What separates winners from losers?

What separates a winner from a loser? Does success mean owning things? How does it feel when you are doing what you like to do best? What does love mean?

Hear Paul Newman and Piper Lawrie talk about all these issues in this clip from the movie The Hustler. You could then reflect on, and interpret their conversation  within the framework of your own experience.

Hedgehog Concept II

Hemendra Kothari is an ace deal maker and a well respected millionaire stockbroker who founded  DSP Financial Consultants in 1975. He set up and chaired a joint venture with Merril Lynch and and sold the bulk of his stake to Merrill. In 2008 he formed a mutual fund joint venture with BlackRock Investments, in which he holds 60% stake. Now the Economic Times reports, that Kothari is toying with the idea of a second innings as a social entrepreneur. After having made a mark in the world of investment banking, how certain are the chances of success for Kothari in his new avatar?

Quite certain, claim people in the investment banking industry. Here's how Rajeev Gupta, an investment banker describes why his chances of success are high, "In every business, Hemendrabhai combines strategy, drive and ethics." And how exactly are these three factors important to his success? "The first two procure visible differentiation and the last a powerful employee commitment." Success, concludes Gupta  "invariably follows."

Hedgehog Concept II

I find the three factors of success cited by Gupta as universally true for every one of us who wishes to be successful in life and business. As a matter I would call it Hedgehog Concept II.

 A hedgehog concept, according to Jim Collins in his book Good to Great is "not a goal to be the best, it is an understanding of what you CAN be best at” The essence of a Hedgehog Concept is to attain piercing clarity about how to produce the best long-term results, and then exercising the relentless discipline to say, "No thank you" to opportunities that fail the hedgehog test. 

But once you have evaluated your opportunities through the filter of the three circles and found your sweet spot, it is time for the Hedgehog Concept II to kick in. 

The essence of a Hedgehog Concept II is to attain piercing clarity about how to produce the best long-term results (strategy), and then exercising the relentless discipline (drive) to say, "No thank you" (ethics) to opportunities that fail the hedgehog test.