To be a brilliant boss, you need to be a fox — and a hedgehog - Sunday Times

Entrepreneurs like to be on the prowl for the next move. But they should also be prickly when anyone suggests making that move

How about a new year’s resolution that will genuinely transform your life for the next 366 days (don’t forget February 29), at home and at work? For once, do the opposite and resolve not to do something.

As an entrepreneur, one of my greatest strengths is also a weakness — I’m always seeking to grab a fresh opportunity, sometimes to the detriment of what I already have. By resolving to do less, I’ve become better at the things that matter most.

Sometimes the hardest thing in business is to say no, because our natural instinct is always to want to do more. We’re too often seduced by the prospect of spending money on acquiring something, which often fails to get the promised-for shareholder return, instead of disposing of an asset that under-performs or no longer fits.

It is why Unilever recently sold more than 20 of its small-revenue brands to private equity, including Brut, Timotei and Brylcreem. Sales for these labels amount to about €800 million (£700 million), but by doing less, the company will be able to focus on growing its “big 30” brands, which account for most of its €60 billion in sales.

A big mistake in HomeServe’s growth was to expand into too many new products. We invested in smart home devices, furniture warranties and offering post-flood and fire restoration work. My enthusiasm for doing more was misguided.

The difference between companies such as Rightmove and Auto Trader, as opposed to their respective competitors in property and car retail — Purplebricks and Cazoo — is that the former have had a ruthless focus on what they can be brilliant at, while the latter struggled under the weight of trying to do too much, such as going into new countries before proving the model in their home territory.

Turning something down does not come easy to an entrepreneur. We are hard-wired to be “foxes” — always on the look-out for the next move. It’s why we need to adopt the traits of a “hedgehog” —committed to moving on a steady path and getting prickly when anyone suggests more.

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My chief executives are the hedgehogs to my fox. Their ruthless desire for consistent success means they don’t get distracted. I’ve learnt from them how to be more disciplined, and I’ve also learnt from one of the best business gurus around, Jim Collins, who once invited me to his Colorado retreat. There, I discovered why every deal-making fox needs a methodical hedgehog to make them truly successful.

The best way to find that purpose is to sum up these three questions in a single sentence. What are you passionate about? What can you be the best in the world at? What drives your economic engine? Write the answers in one sentence and that will be your “Hedgehog strategy” — there to guide what you do and don’t do.

So, as I’ve been preparing my list of objectives for 2024, I’ve been fox and hedgehog, forcing myself to cross more out than I’ve added in. This time last year, I had 16 ambitions, 10 of which I’ve delivered in full (this column being one of them), three that are part-fulfilled and another three yet to be achieved.

This year, my list is shorter and here’s my advice for yours. First, create a not-to-do list at the same time as your New Year’s Resolutions. It will motivate you to achieve the latter and, if appropriate, should be shared with your entire team so they are on the same page.

Then, analyse what you did and didn’t achieve this year, being honest about mistakes as well as successes so you can plan better for the future. We can improve only by constantly learning from why past experiences happened.

Next, make sure there is a healthy balance of professional and personal. I’ve got 12 ambitions this year, one of which is to employ a personal trainer to take me out of my comfort zone every week and push me to new limits. Family, health and lifestyle are as vital as anything work related.

Write down these resolutions and carry them with you everywhere to provide inspiration when you most need it. Mine are on a folded A4 sheet of paper. The leadership team at one of the businesses I’ve invested in, Passenger Clothing, has pinned theirs up in the boardroom so that every meeting and decision in some way relates to their pre-agreed ambitions.

Next, learn the art of “essentialism”. This is the title of a brilliant book by leadership consultant Greg McKeown. It outlines a disciplined, systematic approach to determining where and how we can contribute most. Essentialism is not about how to get more things done by acting reactively, but getting the right things done by eliminating non-essentials — what McKeown calls “the disciplined pursuit of less”. Instead of saying “I have to”, say “I choose to”.

Finally, make 2024 a year of decision-making. Too many leaders procrastinate because they are waiting for 100 per cent of the data before making a move — when, in reality, 70-80 per cent is good enough. Better to make a decision than do nothing, because there’s always time to change tack if required.

We all create ever longer to-do lists, but when you are seeking business or personal growth, you should do the opposite. Don’t be seduced into adding more resolutions. Instead, have the courage to say no, because that’s what makes a yes more valuable.

So what will be your business not-to-do in 2024?