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BHAG: How to create big, hairy, audacious goals (with examples)

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1. Introduction

  • A big hairy audacious goal (BHAG) is a visionary and compelling goal for the next 10–25 years of a company.
  • It is characterized by being big, hairy, audacious, and measurable.
  • BHAGs play a crucial role in shaping an organization's long-term strategy.

2. Four factors of a BHAG

  • Big: The goal should be enormous and cannot be achieved in a short period of time.
  • Hairy: It should be risky and require innovation and maximum effort to reach.
  • Audacious: The idea should be bold and have a "gasp factor" that makes people stop and think about it.
  • Goal: BHAGs should be measurable and have specific metrics to track progress.

3. The role of BHAGs in strategy

  • BHAGs help increase motivation and define a long-term vision for an organization.
  • They unite employees under a shared focus and encourage them to expand their capabilities to meet the goals.
  • Setting BHAGs slightly beyond reach inspires growth and drives success.

4. Challenges of setting BHAGs

  • Setting unachievable goals can demotivate the team and lead to failure.
  • Setting easily achievable goals lacks ambition and does not push the organization forward.
  • Finding the right balance is key to setting effective BHAGs.

5. Types of BHAGs

  • Role model: Emulating a successful company by transforming processes, services, or positioning.
  • Targeted growth: Achieving substantial growth in a specific area or market.
  • Industry disruption: Creating a groundbreaking innovation that disrupts the industry.
  • Cultural change: Transforming the organization's culture and values.

6. BHAG examples

  • Amazon's BHAG: To be Earth's most customer-centric company.
  • Google's BHAG: To organize the world's information and make it universally accessible and useful.
  • Nike's BHAG: Crush Adidas.

7. Conclusion

  • BHAGs are essential in strategy as they prepare organizations for long-term success.
  • They motivate employees, define a vision, and unite the organization under a shared focus.
  • Setting the right BHAG requires finding the balance between achievability and ambition.