees who are not in the shop or in sales, thus far removed from products and services, sometimes lacking in purpose beyond financial metrics.
There are also drawbacks, starting with the fact that different people have different personalities and that choosing a specific personality automatically excludes a large part of the consumer market.
Ted Talks are indeed very inspiring but understanding the mechanisms responsible for branding is still more effective than the seduction conveyed by great presenters and outlandish theories.
ACKNOWLEDGMENTS AND THESIS TOPIC
I thank God for all his blessings, as well as the opportunity to work through the process of improving myself. I thank my parents for supporting me at all times in this new adventure, the National Council of Science and Technology for their support in my postgraduate studies, the Orizaba Technological Institute, the Master of Administrative Engineering, as well as the subject of Fundamentals of Administrative Engineering, for providing me with the necessary bases to be better as a professional and as a human being.
Topic: Implementation of a Golden Circle model to increase the profitability of the company in the sales area and improve the organizational climate.
Objective: Implement a Golden Circle model in the organization to increase the profitability of the sales area and improve the organizational climate.
REFERENCES
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