By Rand Manasse
Big Hairy Audacious Goals are called BHAG’s (pronounced BeeHaagh).
Perhaps you’ve heard the term before. It comes from the book Built To Last, written by Jim Collins and Jerry Porras.
In their research, Collins and Porras found that companies that were built to last (and later ones that went from Good to Great) had long-term goals that were on the edge of being extremely ambitious yet possible.
Many businesses focus on goals for today, this week, this month, or the next one to five years. While it’s important to set these goals, it’s also necessary to understand where the company is headed and what is expected of the employees and the team in the long term.
Only with a BHAG can a business go from good to great and then build itself to last.
What is a BHAG?
A BHAG sets a goal that makes your team think about a finish line. The goal excites people and gives them a clear reason for doing what they do daily.
A good BHAG creates two relationships with your business. First it aligns with your Hedgehog Concept and second it builds on the momentum contained in the The Flywheel strategy.
In aligning with your Hedgehog Concept, your BHAG needs to fit with what you’re
1) Passionate about,
2) What you can be Best in the World at,
3) And it has to fit with what drives your Economic Engine.
If your long-term goal doesn’t fit with these three elements, then your BHAG will not survive.
It’s not always easy to come up with a BHAG, but if you have developed a Hedgehog Concept that focuses your organization on success, it will be a catalyst for developing your BHAG.
That is how creating a BHAG follows the framework, which needs to be audacious but also attainable.
Second, the BHAG needs to fit with your Flywheel strategy. Often, in business, it takes time to learn your Hedgehog Concept. To do so, you might have to try different strategies until one emerges as the key winner.
It might start with one implementation and then another until you realize you’re riding your flywheel’s momentum.
Then, it is the perfect time to set your BHAG. You have a clear understanding of your Hedgehog Concept, and the flywheel is spinning faster and faster and it’s gaining momentum.
It’s Time To Create Your Vision, Your BHAG
Now that your business understands the Hedgehog Concept and has the flywheel spinning, it’s time to create your vision or your BHAG.
Henry Ford had a Big, Hairy, Audacious Goal. He was not the first person to have the idea to create an automobile—he wasn’t even close to the first.
Henry Ford’s long-term goal was to create an automobile for the mass public. Up until his idea, the automobile was only for the elite class. You had to have wealth to afford such a luxury.
Henry Ford realized that he was passionate about automobiles. He found a method for building affordable cars, and the model was profitable.
From there, he set his BHAG to become the largest automobile manufacturer in the world, and within a few decades, that is precisely what happened.
The goal was big and audacious, but the team members understood it could be achieved. They could see the momentum building. They were on board and knew when they reached the finish line because the company became the biggest in the world.
Amazon is another example. The company was founded in the early days of the Internet and E-Commerce boom. It started by selling books.
Momentum started building around this idea, and soon, Amazon became the most prominent online bookseller in the world.
But that wasn’t enough. Once Amazon achieved the goal, it realized there had to be another finish line or another BHAG.
Today, Amazon is focused on becoming the most customer-centric company in the world. They have passion, know they can achieve it, and have a profitable business model.
It’s a goal that is attainable.
Final Challenge
Now it’s time to set your BHAG.
Share your idea for your company’s Big Hairy Audacious Goal in the comments.
As always, please comment and let me know what you think. If you need help building value into your business, contact me at 914.666.0830 or RManasse@GreenLnPartners.com.
To your success
Rand
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