JH
Jonathan Haber
Locke & Latham — Stretch Goals

Do stretch goals actually improve performance, and when do they hurt?

The research behind ambitious targets, their real boundary conditions, and how to apply them safely

Short answer

Stretch goals — targets set well beyond current performance — are among the most studied interventions in motivation research. When organisations or individuals have sufficient resources and a history of prior success, stretch goals improve performance; when resources are depleted or the capability gap is too large, they reliably increase risk-taking, cheating, and demoralisation. The "always stretch" advice ignores this important boundary condition.

Edwin Locke and Gary Latham’s goal-setting theory is among the most replicated bodies of work in organisational psychology: difficult, specific goals consistently outperform vague or easy ones. But the "stretch goal" extension — setting targets drastically beyond current capability — has a more complicated empirical record. More recent research, including a critical review by Sitkin and colleagues, shows stretch goals outperform only under specific conditions. The practices below reflect that more nuanced picture.

The practices (7)

Why it works

A stretch goal is a high-variance bet: it accelerates learning if successful but consumes resources if it fails. When resources (time, energy, financial buffer) are already depleted, a failed stretch amplifies the deficit. The mechanism for benefit requires sufficient slack to run the experiment and recover from misses — which is a precondition, not an assumption.

How to do it
  1. 1Before setting a stretch target, honestly assess your current resource margin: how much failure can you absorb?
  2. 2If resources are already stretched, set a near-term performance goal to rebuild margin first.
  3. 3Only move to a stretch target once you have a meaningful buffer of time, energy, or capability.
  4. 4Define the stretch as a specific, measurable target with a clear timeline.
Evidence
Observational

Sitkin et al.’s critical review found that stretch goals produce positive outcomes primarily for high-performing, resource-rich organisations; for struggling or resource-depleted ones, stretch goals increased dysfunctional risk-taking and lowered performance.

Honest caveat: Much of this research is organisational rather than individual; individual-level boundary conditions may differ somewhat.

  • — Sitkin, See, Miller, Lawless & Carton (2011), "The paradox of stretch goals", Academy of Management Review
Common mistake: Setting a stretch goal during a high-pressure or depleted period because "that’s when motivation is most needed" — the research suggests that is when stretch goals most reliably backfire.
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