The value of a hedgehog strategy.

• Author: Motley, L. Biff
• Position: Customer Satisfaction

In his acclaimed book, Good to Great, Jim Collins uses the behavior of tile hedgehog as a metaphor explaining the success of today's great companies. His book is a treatise on the common characteristics of 11 public companies that went from a period of providing investors with mediocre total returns, m companies providing the very best returns--exceeding those of other companies by an average of 700 percent or more over an extended period. These are, in his view, the truly great American companies.

The hedgehog vs. the fox

Among the characteristics that these great companies possess in common is what Collins called the "Hedgehog Concept," which he borrows from an ancient Greek parable: "The Fox knows many things, but the hedgehog knows one big thing."

The fox is a cunning creature, able to devise a myriad of complex strategies for sneak attacks upon the hedgehog. Day in and day out, the fox circles the hedgehog's den, waiting for the perfect moment to pounce. Fast, sleek, beautiful, fleet of foot, and crafty, the fox looks like a sure winner. The hedgehog, on the other hand, is a dowdier creature, looking like a genetic mix-up between a porcupine and a small armadillo. He waddles along, going about his simple day, searching for lunch and taking care of his home.

"Aha, I've got you now!" thinks the fox. He leaps out, bounding across the ground, lightning fast. The little hedgehog, sensing danger, looks up and thinks, "Here we go again. Will he ever learn?" Rolling up into a perfect little ball, the hedgehog becomes a sphere of sharp spikes. The fox sees the defense and calls off the attack. Retreating back to the forest, the fox begins to calculate a new line of attack, but despite the greater cunning of the fox, the hedgehog...