Jim Collins discovered through his comprehensive research that many organizations struggle to make the large leap from “Good” to “Great”. Collins observed that great companies base their strategic decisions on a simple concept crystallized by asking three questions of the enterprise. Collins calls this the Hedgehog Concept.
Three Questions:
1. What can you be the best in the world at?
(This may not be something you’re currently engaged in. Also, consider what you can't be the best in the world at.)
2. What are you passionate about?
(Great companies have discovered what their passionate about.)
3. What is your economic driver?
(Discover what single measure - profit per x – that effectively generates sustained cash flow and profitability.)
The intersection of the three circles is then translated into the simple concept that guides your strategic activities.
Reference:
Collins, Jim. 2001. Good to Great. Harper Business.
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