What Is A Big Hairy Audacious Goal (BHAG)? The Big Hairy Audacious Goal In A Nutshell

The notion of a big hairy audacious goal was first introduced by Jim Collins and Jerry Porras in their book Built to Last: Successful Habits of Visionary Companies. A big hairy audacious goal (BHAG) is a clear and compelling long-term goal guided by a company’s values and purpose.

Component	Description
Origin	Coined by business scholars James Collins and Jerry Porras in their book “Built to Last: Successful Habits of Visionary Companies” (1994).
Purpose	A BHAG is a long-term strategic goal that inspires and motivates an organization or team. It serves as a bold and clear vision of what the organization aims to achieve, often driving innovation, focus, and commitment.
Components	A BHAG typically includes the following elements:
	1. Ambitious Objective: A BHAG sets a significant and audacious objective that may seem unattainable at first.
	2. Clear Time Frame: It has a defined time frame or deadline, creating a sense of urgency.
	3. Inspiring Vision: A BHAG should be inspiring and capture the organization’s core purpose and values.
Characteristics	– Audacious: BHAGs should be daring and ambitious, pushing the organization beyond its comfort zone.
	– Long-Term: They are typically long-term goals, often spanning 10 to 30 years.
	– Measurable: BHAGs are quantifiable and come with specific metrics for tracking progress.
Examples	– Google’s BHAG: “Organize the world’s information and make it universally accessible and useful.”
	– NASA’s BHAG (1960s): “Put a man on the moon and return him safely to Earth before the end of the decade.”
Applications	– Strategic planning and goal setting.
	– Motivating teams and employees.
	– Driving innovation and breakthrough thinking.
Benefits	– Inspires and aligns the organization’s efforts.
	– Encourages a long-term perspective.
	– Fuels innovation and creativity.
Drawbacks	– BHAGs can be intimidating and demotivating if they are too unrealistic or unattainable.
	– They may require significant resources and effort to achieve.
Key Takeaway	A Big Hairy Audacious Goal (BHAG) is an ambitious and inspiring long-term strategic objective that guides an organization’s efforts and motivates its members. BHAGs are characterized by audacity, measurability, and a clear time frame.

Understanding a big hairy audacious goal

The notion of a big hairy audacious goal was first introduced by Jim Collins and Jerry Porras in their book Built to Last: Successful Habits of Visionary Companies.

Several key points define a BHAG. The goal must:

Shift the way the company does business or how it is perceived in the industry. These goals may be audacious or innovative and be the result of out-of-the-box thinking.
Encourage the company to work outside its comfort zone with confidence, commitment, and even a little arrogance.
Require little explanation. In other words, people should understand what the company is trying to do with little effort. NASA and its mission to put a man on the moon is one such example.
Be aligned with organizational strategy, lest it becomes a hollow aspirational statement.
Be worked toward every day with a sense of urgency, even if it may not be realized for decades.

Creating a big hairy audacious goal

When companies sit down to create a big audacious hairy goal, many make the mistake of not aiming high enough.

Indeed, the goal has to be audacious enough that there is a realistic chance of not achieving it.

To counteract this tendency, it is useful to set a goal with a 70% chance of success.

This encourages the organization to be brave and take a risk, which stimulates progress and forces it to dramatically improve its processes.

With that said, below is a general framework for creating a BHAG:

Conceptualize

An idea must first be brainstormed that will change the business, industry, or the lives of consumers.

It’s important to let go of constraints and allow imaginative ideas to be considered.

The idea must be action-oriented, innovative, compelling, exciting, and take a minimum of 10 years to implement.

Test

Run each idea through a feasibility test to determine whether it is something the company can realistically fund.

Commit

This may be the hardest part.

Commitment means the goal is broken down into smaller parts and work is started as soon as possible.

Progress should be monitored over the years to ensure the organization does not lose interest in its goal.

To that end, the goal should be measurable and have a clear finish line.

This motivates employees to work toward a defined endpoint.

Big hairy audacious goal examples

Here is a look at a few big hairy audacious goals from notable companies or organizations:

General Electric – “Become #1 or #2 in every market we serve and revolutionize this company to have the speed and agility of a small enterprise.”
Walmart (1990) – “Become a $125 billion company by year 2000.”
Starbucks – “Become the most recognized & respected consumer brand in the world.”
Amazon – “Every book, ever printed, in any language, all available in less than 60 seconds.”
Microsoft – “A computer on every desk in every home.”
Stanford University – “Become the Harvard of the west.”

Big Hairy Audacious Goal examples

Here are some Big Hairy Audacious Goals (BHAGs) from some well-known companies.

Microsoft

In a 2006 conference where Bill Gates announced he would be spending more time on his philanthropic endeavors, the billionaire businessman took the audience back to when he and Paul Allen founded the company over 30 years ago.

“We talked about a computer on every desk and in every home. It’s been amazing to see so much of that dream become a reality and touch so many lives,” Gates explained.

Boeing

In the second example, take yourself back to 1952 and imagine you are a member of Boeing’s management team.

The company’s engineers have a BHAG to build a large commercial jet aircraft despite:

Zero presence in the market and several previous attempts that ended in failure.
Expertise in military aircraft only.
Little interest in Boeing’s jet-powered product from the few commercial airline companies that did exist in the 50s, and
An estimated development cost of three times the company’s average annual after-tax profit for the past five years. At the time, this equated to around 25% of Boeing’s total net worth.

Despite these immense obstacles, Boeing’s vision was to “Become the dominant player in commercial aircraft and bring the world into the jet age.”

The Boeing 707 made its maiden flight on December 20, 1957, heralding a new era in air travel.

Walmart

Walmart’s BHAG to become a $125 billion company by the year 2000 is one we mentioned earlier that deserves a more detailed explanation.

While this particular BHAG is now well documented, a lesser-known fact is that Sam Walton had a history of setting audacious goals.

In 1977 he set out to reach a $1 billion valuation and then, in 1990, wanted to double the number of Walmart stores by the end of the millennium.

When the original goal of making Walmart a $125 billion company was slated in 1991, critics believed the odds of reaching this objective were slim.

Walmart had around $30 billion in revenue at the time and it was doubtful whether it could continue to grow at a suitable pace.

Adding to these doubts was the fact that Walton had recently stepped down as CEO and handed the reins to David Glass – a man lacking in charisma who did not inspire the confidence of others.

However, history will show that Glass led Walmart to a $125 billion valuation. He even managed to pull off this Big Hairy Audacious Goal two years ahead of schedule.

Nike

In the 1960s, Nike had a simple BHAG: “Crush Adidas”.

At the time, Nike was an obscure company known as Blue Ribbon Sports with only one shirt and one pair of shoes in its product lineup.

Adidas, on the other hand, was the dominant player in the sportswear industry.

The two companies have been locked in an incessant battle ever since.

While Adidas retains some degree of market leadership in Western Europe, Nike is dominant in the USA and its global revenue of $46.3 billion in 2021 was almost double that of Adidas.

General Electric (GE)

BHAG: “Become #1 or #2 in every market we serve and revolutionize this company to have the speed and agility of a small enterprise.”

Achievement: General Electric’s BHAG emphasized market leadership and agility. While GE faced challenges along the way, this BHAG guided the company’s strategic decisions and transformations, contributing to its enduring presence and innovation in various industries.

Starbucks

BHAG: “Become the most recognized & respected consumer brand in the world.”

Achievement: Starbucks’ BHAG focused on brand recognition and respect. The coffeehouse chain has made significant strides in achieving this goal, expanding its global footprint and becoming synonymous with premium coffee experiences.

Amazon

BHAG: “Every book, ever printed, in any language, all available in less than 60 seconds.”

Achievement: Amazon’s BHAG in the early days of the company aimed to revolutionize the way books were distributed and accessed. While Amazon has diversified far beyond books, this BHAG was instrumental in shaping the company’s commitment to speed, convenience, and a vast product selection.

Stanford University

BHAG: “Become the Harvard of the west.”

Achievement: Stanford University’s BHAG sought to establish itself as a prestigious academic institution on the West Coast of the United States. Over the years, Stanford has achieved recognition as one of the world’s leading universities, fulfilling its BHAG.

Key takeaways

A big hairy audacious goal is a clear and compelling long-term goal that requires innovative thinking. The concept was first introduced to the world by Jim Collins and Jerry Porras.
A big hairy audacious goal must change the landscape of a business or industry and requires that employees work outside their comfort zones. These goals must also be self-explanatory and easily understood.
Big hairy audacious goals have been set and then accomplished by visionary companies such as Amazon, Microsoft, Starbucks, and Walmart.

Key Highlights

Big Hairy Audacious Goal (BHAG): Coined by Jim Collins and Jerry Porras, a BHAG is a clear and compelling long-term goal that shifts the way a company does business or is perceived in the industry. It encourages the company to work outside its comfort zone and is aligned with the organization’s values and purpose.
Creating a BHAG: When creating a BHAG, it’s important to aim high enough and set a goal with a 70% chance of success to stimulate progress and improvement. The process involves conceptualizing an innovative and action-oriented idea, testing its feasibility, and committing to breaking it down into smaller parts and working towards it every day with a sense of urgency.
Examples of BHAGs: Notable companies like General Electric, Walmart, Starbucks, Amazon, Microsoft, and Boeing have set and achieved BHAGs that have revolutionized their industries and changed the way they do business.
Key Takeaways: BHAGs are transformative long-term goals that require out-of-the-box thinking and confidence to work outside the comfort zone. They have been successfully implemented by visionary companies, leading to significant achievements and industry shifts.

Related Frameworks	Description	When to Apply
SMART Goals	– SMART Goals are Specific, Measurable, Achievable, Relevant, and Time-bound objectives that provide clarity and focus for goal-setting efforts. They help individuals and organizations articulate clear targets, track progress, and maintain accountability to achieve desired outcomes.	– When translating a BHAG into actionable steps and milestones that are specific, measurable, achievable, relevant, and time-bound. – In situations where leaders need to set clear and meaningful goals to guide decision-making, prioritize tasks, and align efforts toward a common vision.
Stretch Goals	– Stretch Goals are ambitious objectives that push individuals and organizations beyond their comfort zones to achieve exceptional performance and innovation. They encourage risk-taking, creativity, and continuous improvement by setting targets that challenge existing capabilities and inspire breakthrough achievements.	– When striving for breakthrough performance, innovation, or growth that goes beyond incremental improvements or conventional benchmarks. – In environments where leaders seek to foster a culture of innovation, experimentation, and continuous learning by setting aspirational goals that stretch individuals and teams beyond their perceived limits.
Visionary Leadership	– Visionary Leadership involves articulating a compelling vision of the future that inspires and mobilizes others to pursue ambitious goals and collective aspirations. It requires clarity of purpose, strategic foresight, and effective communication to rally support, foster commitment, and drive change toward a shared vision of success.	– When aligning the BHAG with the organization’s vision, values, and long-term strategic objectives. – In situations where leaders need to communicate a clear and inspiring vision that energizes stakeholders, instills confidence, and motivates action toward ambitious goals and transformational change.
OKRs (Objectives and Key Results)	– OKRs (Objectives and Key Results) are a goal-setting framework that combines ambitious objectives with measurable outcomes to drive focus, alignment, and accountability across individuals and teams. Objectives define clear goals, while Key Results establish specific metrics to track progress and measure success.	– When cascading the BHAG into actionable objectives and measurable outcomes at different levels of the organization. – In environments where leaders aim to foster a culture of transparency, accountability, and results-oriented performance by setting challenging yet achievable OKRs that contribute to the attainment of the BHAG.
Strategic Planning	– Strategic Planning involves setting long-term goals and defining strategies to achieve them effectively. It requires assessing internal capabilities, analyzing external opportunities and threats, and developing action plans to align resources, capabilities, and activities with the organization’s vision, mission, and values.	– When developing a strategic roadmap to translate the BHAG into strategic initiatives, projects, and resource allocation priorities. – In situations where leaders need to assess the organization’s strengths, weaknesses, opportunities, and threats to formulate strategies that capitalize on market trends, competitive advantages, and growth opportunities aligned with the BHAG.
BHAG Framework	– The BHAG Framework is a goal-setting approach that involves defining a clear and compelling long-term goal that energizes and aligns the organization. It requires setting ambitious targets that inspire breakthrough performance, challenge the status quo, and drive sustained growth and innovation over an extended period.	– When articulating a bold and inspiring BHAG that encapsulates the organization’s purpose, ambition, and desired future state. – In environments where leaders seek to mobilize stakeholders, ignite passion, and create a sense of urgency and direction by setting audacious goals that stretch the organization beyond its current capabilities and limitations.
Change Management	– Change Management involves planning, implementing, and sustaining organizational change initiatives effectively. It requires assessing the impact of change, engaging stakeholders, managing resistance, and providing support to facilitate a smooth transition toward new ways of working, thinking, and achieving goals.	– When introducing a BHAG that involves significant organizational transformation, cultural shifts, or strategic realignment. – In situations where leaders need to navigate resistance, overcome obstacles, and build momentum for change by implementing change management strategies, communication plans, and stakeholder engagement activities aligned with the BHAG.
Leadership Development	– Leadership Development focuses on cultivating the skills, competencies, and behaviors required to lead effectively in challenging and dynamic environments. It involves assessing leadership capabilities, providing targeted training and coaching, and creating opportunities for experiential learning and growth to empower leaders to drive organizational success.	– When preparing leaders to lead the organization toward achieving the BHAG by developing their strategic thinking, visionary leadership, change management, and stakeholder engagement skills. – In environments where leaders need to nurture a pipeline of talent and succession plans aligned with the BHAG to ensure continuity and sustainability of leadership capabilities and organizational performance.
Performance Management	– Performance Management involves setting clear expectations, providing feedback, and evaluating individual and organizational performance against established goals and objectives. It requires defining performance metrics, monitoring progress, and recognizing achievements to drive continuous improvement, accountability, and alignment with strategic priorities, including the BHAG.	– When aligning individual and team performance goals and metrics with the BHAG to ensure accountability and progress tracking. – In situations where leaders need to establish a performance-driven culture that rewards and reinforces behaviors and outcomes aligned with the BHAG and organizational priorities.
Innovation Management	– Innovation Management involves creating an environment that fosters creativity, experimentation, and risk-taking to drive breakthrough ideas and solutions. It requires establishing processes, incentives, and structures to support innovation, promote collaboration, and accelerate the development and implementation of innovative products, services, and business models.	– When leveraging innovation as a strategic lever to achieve the BHAG and drive sustainable growth and competitive advantage. – In environments where leaders aim to cultivate a culture of innovation, agility, and continuous learning by investing in R&D, fostering cross-functional collaboration, and empowering employees to explore new ideas and opportunities aligned with the BHAG.