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