Jim Collins in his book Good to Great mentions the following as an important strategy adopted by leaders in great companies-
Taking the wrong people off the bus and on boarding the right people on the bus for sustainable success..
The same has been echoed by Seth Godin in this following quote of his..
“If you’ve got people on your bus who are headed somewhere you have no intention of going, today might be a good day for them to get off the bus.”
Great organizations who adhere to the principles in the Hedgehog Concept undertake the process of budgeting with the following motive:
Adopted from Jim Collins’s book Good to Great
Great companies know how to operate at the intersection of the three circles that are part of the Hedgehog Concept. This is what educates great companies to execute once in a lifetime opportunities.
These three circles represent:
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
Hedgehog Concept is the intersection point of the three circles involving the following principles:
The single most important form of discipline for sustained results is FANATICAL ADHERENCE to the Hedgehog Concept and willingness to avoid enticement from opportunities that fall outside the three circles , mentioned above.
Adopted from Jim Collins’s book Good to Great
A Culture of Discipline is about:
Getting Disciplined people who engage in Disciplined thought and who then take the Disciplined Action..
Adopted from Jim Collins’s book Good to Great
A culture of discipline involves this duality.
On one hand it requires people who adhere to a consistent system , on the other hand it gives people the freedom and responsibility within the framework of the system..
Adopted from Jim Collins’s book Good to Great
Simon Sinek in his book Start With Why mentions about a WHY which is the reason why a company exists.
Plain and simply the vision statement of an organization that brings the WHY alive..
Jim Collins in his book Good To Great mentions about the three circles and their intersection point which every great organization aims to reach to leave behind a legacy.
The three points that represent the three circles are:
The intersection point is where each great organization focuses on to frame the WHY of the organization in order to walk the talk..
Bureaucratic cultures arise to compensate for incompetence and lack of discipline which arise from having the wrong people on the bus in the first place.
If the wrong people are taken off the bus and right people are put on the bus , there is no need of worrying about bureaucracy.
Adopted from Jim Collins’s book Good to Great
The three essential components used by any great organization to build a culture of discipline while at the same time encouraging innovation and creativity are:
Adopted from Jim Collins’s book Good to Great
Inspired from Jim Collins’s book Good To Great, the following insight reveal how great companies adhere to the Hedgehog concept & build a culture of discipline .
“Build a culture full of people who take disciplined action within the three circles fanatically consistent with the Hedgehog concept..”
This would mean the following: