Goal-setting has long been a crucial cornerstone for product managers. However, it’s often challenging to unite all employees under a shared vision for the future. While there are various approaches to motivating your employees, one framework may be your best bet for encouraging your team to give their best effort.
Setting a big hairy audacious goal (BHAG) can help ignite excitement in your team about their projects. A compelling BHAG can foster an environment of innovation supported by employees with a shared commitment. A long-term goal also provides clear expectations and promotes collaboration between cross-functional teams.
A big hairy audacious goal (BHAG) is a visionary and compelling goal for the next 10–25 years of a company. It should feel intimidating, perhaps slightly impossible, but still achievable if the company puts forth its best efforts.
The concept of BHAG was introduced in the book Built to Last: Successful Habits of Visionary Companies by Jim Collins and Jerry Porras. The idea behind BHAG is to shift a company’s perspective toward the bigger picture.
Typically, there are four factors that make up an organization’s BHAG:
A BHAG (pronounced bee-hag) needs to resonate with the heart and soul of the employee. While “make $1 million in profit” is an admirable goal, it doesn’t necessarily excite the average employee. However, a goal like “put a person on Mars” may grab their attention, and they’ll want to work on that groundbreaking project.
If your BHAG doesn’t intimidate you slightly, then it’s not truly a BHAG. It should scare you just enough so that there’s only a 50–70 percent chance of achieving it. The idea is to dream beyond short-term goals and push the boundaries of your organization into new territory.
In terms of strategy, BHAGs can assist your organization with decision-making processes and focusing on priorities. Put simply, they help prepare you for better long-term success.
There are three main benefits to establishing an ambitious long-term goal. Setting a BHAG helps you:
Setting a BHAG slightly beyond the reach of your organization means employees will need to expand their current capabilities to meet those goals. Because the goal is so big, hairy, and audacious, it energizes your employees. This energy means they are willing to put in the work necessary to see the BHAG come alive.
However, there are some potential challenges associated with BHAGs:
When it comes to setting a BHAG, there are four broad categories. The one you choose depends on what will motivate your team the most:
Some of the best examples of big, hairy, audacious goals are bold and eye-catching. They make you raise an eyebrow and question whether they’re really achievable.
Here are a few examples of notable BHAGs:
BHAGs may seem unattainable, but even some of our wildest dreams have come true. One of the most famous examples is when John F. Kennedy announced America’s goal to land the first person on the moon by the end of the 1960s. This definitely qualifies as a BHAG because it seemed impossible at that time. Yet, Neil Armstrong became the first person to walk on the moon in 1969, demonstrating the power of setting a BHAG and working tirelessly toward achieving it.
Another example of a successful BHAG in product management is Nike’s initial goal: crush Adidas. When Nike started out in a garage in the early 1960s, this was its clear BHAG. Within 20 years, Nike emerged as the top shoe manufacturer, surpassing Adidas. With an ambitious goal in mind, Nike was able to work toward achieving its big dream.
Choosing a BHAG for your organization begins with brainstorming ideas that go beyond what you hope to achieve in the next 10–25 years. You should consider your boldest and most intriguing ideas for the future before starting to work toward finding manageable steps to reach your BHAG.
When determining your organization’s BHAG, consider the following questions:
A good BHAG sits between “This is impossible” and “it might be possible.” Creating such can help energize employees and motivate them toward pursuing its achievement.
A BHAG-driven approach fosters an environment where employees are encouraged to experiment and grow. When they share in this vision, they tend to give their best effort, which results in completely transforming companies with significant impact on their respective industries.
Featured image source: IconScout
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