I’ve seen businesses lose themselves in the search for growth. They pursue every new idea, expand into unrelated markets, and chase headlines rather than focus on providing value. From the outside, it can look like ambition. More often, it signals a lack of focus and discipline that eventually brings everything crashing down.
The Hedgehog Concept
Jim Collins captured this so simply in Good to Great with the Hedgehog Concept. The name comes from the parable that while a fox knows many things, the hedgehog knows one big thing, and survives because of it. The fox is clever and tries many complex strategies, darting from one opportunity to another. Meanwhile, the hedgehog focuses entirely on a single, profoundly understood approach, curling into a ball and defending itself simply but effectively.
In business, this translates to the power of disciplined focus over scattered ambition. It’s not a complex framework, nor is it about big words or flashy charts. It’s about finding that single idea at the intersection of three essential questions: What can we be the best at? What drives our economic engine? What are we passionate about?
The power of this idea lies in its simplicity. Many organisations pride themselves on elaborate governance structures and sophisticated planning documents, thinking complexity is a sign of maturity. In reality, it often becomes a trap. When governance turns into endless meetings and complex approval structures, organisations drift away from their true core. Instead of protecting value, governance starts to suffocate it.
The Hedgehog Concept is not just another strategy tool. It’s a discipline that should guide governance. Strong operational and financial governance has the potential to keep a business aligned with its central purpose, not simply check boxes. When crises hit, that central purpose is what steadies leadership teams. Without it, panic and reactive decisions can quickly take over.
The Dangers of Being the Fox
I’ve worked with businesses that lost sight of their “Hedgehog.” They had beautiful strategy decks, expensive advisors, and impressive investor pitches. But under stress, they showed no clarity about who they really were. It’s in these moments that you see the true cost of strategic drift. Operations break down, teams fracture and silo, priorities conflict, and ultimately, stakeholders lose trust.
Take WeWork’s implosion as an example. The company expanded far beyond its core idea of shared workspaces. It started chasing a vague identity as a “tech company” and ventured into schools, residential living, and beyond. The result? No unifying concept, no grounded governance, and a leadership team making decisions that lacked coherence. Contrast that with a business that knows exactly what it stands for and acts consistently on that understanding. Those are the organisations that endure.
Another powerful example comes from Nokia. Nokia built its success around robust, simple to use devices. A clear hedgehog concept. But in trying to compete directly with Apple in the smartphone arena, Nokia stepped away from that core. They chased features and trends rather than staying true to what made them strong. The result was not just a lost market position, but a complete erosion of brand identity and trust.
In Crisis, Clarity Wins
At Arx Nova, we help businesses rediscover that core. When we enter during a crisis, one of the first steps is clarifying what truly matters. What is the organisation’s reason for existing? What activities actually drive stability and growth? Stripping things back to these questions isn’t about limiting ambition; it’s about creating a foundation for decisive, confident action.
A refined strategy should never sit on a shelf or live in a PowerPoint file. It must inspire movement. It should tell teams not just where they’re going, but why it matters and what to stop doing along the way. In many ways, the Hedgehog Concept is less about choosing what to do and more about having the courage to say no to everything else.
When crisis strikes, leaders don’t have the luxury of deliberating endlessly. A clear strategic centre allows rapid, consistent decisions. Good governance, informed by a Hedgehog like clarity, provides that. It connects strategy to everyday actions, stabilises cash flows, sharpens operational priorities, and preserves stakeholder confidence even in the storm.
Reflecting on my own journey, I’ve always been drawn to the power of simplicity. I believe complexity can look and sound impressive, but simplicity drives results. That’s why at Arx Nova, we focus on immediate stabilisation and unified leadership. We don’t inundate clients with competing voices or endless reports. We step in, clarify priorities, and act. A rapid and cross functional stabilisation response.
The Hedgehog Concept isn’t just an idea for the board rooms of the world’s largest companies. It’s a universal principle that mid-tier organisations, especially those without deep crisis reserves, can adopt to build real resilience. As Jim Collins put it, greatness is not a function of circumstance. It’s a matter of conscious choice and discipline.
When an organisation genuinely understands its Hedgehog, it transcends any business model. It fosters an unwavering faith. In moments of intense pressure, that shared conviction can be the difference between enduring and falling apart. Arx Nova helps leadership teams rediscover and reinforce that conviction.
Who’s behind this post?
Joseph Mawdsley
Director & Co-Founder
Joseph Mawdsley is a senior project leader and governance specialist, and Co-Founder of Arx Nova. With extensive experience guiding complex organisations through change, Joseph focuses on operational control, strategic planning, and delivery under pressure. He helps businesses stabilise fast and move forward with structure and clarity.
