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Why you need a 3HAG to reach your Jim Collins BHAG

Framework shows why 3HAG beats wild-ass guesses

Firstly, what’s a BHAG?

Jim Collins and Jerry Porras famously coined the term Big Hairy Audacious Goal, known by the popular acronym BHAG, in their business classic Built to Last.

The BHAG was a long-term stretch goal, that was clear, compelling and engaging for all stakeholders.  

But, Shannon Byrne Susko, serial entrepreneur and author of 3HAG Way, says you need a 3HAG before a BHAG.

So, what’s a 3HAG?
It’s a framework describing a three year Highly Achievable Goal, developed when Shannon found her payment processing software company Paradata flagging, and investors’ confidence flagging with it.

“I co-founded Paradata in 1994 with a really good idea, a half-baked strategy, and what I called a wild-ass guess about where we were headed,” she writes in 3HAG way.

By 1997, all stakeholders had run out of patience, and Shannon says they were facing a do-or-die situation.

So, she created the early stage 3HAG, mapping out Paradata's strategy quarter over quarter, for 12 quarters, and aligning to their 10-30 year BHAG.

By 2006, Paradata had successfully achieved its goals, and the company was bought by a competitor. 

The framework comprises:
  • Foundation for Growth: Core Purpose, team core values, BHAG, and your profit/X.
  • One page strategic plan for 3HAG date (3 years from now)
  • Key process flow map (what products/services make the company money)
  • Market map: competitors, suppliers, partnerships, customers
  • Core customer (description, needs, drivers)
  • Attribution framework (how to serve customers to find market niche/space)
  • Activity fit maps (differentiating actions and company catchphrase )
  • Swimlanes (quarter by quarter goal setting – for 36 months!)
  • 36 month-over-month rolling forecast
  • Brand promise with guarantee
  • Confirm 3HAG
  • Secret sauce (kept secret from competitors)
 
Shannon Byrne Susko will describe how she saved her company, and created another from scratch, using the 3HAG way framework, at a livestream interview with The Growth Faculty on May 28 at 8.30 a.m. AEST.

To become a member of The Growth Faculty, and get access to exclusive interviews and event highlights featuring international speakers and authors, click here. Members receive the greatest discounts to live events hosted by The Growth Faculty.  First 14 days' trial are free. 

 

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