A BHAG should not be seen as a marketing idea, nor as an intangible dream. It is there to provide direction for decisions, investments, and innovation. Companies that work with it use their long-term goal as a compass: if you’re not quite sure what to do, you revert to your BHAG
What is a BHAG?
The term Big Hairy Audacious Goal was introduced in the late nineties by Jim Collins and Jerry Porras in their research on visionary companies. They discovered that organizations that remain relevant for decades almost always have one overarching goal that looks far ahead and is concrete enough to provide direction.
A BHAG typically looks ten to thirty years ahead. The goal is ambitious and sometimes even slightly uncomfortable, but never detached from reality. It is precisely that tension that makes it powerful. A BHAG does not need to be guaranteed achievable; it must primarily challenge, inspire, and demand focus.
This distinguishes a BHAG from a mission or vision. While a mission describes why an organization exists today and a vision outlines how one views the (external) future, a BHAG clarifies what you actually want to achieve within that future. It is the bridge between thinking and doing.
Strategic forward
Many organizations have plans, KPIs, and roadmaps, but lack a shared dot on the horizon. Without such a dot, choices become reactive and fragmented. A BHAG brings coherence.
By placing one large long-term goal at the center, focus is created in decision-making. Investments, innovations, and collaborations can be measured against the same standard: do they contribute to the larger goal or not? This makes strategic choices not only easier but also better explainable within the organization.
Additionally, a BHAG fosters engagement. People prefer to work on something that has meaning and extends beyond the next target. A clear and inspiring goal helps connect daily tasks to a larger story, which stimulates energy and ownership.
A BHAG also has value externally. It immediately clarifies what an organization stands for and where it wants to go, which helps in positioning towards customers, partners, and investors.
Famous examples
The power of a BHAG becomes visible in organizations that have consistently applied the concept. Google once formulated the goal of organizing and making all the information in the world accessible. NASA expressed the ambition in the sixties to put a human on the moon before the end of the decade. Patagonia explicitly linked its existence to saving the planet.
What these goals have in common is not that they were easy, but that they provided clear direction. They offered guidance for thousands of daily decisions, while the exact route was determined anew along the way.
This is how you develop your own BHAG
A strong BHAG rarely arises spontaneously. It requires reflection and discussion, and above all, the willingness to look beyond the current scale.
The process begins at the core of the organization. Why do you exist, and what problem do you solve that truly matters? Take those questions seriously, and you lay the substantive foundation for a credible long-term goal.
Next, it is important to clarify how the organization distinguishes itself. A BHAG must build on existing strengths: unique knowledge, a specific market position, or a culture that is difficult to replicate. Ambition without connection to that foundation remains abstract.
Then comes the moment to think beyond the current reality. Not in small optimizations, but in leaps. What does success look like in fifteen or twenty years? What do you want to be known for? If the answer feels comfortable, the bar has probably been set too low.
To prevent ambition from descending into vagueness, making it concrete is essential. A time horizon, scale, or measurable impact helps to make the goal tangible. Not to close it off, but to provide direction.
Finally, internal support is crucial. A BHAG only works if people recognize themselves in it and gain energy from it. This requires dialogue and repetition. Only when the goal is visibly translated into strategy and choices does it come to life within the organization.
Where it often goes wrong
Not every great ambition is automatically a good BHAG. Many goals remain too general, too safe, or too disconnected from daily practice. "Becoming a market leader" or "continuing to grow" sounds ambitious, but offers little direction. Goals that are primarily internally focused often lack the connective power that makes a BHAG strong.
A good BHAG balances between big thinking and realism. It challenges, but aligns with who you are and where you have influence.
Big thinking as a conscious strategy
With a BHAG, you remain steadfast. By placing one bold long-term goal at the center, space is created for focus, innovation, and coherence. Perhaps things aren’t going as well as hoped. Perhaps you are a start-up that still needs to find its direction. In any case, looking far into the future can always be the way out.
