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© 2008-2015 Rhythm Systems, Inc.
Rhythm®
1
Hedgehog & BHAGHedgehog & BHAG®
© 2008-2015 Rhythm Systems, Inc.
The first step in finding your
BHAG is to understand your
Hedgehog
© 2008-2015 Rhythm Systems, Inc.
The Hedgehog Concept
•Jim Collins calls this “doing one
thing and doing it well”
•Contras...
© 2008-2015 Rhythm Systems, Inc.
What you areWhat you are
deeplydeeply
PassionatePassionate
about?about?
What drivesWhat d...
© 2008-2015 Rhythm Systems, Inc.
What are you deeply
Passionate about?
Question #1
© 2008-2015 Rhythm Systems, Inc.
Core Purpose/
Passion
Your Organization's Reason for Being
Reflects people’s passion and
...
© 2008-2015 Rhythm Systems, Inc.
Help people get, stay,
and live well
Purpose/Passion Examples
Democratize air travel in
A...
© 2008-2015 Rhythm Systems, Inc.
Work on Your Core
Purpose
• Write down WHAT you do.
• Ask "WHY is that important"?
• Ask ...
© 2008-2015 Rhythm Systems, Inc.
What could you be
Best at in the World?
Question #2
© 2008-2015 Rhythm Systems, Inc.
What could you
be “Best At”?
• The question is what COULD you
be best at, not what ARE yo...
© 2008-2015 Rhythm Systems, Inc.
Convenient drug stores
“Best At” Examples
Low cost air travel
© 2008-2015 Rhythm Systems, Inc.
Work on Your Best At
• On a flipchart, write down what you
know you are good at. Brainsto...
© 2008-2015 Rhythm Systems, Inc.
What Drives Your
Economic Engine?
Question #3
© 2008-2015 Rhythm Systems, Inc.
Economic Engine or Profit/X
• Profit / x is the financial indicator
that has the greatest...
© 2008-2015 Rhythm Systems, Inc.
Profit / Customer Visit
Profit/X Examples
Profit / Plane
© 2008-2015 Rhythm Systems, Inc.
Work on Profit/X
Questions:
• What drives your economic
engine?
• How do you make money?
...
© 2008-2015 Rhythm Systems, Inc.
Your BHAG should connect to your Hedgehog
PurposePurpose//PassiPassi
onon
Profit/XProfit/...
© 2008-2015 Rhythm Systems, Inc.
Southwest Airlines Example
PurposePurpose//PassiPassi
onon
Democratize air
travel in Amer...
© 2008-2015 Rhythm Systems, Inc.
Work on your Big Hairy Audacious Goal
(BHAG)
What is your Mt. Everest?
© 2008-2015 Rhythm Systems, Inc.
BHAG Guidelines
•Your 10+ Year Visionary Goal. It
should help paint a picture of the futu...
© 2008-2015 Rhythm Systems, Inc.
BHAG for 1960s
America -
Put a Man on the
Moon & Return
Him Safely
JFK
ExampleExample
© 2008-2015 Rhythm Systems, Inc.
BHAG - Become
the
#1 Consumer
Brand on the
Planet
Starbucks
ExampleExample
© 2008-2015 Rhythm Systems, Inc.
Types of BHAGs
Target Oriented
Subway: - 32 Stores
Starbucks: #1 Consumer Brand
Competiti...
© 2008-2015 Rhythm Systems, Inc.
Pitfalls To Avoid
Financial Oriented ($1B in
sales)
Doesn’t guide business
decisions
What...
© 2008-2015 Rhythm Systems, Inc.
So, what’s your BHAG?
PurposePurpose//PassiPassi
onon
Profit/XProfit/X
Best in theBest in...
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Hedgehog & BHAG

  1. 1. © 2008-2015 Rhythm Systems, Inc. Rhythm® 1 Hedgehog & BHAGHedgehog & BHAG®
  2. 2. © 2008-2015 Rhythm Systems, Inc. The first step in finding your BHAG is to understand your Hedgehog
  3. 3. © 2008-2015 Rhythm Systems, Inc. The Hedgehog Concept •Jim Collins calls this “doing one thing and doing it well” •Contrasts the clever Fox who is constantly finding new ways to try to catch the Hedgehog •with the Hedgehog, who outsmarts the Fox by sticking to what it does best, rolling up in a thorny ball •You must understand and preserve the core of your business
  4. 4. © 2008-2015 Rhythm Systems, Inc. What you areWhat you are deeplydeeply PassionatePassionate about?about? What drivesWhat drives youryour EconomicEconomic EngineEngine What you canWhat you can BeBe Best in theBest in the WorldWorld atat Your Hedgehog lives at the intersection of these three circles:
  5. 5. © 2008-2015 Rhythm Systems, Inc. What are you deeply Passionate about? Question #1
  6. 6. © 2008-2015 Rhythm Systems, Inc. Core Purpose/ Passion Your Organization's Reason for Being Reflects people’s passion and idealistic motives for doing the company’s work Captures the soul of the organization
  7. 7. © 2008-2015 Rhythm Systems, Inc. Help people get, stay, and live well Purpose/Passion Examples Democratize air travel in America
  8. 8. © 2008-2015 Rhythm Systems, Inc. Work on Your Core Purpose • Write down WHAT you do. • Ask "WHY is that important"? • Ask the WHY question 5 times. • Review all the different answers with your team, searching for the answer that resonates most, generates some passion, and gets to the heart of your organization's Core Purpose.
  9. 9. © 2008-2015 Rhythm Systems, Inc. What could you be Best at in the World? Question #2
  10. 10. © 2008-2015 Rhythm Systems, Inc. What could you be “Best At”? • The question is what COULD you be best at, not what ARE you already best at. • What can you NOT be best at? • It could build on a competency you already have. • Or it could be something you’re not great at today.
  11. 11. © 2008-2015 Rhythm Systems, Inc. Convenient drug stores “Best At” Examples Low cost air travel
  12. 12. © 2008-2015 Rhythm Systems, Inc. Work on Your Best At • On a flipchart, write down what you know you are good at. Brainstorm ideas with your team. • Consider strengths, Core Competencies, and your Brand Promise if you have one. • Ask yourself if you could realistically become best in the world at this. • Discuss until it becomes clear. You may need to get into a Think Rhythm to continue working on ideas.
  13. 13. © 2008-2015 Rhythm Systems, Inc. What Drives Your Economic Engine? Question #3
  14. 14. © 2008-2015 Rhythm Systems, Inc. Economic Engine or Profit/X • Profit / x is the financial indicator that has the greatest impact on your economics • More of a strategic discussion than a KPI discussion • Choosing one metric over the other will cause you to make different strategic decisions in every aspect of the business
  15. 15. © 2008-2015 Rhythm Systems, Inc. Profit / Customer Visit Profit/X Examples Profit / Plane
  16. 16. © 2008-2015 Rhythm Systems, Inc. Work on Profit/X Questions: • What drives your economic engine? • How do you make money? • Is it about the customer? The product? The service? • What has the greatest impact on the bottom line?
  17. 17. © 2008-2015 Rhythm Systems, Inc. Your BHAG should connect to your Hedgehog PurposePurpose//PassiPassi onon Profit/XProfit/XBest in theBest in the WorldWorld BHAGBHAG ??????????
  18. 18. © 2008-2015 Rhythm Systems, Inc. Southwest Airlines Example PurposePurpose//PassiPassi onon Democratize air travel in America Profit/XProfit/X Profit/Plane Best in theBest in the WorldWorld Providing low cost air travel BHAGBHAG X # of airplanes in the airX # of airplanes in the air by X dateby X date
  19. 19. © 2008-2015 Rhythm Systems, Inc. Work on your Big Hairy Audacious Goal (BHAG) What is your Mt. Everest?
  20. 20. © 2008-2015 Rhythm Systems, Inc. BHAG Guidelines •Your 10+ Year Visionary Goal. It should help paint a picture of the future. •It reinforces the RIGHT Decisions because it’s connected to your Hedgehog Passion, Best At & Profit/X •It stretches us because it is Audacious: Bold, Daring, Fearless •It should Inspire us •It must be Measurable
  21. 21. © 2008-2015 Rhythm Systems, Inc. BHAG for 1960s America - Put a Man on the Moon & Return Him Safely JFK ExampleExample
  22. 22. © 2008-2015 Rhythm Systems, Inc. BHAG - Become the #1 Consumer Brand on the Planet Starbucks ExampleExample
  23. 23. © 2008-2015 Rhythm Systems, Inc. Types of BHAGs Target Oriented Subway: - 32 Stores Starbucks: #1 Consumer Brand Competitive Nike: Crush Adidas Role-Model Stanford University: Become the Harvard of the West
  24. 24. © 2008-2015 Rhythm Systems, Inc. Pitfalls To Avoid Financial Oriented ($1B in sales) Doesn’t guide business decisions What would you say NO to? Not Connected to the Heart! Must connect emotionally Must ignite Passion Too Complicated Make it simple to understand Make it measurable
  25. 25. © 2008-2015 Rhythm Systems, Inc. So, what’s your BHAG? PurposePurpose//PassiPassi onon Profit/XProfit/X Best in theBest in the WorldWorld BHAGBHAG ??????????
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    Mar. 4, 2017
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    Feb. 17, 2017
  • mittalvikas1

    Jul. 23, 2016

How to use your Hedgehog to get to your BHAG

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