Strategy: The Hedgehog Concept

“From Good to Great” is known as one of the top management and leadership books of all time. It was published in 2001 and has sold 4 million copies so far). Written by James C. Collins (Stanford University), it develops the strategic Hedgehog Concept, which I think can be very useful to anyone interested in improving business performance and leadership focus. 

The Hedgehog Concept is based on an ancient Greek parable that states, “The fox knows many things, but the hedgehog knows one big thing.”

The fox uses many strategies to try to catch the hedgehog. It sneaks, pounces, races, and plays dead. And yet, every time, it walks away defeated, its tender nose pricked by spines. The fox never learns that the hedgehog knows how to do one big thing perfectly: defend itself.

The general concept (more than 1,000 listed companies were part of the study) proved that companies led through a Hedgehog concept were significantly more successful than others and lasted longer. 

The three circles within the Hedgehog concept:

1. What your people are truly passionate about.
2. What the organization does better than anyone else.
3. Understanding your economic engine.

I think the beauty of the Hedgehog concept is the fact that it’s easy to understand. The fact that only a few companies are able to achieve excellence through the Hedgehog concept proves how hard it is to get the right focus. This focus helps to identify the key element where you can be the best, drive your passion and become your economic engine. 

I also believe that the Hedgehog concept can be applied at a personal and individual level in order to feel highly successful. Do what you like, what you are the best at and what can sustain you economically. 

Have you discovered your own Hedgehog concept yet?

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