In his famous TED Talk, "How Great Leaders Inspire Action," Simon Sinek introduced the concept of the Golden Circle to explain why some leaders and organizations achieve great things that seem to defy all odds. According to Sinek, the world’s most influential leaders don’t simply focus on what they do or how they do it—they start with why. They are driven by a bold vision and a purpose that connects deeply with their community and motivates action.
This principle resonates strongly in the world of social entrepreneurship, where impact is paramount. Great social entrepreneurs, like great leaders, also start with why. They have a powerful vision for the change they wish to see in the world and structure their actions around achieving that vision.
By integrating Simon Sinek’s Golden Circle, the SEAD™ Model offers a simple framework to help modern social entrepreneurs craft their Theory of Change, and reverse engineer your journey from bold vision, to measureable outcomes, to practical action.
The Golden Circle for Crafting Your Theory of Change
1. Start with Why: Impact | The Vision
Why do you exist? At the core of your Theory of Change is your bold vision—the long-term impact you hope to achieve. This vision should reflect the broader, systemic change you want to create and can be tied to global goals like the UN Sustainable Development Goals (SDGs).
Your why is the foundation of everything you do. It’s the reason your organization was founded and the ultimate difference you want to make in the world. As a social entrepreneur, your “why” must be focused on solving a pressing social or environmental problem.
Examples:
Grameen Bank exists to end poverty by providing financial access to the poorest people. Their vision aligns with SDG 1: No Poverty and SDG 10: Reduced Inequalities.
Warby Parker envisions a world where everyone has access to affordable eyeglasses, aligning with SDG 3: Good Health and Well-Being and SDG 10: Reduced Inequalities.
Key Question: What is the lasting change your organization aims to create in the world?
2. Define How: Outcomes | The Mission
How will your business activities contribute to your vision? The next step is defining how your organization will move toward your bold vision. This involves identifying the specific outcomes your activities will generate. These outcomes are the measurable changes that will occur because of your work.
Your how describes the change your product, service, or intervention will create. These outcomes must be aligned with your vision and provide evidence of progress toward the long-term change you seek to achieve.
Example:
Dave’s Killer Bread provides employment opportunities for formerly incarcerated individuals. The outcome is a reduction in recidivism, which advances SDG 8: Decent Work and Economic Growth and SDG 16: Peace, Justice, and Strong Institutions.
Grameen Bank provides microloans to underserved populations. The outcome is breaking the cycle of poverty by bypassing predatory lenders, advancing SDG 1: No Poverty.
Key Question: What tangible and measurable outcomes will your activities produce to advance your vision?
3. Clarify What: Activities | The Model
What will you do to deliver on your outcomes? Finally, your what involves defining the activities, products, or services that your organization provides to achieve the desired outcomes. These are the specific actions your organization will take to deliver the change you envision.
Your what should be practical, actionable, and clearly aligned with the outcomes and vision. This is where your organizational model comes to life—whether it’s a product you sell, a service you provide, or an opportunity you create.
Example:
Warby Parker sells affordable eyeglasses directly to consumers, disrupting industry monopolies and making eyewear more accessible to underserved markets. This action is directly aligned with their mission to democratize access to vision care.
Grameen Bank provides microloans to individuals who otherwise wouldn’t qualify for traditional banking services, empowering them to start businesses and improve their economic situations.
Key Question: What products, services, or opportunities will you deliver to achieve your outcomes?
Example in Action: Dave's Killer Bread
Why: A vision of a world without unnecessary incarceration (SDG 16: Peace, Justice, and Strong Institutions).
How: By providing employment opportunities to formerly incarcerated individuals, reducing recidivism (SDG 8: Decent Work and Economic Growth).
What: They bake and sell organic bread, employing individuals with a criminal record and providing them with a second chance at stable employment.
Conclusion
Using Simon Sinek’s Golden Circle as a guide, your Theory of Change starts with a clear why—a bold vision for the change you want to create. It then defines how your organization will contribute to that vision through measurable outcomes. Finally, it lays out what specific activities (product, service, or opportunity) you will implement to achieve these outcomes.
In summary, a Theory of Change is more than a strategy—it’s a comprehensive framework for guiding your organization’s journey from intention to impact. By keeping your why at the heart of your work and ensuring that your how and what are aligned with your mission, your social enterprise can effectively create the change you seek in the world.
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