Are we stretching the truth on Stretch Goals?
An evidence-informed discussion on goal setting for HR, Managers and Leaders
In the interest of providing multiple means of engaging with this blog, below is the podcast style conversation, using our AI friends Johnny and Joanne who go into each blog post at a deeper level. Or below is the usual written format which is a little more TL;DR
Have you ever assigned an ambitious goal to your team, believing it would inspire extraordinary effort, only to find some team members flourishing while others floundered? Perhaps you've been on the receiving end of a seemingly impossible target that either catalysed your growth or triggered your disengagement. This paradox isn't just in your imagination—it's the juxtposition of stretch goals.
A common catchphrase in management circles is "aim for the stars, and you'll at least reach the moon." But the reality of extremely challenging goals is far more nuanced. Recent research published in the Journal of Occupational and Organizational Psychology reveals when stretch goals inspire employees to develop new skills and when they become so overwhelming that employees mentally check out.
What exactly are stretch goals?
Let's first clarify what we mean by "stretch goals" since they're often confused with merely difficult goals. Stretch goals have two distinct characteristics:
Extreme difficulty - They seem almost unattainable with current capabilities
Extreme novelty - They require innovative approaches, as established methods won't suffice
Think of a sales team being asked to enter an entirely new market with a target that's 200% of their best previous performance. Or product designers tasked with creating a groundbreaking feature with no additional resources or costs. These aren't just challenging targets—they're targets that require fundamental shifts in approach and capability.
In contrast, difficult goals are challenging but achievable with additional effort using existing methods and skills. The distinction is critical because the two trigger different psychological responses. See this post which talks about “desirable difficulties in learning”.
The blessing and the curse
The research team, led by Yujie Shi, conducted both experimental and field studies to explore how employees respond to stretch goals (hats off, this was good robust methodology). Their findings show that these ambitious targets can lead to two opposing outcomes:
The Blessing: When employees view stretch goals as challenges, they engage in proactive skill development—actively seeking to acquire new knowledge and abilities to meet the demanding requirements.
The Curse: When employees interpret stretch goals as hindrances, they withdraw from work—reducing effort, becoming less motivated, or even avoiding responsibilities altogether.
What's particularly noteworthy is that in both studies, stretch goals were more naturally associated with hindrance than challenge appraisals. In other words, without intervention, employees are more likely to experience stretch goals as demoralising rather than motivating.
This finding challenges the popular management wisdom that setting extremely high goals is inherently beneficial for performance and motivation. It appears that, left to their own devices, stretch goals may do more harm than good.
The leader as the crucial differentiator
So what determines whether stretch goals inspire or discourage? The research identifies a critical moderating factor: leader goal support.
When leaders provide high levels of goal support—offering direction, clarifying priorities, delegating appropriately, and following up—employees are significantly more likely to view stretch goals as positive challenges and subsequently engage in self-development activities. Mustafa Sarkar’s work talks about high challenge, high support environments.
Conversely, when leaders set ambitious targets without providing adequate support, employees tend to perceive these goals as obstacles to their development, leading to withdrawal behaviours.
Think about it this way: a seemingly impossible mountain becomes climbable when you have an experienced guide who provides equipment, shares the map, points out dangerous passes, and encourages you along the journey. Without that support, the same mountain looks like an insurmountable barrier.
What this means for practitioners…
This research yields several important implications for HR professionals and leaders:
Reconsider your reliance on stretch goals
The finding that stretch goals are more naturally associated with hindrance than challenge appraisals suggests we should be more cautious about their use. Before implementing stretch goals, carefully assess whether they're appropriate for your specific context.
Leader selection and development is critical
Since leader goal support dramatically influences how employees respond to stretch goals, organisations should:
Select leaders who demonstrate a commitment to employee development and are willing to provide ongoing support
Train leaders in goal-setting approaches that balance ambition with practical support
Equip leaders with skills to break down complex goals, prioritise effectively, and provide constructive feedback
Support matters more than the goal itself
The research suggests that providing appropriate support may be more important than the difficulty level of the goal. When implementing stretch goals, focus at least as much energy on supporting employees as you do on crafting ambitious targets.
Recognise individual differences
While not directly covered in this research, it's reasonable to infer that employees will vary in their responses to stretch goals based on individual differences like past experience, self-efficacy, and resilience. A personalised approach to goal setting and support may be beneficial.
A balanced approach
Rather than abandoning stretch goals entirely or embracing them uncritically, this research suggests a more nuanced approach:
Use stretch goals selectively, not as a default approach to goal setting
When implementing stretch goals, ensure leaders are committed to providing substantial support
Monitor for signs of hindrance appraisals and withdrawal behaviours
Consider combining stretch goals with more achievable milestones to balance inspiration with attainability
So….
The promise of stretch goals is compelling—they can inspire innovation, growth, and extraordinary achievement. But their implementation requires care and support to avoid triggering disengagement or withdrawal.
Perhaps the most important takeaway is that goals don't exist in a vacuum. The context—particularly the relationship and support provided by leaders—largely determines whether ambitious targets become a blessing or a curse for both individuals and organisations.
As HR practitioners and leaders, our role isn't just to set high expectations but to create the conditions where people can reasonably meet them. In doing so, we transform potentially overwhelming challenges into pathways for growth and development.
When was the last time you implemented stretch goals in your organisation? Did you observe different responses among team members, and what role did leader support play in those outcomes? These reflections might provide valuable insights into how to better harness the positive potential of ambitious goals while mitigating their risks.