Auditing Your Strategy
Auditing might sound like a scary word to use this time of year, but don’t worry, we aren’t referring to taxes. As we continue our accountability check-in using the Four Decisions (People, Strategy, Execution, Cash), we’re going to spend some time focusing on Strategy.
Your organizational strategy is your playbook. It explains who you are, why you exist, and who your core customers are. But, you can’t start to write this playbook until you’ve nailed down your BHAG - Big Hairy Audacious Goal. You might already have one - a lot of organizations do. But, even if you have one, it’s always a good idea to check in on it once in a while. If you don’t have a BHAG yet, consider this your guide to start thinking about where you want your organization to be in 10-30 years.
Some leaders find it difficult to look this far into the future and this type of exercise can invite “blue sky” thinking. But, there is some structure you can apply to BHAGs according to “Built to Last: Successful Habits of Visionary Companies” by Jim Collins and Jerry Porras - the originators of the term.
TYPES OF BHAGS
Competitive
A famous example of this is Nike’s BHAG to “crush Adidas.” It clearly lays out what they want to do and can be measured by sales data, brand recognition, etc. It also does a great job of firing up and unifying employees across all levels of the organization. A common “enemy” can be a very powerful motivator.
Target
This is a more measured approach to developing a BHAG and can be as simple as “become a billion-dollar organization by 2035” or “feed 100,000 families a day by 2050.” Its strength is that it sets a measurable and tangible target for the future that can easily be referred back to by all levels of an organization.
Role Model
This is a more aspirational BHAG and relies on your organization having a company that you look up to. For example, a regional grocery chain centred around local, healthy and sustainable food products could set out to be “The Whole Foods of Canada Within 15 years.” Is there an organization in your industry that you look up to?
Internal Transformation
This type of BHAG is generally more common in large, well-established organizations. If you’ve already achieved your BHAG, don’t just pat yourself on the back. Well, do that, but then get to work determining your next BHAG. You could “become a certified B-Corp within 10 years” or “convert all feed in our dairy operation to sustainably produced, organic products by 2030.”
Although a BHAG is a concise, catchy statement, finding your BHAG is no easy feat. It can demand a lot of time and should involve the participation of different functions and levels of your organization. Be mindful of these common mistakes to avoid when creating or refining your Big Hairy Audacious Goal.
COMMON MISTAKES
Not Relevant
It needs to speak to all levels of the organization. A goal based entirely on revenue might not resonate with your R&D department. Or, front-line staff might not feel that they would directly benefit from your BHAG. It really needs to be a driver for your ENTIRE organization. When working on your BHAG, ask “how would the ____ department respond to this?”
Unattainable
If you’re a greenhouse grower and your goal is to “reduce time-to-market for shrubs from 30 days to 20 days” you’re setting yourself up to fail. A BHAG still needs to live within the realistic parameters of your organization or industry.
Hard to Remember
If your BHAG doesn’t stick in people’s minds, it’s probably too complicated, unactionable, or uninspiring. Remember, it needs to resonate and be adopted by all levels of your organization so avoid jargon or department-specific initiatives.
Not Setting Smaller Goals
Not that you’ve got your BHAG, don’t neglect your short-term and intermediate goals. What’s your three-year plan and does it get you closer to your BHAG? If you aren’t tying your short-term goals and your KPIs to your BHAG, you’ll never reach it.
Check-in on your BHAG this month. If you don’t have one yet, this should help you get started. Remember, BHAGs need to be big and bold. The hairy part comes during the process, but having a BHAG is necessary to rally everyone in your organization and drive towards shared success.