The Trap of Stretch Goals
Why more isn’t always better.
Previously on Giuseppe’s Glimpse: In the last episode, we explored how businesses can create societal impact while thriving, focusing on the importance of fairness, value creation, and aligning purpose with capabilities. Missed it? Catch up here!
Buongiorno everyone! 👋
As a manager or leader, you’ve probably come across the concept of stretch goals—those big, audacious targets designed to push teams to achieve more than they thought possible.
Stretch goals can be described as objectives that go beyond the current capabilities of an individual or organization, forcing them to step out of their comfort zone.
Think of them as moonshots: goals that aren’t just ambitious, but deliberately set at a level that feels almost out of reach. 🌙
At first glance, this seems like a recipe for success. The idea is that by pushing boundaries, we inspire innovation, creativity, and exceptional performance.
However, in my experience—and according to many experts—this approach often comes with hidden pitfalls.
The stretch goal myth: why it can backfire
Many leaders believe that setting incredibly high goals will automatically lead to higher levels of effort and, consequently, better outcomes.
But this idea is, at best, a half-truth. 🤔
Sure, there are stories of companies achieving greatness by setting near-impossible objectives, but for every one of those, there are countless examples of failure.
Stretch goals can demoralize teams rather than inspire them. When people are faced with targets they perceive as unattainable, they often feel overwhelmed, lose motivation, and become disengaged.
It's not that they lack ambition; it’s that they stop believing that their efforts can lead to success. 🚧
In management, this is the opposite of what we want. Instead of pushing people to perform better, we might be pushing them to burn out.
Research backs this up.
Edwin Locke and Gary Latham, pioneers of goal-setting theory, point out that while difficult goals do enhance performance, they work best when people believe the goals are achievable. 🎯
When they don’t, the result isn’t increased effort—it’s often apathy or frustration. Goals need to be grounded in reality to inspire real effort, not fantasy.
Smart goals: a better alternative?
Let’s contrast stretch goals with what I’d call smart goals: objectives that are specific, measurable, achievable, relevant, and time-bound (yes, I’m borrowing from the well-known SMART framework 📚).
Smart goals motivate because they give people a clear sense of direction and, more importantly, a sense that success is within reach.
This doesn’t mean they aren’t challenging—it means they are balanced with the reality of the situation. ⚖️
Behavioral economist Dan Ariely’s research into motivation adds an interesting dimension here.
He found that people are much more motivated by incremental, attainable progress than by big, sweeping changes that feel out of reach.
A goal that’s just within sight sparks effort, while one that’s too far away can paralyze it. This is where stretch goals can actually stifle the creative problem-solving they’re supposed to unleash. 🥶
When stretch goals work—and when they don’t
So, is there ever a place for stretch goals in management?
Absolutely, but with caution. ⚠️
When used sparingly and with a clear understanding of their risks, stretch goals can push teams to think outside the box.
But—and this is key—only if the organization has the right conditions for them.
Visionary leaders and entrepreneurs sometimes set stretch goals because they have an acute awareness of what’s possible. They’re not blindly setting high expectations; they’re doing it because they see an opportunity no one else does. 💡
In these cases, the stretch goal serves as a rallying cry for innovation and transformation.
However, stretch goals can lead organizations astray when they are used indiscriminately.
We’ve seen this happen time and again. 👀
Take the example of BG Group. They set aggressive growth targets, which initially helped drive success, but over time, these goals became unsustainable.
Instead of adjusting when the market shifted, they stuck to their stretch goals—ultimately leading to underperformance, leadership changes, and eventually, a takeover by Shell.
The lesson? Stretch goals that ignore reality can lead to overreach and even collapse. 🤕
Striking the right balance: ambition vs. realism
As managers, we’re always balancing ambition and realism.
While stretch goals might look good on paper, the real art lies in knowing when and how to use them. 🚦
Ambitious goals should push teams, yes, but they should also be achievable and tied to a clear understanding of the team’s or company’s capacity.
If the goal feels too far out of reach, what you’re more likely to get is disengagement rather than the leap of faith you’re hoping for. 😔
Smart, challenging goals, on the other hand, give teams a clear path forward, and when those are combined with the right support and feedback, the results can be outstanding.
The discussion around stretch goals is complex and multifaceted, with strong opinions on both sides. 🤷♂️
Do you think they can be useful in specific contexts or industries? Have you seen examples where the line between ambition and overreach is especially tricky to navigate? And perhaps most importantly—how do you maintain team alignment when the ambition starts to feel overwhelming?
Stay curious! 🙌
-gs
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