In his book Good to Great: Why Some Companies Make the Leap… and Others Don’t, Jim Collins tells us what the difference is between a company that has a good success rate compared to a company that goes off the chart with a great success rate spanning decades with market shares reaching multiple times the normal value. A key factor that he discusses in his book is the Hedgehog Concept. Use this 3 part concept for your business by asking “what can you be the best in the world at, what makes economic sense, and what are you passionate about?” Now, while thinking about these questions, start by getting the right players on your team and developing Level 5 leaders. Have the right people that are self-disciplined and passionate. We often hire people because of certifications, experience, and their track record, but these can be learned, while passion and self-discipline are inherent traits. When it comes to leadership, communicate your ideas, share your vision, and open your mind to hear what others have to say. Through this communication, take calculated steps to develop your business, thinking about the Hedgehog Concept.
This might seem easy, but when thinking about how great companies begin, there is no single “ah ha” moment. The companies work toward their goals over time. In this book, one strong characteristic of the great companies relates to the way they embrace change. What sense is there hiding your head in the sand, boohooing in the boardroom, or randomly flip flopping on ideas with each change. When developing your business, accept change as that one thing that is constant and then take the time to think through how you can position your business to work effectively and efficiently in an ever changing environment. Change can be new regulations, innovative technology, economic conditions, or just about anything. Instead of worrying about the change that is bound to occur, think through how you can continue to change with the changing environment in a way that answers to your Hedgehog Concept. Expect this to take time. Time to plan and evaluate. Time to think and plan some more. And then more evaluating. This does not have to be immediate, and in all cases that are referred to with the great companies, they don’t act immediately.
How much time do you spend in your business planning, reviewing and evaluating? What can you do differently in communication, how can you get the right people in the right places, and what is the company culture that you are developing?
I highly recommend the book Good to Great: Why Some Companies Make the Leap… and Others Don’t as one of the best books for the business professional. While you are going through each chapter, open up your mind to compare how your company is doing things and think about how you can make many small, incremental changes to improve your success.
It is common for businesses to regularly evaluate their business plan. At 4QR Business Solutions, we provide workshops that help you in creating or updating a business plan. We can sit down in a more personalized setting with you and your team to evaluate your situation or provide training. Contact us today for more information.