Big, Hairy, Audacious Goals (BHAGs): How Successful Leaders Drive Innovation

Master The Science of Thinking Big

In this issue:

• Part 1: Understanding BHAGs

  • What are BHAGs?

  • The Science Behind BHAGs

• Part 2: Setting BHAGs

  • The 4 Steps to Setting a BHAG

  • Strategies to Achieve Your BHAG

  • BHAGs Worksheet

• Part 3: Going from here

  • Common Mistakes to Avoid

  • Recommended Resources

  • Final Takeaway

✨

I vividly remember a one-on-one meeting I was having with my Senior Vice President several years ago. I had made a solid presentation to him earlier in the day highlighting some major wins and how the team had delivered ahead of schedule.

In my one-on-one meeting, after acknowledging the work, he looked me dead in the eyes and asked, “What’s the boldest goal we have set this year?”

For a few seconds, I froze. I couldn’t think of anything.

The truth was, while we had had a stellar year, we hadn’t set any “bold” goals. We had been playing it safe - comfortable goals that we knew we could achieve.

That question stayed with me for days until I finally came across the concept of Big Hairy Audacious Goals (BHAGs). It was the answer I was looking for.

---

Part 1: Understanding BHAGs

What are BHAGs?

Big Hairy Audacious Goals - or BHAGs - were coined by Jim Collins and Jerry Porras in their book Built to Last.

Unlike typical goals, BHAGs are bold, visionary, and ambitious targets that seem nearly impossible at first glance. But with the right strategy, they’re completely achievable.

BHAGs

BHAGs are an intersection of:

1. What your organization is deeply passionate about.

2. What you can be the best at in the world.

3. What drives your economic engine.

The key is for the goal to be ambitious, and inspiring, yet still economically relevant and an area in which your organization holds expertise.

A BHAG is big enough to stretch you beyond your comfort zone, audacious enough to inspire, and bold enough to inspire you to take action. BHAGs are meant to challenge you and your team, push boundaries, and propel your organization to new heights.

Looking for some inspiration? Here are some popular BHAGs:

SpaceX: “Enable human exploration and settlement of Mars”

Meta: “Make the world more open and connected” and “Give everyone the power to share anything with anyone.”

Google: “Organize the world’s information and make it universally accessible and useful”

Microsoft (early days): “Put a computer on every desk and in every home."

Boeing (1950): “Become the dominant player in commercial aircraft and bring the world into the jet age.”

---

The Science Behind BHAGs

Studies show that setting ambitious goals has a significant impact on performance. A survey by Harvard Business Review found that teams with clear, bold objectives are 37% more likely to outperform those with vague or moderate goals. Another report by Gallup indicated that employees who are involved in bold goal-setting are 3.6 times more engaged at work.

In short, if you want your team to be more engaged, motivated, and productive, you may want to try setting BHAGs.

---

Part 2: Setting BHAGs

In this section, you will learn how to set BHAGs in your role as a leader.

• We will start by reviewing The 4 Steps to Setting a BHAG, a simple yet powerful approach to setting BHAGs methodically.

• We will then discuss some strategies to achieve your BHAG, so you don’t end up setting BHAGs that get abandoned or lost.

• Finally, we will make it real with the Big, Hair, Audacious Goals (BHAGs) Worksheet, which will help you build your muscle in applying and using this framework in your leadership role.

The 4 Steps to Setting a BHAG

A great BHAG starts with vision. What does your organization want to achieve in the next 10-25 years? This goal should be directly tied to your company’s mission and values.

Here are the 4 steps to setting your BHAG: