BHAGs (pronounced bee-hags) are Big Hairy Audacious Goals, a term coined by Collins and Porras of ‘Built to Last’ fame. They are defined as 10-to-30-year goals to progress towards an envisioned future (excuse the management guru speak).
In this issue, we report Tesco declaring its aim to be carbon zero by 2050, Nestlé saying 100% of palm oil will be sustainably sourced by 2015 and Tetra Pak pledging 75% of packs will be sourced from FSC-certified wood by next year.
These are only the latest instances and this isn’t exactly new. Five years ago HSBC set the goal to be carbon neutral in own operations, and achieved it a year later, the first bank to do so. Back in the 1990s, Unilever set a 10 year target to source all its fish sustainably, without knowing how or even if that was achievable. In fact, it only got half way to the target before restructuring meant disposal of that part of the business. But the commitment to a BHAG led to a partnership with WWF, setting up the Marine Stewardship Council and changed expectations in the whole industry – and arguably has underpinned Unilever’s reputation as leader, notwithstanding the apparent failure.
To work in this way, BHAGs need to be clear and compelling; they need to act as a focal point and catalyst for action. The alternative is the cautious, business-as-usual approach – positive but vague commitments, only short-term targets, usually within sight of achievement even before being announced.
That is safe, certainly less risky, and (some will say) more manageable in PR terms. However, we believe the reputation prize will go to those who define BHAGs and determinedly set out on the journey. In fact we’re likely to see something of an arms race in this area, with companies striving for bigger, more hairy and wildly ambitious goals. The tensions this creates will generate the energy needed to speed up the pace of progress
All the news coming out of Copenhagen is that governments will fall short of what’s needed. Over to companies to set the pace.
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