If you were to choose between a fox and a hedgehog, which one would you go for?
Well, many people would choose the fox. Of course, foxes are beautiful, sleek, and cunning, but hedgehogs, the small prickly creatures, are quite the opposite: slow, quiet, and plodding. The scenario ends with the hedgehog thwarting the fox. Apparently, the hedgehog is able to do only one thing, and it does it perfectly – it defends itself by rolling into a ball and raise its spines.
What is the Hedgehog Concept?
The name ‘Hedgehog concept’ comes from a Greek fable that said: “Foxes know many things, but the hedgehog knows one big thing”. We are here to focus on the way it relates to Jim Collins’ work. In his book “Good to Great”, Collins argued that organizations are more likely to succeed if they are successful in identifying one thing that they are BEST at – that is their ‘Hedgehog concept’. Once the organization has identified its Hedgehog Concept, its leaders should commit all their energy to pursue it.
How to find your Hedgehog Concept?
You can find your firm’s Hedgehog concept by using these three simple yet effective assessments.
- Understand what you and your people are genuinely passionate about.
- Identify what is it that your firm is best at doing compared to others
- Determine whether it can earn you money
The answers to all the above three assessments will overlap at one sweet spot. That exactly is your “Hedgehog concept”.
Realize your Passion:
- Find out that one thing that everyone, including you, is passionate about within your organization.
- Does the mission of the organization inspire them?
- What is it that motivates them?
- What is it that you look for when hiring a new member of your firm?
- Once you have the answer to all these questions, look at whether your organization’s mission and vision align with it. If not, how can you change it?
Find out what are you BEST at:
- Look for that one thing that your firm can be best at and beat everyone else around you. If that one thing cannot make you the Best in the world, then probably it’s not ‘the Thing’.
- Tools such as Core Competency Analysis, USP Analysis, and SWOT Analysis can prove to be useful to answer this question.
Discover your Economic Engine:
- Understand what your organization earns money with. Does it align with your answer to the previous question? Learn how to generate a sustained cash flow and profit.
Find out the Overlap:
Once you have answers to all the questions above, try to find the overlap. That central point is your Hedgehog concept. This should be the vision that drives your organization. The Hedgehog Concept isn’t apparent right away. Be least worried about it, for it might take some detailed assessment and could take as good as four years to get your answer.
Remember one thing: The Hedgehog concept is not a Strategy or Goal; instead, it is an insight to build your guiding principle for your strategic choices.