2. Foxes pursue many ends at the same time and see the world in all its complexity. They are scattered and diffused, moving on many levels. -Isaiah Berlin
3. Hedgehogs simplify a complex world into a single organizing idea, basic principle or concept that unifies and guides everything.
11. You can’t manufacture passion or “motivate” people to feel passionate. You can only discover what ignites your passion and the passions of those around you.
44. Good to Great and the Social Sectors A great organization is one that delivers superior performance and makes a distinctive impact over a long period of time. -Jim Collins
45. Good to Great and the Social Sectors How effectively do we deliver on our mission and make a distinctive impact, relative to our resources? -Jim Collins
46. Good to Great and the Social Sectors What if your outputs are inherently not measurable? The basic idea is still the same: separate inputs from outputs, and hold yourself accountable for progress in outputs, even if those outputs defy measurement . -Jim Collins
Read the hedgehog story from the beginning of the chapter.
People who were able to translate a complex world in to a simple concept.
Talk about my personal hedgehog concept and fill in the three circles on the flip chart as an example to guide the following discussions.
This is the tiger looking both ways before crossing the road. This is us, discovering our hedgehog concept.
Can we sit down for a couple of hours with a PowerPoint and a flipchart and hash out our Hedgehog Concept?
The council consists of a group of the right people who participate in dialogue and debate guided by the three circles iteratively and over time, about vital issues and decisions facing the organization. I chose this picture, because this is the point in the story/movie where the main characters hashed out their main objective and made their commitment to achieve that objective.
According to Jim Collins, The passion for growth by itself does not make a Hedgehog Concept. In fact, companies with growth and any cost and in any way very often went completely astray and ended up in bankruptcy or worse. Take Enron for example: profit at any price. Look where it got them.
It takes incredible passion to compete on a world class level like the Olympics.
Can you imagine anyone working for Mattel that didn’t have a passion for toys or for Barbie?
Gillette executives made the choice to build sophisticated, relatively expensive shaving systems rather than fight a low-margin battle with disposables. They just couldn’t get excited about cheap disposable razors.
A carpenter may not have a passion for hammers, but maybe for what the hammer can do as a tool.
I have a passion for building a great credit union. Accounting is one tool. So is Member Service, Business Development, Marketing, IT, Branches, etc.
Air Transportation Industry
Do we have a passion for Member Service?
Split into teams of 5 or 6 and go through the discussion sheet on passion. Workshop leader draw the 3 circles (large) on the flip chart. Gather back to get recaps from the team spokesmen. Fill in the Passion circle with ideas from the teams. Hopefully you will begin to piece together the hedgehog concept here on the sheet. As you fill in each circle ask for feedback on how these circles interact and support each other.
What does it take to win an Olympic medal? Passion, for sure. And the capability to be the absolute best in your field.
Ask the audience to shout out names of top companies. How do we compare? In what ways do we excel?
I recently read an article about a high-end sports sedan manufactured by Volkswagen. The price was over $100,000. Besides my shock at the total price, it didn’t fit with my basic impression of VW. When talking about high end cars, VW doesn’t readily spring to mind. My Dad had a VW van when I was a kid. Not like Rolls Royce, Jaguar, or Mercedes.
Within the context of the time (1960s) and in its segment of the market (inexpensive, low maintenance, and fun too!), the VW Bug was one of the best cars in the world.
Disney’s Love Bug movies reinforced the public perception that this was a fun and spunky little car. In the 1980’s one car company tried to duplicate the bug’s success. Can you guess which car that was?
The Yugo tried to pass itself off as the new bug. Low cost, fuel efficient, high mpg, etc. But the quality was so bad that they couldn’t deliver on the expectations generated by their marketing and they failed miserably.
Meet in teams and discuss. Gather back to get recaps from the team spokesmen. Fill in the “Best At” circle with ideas from the teams.
In order to fly high we need a well tuned high performance engine. Having a problem with engine failure in flight is what you want to avoid at all costs. Likewise, understanding your economic engine enables high performance output for your company or organization.
High octane gas goes in . . .
High performance comes out.
Read story from G2G & Social Sectors (page 4) on the NYPD in 1995.
Give examples from CU industry: Credit Union “CAMEL” ratios. Capital divided by Assets Asset/Liability ratios Management (subjective rating of management quality) Earnings = net income, return on assets, etc. Liquidity = sufficiency of cash flow. Net Promoter Score: The Ultimate Question , Fred Reichheld From Harvard Business Review HBR.com The One Number You Need to Grow Frederick F. Reichheld December 2003 Issue Abstract: Companies spend lots of time and money on complex tools to assess customer satisfaction. But they're measuring the wrong thing. The best predictor of top-line growth can usually be captured in a single survey question: Would you recommend this company to a friend? This finding is based on two years of research in which a variety of survey questions were tested by linking the responses with actual customer behavior--purchasing patterns and referrals--and ultimately with company growth. Surprisingly, the most effective question wasn't about customer satisfaction or even loyalty per se. In most of the industries studied, the percentage of customers enthusiastic enough about a company to refer it to a friend or colleague directly correlated with growth rates among competitors. Willingness to talk up a company or product to friends, family, and colleagues is one of the best indicators of loyalty because of the customer's sacrifice in making the recommendation. When customers act as references, they do more than indicate they've received good economic value from a company; they put their own reputations on the line. The findings point to a new, simpler approach to customer research, one directly linked to a company's results.
Just as an example of departmental measurements, Business development would be tracking new members, Marketing could track products per member. How long does it take to ramp up new members to the average products per member that is our target. Are we tracking that? Can we tighten up on that time frame by tweaking our marketing strategy?
Here is a graph on member growth worksheet. We can see the dramatic transition right at the point when a new Business Development Manager was hired. Each department should develop some standard of measurement for success.
How do we measure success in our department? What about a department like Accounting that doesn’t have clear measurable outputs?
We have to get real about measuring our success. Discuss the metrics as a team or as a whole group. Fill in the Economic Engine circle with ideas from the audience.