Start With Why

Chapter 3 introduces the core concept of The Golden Circle, one of the fundamental concepts of the book. In essence, the Golden Circle is the embodiment of how you start with WHY.

Defining The Golden Circle

The Golden Circle visualizes the structure of an organization and looks like a bullseye target with three rings. The bullseye at the center is the WHY, the next ring out is the HOW, and the largest ring is the WHAT. When making decisions or communicating, you begin at the center with the WHY, then migrate out to the HOW, then finally the WHAT.

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Let’s define those terms in reverse order:

WHAT: this is the product a company sells, the service a company offers, or what a particular employee does. The WHAT is what most companies talk about the most. It’s easy to understand but superficial.
HOW: this describes HOW the company accomplishes the WHAT. Often, this is considered a company’s “differentiating proprietary process” or “unique value proposition.”
WHY: this boils down to the motivation behind why companies or people do what they do. This is often a purpose, cause or belief. Why does Microsoft make software, for example? Or why does a particular politician want to run for office? Few people or organizations can explain WHY they do what they do—mainly because it’s the hardest to articulate.

When it comes to communication, people tend to want to work from the outside in because it’s easier to explain your WHAT than it is to explain your WHY. Often, companies even stay at the outside layers, focusing only on the WHAT instead of the HOW or the WHY.

In contrast, all great companies have in common work The Golden Circle in reverse: they start with the bullseye (WHY) and work their way outward.

Apple and Golden Circle Marketing

Apple consistently uses The Golden Circle correctly. They begin with WHY, then figure out HOW they’ll achieve their vision and WHAT they need do create to get there.

This is clear in Apple’s marketing. Think about how strange it would sound if Apple took the typical WHAT to HOW to WHY marketing approach. It might sound something like this:

“We make good computers. Our computers are easy to use, elegant, and well designed. You should buy one.”

Now, compare that to the start with WHY approach that Apple actually uses to inspire customers:

“We think differently. We want to challenge the status quo. The way we do this is by making products that are easy to use, elegant, and well designed. And we just happen to make computers as our products. You should buy one.”

The difference is that Apple’s products are a result of their WHY. Their MacBooks, iPods, and iPhones are just a physical representation of the company’s core beliefs. Therefore, when someone buys an Apple product, they’re not just buying the WHAT: they’re buying the WHY, too.

Put another way, people don’t actually want to buy stuff. They want to buy ideas. They want to join movements. Putting your WHY first ensures that your ideas, not your product, are what make you stand out from the crowd.

It’s not that Apple’s products don’t matter - quality matters, of course. But the connection between a strong WHY and a high-quality WHAT becomes an unstoppable combination. Lots of companies make arguably equally high-quality products - but people don’t feel the same emotion and inspiration with a Dell laptop or a Samsung phone. Apple is unique in the strength of people’s emotional and inspirational connection to their mission - and this starts with WHY.

Apple and Golden Circle Decisions

Beyond marketing to consumers, all of Apple’s decisions, from product design to its advertising campaigns, put the WHY first.

Here are three examples of how Apple has done this over the past four decades:

1. The Mac Computer

The original Apple computer was designed to put accessible, easy-to-use computers in people’s homes. This broke up the monopoly that big businesses had on computing power, and it put opportunity back in the hands of the common man.

2. iTunes

The record industry had an iron grip on how people could listen to music—until Apple came along with the iPod and iTunes. By marketing the iPod as a device that put thousands of songs in your pocket, they focused on the WHY. (Note how they didn’t define the iPod as the WHAT of being an 8GB MP3 player.)

Further, with iTunes, they challenged the music industry’s strong grip on how people consumed music, letting them purchase songs digitally instead of whole physical albums. This fit Apple’s WHY of challenging the status quo and upsetting old power dynamics to empower consumers.

3. Apple Vs. Apple, Inc.

In 2007, Apple changed its legal name from Apple Computer, Inc. to Apple Inc. Apple had become an “ideas” company--a WHY company--and wanted its legal name to reflect its philosophy.

The Results of Apple’s WHY

Making every decision with their WHY in mind has put Apple ahead of their competitors both in the tech industry and beyond.

Would it feel right to stand six hours in line for a new Dell computer? No - because the many other computer manufacturers have focused on the WHAT. When you buy a WHAT product, you don’t feel like you personally identify with the company’s mission (if it even has one). It’s a simple transaction, and one computer is just about as good as another.

In contrast, people who buy Apple’s WHY will choose Apple products over competitors’, because they are inspired. They feel they are part of the mission.

WHY Isn’t About “Being Better”

Which is better, Mac or PC? Everyone has an opinion, and the debate can get heated.

But when you use The Golden Circle, winning a debate like that one doesn’t matter.

Depending on the customer, “best” is subjective. Even though Apple is an industry leader, their products are right only for those people who share Apple’s WHY. Other people may align with different missions and have different needs. And that’s okay. It’s not about a Mac or a PC being “better” or “worse.” It’s about making sure the right people who align with your WHY are using your product.

Starting With WHY Creates Lasting Success

Working The Golden Circle from the inside out - starting with WHY - provides a path to long-term success. It provides a mix of innovation and flexibility that allows a company to adapt to changing circumstances.

Take railroads, for example. In the late 19th century, railroads were some of the biggest companies in America. Their early innovations changed the landscape of the country.

But over time, railroads lost sight of their WHY and instead began focusing on WHAT they were. Instead of defining a WHY of “moving people affordably,” they focused on the WHAT of “railroads and trains.”

So when the airplane was introduced, many of those big railroad companies went out of business. If they’d kept sight of their WHY, the outcome might have been different. They might have realized technology was changing and switched to a better WHAT to meet their WHY.

This example demonstrates one of the dangers of using The Golden Circle from the outside in. When you lead with WHAT, you become vulnerable to new technologies and trends. It makes it hard for people to see why your products or services have value in the face of change.

This is true for newspapers, publishing, even television. Starting with WHY does more than help you adapt--it helps you innovate, which is the key to lasting success.

Two other reasons that starting with WHY lends to long-term success: