The Golden Circle: Understanding Why, How, and What in Product Strategy
Introduction to the Golden Circle
In Start with Why, Simon Sinek introduces the Golden Circle as a framework for understanding how great leaders and organizations inspire action. The Golden Circle consists of three concentric circles that represent different levels of communication and decision-making: Why, How, and What.
The Three Circles
The Golden Circle is structured from the inside out:
- Why (The Core): Your purpose, cause, or belief—the reason you exist
- How (The Middle): Your unique strengths and values—how you deliver on your why
- What (The Outer): Your products, services, or results—what you do
Why: The Core Purpose
According to Sinek, the "Why" is the most important element of the Golden Circle. It represents your purpose, cause, or belief—the reason your organization exists beyond making money. The Why is what inspires people and creates loyalty.
Characteristics of a Strong Why
- Purpose-Driven: Focuses on the impact you want to make
- Belief-Based: Rooted in values and principles
- Inspiring: Resonates emotionally with people
- Timeless: Remains constant even as products and services change
- Clear: Can be articulated simply and understood by everyone
Examples of Strong Whys
- Apple: "Challenge the status quo and think differently"
- TED: "Ideas worth spreading"
- Southwest Airlines: "Democratize air travel"
- Disney: "Create happiness"
How: The Differentiating Values
The "How" represents your unique strengths, values, and principles that differentiate you from competitors. It's how you deliver on your Why. The How includes your values, culture, and the principles that guide your actions.
Characteristics of a Strong How
- Unique: Differentiates you from competitors
- Actionable: Can be translated into behaviors and processes
- Consistent: Applied consistently across all decisions
- Aligned: Supports and enables your Why
Examples of Strong Hows
- Apple: Beautiful design, simplicity, user experience
- Zappos: Exceptional customer service, company culture
- Patagonia: Environmental responsibility, quality products
What: The Tangible Results
The "What" represents the products, services, or results you deliver. This is the tangible manifestation of your Why. While important, the What alone is not enough to inspire loyalty or differentiate you from competitors.
Characteristics of the What
- Tangible: Can be seen, touched, or experienced
- Evolving: Changes over time as needs and markets evolve
- Measurable: Can be quantified and tracked
- Competitive: Often similar to what competitors offer
Communication: Inside Out vs. Outside In
Outside-In Communication (What → How → Why)
Most organizations communicate from the outside in:
- Start with what they do (products, features)
- Explain how they do it (processes, methods)
- Rarely articulate why they do it
This approach speaks to the neocortex (rational brain) and informs but doesn't inspire.
Inside-Out Communication (Why → How → What)
Inspiring leaders and organizations communicate from the inside out:
- Start with why they exist (purpose, belief)
- Explain how they deliver on that why (values, principles)
- Then describe what they do (products, services)
This approach speaks to the limbic brain (emotional brain) and inspires action.
Application in Product Development
For Product Managers
Product managers should use the Golden Circle to:
- Define Product Vision: Start with why the product exists
- Communicate Strategy: Lead with purpose, not features
- Make Decisions: Use "why" as a filter for prioritization
- Engage Users: Connect with users through shared values
For Engineering Teams
Engineering teams can apply the Golden Circle by:
- Technical Decisions: Understanding why technical choices matter
- Architecture: Aligning architecture with organizational why
- Code Quality: Building quality because it serves a purpose
- Team Culture: Creating culture based on shared values
Best Practices
- Start all communications with your Why
- Ensure your How supports and enables your Why
- Let your What be a natural expression of your Why
- Be consistent in communicating from the inside out
- Regularly revisit and refine your Why
- Ensure all team members understand and can articulate the Why
- Use the Why as a decision-making filter
Common Mistakes
- Starting with What: Leading with products or features instead of purpose
- Unclear Why: Having a vague or generic purpose
- Misalignment: How and What that don't support the Why
- Inconsistency: Communicating Why but acting differently
- Forgetting the Why: Getting caught up in What and How
Conclusion
The Golden Circle provides a powerful framework for understanding how to inspire action and build loyalty. As Simon Sinek emphasizes in Start with Why, organizations that communicate from the inside out—starting with Why, then How, then What—create deeper connections with customers, employees, and stakeholders. By understanding and applying the Golden Circle, product managers and engineering teams can create products and build organizations that truly inspire.
Reference
Sinek, S. (2009). Start with Why: How Great Leaders Inspire Everyone to Take Action. Portfolio/Penguin.