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BHAGBHAGBy:By:Pranav Doshi – PGDBA – 06 – 08Pranav Doshi – PGDBA – 06 – 08Sanjay Mirchandani – PGDBA – 06 – 033Sanjay Mirchandani – PGDBA – 06 – 033

Sonal Shah – PGDBA – 06 - 054Sonal Shah – PGDBA – 06 - 054

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BHAG????BHAG????

Pronounced as ““bee - hagbee - hag””

“BIG, HAIRY, AUDACIOUS GOALS”

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Overview of this Overview of this lessonlesson

Origin of BHAG’sOrigin of BHAG’sCharacteristics of BHAG’sCharacteristics of BHAG’sWhy BHAG?Why BHAG?Effect on CompanyEffect on CompanyPreserve the core & stimulate progressPreserve the core & stimulate progressTypes of BHAG’s & ExamplesTypes of BHAG’s & ExamplesWriting “BHAG”Writing “BHAG”ConclusionConclusion

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BHAG's came out of Collins' classes at Stanford University in the late 1980s

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.

BHAG’S OriginBHAG’S Origin

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BHAG’s – (Bee-hags):

BHAG is a goal, like going to the moon, not a statement---it has a clear finish line. Highly focused, tangible, and energizing

Long Term to Very Long Term i.e., 10-30 years or more

Takes many smaller goals to beaccomplished before BHAG’s are accomplished. Connects with the core values

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BHAG’s – (Bee-hags):

Simple, easy, and to the point

BHAG’s only help an organization as long as it has not yet been achieved. Once attained, BHAG's must be replaced

Need a high level of commitment of the organization. It never occurs to them that they can’t do what they plan to do.

BHAG's must take people out of their normal comfort zone

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WHY Bee-hag??

A Big Hairy Goal is one that really stretches you to think differently about how you do business.

It’s the goal that is going to help you transform your business, rather than being satisfied with incremental change.

It’s the goal that’s going to inspire you to do your best work and outshine your competition.

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BHAG’s effects on BHAG’s effects on a companya company

The core values and mission preserve the purpose while BHAG’s stimulates progress.

Stimulates: Progress Improvement Innovation Renewal

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CoreCore BHAG(s)BHAG(s) ValuesValues

Preserve the Core&Preserve the Core& Stimulate ProgressStimulate Progress

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Preserve the Core Preserve the Core & Stimulate & Stimulate

ProgressProgressVisionary companies formulate a core ideology / value that is based on two parts; to stimulate progress and preserve the core.

BHAG’s are developed to stimulate progress within the organization

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Preserve the Core& Preserve the Core& Stimulate ProgressStimulate Progress

CORE TO PRESERVE COMPANY BHAG’S TO STIMULATE PROGRESS

Being on the leadingedge 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”

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Types of BHAG’sTypes of BHAG’s

TARGET BHAG: goal focused on a specific market segment.E.g.: Become a $125 billion company in sales in 5 years.

- Wal-Mart: (1990)To reach 23 billion in sales in five years.

- Goodyear Tire & Rubber Co.

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Types of BHAG’sTypes of BHAG’s

COMMON ENEMY BHAG: goal focused on “crushing” the competition.E.g.: Crush Adidas

- Nike (1960)

We will destroy Yamaha- Honda (1970)

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Types of BHAG’sTypes of BHAG’s

ROLE-MODEL BHAG: goal that uses another respectable organization as a role-model.

E.g.: Become the HARWARD of the west.

- Stanford University,1940

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Types of BHAG’sTypes of BHAG’s

INTERNAL TRANSFORMATION BHAG: goal to change or alter how the organization is perceived.

E.g.:Become the company most known for changing the worldwide poor - quality image of Japanese products

- Sony (1950)

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Writing a BHAGWriting a BHAGBig, but simple and understandable

There is no “right” or “wrong” goal. It focuses on results vs. activity.

Highly focused, energizing and tangible.

“Something to shoot for”---stimulates progress.

Challenges excites the people of the organization because it is something outsiders deem as foolish.

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Writing a BHAGWriting a BHAG

Make it something that people can remember from day to day

They don't require consultants, training, management retreats

or costly new technology.

You can decide what your BHAG ought to be by talking over company goals with your managers and employees

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Can we write

ONE??

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Conclusion

"BIG" is not about the size of your organization, the number of employees or the thickness of your rules and regulations."BIG" is about the SCOPE OF YOUR VISION ... It's the SIZE of your BHAG (your BIG HAIRY AUDACIOUS GOALS).It's BUILDING CATHEDRALS.It's stakeholders investing in your impact, your quantum leaps, your dreams.

Your ability to THINK BIG

AND ACT ON IT is the only way to

CHANGE THE WORLD!!!

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THANK YOU..