Before you write that vision and mission statement...

Heard of the Hedgehog Concept, the ancient Greek word that became more prominent in the book “Good to Great” by Jim Collins?

  1. What you are deeply passionate about,
  2. What you can be the best in the world at, and
  3. What best drives your economic or resource engine.

Some vision and mission statement have no soul, just fancy words, that sometimes makes sense and most times just work of art crafted just to feel good without a clear connection to the actual work.

  • Understanding what you are deeply passionate about. The focus here is not to get you to be passionate. It is not a stimulation exercise. It is to get you to figure out what you are already passionate about. A business must have a purpose that is exciting and motivating because it was borne out of passion. I never do anything I am not passionate about. Actually, that is not entirely true, I wrote a book on decluttering just for $ 300 as compensation. I wasn’t really passionate about it, but at that time, the anticipation of getting $300 as remuneration kept me going. What are you passionate about? Does your business purpose inspire your people or they simply don’t care? It is important to hire people that align with your business purpose and culture.
  • Identifying what your organization does better than anyone else. What are you the best in the world at? Sometimes what you are passionate about might not be what you are the best in the world at. I am passionate about singing but would struggle to compete with some of the world’s best because I know in my heart of hearts it is not my core competence. I am passionate about solving problems, helping people and businesses reach peak performance that translated into setting up a business that does just that in the form of Management and Leadership Consulting. I bring about transformation, help with marketing and operational excellence, leadership and change management in diverse organizations across the globe. What are you the best in the world at? What can your organization do better than anyone else? It is also understanding your weaknesses, what you can’t be the best in the world at. Knowing what you struggle to do can open the doors to finding what your organization can do really well.

What if I am work in progress? That’s totally fine.

  • Determining where your organization is good at generating revenue. (Jim Collins calls this “understanding your economic engine.” ). Your organization must understand how to generate sustained cash flow and profitability. Business continuity and sustainability is fueled by having a steady cash flow. When you have a weak inflow of cash, or a poor cash flow management process, you can go bankrupt easily. The task of the business leader is to discover or discern what this denominator is. Understanding how your company generates sustained cash flow and profitability and being able to express this insight as a single “economic denominator” is the core of what drives your economic engine. This is also known as “profit per X,” where “X” is the single measure that can have the greatest and most sustainable impact on your organization’s long-term success.
  • Profit per customer.
  • Profit per employee.
  • Profit per location.
  • Profit per geographic region.
  • Profit per part manufactured.
  • Profit per brand.
  • Profit per product line
  • Profit per sale.
  • Profit based on the company’s mission

Understanding where the three models meet or overlap is where you’ll find your Hedgehog Concept: the central vision that should guide your organization’s strategy.

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buzzedison

I write about Business, Movies (Top Writer), Fiction, Inspiration, Poetry. and anything to make you win in life. https://www.buzzedison.co