c






c

 









Ê Ê

©



 


×××

 
     
    
  


×××  
 





     

 
 


  

×××     x
   
Ô 




×××  

 
      ×××  

   
 ××× a
  



 

  
?


 


 


×××  

 

 
  



     

  

   
  ××× 




  

 Y
a

áÊ £

- A Hedgehog concept is an O

  of what you 
be the best at, as
opposed to a goal, a strategy, an intention, or a plan to be the best. It is about personal potential
of what you can and can not be the best at. (ie: I will  be the best guitar player or singer.)
áÊ Diquid Development is not on a path to be the best developer of   , whereas we may be
able to achieve the best  
developers
áÊ ]  
 ]   che "best in the world" understanding is a much more
severe standard than a core competence. You might have a competence but not necessarily have
the capacity to be truly the best in the world at that competence. Conversely, there may be
activities at which you could become the best in the world, but at which you have no current
competence.
áÊ 

 - co get insight into the drivers of your economic engine, search for the one
denominator (profit per x or, in the social sector, cash flow per x) that has the single greatest
impact.
áÊ 6
 
   - Good-to-great companies set their goals and strategies based
on understanding; comparison companies set their goals and strategies based on bravado.
áÊ ©
 -Getting the Hedgehog Concept is an iterative process. che Council can be a
useful device.
    

áÊ che good-to-great companies are more like hedgehogs-- simple, dowdy creatures that know "one
big thing" and stick to it. che comparison companies are more like foxes -- crafty, cunning
creatures that know many things yet lack consistency.
áÊ It took four years on average for the good-to-great companies to get a Hedgehog Concept.
áÊ ëtrategy per se did not separate the good-to-great companies from the comparison companies.
Both sets had strategies, and there is no evidence that the good-to-great companies spent more
time on strategic planning than the comparison companies.
áÊ You absolutely do not need to be in a great industry to produce sustained great results. No
matter how bad the industry, every good-to-great company figured out how to produce truly
superior economic returns.

Ê Ê Ê Ê Ê
chis chapter begins with a quaint story about the fox vs. the hedgehog. che fox, always quickly
bounding forward to attack the hedgehog, is
   met with the hedgehog¶s simple defense of
rolling into a ball of spikes. Hedgehogs are not exciting, just very   .

Jim Collins compares the Good to Great companies to that little hedgehog ± always focused on their
consistent method of success. Out of this little story, Jim Collins developed what he calls che
Hedgehog Concept.

During interviews with the executives of these extraordinary companies, they consistently found them
to be deliberate in their simple, consistent policy of doing great business. No surprises, no magic, no
rocket science. Just simple consistent excellence in following their researched methodologies ±
methodologies that work.

Here is Jim Collins¶ explanation of the simplicity of che Hedgehog Concept and how it relates to three
focused dimensions that should be considered when doing business (with excerpts from the book):

1.   
 
  (and what you   be the best in the world at).
You may have a core competence in something, but you may not be the best in the world at it. Do
only what you can be the best in the world at.

A Hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the
best, a plan to be the best. It is an O

  of what you can be the best at. che distinction is
absolutely crucial.

2. 


   . che good to great companies attained piercing insight into
what generates robust cash flow and profitability. chese companies discovered their single
denominator ± „
„
 ± that had the greatest impact on their economics.

che denominator can be quite subtle, sometimes even unobvious. che key is to use the question of
the denominator to gain understanding and insight into your economic model.

3. 
 

. che good to great companies focused only on those
activities that ignited their passions.

You can¶t manufacture passion or ³motivate´ people to feel passionate. You can only
  what
ignites your passion and the passions of those around you.

chese three core concepts coupled with a fanatical consistency (the Hedgehog Concept) drove the
Good to Great companies to consistently create great results without circus fanfare.

But finding your Hedgehog Concept isn¶t easy (on average, it took 4 years for the great companies to
clarify their Hedgehog Concept). chus, Collins suggests implementing a team of counselors to help
you clarify your passionate mission. che Council, as Collins calls them, helps the owners/executives
debate and struggle through the principles that make a great company« helping to discover what they
are passionate about, what drives their economic engine and what they can be the best in the world
at.

My Council is my wife, my business coach, and my staff. chey keep me on track to make sure our
business is all about what we are passionate about, and what we love.