In the realm of business strategy, two powerful concepts have emerged: Simon Sinek‘s Golden Circle and the fundamental question, “What business are you in?” While seemingly distinct, these frameworks offer complementary perspectives for organizational success.
Sinek’s iconic “Start with Why” approach has inspired countless leaders to focus on purpose and inspiration. By understanding the core values and beliefs that drive an organization, businesses can build deeper connections with customers and employees.
However, while purpose is essential, it’s equally crucial to define the specific value you deliver to the market. This is where the question “What business are you in?” comes into play. By clearly articulating your core offering and understanding your customers’ needs, you can create a sustainable business model.
In this article, we will explore how these two concepts intersect and provide a roadmap for businesses seeking to achieve both purpose and profit.
While Simon Sinek’s Golden Circle emphasizes the importance of starting with “Why” to inspire and motivate, it’s equally crucial to define the “What” of your business. The “What Business Are You In?” framework complements the Golden Circle by providing a clear focus on the market and customer value.
By combining these two perspectives, organizations can create a powerful synergy. A clear understanding of your “Why” (purpose) can guide the development of your “What” (product or service). For instance, a company with a strong purpose of sustainability might develop products that minimize environmental impact.
On the other hand, defining your “What” can help clarify your “Why.” By understanding the specific value you deliver to customers, you can better articulate your purpose and mission. A company that focuses on providing exceptional customer service might discover that its underlying purpose is to build lasting relationships.
Together, the Golden Circle and the “What Business Are You In?” framework provide a holistic approach to strategic planning. By aligning your purpose with your market offering, you can create a sustainable and successful business.
Simon Sinek’s Golden Circle
- Focus: Prioritizes internal alignment and inspiration.
- Order: Starts with “Why” (purpose), then “How” (actions), and finally “What” (product or service).
- Goal: To inspire and motivate employees, customers, and partners.
“What Business Are You In?”
- Focus: Emphasizes external market orientation and strategic clarity.
- Order: Starts with understanding the “What” (customer needs) and then defines the “Why” (value proposition).
- Goal: To achieve sustainable competitive advantage and business growth.
Key Differences:
- Sinek’s Golden Circle is more inward-focused, aiming to inspire from within.
- “What Business Are You In?” is more outward-focused, emphasizing market understanding and customer value.
However, they are not mutually exclusive. A strong business definition, as outlined in the “What Business Are You In?” approach, can contribute to a clear “Why” as described by Sinek.
Companies That Integrated the Golden Circle and “What Business Are You In?”
Apple
- “What Business Are You In?”: Apple is in the business of creating seamless user experiences and cultivating a loyal customer base.
- Golden Circle: Why: To challenge the status quo and provide tools that foster human creativity and expression. How: Through design and innovation. What: Computers, smartphones, tablets, and other consumer electronics.
Tesla
- “What Business Are You In?”: Tesla is in the business of sustainable transportation and energy solutions.
- Golden Circle: Why: To accelerate the world’s transition to sustainable energy. How: By producing electric vehicles and clean energy solutions. What: Electric cars, solar panels, energy storage.
Nike
- “What Business Are You In?”: Nike is in the business of empowering athletes and creating a global sports culture.
- Golden Circle: Why: To inspire and enable athletes. How: Through innovative product design and marketing. What: Athletic footwear, apparel, and equipment.
These companies have effectively integrated their purpose (Golden Circle) with their market offering (“What Business Are You In?”) to achieve remarkable success.