“Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.” – Jim Collins
The path to greatness is often paved with strategic decisions and disciplined execution. One such strategic decision that can catapult your business from good to great is identifying your Hedgehog Concept.
The Hedgehog Concept is derived from an ancient Greek parable about a hedgehog and a fox. The fox knows many things, but the hedgehog knows one big thing. In business, this translates to understanding what your company can be the best at, what drives your economic engine, and what you are deeply passionate about.
Under the leadership of CEO Charles R. Walgreen III, Walgreens faced the challenge of redefining its business model. Instead of trying to compete in multiple areas like many of its competitors, Walgreens focused on one core strength: convenience in pharmaceuticals and health-related products. This strategic focus transformed Walgreens into the largest pharmacy chain in the United States, a prime example of the Hedgehog Concept in action.
So, how can you apply this to your own business?
- Find Your Core Strength: Identify the one thing your company can be the best at. This isn’t about what you are currently best at, but what you could be. It requires an honest assessment of your unique capabilities and market position.
- Understand Your Economic Engine: Determine the key economic driver of your business. This could be a particular product, a customer segment, or a unique service model. Focus on what generates the most revenue and drives your profitability.
- Discover Your Passion: Reflect on what your deeply passionate about. Passion fuels perseverance, and when aligned with your core strength and economic engine, it can propel your business to new heights.
Achieving greatness is not a matter of luck, but of strategic focus and disciplined action. By finding and embracing your Hedgehog Concept, you can guide your company towards sustained success and industry leadership.
If you want to dive deeper into the principles that can elevate your business from good to great, be sure to check out our book of the week: “Good to Great” by Jim Collins.