Use the Golden Circle to Shape Your Business Model More Effectively

The business model of your organization is a blueprint for how the company structures and executes its strategy. By integrating Simon Sinek’s Golden Circle—Why, How, What—your organization brings deeper purpose and clarity to the nine elements of its business model. This approach not only enhances the model’s structure but also ensures alignment with the company’s overarching mission and values.

Why the Golden Circle?

Simon Sinek’s Golden Circle emphasizes starting with Why—the core purpose of an organization. Most companies focus on What they do, but the Why fosters emotional connection and loyalty. According to Sinek, "People don’t buy what you do; they buy why you do it." Starting with Why inspires customers, employees, and partners, and creates a stronger sense of purpose and alignment.

Applying the Golden Circle to your organization's Business Model

By linking the Golden Circle to the 9 elements of the business model, your organization achieves targeted focus—a key growth principle in the ICR cycle:

Why:

• Reflected in Value Propositions (the unique value offered) and Customer Segments (why specific audiences are served).
• The Why can also be influenced by Partners who share the same mission and vision, thereby creating value together.

How:

• Found in Key Activities (how value is delivered) and Key Resources (how resources are utilized).
• Includes Channels, showcasing how the company connects with customers.

What:

• Evident in Customer Relationships (how services are provided), Revenue Streams, and Cost Structure (what is delivered and how value is monetized).

Why This Matters

Using the Golden Circle ensures each business model element aligns with the company’s purpose, strategy, and operational approach. It helps your organization better define its playing field, communicate effectively, and inspire loyalty from stakeholders.

By connecting the deeper "Why" with the operational "How" and tangible "What," your organization drives sustainable growth, achieving its mission with clarity and purpose.

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