What Is a Big Hairy Audacious Goal (BHAG)? Categories and Example

What Is a Big Hairy Audacious Goal (BHAG)?

The term big hairy audacious goal (BHAG) refers to a clear and compelling target that an organization strives to reach. It was coined in the book Built to Last: Successful Habits of Visionary Companies by Jim Collins and Jerry Porras. Collins and Porras abbreviate it as BHAG.

Key Takeaways

• A BHAG is a compelling, long-term goal that inspires employees to take action.
• BHAG is abbreviated as BHAG.
• BHAG comes from the book Built to Last: Successful Habits of Visionary Companies by Collins and Porras.
• BHAGs pull people out of a slump and energize them to implement a big-picture plan.
• BHAGs fall under four categories: role model, common enemy, targeting, and internal transformation.

Understanding Big Hairy Audacious Goals (BHAGs)

All companies have goals, but they need precise targets that separate them from the competition and motivate their staff to succeed. That’s where the BHAG comes in.

A BHAG is a long-term goal that excites and energizes everyone in a company, unlike quarterly targets or mission statements.

Collins and Porras coined the term in their book, which studied 18 successful companies and their distinct practices.

The true test of a BHAG is whether it stimulates progress, momentum, and creativity. If it does, it may be a potential BHAG.

BHAGs motivate businesses to reach for success.

History of the Big Hairy Audacious Goal

In their book, Collins and Porras highlight well-known BHAGs, including President Kennedy’s goal of landing a man on the moon. BHAGs are intended to have a time frame of at least ten years and a reasonable chance of success. They should be action-oriented and exciting.

Types of BHAGs

BHAGs pull teams together, upgrade their capabilities, and push for achievements that wouldn’t be possible without shared commitment.

There are four categories of BHAG:

1. Role Model: Emulating the success of a well-known company.
2. Common Enemy: Overtaking the competition.
3. Targeting: Becoming a billion-dollar company or industry leader.
4. Internal Transformation: Revitalizing people and business.

Examples of BHAGs

BHAGs catch on with people outside the companies that set them. Examples include:

• SpaceX’s goal to “enable human exploration and settlement of Mars.”
• Meta’s BHAGs like “make the world more open and connected” and “give everyone the power to share anything with anyone.”
• Google’s aim to “organize the world’s information and make it universally accessible and useful.”

BHAGs do work and lead to remarkable achievements.

Why Is a Big Hairy Audacious Goal Useful?

A BHAG is useful because it’s a long-term goal that everyone can understand and rally behind. It shifts the focus to the bigger picture and excites and energizes people in a way that quarterly targets and lengthy mission statements often fail to do.

What Are the Categories of BHAG?

According to Collins and Porras, BHAGs fall under four broad categories: role model, common enemy, targeting, and internal transformation.

What Are Some Notable BHAGs?

President Kennedy’s goal of landing a man on the moon is one of the most notable BHAGs. Other examples include Meta’s and Google’s BHAGs.

What Is the Difference Between Corporate Vision and BHAG?

The main difference is the level of boldness or daring. Vision is reasonable and achievable, while BHAGs are riskier but bolder.

The Bottom Line

A BHAG is a bold, long-term goal that stimulates innovation, creativity, and progress within organizations. It was coined by Collins and Porras in their book.