How to set stretch goals: Unlocking team ambition

Unlock your team's potential with our comprehensive guide on setting and achieving stretch goals. Learn about their benefits, potential pitfalls, and how you can guide your team to success.

Craft Author: Tom Norman
Tom Norman
Illustration of working from a mountain
Key Takeaways

1. Understand the power and pitfalls of stretch goals: Stretch goals can inspire innovation, boost performance, stimulate growth, promote collaboration, align focus, and drive competitive advantage. However, they can also lead to overstretching, resource drain, excessive risk-taking, neglect of other tasks, and a short-term focus if not managed effectively.

2. Embrace a structured approach to setting and achieving stretch goals: Set a compelling vision, break it down into manageable tasks, track progress, celebrate milestones, and continuously review and learn from the process. This structured approach can help ensure the stretch goal, while ambitious, remains achievable and beneficial to the organization.

3. Learn from practical examples: Draw insights from real-world examples of stretch goals in product development, market expansion, and sustainability efforts. These examples illustrate how ambitious targets can drive significant advancements and provide a competitive advantage, as long as they are thoughtfully set and strategically pursued.

What is a stretch goal?

A stretch goal is an ambitious, long-term aim that pushes individuals or teams beyond their comfort zone, promoting innovation, creativity, and unlocking untapped potential. Unlike regular objectives that are expected to be met within the normal operational limits, stretch goals demand an extra level of commitment and effort. They serve as a motivational tool to stimulate personal and professional growth, often leading to significant breakthroughs and advancements.

What are the benefits of stretch goals?

Stretch goals can significantly impact individuals, teams, and organizations, driving growth and promoting innovation:

1. Inspire innovation

Stretch goals are specifically designed to push boundaries, encouraging people to think beyond their usual parameters. This outside-the-box thinking often serves as the catalyst for breakthrough ideas and innovative solutions. By presenting a challenge that can't be solved with conventional methods, stretch goals create a necessity for fresh, creative strategies.

2. Boost performance

Stretch goals set high expectations and provide a vision for employees to strive towards, thereby boosting their performance. They are a clear call to action, inspiring teams to go above and beyond their routine operations. This elevation in performance is not only limited to the pursuit of the stretch goal but often translates to overall productivity and efficiency increases.

3. Stimulate growth

Setting ambitious targets like stretch goals requires individuals and teams to learn, adapt, and grow rapidly. The journey towards achieving a stretch goal often involves acquiring new skills, honing existing ones, and challenging personal limitations. This intense learning and development period can lead to remarkable personal and professional growth, enhancing individual capacities and team dynamics.

4. Promote collaboration

Stretch goals are often complex and challenging enough that they can't be met by individuals working in isolation. They necessitate diverse skills and viewpoints, fostering a collaborative culture. Working together towards a common ambitious objective can enhance team cohesiveness, improving communication, cooperation, and knowledge sharing among team members.

5. Align focus

Stretch goals provide a clear direction for individuals and teams to focus their efforts. They serve as a shared vision that aligns different roles and departments, uniting the entire organization towards a common objective. This alignment can enhance operational efficiency and ensure that all work contributes to the larger strategic goals.

6. Drive competitive advantage

Achieving stretch goals often results in significant advancements, whether it's the development of a game-changing product, a breakthrough in operational efficiency, or entry into a new market. These big leaps forward can provide a substantial competitive advantage, setting the organization apart in the market landscape.

By leveraging stretch goals, organizations can tap into their teams' untapped potential and chart a course for extraordinary achievements. However, it's essential to balance the ambition of these goals with a supportive environment that fosters learning and collaboration.

How to set and achieve stretch goals

1. Establish the vision

Start with a clear, compelling vision for your stretch goal. This goal should be audacious and inspiring but still grounded in relevance to your organization's broader objectives. This vision acts as the North Star, guiding all efforts and keeping everyone motivated. When defining this vision, ensure it resonates with your team's aspirations, promotes innovation, and aligns with your strategic direction.

2. Break it down

A stretch goal can often seem overwhelming due to its ambitious nature. To make it more manageable, break it down into smaller, achievable tasks or sub-goals. This approach provides a roadmap that outlines how to progress towards the overall goal. Each sub-goal should be specific, measurable, achievable, relevant, and time-bound (SMART), creating clarity and focus for your team's efforts.

3. Track progress

Keeping a close eye on progress towards your stretch goal is crucial. Regular monitoring enables you to measure advancements, identify roadblocks or challenges early, and adjust strategies as necessary. This real-time feedback allows for more responsive and effective management of the pursuit of your goals. Use our Goal Tracking template to track progress or create one of your own. 

4. Celebrate milestones

The journey to a stretch goal is often long and demanding. To maintain team morale and motivation, celebrate the achievement of smaller milestones along the way. These celebrations acknowledge the hard work your team is putting in, reinforcing a positive culture and boosting motivation. They also provide a platform for team members to share their experiences, fostering better collaboration and understanding.

5. Review and Learn

Lastly, foster a culture of continuous improvement by regularly reviewing your process and outcomes. Regardless of whether you achieved the stretch goal or fell short, there are valuable insights to be gleaned from the journey. Reflect on what worked well, what didn't, and what could be improved for future goal-setting. This learning-oriented approach maximizes the value of your stretch goal efforts, ensuring your team grows stronger with each challenge.

Remember, setting and achieving stretch goals isn't about immediate success—it's about growth, resilience, and unlocking potential. It's about striving for greatness and learning valuable lessons along the way.

What are the drawbacks of stretch goals?

While stretch goals can propel organizations to new heights, they come with potential drawbacks that must be considered:

1. Overstretching

Setting goals that are too ambitious can potentially overwhelm employees, leading to stress and burnout. Overly ambitious targets may become demotivating rather than inspiring, especially if team members feel the goals are unachievable. This sense of unattainability can lead to decreased morale and productivity, and in the long run, increased turnover rates.

2. Resource drain

Stretch goals often require significant resources – both human and financial – to be directed towards them. This can mean other areas of the business, potentially equally important, may be left under-resourced. In some cases, the costs associated with pursuing the stretch goal might outweigh the benefits, especially if the goal is not fully aligned with the organization's strategic objectives.

3. Risk-taking

Stretch goals might encourage excessive risk-taking as teams strive to meet ambitious targets. While some degree of risk-taking can spur innovation and growth, excessive risks can potentially lead to negative outcomes, especially when teams are pressurized to achieve at all costs.

4. Neglect of other tasks

The focus on meeting a stretch goal can result in everyday tasks and duties being overlooked. Employees might devote all their time and energy to the stretch goal, neglecting their regular responsibilities, which can disrupt normal operations and result in imbalanced performance.

5. Short-term focus

While stretch goals are intended to stimulate long-term growth and innovation, the pressure of achieving such ambitious objectives can often lead teams to adopt short-term strategies at the expense of long-term stability and sustainable growth.

In order to mitigate these potential pitfalls, it's important to balance the ambitious nature of stretch goals with a supportive and empathetic organizational culture. Also, the process of setting stretch goals needs to be thoughtful and strategic, taking into consideration the organization's capacity, resources, and broader objectives.

3 Stretch goal examples

1. Product development

A tech startup might set a stretch goal to develop and launch a completely new product within a year. This would require rapid ideation, design, testing, and manufacturing, all while maintaining quality standards. This stretch goal would push the company's innovative capacities and speed to market, likely necessitating the development of new systems, partnerships, and strategies. In successfully achieving this, the startup not only brings a new product to market but also gains a competitive advantage and potentially opens up a new revenue stream.

2. Market expansion

An e-commerce company with a strong domestic presence might set a stretch goal to enter and establish itself in five new international markets within the next two years. This goal would demand significant research into new markets, logistics, legalities, customer preferences, and potential adaptations to the business model. In achieving this, the company would significantly expand its customer base and diversify its operations, providing a buffer against domestic market fluctuations.

3. Sustainability goals

A manufacturing company might set a stretch goal to reduce its carbon emissions by 50% over the next three years. Achieving this goal would require the company to rethink its processes, perhaps investing in new technologies or materials and enhancing its efficiency. This goal aligns the company with global sustainability efforts, improving its public image, satisfying environmentally-conscious customers, and potentially leading to long-term cost savings.


Stretch goals can serve as a powerful tool for driving growth, innovation, and excellence within an organization. By pushing the boundaries of what's considered achievable, they inspire teams to think creatively, work collaboratively, and strive for extraordinary results. However, it's important to balance this ambition with realism and support to avoid overstretching resources or overwhelming employees. Remember, the journey towards a stretch goal is just as valuable as the achievement itself, offering opportunities for learning, development, and transformation at every step.

Set better professional goals that truly resonate