The Golden Circle for company and brand building

The identification and clear formulation of mission, vision, and values is crucial for every company. But how do you approach this challenge? Simon Sinek offers an impressive approach with his concept of the GoldenCircleto clarify the "Why," "How," and "What" of your company. In this tutorial, you will learn step by step how to apply the Golden Circle to your company to strengthen your brand story and better address your target audience.

Main Insights

• The Golden Circle differentiates between the "Why," "How," and "What" of a company.
• People are inspired by the "Why."
• A clear definition of your company’s mission and vision is essential.
• Authentic and transparent communication is key to brand building.

Step-by-Step Guide

Step 1: Understand the "Why"

Your journey begins with the question: Why does your company exist? The "Why" is the core of your company and goes beyond mere profitable goals. It's about the positive impact you have on your customers' lives and what motivates them to identify with you.

Here is an example of how Harley Davidson has defined its "Why": "We fulfill dreams of personal freedom." This strong "Why" is what connects and inspires the brand with its customers.

Step 2: Define the "How"

The heart of the brand identity is the "How" of your company. This describes the specific approaches and methods you use to implement your mission. Consider what unique processes or values set your company apart from others.

Harley Davidson has formulated its "How" in a way that includes the community of motorcyclists and binds them to its values of freedom and adventure. These approaches must be clearly expressed in brand communication.

Step 3: Clarify the "What"

The "What" describes the specific products or services that your company offers. While this is the outer ring of the Golden Circle, it is important that the "What" can be logically derived from the "Why" and "How."

Assume your company not only manufactures products but also stands for a lifestyle. Ensure that your customers understand that your offering is more than just a product purchase – it's part of their way of life.

Step 4: Pay Attention to Authenticity

When formulating the "Why," "How," and "What" of your company, make sure that these statements are authentic. The risk of appearing uninspired or superficial is high if you do not have a deeper connection to your answers. Reflection on your inner and outer motivations is essential here.

For example, a personal trainer can justify their self-employment by stating that they want to help people recognize and develop themselves. This illustrates a deeper motivation that resonates with customers.

Step 5: Develop Your Brand Story

Once you have defined the elements of your Golden Circle, it's time to package these themes into a coherent brand story. Your story should seamlessly connect the mission, vision, and values of your company and be inspiring for your target audience.

People feel connected to stories that evoke emotions. Link personal experiences or customer feedback to emphasize the significance of your brand.

Step 6: Create Clarity in Communication Channels

Whether on your website, in presentations, or on social media – your mission, vision, and values must be communicated clearly. All content you produce should be consistent and support the image of your company and your offerings. The company Junge has exemplified this through a corporate mission statement and engaging videos.

Through visual content that highlights your values and offerings, you draw the attention of your target audience to you and create an emotionally anchored connection.

Summary - Positioning of Companies & Brand Building: The Golden Circle in Practice

The process of defining your corporate identity through the Golden Circle is crucial for the long-term success of your brand. By clearly formulating and authentically communicating your "Why," "How," and "What," you create a strong connection to your target audience. It’s even better when you additionally develop an inspiring brand story that brings these fundamental elements together.