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| Management Tools |
| The Big Hairy Audacious Goal (BHAG): Energize your business vision |
By now, you’ve probably heard of the BHAG (pronounced “bee-hag”). The concept became popular after the publication of the book Built to Last: Successful Habits of Visionary Companies ( HarperBusiness). A BHAG is a company goal, but not any ordinary company goal. A BHAG is so visionary, so extensive, so compelling, (even so risky), that even the people who make the goal don’t know if it’s really achievable.
The great thing about a BHAG is that it energizes a business—gives people something to really reach for. John F. Kennedy’s challenge to land on the moon is an example of a great BHAG.
As you meet with your management team to set your own company’s BHAG, keep the following “rules” in mind:
- A BHAG is a long-term goal. It should generally take from 10 to 30 years to achieve.
- It should be so clearly stated that everyone understands. (Can others re-phrase your goal in their own words?)
- It should be consistent with your company’s values and purpose.
- It should be something of a gamble, with a 50-70 percent probability of success.
Once you decide on your BHAG, be sure to share it with us. We’ll keep a copy on file with your other company records so that we can be aware of benefits and services to make achieving your goal a more certain process.
“I like the ones [BHAGs] that if you don’t achieve them, you die, because that stimulates creativity.” -Jim Collins, co-author of Built to Last.
Examples of the BHAG:
“To become the preeminent financial institution in the world.” -Citigroup
“To be the most profitable five-and-dime in Arkansas.” –Sam Walton, Wal-Mart
Source: Hendricks, Mark. “In the BHAG.” Entrepreneur.
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