Great companies know how to operate at the intersection of the three circles that are part of the Hedgehog Concept..
These three circles represent:
- What is the COMPANY deeply PASSIONATE about?
- What can the COMPANY be the BEST in the WORLD at?
- Is the company’s strategy ECONOMICALLY VIABLE?
Once in a lifetime opportunities are evaluated by such companies within the bounds of this framework.Only if the opportunity falls in the intersection point of the three circles , then only great companies decide to go ahead with the opportunity..
Great companies stay away from the enticement of all such opportunities if they fall outside the bounds of the Hedgehog Concept..
Adopted from Jim Collins’s book Good to Great