Hidden champions

Hidden champions are relatively small but highly successful companies that excel in their niche but are not well-known to the general public.

He first used the term in 1990 as a title of a publication in a scientific German management journal, describing the small, highly specialized world-market leaders in Germany.

Simon postulates that Germany's strong exports are supported by a large number of midsize firms.

For this reason, hidden champions feel a strong need to work abroad early in their company's development.

Their high real net output ratio is often achieved by working with proprietary processes which make it hard for competitors to imitate their products.

It also seems to be evident that to maintain market leadership hidden champions do business on their own, rather than depend on working in cooperation with others.

This keeps significant know-how inside, and helps recruit highly qualified staff at a small company.

Their values are conservative: hard work, strict selection, intolerance of underperformance, low sickness rates and high employee loyalty –and most are based in smaller towns.

The leaders identify themselves with the company, are focused on their products, and stay for a long time, much longer than is normal in large public corporations.

Hidden champions need people who are happy to live in a remote location, who are attracted by job content, and who do not care much for a formal and prescribed career path.