This document discusses the "Hedgehog Concept" of simplicity within three intersecting circles. It describes how hedgehogs focus on a single, core idea to simplify complex problems, unlike foxes which pursue many ideas. Examples are given of individuals like Darwin who had a unified concept. The concept is then related to businesses like Walgreens that achieved success with a simple drugstore model, unlike imitators like Eckerd. The document concludes by defining the three intersecting circles of the Hedgehog Concept as what you are best at, what drives your economic engine, and what you are deeply passionate about.

1. THE HEDGEHOG
CONCEPT
(Simplicity within
three circles)
BY
MAJOR (RETD.) PRAVIN SINGH
CONFLUENCE

2. THE HEDGEHOG CONCEPT
1 ST WHO.. CONFRONT CULTURE
LEVEL 5 THE BRUTAL HEDGEHOG OF TECH
LEADERSHIP THEN WHAT FACTS CONCEPT DISCIPLINE ACCELATOR
DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION
FLYWHEEL

3. KNOW
THYSELF

4. “THE HEDGEHOG AND FOXES”
Isaiah Berlin
Essay based on ancient
Greek parable-
“The foxes know many things,
but the Hedgehog knows one
big thing”.
In our mythology “Arjun &
the Fish’s eye”.

5. COMPLEXITY VS SIMPLICITY
 Foxes pursue many ends at the same time
and see the world in all its complexity.
 They are “scattered or diffused”, moving
on many levels.
 Hedgehog simplify a complex world into a
single organising data, a basic principle or
concept that unifies and guides
everything.
 For Hedgehog, anything that does not
relate to the Hedgehog idea holds no
relevance.

6. TAKE THE COMPLEX WORLD AND….
SIMPLIFY IT.
 Darwin- Natural selection.
 Einstein- Relativity.
 Adam Smith- Division of labour.
 MARX-Class struggle.
 Hedgehog aren’t simpletons.
 Piercing insight to see through complexity
and discern underlying patterns.
 Hedgehog see the essential and ignore the
rest.

7. WALGREENS Vs ECKERD
 Simple concept of convenient drug store.
 Implemented with fanatical consistency.
 Replaced all inconvenient store with corner
store, so as to have multiple entry/exit.
 Clustered store so that customer need not
walk more than few blocks.
 PROFIT PER CUSTOMER VISIT.
 One hour photo developing etc. Etc.
 Simple idea.

8. COPY CAT: FOXES
 Eckerd did copy the concept.
 56 store here, 36 there, 25 elsewhere and
so on….
 It did not work.
 Concept of “Convenient drug store not
achieved”.
 They diversified in home video market.
 Ten years later Eckerd ceased to exist.

9. THE THREE CIRCLES
 JUST BECAUSE IT IS SIMPLE DOESN’T
MEAN IT IS RIGHT.
 MORE PRECISELY, IT IS A SIMPLE
CRYSTALLINE CONCEPT THAT
FLOWS FROM DEEP
UNDERSTANDING ABOUT
INTERSECTION OF THE FOLLOWING
THREE CIRCLES.

10. THE THREE CIRCLES
1. What in the world you are
best at (and equally imp, what
you cannot be the best in world
at).
2. What drives your
economic engine.
3. What are you deeply
passionate about ?

11. WHAT YOU ARE DEEPLY
PASSIONATE ABOUT.
WHAT
WHAT YOU CAN DRIVES
BE THE BEST IN YOUR
THE WORLD AT ECONOMIC
ENGINE