Jim Collins co-authored, “Built to Last, Successful Habits of Visionary Companies.” It is a standard of business schools and management training. And make no mistake, it is a great book. But one concept, one of the main points of the book, is something I’ve got a beef with.
That is the concept of the BHAG. A BHAG is a Big, Hairy Audacious Goal. First of all, why would a serious business thought leader use a term like “Hairy?” Hairy was slang for large and unwieldy in the 1960s. I remember and I guess Jim Collins remembers too. But by 1970 the term was out of use. In fact, I checked the Urban Dictionary and while there are a couple of dozen definitions, none are for use of the term “hairy” in the manner Collins uses it. Now that I’ve got that off my chest, let’s move on to something of more substance.
A BHAG is a bold, visionary statement for an organization. A true BHAG is clear and compelling and serves as a unifying focus point for efforts to achieve the goal. There are lots of good examples and even more poor ones. President Kennedy’s goal to land a man on the moon by 1970 is a good example of a BHAG for the whole nation. A good BHAG is easily understood and engages people.
Microsoft had a great BHAG when they stated they wanted a computer on every desk and in every home. What is Microsoft’s BHAG now that the old one has been achieved? I don’t know and I don’t think they know. And I suspect that is part of their problem.
A good BHAG takes decades to achieve. I’ve only once worked for a company that had a true BHAG. That was Swerve Driver Training which had the goal to “Change the Way People Drive.” We did not expect to achieve that BHAG in our lifetimes but it was worthy.
Which brings me to my gripe with BHAGs. That is, they are irrelevant for almost all small businesses. A BHAG is meant (usually) to change the world. That is not realistic for a small business. A small business can and should set goals that are big (for them) and audacious, but they are not going to change the world.
In my experience, most small business owners could use my generic mission statement: Make Money, Have Fun. By make money, I mean make a good living or more to allow them to pay for the lifestyle they aspire to. And by have fun, I mean enjoy their work and the people they work with. And I should add, they want to use their business as a means to fund a comfortable and secure retirement when they choose to quit working.
There are a very few small businesses I know that are thinking about changing the world. For most, it isn’t even relevant to what they do and would never even come up in discussion. The concept of a BHAG makes for interesting reading, and sells books, but has, in my view, little to do with planning for small business owners.
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