Hedgehog Concept: Its Importance in Business

We have all heard about being a jack of all trades and a master of none. You need to believe deeply in not doing this when it comes to business.

Coined by business guru Jim Collins in his book “Good to Great,” the Hedgehog Concept revolves around the idea that great companies focus on what they can be the best at, what drives their economic engine, and what they are deeply passionate about. 

It will give your business:

  1. Clarity of purpose by pinpointing what you’re truly passionate about.
  2. Strategic focus because it will encourage businesses to focus on their core strengths
  3. Economic sustainability.
  4. Businesses that understand their Hedgehog Concept get through storms with a steadfast focus on what truly matters. 

While markets may evolve, the Hedgehog Concept remains a constant. It allows businesses to adapt without losing sight of their core focus, ensuring relevance and innovation coexist

What is the Hedgehog Concept?

Coined by Jim Collins in his seminal work “Good to Great,” this concept isn’t just a business strategy; it’s a guiding principle that has led many organizations to greatness. At the heart of the Hedgehog Concept lies the simplicity of focusing on the intersection of three crucial factors:


What are you deeply passionate about? It’s not just about fleeting interests but identifying the enduring elements that ignite your enthusiasm and commitment.

Best at

What can you be the best at in the world? This isn’t about being a jack of all trades; it’s about identifying the core competencies where your organization can truly excel.

Economic Driver

What drives your economic engine? Beyond just revenue, this factor is about understanding the fundamental economic principles that sustain your organization’s financial viability.

Where Does the Name Come From?

The name “Hedgehog Concept” is inspired by the famous essay “The Hedgehog and the Fox” by philosopher Isaiah Berlin. In the essay, Berlin divides the world into hedgehogs, who view the world through the lens of a single defining idea, and foxes, who draw on a wide variety of experiences without a singular focus. In the business context, the hedgehog represents organizations that embrace a singular, focused approach, while the foxes represent those that chase multiple strategies without a clear central theme.

How to Find Your Hedgehog Concept?

To identify the first element of your Hedgehog Concept – passion, ask yourself:


  • What activities make you lose track of time?
  • What work do you find most fulfilling and satisfying?

Best at

Determining what your organization can be the best at involves:

  • Assessing your core competencies and strengths.
  • Understanding what your company is uniquely positioned to excel in.

Economic Driver

Identifying the economic driver is about:

  • Understanding the key metrics that drive financial success.
  • Recognizing the economic principles that underpin your business model.

The Hedgehog Concept serves as a powerful framework for businesses seeking sustained success. By aligning passion, expertise, and economic drivers, organizations can chart a course that is not only impactful but also resilient in the face of challenges. It’s a call to simplicity in a world often enamored by complexity.

Implementing the Hedgehog Concept requires introspection, clarity, and a commitment to focus. It’s about saying no to opportunities that don’t align with your core principles and diving deep into areas where you can truly excel.

As organizations embark on the journey to discover their Hedgehog Concept, they are not just adopting a strategy; they are adopting a mindset. A mindset that values simplicity, focus, and the enduring pursuit of excellence. In a world of constant change, the Hedgehog Concept stands as a timeless beacon, guiding businesses towards greatness.