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Hedgehog Concept – The Three Circles

The hedgehog concept is based on three circles, all the same size and all equally important. Those three circles intersect in the middle, and that’s where you should aim.

The first circle as a hedgehog it implies what you can be the best at. This is not meant to be a goal, or strategy, or intention, or plan. It is a clear statement of fact, developed by looking honestly at what area you can shine. It is equally important to define the areas in which you lack skills.

This is not necessarily related to your skills in a particular area. You may be very good at math, but that doesn’t mean you can be the best person in the world at math, even with a lot of effort. Realize that what you might be best at might also be something you don’t do right now. Before there were computers, how did Bill Gates know he was the best in the world?

The second circle ask what is driving your economic engine. Discover the one common denominator that provides you with profits while allowing you to pursue your passion.

In the third circle, you discover what you are deeply passionate about. Ask yourself this question: If you were making all the money you needed and doing this job, would you still come to work? When you can tell yourself. “I’m the luckiest person in the world right now. I was made for this job!”, you really have.

The most important thing is in the middle, at the intersection of these three circles. If you could live your life in that place, you’d be done. You’ll be doing something that works with your core competency, something you can be the best in the world at. You are deeply passionate about your work and can’t believe you get paid for it. This passion and joy drives your economic engine.

You want to be at the center of the hedgehog concept. It’s no good having two out of three…you want it all! If you’re passionate about what you’re doing and you’re good at it, but there’s no money to be made, you’re going to be very frustrated. If you’re good at what you do and make a lot of money, but you hate your job, it’s not worth it. If there’s money to be made in an industry you’re passionate about, but you’re not good at, that can be frustrating too. So we want to stay at the intersection of these three circles.

Of course, this will mean research on your part. Look for your hedgehog concept, as you look for the intersection of these three circles. Everything you do must lead you to the intersection. When it happens, you’ll find that it guides not only your business choices, but your life choices as well.

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