Even with multiple options, job seekers tend to flock towards certain companies that are known to have great work culture and employee benefits. The employee engagement and loyalty at these companies are always high, and they have no trouble finding and retaining dedicated employees who genuinely enjoy contributing to the company’s larger cause.
So, how do some companies inspire unwavering loyalty while others struggle to differentiate themselves? The answer lies in understanding and articulating your company’s purpose first and then creating products and services that fulfill this purpose.
This approach of starting with the ‘why’ and then moving on to the ‘how’ and ‘what’ is what leadership expert Simon Sinek refers to as the Golden Circle framework.
It calls to employees’ desire to feel connected to the organization’s purpose and the overarching impact they’re making. When the three circles of this framework—Why, How, and What—are implemented across the organization, teams are more inspired and engaged with their work. Globally, only 23% of employees feel engaged at work, which is concerning as disengaged employees can cost organizations close to $8.8 trillion.
Based on this framework, HR professionals and team leaders have the unique opportunity to guide teams and build an environment where people show up motivated, focused, and proud of their contributions.
What is the Golden Circle theory?
The Golden Circle is a model introduced by Simon Sinek to explain how leaders can inspire cooperation, trust, and meaningful change within their teams. It consists of three concentric circles—‘Why,’ ‘How,’ and ‘What.’
- Why – The core purpose: Why does your organization exist beyond making a profit?
- How – The unique methods and values that differentiate how your teams operate.
- What – The tangible outputs: your products, services, and day-to-day work your teams deliver.
What is the reason for your organization’s existence? How does it bring its values to life? What is the result of the work that various teams do, and what are the goals they achieve?
Just as customers stay loyal to brands that reflect their beliefs, employees stay engaged with companies where they understand the purpose behind the work they do.
Let’s understand this in more detail.
Why: Defining your organization’s purpose
The innermost circle, ‘Why,’ is the foundation of the Golden Circle. It answers the fundamental question: Why does your organization exist? Beyond making a profit, what drives your mission?
To uncover your organization’s ‘Why,’ ask:
- What impact do we want to create?
- What beliefs drive our team?
- Why should people care about our brand?
Organizations that struggle to define their ‘Why’ often face challenges with leadership alignment and employee engagement. If a company only exists to make profits without having a deeper purpose that drives the business, it ends up becoming just another option among a sea of other employers. But when the company’s products are created to solve problems that no one else is talking about, the company becomes a deeply rooted part of the employees’ lives.
For example, Patagonia is one of the world’s best known brands for sustainable outdoor gear and equipment. Their employees all believe in their efforts towards sustainability and ethical manufacturing. They know that every action they take as part of the team contributes to a larger impact on the world.
In fact, a recent study suggests that employee engagement boosts productivity by up to 18%, and a deeper purpose is the primary driving factor behind employee engagement. The same study also mentions that “People want purpose and meaning from their work. They want to be known for what they’re good at.”
Therefore, these questions are also relevant for performance management as they can help you find your ‘why’ and align your employee’s KPIs to that. Doing this will naturally boost employee engagement and retention, while making your company a sought-after place of employment.
If this seems like a daunting task, know that you have help. You can use UpRaise’s performance management tool to connect employees’ KPIs to the company’s goals. This can help them see the difference they’re making and improve overall employee engagement and satisfaction.
How: Translating purpose into action
The middle circle, ‘How,’ reflects the values, processes, and people-first practices that bring your company’s purpose to life. With a well-defined plan, you can give your team a sense of direction. Your ‘How’ becomes the differentiator—it’s what sets your workplace apart in a sea of job descriptions and performance metrics.
So, if you value collaboration, adopting peer recognition programs, open communication channels, and regular check-ins that encourage feedback work for your team. A company that is centered around growth focuses on learning and development plans, cross-functional exposure, and transparent goal-setting.
Your ‘How’ should feel clear and actionable for your team. When it’s grounded in your culture, it flows through your onboarding, 1:1s, review cycles, and even how you celebrate wins.
Examples:
- A product company with a ‘How’ rooted in continuous learning might integrate learning goals into performance reviews and offer microlearning sessions through Upraise.
- An HR team that values trust and ownership may run self-assessment-based reviews and transparent OKRs, giving employees a voice in their own growth journeys.
When your ‘How’ is made actionable, your employees are more likely to follow through.
What: Delivering on your mission
The outermost circle, ‘What,’ represents the visible side of your organization’s purpose, what your teams create, deliver, and contribute to every day. In the context of HR, this includes your performance programs, feedback practices, engagement initiatives, and growth frameworks.
Think about performance management, for instance. A company solely focusing on ‘What’ may introduce an OKR framework. However, a company that follows the Golden Circle framework will clearly define its ‘why’ (to empower employees with meaningful goals) and ‘how’ (by fostering a culture of continuous feedback and alignment).
Without this, the system could end up becoming just another rigid process rather than a catalyst for employee engagement and performance. This deeper messaging transforms the job from a mere means to a paycheck into something that holds true value for the employee.
To evaluate your ‘What,’ ask:
- Does our performance strategy reflect our core beliefs?
- How does our goal-setting framework support our larger vision?
- Are we fostering engagement or just enforcing metrics?
When all three circles align, employees don’t just work for you. They believe in you. They work towards your mission, driving meaningful and sustainable success.
Examples of the Golden Circle in Action
While organizations do not explicitly talk about formally adopting Simon Sinek’s Golden Circle into their operations, some of their HR policies align with the framework. Let’s take a look at some examples:
1. Google
- Why: To organize and make the world’s information easily accessible
- How: Create a culture of innovation, transparency, and continuous learning.
- What: Implement performance management practices, including 360-degree feedback and Objectives and Key Results (OKRs).
People Operations at Google strongly emphasizes merit-based rewards and employee development. They have adopted a performance management based on 360-degree feedback, where employees and managers collaboratively select peers to provide input on strengths and areas for improvement. With this comprehensive feedback system, Google supports a well-rounded understanding of performance.
2. Netflix
- Why: To bring global entertainment to their customers’ home
- How: Offer their team complete freedom and responsibility
- What: Encourage a high-trust culture with open feedback loops and autonomy.
World’s biggest entertainment platform, Netflix creates an environment for its talented workforce to hone in their creativity, improving personal and organizational excellence.
Just like Google, Netflix also encourages open communication and peer feedback, establishing structured mechanisms for employees to provide constructive input to their colleagues. This approach promotes transparency and creates opportunities for continuous improvement. No surprise that as of 2025, 90% of employees reported a positive onboarding experience.
These examples show how aligning HR practices with an organization’s core purpose (Why), methods (How), and offerings (What) can create a cohesive and motivating work environment.
Benefits of Using the Golden Circle Model
Implementing the Golden Circle framework offers several strategic advantages.
1. Greater employee loyalty
When organizations communicate their “Why,” they connect with employees and other stakeholders on an emotional level, this connection brings trust and long-term loyalty, as employees feel aligned with the company’s purpose.
For example, Patagonia’s ethos of sustainable and ethical manufacturing is clearly communicated. This resonates deeply with their employees and since they can see the impact of their efforts, they are more likely to stay with the company for a long time.
For HR leaders, this connection can translate into lower turnover and a more invested workforce.
2. Improved employee engagement
Employees who understand and believe in the organization’s purpose are more likely to be motivated and committed. A clear ’Why’ provides them with a sense of meaning and direction in their work.
For example, Google’s core mission is to gather, organize, and provide information to everyone. This is also reflected in its work policies that focus on equality and inclusion.
When performance goals are anchored in purpose, employees are more committed.
3. Differentiation in the Market
In saturated markets, a well-defined “Why” can set your organization apart from competitors.
For instance, Salesforce’s commitment to equality and social impact draws purpose-driven professionals who want to grow while making a difference.
It shifts the focus from just your products or services to the underlying purpose that drives you, making the brand more relatable and distinctive to your employees.
4. Consistent Decision-Making
A clear ‘Why’ acts as your guiding principle for making critical business decisions. It ensures that your strategies and actions are aligned with your core purpose, leading to consistency and integrity in all business operations.
For example, the Real Beauty campaign that was started by Dove over 20 years ago is still going strong, even in the face of generative AI that is disrupting beauty standards.
To align your company’s goals with your ‘why,’ you can also use tools like UpRaise for Employee Success. It can help you improve employee engagement across your organization.
Implement the Golden Circle Framework in Your Business
By now, you know how important it is to implement the Golden Circle by Simon Sinek in your organization and the host of benefits that it brings. If you’re looking to implement the Golden Circle framework in your organization, start with these steps:
- Discover Your ‘Why’: Engage your leadership team and employees in defining the deeper purpose behind your company’s existence.
- Define Your ‘How’: Identify the unique strategies and approaches that differentiate your brand and bring your ‘Why’ to life.
- Clarify Your ‘What’: Ensure your products and services authentically align with your mission and values.
Build a purpose-driven culture
The Golden Circle framework by Simon Sinek is not a marketing strategy to make your company look like a great place to work. Rather it’s a mindset shift at the leadership level to actually make it happen. The Golden Circle gives you a practical framework to inspire loyalty, engagement, and long-term employee success by helping you clearly define the core purpose driving your business. Starting with the ‘why’ and then aligning it with the right methods (the ‘how’) and outcomes (the ‘what’) can help you tie your employees’ KPIs and targets to the larger goals they are contributing to.
Companies such as Google, Netflix, Dove, and Patagonia have all proven that purposeful alignment drives meaningful employee connections, higher productivity, and deeper customer relationships.
For HR leaders, integrating this purpose-first approach into performance management is essential for building teams that are motivated and committed. Using tools like UpRaise can help you translate your core values into actionable goals, fostering continuous feedback and stronger alignment across all levels.Want to connect your team’s work to a bigger purpose? Try UpRaise for Employee Success and see the difference a purpose-driven approach can make.
FAQs
1. How can organizations identify their “Why”?
To discover their “Why,” organizations should reflect on their core beliefs, values, and the fundamental purpose that drives their existence beyond just making profits. This involves introspection and discussions with stakeholders to articulate a clear and inspiring mission statement that resonates with both employees and customers.
2. Can the Golden Circle Framework be applied to personal development?
Yes, individuals can use the Golden Circle Framework for personal growth by identifying their own “Why”—their personal purpose or passion. Understanding this can guide career choices, personal goals, and how one presents oneself, leading to a more fulfilling and purpose-driven life.
3. Are there real-world examples of companies successfully implementing the Golden Circle Framework?
Apple Inc. is a notable example. Their “Why” is to challenge the status quo and think differently. This belief drives their “How”—innovative design and user-friendly interfaces—and their “What”—products like the iPhone and MacBook. This alignment has contributed to a strong brand and loyal customer base.
4. How does the Golden Circle Framework benefit businesses?
The framework helps businesses build stronger brands, improve leadership, and connect emotionally with customers. By starting with “Why”, companies can craft compelling narratives that foster customer loyalty, employee motivation, and long-term success.
