Built to Last: Successful Habits of Visionary Companies

Visionary companies propel progress through daring objectives known as BHAGs (Big Hairy Audacious Goals), as articulated by Collins and Porras (93). While all companies set goals, BHAGs distinguish themselves by their daunting, challenging, and seemingly impossible nature. These audacious goals motivate employees, fostering a sense of purpose that propels the company forward. Crucially, BHAGs must align with a company’s core ideology to yield a positive impact. Collins and Porras illustrate this concept with the case of Philip Morris, which in 1961 set a BHAG to dominate the tobacco industry, rising from 6th to 1st place in profitability over the next decade. However, the authors caution that companies should carefully consider subsequent BHAGs before completing the first, as these goals lose their motivational force once achieved.

However, setting a BHAG does not guarantee progress; unwavering commitment from all company levels is essential. The Walt Disney Company exemplifies this, consistently setting and surpassing seemingly unattainable goals, from creating a feature-length animated film to building an amusement park. In contrast, Columbia Pictures, driven solely by profit without aspirational goals, has faced a troubled history of scandals and internal conflicts.