The Hedgehog Principle – Good to Great Revisited

How Great Leaders and Companies Achieve Success with Focus

Great leaders don’t just motivate and inspire; they bring focus and provide clear direction. The same principle applies to great companies—they know their purpose, focus on their core business, and avoid wasting resources on distractions.

The Secret to Success: Finding Your “One Thing”

In the iconic movie City Slickers, Jack Palance tells Billy Crystal that the secret to happiness is “one thing.” The catch? Each of us must discover that “one thing” for ourselves. For businesses, the lesson is the same. Without clarity on their purpose and core business, achieving great success is unlikely.

On the flip side, investing time and effort to define your focus can yield long-term rewards. According to leadership expert Jim Collins, businesses and teams should evaluate three critical areas to uncover their “one thing”:

1. What Can We Be the Best At?

Identify what your company or team can excel at. Rather than spreading yourself too thin, focus on your strengths and specialize in what sets you apart.

2. What Are We Passionate About?

Passion is the driving force behind any successful team. A clear, shared purpose unites people. For example, our company lives by the mantra: changing lives one job at a time. That singular focus inspires and motivates us.

3. How Do We Make Money?

Understanding your financial model is crucial. What key numbers or metrics indicate success? Instead of drowning in meaningless reports, pinpoint the metrics that matter most and concentrate on improving them.

The Power of Focus: Why Saying “No” Matters

Many leaders and teams struggle to stay focused. They attempt to do too much, chasing every opportunity and becoming fragmented. However, true success requires the courage to specialize and say “no” to distractions.

A strong brand thrives on a clear, single focus. For example, imagine if our company started saying, “We also sell hamburgers.” It would dilute our mission, confuse our team, and weaken our brand. Staying true to your core purpose is essential for long-term success.

The Hedgehog Principle: Your Formula for Success

By combining these three elements—being the best, passion, and vital economics—you can achieve focus and unlock extraordinary success. This concept, known as the Hedgehog Principle, helps businesses and teams align their efforts with what truly matters.

Take the First Step: Discover Your “One Thing”

It’s time to reflect and prioritize. Answer these questions for yourself and your team:

• What can we be the best at?
• What are we passionate about?
• How do we make money?

Dare to focus. Dare to specialize. Dare to pursue your “one thing.”