How to Turn Ambition into Action with BHAG Goals (+ 9 Successful BHAG Examples)

In a business world that demands constant adaptation and bold innovation, you’re not here to merely set easy-to-reach targets—you’re here to transform, disrupt, and achieve the extraordinary. But chasing monumental ambitions like Big Hairy Audacious Goals (BHAGs) comes with its own set of challenges: bridging the gap between visionary aspirations and methodical execution.

At Deel, we’ve studied how companies like Microsoft, Tesla, and Netflix used BHAGs to not only reshape their industries but also unify their teams toward a common purpose.

In this article, we’ll guide you through the BHAG framework, break down its four unique types with standout examples, compare it to other goal-setting methods, and lay out actionable steps to integrate this powerful strategy into your organization.

With insights from Deel’s global expertise and tools like Deel Engage, you’ll be armed to align your people and processes with audacious, transformative goals—unlocking growth and realizing results that once seemed out of reach.

What are BHAG goals?

BHAG stands for “Big Hairy Audacious Goal,” a concept introduced by James Collins and Jerry Porras in their book Built to Last: Successful Habits of Visionary Companies.

BHAG involves setting an ambitious and long-term goal that inspires the organization to take action and give their best to achieve it.

BHAGs are characterized by their ability to:

1. Be visionary
2. Challenge the status quo
3. Require a concerted, sustained effort over many years to achieve

It is a goal-setting framework that is intentionally designed as bold. It may seem almost impossible to achieve, yet it’s a compelling goal that helps create momentum and shared commitment among teams.

What makes a true BHAG? 5 Factors differentiating BHAG goals from regular goals

After studying 18 long-lasting and visionary companies, Jim Collins and Jerry Porras introduced the term ‘Big Hairy Audacious Goal’ in their best-seller Built to Last: Successful Habits of Visionary Companies.

Here’s a snippet from the book that explains the concept with the historic moon landing as an example:

“Most corporate statements we’ve seen do little to provoke forward movement (although some do help to preserve the core). The moon mission didn’t need a committee to spend endless hours wordsmithing the goal into a verbose, meaningless, impossible-to-remember “mission statement.” No, the goal itself—the mountain to climb—was so easy to grasp, so compelling in its own right, that it could be said one hundred different ways, yet easily understood by everyone.”

Thus, when writing a Big Hairy Audacious Goal, ensure it has below five characteristics:

1. Inspiring: BHAGs are audacious goals that help your organization push its boundaries of what may seem achievable
2. Long-term goal: BHAGs will typically span years or even decades, giving the organization enough room to reach the finish lines defined
3. Memorable: BHAG should be concise and capable of resonating with diverse stakeholders
4. Encouraging team spirit: BHAGs, combined with management by objectives, serve as a unifying force to promote collaboration and cooperation
5. Nurturing a growth mindset: BHAGs foster a culture that sees failure as part of the journey toward extraordinary achievements. Even if the goal isn’t fully realized, the pursuit can still result in significant advancements and cultivate a culture of perseverance.

BHAG helps stimulate progress within your organization by inspiring employees to push their creative talents and energies to achieve an audacious goal. Its ‘challenging’ nature gets people’s juices flowing to help your organization register wins that a mission or vision statement often fails to incite.

A good BHAG aims to stimulate the forward progress of your organization by creating a transformative vision with long-term strategic planning. This is unlike other goals that may be specific, measurable, practically relevant, and may involve a time frame.

Let us understand the difference between a BHAG and a regular goal with an example of a growing sustainability company:

4 categories of Big Hairy Audacious Goals to choose from (+ Examples)

There are four broad categories of Big Hairy Audacious Goals to choose from to build a visionary company:

Competitive BHAGs

Competitive BHAGs focus on outperforming competitors or the company becoming the leader in a particular field or industry.

Nike’s original mission in the 1960s was to “Crush Adidas.” Adidas was an international brand with huge factories that had been doing business for nearly fifty years.

Target-oriented BHAGs

Target-oriented BHAGs are quantifiable or measurable goals that aim to reach a specific numerical target.

With target-oriented BHAGs, a company aims to achieve an ambitious goal of attaining a number or taking the company to its next legacy level.

Internal transformation BHAGs

Internal transformation BHAGs focus on achieving a fundamental organizational transformation, often in response to existential threats or significant industry changes.

Two notable examples of transformational BHAGs are IBM’s and GE’s transformations.

IBM shifted from being a hardware-centric business model to becoming a global leader in IT consulting and services in the early 1990s.

Role model BHAGs

Role model BHAGs involve emulating the success or characteristics of a well-regarded company and applying it to your own context. The role model company may or may not be a part of their industry.

How BHAGs compare to other goal-setting methodologies

Here’s a detailed comparative analysis of BHAG vs other goal-setting frameworks that will help you make the right choice:

Big Hairy Audacious Goal vs OKRs

How are BHAGs different from OKRs?

A good BHAG is broad, overarching, and unifying. It serves as a guiding vision for the organization’s long-term future. Writing OKRs helps achieve performance targets and align teams from top to bottom via a structured and measurable approach to goal-setting.

When to use BHAG or OKR

Use BHAGs to guide aspirational and overarching visions. Simultaneously, use the OKR framework to strategically implement focused, measurable, and incremental goals that contribute to realizing this broader vision.

Example of BHAG vs. OKR

Take the example of a Generative AI infrastructure company:

BHAG: Ensure Artificial General Intelligence (AGI) benefits all humanity

OKR:

• Objective: Release the first demo version of AGI by 2025.
• Key results:
  • Test functional core algorithm for AGI by Q2 to achieve 90% accuracy.
  • Develop a user interface that aligns with global accessibility standards.
  • Design and publish documentation for the demo version by Q3.

Big Hairy Audacious Goal vs SMART goals

How are BHAGs different from SMART goals?

SMART goals are specific, measurable, achievable, relevant, and time-bound, thus providing a structured and practical framework for goal-setting. Unlike BHAGs that encourage thinking beyond conventional limits, SMART goals offer a realistic approach to achieving specific outcomes within defined parameters.

When to use BHAG or SMART goals

SMART goals are effective for short to medium-term objectives where it’s essential to have clarity and precision. Meanwhile, BHAGs are ideal for innovation, breakthroughs, and establishing a broad future direction.

Example of BHAG vs. SMART goal

Take the example of an electric vehicle company:

BHAG: Accelerate the world’s transition to sustainable energy by 100% replacing traditional fuel vehicles.

SMART goal: Increase the fuel efficiency of our existing hybrid car model by 20% within the next two years.

Big Hairy Audacious Goal vs. KPIs

How are BHAGs different from KPIs?

KPIs are specifically defined quantitative metrics to measure business processes or aspirations. While BHAGs give the right direction and inspiration to achieve bigger-picture outcomes, KPIs give a detailed understanding of ongoing operations to monitor and optimize performance.

When to use BHAG or KPIs

KPIs help track daily operations and employee performance by offering a detailed and quantifiable perspective. BHAGs are suitable for inspiring teams to stimulate progress and achieve an ambitious goal over a longer time frame.

Example of BHAG vs. KPI

Take the example of an eCommerce activewear brand:

BHAG: Become the #1 activewear brand with at least 45% market share.

KPI: Reduce cart abandonment rates on mobile apps to below 10%.

How do you implement and maintain a commitment to BHAGs in your organization?

Write BHAGs that align with the company’s core values

Align your organization’s core values and vision statement to craft BHAGs with a unifying focal point. The copy should reflect the organization’s identity, voice, and purpose to align employees with company goals.

Design a clear communication strategy

Craft a compelling company narrative to convey the BHAG that outlines:

• The significance of the BHAG and its long-term nature
• How the BHAG connects to the company’s values
• The potential transformative impact on the company’s core metrics and employees

It is good practice to convey BHAG via interactive channels like town hall meetings, newsletters, or media interviews for maximum impact and reach.

Take steps to integrate BHAG into your organization’s culture

Align existing routines and practices with your BHAGs to reinforce their importance.

For example, incorporate elements of the BHAG into:

• Employee recognition programs, e.g., by recognizing those with the highest contribution to achieving specific goals
• Onboarding experience workflows, e.g., by having a section explaining the vision behind the BHAGs
• Employee engagement surveys, e.g., by asking your employees how committed they feel to your organization’s BHAGs

Nurture ownership within your employees

Employees may feel anxious and rethink their commitment when they learn about your company’s BHAGs. This happens because they aren’t convinced about the organization and their capability to achieve them.

To overcome this, you must instill a sense of ownership and accountability within employees.

To nurture ownership, you need to encourage active involvement in the BHAG goal-setting and alignment process. Here are five ways to do that:

1. Help them rewrite individual goals to align with BHAG
2. Acknowledge efforts and celebrate employees who make significant contributions to achieve BHAGs
3. Invest in professional upskilling your employees to enable them to contribute to achieving BHAG
4. Communicate how their work contributes to the big vision and the resulting impact achieved from it
5. Take employee feedback and share the company’s actions to achieve audacious goals based on their ideas, concerns, or solutions

Finalize a big, hairy, audacious goal that is ambitious yet realistic

Chris Bradley emphasizes aligning BHAGs with the business context and market trends.

Conduct a comprehensive market feasibility study, scenario planning, and risk assessments to anticipate challenges.

To visualize and gauge progress, set intermediate milestones. Then, monitor the effectiveness of BHAGs and create agile contingency plans for responsiveness.

Remember: It is better to course-correct and rethink goals than spend resources on BHAGs that no longer make sense.

5 real-life BHAG examples: Companies with good BHAG execution strategy

Netflix’s work culture helped them successfully achieve multiple BHAGs

Here’s a list of ‘blockbuster’ BHAGs Netflix successfully achieved since its 25 years of operation:

• Went from DVD rental by mail to an online content-streaming platform.
• Went from solely relying on licensed content to supporting independent filmmakers and producing original content.
• Invested and upgraded its technology to fuel aggressive global expansion to 130 countries.
• Launched ad-supported pricing tiers to combat the decline in the subscriber base post-COVID.

These BHAGs have made Netflix the leading streaming platform with the highest OTT market share. One of the successful habits of visionary companies like Netflix that helped them achieve multiple BHAGs over decades is their open work culture.

The New York Times legacy turns a new page with a subscription model

The New York Times Company’s shift to a subscription model, a landmark experiment in journalism strategy, was prompted by the challenges of legacy readership and declining ad revenues.

Martin’s anxiety illustrates the experience of embracing the internal transformation BHAG approach. His unwavering belief in their solution exemplifies the strategic planning and execution that companies adopting BHAGs should aim for.

NYT’s execution for digital transformation was not random. They tested a pay model with TimesSelect, analyzed competitors’ approaches, and examined reader behavior through over 20,000 survey responses.

The result? As of November 8, 2023, The New York Times boasts a total subscriber base exceeding 10 million, including a net addition of approximately 210,000 digital-only subscribers since the second quarter of 2023.

Boeing’s BHAGs: From ushering jet age to tripling the service revenue target

Boeing led the jet age in the 1970s with its low-cost and larger passenger capacity Boeing-747 aircraft, making flying accessible to the middle class.

Then, in 2016, Boeing announced its ongoing revenue target BHAG to triple its service revenues to $50 billion in a decade. They set up the Boeing Global Services (BGS) business unit to dominate the MRO (maintenance, repair, and operations) market and integrate ‘service’ as a core offering.

Microsoft’s BHAG: A Computer in every home

Under Bill Gates’s leadership, Microsoft set forth a BHAG (Big Hairy Audacious Goal) that seemed nearly unthinkable during the early 1980s: to put “a computer on every desk and in every home, running Microsoft software.”

This vision propelled Microsoft to develop user-friendly operating systems that revolutionized the computing industry. Through continuous innovation, strategic partnerships, and aggressive marketing, Microsoft played a pivotal role in making personal computers accessible and essential to daily life.

The company’s relentless focus on software development and adaptability to changing market dynamics enabled this BHAG to become a reality. By the late 1990s and early 2000s, Microsoft’s Windows operating system had become the backbone of personal and professional computing across the globe.

Tesla’s BHAG: Accelerate the world’s transition to sustainable energy

Tesla Inc., led by CEO Elon Musk, adopted a BHAG that transcends mere automotive manufacturing to “accelerate the world’s transition to sustainable energy.”

This ambitious goal drove Tesla to innovate beyond traditional electric vehicles (EVs), encompassing solar energy and energy storage solutions. Tesla’s commitment to innovation is evident in its groundbreaking EVs, massive Gigafactories, and the Solar Roof project.

By challenging the auto industry’s status quo, Tesla has spurred a global shift towards electric transportation, prompting traditional and new automakers to prioritize EV development. Tesla’s approach includes significant investments in battery technology, autonomous driving, and renewable energy integration, demonstrating a holistic approach to sustainability.

5 common pitfalls in setting BHAGs and how to overcome them

Lack of clarity in BHAG’s definition

Cause: inconsistent communication strategy to convey BHAGs to employees and other stakeholders.

Effect: Employees’ misinterpretation or limited understanding of BHAG statements may trickle down to incorrect execution at daily operational levels.

Mitigation: Invest time and resources to articulate BHAG clearly, concisely, and understandably. Repeat BHAGs across the organization as a reminder by making it a crucial part of your work culture.

Contingency plan: Rewrite, regularly communicate, and clarify the BHAG to address emerging uncertainties.

Lack of employee buy-in

Cause: Employees do not understand, believe in, or resonate with BHAGs.

Effect: Misinterpreted BHAGs can diminish employee ownership and commitment, potentially leading to talented individuals leaving the organization due to losing belonging and purpose.

Mitigation: Involve employees in the goal-setting process and use good copywriting to communicate the ‘Why’ of the BHAGs.

Contingency plan: Implement feedback mechanisms across onboarding, daily operations, and performance reviews to continually involve employees in BHAG-related initiatives.

Inadequate resources or planning

Cause: Setting overly ambitious goals without assessing resource availability and gaps. Or treating BHAG as a side project and not allocating sufficient resources.

Effect: Employees feel strained, restricted, or demoralized for not making progress in achieving BHAGs.

Mitigation: Develop a detailed plan outlining the steps, resources, and timeline required to achieve the BHAG. Contingency plan: Scale down the scope of BHAG defined to adjust with available resources.

Failure to adjust and re-evaluate BHAGs

Cause: Having no review mechanism to evaluate BHAGs based on progress versus investment, market dynamics, or organizational changes.

Effect: High risk of allocating resources to misaligned tasks or losing sight of the end goal.

Mitigation: Schedule regular reviews to evaluate BHAG’s effectiveness and relevance for necessary adjustments.

Contingency plan: Hire an external consultant to systematically help assess and re-align BHAGs.

Not taking external factors into account

Cause: Writing BHAGs based on ‘aspirations’ rather than properly assessing the market, available resources, and technology trends.

Effect: Your company jumps on a ‘bubble’ trend, missed market opportunities, and derailed focus on fire-fighting external factors.

Mitigation: Conduct thorough risk and impact assessment of BHAGs yearly or quarterly.

Contingency plan: Pause BHAG-related initiatives and assess the situation to either re-align BHAG or stop allocating resources to it.

Track and meet your most big hairy audacious goals with Deel Engage

What differentiates Big Hairy Audacious Goals from lofty aspirations to a guiding lighthouse? An actionable strategy.

Having a realistic strategy and disciplined execution will make your BHAGs look achievable. For this, you will require goal-setting software that helps make your BHAG execution agile and aligned.

Deel Engage’s goal-setting software can help you foster a culture of continuous improvement by aligning your employees’ individual goals to overarching BHAGs.

Break down silos as your teams collaborate, sync, and share feedback in a single place to achieve BHAGs.

How to execute BHAGs with Deel Engage:

• Set up BHAGs and communicate them by bringing your teams to a single place
• Set up training programs to align employees with the skills required to achieve BHAGs
• Use data and analytics from Deel Engage to monitor progress and adapt strategies as you go
• Ensure company-wide alignment and commitment to your BHAGs—Deel Engage learning journeys are a great way to ensure your people keep up with your announcements and updates

Get in touch with our consultants to explore the Deel Engage suite.