354 ENTREPRENEURSHIP
is the organization’s most fundamental reason for existence. It goes beyond just making
money: It should be a perpetual guiding star on the horizon and should not be confused
with specific goals or business strategies. This is all better understood with an example.
The list below shows the core values (numbers 1-4) and core purpose (number 5) of the
Disney Company:- Fanatical attention to consistency/detail
- Fanatical control and preservation of Disney’s “magic” image
- Continuous progress via creativity, dreams, and imagination
- No cynicism allowed
- “To bring happiness to millions” and to celebrate, nurture, and promulgate
“wholesome American values”
Another example is from the Sony Corporation. Numbers 1–3 are the core values, and
number 4 is the core purpose: - Being a pioneer—not following others, but doing the impossible.
- Respecting and encouraging each individual’s ability and creativity.
- Elevating the Japanese culture and national status.
- “To experience the sheer joy that comes from the advancement, application, and in-
novation of technology that benefits the general public.”
The second aspect of the vision is the venture’s envisioned future. An envisioned fu-
ture can be defined by what an organization aspires “to become, to achieve, and to cre-
ate.” An organization must experience significant change and progress to attain its envi-
sioned future. This includes a 10- to 30-year “big hairy audacious goal,” orBHAG, and
a vivid description of what it will be like when the organization achieves the BHAG.
A BHAG (pronounced “bee-hag”) engages people. It reaches out and grabs them in
the gut. It is tangible, energizing, highly focused. People “get it” right away, so it takes
little or no explanation. It is a huge and daunting challenge. A BHAG always:- Is clear and compelling
- Serves as a unifying focal point of effort, and acts as a catalyst for team spirit
- Engages people
- Has a clear finish line
- Is tangible, energizing, and highly focused
For example, in 1990 Sam Walton set the goal for Wal-Mart to achieve sales of $125
billion by 2000. At the time the largest retailer in the world had sales of $30 billion. This
sales target was incredibly audacious, but it was also easy to measure and focused the
entire organization on a single future. How did they do? For fiscal year ending January
31, 2000, Wal-Mart reported net sales of $165,013,000,000, 32 percent better than
their ten-year BHAG goal and a 20 percent increase over the previous fiscal year. During
this time Sam Walton died, but the organization he created endured. Wal-Mart is built
to last.
A venture’s BHAG should be so bold and exciting that it will stimulate progress
even if the organization’s leaders disappear before it is achieved. It must be consistent