3HAG WAY

The Strategic Execution System that ensures your strategy is not a Wild-Ass-Guess!

by Shannon Byrne Susko • 2018 • 190 pages

4.04

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Business Leadership

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Key Takeaways

1. Define Your 3 Year Highly Achievable Goal (3HAG) to Drive Growth

The 3HAG framework became our guide. It was the tool we used to help us define our unique and valuable market position.

The 3HAG concept is a strategic planning tool that bridges the gap between short-term goals and long-term vision. It provides a clear, actionable roadmap for the next three years, aligning daily actions with the company's ultimate objectives.

Key components of a 3HAG:

Fiscal measures (e.g., revenue, profit, cash)
Key performance indicators (e.g., number of customers, product launches)
Qualitative goals (e.g., market position, brand recognition)

By focusing on a three-year horizon, companies can create goals that are both ambitious and achievable, fostering team confidence and driving strategic execution. The 3HAG approach encourages regular review and adjustment, ensuring that the strategy remains relevant and responsive to market changes.

2. Establish Your Foundation for Growth: Core Purpose, Values, and BHAG

Foundation for Growth is the key to being able to decide on your 3HAG and execute it.

A solid foundation is crucial for sustainable growth and effective strategy execution. This foundation consists of three key elements:

Core Purpose: The fundamental reason for the company's existence
Core Values: The guiding principles that shape company culture and decision-making
Big Hairy Audacious Goal (BHAG): A 10-30 year visionary goal that inspires and drives the organization

These elements provide a stable framework for developing and executing the 3HAG. They ensure that short-term actions align with long-term vision and company values, creating a cohesive and motivated team. Regular review and reinforcement of these foundational elements help maintain focus and drive strategic decisions throughout the organization.

3. Map Your Market and Internal Processes to Gain Strategic Clarity

The Market Map shows how you go to market (how you're making money) on the left side, while the right side will show your supply chain (where you're spending money).

Strategic mapping tools provide invaluable insights into both external market dynamics and internal operational processes. Two key tools:

Market Map: Visualizes the company's position in the market ecosystem
Key Process Flow Map (KPFM): Outlines critical internal processes

These visual tools foster team alignment, highlight strategic opportunities, and identify potential risks. Regular review and updating of these maps ensure that the company's strategy remains responsive to both internal capabilities and external market forces.

4. Identify Your Core Customer and Unique Value Proposition

Knowing your Core Customer, right down to the individual, is not about marketing, per se. It's about strategy.

Core Customer identification is a critical strategic exercise that goes beyond traditional market segmentation. It involves creating a detailed profile of the individual person who will generate optimal profit for your company.

Steps to identify your Core Customer:

Analyze current customer base for profitability and growth potential
Create a detailed persona, including demographics, psychographics, and behaviors
Understand their key needs, pain points, and decision-making process

Once identified, the Core Customer becomes the focal point for strategic decisions, product development, and resource allocation. This laser focus on serving the needs of the most valuable customers drives profitability and sustainable growth.

5. Develop 3-5 Differentiating Actions to Create a Unique Market Position

Strategy is how a company creates a unique and valuable position through a set of differentiating actions.

Differentiating actions are the key activities that set a company apart from its competitors and create unique value for its Core Customer. These actions should be:

Interdependent: Reinforcing each other to create a strong competitive advantage
Aligned with Core Customer needs: Addressing key pain points or desires
Difficult to replicate: Creating barriers to entry for competitors

Tools for identifying differentiating actions:

Attribution Framework: Map market attributes and competitor positioning
Activity Fit Map: Visualize how key activities reinforce each other

By focusing on 3-5 key differentiating actions, companies can create a unique and valuable market position that is difficult for competitors to replicate. This strategic focus drives resource allocation and decision-making throughout the organization.

6. Create Swimlanes to Map Your 12-Quarter Plan

The purpose of the 3HAG framework is not only to get you to define a unique and differentiated position for your company but also to foster the confidence that goes along with such a rock-solid plan.

Swimlanes provide a visual roadmap for executing the 3HAG over 12 quarters. This tool breaks down high-level goals into actionable milestones and helps teams:

Align activities across departments
Identify dependencies and potential bottlenecks
Track progress and make necessary adjustments

Key components of Swimlanes:

3-5 horizontal lanes, each representing a key differentiating action
12 vertical columns, one for each quarter
Milestones and key activities plotted in each cell

Regular review and updating of Swimlanes during team meetings ensure that everyone remains focused on executing the 3HAG and can quickly respond to changes in the market or internal capabilities.

7. Implement a 36-Month Rolling Forecast for Financial Clarity

Your 36 Month, month-over-month Rolling Forecast is a leadership team tool—not a finance team tool. DO NOT pass this on to your CFO and forget about it.

The Rolling Forecast replaces traditional budgeting with a dynamic, forward-looking financial planning tool. Key features:

36-month horizon, updated monthly
Includes revenue, expenses, profit, and cash projections
Aligns with Swimlanes and strategic milestones

Benefits of the Rolling Forecast:

Increased financial agility and responsiveness to market changes
Better alignment between financial resources and strategic priorities
Improved decision-making through regular review and adjustment

The Rolling Forecast should be a collaborative effort involving the entire leadership team, not just finance. Regular review and discussion of the forecast foster strategic thinking and ensure that financial decisions support the execution of the 3HAG.

8. Craft a Brand Promise with Guarantee and Discover Your Secret Sauce

A unique brand promise addresses what you and your team believe is the greatest need your customers have and assures those customers that you can solve that problem better than any of your competitors.

Brand Promise with Guarantee is a powerful tool for differentiating your company and building customer trust. It should:

Address a critical customer need
Be unique in the market
Include a meaningful guarantee or "hurt" if not delivered

The Secret Sauce is the company's unique solution to an industry problem that competitors can't or won't solve. It provides a tenfold advantage in the marketplace.

Both the Brand Promise and Secret Sauce should:

Align with the Core Customer's needs
Reinforce the company's differentiating actions
Be continually evolved to maintain competitive advantage

Regular review and refinement of these elements ensure that the company maintains its unique market position and continues to deliver superior value to its Core Customers.

9. Evolve Your Strategy Through Regular Team Meetings and Visual Tools

Strategy is not static, so the pictures are not, either.

Regular strategy meetings and visual tools are crucial for keeping the 3HAG framework alive and relevant. Key elements:

Meeting Rhythm:
Strategic Pictures:

By maintaining a consistent meeting rhythm and using visual tools, teams can stay aligned on strategic priorities, quickly identify and respond to changes, and maintain momentum towards achieving the 3HAG and long-term vision.

Last updated: April 22, 2025

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FAQ

What's "3HAG WAY" about?

Strategic Execution System:"3HAG WAY" by Shannon Byrne Susko introduces a strategic execution system designed to ensure that a company's strategy is not just a wild guess but a well-thought-out plan.
3HAG Concept: The book focuses on the concept of a "3 Year Highly Achievable Goal" (3HAG), which serves as a bridge between short-term actions and long-term aspirations.
Framework for Growth: It provides a framework for businesses to map out their strategy over a three-year period, aligning daily actions with long-term goals.
Practical Tools: The book includes practical tools and methodologies to help businesses predict their future and achieve their strategic goals with confidence.

Why should I read "3HAG WAY"?

Proven Methodology: The book offers a proven methodology for strategic planning that has been successfully implemented by the author in her own businesses.
Clarity and Confidence: It helps business leaders gain clarity and confidence in their strategic direction, reducing the risk of failure.
Actionable Steps: The book provides actionable steps and tools that can be immediately applied to improve strategic execution.
Inspiration and Insight: Readers will gain inspiration and insight from real-world examples and the author's personal experiences in building successful companies.

What are the key takeaways of "3HAG WAY"?

3HAG Framework: The importance of setting a 3 Year Highly Achievable Goal to align short-term actions with long-term objectives.
Strategic Pictures: The use of visual tools like Strategic Pictures to map out and communicate strategy effectively.
Continuous Evolution: The need for continuous evolution of strategy to adapt to changing market conditions and internal dynamics.
Team Accountability: The significance of fostering team accountability and collaboration in achieving strategic goals.

How does the 3HAG framework work?

Twelve-Quarter Plan: The 3HAG framework involves creating a twelve-quarter plan that outlines key milestones and actions needed to achieve the 3HAG.
Swimlanes and Forecasting: It includes tools like Swimlanes and a 36 Month Rolling Forecast to track progress and make necessary adjustments.
Differentiating Actions: Identifying 3–5 Differentiating Actions that set the company apart in the marketplace is crucial.
Iterative Process: The framework is iterative, requiring regular review and adaptation to ensure alignment with the company's strategic goals.

What is the significance of the "Swimlanes" in "3HAG WAY"?

Visual Planning Tool: Swimlanes are a visual planning tool used to map out the key milestones and actions over a twelve-quarter period.
Alignment and Clarity: They provide alignment and clarity on how the company will achieve its 3HAG, ensuring that all team members are on the same page.
Resource Allocation: Swimlanes help in identifying resource needs and dependencies, facilitating better planning and execution.
Dynamic and Evolving: They are dynamic and should be updated regularly to reflect changes in strategy and market conditions.

How does "3HAG WAY" address team accountability?

Collaborative Brain: The book emphasizes the importance of creating a "collaborative brain" where team members work together to develop and execute the 3HAG.
Shared Goals: It encourages setting shared goals and fostering a culture of accountability where everyone is invested in the company's success.
Empowerment and Ownership: Team members are empowered to take ownership of their roles and contribute to achieving the strategic objectives.
Regular Check-ins: Regular meetings and check-ins are recommended to ensure alignment and address any issues that may arise.

What is the role of the "Core Customer" in "3HAG WAY"?

Strategic Focus: Identifying the Core Customer is crucial for strategic focus and ensuring that the company's efforts are directed towards the most profitable customer segment.
Individual Persona: The Core Customer is defined as an individual person, not a market segment, who will buy from the company for optimal profit.
Alignment with Strategy: Understanding the Core Customer helps in aligning the company's strategy and differentiating actions to meet their needs.
Foundation for Growth: The Core Customer serves as a foundation for growth, guiding decision-making and resource allocation.

What are the best quotes from "3HAG WAY" and what do they mean?

"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." —Sun Tzu: This quote emphasizes the importance of balancing strategy and tactics to achieve success.
"Good is the enemy of great." —Jim Collins: It highlights the danger of complacency and the need to strive for greatness rather than settling for mediocrity.
"The best way to predict your future is to create it." —Peter F. Drucker: This quote underscores the proactive approach advocated in the book, encouraging leaders to take control of their company's future through strategic planning.
"Execution is the ability to mesh strategy with reality, align people with goals, and achieve the promised results." —Larry Bossidy: It reflects the book's focus on execution as a critical component of strategic success.

How does "3HAG WAY" help in reducing business risk?

Predictability and Confidence: By providing a clear and actionable plan, the 3HAG framework reduces uncertainty and increases predictability.
Strategic Alignment: It ensures that all actions are aligned with the company's strategic goals, minimizing the risk of misalignment and wasted resources.
Continuous Adaptation: The framework encourages continuous adaptation and evolution of strategy, allowing businesses to respond effectively to changes in the market.
Informed Decision-Making: With tools like the 36 Month Rolling Forecast, businesses can make informed decisions based on real-time data and insights.

What is the "Secret Sauce" in "3HAG WAY"?

Unique Solution: The Secret Sauce is a unique solution to a problem in the industry that no one else has solved, giving the company a significant competitive advantage.
Tenfold Advantage: Identifying and leveraging the Secret Sauce can provide a tenfold advantage over competitors.
Continuous Search: The book encourages businesses to continuously search for their next Secret Sauce to stay ahead in the market.
Confidentiality: Unlike the overall strategy, the Secret Sauce should be kept confidential to maintain its competitive edge.

How does "3HAG WAY" ensure continuous evolution of strategy?

Regular Review: The book advocates for regular review and adaptation of the 3HAG to ensure it remains relevant and aligned with market conditions.
Strategic Pictures: Visual tools like Strategic Pictures help in tracking progress and identifying areas for improvement.
Communication Rhythm: Establishing a communication rhythm with regular meetings ensures that the strategy is continuously discussed and evolved.
Feedback and Testing: The framework encourages testing and feedback from the market to refine and improve the strategy over time.

What is the ultimate goal of implementing the 3HAG framework in "3HAG WAY"?

Achieving the BHAG: The ultimate goal is to achieve the Big Hairy Audacious Goal (BHAG) by aligning short-term actions with long-term objectives.
Focus, Fun, and Freedom: The framework aims to provide focus, make the journey enjoyable, and ultimately give business leaders the freedom to achieve their vision.
Predictable Growth: It seeks to create a predictable growth path that reduces risk and increases the company's value.
Empowered Teams: By fostering team accountability and collaboration, the framework empowers teams to execute the strategy effectively and achieve success.