Classic BHAG Examples

By: Jessica WishartSun, Oct 27, 2013 @ 12:00 PM

I recently re-read the HBR article entitled "Building Your Company's Vision" by Jim Collins and Jerry Porras, and I was struck by the great examples they gave to illustrate different types of Big Hairy Audacious Goals (BHAGs).  If you are struggling to come up with a BHAG for the first time, these examples might help you get started.   These may also be helpful if you are working with your team to reset after accomplishing your 10-25 year visionary goal.  Don't let your team fall into the trap of complacency after reaching the mountaintop of one BHAG; celebrate your success, and then reset.  Having a long term, visionary goal that aligns your team and gets everyone excited is the only way your company will continue to grow with purpose, reaching peak after peak of success.

 

Rhythm Systems Big Hairy Audacious Goal

Here are the 4 Categories of BHAGs that Collins and Porras outline along with a couple of examples of each type: 

1. Target Oriented: This is probably the type of BHAG we see most commonly with our clients.  You can set quantitative (numerical) targets or qualitative targets that are a bit more subjective.  Be aware of pitfalls with this type of BHAG.  If you are setting a revenue target, be certain that it is one that thrills and excites your team.  Collins and Porras wrote that "The envisioned future should be so exciting in its own right that it would continue to keep the organization motivated even if the leaders who set the goal disappeared."  Would a revenue target really do this for your team?  With qualitative targets, make sure that you have some kind of measurement in place so that you know when you've achieved your goal.  Like NASA's BHAG of putting a man on the moon, you and your employees need to be able to recognize when you've accomplished the BHAG.  Here are a few examples of Target-Oriented BHAGs:

 - Become a $125 billion company by year 2000. (Wal-Mart, 1990)

 - Become the dominant player in commercial aircraft and bring the world into the jet age. (Boeing, 1950)

2. Competitive: These are what Collins and Porras call "Common-Enemy" BHAGs.  Think of this as the BHAG that brings your team together to beat a large competitor in your industry.  This David vs. Goliath mentality can be very motivating (everyone loves an underdog, right?).  This type of BHAG might be especially applicable if you are in an industry or a niche with a clear leader whose customers you are after.  Here are some examples of what this might look like:

 - Crush Adidas. (Nike, 1960s)

- Yamaha wo tsubusu! We will destroy Yamaha! (Honda, 1970s) 

3. Role Model: This category of BHAG is great for up-and-coming organizations that aspire to be like the great companies in their specific niche.  Instead of thinking of companies that you are in direct competition with (like in the Competitive BHAG), think about companies that are known to be great in the same ways that you want your company to be great.  Here are some examples:

- Become the Nike of the cycling industry. (Giro Sport Design, 1986)

- Become as respected in 20 years as Hewlett-Packard is today. (Watkins-Johnson, 1996)

4. Internal Transformation: Collins and Porras point out that this last category is best for larger, more established companies (think GE, Apple, etc.)  This category can be for a division within a very large company seeking to change the way it functions within that organization, or for the whole company to redefine itself.  Here are a few examples:

- Transform this company from a defense contractor into the best diversified high-technology company in the world. (Rockwell, 1995)

- Transform this company from a chemical manufacturer into one of the preeminent drug-making companies in the world. (Merck, 1930s)

I hope these examples and categories help get your creative juices flowing as you work on your own BHAG.  Do you have a great BHAG in one of the categories above to share?  Here at Rhythm Systems, we are always looking for patterns and better ways to help our clients work on their strategy, so if you have an example to add to the list above we’d love to hear it!

 

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Topics: Strategic Planning, BHAG


Jessica Wishart

Written by Jessica Wishart

Jessica is the Training & Innovation Expert at Rhythm Systems. She has experience in Client Services and Rhythm software technical support. Her background is in Community Counseling.