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.

Contents

Understanding a big hairy audacious goal
Creating a big hairy audacious goal
Big hairy audacious goal examples
Key takeaways:
Related Business Concepts

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.”

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.