Having a BHAG (Big, Hairy, Audacious Goal) is an essential element for progress. Again, author Jim Collins in his books Good to Great and Built to Last clearly explains the need for a very large goal to rally your team.
Having a big goal gives your team direction and great expectations. In order to accomplish great things, good BHAGs are necessary. As Collins points out, good BHAGs are set with understanding and clarity. They are abitious but attainable goals.
Even with BHAGs solidly in place, focusing on the core competency of a company is still necessary. In fact, in order to achieve the BHAG, a company must have the stability of its core business.
It is the right combination of core business and progress that constitutes the formula for success. In the fluid power industry, this would amount to protecting the many great applications of fluid power components and related products to existing designs. The BHAG would be something involving alternative energy and hybrid technology.