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Marc

Business

Strategy: The Hedgehog Concept

Reading 6 min Article Advanced


Vocabulary - 2 noun, 2 adjective, 5 verb


Exercise

Tap all the highlighted words in the text below to see their definition.

“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  Concept, which I think can be very useful to anyone interested in improving business performance and leadership focus. 

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

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

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

Organizations will more likely succeed if they can identify the one thing that they do best – their “ Concept”

James C. Collins

The three circles within the concept:

  1. What your people are truly passionate about.
  2. What the organization does better than anyone else.
  3. Understanding your economic engine.
The Black spot in the middle is where you will find your concept

I think the beauty of the concept is the fact that it’s easy to understand. The fact that only a few companies are able to achieve excellence through the 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 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 you economically. 

Have you discovered your own concept yet?


Go back to unit 4 to complete all 6 microlessons.