There is more than one way to apply thermal compound. This is just one of several. On this particular system, I found that this method worked best after using several other methods.
Some alternative (and equally valid) ways to apply compound:
1. Place a small dab in the middle, apply pressure with the heatsink, and allow it to spread evenly. 2. Follow the procedure in this video, but instead use a plastic bag over your finger to spread the compound 3. Place a line of compound across the CPU (ensuring that you hit both dies if you have two), and then spread it with heatsink 4. Follow the procedure in this video (which works fine!)