A Big Hairy Audacious Goal (BHAG) is a strategic business statement similar to a vision statement which is created to focus an organization on a single medium-long term organization-wide goal which is audacious, likely to be externally questionable, but not internally regarded as impossible.
The term 'Big Hairy Audacious Goal' was proposed by James Collins and Jerry Porras in their 1994 book entitled Built to Last: Successful Habits of Visionary Companies. A BHAG encourages companies to define visionary goals that are more strategic and emotionally compelling. Many businesses set goals that describe what they hope to accomplish over the coming days, months or years. These goals help align employees of the business to work together more effectively. Often these goals are very tactical, such as "achieve 10% revenue growth in the next 3 months." In contrast, Collins and Porras define a BHAG (pronounced BEE-hag) as "...an audacious 10-to-30-year goal to progress towards an envisioned future." The authors claim that a company may have more than one BHAG; there may be one over-reaching BHAG and other shorter term BHAGs.
"A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a clear catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines."