BHAG and Business Planning
I’ve been feeling a bit uninspired to write, but that’s probably since I have been writing business plans. So some thoughts on business plans.
Several years ago, I worked with a friend on mine, Herb, on some strategic planning. He is the ultimate in organization and thinking through goals to action. What I really appreciated was BHAG. Not an acronym I was used to, but very relevant. BHAG stands for - Big Hairy Audacious Goal. It is defined by Jim Collins and Jim Porras (Of Built to Last fame) as:
“A BHAG engages people – it reaches out and grabs them in the gut. It is tangible, energizing, highly focused. People ‘get it’ right away; it takes little or no explanation.”
It seems when we come together as business people we can have lofty goals, superfluous statements that do not translate into actionable weekly data. Getting a BHAG defined, helps organizations give voice to the dream. At the same time, while it creates focus, it enables the organization to define was is needed and attainable in the next 6, 12, 18 and 24 months.
Longer term and annual goals can be defined, followed by strategies and actions. Once this is done, the BHAG is the back drop to say ‘ does this get us to where we want to be in the next 5 to 10 years.’ We may get their faster just having it out their. Then again, the basics are in place as well.
Ok, that’s all I got.
Thanks Herb….
October 16th, 2009 at 8:52 am
HI Camberley,
Thanks for the nice words and I’m glad the BHAG concept stuck.
I’ve had the pleasure of being involved with strategic planning for many organizations over the last several years. As you rightly say, it’s about focus and making choices. I believe in the concept that strategy is not about what to do, but more about what not to do.
It’s impossible to have something inspiring if it’s too generic or two “ho hum.” Building a BHAG isn’t easy. It often takes 6+ discussion with a team or the founder to get it right.
One more thing: this really is about leadership. I believe the best definition for leadership is: inspire and motivate. If you want to be a leader you have to followers. This means answering the question (for them) “what’s in it for me.” And that, brings you back to inspiration and motivation. And that, is where the BHAG becomes one of the leader’s most useful tools.
This isn’t limited to personal leadership. It’s also about market leadership. If you want to be a market leader you can’t go it alone. You need your partners to help, and getting them to support you once again comes back to the BHAG.
You know me - I could write forever on the topic. I’m really glad you’re pushing this with your clients. Everyone should keep in mind that BHAGs require a lot of work and continuous evaluation. Once it’s right, it will pop, and people will get behind it.