A BHAG (Big Hairy Audacious Goal, pronounced “bee-hag”) is a long-term goal so bold and clear that it needs little explanation and pulls an organisation forward. The idea comes from Jim Collins and Jerry Porras, whose research for Built to Last found more evidence of BHAGs in long-lasting “visionary” companies than in their comparison companies in fourteen of eighteen pairs. The model case is the 1960s moon mission: one sentence, a clear finish line, and a real chance of failure.
People should get it right away. Collins and Porras contrast GE's "become #1 or #2 in every market we serve" with a hard-to-remember Westinghouse vision statement from 1989.
02
Give it a finish line
A true BHAG lets the organisation know when it has arrived. Walmart's goal to become a $125-billion company by the year 2000 is one of the examples Collins cites.
03
Make it bold, not reckless
BHAGs sit in the grey area where reason says "this is unreasonable" but the drive for progress says "we can do it". Boeing's bet on a commercial jet, the 707, is the classic case.
04
Pair it with urgency and a core
Collins asks what the organisation must do today, with monomaniacal focus, to defy the odds; the goal works only when it sits on a core purpose that does not change.
Where you see it today
A climate BHAG meets the AI build-out
In January 2020 Microsoft committed to be carbon negative by 2030, a goal with a date and a finish line. Its May 2025 sustainability report said total emissions had risen 23.4% against the 2020 baseline, citing growth factors such as AI and cloud expansion, while it kept the 2030 goal.
Missions without a finish line
Many AI-era companies publish missions rather than BHAGs. Google DeepMind’s is “to build AI responsibly to benefit humanity”: a purpose to steer by, but not a mountain with a summit you can see.
Tesla's goal changes shape
Tesla’s annual report for 2025 states its mission as “building a world of amazing abundance” and says the company is focused on bringing AI into the real world through FSD, Robotaxi and the Optimus robot. Whether that goal has a finish line is the open question.
Collins and Porras note that the most optimistic assessment of the moon mission’s chances in 1961 was fifty-fifty, yet Kennedy committed the country to landing a man on the moon before the decade was out. Companies that set public AI goals with dates face the same mix of long odds and urgency.
BHAG vs related ideas
BHAG
What it isOne bold goal with a clear finish line
Time horizonLong term, often a decade or more
Mission or purpose
What it isWhy the organisation exists; never fully achieved
Time horizonIndefinite
Vision statement
What it isA picture of the desired future, often wordy
Time horizonLong term
SMART goal
What it isSpecific, measurable, achievable, relevant, time-bound
Time horizonMonths to a few years
Hedgehog Concept
What it isWhat you can be best at, what drives your economics, what you are passionate about
Time horizonStrategic focus, not a goal
How to use it
Write the goal in one sentence a new hire could repeat after hearing it once.
Define the finish line: how will you know, on one specific day, that you made it?
Test the odds honestly; if success is certain, it is a plan, not a BHAG.
Ask Collins's question every quarter: what must we do now, with focus, to move toward it?
Check that the goal fits your core purpose; a BHAG that contradicts what you stand for will be quietly dropped.
The Business Engineer lens
In the AI economy, compute, talent and capital flow to the companies with the clearest bold goals, so a well-built BHAG is also a fundraising and hiring asset. The Business Engineer’s test is the finish line: a goal you can verify forces real choices, while a purpose you can never reach can justify anything.
Big Hairy Audacious Goal, a term from Jim Collins and Jerry Porras's book Built to Last.
What makes a good BHAG?
It is clear and compelling, needs little explanation, has a clear finish line, and is bold enough that success is not guaranteed.
What is an example of a BHAG?
The 1960s goal of landing a man on the moon and returning him safely to earth before the decade was out; in business, Walmart's goal to become a $125-billion company by 2000.
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.
A Big Hairy Audacious Goal (BHAG) is a long-term strategic vision that is ambitious, compelling, and serves as a unifying focal point for an organization. Introduced by Jim Collins and Jerry Porras in "Built to Last," BHAGs typically span 10-30 years and inspire teams to achieve extraordinary results.
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.
VISUAL FRAMEWORK
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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.
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
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.
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.
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.
Nike vision is “to bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”
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.
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.
How AI Is Changing This
AI is fundamentally transforming how organizations conceptualize and execute Big Hairy Audacious Goals by making previously impossible targets achievable through data-driven insights and automation. Tesla exemplifies this transformation with their BHAG of accelerating the world’s transition to sustainable transport. AI enables Tesla to tackle this audacious goal through sophisticated battery management systems that optimize energy efficiency, autonomous driving algorithms that could revolutionize transportation safety and accessibility, and predictive manufacturing systems that dramatically reduce production costs and time. Their neural networks process millions of miles of driving data to continuously improve vehicle performance, while AI-powered supply chain optimization helps scale production from thousands to millions of vehicles annually. Without AI capabilities, Tesla’s ambitious timeline for global electric vehicle adoption would remain a distant dream rather than an increasingly realistic goal, demonstrating how artificial intelligence transforms BHAGs from inspirational statements into executable strategies.
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.
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Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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