Because if you have a BHAG® that’s working well, it will make strategic decision-making so much easier. bhag examples This circle represents your core competencies and capabilities. What are the activities that you excel at and make you the best? This requires a deep understanding of your strengths, resources, skills, and unique advantages. The goal here is to pinpoint the areas where you can outperform your competitors.
If you haven’t reviewed it with your team recently, you should add it to your weekly meeting agenda. The long term goal that you describe in your BHAG must center around your hedgehog concept, that which you can become the best in the world at and is aligned with your core values and mission statement. Like the moon mission, a true BHAG is clear and compelling and serves as a unifying focal point of effort—often creating immense team spirit.
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If you’re Boeing’s management, you defy the odds and commit to the audacious goal of establishing yourself as a major player in the commercial aircraft industry. The next circle is what you can be the best at in the world. This may be something you could be better at today, but it is something you believe you have the potential to become the best at. This may come from a core competency or something else that can set you apart in your market. The first circle comprises what you and your company are passionate about.
Here are 4 components of a great personal BHAG:
- A strategic plan is a tool to define where your organization is going in the next three to five years.
- It may seem almost impossible to achieve, yet it’s a compelling goal that helps create momentum and shared commitment among teams.
- Writing a mission statement is one of the most important things you can do for your company.
- A BHAG (Big Hairy Audacious Goal) is a huge, seemingly impossible objective that can inspire outsiders and stakeholders alike.
In our article about the Six Questions to Create Clarity, your BHAG should be part of “Where are we going? It needs to be over-communicated and ritualized, so your leaders think bigger and your teams see the impact they’re making day after day. You have to come up with BHAGs that are in line with the core values of your company. First, you have to feel the excitement towards the goal, then your employees should feel it. Otherwise, it would just be an interesting idea that has no correspondence amongst your employees. Some know him as a bold and visionary person, some people know him as the Dogecoin guy.
Why A BHAG Is Critical For Your Business
The current goal of the company is to “revolutionize space technology, with the ultimate goal of enabling people to live on other planets” – another Target Oriented BHAG. Thus, you can see the first reason why you should use BHAGs. It helps your company’s growth to reach the desired level. For example, your BHAG can target your company’s worth to become $1 million. The latter, on the other hand, is about a qualitative measure.
- Founder and CEO of RedBalloon, Naomi Simson reasoned that to truly change gift-giving in Australia forever, RedBalloon needed to touch the lives of 10% of Australians.
- With a clear vision and the proper support, they can be accomplished.
- What matters is that it serves as a source of inspiration and provides guidance in the organization’s efforts.
- Learn to enable high-performing teams using OKR performance management.
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For example, Netflix has transformed from mailing DVDs to becoming the world’s most successful online streaming service. Say no to corporate mumbo jumbo or long statements that are impossible to remember. You may even need to revisit your mission statement and company values to help keep you focused and inspired.
Well-crafted, target-oriented BHAGs can give the organization a unified purpose to drive its efforts forward. Your company’s BHAG should be big enough to inspire the entire team and encompass the organization’s mission. In order to understand big hairy audacious goals, you need to understand what is referred to as the Hedgehog Concept. Simply put, a BHAG is a long-term goal that changes the very nature of your business’s existence. The goal needs to be one that is designed to be long-term yet create an urgency to get it done.
For example, Nike’s initial goal in the ‘60s about crushing Adidas was a strong competitive BHAG. Profit/X—Understanding the percent gross profit on each new product will help determine whether to proceed with it or enter a new market space. This is the guiding economic indicator we want when making these growth decisions.
They have been working up the collar so as to achieve their goals. So far, they are the first private company to successfully reach the International Space Station and invent the first-ever reusable rocket. Going back to my client’s earlier example, the academy trust, whose new big hairy audacious goals revolve around innovation in education. Their financial driver is the number of pupils, and they want to attract more schools to join their Trust. They have a limited budget and measure themselves on the value-add their schools deliver to their pupils. They realised that the way forward wasn’t to keep doing what they’d done before but to innovate – to do more with less.
My favourite is the BHAG® – short for Big, Hairy, Audacious Goal. A BHAG (Big Hairy Audacious Goal) is a huge, seemingly impossible objective that can inspire outsiders and stakeholders alike. The concept of the BHAG (pronounced bee-hag) is explored in Jim Collins’s Built to Last.
You can’t stick to a super complicated goal for years, but if it is simple like «we will go to the moon» or «we will put a computer on every home», it will stick with you and the rest of the world. As of now, you are one big hairy audacious goal away from being the next Bill Gates, Jeff Bezos, or Elon Musk. In 2006 at a press conference, Bill Gates reflected on the founding of Microsoft, the third most valuable company in the world. He pointed out that he and his friend Paul Allen set a goal unlike any.
Engaging Your Team
A good BHAG aims to stimulate the forward progress of your organization by creating a transformative vision with long-term strategic planning. This is unlike other goals that may be specific, measurable, practically relevant, and may involve a time frame. Big hairy audacious goals can be divided into categories that help others within your organization better understand what the BHAG represents.
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