Golden Circle (Simon Sinek)
What is Simon Sinek’s Golden Circle?
The Golden Circle model was developed by Simon Sinek to help companies become more successful by focusing on their core motivation. Based on three central questions – WHY – HOW – WHAT – the model is designed to shift a company’s perspective from operational activities to its underlying purpose.
While many organisations focus primarily on their products, processes or day-to-day operations, Sinek highlights that long-term market success stems from a clearly defined WHY – a focus on the company’s purpose and meaning. According to this approach, innovative businesses and strong leaders don’t start by asking what they do or offer, but rather why they do it.
The business consultant and author Simon Sinek first introduced the Golden Circle in 2009 during a TED Talk. Today, that very talk is among the most-viewed videos on TED.com, and his bestselling book Start with Why, which builds on this concept, has become a widely recognised publication in leadership and business circles.
How Does the Golden Circle Model Work?
”People don’t buy what you do, they buy why you do it.”
The Golden Circle is founded on the three core questions – WHY – HOW – WHAT – which also reflect the fundamental principles of human reasoning. This is precisely what makes Sinek’s model so versatile: whether used as an agile working approach, for developing business models, or as a framework for building strong brand positioning.
WHY – Why do we do what we do?
The guiding principle of the Golden Circle is: “Always start with WHY.” According to Sinek, successful organisations and influential individuals always act with a clear vision in mind – a guiding purpose or ideology that inspires others. The WHY is the most critical element of the model; it defines the company’s purpose, the existential reason and inner drive behind its actions.
Key guiding questions:
Why does our company exist?
Why should customers choose our offering specifically?
Why should we be perceived as the preferred provider in our market?
HOW – How do we do it?
The HOW outlines the strategies, processes, methods, and actions a company uses to fulfil its WHY. It explains how an organisation brings its values to life and what makes it stand out – its uniqueness. The HOW not only helps to communicate distinctiveness externally, but also shapes how the company interacts with employees, clients, and investors.
Key guiding questions:
Which principles or values guide our decisions and actions?
Which standards or rituals help us embed our beliefs in daily practice?
What do we do differently from competitors to realise our WHY?
How do we respond to change without losing sight of our WHY?
The WHAT describes the company’s concrete offering – its products, services, or solutions. This layer of the Golden Circle is usually the easiest for businesses to define, as it is tangible and directly visible. However, the WHAT extends beyond physical products: it also includes the roles, responsibilities, and functions required to successfully position the offering in the market.
It is especially important to consider the company’s unique selling points (USPs) – the competencies, features or flagship products that make the offering distinctive and differentiate it from competitors.
Key guiding questions:
What products or services do we offer?
Which features or solutions are most valuable to our customers?
What sets our offering apart from that of the competition?
One essential aspect of the Golden Circle is the order in which the questions are addressed: ideally, one starts with the WHY, derives the HOW, and defines the WHAT last. The higher purpose – the WHY – forms the foundation from which the HOW and WHAT are developed.
That said, all three layers are equally essential. A compelling vision alone is not enough to ensure business success. Without clear methods, distinct capabilities, and a relevant offering, the WHY remains theoretical. Only through the HOW and the WHAT does the WHY become tangible, credible, and impactful.
What Role Does the Golden Circle Play for Brands?
The Golden Circle model has established itself as a proven framework in the context of marketing and brand strategy. It is frequently used in the development of brand identity to promote a customer-centric perspective on a company’s offering. The model enables the creation of a strong brand by focusing on unique and relevant value propositions and addressing the central question:
How can we be perceived more clearly and credibly than any other provider in the market?
In this context:
The WHY defines the brand’s reason for being and the role it plays in people’s lives.
The HOW shapes how the brand presents itself to the outside world.
The WHAT reflects the desirable outcome that the brand aims to deliver more effectively than any competitor.
Extending the Model: The WHO Dimension
Biesalski & Company has expanded Simon Sinek’s Golden Circle model by adding a fourth dimension – the WHO. This is particularly relevant in technology-driven and highly specialised B2B industries, where product and service portfolios are often complex, functional, and technocratic.
By linking the brand to a defined role and attitude – the way we want to engage with customers in service settings, sales conversations, and across every moment of truth along the customer journey – this dimension enables a more emotional brand experience.
“WHO are we when we speak to our customers?”
This question also supports employees in aligning their behaviour more consistently with customer needs across all areas of the business.
Strategic Relevance: A Practical Example
The strategic relevance of the model in brand development becomes evident in the following real-world example. It involves a technology company operating in the international B2B environment:
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