BHAG big hairy audacious goal: Definition + examples

When we achieve the impossible, it's often because we believe we can do it in the first place.

That's the mentality behind BHAGs, or Big Hairy Audacious Goals. These are things like the very first moon landing and the invention of the internet, finish lines that seemed impossibly far away when the race began.

Articulating long-term, nearly impossible goals is hard, and sharing them can be scary, but BHAGs can help you set and achieve your core purpose. In this article, you'll learn what BHAGs are, explore the four types, see inspiring examples, and discover how to set and track your own Big Hairy Audacious Goal.

What is a Big Hairy Audacious Goal (BHAG)?

A Big Hairy Audacious Goal (BHAG) is a clear, compelling, long-term goal designed to inspire an entire organization for 10-25 years. Unlike typical business objectives, a BHAG pushes the boundaries of what seems possible and challenges your team to achieve massive forward progress.

What does BHAG stand for?

BHAG (pronounced bee-hag) stands for Big Hairy Audacious Goals. The term was first coined in 1994 by Jim Collins and Jerry Porras in their book "Built to Last: Successful Habits of Visionary Companies."

When they're first set, BHAGs often seem like organization-sized stretch goals that are nearly impossible to complete. Think of President John F. Kennedy's 1961 proclamation that the United States would land a man on the moon before the decade was over. In 1961, such a claim seemed more like a dream than a realistic possibility, but by setting that goal, President Kennedy inspired the United States to achieve the seemingly impossible.

Why BHAGs matter for your business

Setting a BHAG isn't just about dreaming big. It's about creating a north star that guides every decision your organization makes. When your team rallies around an audacious goal, you create alignment, focus, and momentum that shorter-term goals simply can't provide.

Here's why BHAGs are essential for long-term success:

• They push you beyond incremental thinking. BHAGs force you to reimagine what's possible rather than settling for small improvements.

• They create urgency despite long timelines. Paradoxically, a 10-25 year goal can create more urgency than a quarterly target because the stakes feel higher.

• They align your entire organization. When everyone believes in the same audacious goal, cross-functional collaboration becomes natural.

• They attract and retain top talent. People want to work on something meaningful, and a compelling BHAG gives your team a reason to give their best every day.

• They differentiate visionary companies. Organizations with clear BHAGs stand out from competitors who maintain the status quo.

The 4 types of BHAGs

All BHAGs share one thing in common: they're ambitious, long-term goals. But there are different types of Big Hairy Audacious Goals you can set. The four BHAG types are:

1. Target-oriented BHAGs

Target-oriented BHAGs are the most traditional and common type of Big Hairy Audacious Goal. The target represents something you're aiming to achieve within a certain time frame.

Target-oriented BHAGs can be:

• Quantitative: Hitting a specific revenue target by a certain year

• Qualitative: Landing on the moon by a certain date

How to set target-oriented BHAGs:

• Make sure you're selecting a target that's big enough to inspire your organization, and far enough away to take at least 10 years to achieve.

• Target-oriented BHAGs aren't short-term goals, so they shouldn't focus on just one arm of your organization or on a single aspect of your business goals. Rather, identify a target that encompasses your organization's goals.

Example target-oriented BHAGs:

• Microsoft's visionary BHAG of putting "a computer on every desk and in every home" exemplifies how audacious long-term goals can transform industries.

• Walmart's 1990s goal was to reach $125 billion in sales by the year 2000.

Potential pitfalls and how to avoid them:

• Since you're setting a single target, make sure it's inspiring. It's OK if it seems nearly impossible to achieve; that's what makes this goal a BHAG.

• A revenue-based, target-oriented BHAG is exciting for some team members, but make sure it's something everyone can get behind.

• If your target is more qualitative, make sure there's a clear way to measure success.

2. Competitive BHAGs

Competitive BHAGs unite your team against a large competitor by tapping into the underdog mentality. They rally team spirit and create a sense of urgency to beat your competitors. When used correctly, they serve as a focal point that can take your company from good to great.

How to set competitive BHAGs:

• Identify something or someone your team is competing against, and will likely continue competing against for a long time.

• Decide whether you want to beat them in one area or all areas.

• Share the goal with your team to inspire their competitive spirit.

Example competitive BHAGs:

• NASA's goal to land a man on the moon before 1970 was a competitive BHAG, as the United States competed with the Soviet Union to be the first country to do so.

• In the 1960s, when Nike was an up-and-coming company, their original goal was to "Crush Adidas."

Potential pitfalls and how to avoid them:

• Make sure there's a clear category leader or competitor. Ambiguity makes this BHAG confusing.

• Only use this BHAG if you're the underdog. Avoid picking a close second competitor, since that isn't particularly inspiring.

• Don't feel like you have to stick to the common formula. For example, if you're not the underdog, you can still set a competitive BHAG of capturing a certain percentage of market share against all of your competitors.

3. Role model BHAGs

You don't need to be an innovator to create a good BHAG; achieving excellence in your category is challenging enough. Role-model BHAGs involve identifying something that's working well and setting a goal to emulate that success. Use this type to emulate a competitor's success or success from a different industry.

How to set role model BHAGs:

• Identify something you admire, or a goal someone else has achieved that's a BHAG in its own right.

• These BHAGs are most effective for up-and-coming companies.

Example role model BHAGs:

• Stanford University, founded 249 years after Harvard, was originally (and informally) dubbed the "Harvard of the West."

Potential pitfalls and how to avoid them:

• Before setting this BHAG, identify what makes your role model successful. You don't want to be a carbon copy; instead, identify one aspect that they've succeeded at and emulate that.

• Avoid using this BHAG style if you aren't an up-and-coming organization.

4. Internal transformation BHAGs

Internal transformation BHAGs represent a large change to your business model. If you're pivoting your business strategy, use a BHAG to represent that change and what you hope to achieve.

How to set internal transformation BHAGs:

• Identify a large, organization-wide change you need to make. This could include shifting your market, altering your business strategy, or overhauling your organization.

• Use a BHAG to represent your new business goals and why you made that change.

Example internal transformation BHAGs:

• Netflix's bold decision to transition from DVD rentals to streaming services represents a classic BHAG that fundamentally reshaped the entertainment industry.

• Best Buy's transition from an exclusively in-person shopping experience to becoming a digital leader in technology.

Potential pitfalls and how to avoid them:

• Implementing an internal transformation is difficult. Before doing so, make sure it's the best thing for your company. Frequent change can reduce team morale.

• When you're ready for an internal transformation, implement a change management process to make the transition as seamless as possible.

How to set a BHAG for your organization

Creating an effective BHAG requires more than simply writing down an ambitious target. You need to translate your long-term vision into a challenge that people across your organization understand, believe in, and consistently work toward.

Step 1: Define your long-term vision

Before you can set a BHAG, you need clarity on where you want your organization to be in 10-25 years. Ask yourself: What would success look like if we achieved everything we set out to do?

Step 2: Brainstorm with key stakeholders

BHAGs work best when they're developed collaboratively. Bring together leaders from across your organization to generate ideas. Encourage bold thinking and resist the urge to dismiss ideas that seem too ambitious.

Step 3: Evaluate and refine your BHAG

A good BHAG should meet these criteria:

• It's clear and easy to understand without lengthy explanation

• It's ambitious enough to inspire, but grounded enough to be credible

• It has a clear finish line, so you'll know when you've achieved it

• It aligns with your organization's core values and purpose

Step 4: Communicate your BHAG clearly

Once you've defined your BHAG, share it widely and consistently. Every team member should be able to articulate the goal and understand how their work contributes to achieving it.

Step 5: Create an action plan with milestones

Break your BHAG down into smaller, measurable milestones. While the BHAG itself may take decades to achieve, you should be able to track progress through strategic plans, objectives and key results (OKRs), and other goal-setting methodologies.

Example BHAGs

Before drafting your own Big Hairy Audacious Goals, take a look at these examples. Note that some BHAGs double as company mission statements, as they represent the main thing the company aims to achieve.

• Google: Organize the world's information

• NPR: To create a more informed public

• Facebook: Bring the world closer together

• Airbnb: Create a world where anyone can belong anywhere

• Feeding America: Ensuring equitable access to nutritious food for all

• SpaceX: Make humanity multiplanetary

• Khan Academy: To provide free, world-class education to anyone, anywhere

• Spotify: To unlock the potential of human creativity

• Michael J. Fox Foundation: Finding a cure for Parkinson's disease

How BHAGs compare to other goal-setting methodologies

BHAGs are ambitious, long-term goals. But not every goal is a BHAG. Here's how Big Hairy Audacious Goals stack up to other goal-setting methodologies:

• Methodology: BHAG

• Typical timeframe: 10-25 years

• Purpose: Inspire transformational, long-term change

• Methodology: KPIs

• Typical timeframe: 3-12 months

• Purpose: Measure progress toward business objectives

• Methodology: OKRs

• Typical timeframe: 1 month to 1 year

• Purpose: Set and track measurable goals

• Methodology: SMART goals

• Typical timeframe: Varies

• Purpose: Ensure goals are actionable and achievable

• Methodology: Strategic plan

• Typical timeframe: 3-5 years

• Purpose: Define organizational direction

• Methodology: Vision statement

• Typical timeframe: Ongoing

• Purpose: Articulate long-term aspirations

BHAGs vs. KPIs

Key performance indicators (KPIs) are quantitative metrics that show how your team or organization is progressing toward important business objectives. Aim to set KPIs on a quarterly or yearly basis to track whether or not you're on track to achieve your strategic goals.

BHAGs are much larger than KPIs. While KPIs measure success on a 3-, 6-, or 12-month scale, BHAGs take 10-25 years to achieve.

BHAGs vs. OKRs

Objectives and key results (OKRs) are a goal-setting methodology that follows the template: I will [objective] as measured by [key result]. Objectives are typically year-long goals at the department or organization level, while Key Results track progress and can span from a month to a year.

Making progress towards your yearly OKRs can set you up for success and help you accomplish your BHAG. But, like KPIs, OKRs are much smaller in scope than BHAGs.

BHAGs vs. SMART goals

SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic, and Time-bound. This goal-setting approach ensures goals are actionable. You can apply the SMART methodology to any goal-setting process.

For example, if you were to use the SMART methodology with BHAGs, you would ensure your BHAGs meet all the SMART criteria.

BHAGs vs. strategic planning

A strategic plan is a tool for defining where your organization is going over the next 3 to 5 years, often through a 5-year plan. This form of long-term planning helps your organization achieve big goals with clarity and focus.

While larger in scope than OKRs, strategic plans are smaller in scope than BHAGs. Depending on your BHAG, create a strategic plan to get you part of the way towards your goal, then update it every three to five years.

BHAGs vs. vision statements

In practice, BHAGs and vision statements are pretty similar. They're both inspiring goals that focus on your company's long-term success.

The main difference between a BHAG and a vision statement is the audacity of the claim. Some vision statements are bold and exciting, but they don't defy belief the way a true BHAG does.

Take TED, the host of TED Talks, for example. Their vision statement is to spread ideas. This isn't a BHAG because it isn't something revolutionary, but they're still producing amazing content and inspiring people around the world every day.

Track and achieve your Big Hairy Audacious Goals

You've set your BHAG. Next step: accomplishing it. To make progress towards success, make sure you're using a goal-setting tool that helps you align your company goals to the work that supports them, all in one place.

Ready to turn your Big Hairy Audacious Goal into reality? With Asana, you can connect your long-term vision to the daily work that brings it to life. Get started today and start tracking progress toward your most ambitious goals.

Frequently asked questions about BHAGs