The hedgehog concept is an idea from the Jim Collins book "Good to Great." It refers to how the top managers in a company take care of, and lead, the business. The hedgehog concept states that there are two ways that a top-level leader can direct the company: as a hedgehog or as a fox.

The idea for the hedgehog concept is drawn from the fable about the tortoise and the hare. In the story, the tortoise and the hare decide to have a race. It looks like the hare will win, because he is so much faster, but because he gets distracted, and decides to rest for a while, the tortoise ends up winning. The fable is meant to encourage readers to stay committed and take their time if they want to come out ahead, thus the saying "slow and steady wins the race."

The hedgehog concept is very similar. In this version, it is the fox that is in a hurry to get ahead. He rushes around, from one great idea to the next. He is always interested in the next big thing, something that might make his company a lot of money. The fox has something to prove, and he easily disregards the consequences; he is easily distracted and is constantly working out new schemes.

The hedgehog, on the other hand, moves in a slower and more deliberate way. Any decisions he makes are the result of careful consideration about what is best for the company. If a new product or idea will not blend well with what the company is already doing, it is discarded. Although he is open to new ideas, and will tweak his plan, and the company, here or there, there are no huge unnecessary changes. He takes everything one step at a time, and concentrates on what he does best.

With his constant energy, and willingness to try anything that might improve the company, many would think that the fox would come out ahead. He sets himself and the company up for success by being willing to try new things. This is not the case, as it turns out. The fox has no real long-term goals, and does not have a clear vision of the direction he wants his company to head in.

With his slow and steady course, the hedgehog's business will come out ahead. He had a set goal that he was reaching for, and a plan for how to get it accomplished. He has become an expert at what he does, and knows how to let others be experts at what they do. The hedgehog is okay with hiring professionals to cover the tasks that he does not have the time or the experience for. He knows what is best for his company, and he tries his best, through being choosy about new methods, to make improvements.

Consistency is key in a business. Although it is okay to change directions if the current plan is not working, this shouldn't be a common occurrence. The hedgehog concept shows many benefits for leaders who plan first, and then act. Consider how any changes, no matter how small, might affect the company five or ten years from now; don't only concentrate on the immediate benefits. Companies that have leaders following the hedgehog concept will have a better chance of becoming great companies in the long run.