4. What's Our Hedgehog Concept?

Hedgehogs tend to outpace foxes in corporate settings, where Collins said the ability to synthesize a complex world down to a single, directionally-right organizing idea is paramount.

There's a compounding effect associated with making a series of decisions consistent with one basic idea, which typically culminates in a breakthrough for organizations.

Hedgehog leaders typically succeed if they're doing what they're really passionate about, doing what they can be the best in the world at, and have an economic engine behind their idea, Collins said.

"If your company disappeared, who would miss you and why?" Collins asked.

Collins also cautioned that being the biggest and being the best aren't the same thing.