bhag for rhythm university
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Copyright © 2016 Rhythm Systems, Inc. rhythmsystems.comRhythm® University
BHAG ®
Registered Trademark Of Jim Collins & Jerry Porras
Copyright © 2016 Rhythm Systems, Inc. rhythmsystems.comRhythm® University
BHAG OVERVIEW
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WHAT IS A BHAG?
•Your Big Hairy Audacious Goal
•Term coined by Jim Collins in his book Good to Great
•10+ year visionary goal
•Should be daunting
•Needs clear finish line
•Part of your Envisioned Future
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WHY DO WE NEED A BHAG?
To STRETCH us• Stretch creates energy• Necessity is the mother of invention• We should not know today how we will reach our BHAG
To GUIDE us
• Help us decide what to say YES to and what to say NO to
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WHAT TO SAY YES TO & WHAT TO SAY NO TO
• Great companies stay on the path by saying “No.”
• A good BHAG will provide focus and alignment to your organization. It will enable innovation and success in a way that is not possible otherwise.
L e t Yo u r B H A G D e c i d e
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WORK ON YOUR HEDGEHOG
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THE FIRST STEP IN F INDING YOUR BHAG IS
T O U N D E R S TA N D Y O U R H E D G E H O G
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THE HEDGEHOG CONCEPT
•Jim Collins calls this “doing one thing and doing it well”
•Contrasts the clever Fox who is constantly finding new ways to try to catch the Hedgehog
•with the Hedgehog, who outsmarts the Fox by sticking to what it does best, rolling up in a thorny ball
•You must understand and preserve the core of your business
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What you are deeply Passionate about?
What drives your Economic Engine?
What you can be Best in the World at?
YOUR HEDGEHOG L IVES AT THE INTERSECTION OF THESE THREE CIRCLES:
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QUESTION #1
W H AT A R E Y O U D E E P LY PASSIONATE ABOUT?
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CORE PURPOSE
• Your Organization's Reason for Being
• Reflects people’s passion and idealistic motives for doing the company’s work
• Captures the soul of the organization
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PURPOSE/PASSION EXAMPLES
Democratize air travel in America
Help people get, stay, and live well
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WORK ON YOUR CORE PURPOSE
• Write down WHAT you do. • Ask "WHY is that
important"? • Ask the WHY question 5
times.• Review all the different
answers with your team, searching for the answer that resonates most, generates some passion, and gets to the heart of your organization's Core Purpose.
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QUESTION #2
W H AT C O U L D Y O U B E B E S T I N T H E W O R L D ?
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WHAT COULD YOU BE “BEST AT”?
• The question is what COULD you be best at, not what ARE you already best at.
• What can you NOT be best at?
• It could build on a competency you already have.
• Or it could be something you’re not great at today
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“BEST AT” EXAMPLES
Low cost air travelConvenient drug stores
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WORK ON YOUR BEST AT
• On a flipchart, write down what you know you are good at. Brainstorm ideas with your team.
• Consider strengths, Core Competencies, and your Brand Promise if you have one.
• Ask yourself if you could realistically become best in the world at this.
• Discuss until it becomes clear. You may need to get into a Think Rhythm to continue working on ideas.
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QUESTION #3
W H AT D R I V E S Y O U R E C O N O M I C E N G I N E ?
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ECONOMIC ENGINE OR PROFIT/X
• Profit / x is the financial indicator that has the greatest impact on your economics
• More of a strategic discussion than a KPI discussion
• Choosing one metric over the other will cause you to make different strategic decisions in every aspect of the business
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PROFIT/X EXAMPLES
Profit / PlaneProfit / Customer Visit
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QUESTIONS
• What drives your economic engine?
• How do you make money?
• Is it about the customer? The product? The service?
• What has the greatest impact on the bottom line?
W O R K O N P R O F I T / X
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Purpose/Passion
Profit/XBest in the World
WHAT’S YOUR HEDGEHOG?
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Purpose/Passion
Profit/XBest in the World
YOUR BHAG CONNECTS TO YOUR HEDGEHOG
BHAG ?????
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Purpose/Passion: Democratize air travel in America
Profit/X: Profit/Plane
Best in the World:Providing low cost air travel
SOUTHWEST AIRLINES EXAMPLE
BHAG X # of airplanes in the air by X date
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WORK ON YOUR BHAG
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WORK ON YOUR BIG HAIRY AUDACIOUS GOAL
W h a t i s y o u r M t . E v e r e s t ?
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BHAG GUIDELINES
•Your 10+ Year Visionary Goal. It should help paint a picture of the future.
•It reinforces the RIGHT Decisions because it ’s connected to your Hedgehog
Passion, Best At & Profit/X
•It stretches us because it is Audacious:
Bold, Daring, Fearless
•It should Inspire us
•It must be Measurable
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BHAG for 1960s America - Put a Man on the Moon & Return Him Safely
B H A G E X A M P L E
JOHN F. KENNEDY
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STARBUCKS
BHAG - Become the #1 Consumer Brand on the Planet
B H A G E X A M P L E
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TYPES OF BHAGS
Target OrientedSubway: - 32 StoresStarbucks: #1 Consumer Brand
CompetitiveNike: Crush Adidas
Role-ModelStanford University: Become the Harvard of the West
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PITFALLS TO AVOID
Financial Oriented ($1B in sales)
Doesn’t guide business decisionsWhat would you say NO to?
Not Connected to the Heart!Must connect emotionallyMust ignite Passion
Too ComplicatedMake it simple to understandMake it measurable
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Purpose/Passion
Profit/XBest in the World
SO, WHAT’S YOUR BHAG?
BHAG ?????
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DOES YOUR BHAG PASS THE TEST?
Do you find this BHAG exciting?
Is the BHAG clear, compelling, and easy to grasp?
Does this BHAG somehow connect to the core purpose?
Will this BHAG be exciting to a broad base of people in the organization, not just those with executive responsibility?
Is it undeniably a Big Hairy Audacious Goal, not a verbose, hard to understand, convoluted, impossible to remember mission or vision “statement”?
Do you believe the organization has less than 100% chance of achieving the BHAG yet at the same time believe the organization can achieve the BHAG if fully committed?
Will achieving the BHAG require a quantum step in the capabilities and characteristics of the organization?
In 25 years, would you be able to tell if you have achieved the BHAG?
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BHAG NEXT STEPS
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BRING YOUR BHAG TO L IFE
1. Te l l t h e s t o r y o f y o u r B H A G s o y o u r t e a m c o n n e c t s w i t h i t e m o t i o n a l l y.
2. K e e p i t t o p o f m i n d f o r y o u r t e a m . F i n d w a y s t o p r e s e n t i t v i s u a l l y a n d f r e q u e n t l y.
3. C o n n e c t s t r a t e g y a n d e v e r y d a y e x e c u t i o n . R e v i e w y o u r B H A G e a c h t i m e y o u w o r k o n A n n u a l o r Q u a r t e r l y P l a n n i n g .
4. E v a l u a t e o p p o r t u n i t i e s w i t h y o u r B H A G ( u s e i t t o d e c i d e w h a t t o s a y y e s a n d n o t o ) .
5. Ta p t h e c r e a t i v e g e n i u s o f y o u r t e a m t o h e l p y o u f i g u r e o u t h o w t o r e a c h y o u r g o a l b y t h e d u e d a t e .
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ASSESS HOW YOU ARE USING YOUR BHAG TODAY
Red-Yellow-Green Your BHAGYour BHAG motivates people inside and outside of your company.Even your clients are excited about your BHAG.You are measuring progress towards a clear and specific destination and your team has a sense that you’re moving forward.You can see how the BHAG is being used to guide decisions.You have defined a BHAG, but not yet using it to guide decisions.Your BHAG isn’t big or hairy enough, or it doesn’t have a 10-25 year time horizon.Your BHAG isn’t being measured.Your BHAG has not been defined.