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2. Vision and Big Hairy Audacious Goal (BHAG)

Assessment Statement

“The business unit’s long-term vision incorporating a Big Hairy Audacious Goal (BHAG) is clearly defined by top management, is well understood by managers, and demands thinking beyond incremental improvements.”

Scoring Guide

Score
Description
5
Strongly Agree: Vision is defined clearly, incorporates a BHAG, is well understood, and demands innovative thinking.  
4
Agree
3
Neutral: Vision is well understood but does not incorporate a BHAG.  
2
Disagree
1
Strongly Disagree: Vision is not clearly defined.

Interpretation

This ROAD item evaluates how effectively the business unit’s long-term vision integrates a Big Hairy Audacious Goal (BHAG): a bold, strategic objective designed to inspire and stretch the organization beyond incremental progress. A strong vision with a BHAG encourages innovation, unites teams around a common purpose, and fosters future-oriented resilience.

This statement is built on three key components:

  1. Clarity: Is the vision articulated in a clear and compelling manner?

  2. Comprehension: Do managers and teams understand it and act on it?

  3. Ambition: Does it stretch the organization beyond the status quo (i.e., is it transformative)?

Example: NASA / JFK Moonshot,  Score: 5 – Strongly Agree

In 1961, President John F. Kennedy launched a clear and ambitious vision: “Before this decade is out, [we aim] to land a man on the moon and return him safely to Earth.” This Big Hairy Audacious Goal (BHAG) was compelling and publicly communicated, prompting managers across NASA to align their efforts toward achieving the lunar landing. It went far beyond incremental improvements and demanded groundbreaking innovation in rocket technology.

Reference: https://www.investopedia.com/terms/b/big-hairy-audacious-goal-bhag.asp

Learn more here: Camillus, John C. 2011. "Organisational Identity and the Business Environment: The Strategic Connection." International Journal of Business Environment 4, no. 4: 306–314.