Big Hairy Audacious Goals (BHAGs)
Set bold 10-30 year goals that galvanize the entire organization
BHAGs are audacious, long-term goals (typically 10-30 year time horizons) that serve as powerful catalysts for team spirit, engagement, and progress. Unlike ordinary strategic goals, a true BHAG is clear, compelling, and acts as a unifying focal point that galvanizes the entire organization.
The research showed that visionary companies used BHAGs at critical inflection points to blast past comparison companies. Like climbing a big mountain or going to the moon, a BHAG may be daunting and perhaps risky, but the adventure, excitement, and challenge of it grabs people in the gut, gets their juices flowing, and creates immense forward momentum.
A good BHAG has four characteristics: (1) it is clear and compelling enough that it requires little explanation, (2) it falls outside the comfort zone but is not impossible, (3) it is so bold that it would continue to stimulate progress even if the organization's leaders disappeared, and (4) it is consistent with the company's core ideology. BHAGs work because they engage people's emotions, not just their intellect.
- A BHAG should be so clear that it can be understood without explanation—like the moon mission
- BHAGs engage the heart and gut, not just the rational mind
- The goal should be achievable but require extraordinary effort—50-70% probability of success
- BHAGs should outlive any single leader and continue to stimulate progress independently
- Choose Your BHAG CategoryThere are four types of BHAGs: (1) Target BHAGs—a clear, quantifiable target like 'become a $125 billion company,' (2) Common Enemy BHAGs—defined by defeating a competitor like 'crush Adidas,' (3) Role Model BHAGs—emulating another company like 'become the Nike of our industry,' (4) Internal Transformation BHAGs—fundamental change like 'transform from a product company to a platform company.' Choose the type that most powerfully resonates with your organization's current situation and culture.Pro tipCommon Enemy BHAGs are particularly effective for organizations that thrive on competitive energy.WarningAvoid choosing a BHAG that contradicts your core values—a misaligned BHAG will tear the organization apart.
- Craft the BHAG StatementWrite the BHAG in a single, vivid sentence that a child could understand. It should require no footnotes, qualifications, or supporting documentation. Test it by asking: 'Does this grab people in the gut?' and 'Would this still be motivating if there were no financial incentive attached?' If the answer to either is no, the BHAG isn't bold enough or isn't emotionally compelling enough.Pro tipJFK didn't say 'We will improve our space capabilities.' He said 'Put a man on the moon and return him safely by the end of the decade.'WarningA BHAG with zero risk is just a strategic plan. It should feel slightly terrifying.
- Align the Organization Around the BHAGCommunicate the BHAG relentlessly and create mechanisms that connect daily work to the audacious goal. Every team should be able to articulate how their work contributes to achieving the BHAG. Create visible progress markers, celebrate milestones, and use the BHAG as the decision-making filter: 'Does this initiative move us toward our BHAG or away from it?'Pro tipCreate a physical or digital progress tracker that everyone can see, similar to a fundraising thermometer.
In the 1950s, Boeing committed to building the 707 commercial jet airliner—a bet-the-company BHAG that risked the entire enterprise. Boeing was primarily a military contractor and had never built a successful commercial jet. The audacious goal galvanized the entire organization around a singular mission.
Sam Walton set a BHAG to grow Walmart to $125 billion by the year 2000, starting from a position as a regional discount retailer. At the time, this goal seemed absurdly ambitious given the company's size and competitive landscape.
Collins and Porras coined the term BHAG after studying how visionary companies used audacious goal-setting to catalyze progress. Boeing's bet-the-company commitment to the 707 jet airliner, Walmart's goal to become a $125 billion company by 2000, and Philip Morris's audacious move to challenge RJ Reynolds for market leadership all demonstrated the power of goals so bold they seemed almost unreasonable. The comparison companies tended to set safe, incremental goals that inspired no one.