In the competitive world of business, setting a clear vision and driving towards ambitious objectives can make all the difference. One of the most effective concepts for defining that vision is the BHAG—a Big Hairy Audacious Goal. Coined by business researchers Jim Collins and Jerry Porras in their 1994 book, Built to Last: Successful Habits of Visionary Companies, the BHAG concept has since been widely adopted by companies worldwide. BHAGs represent ambitious, transformative goals that push organizations to their limits, motivating teams and driving innovation.
But what exactly makes a goal “Big, Hairy, and Audacious”? And why should companies consider setting one?
What is a BHAG?
A BHAG is not your typical, short-term business objective. Rather, it’s a long-term goal—often spanning a decade or more—that’s designed to inspire and challenge an organization in profound ways. Unlike standard objectives, which are usually practical and predictable, BHAGs are daring and bold, often pushing the limits of what a business or organization believes it can achieve. Collins and Porras introduced the term to highlight the value of having a vivid, ambitious, and almost intimidating goal that stretches beyond the organization’s current capacities, sparking a level of determination and creativity that smaller goals often lack.
The Four Key Characteristics of a BHAG
For a goal to truly qualify as a BHAG, it generally meets four core criteria:
Clear and Compelling: A BHAG should be easy to grasp and articulate. It’s a clear statement that every employee, stakeholder, and customer can understand, rallying them towards a common vision. A successful BHAG is so compelling that it resonates with anyone who hears it, making the organization’s direction unmistakable.
Purpose-Driven: BHAGs align closely with the core purpose and values of the organization. Rather than being a temporary target or financial goal, a BHAG reflects the very essence of what the organization stands for and aims to contribute to society. This ensures that the goal is more than just a motivational tool—it’s a mission with a greater meaning, giving employees a sense of purpose beyond profits.
Challenging: As the term suggests, a BHAG is not meant to be easy. It’s a lofty and ambitious goal that requires an extraordinary level of commitment, innovation, and perseverance to achieve. By setting such a high bar, organizations force themselves to push beyond their comfort zones, often discovering new capabilities and achieving breakthroughs they might not have otherwise reached.
Long-Term Focused: While traditional goals might be achieved within months or even a few years, a BHAG looks further ahead—typically 10 to 30 years into the future. This long-term horizon provides a consistent, enduring focus, steering the organization through market changes, growth phases, and technological advances without veering off course.
Examples of Iconic BHAGs
Some of the most successful companies have implemented BHAGs that eventually defined their paths. Here are a few classic examples:
Microsoft’s Early BHAG: In its early years, Microsoft declared its ambition to put “a computer on every desk and in every home.” This audacious goal drove Microsoft to innovate, scale, and overcome massive technical and logistical challenges in its early years, ultimately achieving a milestone that seemed almost unfathomable at the time.
SpaceX’s Goal for Mars Colonization: SpaceX’s BHAG is nothing short of interplanetary. The company has set its sights on creating a sustainable colony on Mars, a vision that has led to revolutionary advancements in space travel. While this goal remains years away, it has already spurred major technological breakthroughs that are transforming space exploration.
Amazon’s Customer-Centric Mission: Amazon’s BHAG could be described as “to become Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” This ambitious, customer-driven vision has powered Amazon’s expansion into diverse product categories, services, and even hardware.
Why Set a BHAG?
BHAGs aren’t just for large companies or industry giants—they can be incredibly effective for organizations of all sizes. Here’s why setting a BHAG can be a game-changer:
Motivates Teams: A BHAG serves as a rallying cry, uniting employees with a powerful purpose that goes beyond their day-to-day tasks. It offers a shared vision that inspires passion, loyalty, and commitment across all levels of the organization.
Drives Innovation: Achieving a BHAG often requires creative problem-solving and innovative thinking. By working toward a seemingly impossible target, teams are encouraged to push boundaries, explore new ideas, and adopt a more open-minded approach to problem-solving.
Long-Term Stability: In an ever-changing market, having a stable, long-term goal provides an anchor that keeps the organization focused. Even as the organization adapts to short-term challenges and opportunities, a BHAG helps maintain its broader vision and direction.
Builds Brand Identity: A BHAG defines the company’s identity in a meaningful way, shaping its culture and reputation. Customers, partners, and stakeholders often find BHAGs inspiring, creating a strong, positive perception of the brand.
Tips for Setting an Effective BHAG
To set a BHAG that’s both achievable and transformative, consider the following:
Align with Your Core Values: A BHAG should reflect what’s most important to your organization. Think about your mission, values, and the impact you want to have in the world, and let these drive the formulation of your BHAG.
Make it Specific: While BHAGs are ambitious, they should also be specific enough to provide clear direction. Avoid vague goals—define what success looks like, and consider how you will measure progress.
Ensure Leadership Buy-in: A BHAG needs champions at the top to succeed. Leaders should fully embrace the goal, set an example, and work to embed it in the organization’s culture.
Communicate it Consistently: Make sure the BHAG is woven into the company narrative. Include it in internal and external communications to keep the vision fresh and at the forefront of people’s minds.
Conclusion
A BHAG can be one of the most powerful tools in an organization’s arsenal. By setting a Big Hairy Audacious Goal, companies challenge themselves to achieve something truly remarkable. With a compelling, purpose-driven, and challenging long-term goal, a business can spark innovation, drive unity, and create a legacy that endures. For any organization looking to achieve greatness, the question is not whether to set a BHAG, but rather: What should our BHAG be?
