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How to set a BHAG that truly inspires your team
Executive overview
Most founders struggle to choose a BHAG because they try to pick something they already know how to do. A real BHAG is not a linear projection — it requires transformation to achieve.
Connect it to your purpose and what you do best. Financial targets alone won't motivate anyone who doesn't share in the company's ownership.
A BHAG works because it's audacious enough to demand transformation, not incremental effort.
What makes a BHAG genuine
- Must be transformative — you should not already know how to achieve it
- Audaciousness is the point; the "hairy" signals how daunting it feels
- Inspires through challenge, not familiarity — climbers aren't inspired by a mountain they've already summited
- Should connect to your purpose and what your business does best
Why financial goals fall short
- Owners care about profitability; most employees don't share that stake
- Suppliers, community, and non-equity team members won't be moved by a revenue number
- A purpose-driven BHAG reaches everyone, not just the cap table
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