How BHAGs Help Organizations Set and Achieve Bold Missions

Consider the most transformational, visionary companies of the last century — what do they have in common? More often than not, these organizations have become innovators or pioneers in their industries by going after a “big hairy audacious goal,” or BHAG (an acronym pronounced bee-hag). 

These ambitious, long-term objectives are bold missions that stretch beyond what seems immediately possible, compelling teams to rethink limitations, ensure forward progress, and propel a company from good to great. 

In this comprehensive guide, we explore the transformative power of BHAGs — including their foundations and practical applications, HR’s role in strategies, and common pitfalls to avoid.

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The point of a BHAG is to set direction with ambition and give the company a clear, energizing target that’s bigger than business as usual.

What are BHAGs? 

Coined by Jim Collins and Jerry I. Porras in their 1994 book Built to Last: Successful Habits of Visionary Companies, a “big hairy audacious goal” is a compelling, long-term objective that aims to fundamentally change an organization’s trajectory. Unlike conventional objectives, BHAGs are meant to be daunting, with the aim being to push organizations beyond their comfort zones and existing capabilities.

“The point of a BHAG is to set direction with ambition and give the company a clear, energizing target that’s bigger than business as usual,” said Nadia Eran, fractional HR leader and founder of Future in Work, an HR consulting firm.

Consider budding computer company Microsoft’s goal to put “a computer on every desk and in every home,” or Toyota’s aim in creating the Lexus to make “a car that is better than the best in the world” — these are classic BHAGs. Other examples cited in Collins and Porras’s seminal work include Boeing’s push to bring the world into the jet age by building a commercial jetliner and President Kennedy and NASA’s moon mission — a goal that, at the time of its launch, scientists only put at a 50% chance of success.

“A BHAG is a rallying call. It’s meant to force long-term thinking and give a sense of boldness,” said Eran. 

BHAGs vs. SMART Goals

A key distinction between BHAGs and more familiar goal-setting frameworks like SMART (specific, measurable, achievable, relevant, time-bound) goals is that, while SMART goals emphasize attainability within current constraints, BHAGs intentionally push beyond present-day capabilities.

SMART goals are a roadmap that guides tactical execution, while BHAGs have a visionary angle and a bold, long-term objective. The ambition, tenacity, and innovation required to reach a BHAG are meant to propel an entire company into unity and action. 

The Four Types of BHAGs

In Built to Last, Collins and Porras identified four categories of BHAGs that organizations might pursue and shared examples of each. Here’s an overview:

1. Role Model BHAGs: Aim to emulate the success of another admired organization, like Stanford’s goal to “become the Harvard of the West.” 

2. Common Enemy BHAGs: Focus on overtaking a specific competitor, à la Nike’s 1960s goal to “crush Adidas.”

3. Target BHAGs: Set a specific, measurable goal that currently seems out of reach, like Walmart’s 1990 aim to “become a $125 billion company by the year 2000.” 

4. Internal Transformation BHAGs: Fundamentally change the organization itself, like Rockwell’s goal to “transform this company from a defense contractor into the best diversified high-technology company in the world.” 

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Why BHAGs Work in the Workplace

Simply put, BHAGs inspire tremendous team spirit, which allows them to transcend charismatic leadership to become motivation in and of themselves. “With BHAGs, you cannot end up at the finish line alone. The only way that you can get to the finish line is by bringing everybody with you,” said Eran.

BHAGs drive huge organizational leaps and bounds via several key mechanisms.

• Innovation Catalyzation: When conventional approaches are insufficient to achieve the goal, teams are forced to innovate. Google’s BHAG (and mission statement) to “organize the world’s information” required developing entirely new technologies and approaches to information management.
• Alignment and Focus: BHAGs provide clarity amid complexity. When Microsoft declared its goal to put “a computer on every desk and in every home,” it created a North Star that aligned decisions across the organization.
• Psychological Impact: Ambitious goals can galvanize greater, more sustained effort. Research in goal-setting theory, pioneered by Edwin A. Locke and Gary P. Latham, suggests that challenging goals lead to higher performance than easy ones. 

How HR Leaders Can Support BHAGs

HR leaders and teams play a pivotal role in implementing and sustaining the effort required to reach a BHAG throughout the organization. Let’s look more closely at how HR can support BHAGs. 

Foster the right environment.

Creating a culture that embraces ambitious goal setting starts with psychological safety. When people fear punishment for failure, they’re unlikely to pursue the innovative approaches that BHAGs demand. Employees must feel secure taking the risks necessary to achieve extraordinary results. 

HR can help establish psychological safety by fostering an environment that supports ambitious goal setting, while balancing risk and accountability. Recognize effort and progress — not just outcomes — while developing feedback mechanisms that foster growth rather than assign blame.

Align BHAGs with organizational values.

Effective BHAGs must connect deeply with the organization’s purpose and core values. HR leaders can facilitate this alignment by playing point person between the organization and the workforce to ensure clear communication. 

“When going after an ambitious goal, the stakes are high, which means we need more transparency and trust, and to be more consistent in our language. HR can be that partner to make sure teams are getting the right information at the right time, to reinforce messaging, and to be the touch point with the C-suite when needed,” said Eran. 

The point of a BHAG is to be a North Star, to be a destination, to be a mark on a map, and OKRs draw the map to get there, quarter by quarter.

Translate BHAGs into actionable frameworks.

While BHAGs provide powerful direction, their long-term nature means they must be translated into short-term objectives to guide day-to-day work. A 10-year vision doesn’t tell teams what to prioritize this quarter. HR can bridge this gap by implementing frameworks like objectives and key results (OKRs) that connect long-term vision with quarterly priorities.

“The point of a BHAG is to be a North Star, to be a destination, to be a mark on a map, and OKRs draw the map to get there, quarter by quarter,” said Eran. 

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Upskill, reskill, and support capability development.

BHAGs, by definition, require capabilities the organization doesn’t yet possess. “When it comes to BHAGs, the future has to be bigger than the reality of today’s capabilities,” Eran explained. 

Organizations that successfully achieve their BHAGs proactively develop the new capabilities their ambitions demand. “That means another role of HR in reaching BHAGs is capacity development. How do we build the skills we need to reach those goals? It can be hiring or development or even culture work,” said Eran. 

Reinforce through recognition and rewards.

The journey toward achieving a BHAG typically spans years or even decades, which means sustained motivation is essential. Alignment between these ambitious goals and the organization’s recognition and reward systems is crucial for maintaining momentum. 

Implement praise and recognition programs that celebrate milestone achievements along the way to the ultimate goal, and ensure that compensation structures incentivize behaviors that support long-term goals, not just quarterly results. Create opportunities for teams to exchange praise and share success stories that reinforce progress toward the BHAG, which builds a narrative of momentum that inspires continued effort even when challenges arise.

Common Pitfalls and How to Avoid Them

While BHAGs can be transformative, they can also come with potential pitfalls.

Setting Unattainable Goals: There’s a crucial difference between audacious and impossible, and BHAGs should stretch the organization’s capabilities without breaking them.

“BHAGs are intended to be long-term (think 10-year-plus) ambitions, but annual goals should be tangible and realistic and take into account current market conditions,” said Lori Scherwin, certified professional coach and founder of executive coaching firm Strategize That. “You can set a revenue target for $100 billion in 20 years, but an individual salesperson will feel defeated if his/her annual bonus is tied to a ridiculous stretch target.” 

Failing to Set Interim Goals and Milestones: Without intermediate milestones, BHAGs can seem too distant or broad to drive action or support a sense of urgency. Ensure the path to the BHAG includes clear markers of progress that teams can complete and celebrate along the way.

“Companies need metrics focused on both near- and longer-term objectives. Keeping an eye on both will better ensure you are balancing your time and resources appropriately across timeframes without losing sight of the end prize,” said Scherwin.

Lack of Resource Commitment or Buy-In: Ambitious goals require commensurate resources. HR should work with leadership to ensure budget, staffing, and organizational focus align with BHAG priorities. Additionally, generating buy-in across the org is essential.

“Simply put, you need your teams to embrace the goal as much as the top leadership does. Without the human resources that will push for your long-term vision, it will never get done,” Scherwin said.

Goal Abandonment: When progress slows or challenges arise, organizations may be tempted to abandon their BHAGs. Create formal review processes that allow for course correction while maintaining commitment to the ultimate vision.

“It’s natural for people to waver when conditions are rocky, but if your vision is solid, you need to stay the course. Changing your BHAG at every obstacle won’t inspire discipline or keep you committed,” noted Scherwin.

How Lattice Supports HR in Meeting BHAGs

Modern goal-setting software is essential for implementing BHAGs effectively, particularly in mid-sized to large or enterprise-level organizations. Lattice OKRs & Goals provide the infrastructure organizations need to set, monitor, and achieve their BHAGs.

• OKR Framework: Lattice’s OKR functionality helps companies break down their BHAG into actionable, quarterly objectives and key results, creating a clear line of sight from daily work to long-term vision.
• Visual Progress Tracking: Lattice’s intuitive dashboards show progress toward goals at all levels, helping leaders identify where additional support may be needed.
• Performance Management Integration: By connecting individual performance reviews with organizational goals, Lattice ensures BHAGs remain central to performance review and development conversations.
• Recognition and Praise Features: Built-in recognition tools allow organizations to celebrate progress toward their BHAG, sustaining momentum and engagement.

Schedule a demo of Lattice today to see how our goal-setting and performance management tools can help your organization set, track, and achieve your most ambitious goals.