What are stretch goals?

What is a stretch goal?

A stretch goal is a lofty goal that helps push your team to exceed their normal expectations. These types of goals are ambitious and require a team to stay focused and disciplined as they attempt to achieve them. Sometimes, stretch goals may not be as easily achievable within a given timeframe. Instead of achieving them, teams may set stretch goals to support their mission, improve performance, and provide direction to other team members. Some examples of stretch goals include the following:

• Double typical annual revenue growth
• Increase the number of app users by 50% in three months
• Open a second brick and mortar location in two years

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How to set stretch goals

To effectively set a stretch goal, tailor goals to the team’s capabilities and aspirations. Engage team members in the goal-setting process, identify areas where improvement is realistic, and collectively envision a desired outcome. Team involvement helps ensure stretch goals are worthwhile and realistic while still ambitious. Establish milestones to track progress toward reaching a stretch goal to keep everyone motivated.

Stretch goals have plenty of benefits for your team which include the following:

Creates unconventional solutions

Stretch goals challenge teams to think outside the box and create unconventional solutions. With tighter resources and deadlines, teams are encouraged to develop creative approaches to problem solving.

Promotes productivity

Challenging goals may inspire team members to work harder to achieve them. With tighter deadlines and loftier aspirations, team members will likely work more efficiently.

Increases funding

Stretch goals are also used for crowdfunding campaign strategies. The initial goal can help bring a project to life, and organizations can set stretch goals to gain additional features and support.

What are the cons of stretch goals?

When creating stretch goals, consider the following aspects to ensure you’re effectively establishing goals:

Potential for burnout

Stretch goals push team members beyond their normal performance levels and productivity. The pursuit of lofty targets can drastically increase their workload and pressure, which can negatively impact morale, motivation, and energy. When setting stretch goals, make sure they are reasonable and acceptable to your team members.

Strain on resources

Stretch goals require significant time investment, effort, and resources. When ineffectively pursued, ambitious targets can strain organizational resources and priorities. This can negatively impact other critical initiatives and strain resources.

May not work with employees’ skillset

You may have ambitious goals for your team along with clear benefits for your organization. However, your team may not have the skillset to accomplish the stretch goals. Ensure you guide your team effectively to work toward your stretch goals.

Stretch goals help your team exceed their limitations and create objectives for the future. While lofty goals are aspirational and push your team, keep stretch goals realistic so your team stays motivated and focused. For more help with goal setting, SMART goals, and other ways to help reach your goals, learn more organization tips.