Thursday, October 29, 2026
Jim Collins found that companies which broke away from average performance could name, with brutal precision, what they could be best in the world at. Here's the three-circle test and the goal that pairs with it.
Ask three people in your business what you're actually best at, and you'll usually get three different answers — "good service," "quality product," "we really care about our customers." Every competitor in your market would say the same thing about themselves. That's not a strategy. It's table stakes.
Jim Collins spent five years studying companies that broke away from years of average performance into sustained, market-beating growth, and found something uncomfortable: the ones that broke away could answer, with brutal precision, what they could be the best in the world at. The ones that stayed average never could.
After over 30 years building strategy for brands from McDonald's to nine companies of my own, I've seen the same pattern at SME scale. The businesses that grow fastest aren't the ones doing the most things. They're the ones that have stopped doing everything else.
The enemy here isn't laziness or a lack of ambition — it's the opposite. Most SME owners say yes to too much, because every opportunity looks like growth: a new service line, a new customer type, a trade show in a market they've never served. Each one feels like progress, and each one quietly dilutes the one thing that could make the business genuinely hard to beat.
Collins' research, published in Good to Great, found this pattern specifically among the companies that made the leap from good to great: they identified the intersection of three questions — what you can be the best in the world at, what drives your economic engine, and what you are deeply passionate about — and refused to operate outside it. He called it the Hedgehog Concept, after the fable of the fox that knows many things and the hedgehog that knows one big thing, and does it extraordinarily well.
This isn't a brainstorm. It's three honest tests, run in order:
Collins and co-author Jerry Porras later added a second half to this: the Big Hairy Audacious Goal, a single, vivid, ten-to-twenty-five-year statement of where that Hedgehog takes you, specific enough that everyone in the business could repeat it from memory. Put the two together and you get something most strategic plans never deliver — a reason to say no, and a reason to keep going once the market gets noisy.
"He really got our vision from the beginning and has been a huge help in putting together a clearer plan and strategy for the next five years. Working with Kevin D'Ambros-Smith has given us the space to pause and reflect — on where we are now, where we want to be and how we get there."
— Gabby Kirk, Papier Hq
Here's the real obstacle: this isn't a knowledge problem. Most owners have an instinct for what they're genuinely great at. What stops them is that naming it honestly usually means naming the two or three things they're merely competent at — and those things often represent real, current revenue. Saying no to them on paper is easy. Saying no to them when a client is on the phone asking for exactly that is a different thing entirely.
This is precisely the conversation an outside strategist is built to have. An owner grading their own Hedgehog Concept is like a parent grading their own child's exam — too close to the business to be the honest judge it needs.
List every product, service and customer segment you currently operate in. Next to each, mark whether it sits inside your three circles, or outside them. For most SME owners, somewhere between a third and half of what's on that list sits outside — quietly consuming the capacity your Hedgehog needs to actually win.
If your 2027 plan is still a list of everything you could do rather than the one thing you're built to be best at, that's the first conversation we have.
Monday, October 19, 2026
A strong December can feel like proof you're growing. It can also be the reason nobody builds the pipeline that carries January. Here's the three-question check to run now.
Monday, October 19, 2026
A good coach doesn't start with your goals. They start with three numbers most owners can't answer on the spot, and that gap tells them exactly where to begin.
Monday, October 19, 2026
Most SME owners have tried an AI tool this year. Few can say, in hours, what it actually saved them. Here's the test that tells the difference, and the first step to take.
Monday, October 19, 2026
By the time a prospect calls you, they've already done most of their own research. Here's the sales approach built for exactly that moment, and why most SME pitches skip it.
Monday, October 19, 2026
Social platforms can change the rules on your reach overnight. Here's the one marketing channel no algorithm can take away from you, and why most SME owners still starve it.
Monday, October 19, 2026
A new survey says 53% of small business owners are stuck on finding customers. Here's the one-question test that finds out whether that's really your constraint, or just the easiest one to blame.
Sunday, October 18, 2026
ActionCOACH, Business Blueprint, government-backed advice and independent coaches compared fairly for Australian owners, with best-for and not-ideal-if for each.
Sunday, October 18, 2026
An executive coach develops you as a leader. A business coach works on the business itself. Here is how to tell which one an NZ SME owner needs before paying for either.
Sunday, October 18, 2026
Most SME owners can tell you their revenue. Almost none can tell you which customers are actually making them a profit. New 2026 research shows why that gap is the real growth problem, and a three-step fix.
Sunday, October 18, 2026
The average small business gets 27 percent of revenue from one customer. Here is the three-question check that tells you whether your growth is real, or just concentration in disguise.
Sunday, October 18, 2026
Coaching can return seven times its cost, PwC research suggests, but rarely from where owners expect. Here is where the real ROI on a business coach actually shows up.
Sunday, October 18, 2026
Gallup found managers think they give weekly feedback, their teams say otherwise. See why your business systems depend on a conversation most owners are avoiding.
Sunday, October 18, 2026
56 percent of stalled B2B deals end in no decision, not a lost sale to a competitor. Here is why your prospects go quiet after saying yes, and the direct question that gets them talking again.
Sunday, October 18, 2026
The median landing page converts at 6.6 percent, and most SME websites never get close. Here is what the top quartile actually does differently, and why fixing it beats spending more on ads.
Sunday, October 18, 2026
Most growth plans start with last year's number plus a guess. Here is the three-number market-sizing check that separates a real plan from a wish list.