What are some examples of Big Hairy Audacious Goals (BHAGs) and how have they influenced business strategies?

Big Hairy Audacious Goals (BHAGs) are ambitious long-term goals that act as a powerful mechanism to stimulate progress. They are meant to shift the way organizations operate, driving them towards innovation and improvement. For example, Google's BHAG was to 'organize the world's information and make it universally accessible and useful'. This goal has shaped Google's business strategy, leading to the development of various products like Google Search, Google Maps, and Google Drive. Similarly, Microsoft's BHAG was 'a computer on every desk and in every home', which significantly influenced their strategy, leading to the development of user-friendly software and affordable personal computers. BHAGs are influential as they provide a clear and compelling target, create a sense of urgency, and stimulate extraordinary effort.

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The final OKR superpower is the system's ability to motivate people to excel by doing more than they had thought possible. Setting conservative goals stymies innovation; setting ambitious 'stretch' goals encourages people to go outside their comfort zones. It allows people to embrace what Jim Collins calls BHAGs—Big Hairy Audacious Goals. People with hard goals may reach them less often, but they also consistently perform at a higher level than people with easy goals. Stretched workers are more productive and more engaged.

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