What Does EXAGGERATION mean?

via 11 Second Club

...these examples of pointing and indication may seem extreme, but a look through any month's 11 Second Club entries will reveal that it's very easy to slip into these pitfalls without realizing it. I believe that this often comes from a misunderstanding of the animation principle that says "Exaggerate! Exaggerate! Exaggerate!" There can be a tendency to interpret "exaggeration" as "do things as big as possible," and so it's not too surprising that these kinds of giant indications an pointing fingers make their way into our animation. But if you think of exaggeration as applying to pose instead of gesture, or emotion instead of motion, you'll start to find ways of creating an animated performance that reaches through the screen and connects with an audience.