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Wednesday, March 17, 2021

7 Strata of Strategy - economic engine and big hairy audacious goal

 What is your profit and your 10-25 year goal?


In Jim Collins book, Good to Great, there were noted distinctives that companies had in their processes for making decisions - two in fact. Maintain faith in prevailing to the end, but at the same time have the discipline to confront the most brutal facts of current reality. Secondly, used a simple, yet deeply insightful frame of reference for all decisions based on the understanding of three things. Understanding of what the company can be best in the world at - a determination of the primary economic factor that drives the economic engine - and what it is that the company is deeply passionate about. These things are not goals, but the basic strategic understandings on which the company operates. 

BHAG - pronounced bee-hag - means Big Hairy Audacious Goal and it is a kind of vision statement that resembles a statement of strategic intent. It is a long term objective. Sony had a 25 year goal in the 1950's - "Become the company most known for changing the worldwide image of Japanese products as being of poor quality." It serves as a unifying focal point of effort, galvanizing people and creating team spirit. 

Vision can be defined by core values, purpose and an audacious goal. Core values - "if you could unite your company around a system of core values that everyone actually believed in and goals that were wildly ambitious (BHAG), you could achieve great success." - Porras





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