Your BHAG Journey — How to Define the Goal That Ignites Greatness

Published On - December 21, 2021

Ted Bonel 2. STRATEGY

“A BHAG is clear and compelling, needing little explanation — people get it right away.”

— Jim Collins, Built to Last

Every great company begins with a bold vision.
A Big Hairy Audacious Goal (BHAG) is that vision — the one that rallies people, defies probability, and inspires disciplined progress over time.

It’s the moonshot that focuses energy, aligns effort, and keeps the organization moving forward — even through turbulence.

But defining your BHAG isn’t an event. It’s a journey.

What Exactly Is a BHAG?

A BHAG (pronounced “Bee-Hag”) is a long-term, emotionally compelling goal that galvanizes an entire organization.

Think of NASA in the 1960s:

“We will put a man on the moon and return him safely to Earth before the decade is out.”

That’s the perfect BHAG — clear, measurable, time-bound, and so ambitious it demands innovation and unity.

The best BHAGs combine long-term vision with short-term urgency.
They make people ask: “What must we do today, tomorrow, and the next day to make this real?”

Creating Your BHAG: Where to Begin

Jim Collins found that companies that achieved enduring greatness built their BHAGs at the intersection of three circles — the Hedgehog Concept:

  1. What You Can Be the Best in the World At (your Brand Promise)
  2. What Drives Your Economic Engine (your Profit per X)
  3. What You Are Deeply Passionate About (your Core Purpose)

The sweet spot where these overlap — that’s where your BHAG lives.

It’s not about ego or marketing flair.
It’s about purpose, focus, and conviction.

  1. Brand Promise — What You Can Be the Best In the World At

Your Brand Promise defines what you uniquely deliver — the thing your customers can’t get anywhere else.

This requires deep market insight, data, and courage. As Robert Bloom wrote in The Inside Advantage, your goal is to find your “uncommon advantage.”

Ask yourself:

  • What do our customers truly need?
  • What do we do better than anyone else?
  • Can we measure our promise — and prove it?

If you can’t measure your promise, it’s just a slogan.

  1. Profit per X — Your Economic Engine

This is the heartbeat of your business model — your economic denominator.

Collins defines it as the single most important metric that drives your economic success.
For Walgreens, it was profit per customer visit.
For Southwest Airlines, profit per plane.

When you discover your economic denominator, decision-making becomes simpler, sharper, and faster.

One of my clients discovered his Profit per X and used it to completely refocus his business — growing exponentially in a market that had been flat for years.
That’s the power of clarity.

  1. Core Purpose — What You’re Passionate About

Purpose fuels perseverance.

Without it, even the smartest strategy eventually burns out.

Simon Sinek’s famous TED Talk — “Start With Why” — captures it perfectly.
When people understand why their work matters, they’ll run through walls to achieve it.

Purpose creates energy.
Energy sustains effort.
And sustained effort makes the impossible possible.

The Iterative Nature of a BHAG

Here’s what most leaders miss:
A BHAG doesn’t come fully formed in a weekend strategy retreat.

It emerges through vigorous dialogue, testing, and iteration.

Collins’ research found that it took an average of four years for great companies to fully clarify their Hedgehog Concept and their BHAG

The process demands:

  • Brutal honesty about your strengths and limitations.
  • Consistent reflection and refinement.
  • Engagement from your best thinkers, not just your executives.

Getting your BHAG right is hard work — but when you do, everything else becomes easier.

Final Thought

A true BHAG doesn’t just inspire your people — it defines your company’s destiny.

It’s the difference between drifting through years of “good enough” and driving toward a vision that outlasts you.

So ask yourself:

  • What’s the one goal so bold it scares you — but so inspiring your team can’t stop thinking about it?

That’s where your BHAG begins.

To Scale Up your business! Take our Scaling Up/Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Want help defining your BHAG and aligning your strategy to it?
Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

 

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

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