Your future should be defined in two horizons: long term (~10 years) and short term (1 year)
“Begin with the end in mind” —Stephen Covey
If you don’t define the long term, and agree on the long term goal, you will run into friction along the way. If one of the team wants to become a AAA studio, one wants to continue making small games, and one wants to focus completely on work-for-hire, you’re going to have a bad time.
If you don’t define the goals for the year, you’re missing an important opportunity to really focus on the steps that will bring you closer to your long term goal. Without a predefined focus, you will lose energy in any number of directions, that don’t add up to your real goal.
Even if your plans end up changing, the act of planning fosters alignment in your team.
The term BHAG was coined by Jim Collins in his book Built to Last, and stands for Big Hairy Audacious Goal.
This is your long term goal, ideally at least 5-10 years into the future.
It serves as the compass for your company, it’s the overall direction you want to take the company in.
A good BHAG:
There are four main categories of BHAG: