Effective Leadership Video

This video starts off with Simon Sinek explaining the “Golden Circle.” The Golden Circle is a
business model that describes every business ever started and describes how some leaders can inspire
where others are not. He explains that the Golden Circle has three parts to it. These parts are What,
How, and Why. He describes these parts in the following order.

What- Every businesses or organizations know what they do 100%.

How- Some businesses or organizations know how they do what they do.

Why- very few businesses or organizations know why they do what they do. This is described as that
businesses/organization mission statement.

This “Golden Circle” plays a huge role in understanding why some companies are more
successful than others. Most companies go from the outside in. This is best explained as a company
stating this is “what we do”, this is “how we do it”, and this is “why.” For example, a car company
explains their business model as we make quality cars, we make quality cars this way, and we make
them so you can buy them. Very successful companies do this the exact opposite way. They go from the
inside out. Simon Sinek explains this by giving Apple as an example. He explains Apple starts with their
“why” first. Why they do what they do what they do. Apple business strategy is to challenge every belief
they have and make everything the make more innovated and user friendly than any other product out.
Then they will go to their how they do it and followed by what they do. Overall what Simon is trying to
get a crossed here is the goal of a successful organization is to not do business with everyone that needs
what you have, the goal is to do business with people who believe what you believe or in better terms of
people who believe in why you are doing what you do. Therefore, we are more willing to buy all the
products that apple produces because we believe in the same beliefs as them even though many other
companies produce the same products.

The second half of the video goes of the Law of Diffusion of Innovation. Overall, this law breaks
up society into 5 different groups. There are the Innovators, the early adaptors, early majority, late
majority, and laggards. Most people will fall in the early majority and late majority bubble. This idea or
law tells us that if you want mass acceptance of a product you cannot achieve it till you hit the “tipping
point.” This tipping point is located right after the early adaptors and right before the early majority. To
sum this all up the Law of Diffusion of Innovation tells us that if you want to hit the majority of people
with your product you need to have a belief system that corelate with the mass majority.