1. Find your Hedgehog concept. — Good to Great
Imagine a fox hunting a hedgehog. The fox is crafty and invents a battery of complex tactics to get at the smaller creature, yet despite all of its cunning, the fox never wins. The hedgehog has a simple, foolproof parry to any attack: it curls up and becomes an unbreachable spiked ball.
According to Collins, good-to-great companies find their own Hedgehog concept—something simple, clear, and fail-proof—by asking themselves three key questions:
What can we be the best in the world at?
What can we be passionate about?
What is the key economic indicator we should concentrate on?
Collins found that after an average of 4 years’ iteration and debate, good-to-great companies discovered their own Hedgehog concept at the intersection of these questions. After that point, every decision in the company was made in line with it, and success followed.
Take the example of drugstore chain, Walgreens. The Walgreens Hedgehog concept was to be the best, most convenient drugstore with a high customer profit per visit. By pursuing it relentlessly, Walgreens outperformed the general stock market by a factor of 7. By contrast, their competitor, Eckerd Pharmacy, lacked a simple Hedgehog concept and grew sporadically in several misguided directions, eventually ceasing to exist as an independent company.
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