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THE HEDGEHOG CONCEPT (Simplicity within the Three Circles)

Michael Seymour Matthew Anderson. THE HEDGEHOG CONCEPT (Simplicity within the Three Circles). Disciplined Thought – Part 2. Level 5 Leadership First Who…Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators. Hedgehog Concept.

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THE HEDGEHOG CONCEPT (Simplicity within the Three Circles)

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  1. Michael Seymour Matthew Anderson THE HEDGEHOG CONCEPT(Simplicity within the Three Circles)

  2. Disciplined Thought – Part 2 • Level 5 Leadership • First Who…Then What • Confront the Brutal Facts • Hedgehog Concept • Culture of Discipline • Technology Accelerators

  3. Hedgehog Concept • The fox and the hedgehog • Good-to-Great – hedgehog • Comparison – fox • Strategy or Simplicity? • EX: Walgreens vs. Eckerd

  4. The Three Circles

  5. Understanding What You Can (and Cannot) Be the Best At • What can we do better than any other company? • What can we not do better than any other company? • It’s not a goal, but an understanding • EX: Wells Fargo, Abbott vs. Upjohn

  6. Insight Into Your Economic Engine – What Is Your Denominator? • The notion of a single “economic denominator” • Companies have many options when choosing an economic strategy • Goal is choosing denominator that will have Greatest and most Sustainable impact on company economic engine • It can be subtle, even unobvious • The key is to gain understanding and insight into your economic model

  7. Understanding Your Passion • Passion is a key part of the Hedgehog Concept • Discover what ignites your passion • The passion can be focused equally on what the company stands for • Ex: Phillip Morris: “We have a right to smoke, and we will protect that right!”

  8. The Triumph of Understanding Over Bravado • “prehedgehog” and “posthedgehog” • The Council

  9. The Council The Council

  10. Conclusion • The hedgehog concept: • Lies in the heart of these three circles • Is a turning point in the journey from good to great • Keep it simple

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