Setting bold and ambitious goals is essential for driving innovation, growth, and long-term success in business. One popular concept for defining these types of objectives is the Big, Hairy, Audacious Goal (BHAG), coined by Jim Collins and Jerry Porras in their book Built to Last. A BHAG is a long-term, visionary goal that challenges a company to think beyond its current limits, inspiring both employees and stakeholders to push boundaries.
Here’s a guide to setting and achieving BHAGs for your company.
What is a BHAG?
A Big, Hairy, Audacious Goal is a clear and compelling target that is challenging, energizing, and usually takes 10 to 30 years to achieve. BHAGs are not incremental goals but transformative, often pushing companies to redefine themselves. They require focus, long-term vision, and a commitment to innovation.
Unlike short-term goals or key performance indicators (KPIs), which are more tactical, a BHAG is a strategic goal that is deeply rooted in a company’s mission and purpose. The idea is that achieving a BHAG will create significant impact not only for the company but also for the industry and society at large.
1. Align Your BHAG with Your Core Values
Aligning a BHAG with your company’s core values and mission is essential before setting one. A BHAG should reflect what your company stands for and hopes to achieve on a larger scale. It must resonate with your purpose so that when employees, partners, and customers hear it, they immediately understand why it’s meaningful.
For example, Tesla’s BHAG is “to accelerate the world’s transition to sustainable energy.” This audacious goal perfectly aligns with their core mission of sustainability and innovation, driving their long-term strategy and influencing every business decision they make.
2. Make it Bold, But Attainable
A BHAG should be audacious, but possible. The key is to find the right balance between a goal that pushes the limits of what seems achievable and one that is grounded in your company’s potential. The challenge should be big enough to inspire your team but still have a realistic chance of success with the right effort and resources.
For instance, Microsoft’s original BHAG was “a computer on every desk and in every home.” This was a radical and bold idea at the time, yet it was attainable with technological advancements and market demand. Achieving a BHAG often requires innovating in ways you haven’t yet imagined.
3. Break it Down into Smaller Milestones
While BHAGs are long-term and might take years or even decades, breaking them down into smaller, more manageable milestones is critical to progress. These smaller goals are stepping stones toward the bigger vision, keeping the team focused and motivated.
For example, if your BHAG is to expand globally within 10 years, set intermediate milestones such as entering a new market every two years. By measuring success incrementally, you’ll maintain momentum while tracking progress toward your ultimate goal.
4. Create a Clear Plan and Roadmap
To ensure your BHAG is more than just a lofty dream, it’s important to create a clear plan with specific actions that will drive your company forward. Establish a roadmap that outlines the strategies, resources, and timelines needed to achieve your milestones.
Your plan should also account for flexibility, as you’ll likely need to adapt to new challenges and opportunities. Regularly revisit and reassess your progress to ensure that you’re on track and making adjustments where necessary.
5. Inspire and Engage Your Team
A BHAG is only as powerful as the people driving it. To achieve such a goal, it’s crucial to inspire your entire team to buy into the vision. Everyone in the company should understand the BHAG, feel excited, and recognize how their role contributes to its realization.
Communicate the goal’s significance regularly through team meetings, company newsletters, and performance evaluations. Encourage collaboration and celebrate small victories along the way, reinforcing the importance of staying the course. When employees feel personally connected to the BHAG, they’re more likely to commit to the work needed to achieve it.
6. Be Prepared for the Long Haul
A BHAG is a long-term commitment, so persistence is key. The journey toward achieving a BHAG is rarely smooth, and there will likely be setbacks and obstacles. Resilience, adaptability, and consistent focus are essential for keeping the company on track.
Leaders must remain dedicated and foster an organizational culture that embraces challenges and views them as opportunities for growth. Long-term thinking is critical for BHAGs—celebrating short-term wins is essential, but never lose sight of the ultimate objective.
Conclusion
Setting a Big, Hairy, Audacious Goal can transform your company’s trajectory, inspire your team, and push your business to achieve extraordinary success. By aligning your BHAG with your mission, breaking it into actionable steps, and fostering a culture of commitment, you can take your organization to new heights. The journey may be challenging, but the rewards of accomplishing a BHAG are both profound and enduring.