The Golden Circle: How to identify your company’s purpose?

How to identify The Golden Circle is a concept created by Simon Sinek that helps us identify the purpose of our company through an internal perspective .  Correctly answering questions like “why did I found my company?” or “what is my main mission?” will provide us with valuable information, especially if we want to implement an Inbound Marketing strategy in our business . Thanks to the Inbound approach, we improve the visibility of our company so that our prospects can find us faster and at the right time. But to develop it successfully, we must first understand and define the purpose for which we founded our company.

 

The Golden Circle to identify your company’s purpose. 

The Golden Circle consists of three concentric rings: 

That.

The outer ring identifies WHAT our company does; that is, the sector we belong to, the product we sell or the service we offer. It is something sweden whatsapp number data and can be common to several brands or companies. 

As.

The middle ring represents  HOW we do it; that is, it refers to the way in which we differentiate ourselves from the rest of the companies that have an outer ring equal to ours.  These are the things that make us special, unique and distinguish us from the competition.

Because.

The golden circle, located inside, identifies the WHY of our company, and is the reason for the HOW and WHY. It is something much more google will become much smarter over time and transcendental. The why is a purpose, a cause or values. It is the essence of why a company exists.

Typically, most companies begin to be built from the outside in, and this can sometimes translate into poorly stated purposes, but if we clearly define the why of our company, the reason why we started and offer the product or service, we will be on the right path, we will be better prepared to grow better, the rest of the circles will form naturally.

A common mistake is to think that growth and profits are the WHY. Profitability must be part of the HOW, since profits, which are so necessary to sustain us, do not explain why we do things. These concepts must be understood by each member of the team.

 

The concept of the Golden Circle would explain why some leaders and reference brands have achieved such an extraordinary level of influence on people and our way of life. 

The importance of identifying your company’s purpose.

There is a quote from Simon Sinek that sums up the importance of identifying the purpose: “If a leader cannot clearly explain WHY his anhui mobile phone number list exists, beyond its products or services, how does he expect his employees to know WHY they are going to work?”

The WHY of our company has a direct impact on employee performance . The ideal behavior is for all employees to work toward the same purpose, fostering a culture that supports our goal .

 

What is company culture?

A company’s culture is part of the service and promise we make to our customers. The basis of the Inbound methodology is to be more human and this implies being empathetic and adaptable to people and circumstances. 

Our employee experience will be the fundamental promise we make to our customers, our company and our growth strategy.

Therefore, to identify and develop the WHY , we must follow these steps: 

1. Defines the company culture .
2. Define the team culture .
3. Define the purpose of the company from the perspective of the clients,  taking into account that these may be different from the values ​​that motivated us from the beginning.

 

Understanding a company’s purpose from the customers’ point of view.

Understanding a company’s purpose from the customers’ perspective can help us improve our strategy and adapt it to new needs. 

This aspect is discussed in depth in the book Competing Against Luck by Clay Christensen. One of the most striking examples is Campbell’s Soul Company . This company promoted V8 for many years, just like all other juices, with the purpose of quenching thirst on a hot day. Once they began to investigate why people consumed this drink, they discovered that their most loyal customers did not consume it out of thirst but as an alternative to eating vegetables, since V8 was a quick and convenient way to eat vegetables, avoiding the inconvenience of having to peel, boil and prepare them on a plate. Once Campbell’s Soul Company understood this, they decided to change their strategy and market V8 as an alternative to eating vegetables. This change allowed them to quadruple their sales. 

This is the power of understanding a company’s purpose from the customers’ point of view . If we can get all employees in our company to share a customer-centric culture , we will always have a competitive advantage that no one can take away from us. It is the best investment we can make to maintain and enhance our value.