This model basically says that it’s good to have a focused strategy, play to your strengths and ensure your team is engaged. It’s a fine, basic message and the hedgehog analogy makes it accessible. Organizations do benefit from having a clear purpose, vision, product offering and customer base and this model may help them identify where to focus their resources.
That said, organizations also need to respond to a changing world, experiment, learn new things, acquire new skills, shape new markets, respond to new challengers, adopt new technologies and create new products. They’ll never do that if they just do one thing well.
We also believe that this model is founded on the underling principle that organizations should focus on maximizing shareholder returns. We think that organizations should do more than this, and we’re not sure that this model supports the complexity and nuance of trying to maximize stakeholder as opposed to shareholder returns.