Foxes, hedgehogs and Greek philosophers

Gene Mage

“The fox knows many things, but the hedgehog knows one big thing.” (Archilochus, Greek Poet)

Some weeks I feel as though I am challenged to keep my feet carefully balanced on two ice-flows. Beneath one foot I find the seemingly limitless expanse of best-practice examples, beneath my other the narrow foothold of practicality. Leaders are constantly bridging the gap between the theoretical and the practical, the general and the specific, the academic and the real-world.

To that end, this column has been comparing and contrasting two popular and compelling models of business excellence, the seven factors articulated in Jim Collins’ book Good to Great, and the seven criteria outlined in the Baldrige National Quality Award. Thus far, we have explored Collins’ first three factors, “Level 5 leadership”, “Who before what”, and “Face the brutal facts.” (If you would like a reprint of the first two installments, send me an e-mail at gmage@makingitwork.com).

Did the Greek philosophers study garden critters?

Today, we examine Collins’ intriguing tribute to that ubiquitous garden rodent, the hedgehog. As the ancient sage Archilochus noted two millennia ago, the natural world often illustrates timeless human polarities. In this instance, Collins pits the single-minded focus of the hedgehog against the cunning but somewhat scattered approach of the fox.

Collins’ hedgehog model for corporate strategy advocates that every organization first figure out what it can be the best at, make money at, and be passionate about. Then, having answered those questions, formulate a core strategy based on the answers, and go after that mission with tenacity. Few would argue that playing to one’s strong suit, one’s “bread and butter” and passion tends to lead to success. It is much harder to define these terms, answer those questions accurately, and put those answers into action.

The Baldrige Criterion of “Strategic Planning” also deals with the question of how to develop a compelling market-driven strategy and how to deploy those good intentions in every-day work. And, once again, the Baldrige approach complements the Good to Great factors well.

Embracing paradox.

As with many management paradoxes, the solution to the puzzle of the hedgehog and the fox lies not in the strength of our arguments for one approach over the other, but rather in our ability to glean the most useful aspects of both approaches. While we cling to a single-minded focus, the way we implement that focus must constantly adapt to changing market conditions. Perhaps the venerable Eastman-Kodak company was acting like a hedgehog when it clung tenaciously to the traditional photographic film business while the rest of the world embraced digital photography. Was Kodak’s stubbornness in the face of change a fatal misstep? Time will tell.

By contrast, many students of business look askance at the well-known conglomerates of seemingly unrelated businesses such as Beatrice, ITT, and Textron. Yet, upon further examination, we discover that a well-run conglomerate such as GE can achieve extraordinary results by applying a single-minded strategy to a somewhat unfocused business portfolio.

Could it be that the answer is to be single-minded in our core, underlying business approach, but fox-like in how we bring that core strategy to market? If you believe that model, then the Baldrige Strategic Planning criterion lays out a comprehensive checklist for how to develop and deploy the plan.

Selecting measures.

What both approaches agree upon is the need to select the right measures to translate strategy into action. What gets measured gets done. The Baldrige emphasizes the importance of measurement as a tool for fact-based management, tracking results, and making continuous improvements. Collins views the choice of measurement as a key driver of organizational behavior.

7 practical ways to apply this learning:

1. Figure out what you can be the best at.
2. Select a core strategy based on what you can be the best at.
3. Cling to that strategy with a hedgehog’s tenacity.
4. Deploy that strategy in a way that creates organizational alignment.
5. Select the right measures to track progress.
6. Create “line-of-sight” between individual activities and organizational goals.
7. Stay fox-like, alert, flexible, nimble and adaptable when it comes to deployment.

Got a business or leadership challenge? Ask Syndicated Columnist Gene C. Mage at http://www.makingitwork.com .

For more information on Jim Collins visit http://www.jimcollins.com . For more information on the Malcom Baldrige National Quality Award, visit http://www.quality.nist.gov .