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Writer's pictureDardu Vamvu

Analyzing ACompany BHAG


BHAG can best be described as a highly risky goal, aligned with the Company ideals, leveraged against seemingly insurmountable obstacles, as demonstrated by the unusual goals that supersede the normal progress, and results in most noble and nimble achievement. BHAG is “highly focused, tangible, energizing” (Collins, & Porras, 1996). Boeing’s BHAG is “to become the dominant player in commercial aircraft, and bring the World into the Jet Age” published under “Core Values as a Major Tenet” (Collins, & Porras, 1996, p.77). Core purposes are the very nature of Company’s right to remain a business entity, however they are not goals, the very purpose of BHAG existence, who are high goals, pioneering efforts progressing to the Apex. One to three decades are considered an expected time frame of successful completion of BHAG overarching goals.



 

BHAG fresh and anew for Boeing, is made available by www.Leehamnews.com, that boldly states Boeing reinvents the flight again, with a projected growth of 50 USD billion BHAG realizable in a decade. I believe this is a type of target BHAG, based on internal transformation BHAG (Collins, & Porras, 1996, p 73). More specifically, Boeing will consolidate civil, space and military contracts under one roof, headquartered in Plano, Texas. Global Service and Support wing of Boeing, has already been awarded 10 USD billion contracts, in the logistics, maintenance, upgrades, training, and government services, toward meeting BHAG goals (Leehamnews, accessed September 20, 2023).


 

As the most successful Government Contractor, Boeing’s competitive advantage is substantiated by a solid relationship in the area of commercial and defense awarded contracts, placing Boeing in the most coveted spot. In addition, Boeing has an incredible to a remarkable history of flight in human history.. Boeing is also present at Global level in a commanding position, and has diversified in commercial, defense, and aerospace industries. Boeing’s credibility with Global Partners has been a story of exceptional progress, human courage, technical innovation unique to Boeing, and admiration for its engineering and unsurpassed technology, making its planes most sought after in Quatar, European Countries, Asia, Africa, and other parts of the Globe.



 

As stated by Leehamnews, Boeing BHAG is overly ambition with little chance of reaching 50 USDBillion in a decade for several reasons. In the aircraft leasing, Boeing has seen new entrants in the market, generating heated competition. Many suppliers have other contracts and responsibilities, under the umbrella of four Big Aeroengine Companies that have a top-down relationships with these critically needed suppliers. Culture expectations differ across the Globe and are at odds with Boeing shareholders’ expectations. BHAG for Boeing is projected at 30 USD Billions, short of coveted 50 USD Billions.




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