How About Taking on a Stretch Goal?

Legendary General Electric CEO Jack Welch once said, “By reaching for what appears to be the impossible, we often actually do the impossible.”

Both revered and reviled for his management style, Welch, who grew GE’s market value 30-fold in his 20 years as chief executive, popularized the concept of the stretch goal in the 1990s. Hundreds of studies, meanwhile, have confirmed that specific, ambitious goals lead to higher task performance.

It’s no wonder that many companies now use stretch goals to spur results. But stretch goals aren’t just for big organizations. Individuals can effectively employ them too. Stretch goals can be set by ambitious employees looking to advance their careers, or by managers who spot an opportunity to push a team member out of their comfort zone – with the dual purpose of encouraging a high-potential employee’s development while reaching organizational objectives.

“Stretch goals require you to go beyond your current capabilities. They inspire you to aim higher and push yourself beyond what you would normally think you are capable of,” says Emma Sutherland, manager of career education and coaching in the Career Advancement Centre at Smith School of Business.

When done right, “stretch goals breathe new life into your work, encourage you to think differently and be more innovative,” Sutherland says.

This all sounds great. Problem is, stretch goals are not well understood and often misused. Here, in conversation with Smith Business Insight contributor Kristen Sears, Sutherland offers advice on how to leverage stretch goals as a source of motivation and achievement.

When and why might a manager or employee want to set a stretch goal?

A people manager might want to set a stretch goal to develop talent and provide new opportunities for skill development to promote the individual’s professional development into higher-level roles, or it might be to motivate high performers to excel beyond what they are currently doing. On a larger scale, perhaps, the people manager wants to drive team performance to encourage the unit to reach higher levels of performance in alignment with strategic goals that have been set.

For an individual, they might want to set a stretch goal so they develop themselves professionally, push themselves out of their comfort zone or take on a new challenge.

At the organizational level, stretch goals are often deployed to inspire innovation and boost business performance. What role do stretch goals play in employee talent management and individual professional development?

Pursuing a stretch goal often means that an individual will acquire new skills and deepen skills they already possess. Organizations that support and encourage their employees’ professional development often benefit from enhanced employee engagement, productivity and retention. At the individual level, achieving a stretch goal can be a great accomplishment, which demonstrates competence and ambition that is then recognized and may lead to advancement.

Is it better for employers to recommend and set stretch goals for employees or for employees to drive their own goal-setting?

There are many different opinions about whether employers should recommend stretch goals to their employees. My opinion is: it depends. If regular conversations are taking place around an employee’s performance and how they want to progress, then an employer might see something in the employee that they don’t see themselves. It helps to have an objective lens when considering what a stretch goal could be. If there is not regular dialogue happening, an employee is better to set their own stretch goals based on what matters most to them through their own learning and self-awareness.

What’s a common mistake employers make when setting stretch goals with employees? Or that employees make when setting their own ambitious targets?

Employers need to ensure stretch goals are aligned to an individual’s professional development. Setting stretch goals without considering this alignment, and whether it is too far out of reach, can be demotivating to an employee, or worse, lead to unethical behaviour in the pursuit of results.

Individuals should avoid setting too many stretch goals at one time. I look at it like setting New Year’s resolutions. When it comes down to achieving those ambitious objectives, we find we’ve overdone it. We’ve divided our attention so much that we can’t dedicate the time and energy needed to focus and achieve any one goal.

What are some best practices for setting stretch goals and tracking their success?

I recommend tackling stretch goals like SMART goals: they should be specific, measurable, achievable, realistic and timely.

An individual stretch goal, for example, could be obtaining a Project Management Professional (PMP) certification; the PMP exam is a hard one to pass. It’s a goal that would require a significant investment of time and effort, and perhaps even a different mindset, but it aligns with how the individual wants to progress in their role or build the skills necessary to pivot into a new one. In this example of a stretch goal, defining and measuring success might look something like this:

Specific: Obtain the Project Management Professional certification by focusing on comprehensive knowledge and proficiency in project management methodologies, processes and best practices.

Measurable: Successfully complete a PMP exam preparation course. Consistently score above 80 per cent on practice exams and pass the PMP exam with a score exceeding the PMP’s required passing threshold of 80.6 per cent.

Achievable: Participate in a reputable PMP training program, dedicate a minimum of 15 hours per week for focused PMP exam preparation and leverage additional study resources such as books, online materials and mock exams.

Relevant: Attaining the PMP certification aligns with my career goal of advancing to a senior project management role and demonstrates a commitment to excellence in project management practices.

Time-bound: Complete the PMP exam preparation within the next three months, including attending the training program, reviewing study materials and taking practice exams. Schedule and take the PMP exam within one month of completing the preparation to ensure retention of knowledge.

This is an opportunity to solicit feedback, reflect on what they learned and identify areas for continued growth. Perhaps they set a stretch target too ambitiously and need to revisit their “why” for setting those stretch goals. With any stretch goal, an employee needs to consider that there may be setbacks or obstacles that were challenging to overcome — this is where resilience also plays a factor in understanding that setbacks and obstacles are a natural part of growth and development. In that same vein, all is not lost. What did they accomplish as they tried to reach the stretch goal? What progress did they make? What did they learn about themselves?