Stretch Goals: How to Set and Track Them + Tips and Examples

When things aren’t going as well as they should be and the overall performance is lower than expected, many companies turn to stretch goals hoping they would quickly boost performance and make things right again. 

But is this the right move for a struggling company? Can stretch goals truly fix things?

Stretch goals are intimidating for a reason. They stretch beyond what you’re currently capable of. But are they unattainable? 

In this article, we’ll address all these questions and provide you with tips and real-life examples of how to effectively tackle stretch goals.

So, keep reading!

• Stretch goals are extremely challenging goals deliberately set to push the limits of what employees normally do to boost their performance.
• Benefits of stretch goals include higher productivity, motivation, teamwork, innovation, creativity, and profits.
• Stretch goals are more likely to be reached in teams already performing well.
• Inadequate stretch goals may cause frustration, cheating, lower-quality results, and burnout.

What is a stretch goal?

A stretch goal is an extremely challenging goal intentionally set to push employees beyond their typical boundaries, with the aim of boosting their performance and reaching desired objectives.

Regarding the stretch goals meaning, the name derives from the fact that they are so difficult to achieve that they require “stretching” beyond your current capabilities and leaving your comfort zone. 

Stretch goals exist for one reason – to enjoy a higher-purpose reward that comes upon achieving them. This reward could be in the form of a groundbreaking, innovative product, or a significant profit-oriented reward.

However, due to their overly ambitious nature, stretch goals often face the risk of failure. Nevertheless, there are certain tools and techniques that might increase the chances of reaching them. We’ll explore these strategies in greater detail later on.

What’s the difference between SMART and stretch goals?

In many cases, managers tend to opt for SMART goals rather than stretch goals. This choice is entirely understandable, considering that stretch goals often represent a less ‘smart’ route to pursue.

The SMART goals approach emphasizes setting goals that are:

• Specific, 
• Measurable, 
• Achievable, 
• Relevant, and 
• Time-bound. 

The SMART approach aims to make goals easier to attain. On the other hand, stretch goals are deliberately designed to be challenging to reach. This is because stretch goals aim to establish a solid foundation for innovation. 

In reality, stretch goals often turn out to be unattainable, which is why some may consider them less smart.

What’s the stretch goal paradox?

The stretch goal paradox says that companies that are already performing well and have ample resources are the ones most likely to achieve stretch goals, while those that are struggling are more likely to fail to reach them.

If things are going well, why change anything and risk losing what you already have? On the other hand, if you’re desperately seeking a way to improve low performance, you’re probably at risk and attempting to set ambitious, all-or-nothing goals. 

Stretch goals examples

To better illustrate what a stretch goal is, we’ve prepared a few examples across different departments. Stretch goals might include the following: 

• Customer support – reduce average response time to customer queries by 50% within 6 months.
• Marketing – increase conversion rate on email marketing campaigns by 20% over the next quarter. 
• Sales – expand to a new market within 1 year.
• Sales – reach a specific sales target within a year.
• Project management – implement a new project management tool and achieve 90% team adoption within 3 months.

Benefits of stretch goals

Stretch goals may come with many benefits that affect both the company and the individual involved in the process. 

Let’s address some of them.

Benefit #1: Improved performance

Setting a stretch goal may breathe new energy into employees.

They’ll have the enthusiasm to work harder and make better results, especially when there’s a professional and financial reward involved. 

Benefit #2: Increased motivation

Stretch goals can be particularly beneficial in environments where motivation levels are low. Setting ambitious goals can boost employees’ motivation by giving them something significant to work towards. 

Even when stretch goals seem impossible to reach, motivated employees will find ways to achieve them, as where there’s a will, there’s a way.

Benefit #3: Promoting innovation

With a stretch goal in mind, employees abandon their comfort zones and embrace new ways of thinking. 

This opens up space for innovation as ongoing research allows new ideas to flourish. 

Benefit #4: Strengthened teamwork

Facing a stretch goal is challenging, but it’s also what makes your team stronger. As team members are bonded by common struggles, they will learn to support each other and work together as one to achieve the stretch goal.

Benefit #5: Financial advantages

Fully or even partially reaching your stretch goal typically comes with significant financial advantages. It could be whether through direct revenues from sales or market expansion, or indirectly via cost reduction. 

Also, stretch goals often result in financial rewards for employees, such as bonuses. 

When stretch goals should be pursued

There isn’t a perfect answer to when a stretch goal should be pursued, as it’s often all about the momentum. However, if you check these boxes, there’s a higher chance that you’ll succeed:

✅ Your recent performance is strong. 

✅ You have rich resources.

The employees will already be motivated enough to pursue the stretch goal as they’ve performed well in the past, while you’ll have enough money to cover any expenses you might need down the road.

But, are there any other significant factors that can impact your decision on whether to pursue a stretch goal?

To find the answer, let’s take a look at a real-life story. 

Our contributor, Diana Zheng, is the Head of Marketing at Canada’s premier eCommerce shipping company, Stallion Express. Diana shared her story about an ambitious goal they pursued back in the day:

Diana shared how they felt about this challenging goal at first: 

Diana then explained how it all turned out and the lessons learned from this experience:

Challenges of stretch goals

While stretch goals can indeed bring many fulfilling rewards, there are also some downsides to consider. If set at the wrong time or in the wrong manner, stretch goals may become more of a burden than a source of motivation. 

Let’s discuss some of the possible challenges of stretch goals.

Challenge #1: Frustration and burnout

Stretch goals that are too difficult to reach can often cause frustration in employees. The inability to reach the goal may become too stressful to handle, especially if employees are pushed too hard. This frustration may even lead to burnout. 

To prevent this, try setting a more realistic goal and break it down into milestones. Also, help your employees with proper workload management and provide them with the necessary support.

Challenge #2: Unethical behavior

When targets are set too high and employees are pushed too hard, some forms of unethical behavior may occur. Employees may resort to any means necessary to achieve the set goals, even if it involves cheating or mistreating their coworkers.

To prevent this scenario, you’ll need to foster a culture of integrity and trust within the workplace. 

Challenge #3: Lower-quality results

When faced with overly ambitious stretch goals, employees may prioritize quantity over quality. That’s why it’s important to constantly promote value over numbers.

Challenge #4: Lack of skills

Sometimes, stretch goals are hindered by the lack of skills and knowledge among the employees. So, make sure you offer adequate training and opportunities for learning and growth to your employees.

When stretch goals should be avoided

The Yahoo case is probably the most well-known example of a challenging stretch goal. 

Namely, in 2012, Marissa Mayer, then the CEO of Yahoo, set an overly ambitious goal of reviving Yahoo, which was struggling hard at that time. Her goal was to achieve double-digit growth in 5 years along with several other smaller targets.

Not only did she fail to meet the main goal, but the company’s revenues remained flat. Employees were left demoralized, and the work environment wasn’t a suitable ground for big, audacious goals. 

This story, along with many other similar stories, leads us to the conclusion that if you notice certain signs, maybe it’s not a good moment for setting a stretch goal as the chances of reaching it are low. 

The signs to avoid a stretch goal include the following: 

❌ Company’s overall performance has been low.

❌ There’s a lack of resources.

❌ Employees are demotivated.

❌ There’s a lack of team spirit. 

❌ There’s no confidence in company leadership.

Who should set stretch goals?

We’ve mentioned that companies that are already performing well may benefit from setting stretch goals. 

When it comes to who specifically sets these stretch goals, it’s typically leading executives in the following positions:

• CEOs, 
• Department team leaders, and
• Managers.

How to set and achieve stretch goals: 4 steps

Setting a stretch goal is far from an instant decision. On the contrary, it requires thorough planning and analysis beforehand. 

We’ve prepared a few steps you absolutely must go through if you want to achieve your stretch goal.

Step #1: Analyze where you are at the moment

Before you actually set the stretch goal, you’ll need to consider if it is the right moment to take such bold actions. 

Carefully examine the current work environment and how you’ve performed up until this moment. Are your employees ready for new endeavors? Are they satisfied, motivated, and energized enough? Is the team spirit high enough? 

If yes, then you can start considering introducing a stretch goal.

Step #2: Check your resources

Another important step is analyzing your current resources. 

Will you have enough money and other project resources to pursue such an ambitious goal? And what if you fail to reach it? How will it affect your company and its budget? 

Don’t undermine the importance of resources as you don’t want to risk ending up in a bad situation, not even to mention the risk of bankruptcy.

Step #3: Add time frames

Defining a time frame well is essential for stretch goals, and it should be done strategically. 

If you provide too little time to reach the target, employees might become too anxious and even start giving up. If your deadline is too far away, it will not make them anxious enough – and yes – a little bit of anxiety is good as it’s what makes people perform better than they otherwise would. 

Step #4: Define success metrics

How will you know if you’re on the right track if you don’t know the metrics? 

Defining success metrics and key performance indicators is an essential part of planning stretch goals. 

Tips for surviving stretch goals

Aside from the necessary steps for setting stretch goals, there are 4 additional tips to keep in mind. 

Following these tips should help you survive any stretch goal you set.

Tip #1: Consult with employees

Try not to choose arbitrary targets, as you’ll more likely make the wrong move. You should first carefully negotiate the target with employees. 

This implies you should actually talk to your employees and find out what they think this target could be. When they are more involved in the process, they’ll feel more responsible about achieving it.

Tip #2: Be realistic

It’s highly important that employees actually believe that the stretch target is achievable. If they’re stretched too far, employees won’t have the confidence and motivation to pursue them.

Tip #3: Break them up

Stretch goals seem intimidating at first. To make them more achievable, break them up into smaller steps. 

Also, be sure to mark and celebrate each milestone and show gratitude to your employees for working hard. Small wins will additionally boost your employees’ confidence. 

Tip #4: Provide support

Prior to setting the stretch goal, make sure you have enough resources in case your employees might need help reaching the goal. Besides, you should provide support by communicating with employees and discussing any obstacles they’re facing. 

What if you fail to achieve a stretch goal?

Though succeeding with stretch goals brings great fulfillment and joy, the reality is that not many of them become reality. So, don’t feel devastated if you fail to reach them as you’re not the only one who’s experienced this.

Instead of feeling disappointed, try to see this situation from another perspective. Even when they aren’t fully met, failed stretch goals do have certain positive aspects: 

• They serve to bond team members,
• They teach them to work together effectively,
• They make your team even stronger, and
• They lay a strong foundation for future goals.

Sometimes, achieving a stretch goal isn’t the primary objective. Instead, it’s all about boosting your team’s motivation, helping them learn to cooperate, and preparing them for significant challenges in the future. 

Remember to congratulate your team members for their efforts and remain optimistic.

Alternatives to stretch goals?

If you’ve decided that you’re not ready for stretch goals, there are several other options that you may consider trying instead. 

Some alternatives to stretch goals include:

• Provide opportunities for personal growth and development – your employees’ performance will also be boosted as they grow their skills and expertise. This way, you’ll reach your performance goals in the future instead of setting a stretch goal to try to achieve them right away.
• Focus on smaller targets – as your employees reach smaller goals, they’ll feel more energized and motivated. Their performance will rise accordingly, and, gradually, you’ll reach some more demanding targets and goals.
• Enhance existing resources – try to strategically build extra resources that might come in handy in the future if some opportunities or challenges arise. So, examine where you’re spending your resources inefficiently and consider reallocating them better. 
• Pursue small losses – instead of taking big risks with stretch goals, try to take smaller risks. Even if you don’t succeed, the losses will be small. You’ll learn something new from each loss, and, eventually, you might even hit the jackpot and succeed in something big.  

How to track stretch goals with Plaky

Pursuing stretch goals, or any goal for that matter, may be quite challenging. However, with the right knowledge and tools, you’ll increase your chances of success. 

We suggest that you try the Plaky project management tool as it will help you track how you progress toward your goal.

Let’s take a look at a sales team goal-planning example

In Plaky, you can break up your big goal into smaller steps. This way, your goal won’t look so scary and unattainable anymore. 

Both you and your team will have a clearer picture of where you are at the moment and how you will get to the final goal. 

You can add specific tasks in Plaky and then group them into sections and categories of your choice. 

Also, Plaky gives you complete freedom to add fields with information you need for your specific goal. For instance, a field can feature: 

• Dates or timelines,
• Numbers, 
• Links, 
• People responsible, 
• Tags, 
• Statuses, and more.

So whether you’re in sales, marketing, or any other sector, you’ll be able to customize your Plaky space according to your needs. The best thing is that Plaky offers a free plan, and you can also test its paid plans for free.

To make your stretch goal planning a lot easier and your organization better, get started with Plaky for free now.