Big hairy audacious goal

…a collective of like spirit, joining in a burning desire.

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Manifesting your burning desire.

• intent at least two levels up

Therefore:

Collect everyone’s goals, desires, ideologies, soul profiles and forge a big, hairy, agressive goal. Pursue it.

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To process

• EEK » Be Intentional, but Hold It Lightly

Big Hairy Audacious Goals & Catalytic Mechanisms

BHAG—Big Hairy Audacious Goals

Big Hairy Agressive Goals

—Scott McNealy, Sun Microsystems

• 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

BHAG Origin

• 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.
• Stimulates:
  • Progress
  • Improvement
  • Innovation
  • Renewal

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”

BHAG Examples

• 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.
  • NASA

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:
  • WESTINGHOUSE:
    • Total Quality
    • Market Leadership
    • Technology Driven
    • Global
    • Focused Growth
    • Diversified

BHAG characteristics

• 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 Criteria

• 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

1. Target BHAG: goal-focused on a specific market segment.
2. Common Enemy BHAG: goal focused on “crushing” the competition.
3. Role-model BHAG: goal that uses another respectable organization as a role-model.
4. 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
• Non-bureaucratic
• 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.

Catalytic Mechanisms

• 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
• Produce:
  • New Knowledge
  • Better results
• Create a circle of:
  • Variation
  • Learning
  • Improvement
  • 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

Externe referenties

• 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