Applying the Hedgehog Concept to Software Engineering

It was Christmas of 2021 and one of my sons gave me the book Good to Great as a gift. I read it over the holidays and truly enjoyed it. One of the ideas covered in the book is called the “Hedgehog Concept”. In simple terms, the concept flows from an understanding about the intersection of three circles:  

1. What you are deeply passionate about 
2. What you can be the best in the world at 
3. What best drives your resource or economic engine 

Looking back at 2022, I’ve been able to apply the hedgehog concept to the software engineering organization I lead to better position us for the future. This article will explains out how you can too, and the benefits you may see from doing so. 

First, identify your target as a system (or part of a core system) that has strong ROI potential and carries significant tech debt. If you’re applying the hedgehog concept to identifying the target, you’ll quickly ask questions like: 

• Are we really staffed to maintain or innovate in technology? 
• Are there other companies or SAAS solutions that excel in this area? 
• What could we gain from a “Best-of-breed" replacement? 
• If we don’t need to maintain this, does it free resources to focus on our core competency systems? 

Second, explore your options in open-source libraries or 3rd party companies. In the case of open-source libraries, the cost will be favorable, and it should be well maintained for a period. Eventually you may need to swap it out with another solution, and you’ll want to make sure it stays clean of security vulnerabilities.  

 With 3rd party companies, you’re looking for small players that thrive on the hedgehog concept. Setup a call and have a conversation to learn more about their capabilities and plans. A small company that is passionate about the area you want to replace is probably working hard to be the best at solving the problem. They do one thing and do it well. They innovate continuously, and it drives their economic engine.   For these companies, if you find the right one it can be a win for both sides!     

Third, for either option, take enough time to run a good proof-of-concept exercise. Take as many rounds as you need. Use real data. Compare and document the results against the current system or technology. Lastly, involve business partners to help with building the broader case for funding and leading the business through the inevitable change that will ensue.    

As you go through this process, be on guard. You may find some people who cling to the notion that we can “do it all” and we don’t need to partner with a 3rd party or new open-source software library. When that happens, go right back to the first step and gently ask those questions out loud, and the critics will melt away.  

So, what are the benefits? Every situation is unique, but you may find one or more of the following benefits from this process: 

1. Improved capabilities, because the 3rd party is innovating in the technology 
2. Automation of manual processes that results in cost savings (especially during a period of high inflation) 
3. Ability to focus the engineering team on your core competencies that drive your economic engine 
4. New revenue opportunities due to the improved capabilities of the 3rd party 

Good to Great is an excellent book for any leader to read, regardless of function. For my friends in the software engineering domain, take a lesson from a small prickly critter and elevate your team and business to the next level.  

Cheers