Starting with Why: Understanding the Golden Circle in Leadership and Organizations

Jason Quinnan, Project Manager, POWERS

Simon Sinek’s Golden Circle concept is a simple yet profound framework that emphasizes the importance of understanding your organization’s “Why.” As the image illustrates, the circle is divided into three layers: What, How, and Why. While most organizations can articulate what they do and some can explain how they do it, very few can truly express why they do what they do.

This article explores how leaders can apply the Golden Circle to inspire their teams and create a purpose-driven culture.

The Three Layers of the Golden Circle

1What: The Outer Layer

This is the most obvious aspect of any organization. It refers to the products you sell or the services you provide. Every organization knows what they do—this is the tangible output of their efforts.

Example: A manufacturing company might produce machinery. A retail store sells clothes. These are straightforward descriptions of what they do.

2How: The Middle Layer

This layer represents the unique processes, values, or strategies that set an organization apart from its competition. It explains the specific ways in which the organization operates to deliver its products or services.

Example: A company might emphasize sustainable production methods or offer superior customer service to distinguish itself in the market.

3Why: The Core

This is the deepest and most critical layer, yet it is often overlooked. The “Why” is the organization’s purpose, cause, or belief. It answers the question: “Why do we exist?” This layer focuses on the impact the organization wants to make beyond profit.

Example: A company like Tesla doesn’t just make electric cars (What). It exists to accelerate the world’s transition to sustainable energy (Why).

Why Leaders Must Start with Why

Organizations that communicate their Why effectively tend to inspire greater loyalty, creativity, and engagement from their teams. Here’s why focusing on Why is so impactful:

1Purpose Drives Engagement

Employees are more likely to feel motivated when they understand how their daily work contributes to a larger purpose. As Simon Sinek says, “People don’t buy what you do; they buy why you do it.” Similarly, team members don’t commit to the task itself—they commit to the mission it serves.

2Clarity in Decision-Making

When the Why is clear, it acts as a North Star for decision-making. Leaders and teams can align their strategies and actions with the organization’s purpose, ensuring consistency and focus.

3Building a Stronger Culture

Organizations that lead with their Why create cultures of trust and belonging. Employees feel part of something meaningful and are more likely to contribute their best efforts.

Final Thoughts

As Marie Curie once said, “One never notices what has been done; one can only see what remains to be done.” This sentiment reminds us that without a clear purpose, even our greatest efforts can feel disconnected. The Golden Circle helps leaders refocus on Why and inspire others to see how their work contributes to a larger, meaningful goal.

Starting with Why is more than a philosophy—it’s a leadership practice that fosters connection, purpose, and sustained success. Take the time to define, communicate, and live your Why, and watch your team thrive.