| There are some wonderful acronyms applied to goal | | | | For example -o Reduce the purchase priceo Eliminate |
| setting. Here is one. It's the BHAG - the Big Hairy | | | | all sources of waste in the supply chaino Re-design |
| Audacious Goal! A BHAG is one that really stretches | | | | the product or serviceo Innovate a new way to |
| you to think differently about your value chains. It's | | | | deliver the service and sell this to other organisations |
| the goal that's going to help you transform the way | | | | (in other words, change a cost into a revenue |
| you work with suppliers, rather than being satisfied | | | | generator)o Find a way of leasing the product or |
| with incremental change. | | | | service rather than buy it. |
| So, the question is how to set SRM goals that fit into | | | | Step 2: Make a list of obstacles and ways of getting |
| the BHAG category? This article shows you how. | | | | around them.o Don't have any ideas for re-designing |
| The first step is to shake off any beliefs about what | | | | the service? Get some users together and have a |
| is possible in your value chains. If you already have a | | | | brainstorming session.o Don't know how to innovate? |
| mindset that limits your achievements you'll never get | | | | Identify people who have this reputation and hire |
| serious about a BHAG. | | | | them in as a freelance.o Suppliers won't lease the |
| Next, pose some Very Hairy Challenges - like these:-o | | | | product? Take the idea to a leasing company and |
| I want to halve my costs in the next 12 monthso I | | | | see if they will do a deal.o There's nothing that can't |
| want my supply chain to deliver the highest quality | | | | be overcome if you are really committed. |
| product or service in the UKo I want to reduce the | | | | Step 3: Identify what needs to happen for you to be |
| delivery time for my purchased products from 2 | | | | successful. |
| weeks to one day. | | | | For example:-o Surround yourself with creative |
| Now you have to work backwards from this end | | | | peopleo Build your knowledge in certain areaso Set |
| point in 3 steps. Let's take the "halve your costs" | | | | monthly Little Hairy Audacious Goals that progress |
| example. | | | | you towards your milestoneso Get the support you |
| Step 1: Brainstorm ideas (or use the techniques | | | | need. |
| explained in the next module) for reducing costs. No | | | | Imagine how your CEO would react if you get so |
| limits remember - everything is possible. | | | | much as half way to your BHAG! |