There is an old story about a fox that would constantly scheme about how he was going to attack a hedgehog. He came up with elaborate plans and even tricks. But, inevitably, at the last second the hedgehog would simply roll into a ball with his quills sharply deterring the fox from further attack. The fox would then retreat and the hedgehog would go about his day.
The fox is scatter brained pursuing many things at once. The hedgehog, on the other hand, knows one big thing. He organizes a complex world, reducing its many challenges into one simple idea. The essence of the hedgehog’s profound insight is simplicity. Nothing else holds any relevance. The Good To Great companies all had what Jim Collins refers to as a Hedgehog Concept. They simplified their world with deep piercing insight into what they could be the best at as well as what they could not be the best at. In order to create a Hedgehog Concept, think about a visual of three overlapping circles:
- What can you be the best in the world at? What can you not be the best in the world at?
- What drives your economic engine. Piercing insight into how to generate sustained cash flow.
- What are you deeply passionate about. Don’t stimulate it, discover what makes you passionate.
Walgreen’s Hedgehog Concept was: the best and most convenient drug stores, steadily increasing profit per visit.
Wells Fargo’s Hedgehog Concept was: running a bank like a business, with a focus on the Western U.S.
I challenge you to think about and create your Hedgehog Concept. The answer to your Hedgehog Concept lies within the middle of your three overlapping circles.