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B H A G[1]


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Published in: Business, Technology

B H A G[1]

  1. 1. Presentation on BHAG By: Pranav Doshi – PGDBA – 06 – 08 Sanjay Mirchandani – PGDBA – 06 – 033 Sonal Shah – PGDBA – 06 - 054
  2. 2. BHAG???? <ul><li>Pronounced as “ bee - hag ” </li></ul><ul><li>“ BIG, HAIRY, AUDACIOUS GOALS” </li></ul>
  3. 3. Overview of this lesson <ul><li>Origin of BHAG’s </li></ul><ul><li>Characteristics of BHAG’s </li></ul><ul><li>Why BHAG? </li></ul><ul><li>Effect on Company </li></ul><ul><li>Preserve the core & stimulate progress </li></ul><ul><li>Types of BHAG’s & Examples </li></ul><ul><li>Writing “BHAG” </li></ul><ul><li>Conclusion </li></ul>
  4. 4. <ul><li>BHAG's came out of Collins' classes at Stanford University in the late 1980s </li></ul><ul><li>Coined by James C. Collins and Jerry I. Porras, It's a concept popularized in the 1995 business bestseller Built to Last: Successful Habits of Visionary Companies . </li></ul>BHAG’S Origin
  5. 5. BHAG’s – (Bee-hags): <ul><li>BHAG is a goal, like going to the moon, not a statement---it has a clear finish line. Highly focused, tangible, and energizing </li></ul><ul><li>Long Term to Very Long Term </li></ul><ul><li>i.e., 10-30 years or more </li></ul><ul><li>Takes many smaller goals to be </li></ul><ul><li>accomplished before BHAG’s </li></ul><ul><li>are accomplished. Connects </li></ul><ul><li>with the core values </li></ul>
  6. 6. BHAG’s – (Bee-hags): <ul><li>Simple, easy, and to the point </li></ul><ul><li>BHAG’s only help an organization as long as it has not yet been achieved. Once attained, BHAG's must be replaced </li></ul><ul><li>Need a high level of commitment of the organization. It never occurs to them that they can’t do what they plan to do. </li></ul><ul><li>BHAG's must take people out of their normal comfort zone </li></ul>
  7. 7. WHY Bee-hag?? <ul><li>A Big Hairy Goal is one that really stretches you to think differently about how you do business. </li></ul><ul><li>It’s the goal that is going to help you transform your business, rather than being satisfied with incremental change. </li></ul><ul><li>It’s the goal that’s going to inspire you to do your best work and outshine your competition. </li></ul>
  8. 8. BHAG’s effects on a company <ul><li>The core values and mission preserve the purpose while BHAG’s stimulates progress. </li></ul><ul><li>Stimulates: </li></ul><ul><ul><li>Progress </li></ul></ul><ul><ul><li>Improvement </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Renewal </li></ul></ul>
  9. 9. Preserve the Core& Stimulate Progress Core BHAG(s) Values
  10. 10. Preserve the Core & Stimulate Progress <ul><li>Visionary companies formulate a core ideology / value that is based on two parts; to stimulate progress and preserve the core. </li></ul><ul><li>BHAG’s are developed to stimulate progress within the organization </li></ul>
  11. 11. Preserve the Core& Stimulate Progress CORE TO PRESERVE COMPANY BHAG’S TO STIMULATE PROGRESS Being on the leading edge of aviation; being pioneers; risk - taking Boeing Bet the pot on the B- 17, 707, 747 Seek superiority in all we undertake; Spend a lot of time making customers happy IBM Commit to $5 billion gamble on the 360; meet the emerging needs of our customers We are about cars--- especially cars for the average person Ford “ Democratize the automobile ”
  12. 12. Types of BHAG’s <ul><li>TARGET BHAG: goal focused on a specific market segment. </li></ul><ul><li>E.g.: </li></ul><ul><li>B ecome a $125 billion company in sales in 5 years. </li></ul><ul><li>- Wal-Mart: (1990) </li></ul><ul><li>T o reach 23 billion in sales in five years. </li></ul><ul><li>- Goodyear Tire & Rubber Co. </li></ul>
  13. 13. Types of BHAG’s <ul><li>COMMON ENEMY BHAG: goal focused on “crushing” the competition. </li></ul><ul><li>E.g.: </li></ul><ul><li>C rush Adidas </li></ul><ul><li>- Nike (1960) </li></ul><ul><li>W e will destroy Yamaha </li></ul><ul><li>- Honda (1970) </li></ul>
  14. 14. Types of BHAG’s <ul><li>ROLE-MODEL BHAG: goal that uses another respectable organization as a role-model. </li></ul><ul><li>E.g.: </li></ul><ul><li>B ecome the HARWARD of the west. - Stanford University,1940 </li></ul>
  15. 15. Types of BHAG’s <ul><li>INTERNAL TRANSFORMATION BHAG: goal to change or alter how the organization is perceived. </li></ul><ul><li>E.g.: </li></ul><ul><li>B ecome the company most known for changing the worldwide poor - quality image of Japanese products </li></ul><ul><li>- Sony (1950) </li></ul>
  16. 16. Writing a BHAG <ul><li>Big, but simple and understandable </li></ul><ul><li>There is no “right” or “wrong” goal. </li></ul><ul><li>It focuses on results vs. activity. </li></ul><ul><li>Highly focused, energizing and tangible. </li></ul><ul><li>“ Something to shoot for”--- </li></ul><ul><li>stimulates progress. </li></ul><ul><li>Challenges excites the people </li></ul><ul><li>of the organization because it is </li></ul><ul><li>something outsiders deem as foolish. </li></ul>
  17. 17. Writing a BHAG <ul><li>Make it something that people can remember from day to day </li></ul><ul><li>They don't require consultants, </li></ul><ul><li>training, management retreats </li></ul><ul><li>or costly new technology. </li></ul><ul><li>You can decide what your BHAG </li></ul><ul><li>ought to be by talking over </li></ul><ul><li>company goals with your managers and employees </li></ul>
  18. 18. Can we write ONE??
  19. 19. Conclusion <ul><li>&quot;BIG&quot; is not about the size of your organization, the number of employees or the thickness of your rules and regulations. </li></ul><ul><li>&quot;BIG&quot; is about the SCOPE OF YOUR VISION ... </li></ul><ul><li>It's the SIZE of your BHAG (your BIG HAIRY AUDACIOUS GOALS). </li></ul><ul><li>It's BUILDING CATHEDRALS. </li></ul><ul><li>It's stakeholders investing in your impact, your quantum leaps, your dreams. </li></ul>
  20. 20. Your ability to THINK BIG AND ACT ON IT is the only way to CHANGE THE WORLD!!!
  21. 21. THANK YOU..