We’ve been studying what makes a company go from good to great over the last seven weeks. Links to the previous posts on these topics are below for your review. Now it’s time to think about how your company can be built to last by setting your BHAG: Big Hairy Audacious Goal.
Good to Great Attributes
Here are the seven things that make a good to great company:
- Level 5 Leadership: Leaders with a paradoxical blend of humility and professional will.
- First Who…Then What: The principle of hiring the right people before setting the vision and strategy.
- Confront the Brutal Facts: The belief that through the difficult times you will prevail in the end so long as you have the discipline to confront reality.
- The Hedgehog Concept: The intersection of three circles comprising of what you can be the best in the world at, what you are deeply passionate about, and what makes enough money.
- A Culture of Discipline: A culture that combines disciplined people, thought, and action with an ethic of entrepreneurship.
- Technology Accelerators: The careful section and pioneering of technology to accelerate growth rather than to ignite a transformation.
- The Flywheel and the Doom Loop: The process of pursuing success in one direction, turn upon turn, building momentum until a point of breakthrough, and beyond.
Developing Your BHAG
This framework is essential to building a great company, but goal setting is key. To develop your BHAG you must consider your Hedgehog. Your BHAG will intersect what you can be the best in the world at, what you are deeply passionate about, and what makes enough money. Stay within those three circles, but be willing to change the specific manifestation of what’s inside them.
Enduring great companies preserve their core ideology. Their purpose and core values stand the test of time. However, in order for progress to be made, it must be stimulated by change. Changes that occur in cultural and operating practices and changes that occur in goals and strategies. Create BHAGs that are consistent with the Good to Great framework and you’ll be on your way toward greatness.
What’s your BHAG?