The recipe of business leadership: the Golden Circle rule.
What is the golden circle model of leadership
Mastering the business isn’t an easy task especially in a very competitive market.
But why are Apple, Wix, or PayPal so innovative and popular? Year after year they increase their market share. But those companies are not unique. There are lots of competitors who have a similar idea and audience, a qualified team, and large investments into marketing. They tried, and I believe still trying, to beat them. Not successful so far, as I see. So why do some products or organizations become leaders? Why do they inspire consumers and how you can bring closer to that?
The recipe is in the Golden Circle. I was truly inspired by this term of Simon Sinek. It’s how all the top organizations on the planet work. Let me explain with some insightful examples.
All businesses know WHAT they do – the product or service they provide.
For example, the company that I work in is Wincher. It’s an SEO rank tracker. We also have such features as a keyword research tool and a free on-page SEO checker. So what do we do? We provide accurate SEO data to website owners and help businesses to measure their online performance.
Most organizations know or try to get to know HOW do they do their business. Here I mean the value proposition. It can be in unique features, ways of promotion and interaction with the audience, etc. However, innovative companies are always seeking for new ways to show the value, share their product, and service with society.
Let’s come back to the example of Wincher. How do we convey value? We position ourselves as the simplest and the most affordable keyword rank tracker. We know what’s important for our target audience and try to bring the best solutions to them. For example, we keep our price as low as possible and make the product very user friendly, because most SEO tools are very complicated. As to the interaction with the audience, our brand is about openness, care, and clear solutions.
Very few people or organizations know WHY they do what they do. And by “why” I don’t mean “to make a profit”. That’s always a result. By “why” I mean the purpose of your activity.. Ask yourself – “Why does my company exist?”.
That’s common that we usually act from outside in – from “what” to “why”. But leaders, regardless of size and industry, think and communicate from “why” to “what”.
Successfully articulating your ‘Why’ is a very impactful way to interact with your audience, partners and colleagues, define your particular value proposition and stand out in the market.
When I joined the Wincher team, the product was already stable, it had a loyal audience and uniqueness in the value. But we decided to boost all processes and spread the word about us and our idea. Our “why” is in making SEO and content marketing outcomes clearer for website owners. After we articulated our main idea, we’ve revised our internal interaction with customers, added useful tips and tricks that are easy to implement to see first results. We’ve created a complete easy-to-read SEO guide. On the other side, we’ve started experimenting with outbound marketing campaigns and collaborating with businesses with similar ideas.
Importance of articulating your personal and business “Why”
I know, lots of us don’t have enough time and desire to think about such a sophisticated thing as the mission of your brand. We are tied to new marketing campaigns, regular promotion in social media, direct sales, etc. We’re permanently looking for new ways of business development. But you know that it’s like running around in circles. To create a strong brand we need to find the right vector firstly. And then connect all your marketing and sales processes around your belief and the main mission of your company. Something important and valuable should be behind your business. Then it will work.
Let me give a few inspiring examples. I bet all of you hear about LinkedIn. Their mission and foundation of the organization are based on such a statement “To connect the world’s professionals to make them more productive and successful.” Is it easy to understand their “why”? Absolutely! All their processes, product, and services are based on this belief.
PayPal exists “to build the web’s most convenient, secure, cost-effective payment solution.” And this mission didn’t happen when they’d already been popular. In the book “Zero to One: Notes on Startups, or How to Build the Future” by Peter Thiel, one of the co-founders of PayPal he listed all the stages of the launch. But the idea to create the most convenient payment solution was a foundation that drives the organization.
No matter what industry and business we are involved in. All of us want profit, growth, and recognition. That’s totally clear and it’s human nature. But true value and idea should stand behind. Just ask yourself “Why I do what I do”. Share your insight with your audience and team. Your belief and cause of actions will definitely attract your people, who need you and your product.
Share your “Why” in the comments below.
If you want to figure out more about the theory of Simon Sinek, you can watch his speech on TEDx.