Big hairy audacious goal
…a collective of like spirit, joining in a burning desire.
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Manifesting your burning desire.
Collect everyone’s goals, desires, ideologies, soul profiles and forge a big, hairy, agressive goal. Pursue it.
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Big Hairy Audacious Goals & Catalytic Mechanisms
BHAG—Big Hairy Audacious Goals
- Big Hairy Agressive Goals
- Review of the definition of a People Process Organization
- Origin of BHAGs and their importance
- Definition and examples of BHAGs
- Characteristics and types of BHAGs
- The application of catalytic mechanisms to assist the organization to reach its BHAGs
A BHAG (bee-hag)
- Has a high return on equity or return to shareholders over an extended period of time
- Creates a respect and deep appreciation for the value of people
- Has good strategy
- Is cohesive and adaptable
- Has a long-term survival mentality
- Its leaders understand that good people are a competitive advantage
- Coined by James C. Collins and Jerry I. Porras in the book Built to Last, a study of 18 visionary and comparison companies.
- Visionary companies formulate a core ideology that is based on two parts; to stimulate progress and preserve the core.
- BHAGs are developed to stimulate progress within the organization.
- Catalytic mechanisms “force” action by the organization to turn goals into results.
BHAGs effects on a company
- The core values and mission preserve the purpose while BHAGs stimulates progress.
Also see HBR » The Exhilarating Power of Purpose.
Preserve the Core & Stimulate Progress
- Yin: Cor Values
- Yang: BHAGs
Preserve the Core & Stimulate Progress
|Company||Core to preserve||BHAGs to Stimulate Progress|
|Boeing||Being on the leading edge of aviation; being pioneers; risk - taking||Bet the pot on the B- 17, 707, 747|
|IBM||Seek superiority in all we undertake; Spend a lot of time making customers happy||Commit to $5 billion gamble on the 360; meet the emerging needs of our customers|
|Ford||We are about cars—especially cars for the average person||“Democratize the automobile”|
- To reach 23 billion in sales in five years.
- Goodyear Tire & Rubber Co.
- To double sales in ten years.
- Proctor & Gamble
- To be “instead of just tops on its class…to be considered a global leader, like Coca Cola.”
- Campbell Soup
- 1960’s mission to travel to the moon and back by the end of the decade.
Great BHAG and a not so good example
- Visionary example:
- GENERAL ELECTRIC: Become #1 or #2 in every market we serve and revolutionize this company to have the speed and agility of a small enterprise.
- Comparison example:
- Total Quality
- Market Leadership
- Technology Driven
- Focused Growth
- Long Term 10-30 years or more
- Takes many smaller goals to be accomplished before BHAGs are accomplished
- Simple, easy, and to the point
- Connects with the core values
- Highly focused, tangible, and energizing
- BHAG is a goal, like going to the moon, not a statement---it has a clear finish line.
- BHAGs only help an organization as long as it has not yet been achieved.
- Need a high level of commitment of the organization. It never occurs to them that they can’t do what they plan to do.
- BHAGs become a way of life---must be aligned with the core ideology.
BHAGs in Four Types
- Target BHAG: goal-focused on a specific market segment.
- Common Enemy BHAG: goal focused on “crushing” the competition.
- Role-model BHAG: goal that uses another respectable organization as a role-model.
- Internal Transformation BHAG: goal to change or alter how the organization is perceived.
Writing a BHAG
- Big, but simple and understandable.
- There is no “right” or “wrong” goal. It focuses on results vs. activity.
- Highly focused, energizing and tangible.
- “Something to shoot for”---stimulates progress.
- Challenges and excites the people of the organization because it is something outsiders deem as foolish.
More about writing a BHAG
- Make it simple
- Make it tangible
- Paint a picture with words using a vivid description
- Make it something that people can remember from day to day
Catalytic Mechanisms make BHAGs effective
- Crucial links between objectives and performance
- A powerful managerial tool
- Makes BHAGs reachable
Examples of Catalytic Mechanisms
- 3M’S 15% RULE: all scientists, marketing, and manufacturing departments spend 15% of their time creating new items.
- Granite Rocks short pay: customers are instructed to cross out any item on the invoice that they were unsatisfied with, provide a short written explanation, and return the invoice for a check for balance of invoice. No further questions.
- Produces desired results in unpredictable ways. They educe action.
- Distributes power for the benefit of the overall system.
- A catalytic mechanism has teeth:
- Initiates a process in place that completes the vision
- Rewards team results
- Brings action to words, example…
- To have total customer satisfaction
- To empower other people
- A catalytic mechanism produces an ongoing effect:
- Has ongoing motivation, not a one time event that motivates then fades out
- It can last for decades
- Keeps people’s attitudes positive
- Helps in continuous change for growth
Catalytic Mechanisms produce desired results in unpredictable ways and:
- Give people the freedom to:
- Show initiative
- Be creative
- Do unexpected things
- Step outside the job description
- New Knowledge
- Better results
- Create a circle of:
- Enhanced results
- Distribute power
- Improves learning
- Forces action and change
- Gives people the freedom to do the right thing
- Distributes power away from the people in charge and gives it to others
Relationship between a BHAG and a vision
- Visions are what drive people to fulfill their BHAGs
- Visions can help create BHAGs
Evidence Of BHAGs
- Method: Collins and Porras assess the use of BHAGs in the visionary and comparison of companies, they considered evidence along each of the following dimensions
- A: Use of BHAGs
- B: Audacity of BHAGs
- C: Historical pattern of BHAGs
- Gebouwd voor de toekomst
- Template:GGGD schets (PDF)
- Seth Godin » Make big plans:
- ...that's the best way to make big things happen.
- Write down your plans. Share them with trusted colleagues. Seek out team members and accomplices.
- Shun the non-believers. They won't be easily convinced, but they can be ignored.
- Is there any doubt that making big plans increases the chances that something great will happen?
- Is there any doubt that we need your art and your contribution?
- Why then, are you hesitating to make big plans?
- MT » Alle remmen los met een ijzersterke BHAG
- Margreeth van der Kooij » Visie of kernideologie