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Published February 20, 2023 at 12:00 PM

BHAG Examples: Big Hairy Audacious Goal That Transforms Your Business

12 min read
BHAG Examples: Big Hairy Audacious Goal That Transforms Your Business
11:12
12 min read
BHAG Examples: Big Hairy Audacious Goal That Transforms Your Business
11:12
Picture of Jessica Wishart

Jessica Wishart
Senior Product Manager at Rhythm Systems

When it comes to defining your long-term strategic vision, few frameworks are as powerful as the Big Hairy Audacious Goal. Introduced by Jim Collins and Jerry Porras in their classic Harvard Business Review article "Building Your Company's Vision," a BHAG (pronounced "bee hag") serves as a unifying focal point that aligns your entire organization around a singular, ambitious mission.

If you're wondering "What is a BHAG?" or struggling to articulate compelling long-term business goals for your organization, the right examples can provide the inspiration you need. Whether you're setting your first 10-25 year vision or resetting after accomplishing a major milestone, understanding how successful companies craft their BHAGs will help you create one that energizes your team and drives sustained growth.

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Why Your Long-Term Strategic Vision Needs a BHAG

A well-crafted Big Hairy Audacious Goal does more than set a target—it creates a sense of urgency and excitement that transcends traditional stretch goals. As Collins and Porras wrote, "The envisioned future should be so exciting in its own right that it would continue to keep the organization motivated even if the leaders who set the goal disappeared."

The best long-term business goals share these characteristics:

  • Audacious enough that you can't see exactly how you'll achieve them
  • Clear enough that everyone knows when you've succeeded
  • Aligned with your core values and what you can become best in the world at
  • Inspiring enough to maintain momentum for 10-25 years

Don't let your team fall into complacency after reaching one BHAG. Celebrate your success, then reset with an even bolder vision. This habit of maintaining an ambitious long-term strategic vision is what separates visionary companies from the rest.

BHAG

 

The 4 Categories of BHAGs (With Examples)

Collins and Porras outline four distinct types of Big Hairy Audacious Goals in their book Built to Last: Successful Habits of Visionary Companies. Here's how each category works, along with classic and modern examples.

1. Target-Oriented BHAG

This is the most common type of BHAG, where you set either quantitative (numerical) or qualitative targets as your long-term business goals.

If setting a revenue target, ensure it genuinely thrills your team - keep in mind most people besides the ones who benefit directly won’t find revenue in itself inspiring. For qualitative targets, establish tangible measurements so you'll know when you've achieved success—just like NASA knew when they landed a man on the moon and returned him safely to Earth. You can only hit a target if you know exactly what it is.

Classic Examples:

  • Become a $125 billion company by year 2000 (Walmart, 1990)
  • Land a man on the moon and return him safely to Earth (NASA, 1960s)
  • Become the dominant player in commercial aircraft and bring the world into the jet age (Boeing, 1950)

Modern Example:

  • Achieve carbon neutrality across our entire value chain by 2030 (Microsoft's updated sustainability BHAG)

2. Competitive BHAG (Common-Enemy)

This type of Big Hairy Audacious Goal rallies your team around beating a larger competitor—a David versus Goliath mentality that can be incredibly motivating. This works especially well when there's a clear industry leader whose market share you're pursuing.

Classic Examples:

  • Crush Adidas (Nike, 1960s)
  • Yamaha wo tsubusu! We will destroy Yamaha! (Honda, 1970s)
  • Knock off RCA as the number one company in electronics (Sony, 1950s)

Modern Example:

  • Overtake Tesla as the world's leading electric vehicle manufacturer (Rivian's implicit long-term strategic vision)

3. Role Model BHAG

Perfect for emerging organizations, this category focuses on aspiring to be like great companies. Rather than direct competitors, think about companies known for excellence in the ways you want your company to excel.

Classic Examples:

  • Become the Nike of the cycling industry (Giro Sport Design, 1986)
  • Become as respected in 20 years as Hewlett-Packard is today (Watkins-Johnson, 1996)

Modern Example:

  • Become the Patagonia of the tech industry—profitable, purpose-driven, and planet-positive (Various B-Corp tech startups, 2020s)

4. Internal Transformation BHAG

Best suited for larger, established companies, this type of BHAG focuses on fundamentally changing how the organization operates. This can apply to an entire company or a division seeking transformation within a larger enterprise.

Classic Examples:

  • Transform this company from a defense contractor into the best diversified high-technology company in the world (Rockwell, 1995)
  • Transform this company from a chemical manufacturer into one of the preeminent drug-making companies in the world (Merck, 1930s)

Modern Example:

  • Transform from a social media company into the leading metaverse platform (Meta/Facebook, 2021-present)

Contemporary BHAG Examples: Long-Term Business Goals from Today's Leaders

Looking at how modern companies set their Big Hairy Audacious Goals can provide fresh perspective for your own long-term strategic vision.

SpaceX: Making Life Multi-Planetary

The BHAG: Establish a self-sustaining city on Mars with a million people by the 2050s.

Elon Musk's vision for SpaceX goes far beyond launching satellites. Through developing reusable rockets with the Starship program, SpaceX is methodically working toward making humanity multi-planetary. This represents one of the most ambitious long-term business goals in modern history—a true 25+ year vision that inspires employees, investors, and the public alike.

OpenAI: Ensuring AI Benefits Humanity

The BHAG: Build artificial general intelligence (AGI) that benefits all of humanity.

Since its founding, OpenAI has maintained this audacious long-term strategic vision. With the release of GPT-4 and ongoing research into AI safety and alignment, the company continues pushing toward a goal that seemed like science fiction just years ago. This BHAG drives every product decision and research priority.

Stripe: Growing the GDP of the Internet

The BHAG: Increase the GDP of the internet.

Rather than focusing on market share or revenue targets, Stripe's Big Hairy Audacious Goal centers on expanding the entire digital economy. By building infrastructure that makes online commerce accessible to businesses worldwide, Stripe measures success by the collective growth of all internet businesses—a truly visionary approach to long-term business goals.

Shopify: Making Commerce Better for Everyone

The BHAG: Make commerce better for everyone by arming rebels—entrepreneurs who challenge the status quo—with the tools to compete against established players.

Shopify's long-term strategic vision focuses on democratizing commerce by empowering independent businesses and entrepreneurs. This BHAG has driven their expansion from simple e-commerce tools to a comprehensive commerce platform serving millions of merchants globally.

NVIDIA: Powering the AI Revolution

The BHAG: Become the essential computing platform for artificial intelligence and accelerated computing across every industry.

NVIDIA has transformed from a graphics card manufacturer into the backbone of AI infrastructure. Their long-term business goals center on being the fundamental technology enabling AI advancement—from autonomous vehicles to drug discovery to climate modeling. This transformation demonstrates how an internal transformation BHAG can redefine an entire company.

Patagonia: Using Business to Save Our Home Planet

The BHAG: Be in business to save our home planet while running a profitable company that inspires environmental action.

Patagonia's Big Hairy Audacious Goal integrates purpose with profit in a way few companies achieve. Their 2022 decision to transfer ownership to trusts dedicated to fighting climate change represents the ultimate commitment to this decades-long vision—proving that authentic long-term strategic vision can drive both impact and business success.

How to Create Your Own BHAG

Ready to develop your company's Big Hairy Audacious Goal? Here's how to get started:

  • Align with your core values and purpose: Your BHAG must reflect what your company stands for and what you can become the best in the world at—your hedgehog concept.
  • Think 10-25 years out: Long-term business goals require an extended time horizon. If you can see exactly how to achieve it in 3-5 years, it's not audacious enough.
  • Make it measurable: Whether quantitative or qualitative, ensure you'll know when you've achieved it.
  • Get your team excited: Test your BHAG with employees. Does it energize them? Would it keep them motivated even if current leadership left?
  • Choose the right category: Select the type of BHAG—target, competitive, role model, or internal transformation—that best fits your organization's stage and circumstances.
  • Review and monitor regularly: Discuss your Big Hairy Audacious Goal at annual planning sessions, monitor progress quarterly, and reference it in weekly meetings to keep it alive.

Keep Your Long-Term Strategic Vision Alive

A BHAG isn't something you set and forget. The most successful companies make their Big Hairy Audacious Goal a living part of their culture by:

  • Connecting daily decisions to the long-term strategic vision
  • Celebrating milestones on the path to achievement
  • Adjusting tactics while maintaining the core vision
  • Communicating the BHAG consistently to all stakeholders

Remember, you don't need a moon mission to create an audacious goal—just something big enough that you're not entirely sure how you'll get there. If the path forward is completely clear, your goal isn't bold enough.

At Rhythm Systems, we help mid-market companies accelerate growth through strategy and execution software that keeps your long-term business goals on track. Download our BHAG template to get started, and let us know how your journey unfolds. We're always looking for patterns and better ways to help our clients develop winning strategies.

What's your Big Hairy Audacious Goal?

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Frequently Asked Questions About BHAGs

What's the difference between a BHAG and a regular business goal?

A Big Hairy Audacious Goal differs from traditional business goals in three critical ways. First, a BHAG has a 10-25 year time horizon, while standard goals typically span 1-5 years. Second, a BHAG should be so ambitious that you can't clearly see the path to achievement when you set it—if you know exactly how to get there, it's not audacious enough. You should when it’s complete, but not all the steps you’ll take to get there. Finally, a BHAG serves as a unifying focal point for your entire organization's long-term strategic vision, whereas regular goals often focus on specific departments or metrics. Think of your BHAG as your company's North Star, while quarterly and annual goals are the stepping stones that get you there.

How do I know if my BHAG is too ambitious or not ambitious enough?

Your Big Hairy Audacious Goal should sit in what Collins and Porras call the "Goldilocks zone"—challenging enough to be truly audacious, but not so impossible that it demotivates your team. A good test is the excitement factor: does your BHAG energize people and get them talking about possibilities? If your team's reaction is "that's easy, we can do that in three years," it's not ambitious enough. If their reaction is "that's literally impossible," you may have gone too far. The sweet spot is when people say, "Wow, that would be amazing—I'm not sure how we'll do it, but I want to be part of figuring it out." Your long-term business goals should inspire creative problem-solving, not resignation.

Can a BHAG change over time, or should it remain fixed?

While your Big Hairy Audacious Goal should remain relatively stable to provide consistent direction, there are legitimate reasons to evolve or replace it. If you achieve your BHAG ahead of schedule—like Facebook reaching one billion users—you should celebrate and then set a new one to maintain momentum. Similarly, if fundamental market shifts make your BHAG irrelevant (think Blockbuster's goals before streaming), you may need to reassess your long-term strategic vision. However, avoid changing your BHAG simply because it's difficult or progress is slow. The key is distinguishing between necessary strategic pivots and giving up too early. Most companies should expect to pursue the same BHAG for the full 10-25 year timeframe.

Should small businesses and startups have a BHAG, or is it only for large companies?

Small businesses and startups absolutely benefit from having a Big Hairy Audacious Goal—in fact, some argue they need one even more than established companies. A compelling long-term strategic vision helps startups attract talent, secure funding, and maintain focus during difficult times. The key is choosing the right type of BHAG for your stage. Startups often thrive with competitive BHAGs (challenging industry giants) or role model BHAGs (becoming the [successful company] of [your industry]). Even a two-person company can have audacious long-term business goals that guide decision-making and inspire stakeholders. The vision gives context to daily work and helps you say "no" to opportunities that don't align with where you're heading.

How do I get my team bought into our BHAG if they're skeptical?

Building buy-in for your Big Hairy Audacious Goal requires both inspiration and inclusion. Start by involving key team members in the BHAG creation process—when people help craft the vision, they're more invested in achieving it. Clearly connect the BHAG to your company's core values and purpose so it feels authentic, not arbitrary. Share stories of other companies that achieved seemingly impossible long-term business goals to demonstrate that audacious visions can become reality. Most importantly, break down the journey into nearer-term milestones and celebrate progress along the way. When your team sees tangible movement toward the BHAG—even small wins—skepticism transforms into momentum. Regular communication about how daily work connects to the bigger vision reinforces that this isn't just a poster on the wall, but a living part of your long-term strategic vision.

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Looking for some more information on BHAG to help get you started? Check out our additional Big Hairy Audacious Goal resources:

How To Create Your BHAG: 3 Steps to Discovering, Creating and Putting Your BHAG to Work

What Drives Your Financial Engine? Profit/X Examples

Do You Have a Personal BHAG?

Does Your Company's BHAG Connect to Your Hedgehog?

Why Having a BHAG Matters

How to Reach Your BHAG (Infographic)

Editor's note: This blog was originally published on Sep. 9, 2013, and has been updated.